Code Section Group

Government Code - GOV


  ( Title 2 enacted by Stats. 1943, Ch. 134. )


  ( Division 3 added by Stats. 1945, Ch. 111. )


  ( Part 2 added by Stats. 1945, Ch. 111. )

CHAPTER 1.6. Governor’s Office of Business and Economic Development [12096 - 12100.110]

  ( Chapter 1.6 added by Stats. 2011, Ch. 475, Sec. 2. )

ARTICLE 6.2. California Innovation Initiatives [12099.1 - 12099.7]
  ( Heading of Article 6.2 renumbered from Article 6 (as added by Stats. 2013, Ch. 530, Sec. 1) by Stats. 2015, Ch. 303, Sec. 191. )


(a) The California Inclusive Innovation Hub Program is hereby created within the office, within GO-Biz.

(b) The office shall designate Inclusive Innovation Hubs within the state to stimulate partnerships, economic development, and job creation for underserved geographic areas, industry sectors, and business owners by leveraging assets to provide an innovation platform for startup businesses, research institutions, economic development organizations, business groups, and venture capitalists. The assets may include, but are not limited to, research parks, technology incubators, universities, and federal laboratories.

(c) The office shall oversee, coordinate, and provide assistance to each iHub2.

(Amended by Stats. 2021, Ch. 74, Sec. 3. (SB 151) Effective July 12, 2021.)


For purposes of this article, the following terms shall be defined as follows:

(a) “Applicant” means one or more entities that submit an application to the office. Eligible applicants shall be one or more of the following:

(1) A fully accredited institution of higher education.

(2) A private nonprofit corporation engaged in economic development activities.

(3) A county or municipality in this state that has a preexisting economic development department or program or both.

(4) A public economic development institution such as a workforce investment board or an economic development corporation.

(b) “GO-Biz” means the Governor’s Office of Business and Economic Development.

(c)  “Inclusive Innovation Hub,” “iHub Squared,” or “iHub2” means a partnership between interrelated firms, local governments, economic development organizations, educational entities, and industries that collectively drive economic growth within a defined geographic area and for defined underserved geographic areas, industry sectors, and business owners.

(d) “iHub2” coordinator” means the individual or entity agreed to by the iHub2 partnership that is responsible for all of the following:

(1) Implementing the objectives of the iHub2.

(2) Serving as the primary agent responsible for coordinating services and resources and maintaining the iHub2 partnership.

(3) Serving as the primary liaison to the state and the office.

(e) “Office” means the Office of the Small Business Advocate.

(Amended by Stats. 2021, Ch. 74, Sec. 4. (SB 151) Effective July 12, 2021.)


(a) The office shall issue a request for proposals for the California Inclusive Innovation Hub Program.

(b) An applicant’s proposal shall include, but shall not be limited to, all of the following information:

(1) A statement of purpose.

(2) A signed statement of cooperation and a description of the roles and relationships of each entity involved in the iHub2 partnership.

(3) A designated iHub2 coordinator.

(4) A clear explanation and map conveying the iHub2 physical boundary.

(5) A clearly stated designee to coordinate iHub2 activities.

(6) A clearly identified central location.

(7) Clearly identified benchmarks or milestones with approximate dates as to when they will be achieved.

(8) A complete budget including a description of secured funds with proof, pending funds, and potential future funding sources.

(9) A list and brief description of local and regional incentives and support programs.

(10) A clearly articulated commercial market focus and plan.

(11) A clearly articulated iHub2 management structure and plan that may include a description of the capabilities, qualifications, and experience of the proposed management team, team leaders, or key personnel who are critical to achieving the proposed objectives.

(12) A list of iHub2 assets and resources.

(13) A clearly articulated focus area of the iHub2 including underserved geographic areas, industry sectors, and business owners, or other targeted areas for development and growth.

(14) A list of specific resources available to support and guide startup companies.

(15) A clearly articulated list of goals to be achieved with the certification of the iHub2.

(16) Expectations for job development and business creation.

(17) Defined performance standards agreed upon by the partners involved in the development of the iHub2 that support underserved geographic areas, industry sectors, and business owners.

(18) Evaluation procedures that will be used to measure the level of achievement for each stated goal.

