BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 714
                                                                  Page  1

          Date of Hearing:  April 16, 2012

                            ASSEMBLY COMMITTEE ON HEALTH
                                 Richard Pan, Chair
                   AB 714 (Wieckowski) - As Amended:  April 2, 2012
           
          SUBJECT  :  Roman Reed Spinal Cord Injury Research Fund. 

           SUMMARY  :  Appropriates $2 million from the General Fund to the  
          spinal cord injury (SCI) research fund authorized by the Roman  
          Reed Spinal Cord Injury Research Act of 1999 (Roman Reed Act).

           EXISTING LAW  :  Establishes the Roman Reed Act and authorizes the  
          University of California (UC) to establish a SCI research fund  
          independent of the State Treasury, to accept public and private  
          funds for the purpose of injury research programs and grants.  

           FISCAL EFFECT  :  This bill has not been analyzed by a fiscal  
          committee.

           COMMENTS  :

           1)PURPOSE OF THIS BILL  .  According to the author, California is  
            home to approximately 650,000 people living with paralysis,  
            and this number is increasing steadily.  The author states  
            that nationally, someone suffers a traumatic SCI every 41  
            minutes, adding anywhere from 12,000 to 20,000 new SCI  
            patients annually.  According to a report prepared for AB  
            1657, a similar bill from 2012, a recent study commissioned by  
            the Christopher and Dana Reeve Foundation and the Centers for  
            Disease Control reveals that approximately 5,600,000 Americans  
            are afflicted by some form of paralysis, and 1,275,000  
            individuals are living with a catastrophic SCI.  The report  
            states this is five times higher than earlier estimates of the  
            prevalence of SCI in the United States.  The author maintains  
            that the disability, loss of earning power, and loss of  
            personal freedom resulting from SCI is devastating for the  
            injured individual, and creates a huge financial burden for  
            the State.  The author asserts that associated health care  
            costs and lost income potential associated with spinal  
            injuries cost the State of California upwards of $1 billion  
            per year.  The author claims that promising research-driven  
            therapies currently underway could greatly improve the quality  
            of life and functionality of individuals with spinal cord  
            injuries and offset a significant portion of these state  








                                                                  AB 714
                                                                  Page  2

            costs.  The author indicates that the funds have resulted in  
            remarkable research projects and at least 175 peer-reviewed  
            publications and that discoveries financed by the fund are in  
            the pipeline toward clinical translation. 

            The author indicates that State funding for the Roman Reed  
            Fund has been eliminated, jeopardizing the research that this  
            program undertakes in spinal cord injuries and paralysis.  The  
            author states that by investing new funds in this research,  
            California can ensure the continued success of this impressive  
            program and remain a world leader in neural sciences.  This  
            bill, the author maintains, will provide the critical funding  
            needed to make this program viable.  In conclusion, the author  
            points out that in vetoing AB 1657 (Wieckowski) in 2012 the  
            Governor indicated that this type of valuable research should  
            be supported through general fund activities and this bill  
            addresses that veto message. 

           2)BACKGROUND  .  AB 750 (Dutra), Chapter 777, Statutes of 2000,  
            established the Roman Reed Act to support scientific research  
            related to spinal cord injuries.  The original five-year  
            program was renewed for an additional five years through AB  
            1794 (Dutra), Chapter 414, Statutes of 2004.  Over its 10-year  
            history, the fund provided approximately $1.5 million per year  
            for SCI research in the State of California.  The Roman Reed  
            Act funds were allocated to UC, and administered by the  
            Reeve-Irvine Research Center (RIRC) at UC Irvine.  According  
            to the author, between 2000 and 2009, over 300 scientists,  
            technical staff, and students have participated in 129 Roman  
            Reed Research projects and that the $15.1 million in state  
            contributions to the Roman Reed Fund leveraged $84 million in  
            non-state funds, such as from NIH.  According to the Los  
            Angeles Times, in an article on March 21, 2013, deep federal  
            budget cuts, known as sequestration, could lead to diminished  
            funding for medical and scientific research.  According to the  
            article, UC Irvine receives $100 million from the NIH.  The  
            money is used to fund stem cell, diabetes, and Alzheimer's  
            studies, including the campus' Institute for Memory Impairment  
            and Neurological disorder.  It is looking at a reduction of  
            5%-7%.  

