Bill Text: CA AB2664 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: University of California: innovation and entrepreneurship expansion.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2016-09-30 - Chaptered by Secretary of State - Chapter 862, Statutes of 2016. [AB2664 Detail]

Download: California-2015-AB2664-Amended.html

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BILL NUMBER: AB 2664	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 22, 2016
	AMENDED IN ASSEMBLY  APRIL 26, 2016
	AMENDED IN ASSEMBLY  MARCH 17, 2016

INTRODUCED BY   Assembly Member Irwin

                        FEBRUARY 19, 2016

   An act to add Chapter 14.5 (commencing with Section 92965) to Part
57 of Division 9 of Title 3 of the Education Code, relating to the
University of California.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2664, as amended, Irwin. University of California: innovation
and entrepreneurship expansion.
   Existing law establishes the University of California, under the
administration of the Regents of the University of California, as one
of the segments of public postsecondary education in this state. The
University of California comprises 10 campuses, which are located at
Berkeley, Davis, Irvine, Los Angeles, Merced, Riverside, San Diego,
San Francisco, Santa Barbara, and Santa  Cruz, and other
facilities operated by the university, including the Lawrence
Berkeley National Laboratory (LBNL).   Cruz. 
   This bill would require the University of California to 
expand the infrastructure necessary to increase innovation and
entrepreneurship activities across the state for the purpose of
creating economic development. The bill would specify that funds
appropriated for that purpose shall be used to fund innovation and
entrepreneurship programs as each of the university's campuses, the
LBNL, and in other areas of the state that may benefit from those
programs, but would require the university to determine the manner in
which the funding would be used, consistent with the bill's
provisions. In implementing these provisions, the bill would require
the university to consult with public and private stakeholders and to
design programs to enhance, not necessarily duplicate, the state's
network of innovation-based business development programs and
services.   make one-time expenditures for activities to
expand or accelerate economic development in the state in ways that
are aligned with other efforts to support   innovation and
entrepreneurship. The bill would identify a specific funding source
in the Budget Act of 2016 appropriated for that purpose and would
allocate $2,200,000 under that appropriation to each of 10 campuses
of the University of California. The bill would require the 
 regents to designate an external advisory board, as provided, to
encourage the effective use of these funds through planning and
oversight and would prohibit a campus from expending these funds
unless the external advisory body has certified that the chancellor
of that campus has made certain demonstrations, including, among
others, that funds will only be used for the costs of activities that
support the expansion or acceleration of economic development in the
state and that private funds that at least match the amount of state
funds will also be used on those activities.  The bill would
require the University of California to report to the Department of
Finance and the Legislature  annually on the use of the
funding provided for purposes of the bill, as specified. The bill
would make implementation of its provisions contingent on an
appropriation for its purposes in the annual Budget Act. 
 on or before November 30, 2017, on the specific activities at
each campus supported by these funds. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  With respect to innovation and entrepreneurship
 expansion at   by those connected to  the
University of California, the Legislature finds and declares all of
the following:
   (a) The State of California is well-positioned to harness the
power of the University of California's expertise to spur economic
development.
   (b) The University of California contributed to the 
foundational research breakthroughs that launched  
launch and growth of  some of California's strongest industries,
including aerospace, agriculture, biotechnology, computers and
semiconductors, telecommunications, and digital media.
   (c)  Research   Instruction and research
 at the University of California  continues to create
new inventions that will   can  be the genesis of
tomorrow's industries, companies, and commercial successes. 
   (d) Innovation and entrepreneurship at the University of
California create equitable economic development throughout
California.  
   (d) As a public institution of higher education, the University of
California is positioned to address challenges faced by
entrepreneurs--challenges that are particularly acute for groups such
as women and minorities who are typically underrepresented in
private incubators and accelerators. 
   (e) It is therefore the intent of the Legislature to provide 
one-time  funds  to establish or expand the 
 for new  infrastructure at each campus  and the
Lawrence Berkeley National Laboratory (LBNL) for purposes of
enhancing   to (1) enhance  the state's network of
programs and services that support innovators, entrepreneurs,
startups, investors, and industry and community partners  that
are locally based and committed to serving  in communities
 surrounding University of California campuses, the LBNL, and
across California.   across California and (2) generate
commitments of private funds for these activities in an amount at
least equal to the amount of state funds. 
  SEC. 2.  Chapter 14.5 (commencing with Section 92965) is added to
Part 57 of Division 9 of Title 3 of the Education Code, to read:
      CHAPTER 14.5.  INNOVATION AND ENTREPRENEURSHIP EXPANSION


   92965.  (a) With funds appropriated  for purposes of this
chapter,   in Item 6440-001-0001 of Section 2.00 of the
Budget Act of 2016,  the University of California shall 
increase innovation and entrepreneurship activities across the state
for the purpose of creating economic development.  
make one-time expenditures for activities to expand or accelerate
economic development in the state in ways that are aligned with other
efforts to   support innovation and entrepreneurship. 