(19) A plan for sustainability.

(20) Organizational experience including capabilities, related experience, facilities, techniques, unusual resources, or unique combinations of these that are integral factors for achieving the proposed objectives.

(21) Demonstrated experience with innovation programs such as involvement with technology commercialization.

(22) Demonstrated experience with technology transfer or licensing.

(23) Demonstrated experience with intellectual property management.

(24) Evidence of community engagement and support.

(c) The office may waive any of the requirements listed in subdivision (b).

(d) The office may designate an iHub2 for a term of not more than three years. An iHub2 may reapply for a designation without limitation on the number of times.

(e) (1) The iHub2 designation shall not be official until a memorandum of understanding is entered into by the applicant and the office. The memorandum of understanding shall include the goals and performance standards identified in the application and other related requirements as determined by the office.

(2) For an iHub previously designated by GO-Biz to be designated as an iHub2 by the office, the designation is required to be newly awarded.

(f) More than one iHub2 may be designated in an area to the extent that there is a clear distinction between the focus area of each iHub2.

(g) The office shall set guidelines for approval, designation, operation, reporting, redesignation, and dedesignation of iHub2 s.

(h) An iHub2 shall annually report to the office on its progress in meeting the goals and performance standards as described in the iHub2 application and implementing memorandum of understanding with the office. The office shall annually post the information from these reports on the office internet website and provide notice to the Governor and relevant policy committees of the Legislature that the information is available on the internet website.

(Amended by Stats. 2021, Ch. 74, Sec. 5. (SB 151) Effective July 12, 2021.)


A designated iHub2 shall include at least one major university or research center or institute, one economic development organization, and consist of at least four of the following:

(a) A business support organization including a workforce development or training organization, incubator or business accelerator, business technical assistance providers, chamber of commerce, and networking organization that supports innovation.

(b) An educational consortium including technology transfer representatives.

(c) A venture capital network including angel investors.

(d) A business foundation, innovation foundation, science foundation, laboratory research institution, federal laboratory, or research and development facility.

(e) A municipal economic development division or department.

(f) A federal government partner such as a national laboratory.

(Amended by Stats. 2021, Ch. 74, Sec. 6. (SB 151) Effective July 12, 2021.)


Before an official designation as an iHub2 the applicant shall self-certify both of the following:

(a) That the iHub2 will comply with the state’s nondiscrimination policy.

(b) That the iHub2 and its principals are current in payment of all state and local taxes owed unless they have entered into an agreement that was deemed satisfactory by the respective taxing authority and are in full compliance with the agreement.

(Amended by Stats. 2021, Ch. 74, Sec. 7. (SB 151) Effective July 12, 2021.)


(a) An iHub2 may do all of, but shall not be limited to, the following:

(1) Provide free or low-cost advisory services and technical assistance to entrepreneurs and startups.

(2)  Facilitate community programming and engagement with local partners, including, but not limited to, state universities and research institutes, state community colleges, local governments, state and federal service providers, private industry, workforce investment boards and agencies, small business and microenterprise development organizations, economic development organizations, and chambers of commerce.

(3) Facilitate partnerships between innovative startup businesses, research institutions, and venture capitalists or financial institutions.

(b)  The iHub2 shall, to the extent feasible, work in close collaboration with the activities of the office as its primary statewide partner.

(Amended by Stats. 2021, Ch. 74, Sec. 8. (SB 151) Effective July 12, 2021.)


The Inclusive Innovation Accelerator Account is hereby created within the California Economic Development Fund in the State Treasury. Subject to the approval of the Department of Finance, all moneys collected and received by the office or the Governor’s Office of Business and Economic Development on the office’s behalf for California Inclusive Innovation Initiatives from gifts, bequests, or donations shall be deposited in the Inclusive Innovation Accelerator Account. Notwithstanding Section 13340, the moneys in the account are continuously appropriated to the office to be used for California Inclusive Innovation Initiatives pursuant to the terms of the gift, bequest, or donation.

(Amended by Stats. 2021, Ch. 74, Sec. 9. (SB 151) Effective July 12, 2021.)

GOVGovernment Code - GOV6.2.