BILL ANALYSIS                                                                                                                                                                                                    Ó







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        |Hearing Date:June 24, 2013         |Bill No:AB                         |
        |                                   |250                                |
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                      SENATE COMMITTEE ON BUSINESS, PROFESSIONS 
                               AND ECONOMIC DEVELOPMENT
                              Senator Ted W. Lieu, Chair
                                           

                          Bill No:        AB 250Author:Holden
                         As Amended:May 24, 2013  Fiscal: Yes

        
        SUBJECT:   California Innovation Initiatives. 
        
        SUMMARY:  Codifies and expands the California Innovation Hub (iHub)  
        Program at 
        GO-Biz for the purpose of stimulating economic development and job  
        creation through the coordination of federal, state and local  
        innovation-supporting resources.

        Existing law:

        1)Establishes GO-Biz within the Governor's Office for the purpose of  
          serving as the lead state entity for economic strategy and marketing  
          of California on issues relating to business development, private  
          sector investment and economic growth.  GO-Biz also serves as the  
          administrative oversight for the California Business Investment  
          Service and the Office of the Small Business Advocate.  (Government  
          Code (GC) §§ 12096 - 12098.5)

        2)Authorizes GO-Biz as the lead entity for economic strategy and the  
          marketing of California on issues relating to business development,  
          private sector investment and economic growth. Authorizes GO-Biz, in  
          this capacity, to coordinate the development of policies and  
          criteria to ensure that federal grants administered or directly  
          expended by state government advance statewide economic goals and  
          objectives.  Authorizes GO-Biz to market the business and investment  
          opportunities available in California by working in partnership with  
          local, regional, federal, and other state public and private  
          institutions to encourage business development and investment in the  
          state.  Authorizes GO-Biz to support small businesses by providing  
          information about accessing capital, complying with regulations, and  





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          supporting state initiatives that support small business.  (GC §  
          12096.3)

        3)Establishes the California Economic Development Fund in the State  
          Treasury for the purpose of receiving federal, state, local, and  
          private economic development funds, and receiving repayment of loans  
          or grant proceeds and interest on those loans or grants.  Provides  
          that upon appropriation by the Legislature, moneys in the fund may  
          be expended by GO-Biz to provide matching funds for loans or grants  
          to public agencies, nonprofit organizations, and private entities,  
          and for other economic development purposes, consistent with the  
          purposes for which the moneys were received.  (GC § 13997.6)




        This bill:

        1) States findings and declarations that:

           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 startups 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)   iHubs are operated in California through a cooperative  
             agreement between 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 startups 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.





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           e)   The iHubs' economic impact in fostering entrepreneurial  
             business activity leads to job creation and 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.

        2)Creates the iHub Program within GO-Biz.  Requires GO-Biz to  
          designate iHubs 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.  Provides  
          that the assets may include, but are not limited to, research parks,  
          technology incubators, universities, and federal laboratories.   
          Requires GO-Biz to oversee, coordinate, and provide assistance to  
          each iHub.

        3)Defines the following:  

           a)   "Applicant" as one or more entities that submit an application  
             to GO-Biz.  States that eligible applicants must either be a  
             fully accredited institution of higher education  or  a private  
             nonprofit corporation engaged in economic development activities  
              or  a county or municipality in this state that has a preexisting  
             economic development department or program or both  or  a public  
             economic development institution such as a workforce investment  
             board or an economic development corporation. 

           b)   "Innovation Hub" or "iHub" as a network of interrelated firms,  
             local governments, economic development organizations,  
             educational entities, and industries that collectively drive  
             economic growth within a defined geographic area.

           c)   "iHub coordinator" as the individual or entity agreed to by  
             the partnership that is responsible for implementing the  
             objectives of the iHub, serving as the primary agent responsible  
             for coordinating services and resources and maintaining the  
             partnership and serving as the primary liaison to the state and  
             the office.






