BILL ANALYSIS �
AB 1675
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Date of Hearing: May 7, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1675 (Ian Calderon) - As Amended: May 1, 2014
Policy Committee: JEDE Vote:7-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill establishes the Entrepreneur-in-Residence program (EIR
Program) within the Governor's Office of Business and Economic
Development (GO-Biz) for the purpose utilizing private sector
expertise to help make government activities and practices
streamlined and accessible to small business. Specifically,
this bill:
1)Establishes the EIR Program within GO-Biz. Authorizes the
Director of GO-Biz annual appoint of up to 10 entrepreneurs
within state agencies, departments, and commissions.
2)Requires entrepreneurs selected for program participation to
demonstrate one of the following criteria: success in working
with California small businesses and entrepreneurs; or success
in developing, inventing, and marketing a product.
3)Requires the Director of GO-Biz to accept applications and
establish procedures for compliance with the EIR program by
March 1, 2015, as specified. Requires the Director to develop
a standard memorandum of understanding that stipulates duties
and expected outcomes.
4)Requires GO-Biz to appoint entrepreneurs to a variety of
interested agencies. However, to the extent practicable, no
more than two entrepreneurs can be appointed to serve in the
same agency during the same year. An entrepreneur is
prohibited from serving more than two years in the EIR
Program.
5)Requires specific duties, including recommendations on how to
streamline, eliminate, or modify potentially inefficient or
AB 1675
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duplicative activities, processes, and programs and provide
assistance with outreach and service to small business
concerns and entrepreneurs.
6)Requires participants of the EIR Program to serve as
volunteers and dedicate at least16 hours to the program,
unless otherwise agreed upon.
7)Requires the Director of GO-Biz to annually prepare and submit
a report to the Governor and the Legislature on the program
outcomes.
FISCAL EFFECT
General fund administrative costs of in the range of $250,000 to
$300,000. Go-Biz anticipates needing two additional positions
to implement and administer the program. Costs are also
associated with preparation of an annual report.
COMMENTS
1)Purpose . According to the author, entrepreneurs are
responsible for thousands of jobs in our economy and are key
to the economic recovery of California. Entrepreneurs face
many obstacles such as access to capital and access to
markets, but the biggest obstacle to success is often
government itself. The EIR program is intended to identify
inefficient and duplicative programs within government that
negatively impact entrepreneurs, and recommend solutions to
streamline procedures. EIR participants will serve as
advocates and mentors within government and recommend ways to
improve programs available to entrepreneurs, facilitate
meetings and forums to educate entrepreneurs on programs and
requirements, and participate in informal working groups of
entrepreneurs from various agencies.
2)Background . Programs similar to the EIR program established
by this bill have been implemented in the private sector and
other states. According to Dell, a supporter of the bill, the
high tech sector began using the EIR model in the 1980's in
order to bring experienced professionals into the startup
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process.
In March 2014, Virginia enacted an EIR Program (HB 32, Chapter
63, Statutes of 2014) and several other states are reported to
also be considering EIR Programs, including Texas. According
to the author, AB 1675 is patterned after the Texas and
Virginia legislation.
The San Francisco Mayor's Office of Civic Innovation began an
EIR Program in 2013. San Francisco departments and agencies
selected the finalists through a competitive process based on
their needs and priorities. All businesses will participate
on a voluntary basis.
Analysis Prepared by : Misty Feusahrens / APPR. / (916)
319-2081