   (b) The funds referenced in subdivision (a) shall be used to fund
innovation and entrepreneurship programs at each campus of the
University of California, the Lawrence Berkeley National Laboratory
(LBNL), and in other areas of the state that may benefit from these
programs.  
   (c) The manner in which the funds provided for purposes of this
chapter will be used shall be determined by the University of
California. These uses may include, but shall not necessarily be
limited to, the establishment of programs or projects and the
purchase of equipment to facilitate innovation-based economic
development in communities surrounding the 10 campuses of the
University of California, the LBNL, and other locations across
California for purposes such as any of the following: 

   (1) Providing business training and resources to reduce common
barriers to success for entrepreneurs and startup companies.
 
   (2) Offering subsidized work and laboratory space to startups for
prototype development, proof-of-concept research, or both. 

   (3) Providing proof-of-concept funding to increase the likelihood
that entrepreneurs and startup companies will attract venture or
corporate capital backing.  
   (4) Providing mentorship, including mentorship to individuals from
population groups who have historically been underrepresented in
science and innovation-based industries.  
   (5) Coordinating and aligning innovation functions at a campus of
the university or at the LBNL, and building relationships between the
university environment and successful, independent enterprises to
facilitate the rollout of products to the market and the public.
 
   (d) In implementing this chapter, the University of California
shall design programs to enhance, not necessarily duplicate, the
state's network of innovation-based business development programs and
services. The University of California shall also consult with
public and private stakeholders when implementing this chapter in
order to ensure programs authorized by this chapter strengthen the
state's entrepreneurial capacity and global competitiveness. This may
include new partnerships and initiatives with public and private
economic development entities, including, but not limited to, local
and regional economic development corporations, small business
development centers, business accelerators, and Innovation Hubs.
 
   (b) From the funds specified in subdivision (a), two million two
hundred thousand dollars ($2,200,000) shall be allocated to each of
the following campuses of the University of California:  
   (1) Berkeley.  
   (2) Davis.  
   (3) Irvine.  
   (4) Los Angeles.  
   (5) Merced.  
   (6) Riverside.  
   (7) San Diego.  
   (8) San Francisco.  
   (9) Santa Barbara.  
   (10) Santa Cruz.  
   (c) The Regents of the University of California shall designate an
external advisory body, whose members have demonstrated expertise in
innovation and entrepreneurship, to encourage the effective use of
the funds specified in subdivision (b) through planning and
oversight.  
   (d) A campus shall not expend the funds specified in subdivision
(b) until the external advisory body has certified that the
chancellor of the campus has demonstrated all of the following: 

   (1) That the funds will be used only for the costs of activities
that support the expansion or acceleration of economic development in
the state, such as any of the following benefits for entrepreneurs:
 
   (A) Business training.  
   (B) Mentorship.  
   (C) Proof-of-concept grants.  
   (D) Work space.  
   (E) Laboratory space.  
   (F) Equipment.  
   (2) That the funds will be spent only after the uses and
beneficiaries have been determined through a transparent, inclusive,
and fair process.  
   (3) That private funds will also be used for these activities,
with the intent that the amount of private funds will be at least
equal to the amount specified in subdivision (b).  
   (4) That any financial benefit that results from the use of these
funds, including any revenues generated with these funds be accounted
for and also used on these activities.  
   (5) That a credible plan has been developed to support any ongoing
activities beyond the one-time expenditures of these funds. 

   (e) The external advisory body shall notify the Director of
Finance and the Legislature, no fewer than 10 days before providing
certification pursuant to subdivision (d) of its intent to do so.
 
   (f) (1) On or before November 30, 2017, the Regents of the
University of California shall report to the Director of Finance and
the Legislature on the specific activities at each campus supported
by these funds.  
   (2) The report shall be submitted to the Legislature pursuant to
Section 9795 of the Government Code.  
   92966.  (a) The University of California shall report to the
Department of Finance and the Legislature annually on the use of the
funding provided for purposes of this chapter.
   (b) (1) The annual report shall include, at a minimum, all of the
following:
   (A) The number of businesses and entrepreneurs assisted.
   (B) The industry sectors of the businesses and entrepreneurs
assisted.
   (C) The cities in which the businesses and entrepreneurs assisted
are located. For businesses or entrepreneurs assisted in cities with
a population of less than 250,000, only the county shall be listed.
   (D) The number of total employees employed by the businesses and
entrepreneurs assisted at the time those businesses and entrepreneurs
were assisted, based on the following categories, whichever is the
most appropriate:
   (i) No employees.
   (ii) Five employees or fewer.
   (iii) Twenty employees or fewer.
   (iv) Under 50 employees.
   (v) Under 100 employees.
   (vi) Under 500 employees.
   (E) The number of jobs created and the number of jobs retained.
   (F) The amount of capital infusion, in both debt and equity,
obtained by businesses and entrepreneurs assisted.
   (2) Subparagraphs (D) to (F), inclusive, shall be reported on an
aggregated basis.
    (c) The annual report shall comply with Section 9795 of the
Government Code.  
   92967.  This chapter shall not be implemented unless funds are
appropriated for its purposes in the annual Budget Act.