State Codes and Statutes

Statutes > California > Gov > 13994-13994.12

GOVERNMENT CODE
SECTION 13994-13994.12



13994.  Unless the context otherwise requires, the definitions in
this section govern the construction of this chapter.
   (a) "Agency" means the Business, Transportation and Housing
Agency.
   (b) "California-based foundation" means an organization defined in
the Internal Revenue Code as a private foundation, which is
incorporated in, and primarily conducts its activities within, the
state and receives funding in whole or in substantial part from
California-based companies.
   (c) "Collaborative research" means technological or scientific
research that accelerates existing research toward the
commercialization of products, processes, and services, and is
conducted jointly or funded jointly by some or all of the following:
   (1) The private sector, including intraindustry groups,
California-based private foundations, industry associations, and
nonprofit cooperative associations.
   (2) The federal government.
   (3) The state.
   (4) Public or private universities, colleges, and laboratories.
   (d) "Consortia" means jointly funded or jointly operated nonprofit
independent research and development organizations. "Consortia
development" means the establishment of consortia to manage and fund
a variety of technology transfer projects within a specific
technology or industry priority.
   (e) "Industry association" is a nonprofit organization with a
substantial presence in California whose membership consists in whole
or in part of California-based companies, and whose funding is
derived in whole or in part from California-based companies.
   (f) "Information technology" includes, but is not limited to, all
electronic technology systems and services, automated information
handling, system design and analysis, conversion of data, computer
programming, information storage and retrieval, telecommunications
that include voice, video, and data communications, requisite system
controls, simulation, electronic commerce, and all related
interactions between people and machines.
   (g) "Nonprofit cooperative association" means an association,
organized and operating pursuant to either Chapter 1 (commencing with
Section 54001) of Division 20 of the Food and Agricultural Code or
Part 2 (commencing with Section 12200) of Division 3 of Title 1 of
the Corporations Code.
   (h) "Technology" includes, but is not limited to, the application
of science and engineering to research and development, especially
for industrial or commercial objectives, in sectors that include
telecommunications, information technologies, electronics,
biochemistry, medicine, agriculture, transportation, space, and
aerospace.
   (i) "Technology transfer" means the movement of the results of
basic or applied technological or scientific research to the design,
development, and production of new or improved products, services, or
processes.


13994.1.  (a) (1) There is within the agency the Regional Technology
Alliance Program. The intent of the regional technology alliances is
to decentralize the delivery of services and resources, programs and
activities for technology development, commercialization,
application, and competitiveness at a regional level.
   (2) The agency may designate new regional technology alliances
upon application to carry out activities described in this section.
   (3) The agency may establish criteria for designation that
includes, but need not be limited to, criteria previously established
by the Defense Conversion Council pursuant to Article 3.7
(commencing with Section 15346) of Chapter 1, as it read on December
31, 1998.
   (b) Each alliance shall perform the following activities:
   (1) Raise and leverage funds from multiple public and private
sources to support technology development, commercialization, and
application and industry competitiveness particularly in response to
defense industry conversion and diversification.
   (2) Assist in the formation of new businesses.
   (3) Maintain an electronic network and access to databases that
encourages business ventures.
   (4) Coordinate with activities and efforts of industry, academia,
federal laboratories, and governments.
   (5) Recommend administrative actions or programs that could assist
California's defense-dependent industries to successfully convert to
commercial markets.
   (6) Provide information about state and federal defense conversion
programs, including, but not limited to, job training, economic
development, industrial modernization, dual-use technology, new
management techniques, and technology development and transfer.
   (7) Identify emerging industries that may include commercial space
applications, transportation, environment, high performance
computing and communications, biotechnology and advanced materials,
and processing and critical existing industries.
   (c) Each alliance may also perform, but need not be limited to,
the following activities:
   (1) Assist in identifying businesses that could benefit from
defense conversion programs and defense-dislocated workers who
require employment and training opportunities.
   (2) Assist and provide coordination in determining job
opportunities within and outside of the defense industry for which
displaced workers could be retrained and placed.
   (3) Serve as a forum for industrywide networking linking
producers, suppliers, and consumers.
   (4) Assist individual businesses and industry consortia in
applying for state and federal defense conversion program funds.
   (5) Provide information and assistance in upgrading individual
businesses and industrywide production and management processes.
   (6) Provide information on available state and federal resources
to aid businesses and workers affected by defense spending
reductions, base closures, plant closures, and layoffs, to foster
long-term economic vitality, industrial growth, and job
opportunities.
   (d) Each alliance is encouraged to develop activities that achieve
the following results:
   (1) Creation and retention of jobs.
   (2) Creation of new businesses.
   (3) Development of new commercial or dual-use products.
   (4) Establishment of industry partnerships and consortia.
   (5) Demonstration of productivity enhancement such as return on
investment, reduced cost, employee training, and upgrades.
   (6) Establishment of public and private partnerships.
   (7) Commitment of industry support, participation, and capital.
   (8) Leverage of state funds.
   (9) Loan repayment ratio.
   (10) Participation of small businesses and minority-, women-, and
disabled veteran-owned businesses.
   (11) Workforce training.
   (e) The agency shall be authorized to enter into a contract for
services with any alliance to provide services to the office. These
contracts shall be sole source contracts, and exempt from the
competitive bid process.
   (f) During the first two years following selection of an alliance,
the alliance shall monitor the performance of any application funded
pursuant to Section 13994.2, and each invoice for payment shall be
reviewed and approved by the alliance, but the contract for services
shall be directly between the agency and the entity receiving grant
funding. Commencing with the third year of designation, any alliance
with procedures and processes approved by the agency shall be
authorized to directly contract with grant recipients. The agency
shall audit these grants on a regular basis.



