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SB-1325 California Techquity Innovation Program.(2021-2022)



Current Version: 06/28/22 - Amended Assembly

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SB1325:v97#DOCUMENT

Amended  IN  Assembly  June 28, 2022
Amended  IN  Senate  May 19, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 1325

Introduced by Senator Gonzalez
(Coauthors: Assembly Members Cervantes and Petrie-Norris)

February 18, 2022

An act to add Article 6.3 (commencing with Section 12099.8) to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, relating to economic development.


LEGISLATIVE COUNSEL'S DIGEST


SB 1325, as amended, Gonzalez. California Techquity Innovation Program.
Existing law establishes the Office of Small Business Advocate (CalOSBA) within the Governor’s Office of Business and Economic Development to advocate for causes of small business and to provide small businesses with the information they need to survive in the marketplace. Existing law prescribes the duties and functions of the Small Business Advocate, who is also the Director of CalOSBA.

Existing law establishes the Governor’s Office of Business and Economic Development (GO-Biz) to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth.

This bill would would, upon appropriation by the Legislature for the purposes of these provisions, establish the California Techquity Innovation Program, to be administered by GO-Biz CalOSBA, to fund provide grants or investments, upon appropriation by the Legislature, that to advance equity in tech entrepreneurship in California, and support underserved and underrepresented entrepreneurs, technology accelerators, incubators, fully accredited institutions of higher education, local government, and public-private partnerships that support, advise, and uplift underrepresented entrepreneurs. technology-based business and finance sectors in California. The bill would specify that grants would be awarded for expansion or operation of technology incubators, technical assistance, professional coaching, mentoring, workforce training initiatives, and research, as specified. The bill would establish the California Techquity Innovation Program Fund for purposes of supporting the program. The bill would require GO-Biz CalOSBA to establish guidelines in order to maintain oversight of the California Techquity Innovation Program, including, but not limited to, guidelines for grant approval, program operations, and reporting by grant recipients. recipients, as specified. The bill would require the office to annually report to the Legislature on programs and activities undertaken pursuant to these provisions and to post that report on its internet website.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Article 6.3 (commencing with Section 12099.8) is added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, to read:
Article  6.3. California Techquity Innovation Program and Fund

12099.8.
 (a) The Governor’s Office of Business and Economic Development (GO-Biz) Upon appropriation by the Legislature for the purposes of this article, the Office of the Small Business Advocate shall establish and administer the California Techquity Innovation Program, which shall fund grants or investments that advance equity in tech entrepreneurship in California, and support underserved and underrepresented entrepreneurs, technology accelerators, incubators, provide grants for the purpose of advancing equity in technology-based business and finance sectors in California. By funding fully accredited institutions of higher education, local governments, and public-private partnerships that support, advise, and uplift that successfully operate technology accelerators and incubators, these grants will support and uplift underserved and underrepresented entrepreneurs.
(b) Under the program, GO-Biz shall fund grants for, but not limited to, The office shall award grants for any of the following purposes:
(1) Financial grants for technology accelerators, incubators, Expansion or operation of technology accelerators and incubators operated by fully accredited institutions of higher education, local governments, and public-private partnerships that have demonstrated their ability to support minority-led, women-led, and lesbian, gay, bisexual, or transgender persons-led technology businesses and technology businesses led by persons with disabilities.
(2) Financial grants for Technical assistance, professional coaching, and formal mentoring of underrepresented venture capital managers managers, including early and mid-career managers, and underserved entrepreneurs developing economic opportunities based in California.
(3) Financial grants to fund Workforce training initiatives operated by regional workforce development partnerships that advance equity in tech technology employment.
(4) Financial grants to fund research Research to evaluate the effectiveness of investing in equity entrepreneurship and workforce, including establishing partnerships with local, fully accredited institutions of higher education to lead these studies.
(c) GO-Biz The office shall provide priority to applicants that do all either of the following:
(1) Provide services, technical assistance, and support that is not currently or adequately provided funded by a regional Inclusive Innovation Hub established pursuant to Article 6.2 (commencing with Section 12099.1) to underrepresented entrepreneurs.
(2) Demonstrate access to matching funds from local or federal programs, public-private partnerships, or venture capital managers who support underserved, equity-forward entrepreneurs.
(d) GO-Biz The office shall establish guidelines in order to maintain oversight of the California Techquity Innovation Program, including, but not limited to, guidelines for grant approval, program operations, and reporting by grant recipients. recipients, that include, but are not limited to the following:
(1) Applicants shall identify the proposed use of the funds and include benchmarks or milestones with approximate timelines as to when they will be achieved.
(2) Applicants shall demonstrate prior ability to successfully undertake the proposed grant activities, which may include the experience and capacity of a partner organization.
(3) Applicants may request funding for a period of between one and three years in duration.
(4) Grantees may use up to 15 percent of grants for administrative costs.
(5) Applicants shall identify a fiscal agent for the proposed grant that is able to receive nonfederal funds.
(6) Conditions and requirements for drawing down grant funds that shall be included in a written grant agreement between the office and a selected grant recipient.
(7) A dispute resolution process.
(8) As a condition of receiving funds, the grantee shall agree do to the following:
(A) Comply with reporting requirements, as set by the office.
(B) Request demographic information from businesses and asset managers served by the grant funds.
(e) (1) The office shall issue a request for proposals to award grant funds within 120 days after funding has been appropriated for the purposes of this article.
(2) Grants made pursuant to this article shall be evaluated using criteria consistent with the guidelines adopted by the department pursuant to this article.

(e)

(f) The California Techquity Innovation Fund is hereby established in the State Treasury, to be administered by GO-Biz. the office. Moneys in the fund, upon appropriation by the Legislature, shall be used by GO-Biz the office to implement and administer this article.
(g) The office shall, in accordance with Section 9795, annually report to the Legislature on program activities undertaken pursuant to this article during the prior fiscal year, including recommendations for improvement.
(1) The first report shall be due on January 15, following the first fiscal year in which funding is provided to implement any portion of this article.
(2) This reporting requirement may be met separately or the information may be included in the annual report required by subdivision (b) of Section 12098.4.
(3) The report shall be posted on the internet website of the Office of the Small Business Advocate.