Amended in Assembly April 26, 2016

Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2664

Introduced by Assembly Member Irwin

February 19, 2016

An act to add Chapter 14.5 (commencing with Section 92965) to Part 57 of Division 9 of Title 3 of the Education Code, relating to the University of begin delete California, and making an appropriation therefor. end delete begin insert California. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2664, as amended, Irwin. University of California: innovation and entrepreneurship expansion.

Existing law establishes the University of California, under the administration of the Regents of the University of California, as one of the segments of public postsecondary education in this state. The University of California comprises 10 campuses, which are located at Berkeley, Davis, Irvine, Los Angeles, Merced, Riverside, San Diego, San Francisco, Santa Barbara, and Santa Cruz, and other facilities operated by the university, including the Lawrence Berkeley National begin delete Laboratory. end delete begin insert Laboratory (LBNL). end insert

This bill would begin delete provide funding to end delete begin insert require end insert the University of California to expand the infrastructure necessary to increase innovation and entrepreneurship begin insert activities across the state end insert for the purpose of creating economic development. The bill would specify begin insert that funds appropriated for that purpose shall be used to fund innovation and entrepreneurship programs as each of the university’s campuses, the LBNL, and in other areas of the state that may benefit from those programs, but would require the university to determine end insert the manner in which begin insert the end insert funding begin delete provided under the bill could be used by the University of California. end delete begin insert would be used, consistent with the bill’s provisions. In implementing these provisions, the bill would require the university to consult with public and private stakeholders and to design programs to enhance, not necessarily duplicate, the state’s network of innovation-based business development programs and services. end insert The bill would require the University of California to report to the Department of Finance and the Legislature annually on the use of the funding provided for purposes of the begin delete bill. end delete begin insert bill, as specified. The bill would make implementation of its provisions contingent on an appropriation for its purposes in the annual Budget Act. end insert

begin delete

The bill would appropriate $66,000,000 from the General Fund to the Regents of the University of California for allocation, for purposes of the bill, in equal amounts in the 3 fiscal years from 2017-18 to 2019-20, inclusive.

end delete

Vote:  begin delete ²⁄₃ end delete begin insert majority end insert . Appropriation:  begin delete yes end delete begin insert no end insert . Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

With respect to innovation and entrepreneurship
expansion at the University of California, the Legislature finds
and declares all of the following:

(a) The State of California is well-positioned to harness the
power of the University of California’s expertise to spur economic
development.

(b) The University of California contributed to the foundational
research breakthroughs that launched some of California’s strongest
industries, including aerospace, agriculture, biotechnology,
computers and semiconductors, telecommunications, and digital
media.

(c) Research at the University of California continues to create
new inventions that will be the genesis of tomorrow’s industries,
companies, and commercial successes.

(d) Innovation and entrepreneurship at the University of
California create equitable economic development throughout
California.

(e) It is therefore the intent of the Legislature to provide funds
to establish or expand the infrastructure at each campus and the
Lawrence Berkeley National Laboratory (LBNL) begin delete to expand
infrastructure necessary to build a network of end delete begin insert for purposes of
enhancing the state’s network of programs and services that
support end insert innovators, entrepreneurs, startups, investors, and industry
and community partners begin delete to spur innovation and economic
development end delete in communities surrounding University of California
campuses, the LBNL, and across California.

SEC. 2.  

Chapter 14.5 (commencing with Section 92965) is
added to Part 57 of Division 9 of Title 3 of the Education Code,
to read:

 

Chapter  14.5. Innovation and Entrepreneurship
Expansion

 

92965.  

(a)  begin delete Moneys to be appropriated for this chapter shall be
used by end delete begin insert With funds appropriated for purposes of this chapter, end insert the
University of California begin delete to expand the infrastructure necessary to end delete
begin insert shall end insert increase innovation and entrepreneurship begin insert activities across
the state end insert for the purpose of creating economic development.

