Article 6.2. California Innovation Initiatives of California Government Code >> Division 3. >> Title 2. >> Part 2. >> Chapter 1.6. >> Article 6.2.
The Legislature finds and declares all of the following:
(a) Job creation through rapid technology commercialization is a
vital part of the state's economic well-being, as identified in a
January 2012 symposium held by the Brookings Institute.
(b) Innovation and tech-driven entrepreneurial activity coupled
with venture investment creates small business startups and
expansions at an accelerated rate, which leads to significant
employment opportunities that contribute to the state's financial
health and economic competitiveness.
(c) In order to maintain a healthy state economy and to aid
communities, entrepreneurship and technology-based small businesses
must be stimulated and supported.
(d) The Innovation Hubs (iHubs) are operated in California through
a cooperative agreement between the Governor's Office of Business
and Economic Development (GO-Biz) and geographically distinct
regions, all of which are partnered with public universities,
community college districts, local governments, research
institutions, industry, angel and venture capital networks, and
traditional financial institutions. The iHubs are California's
premier resource for facilitating the success of entrepreneurial and
small technology startups that can grow California's economy by
assisting business owners in creating and retaining jobs, increasing
sales and profits, securing business financing, and creating a
successful new business climate in the state.
(e) The iHubs' economic impact in fostering entrepreneurial
business activity leads to job creation and an innovation in the
economy by establishing a formal partnership between the office and
the iHub program.
(f) It is necessary to establish a fund that would enable the
office to obtain funding from private sources, for appropriation to
state designated iHubs, iHub partner organizations, and within state
iHub-designated regions for the purpose of establishing, promoting,
and enhancing California's innovation and entrepreneurship ecosystem.
(a) The California Innovation Hub Program is hereby
created within the office.
(b) The office shall designate Innovation Hubs within the state to
stimulate partnerships, economic development, and job creation by
leveraging assets to provide an innovation platform for startup
businesses, 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 iHub.
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 GO-Biz. 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) "Innovation Hub" or "iHub" 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.
(c) "iHub coordinator" means the individual or entity agreed to by
the iHub partnership that is responsible for all of the following:
(1) Implementing the objectives of the iHub.
(2) Serving as the primary agent responsible for coordinating
services and resources and maintaining the iHub partnership.
(3) Serving as the primary liaison to the state and the office.
(a) The office shall issue a request for proposals for the
California 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 iHub
partnership.
(3) A designated iHub coordinator.
(4) A clear explanation and map conveying the iHub's physical
boundary.
(5) A clearly stated designee to coordinate iHub 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 iHub 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 iHub assets and resources.
(13) A clearly articulated focus area of the iHub including
industry sectors 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 iHub.
(16) Expectations for job development and business creation.
(17) Defined performance standards agreed upon by the partners
involved in the development of the iHub.
(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 iHub for a term of not more than
five years. An iHub may reapply for a designation without limitation
on the number of times.
(e) (1) The iHub 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 designated by the office before January 1, 2014,
the iHub partnership shall have until September 1, 2014, to enter
into a memorandum of understanding with the office that meets the
requirements of this article.
(f) More than one iHub may be designated in an area to the extent
that there is a clear distinction between the focus area of each
iHub.
(g) The office shall set guidelines for approval, designation,
operation, reporting, redesignation, and dedesignation of iHubs.
(h) An iHub shall annually report to the office on its progress in
meeting the goals and performance standards as described in the iHUB
application and implementing memorandum of understanding with the
office. The office shall annually post the information from these
reports on the office Internet Web site and provide notice to the
Governor and relevant policy committees of the Legislature that the
information is available on the Internet Web site.
A designated iHub 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.
Before an official designation as an iHub, the applicant
shall self-certify both of the following:
(a) That the iHub will comply with the state's nondiscrimination
policy.
(b) That the iHub 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.
(a) An iHub may do all of, but shall not be limited to,
the following:
(1) Provide counseling and technical assistance, either by direct
or indirect services, in the areas of entrepreneurial business
planning and management, financing, and marketing for small
businesses.
(2) Provide expert advice to entrepreneurs on starting a business,
including legal requirements for starting a business and access to
financing opportunities.
(3) Conduct business workshops, seminars, and conferences with
local partners including, but not limited to, state universities,
state community colleges, local governments, state and federal
service providers, private industry, workforce investment boards and
agencies, small business development centers, microenterprise
development organizations, small business service agencies, economic
development organizations, and chambers of commerce.
(4) Facilitate partnerships between innovative startup businesses,
research institutions, and venture capitalists or financial
institutions.
(b) The iHubs shall, to the extent feasible, do all of the
following:
(1) Work in close collaboration with the activities of the office
as its primary statewide partner.
(2) Coordinate activities with the Employment Training Panel, the
California Workforce Investment Board, the Office of the Chancellor
of the California Community Colleges, the University of California,
the California State University, and other state economic and
workforce development programs.
The 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 Governor's Office of Business
and Economic Development for California Innovation Initiatives from
gifts, bequests, or donations shall be deposited in the Innovation
Accelerator Account. Notwithstanding Section 13340, the moneys in the
account are continuously appropriated to the office to be used for
California Innovation Initiatives pursuant to the terms of the gift,
bequest, or donation.