13994.2.  (a) There is within the agency the Challenge Grant
Program, consisting of technology transfer grants and defense
industry conversion and diversification grants. Challenge grant
projects funded shall include, but not be limited to, the following:
defense industry conversion and diversification, access to ongoing
research and research findings, exchange or transfer of personnel and
research support services, including capital outlay, consortia
development, and collaborative research.
   (b) All funds appropriated or received by the Challenge Grant
Program shall administratively be divided into either the Technology
Transfer Grant Program or the Defense Industry Conversion and
Diversification Program. Funding awards for the Technology Transfer
Grant Program shall be made pursuant to the requirements set forth in
Sections 13994.3 and 13994.6.
   (c) The agency shall award grants based upon a competitive
application process addressing the project's eligibility and ability
to fulfill the goals of the program.
   (d) The agency shall report on this program to the Governor and
the Legislature.


13994.3.  (a) An eligible technology transfer or defense industry
conversion and diversification project shall, at least, do all of the
following:
   (1) Identify the sources of funding for the entire project.
   (2) Not supplant other funding.
   (3) Demonstrate that a significant portion of the project will be
undertaken in California.
   (b) In addition to the requirements contained in subdivision (a),
a defense industry conversion and diversification project shall not
receive more than 25 percent of the total project costs requested in
the proposal.
   (c) In addition to the requirements contained in subdivision (a),
a technology transfer project shall:
   (1) Represent a technology or industry, or both, targeted in the
application.
   (2) Include a significant amount of matching contributions from
either of the following:
   (A) A private sector company or companies.
   (B) A California-based foundation or foundations, an industry
association or associations, or a nonprofit cooperative association
or associations.
   (3) Include either of the following:
   (A) A private sector company or companies that have significant
operations in the state.
   (B) A California-based foundation or foundations, an industry
association or associations, or a nonprofit cooperative association
or associations.



13994.4.  The technology transfer grantee shall not incur expenses
to be paid with grant funds without evidence of a workable agreement
between the parties participating in the project that includes at
least both of the following:
   (a) A resolution of the intellectual property rights relative to
the project.
   (b) A direct and ongoing involvement of the public and private
sectors, when applicable in the project.



13994.5.  (a) In awarding technology transfer grants, the agency
shall consider the following:
   (1) The likelihood of commercialization of a product, service, or
process.
   (2) The potential impact on the state's economy.
   (3) The cost-effectiveness of the project.
   (4) The importance of state funding for the viability of the
project.
   (5) Cost sharing by other participants.
   (6) The involvement of small businesses and minority-, disabled
veteran-, and women-owned businesses.
   (7) Projects that will result in a prototype by the end of the
grant period.
   (8) Other criteria that the agency determines are consistent with
the purposes of the program.
   (b) The agency shall target industries and technologies with a
potential for enhancing the California economy, and shall fund
projects within those industries and utilizing those technologies.



13994.6.  Technology transfer projects may include reasonable
overhead costs incurred by a research institute and related to the
project that shall not exceed the allowable federal overhead costs
for research. All other projects may include any costs authorized by
the principal funding agency, and not precluded by state
requirements.