(b) The funds referenced in subdivision (a) shall be used to fund
innovation and entrepreneurship programs at each campus of the
University of begin delete California and end delete begin insert California, end insert the Lawrence Berkeley
National Laboratory begin delete (LBNL). end delete begin insert (LBNL), and in other areas of the
state that may benefit from these programs. end insert

(c) The manner in which the funds provided for purposes of this
chapter will be used shall be determined by the University of
California. These uses may include, but shall not necessarily be
limited to, the establishment of programs or projects begin insert and the
purchase of equipment end insert to facilitate begin insert innovation-based end insert economic
development in communities surrounding the 10 campuses of the
University of California, the LBNL, and other locations across
California for purposes such as any of the following:

(1) Providing business training and resources to reduce common
barriers to success for entrepreneurs and startup companies.

(2) Offering subsidized work and laboratory space to startups
for prototype development, proof-of-concept research, or both.

(3) Providing proof-of-concept funding to increase the likelihood
that entrepreneurs and startup companies will attract venture or
corporate capital backing.

(4) Providing begin delete mentorship to the underrepresented interested in
entrepreneurial pursuits. end delete begin insert mentorship, including mentorship to
individuals from population groups who have historically been
underrepresented in science and innovation-based industries. end insert

(5) Coordinating and aligning innovation functions at a campus
of the university or at the LBNL, and building relationships
between the university environment and successful, independent
enterprises to facilitate the rollout of products to the market and
the public.

begin insert

(d) In implementing this chapter, the University of California
shall design programs to enhance, not necessarily duplicate, the
state’s network of innovation-based business development
programs and services. The University of California shall also
consult with public and private stakeholders when implementing
this chapter in order to ensure programs authorized by this chapter
strengthen the state’s entrepreneurial capacity and global
competitiveness. This may include new partnerships and initiatives
with public and private economic development entities, including,
but not limited to, local and regional economic development
corporations, small business development centers, business
accelerators, and Innovation Hubs.

end insert

92966.  

begin insert (a) end insert begin insert   end insert The University of California shall report to the
Department of Finance and the Legislature annually on the use of
the funding provided for purposes of this chapter. begin delete This end delete

begin insert

(b) (1) The annual report shall include, at a minimum, all of
the following:

end insert begin insert

(A) The number of businesses and entrepreneurs assisted.

end insert begin insert

(B) The industry sectors of the businesses and entrepreneurs
assisted.

end insert begin insert

(C) The cities in which the businesses and entrepreneurs assisted
are located. For businesses or entrepreneurs assisted in cities with
a population of less than 250,000, only the county shall be listed.

end insert begin insert

(D) The number of total employees employed by the businesses
and entrepreneurs assisted at the time those businesses and
entrepreneurs were assisted, based on the following categories,
whichever is the most appropriate:

end insert begin insert

(i) No employees.

end insert begin insert

(ii) Five employees or fewer.

end insert begin insert

(iii) Twenty employees or fewer.

end insert begin insert

(iv) Under 50 employees.

end insert begin insert

(v) Under 100 employees.

end insert begin insert

(vi) Under 500 employees.

end insert begin insert

(E) The number of jobs created and the number of jobs retained.

end insert begin insert

(F) The amount of capital infusion, in both debt and equity,
obtained by businesses and entrepreneurs assisted.

end insert begin insert

(2) Subparagraphs (D) to (F), inclusive, shall be reported on
an aggregated basis.

end insert

begin insert (c) end insert begin insert   end insert begin insert The end insert annual report shall comply with Section 9795 of the
Government Code.

begin insert

begin insert 92967. end insert   

This chapter shall not be implemented unless funds are
appropriated for its purposes in the annual Budget Act.

end insert

begin delete

SEC. 3.  

The sum of sixty-six million dollars ($66,000,000) is
appropriated from the General Fund to the Regents of the
University of California for allocation, for purposes of Chapter
14.5 (commencing with Section 92965) of Part 57 of Division 9
of Title 3 of the Education Code, in accordance with the following
schedule:

(a) Twenty-two million dollars ($22,000,000) for expenditure
for the 2017-18 fiscal year.

(b) Twenty-two million dollars ($22,000,000) for expenditure
for the 2018-19 fiscal year.

(c) Twenty-two million dollars ($22,000,000) for expenditure
for the 2019-20 fiscal year.

end delete