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        1)Requires GO-Biz to issue a request for proposals for the iHub  
          Program.  Requires an applicant's proposal to include, but not be  
          limited to the following, and states that GO-Biz may also waive any  
          of the following: 

           a)   A statement of purpose.

           b)   A signed statement of cooperation and a description of the  
             roles and relationships of each entity involved in the  
             partnership.

           c)   A designated iHub coordinator.

           d)   A clear explanation and map conveying the iHub's physical  
             boundary.

           e)   A clearly stated designee to coordinate iHub activities.

           f)   A clearly identified central location, clearly identified  
             benchmarks or milestones with approximate dates as to when they  
             will be achieved.

           g)   A complete budget including a description of secured funds  
             with proof, pending funds, and potential future funding sources,  
             a list and brief description of local and regional incentives and  
             support programs.

           h)   A clearly articulated commercial market focus and plan, 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.

           i)   A list of iHub assets and resources.

           j)   A clearly articulated focus area of the iHub including  
             industry sectors or other targeted areas for development and  
             growth.

           aa)  A list of specific resources available to support and guide  
             startup companies.

           bb)  A clearly articulated list of goals to be achieved with the  
             certification of the iHub.

           cc)  Expectations for job development and business creation.





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           dd)  Defined performance standards agreed upon by the partners  
             involved in the development of the iHub.

           ee)  Evaluation procedures that will be used to measure the level  
             of achievement for each stated goal.

           ff)  A plan for sustainability.

           gg)  Organizational experience including capabilities, related  
             experience, facilities, techniques, unusual resources, or unique  
             combinations of these that are integral factors for achieving the  
             proposed objectives.

           hh)  Demonstrated experience with innovation programs such as  
             involvement with technology commercialization.

           ii)  Demonstrated experience with technology transfer or licensing.

           jj)  Demonstrated experience with intellectual property management.

           aaa) Evidence of community engagement and support.

        5)Authorizes GO-Biz to designate an iHub for a term of not more than  
          five years and authorizes an iHub to reapply for a designation  
          without limitation on the number of times.  Allows for more than one  
          iHub to be designated in an area, to the extent that there is a  
          clear distinction between the focus area of each iHub.  Requires  
          GO-Biz to set guidelines for approval, designation, operation,  
          reporting, and redesignation of iHubs.

        6)Provides that the iHub designation shall not be official until a  
          memorandum of understanding (MOU) is entered into by the applicant  
          and GO-Biz. Requires the MOU to include the goals and performance  
          standards identified in the application and other related  
          requirements as determined by the office.  For an iHub designated by  
          GO-Biz before January 1, 2014, authorizes the iHub partnership to  
          have until September 1, 2014 to enter into a MOU with 
        GO-Biz.

        7)Requires an annual report from an iHub to GO-Biz on its progress in  
          meeting the goals and performance standards as described in the  
          application and MOU it has with GO-Biz.  Requires GO-Biz to post the  
          information from these reports on the GO-Biz Web site and provide  
          notice to the Governor and relevant policy committees of the  
          Legislature that the information is available on the Web site.





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        8)Provides that a designated iHub must include at least one major  
          university or research center or institute, one economic development  
          organization, and consist of at least  four  of the following:

           a)   A business support organization including a workforce  
             development or training organization, incubator or business  
             accelerator, business technical assistance providers, chamber of  
             commerce, and networking organization that supports innovation.

           b)   An educational consortium including technology transfer  
             representatives.

           c)   A venture capital network including angel investors.

           d)   A business foundation, innovation foundation, science  
             foundation, laboratory research institution, federal laboratory,  
             or research and development facility.

           e)   A municipal economic development division or department.

           f)   A federal government partner such as a national laboratory.

        9)Requires an iHub applicant, before receiving official designation  
          from GO-Biz, to self-certify that the iHub will comply with the  
          state's nondiscrimination policy and 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.

