Amended in Senate June 19, 2014

Amended in Assembly May 1, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1675

Introduced by Assembly Member Ian Calderon

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

February 12, 2014

An act to add Article begin delete 6 end delete begin insert 7 end insert (commencing with Section begin delete 12099) end delete begin insert 12100) end insert 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 office 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 utilizing the expertise of private-sector entrepreneurs to help make state governmental activities and practices more streamlined and accessible to small businesses. The program would authorize the director of the Governor’s Office of Business and Economic Development 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 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. The bill would also require the director 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.

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 begin delete 6 end delete begin insert 7 end insert (commencing with Section begin delete 12099) end delete
begin insert 12100) end insert is added to Chapter 1.6 of Part 2 of Division 3 of Title 2
of the Government Code, to read:

 

Article begin delete 6. end delete begin insert 7. end insert   Entrepreneur-in-Residence Act of 2014

 

begin delete 12099. end delete
begin insert 12100. end insert   

This article shall be known and may be cited as the
Entrepreneur-in-Residence Act of 2014.

begin delete 12099.1. end delete
begin insert 12100.1. end insert   

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.

begin delete 12099.2. end delete
begin insert 12100.2. 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 to small businesses.

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

(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 begin delete they are end delete begin insert he or she is end insert placed, including, but not limited to,
having any existing business before the state agency in which begin delete they
are proposing end delete begin insert he or she is proposed end insert to be placed or begin delete are end delete begin insert is end insert placed.

(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:

(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.

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

(d) As a condition of having a placement of an
entrepreneur-in-residence, the state agency shall agree to the
procedures set by the begin delete office end delete begin insert director end insert 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 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.

(f) 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.

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

begin delete 12099.3. end delete
begin insert 12100.3. 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 begin delete be end delete 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 director of the office updated on his or her
activities, findings, and recommendations.

begin delete 12099.4. end delete
begin insert 12100.4. end insert   

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

(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:

(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, 2019,
pursuant to Section 10231.5 of the Government Code.

(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.