Amended  IN  Assembly  April 24, 2017
Amended  IN  Assembly  April 05, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 86

Introduced by Assembly Member Calderon
(Coauthor: Assembly Member Dababneh)

January 05, 2017

An act to add and repeal Article 7 (commencing with Section 12100.1) to of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, relating to state government.


LEGISLATIVE COUNSEL'S DIGEST


AB 86, as amended, Calderon. Entrepreneur-in-Residence Act of 2017. Government innovation fellows program.
Existing law establishes within the Governor’s office the Government Operations Agency, which consists of several state agencies, including the Department of General Services and the Department of Technology, and is governed by the Secretary of Government Operations.
This bill would require the Government Operations Agency to establish and administer the government innovation fellows program to identify opportunities to apply advanced skillsets and innovative practices in effective ways to improve the delivery of state governmental services through the selection and assignment of fellows within state agencies. The bill would require, prior to the selection and assignment of a fellow, and with existing resources, the office agency to consult with state agencies and private entities to obtain resources and administrative support for the program, including necessary equipment, and other related costs necessary for a fellow to complete an assigned project. The bill would make, among other things, selection and assignment of fellows contingent upon the receipt of sufficient funds, as determined by the agency, from private or other nongovernmental sources. The bill would require fellows to serve on a voluntary basis and for a term not to exceed 2 years and would prohibit fellows selected for the program from obtaining civil service status and supplanting the work of civil service employees of the state.

This bill would enact the Entrepreneur-in-Residence Act of 2017, which would establish the state entrepreneur-in-residence program within the Government Operations Agency for the purpose of utilizing the expertise of private sector entrepreneurs to help make state governmental activities and practices more streamlined and accessible. The program would authorize the Secretary of Government Operations to appoint a maximum of 10 persons each year to serve within a state agency as an entrepreneur-in-residence, with duties as established in the bill, on a voluntary basis. The bill would require the secretary to accept the first appointment applications for the position of an entrepreneur-in-residence on or before August 1, 2018, and to establish prescribed procedures for complying with the bill no later than May 1, 2018. The bill would also require, to the extent funding is available the secretary to establish a working group of entrepreneurs-in-residence to discuss best practices, experiences, obstacles, opportunities, and recommendations, and to report on the program to the Governor and the Assembly Committee on Jobs, Economic Development, and the Economy, as specified.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 The Legislature finds and declares the following:
(a) California is home to some of the most innovative and resourceful entrepreneurs in the world, making it the nation’s leader in technology and related industries.
(b) The state should harness this innovation and leverage it to provide the best possible customer service to all of its citizens in the most cost-effective, efficient, and creative manner.
(c) Creativity and efficiency should not be limited to the private sector, but rather should be embraced and developed to further the public interest.
(d) Allowing the most creative private sector professionals to volunteer their time and expertise to make government work better and be more streamlined for its citizens would permit the state to utilize this creativity for the benefit of all its citizens.
(e) Establishing a professionals in public service program within a California state agency would permit implementation of a model that has been applied successfully by a variety of public and private entities and has proven to be a useful tool to help various processes become more efficient.

SEC. 2.

 Article 7 (commencing with Section 12100.1) is added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, to read:
Article  7. Government Innovation Fellows Program

12100.1.
 As used in this article, the following terms shall have the following meanings:
(a) “Agency” means any state agency, department, board, or commission.
(b) “Fellow” means an individual assigned to a project pursuant to the program.
(c) “Office” means the Government Operations Agency.
(d) “Program” means the government innovation fellows program, as established by this article.