        10)Authorizes an iHub to:

           a)   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.

           b)   Provide expert advice to entrepreneurs on starting a business,  
             including legal requirements for starting a business and access  
             to financing opportunities.

           c)   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  





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             and agencies, small business development centers, microenterprise  
             development organizations, small business service agencies,  
             economic development organizations, and chambers of commerce.

           d)   Facilitate partnerships between innovative startup businesses,  
             research institutions, and venture capitalists or financial  
             institutions.

        11)Requires the iHubs, to the extent feasible, to:

           a)   Work in close collaboration with the activities of the office  
             as its primary statewide partner.

           b)   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.

        12)Establishes The Innovation Accelerator Account within the  
          California Economic Development Fund in the State Treasury. Provides  
          that subject to the approval of the Department of Finance, all  
          moneys collected and received by GO-Biz for California Innovation  
          Initiatives from gifts, bequests, or donations shall be deposited in  
          the iHub Accelerator Fund.  Continuously appropriates these funds.  

        FISCAL EFFECT:  This bill is keyed "fiscal" by Legislative Counsel.   
        According to the Assembly Committee on Appropriations analysis dated  
        May 1, 2013, this bill will result in administrative costs to GO-Biz  
        of approximately $100,000. The analysis states that a significant  
        amount of the work as outlined in this bill is already being done by  
        the office.  The Assembly Committee on Appropriations also noted that  
        millions to tens of millions of dollars in General Fund costs were a  
        possible result of this bill due to the use of unused or underused  
        state-owned or leased property.  The analysis stated that in 2011-12,  
        DGS sold approximately $42 million of property and has averaged about  
        $30 million annually over the last 20 years.  The analysis further  
        stated that "It is unclear exactly how many of the relatively small  
        number of parcels sold each year would be used for the purposes of  
        this program."

        COMMENTS:
        
        1. Purpose.  The  Author  is the Sponsor of this measure.  According to  
           the Author, "Job creation through rapid technology  
           commercialization is a vital part of the state's economic  





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           well-being, as identified in a January 2012 symposium held by the  
           Brookings Institute."  The Author states that AB 250 "will serve as  
           a catalyst to creating a network of intellectual and business  
           development assets that can facilitate technology commercialization  
           by establishing the Innovation Hub program into law and authorizing  
           access to private sector capital for its operations."
           
           According to the Author, iHubs are built around the triple helix  
           model of economic development; specifically, each iHub is operated  
           by local consortiums comprised of government entities, community  
           colleges and universities, and industry. With the addition of  
           venture capital networks, the inputs necessary for the development  
           of an innovation ecosystem are present. 

           The Author provides the example of Orange County's iHub, known as  
           OCtane, which has stimulated regional business through programs  
           like LaunchPad, which accelerates entrepreneurs and start-ups  
           through a comprehensive program that quickly identifies and  
           connects innovators and capital.  LaunchPad provides critical,  
           individualized, and value-added support to early stage biomedical,  
           technology and cleantech companies.  Its business support prepares  
           young companies for capital introductions, and has relationships  
           with local, regional, and national venture capitalists and  
           investors.  As a result, 23 companies have received more than $70  
           million in capital.  Over 500 companies have inquired into  
           LaunchPad.  These start-up companies have created more than 400  
           jobs in Orange County. 

        2. Background.  Among other programs, GO-Biz administers the  
           Innovation Hub (iHub) program in partnership with the statewide  
           network of Small Business Development Centers (SBDCs).  SBDCs serve  
           over 50,000 small business owners and entrepreneurs each year  
           through services include consulting, mentoring and training related  
           to business management and planning, financing business growth and  
           accessing capital, international trade, government procurement and  
           technology commercialization.
        