13994.7.  Except for defense industry conversion and diversification
projects, only a public agency or a not-for-profit or nonprofit
organization shall receive funds under this chapter. Any person or
entity is authorized to receive a defense industry conversion and
diversification grant.



13994.8.  (a) The agency may obtain scientific and technological
expertise as needed to provide advice and input on the program, the
establishment of targeted technologies and industries, the review of
grant applications, and the review of project performance.
   (b) The agency may award funds over a multiyear period to a
grantee without requiring the grantee to reapply, so long as the
funds in multiple years are utilized for the same project originally
funded.


13994.9.  (a) Notwithstanding Sections 13994.2, 13994.3, 13994.4,
and 13994.5, and the regulations implementing this chapter, the
secretary may award discretionary technology transfer grants totaling
not more than 5 percent or one hundred thousand dollars ($100,000),
whichever is greater, of the funds appropriated each year for this
program.
   (b) Notwithstanding Sections 13994.2, 13994.3, 13994.4, 13994.5,
and subdivision (a) of this section, the secretary may award up to 15
percent of the funds appropriated for a given fiscal year for
consortia development projects that do not have private sector match
but will have private sector match within six months from the date of
the award of funding. For purposes of this subdivision, "private
sector match" means a cash or in-kind contribution available for
expenditure or use to a consortium development project. If, after six
months, no private sector match is available, funding under the
program shall cease and all moneys previously received shall be
returned to the state.


13994.10.  (a) In order to carry out this chapter, there is hereby
created in the State Treasury the California Competitive Technology
Fund.
   (b) The fund shall receive state funds appropriated to it,
contributions from nonstate sources, reimbursements, federal funds,
and interest that accrues to the moneys in the fund pursuant to
subdivision (c).
   (c) The Treasurer shall invest moneys contained in the fund not
needed to meet current obligations in the same manner as other public
funds are invested.
   (d) Notwithstanding Section 13340, all moneys in the fund are
continuously appropriated without regard to fiscal years to the
agency for the purposes of this chapter, and for the purposes for
which moneys were provided. Except for state funds appropriated to,
or transferred into, the fund for local assistance, moneys in the
fund, including all interest, may be spent for support.




13994.11.  The agency shall report on this program to the Governor
and the Legislature.



13994.12.  There is hereby established within the agency the
Technology Planning Program. The program shall provide grants and
technical assistance to California nonprofit organizations and public
entities working within specific industries to identify conversion
or expansion projects. Grants may be awarded in the areas of
strategic planning and strategic alliances. The program shall award
grants based upon a competitive application process addressing the
project's eligibility, a review of the proposal's scientific and
technological aspects, and ability to fulfill goals of the program.
Priority shall be given to those projects with the identified support
of industry representatives, matching funding, projects likely to
receive federal funds requiring matching funds, and any other
criteria determined by the agency. A project example is a joint
effort to develop and commercialize defense-related technologies by
federal laboratories, universities, and companies in close
geographical proximity.

State Codes and Statutes

Statutes > California > Gov > 13994-13994.12

GOVERNMENT CODE
SECTION 13994-13994.12



13994.  Unless the context otherwise requires, the definitions in
this section govern the construction of this chapter.
   (a) "Agency" means the Business, Transportation and Housing
Agency.
   (b) "California-based foundation" means an organization defined in
the Internal Revenue Code as a private foundation, which is
incorporated in, and primarily conducts its activities within, the
state and receives funding in whole or in substantial part from
California-based companies.
   (c) "Collaborative research" means technological or scientific
research that accelerates existing research toward the
commercialization of products, processes, and services, and is
conducted jointly or funded jointly by some or all of the following:
   (1) The private sector, including intraindustry groups,
California-based private foundations, industry associations, and
nonprofit cooperative associations.
   (2) The federal government.
   (3) The state.
   (4) Public or private universities, colleges, and laboratories.
   (d) "Consortia" means jointly funded or jointly operated nonprofit
independent research and development organizations. "Consortia
development" means the establishment of consortia to manage and fund
a variety of technology transfer projects within a specific
technology or industry priority.
   (e) "Industry association" is a nonprofit organization with a
substantial presence in California whose membership consists in whole
or in part of California-based companies, and whose funding is
derived in whole or in part from California-based companies.
   (f) "Information technology" includes, but is not limited to, all
electronic technology systems and services, automated information
handling, system design and analysis, conversion of data, computer
programming, information storage and retrieval, telecommunications
that include voice, video, and data communications, requisite system
controls, simulation, electronic commerce, and all related
interactions between people and machines.
   (g) "Nonprofit cooperative association" means an association,
organized and operating pursuant to either Chapter 1 (commencing with
Section 54001) of Division 20 of the Food and Agricultural Code or
Part 2 (commencing with Section 12200) of Division 3 of Title 1 of
the Corporations Code.
   (h) "Technology" includes, but is not limited to, the application
of science and engineering to research and development, especially
for industrial or commercial objectives, in sectors that include
telecommunications, information technologies, electronics,
biochemistry, medicine, agriculture, transportation, space, and
aerospace.
   (i) "Technology transfer" means the movement of the results of
basic or applied technological or scientific research to the design,
development, and production of new or improved products, services, or
processes.


