California Code, Government Code - GOV § 12045

(a) The Governor shall designate three state agencies to participate in a pilot program to award cash prizes to participants in an innovation contest established by each designated agency pursuant to this article.

(b) A sum in the amount of seventy-five thousand dollars ($75,000) is hereby appropriated from the General Fund to the Governor, for allocation to three state agencies designated by the Governor in accordance with subdivision (a), for the award by each designated state agency of a prize of up to twenty-five thousand dollars ($25,000) in the contests described in this article.

(c) The innovation contests shall be open to all residents of California who are not employees of the state.

(d) The innovation contests shall be held in 2015.

(e) Each state agency designated by the Governor in accordance with subdivision (a) shall determine the specific subject of the innovation contest to be held by the agency, which may include proposals that detail a procedure, plan, design, or idea to contribute to the efficiency, economy, or other improvement in the operations of the state agency, including, but not limited to, streamlining an existing process or system of the state agency or the design of a feedback system for the state agency.

(f) Each designated state agency shall administer its innovation contest, including, but not limited to, publicizing the contest and determining the standards for participation and award.

(g) On or before January 1, 2016, each designated state agency shall award a prize of up to twenty-five thousand dollars ($25,000) to the participant the agency determines to have submitted the entry that best addresses the subject of the contest, in accordance with the standards established by the agency, and has the highest likelihood of being adopted and placed in effect. If the designated state agency deems that no participant has addressed the subject of the contest in accordance with this subdivision, or if it awards a prize of less than twenty-five thousand dollars ($25,000), unawarded prize money shall revert to the General Fund.