California Assembly Bill AB2664 Amended / Bill

 BILL NUMBER: AB 2664AMENDED BILL TEXT 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, and making an appropriation therefor.   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.   Laboratory (LBNL).  This bill would provide funding to   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  provided under the bill could be used by the University of California.   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.  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.   bill, as specified. The bill would make implementation of its provisions contingent on an appropriation for its purposes in the annual Budget Act.   The bill would appropriate $66,000,000 from the General Fund to the Regents of the University of California for allocation, for purposes of the bill, in equal amounts in the 3 fiscal years from 2017-18 to 2019-20, inclusive. Vote:  2/3   majority  . Appropriation:  yes   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 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 some of California's strongest industries, including aerospace, agriculture, biotechnology, computers and semiconductors, telecommunications, and digital media. (c) Research at the University of California continues to create new inventions that will 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. (e) It is therefore the intent of the Legislature to provide funds to establish or expand the infrastructure at each campus and the Lawrence Berkeley National Laboratory (LBNL)  to expand infrastructure necessary to build a network of   for purposes of enhancing the state's network   of programs and services that support  innovators, entrepreneurs, startups, investors, and industry and community partners  to spur innovation and economic development  in communities surrounding University of California campuses, the LBNL, and across California. 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)  Moneys to be appropriated for this chapter shall be used by   With funds appropriated for purposes of this chapter,  the University of California  to expand the infrastructure necessary to   shall  increase innovation and entrepreneurship  activities across the state  for the purpose of creating economic development. (b) The funds referenced in subdivision (a) shall be used to fund innovation and entrepreneurship programs at each campus of the University of  California and   California,  the Lawrence Berkeley National Laboratory  (LBNL).   (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 to the underrepresented interested in entrepreneurial pursuits.   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.  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.  This   (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.   SEC. 3.   The sum of sixty-six million dollars ($66,000,000) is appropriated from the General Fund to the Regents of the University of California for allocation, for purposes of Chapter 14.5 (commencing with Section 92965) of Part 57 of Division 9 of Title 3 of the Education Code, in accordance with the following schedule: (a) Twenty-two million dollars ($22,000,000) for expenditure for the 2017-18 fiscal year. (b) Twenty-two million dollars ($22,000,000) for expenditure for the 2018-19 fiscal year. (c) Twenty-two million dollars ($22,000,000) for expenditure for the 2019-20 fiscal year.