Amended in Assembly May 1, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1675

Introduced by Assembly Member Ian Calderon

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(Coauthors: Assembly Members Daly, Fox, Medina, and V. Manuel Pérez)

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February 12, 2014

An act to add Article 6 (commencing with Section 12099) to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, relating to state government.

LEGISLATIVE COUNSEL’S DIGEST

AB 1675, as amended, Ian Calderon. Entrepreneur-in-Residence Act of 2014.

Existing law establishes within the Governor’s begin delete office, end delete begin insert office end insert the Governor’s Office of Business and Economic Development as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth, and authorizes the office to exercise various powers, including, among others, making recommendations to the Governor and the Legislature regarding policies, programs, and actions to advance statewide economic goals.

This bill would enact the Entrepreneur-in-Residence Act of 2014, which would establish the state entrepreneur-in-residence program within the Governor’s Office of Business and Economic Development for the purpose of begin delete encouraging interaction between small business and the state. end delete begin insert utilizing the expertise of private-sector entrepreneurs to help make state governmental activities and practices more streamlined and accessible to small businesses. end insert The program would begin delete require end delete begin insert authorize end insert the director of the Governor’s Office of Business and Economic Development to appoint a maximum of 10 persons each year to serve begin delete as an entrepreneur-in-residence, end delete begin insert within a state agency as an entrepreneur-in-residence, with duties as established in the bill, end insert on a voluntary begin delete basis, each year. end delete begin insert basis. The bill would require the director 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, 2015. end insert The bill would also begin delete authorize end delete begin insert require end insert the director to establish an informal working group of entrepreneurs-in-residence to discuss best practices, experiences, obstacles, opportunities, and recommendations, begin delete as specified. end delete begin insert and to report on the program to the Governor and the Assembly Committee on Jobs, Economic Development, and the Economy, as specified. end insert

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.  

Article 6 (commencing with Section 12099) is
added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, to read:

 

Article 6.  Entrepreneur-in-Residence Act of 2014

 

12099.  

This begin delete act end delete begin insert article end insert shall be known and may be cited as the
Entrepreneur-in-Residence Act of 2014.

12099.1.  

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

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

(b) “Director” means the director of the Governor’s Office of
Business and Economic Development, or his or her designee.

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

(d) “Office” means the Governor’s Office of Business and
Economic Development.

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

12099.2.  

(a) The state entrepreneur-in-residence program is
hereby established within the office begin delete to do all of the following: end delete begin insert for
the purpose of utilizing the expertise of private-sector
entrepreneurs to help make state governmental activities and
practices more streamlined and accessible to small businesses. end insert

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(1) Provide for better outreach by the state to the private sector.

end delete begin delete

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

end delete begin delete

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

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

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

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(A) The individual shall have demonstrated success in his or
her field.

end delete begin delete

(B)

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begin insert (A) end insert  The individual shall have demonstrated success in working
with begin insert California end insert small begin delete business concerns end delete begin insert businesses end insert and
entrepreneurs.

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(C)

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

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

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(c) The director 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, 2015. Among
other requirements, the procedures shall include the following:

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

end insert begin insert

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

end insert begin insert

(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.

end insert begin insert

(4) A reporting process that meets the requirements of
subdivision (b) of Section 12099.4.

end insert begin insert

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

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(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 director
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.

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(c)

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

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(d)

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

12099.3.  

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

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(1) Assist the office and agency the entrepreneur-in-residence
serves in improving outreach to small business concerns and
entrepreneurs.

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(2) Provide recommendations to the office and the head of the
agency the entrepreneur-in-residence serves on inefficient or
duplicative programs, if any, at the agency.

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(3) Provide recommendations to the office and the head of the
agency the entrepreneur-in-residence serves on methods to improve
program efficiency at the agency or new initiatives, if any, that
may be instituted at the agency.

end delete begin delete

(4) Facilitate meetings and forums to educate small business
concerns and entrepreneurs on programs or initiatives of the office
and the agency the entrepreneur-in-residence is serving.

end delete begin delete

(5) Facilitate in-service sessions with employees of the office
and the agency the entrepreneur-in-residence is serving on issues
of concern to entrepreneurs and small business concerns.

end delete begin delete

(6) Provide technical assistance or mentorship to small business
concerns and entrepreneurs in accessing programs at the office
and the agency the entrepreneur-in-residence is serving.

end delete begin insert

(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.

end insert begin insert

(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.

end insert begin insert

(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:

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(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.

end insert begin insert

(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.

end insert begin insert

(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.

end insert

(b) An entrepreneur-in-residence shall serve on a voluntary
basis, begin delete but end delete begin insert and end insert shall dedicate at least begin delete 40 end delete begin insert 16 end insert hours per week to the
program, unless begin insert a greater number of hours per week is end insert otherwise
agreed upon. At the discretion of the head of a participating begin insert state end insert
agency, the entrepreneur-in-residence shall be begin delete entitled to
reimbursement end delete begin insert have access to an office, computer, and other
related support services and equipment end insert from the participating begin insert state end insert
agency begin delete of the actual and end delete begin insert as the state agency determines to be end insert
necessary begin delete expenses end delete begin insert for end insert the entrepreneur-in-residence begin delete incurs in end delete begin insert to end insert
discharge begin delete of end delete his or her duties.

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

12099.4.  

begin insert (a) end insert begin insert   end insert The director begin delete may end delete begin insert shall end insert establish an informal
working group of entrepreneurs-in-residence to discuss best
practices, experiences, obstacles, opportunities, and
recommendations.

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(b) (1) The director 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:

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

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(2) The requirement for submitting a report imposed under
paragraph (1) of this subdivision is inoperative on January 1,
2019, pursuant to Section 10231.5 of the Government Code.

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(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.

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