13994.1.  (a) (1) There is within the agency the Regional Technology
Alliance Program. The intent of the regional technology alliances is
to decentralize the delivery of services and resources, programs and
activities for technology development, commercialization,
application, and competitiveness at a regional level.
   (2) The agency may designate new regional technology alliances
upon application to carry out activities described in this section.
   (3) The agency may establish criteria for designation that
includes, but need not be limited to, criteria previously established
by the Defense Conversion Council pursuant to Article 3.7
(commencing with Section 15346) of Chapter 1, as it read on December
31, 1998.
   (b) Each alliance shall perform the following activities:
   (1) Raise and leverage funds from multiple public and private
sources to support technology development, commercialization, and
application and industry competitiveness particularly in response to
defense industry conversion and diversification.
   (2) Assist in the formation of new businesses.
   (3) Maintain an electronic network and access to databases that
encourages business ventures.
   (4) Coordinate with activities and efforts of industry, academia,
federal laboratories, and governments.
   (5) Recommend administrative actions or programs that could assist
California's defense-dependent industries to successfully convert to
commercial markets.
   (6) Provide information about state and federal defense conversion
programs, including, but not limited to, job training, economic
development, industrial modernization, dual-use technology, new
management techniques, and technology development and transfer.
   (7) Identify emerging industries that may include commercial space
applications, transportation, environment, high performance
computing and communications, biotechnology and advanced materials,
and processing and critical existing industries.
   (c) Each alliance may also perform, but need not be limited to,
the following activities:
   (1) Assist in identifying businesses that could benefit from
defense conversion programs and defense-dislocated workers who
require employment and training opportunities.
   (2) Assist and provide coordination in determining job
opportunities within and outside of the defense industry for which
displaced workers could be retrained and placed.
   (3) Serve as a forum for industrywide networking linking
producers, suppliers, and consumers.
   (4) Assist individual businesses and industry consortia in
applying for state and federal defense conversion program funds.
   (5) Provide information and assistance in upgrading individual
businesses and industrywide production and management processes.
   (6) Provide information on available state and federal resources
to aid businesses and workers affected by defense spending
reductions, base closures, plant closures, and layoffs, to foster
long-term economic vitality, industrial growth, and job
opportunities.
   (d) Each alliance is encouraged to develop activities that achieve
the following results:
   (1) Creation and retention of jobs.
   (2) Creation of new businesses.
   (3) Development of new commercial or dual-use products.
   (4) Establishment of industry partnerships and consortia.
   (5) Demonstration of productivity enhancement such as return on
investment, reduced cost, employee training, and upgrades.
   (6) Establishment of public and private partnerships.
   (7) Commitment of industry support, participation, and capital.
   (8) Leverage of state funds.
   (9) Loan repayment ratio.
   (10) Participation of small businesses and minority-, women-, and
disabled veteran-owned businesses.
   (11) Workforce training.
   (e) The agency shall be authorized to enter into a contract for
services with any alliance to provide services to the office. These
contracts shall be sole source contracts, and exempt from the
competitive bid process.
   (f) During the first two years following selection of an alliance,
the alliance shall monitor the performance of any application funded
pursuant to Section 13994.2, and each invoice for payment shall be
reviewed and approved by the alliance, but the contract for services
shall be directly between the agency and the entity receiving grant
funding. Commencing with the third year of designation, any alliance
with procedures and processes approved by the agency shall be
authorized to directly contract with grant recipients. The agency
shall audit these grants on a regular basis.



