SDSI’s parent company, 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 sports companies in all areas, build coalitions to express the impact of policy changes and serve as advocates on legislative policy. Tim Tardibono Policy Director and Chief Council has a full time presence on the Hill to advocate on behalf of SDSI members and the policy needs of our industry. Please contact SDSI with any policy related issues or concerns you or your company may have.Federal Priorities
America's innovators rely on strong intellectual property laws to protect their ideas, inventions and investment. CONNECT & SDSI 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 (PTO) is integral to America's strong IP system, we advocate full funding for the PTO with open and transparent PTO management processes.
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 & SDSI 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.
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 & SDSI also supports aggressive export policies that encourage free trade while opposing policies that unnecessarily limit U.S. competitiveness and access to global markets.
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 & SDSI supports government research funding based on open and fair competitions targeted toward America’s innovation future. We also support 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 howemerging technologies can factor into their funding programs.
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.