BILL NUMBER: AB 250	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Holden

                        FEBRUARY 6, 2013

   An act to add and repeal Article 6 (commencing with Section 12099)
of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government
Code, relating to state government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 250, as introduced, Holden. California Innovation Hub Program.
   The Governor's Office of Business and Economic Development serves
as the Governor's lead entity for economic strategy and the marketing
of California on issues relating to business development, private
sector investment, and economic growth. The office, among others,
makes recommendations to the Governor and the Legislature regarding
policies, programs, and actions to advance statewide economic goals.
   This bill would create the California Innovation Hub Program
within the Governor's Office of Business and Economic Development.
The bill would require the office to designate Innovation Hubs, as
specified. The bill would authorize the office, with the consent of
the Director of the Department of General Services, to use vacant or
underused state-owned or leased property, or both, that is controlled
by the Department of General Services, as specified. The bill would
authorize specified state property, when authorized by law, to be
used as matching funds to meet federal funding requirements.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Article 6 (commencing with Section 12099) is added to
Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government
Code, to read:

      Article 6.  California Innovation Hub Program


   12099.  (a) The California Innovation Hub Program is hereby
created within the office.
   (b) The office shall designate Innovation Hubs within the state to
stimulate partnerships, economic development, and job creation by
leveraging assets to provide an innovation platform for startup
businesses, economic development organizations, business groups, and
venture capitalists. The assets may include, but are not limited to,
research parks, technology incubators, universities, and federal
laboratories.
   (c) The office shall oversee, coordinate, and provide assistance
to each iHub.
   12099.1.  For purposes of this article, the following terms shall
be defined as follows:
   (a) "Demonstration site" means state owned or leased property that
can be used by an innovative business or nonprofit organization to
demonstrate its technologies pursuant to a demonstration agreement.
   (b) "Innovation Hub" (iHub) means a network of interrelated firms
and industries that collectively drive economic growth within a
defined geographic area.
   12099.2.  (a) An iHub may do all of, but shall not be limited to,
the following:
   (1) Provide counseling and technical assistance, either by direct
or indirect services, in the areas of entrepreneurial business
planning and management, financing, and marketing for small
businesses.
   (2) Provide expert advice to entrepreneurs on starting a business,
including legal requirements for starting a business and access to
financing opportunities.
   (3) Conduct business workshops, seminars, and conferences with
local partners including, but not limited to, state universities,
state community colleges, local governments, state and federal
service providers, private industry, workforce investment boards and
agencies, small business service agencies, economic development
organizations, and chambers of commerce.
   (4) Facilitate partnerships between innovative startup businesses,
research institutions, and venture capitalists or financial
institutions.
   (b) The iHubs shall, to the extent feasible, do all of the
following:
   (1) Work in close collaboration with the activities of the office
as its primary statewide partner.
   (2) Coordinate activities with the Employment Training Panel, the
California Workforce Investment Board, the Office of the Chancellor
of the California Community Colleges, the University of California,
the California State University, and other state economic and
workforce development programs.
   12099.3.  (a) Notwithstanding any other law, the office may, with
the consent of the Director of the Department of General Services,
use vacant or underused state owned or leased property, or both, that
is controlled by the Department of General Services for purposes
including, but not limited to, assisting iHubs establish proof of
concept centers, incubators, and demonstration sites.
   (b) State property under this section, when authorized by law, may
be used as matching funds to meet federal funding requirements.
   12099.4.  (a) The office may authorize a business or nonprofit
organization to use a state-owned or leased property, or both,
pursuant to Section 12099.3.
   (b) The office shall enter into a demonstration agreement with the
business or nonprofit organization before a demonstration of an
emerging technology may occur on state-owned or leased property.
   (c) A demonstration agreement shall include all of the following:
   (1) A provision that the business or nonprofit organization agrees
to indemnify the state against any liability or damages that may
result from the demonstration.
   (2) A provision that authorizes the Department of General Services
and the office to stop the demonstration if the innovative business
has falsified or withheld information that should have been disclosed
about the demonstration.
   (3) A provision that the business agrees to purchase insurance
coverage necessary, as determined by the state, to cover the costs to
the state for any risks.
   (4) A certification by the innovative business that the
demonstration project meets all current applicable industry
standards, laws, and applicable regulations and can safely be
demonstrated. The office may require proof of such.
   (5) Other provisions determined by the office to be relevant for
the successful and safe undertaking of the demonstration.
   (b) State-owned or leased property under this section shall be
used only in furtherance of this chapter.