           According to GO-Biz, in the spring of 2010, the state launched its  
        new, forward-thinking iHub 
           program in an effort to harness and enhance California's Innovative  
           spirit.  The iHubs improve the state's national and global  
           competitiveness by stimulating partnerships, economic development,  
           and job creation around specific research clusters through  
           state-designated iHubs.  The iHubs leverage assets such as research  
           parks, technology incubators, universities, and federal  
           laboratories to provide an innovation platform for startup  





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           companies, economic development organizations, business groups, and  
           venture capitalists.

           There are currently 12 regional iHubs located throughout the state.

                     i-GATE iHub in Livermore
                     Sacramento iHub/Sacramento Regional Technology Alliance  
                in Sacramento
                     San Diego iHub/CONNECT in La Jolla
                     OCTANE iHub in Orange County
                     East Bay Green Corridor iHub in the East Bay
                     Clean Tech LA iHub in Los Angeles
                     SJ/SV Emerging Technology iHub in San Jose and Silicon  
                Valley
                     North Bay iHub in Santa Rosa
                     Greater Mission Bay iHub in San Francisco
                     North State iHub in Chico
                     Coachella Valley iHub in Palm Springs
                     CalValleyTech iHub in the Central San Joaquin Valley   

        1. Governor's Office of Business and Economic Development (GO-Biz).   
           In February 2010, the Little Hoover Commission undertook a review  
           of the state's economic and workforce development programs.  In its  
           final report, Making up for Lost Ground:  Creating a Governor's  
           Office of Economic Development, it analyzed the status and  
           effectiveness of current programs since the 2003 demise of the  
           Technology, Trade and Commerce Agency and recommended the creation  
           of a new governmental entity to fill the void left by the  
           dismantled agency.

           The report called for a single entity that would promote greater  
           economic development, foster job creation, serve as a policy  
           advisor and deliver specific services (i.e., permitting, tax,  
           regulatory, and other information) directly to the California  
           business community.  In April 2010, Governor Schwarzenegger issued  
           Executive Order S-05-10 as a means to operationalize the report  
           recommendations including the creation of the Governor's Office of  
           Economic Development (GOED).

           In October 2011, the Governor signed AB 29 (cited and described  
           below), which effectively codified GOED and changed its name to  
           GO-Biz, effective January 1, 2012.  Since its inception, the office  
           has served over 3,000 businesses, 95% of which are small.  The most  
           frequent types of assistance include help with permit streamlining,  
           starting a businesses, relocation and expansion of businesses, and  
           regulatory challenges.  





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           One key initiative of GO-Biz is the "strike teams" which can be  
           mobilized to help attract and/or retain specific businesses.   
           Strike teams are especially well suited to engage with major  
           employers and have been successfully activated to assist Bayer  
           Healthcare, Jazz Semiconductor, and Baxter Pharmaceutical to locate  
           and/or expand in California.
             
           In March 2012, the Governor initiated a reorganization process to  
           realign the state's administrative structure.  Key changes include  
           dismantling of the Business, Transportation and Housing Agency  
           (BTH) and the shifting of a number of key programs and services to  
           GO-Biz including the Small Business Loan Guarantee Program, the  
           California Travel and Tourism Commission, the California Film  
           Commission, the Film California First Program and the  
           Infrastructure and Economic Development Bank (I-Bank).  In  
           addition, the Governor called for the placement of the California  
           SBDC Program within GO-Biz.  

        2. Related Legislation This Session.   SB 9  (Price) establishes the  
           Office of Social Innovation within GO-Biz to establish partnerships  
           with government agencies, private investors, nonprofit  
           organizations, and for-profit service providers to facilitate the  
           use of social impact bonds (SIBs), as defined, to address social  
           services needs.to explore the use of social innovative financing in  
           the State of California.  (  Status:   This bill is pending in the  
           Senate Committee on Governance and Finance.)

