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CONNECT is a well-respected leader in shaping public policy on behalf of the region’s innovation economy. CONNECT gives innovators a voice in the policy arena that is heard at the local, state and federal levels. We proactively identify legislative issues that affect life science and high tech entrepreneurs, build coalitions to express the impact of policy changes and serve as advocates on legislative policy.

INNOVATION 101 Briefing:  Bill Walton to present on Action/Sports Tech Industry on the Hill – September 14, 2010

Federal Priorities

Intellectual Property
America's innovators rely on strong intellectual property laws to protect their ideas, inventions and investment. CONNECT advocates IP policy from the perspective of start-up businesses and creators of emerging technologies. IP protection is especially critical in the early stages of innovation when investment and business decisions can propel viable ideas to the marketplace. Because an efficient Patent and Trademark Office is integral to America's strong IP system, CONNECT advocates full funding for the PTO with open and transparent PTO management processes.

Investment Capital
America’s innovation edge is fueled by public policies that encourage investment and reward risk.  Start-up businesses and innovative ideas will wither on the vine if they cannot promptly and easily access capital.  CONNECT opposes policies that increase taxes on investment and strongly supports fiscal policies that will draw capital into the “valley of death” that threatens emerging technologies.

Regulation
Although government regulation is necessary in an ordered society, the impact on innovation by government regulation should factor heavily in any public policy deliberations.  Federal, state, and local policymakers should incorporate innovation impact considerations during legislative and regulatory processes to ensure that innovation will not be hindered directly or indirectly.  CONNECT also supports aggressive export policies that encourage free trade while opposing policies that unnecessarily limit U.S. competitiveness and access to global markets.  

Research Development
San Diego’s world-class research community has flourished as federal and state funding allows research to be developed and commercialized, sparking innovative companies and well-paying jobs.  CONNECT supports government research funding based on open and fair competitions targeted toward America’s innovation future.  CONNECT also supports fiscal policies that encourage and reward private research and development as a key driver of America’s economy.  Federal research agencies should stay on the cutting edge of best practices and consider how emerging technologies can factor into their funding programs. 

Workforce
Innovation is driven by creative and entrepreneurial people.  While America’s education system retools itself to enhance science, technology, engineering and mathematics programs, the U.S. should ensure that visa policies allow innovation-based communities to attract talent and remain competitive globally.  By developing home-grown talent and recruiting international talent, America can retain its status as the world’s innovation leader. 

State Priorities

California Jobs Tax Initiative
The California Jobs Tax Initiative would cancel tax policies that are desperately needed to get California’s economy moving again. The Jobs Tax Initiative would hit small and large businesses with higher taxes, tax employers for job creation, stifle innovative industries, and lead to more job losses and fewer tax revenues.

Specifically, the Jobs Tax Initiative would:

• Increases business taxes by nearly $2 billion
• Hits employers with higher income taxes every time they hire new employees or build more facilities in California
• Prohibits businesses from fully utilizing research and development or other earned tax credits.
• Takes away a lifeline for small and cyclical businesses by prohibiting them from leveling out their net operating losses over time.  (Federal tax laws allow businesses to carry net operating losses back several years and forward up to 20 years to ensure they are taxed on their average profitability rather than taxed out of business. California law was recently updated to allow the same, but the Jobs Tax Initiative repeals those updates and would prohibit any carry back of losses and limit carry forwards.)

California Capital Access Company Law
The Capital Access Company Law (SB 1155) was enacted to facilitate formation of public venture capital funds that are exempt from regulation under the Investment Company Act of 1940. The 1940 Act exemption is subject to three conditions: a state must enact a statute that licenses and regulates these funds, limiting the investors in these funds to accredited investors only and requiring the funds invest in small businesses in the state.

The amendments (SB 1155), co-authored by Senators Bob Dutton and Curren Price, made certain technical amendments to make the law more user friendly and permit capital access companies to become licensed small business investment companies under the Small Business Investment Act of 1958.

Senator Leno's cell phone bill
Senator Leno’s Bill 1212, also known as “Senator Leno’s cell phone bill,” sponsored by the Environmental Working Group (EWG), requires cell phone retailers to label phones with the level of radiation they emit, measured by the specific absorption rate (SAR).

CONNECT believes this bill provides for additional regulations that would place a substantial burden on California businesses. This would disproportionately impact smaller businesses that have limited resources and do not have the bandwidth or investment capital to adhere to another set of regulation standards.

In April 2010, CONNECT joined CTIA, TechAmerica and other predominant tech-sector leaders in signing a letter opposing Senator Leno's cell phone bill (SB 1212). 

UC Budget: In this past fiscal year CONNECT continued to support an increase in UC funding.  CONNECT joined the San Diego Chamber and EDC in publishing an opinion piece in June 2010 commending the Governor for his budget proposal which restores approximately $1.7 billion to higher education and urged the legislature to support the Governor’s budget proposal.  

Local Level

Wireless Communication Facilities Policy Stakeholders Review Committee

On the local front, in 2007 amendments were made by the City to San Diego’s municipal code to remove legacy wireless sites. When the City moved forward to implement the amendments it raised major concerns that removing legacy sites would result in a significant decrease in wireless coverage in the region. CONNECT, along with the wireless community, other business interests urged the City to reconsider. CONNECT is active on the Wireless Communication Facilities Policy Stakeholders Review Committee, created by the Mayor to examine the issue and recommend changes to the municipal code to preserve coverage.

Current Action: Still in discussion/pending

Resources

• House of Representatives 2010 Legislative Calendar
• Senate 2010 Legislative Calendar
• Check on the status of a bill

“CONNECT gives innovators a voice in the public policy decision-making process and is an advocate on behalf of early stage companies on issues affecting innovation and entrepreneurship. ”

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