AB 1646 Summary

• Creates the California Demonstration of Emerging Market Opportunities (CalDEMO) Program, effective January 1, 2014, administered by the Governor's Office of Business and Economic Development to allow state agencies to partner with businesses and nonprofits on demonstration and pilot projects for innovative solutions.

• Limits program approvals to a maximum of 10 demonstration agreements per year and gives preference to California-based startup companies.

• Requires demonstration agreements to include performance measures, indemnification provisions, insurance requirements, cost caps, and safety certifications; allows states to absorb costs up to the anticipated benefits received.

• Authorizes state agencies to assess fines up to $10,000 against businesses or nonprofits that falsify or withhold required information; allows discontinuation of projects if safety concerns arise.

• Sunsets the entire program on January 1, 2019.