            SB 431  (Price) establishes the California Socioeconomic Development  
           Pods Program within the Governor's Office of Business and Economic  
           Development (GO-Biz) to encourage the use of social innovative  
           financing, as defined, within blighted areas in the state. The bill  
           would also create the Pod Accelerator Fund, a continuously  
                                                           appropriated fund, within the State Treasury, to receive moneys  
           collected and received by the Governor's Office of Business and  
           Economic Development for the California Socioeconomic Development  
           Pod Program from gifts, bequests, or donations.  (  Status:   This  
           bill is pending in the Senate Committee on Governance and Finance.)

            AB 53  (John A. Pérez) requires GO-Biz to lead the preparation of  
           the California Economic Development Strategic Plan, as specified.   
           Requires a copy of the Worker Adjustment and Retraining  
           Notification Act (WARN) notice be provided to GO-Biz and that it be  
           posted on the Employment Development Department (EDD) Web site.   
           (  Status:  This bill is scheduled for a hearing before this  
           Committee on July 1, 2013.)





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            AB 393  (Cooley) requires the Director of GO-Biz to ensure that the  
           office's Internet Web site contains information on the fee  
           requirements and fee schedules of state agencies.  
           (  Status:   This bill is scheduled for a hearing before this  
           Committee on June 24, 2013.) 

            AB 495  (Campos) establishes the California Community Investment  
           Initiative within GO-Biz tasked with creating an inventory of  
           low-income neighborhoods, state and local programs, and sources of  
           public-sector finance, coordinate public-sector financial  
           investment and public programs to assist low-income communities to  
           become business, development, and investment ready, develop  
           criteria for determining the type of economically, socially, and  
           environmentally responsible businesses and real estate developments  
           to assist in starting-up, locating, and growing in low-income  
           neighborhoods, establish a broad array of incentives to encourage  
           responsible businesses and real estate developments to grow in low  
           income neighborhoods and to encourage investment in low income  
           neighborhoods.  (  Status:   This bill is pending in the Assembly  
           Committee on Banking and Finance.)

            AB 653  (V. Manuel Perez) establishes the California Innovation and  
           Jobs Act, which increases the maximum value of the research and  
           development (R&D) credit, eliminates state sales tax on  
           manufacturing equipment, authorizes a new tax credit for private  
           investments in postsecondary institutions, and codifies the  
           California Innovation Hub (iHub) Program.  (  Status:   This bill is  
           pending in the Assembly Committee on Revenue and Taxation.)  

            AB 837  (Campos) requires annual reporting to the Governor's Office  
           of Business and Economic Development (GO-Biz) by the California  
           Small Business Development Center Leadership Council on its  
           activities in any year that the state contributes funds to the  
           program and also specifies the contents of the report.  ( Status:    
           This bill passed out of this Committee on June 17, 2013 with a 10-0  
           vote and was re-referred to Senate Appropriations Committee.)

            AB 1098  (Quirk-Silva) requires OSBA to commission a study regarding  
           the costs of state regulations on small businesses, as specified.   
           The study is required to be completed by January 1, 2015, and  
           updated every five years. (  Status:   This bill is scheduled for a  
           hearing before this Committee on June 24, 2013.) 

            AB 1247  (Medina) transfers the administration of the small business  
           financial development corporation (FDC) managed programs from the  





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           BTH to the California Infrastructure and Economic Development Bank  
           (I-Bank) within GO-Biz and clarifies a number of administrative and  
           programmatic elements to improve program delivery.  (  Status:   This  
           bill is pending in the Senate Governmental Organization Committee.)  
              

        3. Prior Related Legislation.   SB 1327  (Canella, Chapter 763, Statutes  
           of 2012) required 
        GO-Biz to use its Web site to assist individuals with licensing,  
           permitting, and registration requirements necessary to start a  
           business. 
           
            AB 32  (Lara) of 2012 would have required OSBA to establish a  
           program that supports entrepreneurship as a form of economic  
           development and job creation in communities throughout this state.   
           (  Status:   The bill was never heard in its first policy committee.)