12100.2.
 (a) The office shall establish and administer the government innovation fellows program to identify opportunities to apply advanced skillsets and innovative practices in effective ways to improve the delivery of state governmental services, including services to small businesses, through the selection and assignment of fellows to work in state agencies. Prior to the selection and assignment of a fellow, and with existing resources, the office shall consult with state agencies and private entities to obtain resources and administrative support for the program, including necessary equipment, and other related costs necessary for a fellow to complete an assigned project. Contingent upon the receipt of sufficient funds, as determined by the office, from private or other nongovernmental sources, the office shall do the following:
(1) Adopt appropriate procedures for the selection of fellows for a term not to exceed two years and the assignment of fellows to short-term projects that do not exceed two years and are designed to achieve a particular outcome described in subdivision (f).
(2) Consider requests from a state agency for the assignment of a fellow to that state agency.
(3) Select and assign fellows after adoption of the procedures described in paragraph (1). It is the intent of the Legislature for the first fellow applications to be accepted on or before August 1, 2018, and then accepted on an ongoing basis.
(b) The office may enter into agreements for the funding of the program with fellowship entities, governmental entities, or industry partners.
(c) A fellow selected for the program shall serve on a voluntary basis and shall not obtain civil service status nor supplant the work of civil service employees of the state. A fellow shall dedicate at least 16 hours per week to the assignment, unless a greater number of hours per week is agreed upon. A break in service shall be allowed based upon mutual agreement.
(d) After the establishment of the program, the office may consult with representatives of industry, academia, and nonprofit organizations to continually identify opportunities to apply advanced skillsets and innovative practices in effective ways to improve state government and the delivery of state governmental services.
(e) It is the intent of the Legislature to encourage state agencies to do all of the following:
(1) Work with the office to identify short-term projects for fellows to work on that will have a positive effect in accomplishing the mission of the project and for population to be served.
(2) Ensure that each fellow will work closely with senior officials of the state agency for the duration of the assignment.
(3) At the discretion of the head of the agency, provide a fellow with access to an office, computer, and other related support services and equipment that the agency determines is necessary for the fellow to discharge his or her duties.
(f) The office shall consider the following as successful outcomes of the program:
(1) Improving government performance and delivery of services.
(2) Modernizing government processes.
(3) Introducing new ideas and techniques to the public sector.
(4) Increasing state organizational capacity, both in terms of technical skills and ability to engage change.
(5) Making state programs simpler, easier to access, more efficient, and more responsive to the needs and concerns of small businesses and entrepreneurs.
(g) The office shall prepare a report on the program’s ability to achieve successful outcomes and other benefits of the program and submit the report to the Legislature on or before December 31, 2019, and again on or before December 31, 2020. A report to be submitted pursuant to this section shall be submitted in compliance with Section 9795.

12100.3.
 This article shall remain in effect only until January 1, 2021, and as of that date is repealed.

SEC. 2.Article 7 (commencing with Section 12100.1) is added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, to read:
7.Entrepreneur-in-Residence Act of 2017
12100.1.

This article shall be known and may be cited as the Entrepreneur-in-Residence Act of 2017.

12100.2.

As used in this article, the following terms shall have the following meanings:

(a)“Agency” means any state agency, department, or commission.

(b)“Entrepreneur-in-residence” means an individual appointed to a position under the program.

(c)“Office” means the Government Operations Agency.

(d)“Program” means the entrepreneur-in-residence program, as established by this article.

(e)“Secretary” means the Secretary of the Government Operations Agency, or his or her designee.

12100.3.

(a)The state entrepreneur-in-residence program is hereby established within the office for the purpose of utilizing the expertise of private-sector entrepreneurs to help make state governmental activities and practices more streamlined and accessible.

(b)(1)The secretary may appoint one or more entrepreneurs-in-residence under the program during each year; however, the secretary shall not appoint more than 10 entrepreneurs-in-residence during any calendar year. The secretary, with the approval of the state agency, may appoint an entrepreneur-in-residence to any state agency.

(2)Any person appointed as an entrepreneur-in-residence shall meet at least one of the following qualifications:

(A)The individual shall have demonstrated success in working with California small businesses and entrepreneurs.

(B)The individual shall have successfully developed, invented, or created a product and brought the product to the marketplace.

(3)Any person appointed as an entrepreneur-in-residence shall not have a conflict of interest with the activities of the state agency where he or she is placed, including, but not limited to, having any existing business before the state agency in which he or she is proposed to be placed or is placed.

(c)The secretary shall establish procedures for complying with this article no later than May 1, 2018. Among other requirements, the procedures shall include the following:

(1)A process for engaging with and receiving approval from state agencies about prospective appointments.

(2)A process for screening prospective appointees, including checking background and references.

(3)A standard memorandum of understanding that stipulates the responsibilities of each party in undertaking an entrepreneurship-in-residence under the program, including, but not limited to, hours, duties, goals, expected outcomes, agency support, and office participation. This standard memorandum of understanding shall be a model that shall be adapted to address each individual placement to create the memorandum of understanding into which the appointee, the agency, and the office enter.

