Amended in Senate June 15, 2016

Amended in Assembly May 4, 2015

Amended in Assembly April 21, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 582

Introduced by Assembly Member Calderon

February 24, 2015

An act begin delete relating end delete begin insert to add Article 7 (commencing with Section 12100.1) to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, relating end insert to state government.

LEGISLATIVE COUNSEL’S DIGEST

AB 582, as amended, Calderon. begin delete Professionals in public service: pilot program work group. end delete begin insert Entrepreneur-in-Residence Act of 2016. end insert

begin insert

Existing law establishes within the Governor’s office the Government Operations Agency, which consists of several state agencies, including the Department of General Services and the Department of Technology, and is governed by the Secretary of Government Operations.

end insert begin insert

This bill would enact the Entrepreneur-in-Residence Act of 2016, which would establish the state entrepreneur-in-residence program within the Government Operations Agency for the purpose of utilizing the expertise of private-sector entrepreneurs to help make state governmental activities and practices more streamlined and accessible. The program would authorize the Secretary of Government Operations to appoint a maximum of 10 persons each year to serve within a state agency as an entrepreneur-in-residence, with duties as established in the bill, on a voluntary basis. The bill would require the secretary to accept appointment applications for the position of an entrepreneur-in-residence and to establish prescribed procedures for complying with the bill no later than March 1, 2017. The bill would also require the secretary to establish an informal working group of entrepreneurs-in-residence to discuss best practices, experiences, obstacles, opportunities, and recommendations, and to report on the program to the Governor and the Assembly Committee on Jobs, Economic Development, and the Economy, as specified.

end insert begin delete

Existing law establishes the California State Auditor’s Office within state government under the direction of the Milton Marks “Little Hoover” Commission on California State Government Organization and Economy. Existing law makes that office independent of the executive branch and legislative control and places it under the direction of the California State Auditor.

end delete begin delete

Existing law establishes the Joint Legislative Budget Committee consisting of 8 Members of the Senate and 8 Members of the Assembly, authorizes the committee to appoint the Legislative Analyst, and sets forth his or her duties.

end delete begin delete

This bill would require the Legislative Analyst and the California State Auditor to convene a work group for the purposes of determining the most appropriate state agency to house a pilot professionals in public service program with the goal of making state government activities and practices more streamlined and accessible to small businesses. The bill would require that the recommendations of the work group be reported to the Legislature by December 31, 2016, and would repeal these provisions on January 1, 2017,

end delete

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.  

The Legislature finds and declares the following:

(a) California is home to some of the most innovative and
resourceful entrepreneurs in the world, making it the nation’s leader
in technology and related industries.

(b) The state should harness this innovation and leverage it to
provide the best possible customer service to all of its citizens in
the most cost-effective, efficient, and creative manner.

(c) Creativity and efficiency should not be limited to the private
sector, but rather should be embraced and developed to further the
public interest.

(d) Allowing the most creative private sector professionals to
volunteer their time and expertise to make government work better
begin insert and be more streamlined end insert for its citizens would permit the state to
utilize this creativity for the benefit of all its citizens.

(e) Establishing a professionals in public service begin delete program, in end delete
begin insert program within end insert a California state agency would permit
implementation of a model that has been applied successfully by
a variety of public and private entities and has proven to be a useful
tool to help various processes become more efficient.

begin delete

SEC. 2.  

(a) The Legislative Analyst and the California State
Auditor shall collaboratively convene a work group for the
purposes of determining the most appropriate state agency to house
a professionals in public service pilot program with the goal of
making state government activities and practices more streamlined
and accessible to small businesses.

(b) The Legislative Analyst and the California State Auditor
shall report the work group’s recommendations to the Legislature
on or before December 31, 2016. The report shall be submitted as
set forth in Section 9795 of the Government Code.

(c) This section is repealed on January 1, 2017.

end delete

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Article 7 (commencing with Section 12100.1) is added
to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the end insert begin insert Government
Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 7. end insert   Entrepreneur-in-Residence Act of 2016

 

begin insert 12100.1. end insert   

This article shall be known and may be cited as the
Entrepreneur-in-Residence Act of 2016.

begin insert 12100.2. end insert   

As used in this article, the following terms shall have
the following meanings:

(a) “Agency” means any state agency, department, or
commission.

(b) “Entrepreneur-in-residence” means an individual appointed
to a position under the program.

(c) “Office” means the Government Operations Agency.

(d) “Program” means the entrepreneur-in-residence program,
as established by this article.

(e) “Secretary” means the Secretary of the Government
Operations Agency, or his or her designee.

begin insert 12100.3. end insert   

(a) The state entrepreneur-in-residence program is
hereby established within the office for the purpose of utilizing the
expertise of private-sector entrepreneurs to help make state
governmental activities and practices more streamlined and
accessible.

(b) (1) The secretary may appoint one or more
entrepreneurs-in-residence under the program during each year,
however, the secretary shall not appoint more than 10
entrepreneurs-in-residence during any calendar year. The
secretary, with the approval of the state agency, may appoint an
entrepreneur-in-residence to any state agency.

(2) Any person appointed as an entrepreneur-in-residence shall
meet at least one of the following qualifications:

(A) The individual shall have demonstrated success in working
with California small businesses and entrepreneurs.