          The Roman Reed Program has three components: a) research grants  
            to promote innovative, high-impact research projects focusing  
            on SCI or nerve cell regeneration.  Principal Investigators  
            must be from institutions within the State of California; b)  








                                                                  AB 714
                                                                  Page  3

            the Roman Reed Core Laboratory which provides a means for  
            investigators who are new to the field of SCI research to  
            launch novel research projects and obtain training in SCI  
            research techniques.  The main purpose of the Core Laboratory  
            is to support experiments by scientists with novel ideas, but  
            who are not yet directly engaged in SCI research in their own  
            labs; and, c) an annual meeting fostering collaboration and  
            communication throughout California, both for scientists and  
            the lay public.  

          According to Dr. Oswald Steward, the Roman Reed Project  
            Director, there have been no grants funded by the Roman Reed  
            Spinal Cord Injury Research Act since 2010 (in other words, no  
            funding from the Legislature).  UC provided funding to  
            continue the grants program in a modified form for one  
            additional year and it continues to be called the "Roman Reed  
            Program" for continuity.  These funds were distributed in  
            2012.  A panel of experts from the spinal cord injury field  
            was assembled to provide outside peer review of Roman Reed  
            Grant applications.  Submitted grants were evaluated for  
            scientific merit and the top 10 were funded.  A total of  
            $749,311 in grants was awarded.  

          The AB 1657 Report provides descriptions of the major areas of  
            research award projects between 2000 and 20120.  Examples are  
            as follows:

              a)   Preventing Secondary Damage  .  According to the Report,  
               initial traumatic or mechanical insult to the spinal tissue  
               in only the beginning.  Within hours to days of injury, a  
               cascade of immunological and other events takes place that  
               can cause the enlargement of the injury site.  Seeking to  
               prevent this secondary damage and protect the nervous  
               system from additional damage immediately after SCI is a  
               key area of research.  

              b)   Promoting Axon (nerve fibers) Regeneration  .  Many Roman  
               Reed projects sought to better understand the road blocks  
               to spinal cord repair by identifying the genes that are  
               expressed and those that go silent in the spinal sensory  
               neurons, by examining a cell death cycle where damage to  
               motor neuron results in a wave of cell death or by  
               determining the structure of a major inhibitory molecule,  
               Nogo.  









                                                                  AB 714
                                                                  Page  4

              c)   Remyelinating Axons  .  Some axons that survive a spinal  
               cord injury still lose their protective sheath of myelin,  
               the fatty substance that insulates and protects them.   
               Without myelin, the axons stop functioning.  Roman Reed  
               grants have been awarded five times to test approaches for  
               remylination.  One study confirmed that the transplantation  
               of federally approved human embryonic stem cells can  
               produce functional myelin in a rat model of spinal cord  
               injury and form part of the pre-clinical results that will  
               be evaluated by the Federal Drug Administration (FDA) to  
               determine if this strategy will eventually be used in  
               human.

              d)   Replacing Cells  .  One strategy for repairing the damaged  
               spinal cord and restoring function is to replace the lost  
               neurons and the glial cells that support, protect, and  
               nourish them.  Ten grants have been awarded to researchers  
               who are working on cellular replacement.  

              e)   Implanting Artificial Substrates  .  Some scientists  
               believe that therapies to repair circuits will work better  
               if they are combined with a device that actually spans the  
               gap in the injured spinal cord.  Seven Roman Reed grants  
               are testing tiny bridges, tunnels, and scaffolding,  
               fabricated from natural or synthetic biomaterials that  
               would be placed between the two stumps of the injured  
               spinal cord to support and guide regenerating axons.

              f)   Retraining and Rewiring the Spinal Cord  .  Certain forms  
               of rehabilitation appear to do more than maintain bone  
               mass, muscle strength, and cardio-vascular fitness.  Recent  
               Roman Reed research has shown that some training protocols,  
               including progressive weight bearing and repetitive  
               stepping routines may restore function by promoting axon  
               regeneration and the creation of new neuron-to-neuron  
               connections, or synapses. 

              g)   Restoring Concomitant Function and Eliminating  
               Complications  .  The complications and loss of function that  
               accompany SCI not only impair quality of like but also can  
               be life threatening.  Roman Reed awards have supported  
               three projects examine bladder function, four exploring  
               pain following SCI and on examining carbohydrate metabolism  
               impairments.