(d)(1)The secretary shall accept the first appointment applications for the entrepreneur-in-residence position on or before August 1, 2018. Applications shall then be accepted on an ongoing basis.

(2)As a condition of having a placement of an entrepreneur-in-residence, the state agency shall agree to the procedures set by the secretary pursuant to subdivision (c).

(e)Before the effective date of an appointment under this article, every individual selected to participate in the program shall have entered into a memorandum of understanding with the secretary and the head of the state agency where the entrepreneur will serve. The memorandum of understanding shall be specific to the placement and clearly identify the hours, duties, goals, expected outcomes, agency support, and office participation. The memorandum of understanding shall set the benchmarks and metrics for evaluating the success of the placement.

(f)In administering the entrepreneur-in-residence program, the secretary shall appoint entrepreneurs-in-residence in a variety of interested agencies. However, to the extent practicable, the secretary shall not appoint more than two entrepreneurs-in-residence to positions in the same agency during the same year.

(g)An entrepreneur-in-residence may serve as an entrepreneur-in-residence for no longer than two years under the memorandum of understanding described in subdivision (e).

12100.4.

(a)An entrepreneur-in-residence shall have all of the following duties:

(1)Providing recommendations to the head of the state agency the entrepreneur-in-residence serves on how to streamline, eliminate, or modify potentially inefficient or duplicative activities, processes, and programs, if any, at the state agency.

(2)Providing recommendations to the head of the state agency the entrepreneur-in-residence serves on methods to improve program efficiency at the state agency or new initiatives, if any, that may be instituted at the state agency to address the needs of small businesses and entrepreneurs.

(3)Assisting the state agency the entrepreneur-in-residence serves in improving outreach and service to small business concerns and entrepreneurs including, but not limited to, the following:

(A)Facilitating meetings and forums to educate small businesses and entrepreneurs on programs or initiatives of the state agency the entrepreneur-in-residence is serving.

(B)Facilitating in-service sessions with employees of the office and the state agency the entrepreneur-in-residence is serving on issues of concern to entrepreneurs and small businesses.

(C)Providing technical assistance or mentorship to small businesses and entrepreneurs in accessing programs at the office and the state agency the entrepreneur-in-residence is serving.

(b)An entrepreneur-in-residence shall serve on a voluntary basis, and shall dedicate at least 16 hours per week to the program, unless a greater number of hours per week is otherwise agreed upon. Breaks in service shall be allowed for up to two months without having to reapply, based upon a mutual agreement among the agency, office, and entrepreneur-in-residence. At the discretion of the head of a participating state agency, the entrepreneur-in-residence shall have access to an office, computer, and other related support services and equipment from the participating state agency as the state agency determines to be necessary for the entrepreneur-in-residence to discharge his or her duties.

(c)An entrepreneur-in-residence shall report directly to the head of the state agency in which the entrepreneur-in-residence is serving and shall also keep the secretary of the office updated on his or her activities, findings, and recommendations.

12100.5.

(a)To the extent funding is available, the secretary shall establish a working group of entrepreneurs-in-residence to discuss best practices, experiences, obstacles, opportunities, and recommendations.

(b)(1)The secretary shall annually prepare and submit to the Governor and the Assembly Committee on Jobs, Economic Development, and the Economy a report on the program. The report, at a minimum, shall include the following:

(A)A progress report on the activities of each entrepreneur-in-residence during the reporting period, based on the applicable memorandum of understanding.

(B)A general summary on how the overall program is addressing the goals of the program, which are as follows:

(i)Making state programs simpler, easier to access, more efficient, and more responsive to the needs and concerns of small businesses and entrepreneurs.

(ii)Providing for better outreach by the state to the private sector.

(iii)Strengthening coordination and interaction between the state and the private sector on issues relevant to entrepreneurs and small business concerns.

(2)The requirement for submitting a report imposed under paragraph (1) of this subdivision is inoperative three years following the final appointment of an entrepreneur-in-residence or January 1, 2022, whichever is later, pursuant to Section 10231.5.

(3)It is anticipated that program impacts will not be fully measurable until recommended changes and activities are fully implemented. The office and the agency where an entrepreneur-in-residence is placed shall continue measuring and reporting the impact of the activities of the entrepreneur-in-residence for three years following the placement of an entrepreneur-in-residence.