13994.2.  (a) There is within the agency the Challenge Grant
Program, consisting of technology transfer grants and defense
industry conversion and diversification grants. Challenge grant
projects funded shall include, but not be limited to, the following:
defense industry conversion and diversification, access to ongoing
research and research findings, exchange or transfer of personnel and
research support services, including capital outlay, consortia
development, and collaborative research.
   (b) All funds appropriated or received by the Challenge Grant
Program shall administratively be divided into either the Technology
Transfer Grant Program or the Defense Industry Conversion and
Diversification Program. Funding awards for the Technology Transfer
Grant Program shall be made pursuant to the requirements set forth in
Sections 13994.3 and 13994.6.
   (c) The agency shall award grants based upon a competitive
application process addressing the project's eligibility and ability
to fulfill the goals of the program.
   (d) The agency shall report on this program to the Governor and
the Legislature.


13994.3.  (a) An eligible technology transfer or defense industry
conversion and diversification project shall, at least, do all of the
following:
   (1) Identify the sources of funding for the entire project.
   (2) Not supplant other funding.
   (3) Demonstrate that a significant portion of the project will be
undertaken in California.
   (b) In addition to the requirements contained in subdivision (a),
a defense industry conversion and diversification project shall not
receive more than 25 percent of the total project costs requested in
the proposal.
   (c) In addition to the requirements contained in subdivision (a),
a technology transfer project shall:
   (1) Represent a technology or industry, or both, targeted in the
application.
   (2) Include a significant amount of matching contributions from
either of the following:
   (A) A private sector company or companies.
   (B) A California-based foundation or foundations, an industry
association or associations, or a nonprofit cooperative association
or associations.
   (3) Include either of the following:
   (A) A private sector company or companies that have significant
operations in the state.
   (B) A California-based foundation or foundations, an industry
association or associations, or a nonprofit cooperative association
or associations.



13994.4.  The technology transfer grantee shall not incur expenses
to be paid with grant funds without evidence of a workable agreement
between the parties participating in the project that includes at
least both of the following:
   (a) A resolution of the intellectual property rights relative to
the project.
   (b) A direct and ongoing involvement of the public and private
sectors, when applicable in the project.



13994.5.  (a) In awarding technology transfer grants, the agency
shall consider the following:
   (1) The likelihood of commercialization of a product, service, or
process.
   (2) The potential impact on the state's economy.
   (3) The cost-effectiveness of the project.
   (4) The importance of state funding for the viability of the
project.
   (5) Cost sharing by other participants.
   (6) The involvement of small businesses and minority-, disabled
veteran-, and women-owned businesses.
   (7) Projects that will result in a prototype by the end of the
grant period.
   (8) Other criteria that the agency determines are consistent with
the purposes of the program.
   (b) The agency shall target industries and technologies with a
potential for enhancing the California economy, and shall fund
projects within those industries and utilizing those technologies.



13994.6.  Technology transfer projects may include reasonable
overhead costs incurred by a research institute and related to the
project that shall not exceed the allowable federal overhead costs
for research. All other projects may include any costs authorized by
the principal funding agency, and not precluded by state
requirements.



13994.7.  Except for defense industry conversion and diversification
projects, only a public agency or a not-for-profit or nonprofit
organization shall receive funds under this chapter. Any person or
entity is authorized to receive a defense industry conversion and
diversification grant.



13994.8.  (a) The agency may obtain scientific and technological
expertise as needed to provide advice and input on the program, the
establishment of targeted technologies and industries, the review of
grant applications, and the review of project performance.
   (b) The agency may award funds over a multiyear period to a
grantee without requiring the grantee to reapply, so long as the
funds in multiple years are utilized for the same project originally
funded.


13994.9.  (a) Notwithstanding Sections 13994.2, 13994.3, 13994.4,
and 13994.5, and the regulations implementing this chapter, the
secretary may award discretionary technology transfer grants totaling
not more than 5 percent or one hundred thousand dollars ($100,000),
whichever is greater, of the funds appropriated each year for this
program.
   (b) Notwithstanding Sections 13994.2, 13994.3, 13994.4, 13994.5,
and subdivision (a) of this section, the secretary may award up to 15
percent of the funds appropriated for a given fiscal year for
consortia development projects that do not have private sector match
but will have private sector match within six months from the date of
the award of funding. For purposes of this subdivision, "private
sector match" means a cash or in-kind contribution available for
expenditure or use to a consortium development project. If, after six
months, no private sector match is available, funding under the
program shall cease and all moneys previously received shall be
returned to the state.


