BILL ANALYSIS Ó
SJR 9
Page 1
SENATE THIRD READING
SJR 9 (Huff, et al.)
As Amended August 29, 2013
Majority vote
SENATE VOTE :34-0
JUDICIARY 10-0
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|Ayes:|Wieckowski, Wagner, | | |
| |Alejo, Chau, Dickinson, | | |
| |Garcia, Gorell, | | |
| |Maienschein, Muratsuchi, | | |
| |Stone | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Makes a number of legislative findings about the
entrepreneurial contributions of immigrants to the United States
(U.S.) economy, and urges Congress and the President to
establish new entrepreneur and STEM (Science, Technology,
Engineering, or Mathematics)-related visa categories, as
described, as part of comprehensive federal immigration reform.
Specifically, this measure :
1)Finds that the U.S. economy has been enriched by the
innovative and entrepreneurial spirit of immigrants from
around the world.
2)Finds that, according to scholars at Harvard and Duke
Universities, the national rate of startups by immigrants has
dropped to 42% in the past seven years; and that the number of
foreign nationals with advanced degrees awaiting
permanent-resident status in the U.S. has grown to over one
million in the past several years.
3)Finds that current U.S. immigration policy forces many highly
skilled immigrants to wait more than a decade for visas; and
that many of these highly skilled innovators are deciding
instead to return home, or immigrate to other countries that
welcome them with open arms. As a result, these innovators
are founding companies in these other countries and competing
with American companies for market share.
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4)Finds that entrepreneurs and highly skilled workers can
contribute to the continued success of the nation and further
the development of an innovation-based economy that will help
future generations compete in the global marketplace.
5)Finds that U.S. Senators Jerry Moran (R-Kansas), Mark Warner
(D-Virginia), Chris Coons (D-Delaware), and Roy Blunt
(R-Missouri) have introduced S. 310, and U.S. House
Representatives Michael Grimm (R-New York), Loretta Sanchez
(D-California), and others have introduced H.R. 714 in the
113th Congress of the U.S., and this legislation is known as
the Startup Act 3.0 (Act).
6)Finds that there has been bipartisan support in Congress for
proposed changes to immigration law seeking to create new jobs
and drive economic growth, such as:
a) Creation of an Entrepreneur's Visa for up to 75,000
legal immigrants who start up new businesses to create jobs
in the U.S. with a path to permanent residency if their
businesses continue to hire more workers.
b) Authorization to adjust the status of not more than
50,000 aliens who have earned a master's degree or a
doctorate degree at an American institution of higher
education in a STEM field to that of aliens conditionally
admitted for permanent residence to remain in this country.
7)Resolves that the Legislature urge Congress and the President
to establish new entrepreneur and STEM-related visa categories
for legal immigrants as part of comprehensive federal
immigration reform.
EXISTING LAW provides for the regulation of immigration
exclusively by the federal government. (e.g., LULAC v. Wilson,
908 F. Supp. 755, 786-87 (C.D. Cal. 1995).)
FISCAL EFFECT : None
COMMENTS : The author describes the reason for the measure as
follows:
Under current law, only around 120,000 visas are
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available annually for skilled workers in key
employment categories, and only 7 percent of these
visas can be allocated to immigrants from any one
country. Immigrants from countries with large
populations, like India and China, have access to only
8,400 visas per year despite being the source of the
vast majority of startups in the United States. The
result of this policy is that many of these highly
skilled immigrants must wait more than a decade for
visas. Many of these highly skilled immigrants must
wait more than a decade for visas; and that many of
these highly skilled innovators are deciding instead
to return home, or immigrate to other countries that
welcome them with open arms. As a result, these
innovators are founding companies in these other
countries and competing with American companies for
market share.
For these reasons, the author believes that federal immigration
reform should include the creation of two new visa categories,
known as the Entrepreneur Visa and the STEM-related visa,
respectively. The former is intended to encourage foreign-born
entrepreneurs to start new businesses in this country, thereby
creating jobs and fueling economic growth. The latter, known as
the "STEM-related visa" is intended to allow a greater number of
resident aliens who have earned a master's degree or a doctorate
degree at a U.S. university in science, technology, engineering,
or mathematics (i.e., "STEM"-related field) to stay in this
country and obtain legal permanent resident status. As a
result, the author contends, fewer of these highly educated and
skilled individuals will be forced to return to their home
country at the conclusion of their degree program, and more will
have the opportunity to invest their skills and education in
jobs and industries that will benefit the U.S. economy instead.
In February 2013, legislation known as the Startup Act 3.0 was
introduced in both houses of the 113th Congress by a bipartisan
group of legislators (specifically S.310 in the Senate, and H.R.
714 in the House). Under this proposal, entrepreneur visas
would be extended only to immigrants who are already here on a
student visa or a H1-B visa for specialized skilled workers.
The Act requires the immigrant, within the first year of the
visa, to make an investment of at least $100,000 in the business
and employ at least two full-time employees who are not family
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members. Upon meeting these requirements, the immigrant would
be permitted to stay in the U.S. for an additional three years
on the visa, during which time he or she must hire at least five
more full-time employees. Lawful permanent resident (LPR)
status would then be available for entrepreneurs reaching this
last benchmark. In addition, the Act would make available to
foreign graduates of American universities with advanced degrees
in STEM fields a new type of visa that would allow a stay of
five years, after which time the visa holder could apply to
become a legal permanent resident.
On June 27, 2013, the U.S. Senate passed S. 744, known as the
Border Security, Economic Opportunity, and Immigration
Modernization Act of 2013. This historic legislation-approved
by a bipartisan 68-32 vote in the Senate-proposes to make
sweeping changes to federal immigration law and is considered by
many to be an early step towards comprehensive immigration
reform. Among other things, S. 744 in its current form would
create a road to citizenship for many immigrants who do not now
have legal immigration status. These immigrants would be able
to apply for registered provisional immigrant (RPI) status
provided that they have been physically present in the U.S. on
or before December 31, 2011; have been continuously present in
the U.S. from December 21, 2011, until the date of application
for RPI status; and meet other eligibility requirements.
(National Immigration Law Center (July 2013) at http://nilc.org/
irsenateS744faq.html .) Individuals admitted to RPI status could
obtain a work permit and be allowed to travel outside the U.S.
and then return, and would be eligible to apply for LPR status
after another 10 years, and to apply for U.S. citizenship about
three years after that.
In order for this comprehensive immigration reform bill to
become law, however, it must first be approved by the U.S. House
of Representatives and then signed by the President. At the
time of this analysis, it is not known what action, if any, the
House will take to consider S. 744 or comprehensive immigration
reform generally. It is also not known whether Congress will
take any action to pass the Startup Act 3.0, or alternatively,
to incorporate provisions for entrepreneur and STEM-related
visas into comprehensive federal immigration reform this year.
In part because of the uncertainty surrounding political
developments at the federal level, the author has amended this
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measure so that it no longer expressly has the Legislature urge
federal lawmakers to enact S.310, but more generally calls on
the Legislature to urge Congress and the President to establish
new entrepreneur and STEM-related visa categories as part of
comprehensive federal immigration reform.
Analysis Prepared by : Anthony Lew / JUD. / (916) 319-2334
FN: 0001989