BILL ANALYSIS Ó
AB 250
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 250 (Holden and V. Manuel Pérez)
As Amended August 21, 2013
Majority vote
-----------------------------------------------------------------
|ASSEMBLY: |73-5 |(May 30, 2013) |SENATE: |39-0 |(August 26, |
| | | | | |2013) |
-----------------------------------------------------------------
Original Committee Reference: J., E.D. & E.
SUMMARY : Codifies and expands the California Innovation Hub
(iHub) Program at the Governor's Office of Business and Economic
Development (GO-Biz) for the purpose of stimulating economic
development and job creation through the coordination of
federal, state and local innovation-supporting resources.
Specifically, this bill :
1)Codifies and expands the iHub Program at GO-Biz for the
purpose of designating regional iHubs to support
collaborations and coordinate federal, state and local
innovation-supporting resources.
2)Establishes proposal criteria for applicants to the iHub
Program that includes a statement of purpose, business plan,
and list of goals and expectations for job development and
business creation; a statement of cooperation listing each
entity involved with the partnership and a description of
their role; and an explanation of the industry focus and
geographic boundaries of the proposed iHub.
3)Requires iHubs to include at least: one major university or
research center; one economic development organization; and
four of the following including: a business support
organization; an educational consortium; a venture capital
network including angel investors; a business foundation,
science foundation, laboratory research institution, federal
laboratory, or research and development facility; a municipal
economic division or department; and/or a federal government
partner such as a national laboratory.
4)Specifies that iHubs may, among other things:
a) Provide counseling and technical assistance in business
AB 250
Page 2
planning, management, financing, and marketing;
b) Provide advice on starting a business and accessing
financing opportunities;
c) Conduct business workshops, seminars, and conferences
with local partners; and
d) Facilitate partnerships between start-ups and research
institutions with venture capitalists and financial
institutions.
The Senate amendments:
1)Remove the statutory limitation on the number of iHubs which
the state may designate.
2)Make other technical and nonsubstantive changes.
EXISTING LAW 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.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : For decades, California has been known as a place
where innovation and creativity flourishes. A 2007 study on
California's global competitiveness identified eight key
dominant and emerging industry clusters including high-tech
manufacturing, biotech and clean technologies. While the report
found that the state was uniquely positioned to be a preferred
global partner in the areas of innovation, science, and
technology, the study also stated that California was facing
significant challenges from a growing talent pool in other
countries and the global redistribution of manufacturing abroad.
This bill fortifies the state's global competitiveness by
codifying the state's existing iHub Program.
Office of Business and Economic Development: In April 2010, the
Governor's Office of Economic Development was established to
AB 250
Page 3
provide a One-Stop-Shop for serving the needs of businesses and
economic developers. While initially established through
Executive Order S-01-10, the office was later codified and
renamed as GO-Biz, in AB 29 (John A. Pérez), Chapter 475,
Statutes of 2011. In 2012, GO-Biz directly assisted 5,308
companies, resulting in the creation and/or retention of 9,050
jobs and $1.45 billion in investments.
Among other programs, GO-Biz provides permit assistance for new
and expanding businesses, as well as administering the iHUB
program in partnership with the statewide network of economic
development partners. There are currently 12 regional iHUBs
located throughout the state. The iHub Program is designed to
improve the state's national and global competitiveness by
stimulating partnerships, economic development, and job creation
around specific research and innovation-based clusters. Key
assets and partners of the initiative include technology
incubators, research parks, universities, federal laboratories,
economic development organizations, business groups, and venture
capitalists.
Analysis Prepared by : Toni Symonds / J., E.D. & E. / (916)
319-2090
FN: 0001904