13994.10.  (a) In order to carry out this chapter, there is hereby
created in the State Treasury the California Competitive Technology
Fund.
   (b) The fund shall receive state funds appropriated to it,
contributions from nonstate sources, reimbursements, federal funds,
and interest that accrues to the moneys in the fund pursuant to
subdivision (c).
   (c) The Treasurer shall invest moneys contained in the fund not
needed to meet current obligations in the same manner as other public
funds are invested.
   (d) Notwithstanding Section 13340, all moneys in the fund are
continuously appropriated without regard to fiscal years to the
agency for the purposes of this chapter, and for the purposes for
which moneys were provided. Except for state funds appropriated to,
or transferred into, the fund for local assistance, moneys in the
fund, including all interest, may be spent for support.




13994.11.  The agency shall report on this program to the Governor
and the Legislature.



13994.12.  There is hereby established within the agency the
Technology Planning Program. The program shall provide grants and
technical assistance to California nonprofit organizations and public
entities working within specific industries to identify conversion
or expansion projects. Grants may be awarded in the areas of
strategic planning and strategic alliances. The program shall award
grants based upon a competitive application process addressing the
project's eligibility, a review of the proposal's scientific and
technological aspects, and ability to fulfill goals of the program.
Priority shall be given to those projects with the identified support
of industry representatives, matching funding, projects likely to
receive federal funds requiring matching funds, and any other
criteria determined by the agency. A project example is a joint
effort to develop and commercialize defense-related technologies by
federal laboratories, universities, and companies in close
geographical proximity.


State Codes and Statutes

State Codes and Statutes

Statutes > California > Gov > 13994-13994.12

GOVERNMENT CODE
SECTION 13994-13994.12



13994.  Unless the context otherwise requires, the definitions in
this section govern the construction of this chapter.
   (a) "Agency" means the Business, Transportation and Housing
Agency.
   (b) "California-based foundation" means an organization defined in
the Internal Revenue Code as a private foundation, which is
incorporated in, and primarily conducts its activities within, the
state and receives funding in whole or in substantial part from
California-based companies.
   (c) "Collaborative research" means technological or scientific
research that accelerates existing research toward the
commercialization of products, processes, and services, and is
conducted jointly or funded jointly by some or all of the following:
   (1) The private sector, including intraindustry groups,
California-based private foundations, industry associations, and
nonprofit cooperative associations.
   (2) The federal government.
   (3) The state.
   (4) Public or private universities, colleges, and laboratories.
   (d) "Consortia" means jointly funded or jointly operated nonprofit
independent research and development organizations. "Consortia
development" means the establishment of consortia to manage and fund
a variety of technology transfer projects within a specific
technology or industry priority.
   (e) "Industry association" is a nonprofit organization with a
substantial presence in California whose membership consists in whole
or in part of California-based companies, and whose funding is
derived in whole or in part from California-based companies.
   (f) "Information technology" includes, but is not limited to, all
electronic technology systems and services, automated information
handling, system design and analysis, conversion of data, computer
programming, information storage and retrieval, telecommunications
that include voice, video, and data communications, requisite system
controls, simulation, electronic commerce, and all related
interactions between people and machines.
   (g) "Nonprofit cooperative association" means an association,
organized and operating pursuant to either Chapter 1 (commencing with
Section 54001) of Division 20 of the Food and Agricultural Code or
Part 2 (commencing with Section 12200) of Division 3 of Title 1 of
the Corporations Code.
   (h) "Technology" includes, but is not limited to, the application
of science and engineering to research and development, especially
for industrial or commercial objectives, in sectors that include
telecommunications, information technologies, electronics,
biochemistry, medicine, agriculture, transportation, space, and
aerospace.
   (i) "Technology transfer" means the movement of the results of
basic or applied technological or scientific research to the design,
development, and production of new or improved products, services, or
processes.


