BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 582 (Calderon) - Entrepreneur-in-Residence Act of 2016
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|Version: June 15, 2016 |Policy Vote: G.O. 12 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 1, 2016 |Consultant: Robert Ingenito |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: AB 582 would establish the Entrepreneur-in-Residence
(EIR) program within the Government Operations Agency (GOA) for
the purpose of utilizing the expertise of private-sector
entrepreneurs to help make state governmental activities and
practices more streamlined and accessible.
Fiscal
Impact: Costs resulting from this bill be would be unknown, but
could potentially exceed $50,000 annually (General Fund and/or
special funds) for (1) GOA to administer the program and comply
with the bill's reporting requirements, and (2) for state
agencies to house the entrepreneurs, as specified.
Background: California small businesses reportedly comprised 96 percent of
the State's exporters in 2009, accounting for 44 percent of the
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State's total exports. Business owners with zero employees
totaled 2.8 million, and accounted for the single largest
component of the State's 3.5 million firms in 2010.
Microenterprises (businesses with less than five employees)
represent over 90 percent of the total. These businesses can
incur certain challenges in meeting regulatory requirements,
accessing capital, and marketing their goods and services.
Proposed Law:
This bill would, among other things, do the following:
Enact the EIR Act of 2016, which would establish the
state EIR program within GOA for the purpose of utilizing
the expertise of private-sector entrepreneurs to help make
state governmental activities and practices more
streamlined and accessible.
Specify that GOA may appoint one or more EIRs under the
program during each year, with a cap of 10 appointments
during any calendar year.
Specify that GOA, with the approval of the state agency,
may appoint an EIR to any state agency.
Specify that any person appointed as an EIR shall meet
specified qualifications.
Prohibit any person appointed as an EIR in having 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.
Require GOA to accept appointment applications for the
position of an EIR and to establish specified procedures
for complying with this bill no later than March 1, 2017.
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Require every individual selected to participate in the
program, before the effective date of an appointment, to
enter into a memorandum of understanding with the secretary
of the GOA 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.
Specify that in administering the EIR program, the GOA
shall appoint EIRs in a variety of interested agencies.
However, to the extent practicable, the secretary shall not
appoint more than two EIRs to positions in the same agency
during the same year.
Prohibit an EIR from serving as an EIR for no longer
than two years.
Require an EIR to have all of the following duties:
o Providing recommendations to the head of the
state agency where the EIR serves on how to
streamline, eliminate, or modify potentially
inefficient or duplicative activities, processes, and
programs, if any, at the state agency.
o Providing recommendations to the head of the
state agency where the EIR 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.
o Assisting the state agency in improving
outreach and service to small business concerns and
entrepreneurs including, but not limited to, the
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following:
§ Facilitating meetings and forums to
educate small businesses and entrepreneurs on
programs or initiatives of the state agency the
EIR is serving.
o Facilitating in-service sessions with
employees of the office and the state agency the EIR
is serving on issues of concern to entrepreneurs and
small businesses.
o Providing technical assistance or mentorship
to small businesses and entrepreneurs in accessing
programs at the office and the state agency the EIR is
serving.
Require an EIR to 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 EIR 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 EIR to discharge his or
her duties.
Require the EIR to report directly to the head of the
state agency in which the EIR is serving and shall also
keep the secretary of the GOA updated on his or her
activities, findings, and recommendations.
Require GOA to establish an informal working group of
EIR to discuss best practices, experiences, obstacles,
opportunities, and recommendations.
Require GOA to annually prepare and submit to the
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Governor and the Assembly Committee on Jobs, Economic
Development, and the Economy a report on the program
containing specified information. The requirement for
submitting a report imposed by this bill shall become
inoperative on January 1, 2021.
Require the office and the agency where an EIR is placed
to continue to measure and report the impact of the
activities of the EIR for three years following the
placement of an EIR.
Related
Legislation:
SB 1140 (Moorlach, 2016) would have required the
automatic repeal of a statute that expressly or implicitly
authorizes an executive agency to promulgate regulations
two years after the statute goes into effect, unless the
Legislature amends the statute to state its intent that the
statute not be repealed, or unless the statute was passed
in response to an emergency, as defined. The bill failed
passage in the Senate Governmental Organization Committee.
AB 12 (Cooley, 2015) would have required every state
agency to review all provisions of the California Code of
Regulations it has adopted, and to adopt, amend, or repeal
any regulations identified as duplicative, overlapping, or
out of date by January 1, 2018. The bill was held under
submission on the Suspense File of this Committee.
AB 1675 (Calderon, 2014) would have established the EIR
program within the Governor's Office of Business and
Economic Development to provide private sector expertise
and assistance to help make government activities and
practices streamlined and accessible to small business. The
bill was held under submission on the Suspense File of this
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Committee.
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