            AB 744  (John A. Pérez, Chapter 463, Statutes of 2012) required the  
           Department of General Services (DGS) to assist state agencies in  
           the management and development of intellectual property that was  
           developed by state employees or with state funding.  Among other  
           duties, the department is required to develop a database of  
           state-owned intellectual property starting January 1, 2015.  

            AB 1646  (Campos) of 2012 would have established the California  
           Demonstration of Emerging Market Opportunities Program (CalDEMO  
           Program) within GO-Biz for the purpose of facilitating agreements  
           with for-profit and non-profit organizations to use state  
           facilities and other resources to test and deploy at scale  
           innovative products, services and processes. (  Status:   This bill  
           was held in the Senate Committee on Appropriations.) 

            AB 2506  (V. Manuel Pérez) of 2012 would have increased the state  
           R&D credit from 15% to 40%, eliminated sales tax on manufacturing  
           equipment, authorized a new tax credit for private investments in  
           postsecondary institutions, required state agencies to submit  
           regulatory actions to the Legislature 60 days prior to submitting  
           those actions to the Office of the Administrative Law, and  
           authorized the creation of regional innovation boards.  
           (  Status:   This bill was held in the Assembly Committee on Business,  
           Professions, and Consumer Protection.)   

            AB 29  (John A. Pérez, Chapter 475, Statutes of 2011) established  
           GO-Biz within the Governor's Office for the purpose of serving as  
           the lead entity for economic strategy and marketing of California  
           on issues relating to business development, private sector  





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           investment and economic growth.

            AB 894  (V. Manuel Pérez) of 2011 would have established a loan and  
           loan guarantee program to enable the state to draw down federal  
           dollars to support the retooling and expansion of manufacturing in  
           California.  (  Status:   This measure was vetoed by the Governor.  In  
           his veto message, the Governor stated that the objectives of the  
           bill are excellent but the loan programs it creates can be run by  
           the state's Infrastructure Bank, which already has authority and  
           experience lending directly to businesses.)  

           AB 1233  (V. Manuel Perez) of 2011 aimed to modernize California's  
           economic development activities and promotes the state's  
           competitiveness by requiring an integrated economic and workforce  
           development strategy consistent with the needs of all Californians.  
            (  Status:  This bill was held in the Assembly Committee on  
           Appropriations.) 

            SB 1259  (DeSaulnier) of 2010, would have created the Economic  
           Development and Job Creation Agency and require the appointed  
           Secretary of the Agency to develop a reorganization plan, propose a  
           structure for the agency, and perform specified duties relating to  
           economic development and job creation.  (  Status:   This bill was  
           held in the Senate Committee on Appropriations.)

            AB 1632  (Blumenfield, Chapter 731, Statutes of 2010) included  
           transfers of $32.4 million from the General Fund to support  
           small-business and jobs programs.  

            AB 2287  (Bass) of 2010, would have established the Office of  
           Economic Development, which included the California Business  
           Investment Services Program, within the then-Governor's Economic  
           Development Office.  (  Status:   This bill was held in the Assembly  
           Committee on Jobs, Economic Development and the Economy.)
            
           AB 2734  (John A. Perez) of 2010 would have created the Office of  
           Economic Development, which included the California Business  
           Investment Services Program, within the Governor's Office.   
           Required the Office to serve the Governor as the lead entity for  
           economic strategy and marketing of California and make  
           recommendations to the Governor and Legislature regarding polices,  
           programs, and actions to advance statewide economic goals.  
           (  Status  : This measure was vetoed by the Governor in 2010.  In his  
           veto message, the Governor indicated that he was "disappointed at  
           the insistence of the State Senate to make the director of this  
           office subject to confirmation, which inappropriately infringes on  





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           the rights and powers of my office.")
         