13994.1.  (a) (1) There is within the agency the Regional Technology
Alliance Program. The intent of the regional technology alliances is
to decentralize the delivery of services and resources, programs and
activities for technology development, commercialization,
application, and competitiveness at a regional level.
   (2) The agency may designate new regional technology alliances
upon application to carry out activities described in this section.
   (3) The agency may establish criteria for designation that
includes, but need not be limited to, criteria previously established
by the Defense Conversion Council pursuant to Article 3.7
(commencing with Section 15346) of Chapter 1, as it read on December
31, 1998.
   (b) Each alliance shall perform the following activities:
   (1) Raise and leverage funds from multiple public and private
sources to support technology development, commercialization, and
application and industry competitiveness particularly in response to
defense industry conversion and diversification.
   (2) Assist in the formation of new businesses.
   (3) Maintain an electronic network and access to databases that
encourages business ventures.
   (4) Coordinate with activities and efforts of industry, academia,
federal laboratories, and governments.
   (5) Recommend administrative actions or programs that could assist
California's defense-dependent industries to successfully convert to
commercial markets.
   (6) Provide information about state and federal defense conversion
programs, including, but not limited to, job training, economic
development, industrial modernization, dual-use technology, new
management techniques, and technology development and transfer.
   (7) Identify emerging industries that may include commercial space
applications, transportation, environment, high performance
computing and communications, biotechnology and advanced materials,
and processing and critical existing industries.
   (c) Each alliance may also perform, but need not be limited to,
the following activities:
   (1) Assist in identifying businesses that could benefit from
defense conversion programs and defense-dislocated workers who
require employment and training opportunities.
   (2) Assist and provide coordination in determining job
opportunities within and outside of the defense industry for which
displaced workers could be retrained and placed.
   (3) Serve as a forum for industrywide networking linking
producers, suppliers, and consumers.
   (4) Assist individual businesses and industry consortia in
applying for state and federal defense conversion program funds.
   (5) Provide information and assistance in upgrading individual
businesses and industrywide production and management processes.
   (6) Provide information on available state and federal resources
to aid businesses and workers affected by defense spending
reductions, base closures, plant closures, and layoffs, to foster
long-term economic vitality, industrial growth, and job
opportunities.
   (d) Each alliance is encouraged to develop activities that achieve
the following results:
   (1) Creation and retention of jobs.
   (2) Creation of new businesses.
   (3) Development of new commercial or dual-use products.
   (4) Establishment of industry partnerships and consortia.
   (5) Demonstration of productivity enhancement such as return on
investment, reduced cost, employee training, and upgrades.
   (6) Establishment of public and private partnerships.
   (7) Commitment of industry support, participation, and capital.
   (8) Leverage of state funds.
   (9) Loan repayment ratio.
   (10) Participation of small businesses and minority-, women-, and
disabled veteran-owned businesses.
   (11) Workforce training.
   (e) The agency shall be authorized to enter into a contract for
services with any alliance to provide services to the office. These
contracts shall be sole source contracts, and exempt from the
competitive bid process.
   (f) During the first two years following selection of an alliance,
the alliance shall monitor the performance of any application funded
pursuant to Section 13994.2, and each invoice for payment shall be
reviewed and approved by the alliance, but the contract for services
shall be directly between the agency and the entity receiving grant
funding. Commencing with the third year of designation, any alliance
with procedures and processes approved by the agency shall be
authorized to directly contract with grant recipients. The agency
shall audit these grants on a regular basis.



13994.2.  (a) There is within the agency the Challenge Grant
Program, consisting of technology transfer grants and defense
industry conversion and diversification grants. Challenge grant
projects funded shall include, but not be limited to, the following:
defense industry conversion and diversification, access to ongoing
research and research findings, exchange or transfer of personnel and
research support services, including capital outlay, consortia
development, and collaborative research.
   (b) All funds appropriated or received by the Challenge Grant
Program shall administratively be divided into either the Technology
Transfer Grant Program or the Defense Industry Conversion and
Diversification Program. Funding awards for the Technology Transfer
Grant Program shall be made pursuant to the requirements set forth in
Sections 13994.3 and 13994.6.
   (c) The agency shall award grants based upon a competitive
application process addressing the project's eligibility and ability
to fulfill the goals of the program.
   (d) The agency shall report on this program to the Governor and
the Legislature.


13994.3.  (a) An eligible technology transfer or defense industry
conversion and diversification project shall, at least, do all of the
following:
   (1) Identify the sources of funding for the entire project.
   (2) Not supplant other funding.
   (3) Demonstrate that a significant portion of the project will be
undertaken in California.
   (b) In addition to the requirements contained in subdivision (a),
a defense industry conversion and diversification project shall not
receive more than 25 percent of the total project costs requested in
the proposal.
   (c) In addition to the requirements contained in subdivision (a),
a technology transfer project shall:
   (1) Represent a technology or industry, or both, targeted in the
application.
   (2) Include a significant amount of matching contributions from
either of the following:
   (A) A private sector company or companies.
   (B) A California-based foundation or foundations, an industry
association or associations, or a nonprofit cooperative association
or associations.
   (3) Include either of the following:
   (A) A private sector company or companies that have significant
operations in the state.
   (B) A California-based foundation or foundations, an industry
association or associations, or a nonprofit cooperative association
or associations.