(B) The individual shall have successfully developed, invented,
or created a product and brought the product to the marketplace.

(3) Any person appointed as an entrepreneur-in-residence shall
not have a conflict of interest with the activities of the state agency
where he or she is placed, including, but not limited to, having
any existing business before the state agency in which he or she
is proposed to be placed or is placed.

(c) The secretary shall accept appointment applications for the
position of an entrepreneur-in-residence and establish procedures
for complying with this article no later than March 1, 2017. Among
other requirements, the procedures shall include the following:

(1) A process for engaging with and receiving approval from
state agencies about prospective appointments.

(2) A process for screening prospective appointees, including
checking background and references.

(3) A standard memorandum of understanding that stipulates
the responsibilities of each party in undertaking an
entrepreneurship-in-residence under the program, including, but
not limited to, hours, duties, goals, expected outcomes, agency
support, and office participation. This standard memorandum of
understanding shall be a model that shall be adapted to address
each individual placement to create the memorandum of
understanding into which the appointee, the agency, and the office
enter.

(d)  As a condition of having a placement of an
entrepreneur-in-residence, the state agency shall agree to the
procedures set by the secretary pursuant to subdivision (c).

(e) Before the effective date of an appointment under this article,
every individual selected to participate in the program shall have
entered into a memorandum of understanding with the secretary
and the head of the state agency where the entrepreneur will serve.
The memorandum of understanding shall be specific to the
placement and clearly identify the hours, duties, goals, expected
outcomes, agency support, and office participation. The
memorandum of understanding shall set the benchmarks and
metrics for evaluating the success of the placement.

(f) In administering the entrepreneur-in-residence program, the
secretary shall appoint entrepreneurs-in-residence in a variety of
interested agencies. However, to the extent practicable, the
secretary shall not appoint more than two
entrepreneurs-in-residence to positions in the same agency during
the same year.

(g) An entrepreneur-in-residence may serve as an
entrepreneur-in-residence for no longer than two years.

begin insert 12100.4. end insert   

(a) An entrepreneur-in-residence shall have all of
the following duties:

(1) Providing recommendations to the head of the state agency
the entrepreneur-in-residence serves on how to streamline,
eliminate, or modify potentially inefficient or duplicative activities,
processes, and programs, if any, at the state agency.

(2) Providing recommendations to the head of the state agency
the entrepreneur-in-residence serves on methods to improve
program efficiency at the state agency or new initiatives, if any,
that may be instituted at the state agency to address the needs of
small businesses and entrepreneurs.

(3) Assisting the state agency the entrepreneur-in-residence
serves in improving outreach and service to small business
concerns and entrepreneurs including, but not limited to, the
following:

(A) Facilitating meetings and forums to educate small businesses
and entrepreneurs on programs or initiatives of the state agency
the entrepreneur-in-residence is serving.

(B) Facilitating in-service sessions with employees of the office
and the state agency the entrepreneur-in-residence is serving on
issues of concern to entrepreneurs and small businesses.

(C) Providing technical assistance or mentorship to small
businesses and entrepreneurs in accessing programs at the office
and the state agency the entrepreneur-in-residence is serving.

(b) An entrepreneur-in-residence shall serve on a voluntary
basis, and shall dedicate at least 16 hours per week to the program,
unless a greater number of hours per week is otherwise agreed
upon. At the discretion of the head of a participating state agency,
the entrepreneur-in-residence shall have access to an office,
computer, and other related support services and equipment from
the participating state agency as the state agency determines to
be necessary for the entrepreneur-in-residence to discharge his
or her duties.

(c) An entrepreneur-in-residence shall report directly to the
head of the state agency in which the entrepreneur-in-residence
is serving and shall also keep the secretary of the office updated
on his or her activities, findings, and recommendations.

begin insert 12100.5. end insert   

(a) The secretary shall establish an informal working
group of entrepreneurs-in-residence to discuss best practices,
experiences, obstacles, opportunities, and recommendations.

(b) (1)   The secretary shall annually prepare and submit to the
Governor and the Assembly Committee on Jobs, Economic
Development, and the Economy a report on the program. The
report, at a minimum, shall include the following:

(A) A progress report on the activities of each
entrepreneur-in-residence during the reporting period, based on
the applicable memorandum of understanding.

(B) A general summary on how the overall program is
addressing the goals of the program, which are as follows:

(i) Making state programs simpler, easier to access, more
efficient, and more responsive to the needs and concerns of small
businesses and entrepreneurs.

(ii) Providing for better outreach by the state to the private
sector.

(iii) Strengthening coordination and interaction between the
state and the private sector on issues relevant to entrepreneurs
and small business concerns.

(2) The requirement for submitting a report imposed under
paragraph (1) of this subdivision is inoperative on January 1,
2021, pursuant to Section 10231.5.

(3) It is anticipated that program impacts will not be fully
measurable until recommended changes and activities are fully
implemented. The office and the agency where an
entrepreneur-in-residence is placed shall continue measuring and
reporting the impact of the activities of the
entrepreneur-in-residence for three years following the placement
of an entrepreneur-in-residence.

end insert