BILL NUMBER: AB 250 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 4, 2013
INTRODUCED BY Assembly Member Holden
FEBRUARY 6, 2013
An act to add and repeal Article 6 (commencing
with Section 12099) of to Chapter 1.6 of
Part 2 of Division 3 of Title 2 of the Government Code, relating to
state government , and making an appropriation therefor .
LEGISLATIVE COUNSEL'S DIGEST
AB 250, as amended, 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. The
bill would require the office to issue a request for proposals for
the California Innovation Hub Program, and would require the
proposals to include specified information except as provided. The
bill would require each certified iHub partnership to include, among
other things, at least one major university or research center or
institute. The bill would establish the iHub Accelerator Fund, and
would make a continuous appropriation from that fund to the office to
be used for the California Innovation Hu b Program, as
specified.
Vote: majority. Appropriation: no yes
. 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. The Legislature finds and declares all of the following:
(a) Job creation through rapid technology commercialization is a
vital part of the state's economic well-being, as identified in a
January 2012 symposium held by the Brookings Institute.
(b) Innovation and tech-driven entrepreneurial activity coupled
with venture investment creates small business start-ups and
expansions at an accelerated rate, which leads to significant
employment opportunities that contribute to the state's financial
health and economic competitiveness.
(c) In order to maintain a healthy state economy and to aid
communities, entrepreneurship and technology-based small businesses
must be stimulated and supported.
(d) The Innovation Hubs (iHubs) are operated in California through
a cooperative agreement between the Governor's Office of Business
and Economic Development (GO-Biz) and 12 geographically distinct
regions, all of which are partnered with public universities,
community college districts, local governments, research
institutions, industry, angel and venture capital networks, and
traditional financial institutions. The iHubs are California's
premier resource for facilitating the success of entrepreneurial and
small technology start-ups that can grow California's economy by
assisting business owners in creating and retaining jobs, increasing
sales and profits, securing business financing, and creating a
successful new business climate in the state.
(e) The iHubs' economic impact in fostering entrepreneurial
business activity leads to job creation and an innovation in the
economy by establishing a formal partnership between the office and
the iHub program.
(f) It is necessary to establish a fund that would enable the
office to obtain funding from private sources, for appropriation to
state designated iHubs, iHub partner organizations, and within state
iHub-designated regions for the purpose of establishing, promoting,
and enhancing California's innovation and entrepreneurship ecosystem.
12099. 12099.1. (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. 12099.2. For purposes of
this article, the following terms shall be defined as follows:
(a) "Applicant" means a fully accredited institution of higher
education, a private nonprofit corporation engaged in economic
development activities, a county or municipality in this state that
has a preexisting economic development department or program or both,
and a public economic development institution such as a workforce
investment board, or an economic development corporation.
(a)
(b) "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)
(c) "Innovation Hub" or "iHub"
means a network of interrelated firms and industries that
collectively drive economic growth within a defined geographic area.
(d) "iHub coordinator" means the individual or entity agreed to by
the partnership that is responsible for all of the following:
(1) Implementing the objectives of the iHub.
(2) Serving as the primary agent responsible for coordinating
services and resources and maintaining the partnership.
(3) Serving as the primary liaison to the state and the office.
12099.3. (a) The office shall issue a request for proposals for
the California Innovation Hub Program.
(b) An applicant's proposal shall include, but shall not be
limited to, all of the following information:
(1) A statement of purpose.
(2) A signed statement of cooperation and a description of the
roles and relationships of each entity involved in the partnership.
(3) A designated iHub coordinator.
(4) A clear explanation and map conveying the iHub's physical
boundary.
(5) A clearly stated designee to coordinate iHub activities.
(6) A clearly identified central location.
(7) Clearly identified benchmarks or milestones with approximate
dates as to when they will be achieved.
(8) A complete budget including a description of secured funds
with proof, pending funds, and potential future funding sources.
(9) A list and brief description of local and regional incentives
and support programs.
(10) A clearly articulated commercial market focus and plan.
(11) A clearly articulated iHub management structure and plan that
may include a description of the capabilities, qualifications, and
experience of the proposed management team, team leaders, or key
personnel who are critical to achieving the proposed objectives.
(12) A list of iHub assets and resources.
(13) A clearly articulated focus area of the iHub including
industry sectors or other targeted areas for development and growth.
(14) A list of specific resources available to support and guide
start-up companies.
(15) A clearly articulated list of goals to be achieved with the
certification of the iHub.
(16) Expectations for job development and business creation.
(17) Defined performance standards agreed upon by the partners
involved in the development of the iHub.
(18) Evaluation procedures that will be used to measure the level
of achievement for each stated goal.
(19) A plan for sustainability.
(20) Organizational experience including capabilities, related
experience, facilities, techniques, unusual resources, or unique
combinations of these that are integral factors for achieving the
proposed objectives.
(21) Demonstrated experience with innovation programs such as
involvement with technology commercialization.
(22) Demonstrated experience with technology transfer or
licensing.
(23) Demonstrated experience with intellectual property
management.
(24) Evidence of community engagement and support.
(c) The office may waive any of the requirements listed in
subdivision (b).
12099.4. (a) A designated iHub shall include at least one major
university or research center or institute, one economic development
organization, and consist of at least four of the following:
(1) A business support organization including a workforce
development or training organization, incubator or business
accelerator, chamber of commerce, and networking organization that
supports innovation.
(2) An educational consortium including technology transfer
representatives.
(3) A venture capital network including angel investors.
(4) A business foundation, innovation foundation, science
foundation, laboratory research institution, federal laboratory, or
research and development facility.
(5) A municipal economic development division or department.
(6) A federal government partner such as a national laboratory.
12099.5. (a) Before an official designation as an iHub, the
applicant shall self-certify both of the following:
(1) That the iHub will comply with the state's nondiscrimination
policy.
(2) That the iHub and its principals are current in payment of all
state and local taxes owed unless they have entered into an
agreement that was deemed satisfactory by the respective taxing
authority and are in full compliance with the agreement.
12099.2. 12099.6. (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. 12099.7. (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. 12099.8. (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
12099.7 .
(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)
(d) State-owned or leased property under this section
shall be used only in furtherance of this chapter.
12099.9. The iHub Accelerator Fund is hereby created within the
State Treasury. Subject to the approval of the Department of Finance,
all moneys collected and received by the Governor's Office of
Business and Economic Development for the California Innovation Hub
Program from gifts, bequests, or donations shall be deposited in the
iHub Accelerator Fund. Notwithstanding Section 13340, the moneys in
the fund are continuously appropriated to the office to be used for
the California Innovation Hub Program pursuant to the terms of the
gift, bequest, or donation.