13994.4.  The technology transfer grantee shall not incur expenses
to be paid with grant funds without evidence of a workable agreement
between the parties participating in the project that includes at
least both of the following:
   (a) A resolution of the intellectual property rights relative to
the project.
   (b) A direct and ongoing involvement of the public and private
sectors, when applicable in the project.



13994.5.  (a) In awarding technology transfer grants, the agency
shall consider the following:
   (1) The likelihood of commercialization of a product, service, or
process.
   (2) The potential impact on the state's economy.
   (3) The cost-effectiveness of the project.
   (4) The importance of state funding for the viability of the
project.
   (5) Cost sharing by other participants.
   (6) The involvement of small businesses and minority-, disabled
veteran-, and women-owned businesses.
   (7) Projects that will result in a prototype by the end of the
grant period.
   (8) Other criteria that the agency determines are consistent with
the purposes of the program.
   (b) The agency shall target industries and technologies with a
potential for enhancing the California economy, and shall fund
projects within those industries and utilizing those technologies.



13994.6.  Technology transfer projects may include reasonable
overhead costs incurred by a research institute and related to the
project that shall not exceed the allowable federal overhead costs
for research. All other projects may include any costs authorized by
the principal funding agency, and not precluded by state
requirements.



13994.7.  Except for defense industry conversion and diversification
projects, only a public agency or a not-for-profit or nonprofit
organization shall receive funds under this chapter. Any person or
entity is authorized to receive a defense industry conversion and
diversification grant.



13994.8.  (a) The agency may obtain scientific and technological
expertise as needed to provide advice and input on the program, the
establishment of targeted technologies and industries, the review of
grant applications, and the review of project performance.
   (b) The agency may award funds over a multiyear period to a
grantee without requiring the grantee to reapply, so long as the
funds in multiple years are utilized for the same project originally
funded.


13994.9.  (a) Notwithstanding Sections 13994.2, 13994.3, 13994.4,
and 13994.5, and the regulations implementing this chapter, the
secretary may award discretionary technology transfer grants totaling
not more than 5 percent or one hundred thousand dollars ($100,000),
whichever is greater, of the funds appropriated each year for this
program.
   (b) Notwithstanding Sections 13994.2, 13994.3, 13994.4, 13994.5,
and subdivision (a) of this section, the secretary may award up to 15
percent of the funds appropriated for a given fiscal year for
consortia development projects that do not have private sector match
but will have private sector match within six months from the date of
the award of funding. For purposes of this subdivision, "private
sector match" means a cash or in-kind contribution available for
expenditure or use to a consortium development project. If, after six
months, no private sector match is available, funding under the
program shall cease and all moneys previously received shall be
returned to the state.


13994.10.  (a) In order to carry out this chapter, there is hereby
created in the State Treasury the California Competitive Technology
Fund.
   (b) The fund shall receive state funds appropriated to it,
contributions from nonstate sources, reimbursements, federal funds,
and interest that accrues to the moneys in the fund pursuant to
subdivision (c).
   (c) The Treasurer shall invest moneys contained in the fund not
needed to meet current obligations in the same manner as other public
funds are invested.
   (d) Notwithstanding Section 13340, all moneys in the fund are
continuously appropriated without regard to fiscal years to the
agency for the purposes of this chapter, and for the purposes for
which moneys were provided. Except for state funds appropriated to,
or transferred into, the fund for local assistance, moneys in the
fund, including all interest, may be spent for support.




13994.11.  The agency shall report on this program to the Governor
and the Legislature.



13994.12.  There is hereby established within the agency the
Technology Planning Program. The program shall provide grants and
technical assistance to California nonprofit organizations and public
entities working within specific industries to identify conversion
or expansion projects. Grants may be awarded in the areas of
strategic planning and strategic alliances. The program shall award
grants based upon a competitive application process addressing the
project's eligibility, a review of the proposal's scientific and
technological aspects, and ability to fulfill goals of the program.
Priority shall be given to those projects with the identified support
of industry representatives, matching funding, projects likely to
receive federal funds requiring matching funds, and any other
criteria determined by the agency. A project example is a joint
effort to develop and commercialize defense-related technologies by
federal laboratories, universities, and companies in close
geographical proximity.