                                                                  AB 714
                                                                  Page  5

              h)   Using Robotics for Assessment and Training  .  Nine Roman  
               Reed awards have focused on robotic devices and recovery of  
               locomotor functions.  

              i)   Creating New Models for Spinal Cord Research  .  Fifteen  
               Roman Reed Grants have been awarded to develop new SCI  
               animal models and ways of assessing or understanding SCI.

              j)   Pre-Clinical Studies . One project is screening drugs  
               that are already approved by the FDA or that are in late  
               phase of development for other applications for use in SCI  
               repair.  This has the potential of bypassing many years of  
               pre-clinical testing and safety trials and save hundreds of  
               millions of dollars. 

           3)SUPPORT  .  Baybio, the California Healthcare Institute and  
            others write in support that California is a leader in  
            neurological and SCI research.  Baybio further states in  
            support that if we are to maintain our prominence in this  
            field of research, additional funding for SCI research to  
            replace General Fund contributions must be found or we risk  
            losing the matching funds and other grants that we  
            successfully attracted in the recent past.  According to these  
            supporters, many discoveries supported by the fund are in the  
            pipeline toward clinical translation including: a) the world's  
            first clinical trial for stem cells for SCI; b) a treatment  
            initially developed for SCI in clinical trials for  
            inflammatory bowel disease; and, c) new surgical techniques  
            developed to treat people with nerve injuries.  Don Reed,  
            father of Roman Reed writes in support that for every dollar  
            invested by the state more than four additional dollars have  
            been leveraged in federal research grants such as the NIH.  

           4)OPPOSITION  .  The California Catholic Conference writes in  
            opposition that although recent amendments have shifted the  
            funding from traffic fines to the General Fund, this bill  
            continues the unfortunate policy of spending money on  
            speculative research.  This opposition points out that at a  
            time in which we have cut funding for our state's safety  
            net-upon which our poor and vulnerable Californians rely-it is  
            highly inappropriate to divert money to University  
            researchers.  

           5)PREVIOUS LEGISLATION  .  









                                                                  AB 714
                                                                  Page  6

             a)   AB 1657 of 2012 would have added an additional penalty  
               assessment of $1 to every fine, penalty, or forfeiture  
               deposit imposed by any court on violations of specified  
               Vehicle Code sections or local ordinance adopted pursuant  
               to the Vehicle Code.  AB 1657 was vetoed by Governor Brown.  
                In his veto message, the Governor stated that SCI research  
               is certainly worthwhile, but the funding method chosen is  
               not.  Loading more and more costs on traffic tickets has  
               been too easy a source of new revenue.  Fines should be  
               based on what is reasonable punishment, not on paying for  
               more general fund activities.

             b)   AB 190 (Wieckowski) of 2011, proposed an additional $3  
               penalty assessment for every violation of the vehicle code,  
               except parking violations, to provide support to the SCI  
               research program at UC.  AB 190 was held in the Assembly  
               Appropriations Committee.

             c)   AB 1931 (Torrico), Chapter 457, Statutes of 2010,  
               eliminated the sunset date for the Roman Reed Act and  
               specified that the Roman Reed Fund be located at UC, rather  
               than the State Treasury.

             d)   AB 1794 extended the sunset date for the Roman Reed Act  
               to January 1, 2011, and the sunset date for the Traumatic  
               Brain Injury pilot project from July 1, 2007 to July 1,  
               2012.

             e)   AB 750 established the Roman Reed Act and created the  
               Roman Reed Fund.

           REGISTERED SUPPORT / OPPOSITION  :  

           Support 
           
          Baybio 
          California Healthcare Institute 
          Californians 4 Cures
          CONNECT
          Don Reed
          Gwendolyn Strong Foundation
          California Hepatitis C Task Force
          Missouri Cures
          StemCells, Inc.









                                                                  AB 714
                                                                  Page  7

           Opposition 
           
          California Catholic Conference

           Analysis Prepared by  :    Marjorie Swartz / HEALTH / (916)  
          319-2097