BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 714
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          Date of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  AB 714 (Wieckowski) - As Amended:  April 2, 2013 

          Policy Committee:                              HealthVote:16-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill appropriates $2 million to the spinal cord injury  
          research fund authorized by the Roman Reed Spinal Cord Injury  
          Research Act of 1999 (Roman Reed Act).   

           FISCAL EFFECT  

          $2 million GF appropriation.
           
          COMMENTS  

           1)Rationale  .  The Roman Reed Act was enacted by AB 750 (Dutra),  
            Chapter 777, Statutes of 2000 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.  The author  
            has introduced multiple bills over recent years to fund SCI  
            research.  
             
             AB 1657 (Wieckowski) of 2012 would have increased traffic  
            fines for this purpose but was vetoed.  The governor called  
            SCI worthwhile but objected to the approach of using traffic  
            fines to pay for general fund activities.  This bill responds  
            to the governor's veto message.

           2)Background on Spinal Cord Injuries and Funding for Research  .  
            According to the author, California is home to approximately  
            650,000 people living with paralysis, and this number is  








                                                                  AB 714
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            increasing steadily.  The author states that nationally,  
            someone suffers a traumatic spinal cord injury (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 recent study commissioned by the Christopher and Dana  
            Reeve Foundation and the Centers for Disease Control reveals  
            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 the disability, loss of earning power,  
            and loss of personal freedom resulting from SCI are  
            devastating for the injured individual, and create a huge  
            financial burden for the state.  The author asserts associated  
            health care costs and lost income potential cost the state  
            upwards of $1 billion per year.  According to the author,  
            between 2000 and 2009, over 300 scientists, technical staff,  
            and students have participated in 129 Roman Reed Research  
            projects and the $15.1 million in state contributions to the  
            Roman Reed Fund leveraged $84 million in non-state funds, such  
            as from the National Institutes for Health (NIH).  According  
            to a March 21, 2013 Los Angeles Times article, 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.  A funding reduction of 5%-7% is  
            anticipated. 

           3)Funding Arguments  .  Supporters, such as Baybio, the California  
            Healthcare Institute and others note California's prominence  
            as a leader in neurological and SCI research. 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.  

            In opposition, the California Catholic Conference objects to  
            spending money on speculative research at a time when funding  
            for our state's safety net is being cut, asserting it is  
            highly inappropriate to divert money to University  
            researchers.  









                                                                  AB 714
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           Analysis Prepared by  :    Debra Roth / APPR. / (916) 319-2081