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AB-1675 Entrepreneur-in-Residence Act of 2014.(2013-2014)

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Amended  IN  Senate  June 19, 2014
Amended  IN  Assembly  May 01, 2014

CALIFORNIA LEGISLATURE— 2013–2014 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 6 7 (commencing with Section 12099) 12100) 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   Local Program: NO  

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


SECTION 1.

 Article 6 7 (commencing with Section 12099) 12100) is added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, to read:
Article  7. Entrepreneur-in-Residence Act of 2014

12099. 12100.
 This article shall be known and may be cited as the Entrepreneur-in-Residence Act of 2014.

12099.1. 12100.1.
 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. 12100.2.
 (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 they are he or she is placed, including, but not limited to, having any existing business before the state agency in which they are proposing he or she is proposed to be placed or are is 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 office director 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.

12099.3. 12100.3.
 (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 be 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.

12099.4. 12100.4.
 (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.