           AB 699  (Portantino and V. Manuel Pérez) of 2009 would have updated  
           the requirements for the development of a State Economic  
           Development Strategy, especially in the areas of technology and  
           innovation, and required it be submitted to the Legislature by May  
           1, 2010.  (  Status:   This bill was held in the Assembly Committee on  
           Appropriations.) 

            AB 1558  (V. Manuel Perez) of 2009 would have reorganized the  
           state's economic development efforts by eliminating the duties of  
           the Secretary of Business, Transportation and Housing and transfer  
           modified duties to a Director and Executive Director of a renamed  
           Economic and Employment Development Department, which would succeed  
           to some of the duties of the existing Employment Development  
           Department.  The bill was held by the Senate Committee on  
           Appropriations. 

            AB 1565  (Buchanan) of 2009 would have authorized, until January 1,  
           2016,  the Department of Housing and Community Development (HCD) to  
           designate, based on specific factors,  a Research and Development  
           Tax Credit Area located within an iHub or a city.  (  Status:   This  
           bill was held in the Senate Committee on Revenue and Taxation in  
           2010.)  

            AB 699  (Portantino and V. Manuel Pérez) of 2009 would have updated  
           the requirements for the development of a State Economic  
           Development Strategy, especially in the areas of technology and  
           innovation, and would have required it be submitted to the  
           Legislature by May 1, 2010.  (  Status:   This bill was held in the  
           Assembly Committee on Appropriations.)

            AB 2711  (Portantino) would have required the Secretary of the  
           Business, Transportation and Housing Agency to develop a  
           comprehensive state technology and innovation strategy to guide  
           future state expenditures and activities.  (  Status:   This bill was  
           held in the Assembly Committee on Appropriations.)  

           AB 2854  (Mendoza) of 2008 would have required, contingent upon  
           funding becoming available, the establishment of a one-stop web  
           site for small business-related announcements and funding  
           opportunities offered by state agencies.  (  Status  :  This measure  
           was vetoed by the Governor in 2008.  In his veto message, the  
           Governor indicated that the requirements in the bill were redundant  
           and unnecessary.)  






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            SB 1436  (Figueroa, Chapter 234, Statutes of 2006) enhanced the  
           state's technical assistance to small businesses by improving the  
           state's Internet information for small businesses and required the  
           designation of agency-level small business liaisons.  

        6.Arguments in Support.  Supporters of this bill like the  Los Angeles  
          Economic Development Corporation  call this bill a boost to a  
          low-cost program that is essential to spurring innovation, prompting  
          collaboration and improving the state's overall economic  
          competitiveness.  

          According to the  California Healthcare Institute  , this bill provides  
          an excellent model to bring the forces of innovation, competition  
          and education together and help ensure that California remains the  
          preeminent location for innovation in the biomedical field.

           The San Gabriel Valley Economic Partnership  writes in support of  
          this bill, stating that by leveraging local research parks,  
          technology incubators, colleges and universities and federal  
          laboratories, the iHub program has successfully fostered greater  
          collaboration between innovators and venture capital investment  
          opportunities within the state.    

        7.Suggested Technical Amendment.  The bill requires GO-Biz to set  
          guidelines for approval, designation, operation, reporting and  
          "dedesignation" of iHubs.  Staff believes that this is a  
          typographical error, intended to refer to "redesignation", the  
          process whereby GO-Biz could designate an iHub again.

          On page 6, line 7, strike "dedesignation" and replace with  
          "redesignation".

          (g) The office shall set guidelines for approval, designation,
          Operation, reporting and  dedesignation   redesignation  of iHubs.
        

        SUPPORT AND OPPOSITION:
        
         Support:  

        BIOCOM
        California Healthcare Institute
        Clean Tech San Diego 
        CONNECT
        Los Angeles County Economic Development Corporation
        San Diego Regional Economic Corporation





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        San Gabriel Valley Economic Partnership

         Opposition:  

        None on file as of June 18, 2013.



        Consultant:Sarah Mason