BILL ANALYSIS                                                                                                                                                                                                    Ó




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                                    THIRD READING


          Bill No:  SCR 161
          Author:   De León (D), et al.
          Introduced:8/2/16  
          Vote:     21  

           SUBJECT:   Los Angeles Basin:  bioscience hub


          SOURCE:    Author


          DIGEST:          This resolution promotes the Los Angeles Basin as a  
          bioscience hub to provide new economic opportunity for the State  
          of California, and declares the intent of the Legislature to  
          develop and encourage state and local policy proposals that  
          focus on the Los Angeles Basin bioscience industry.
          ANALYSIS:   This resolution makes the following legislative  
          findings:


          1)California has been and will continue to be at the forefront  
            of developing an innovative economy.  First, Silicon Valley  
            ushered in the computer age.  Now, the Los Angeles Basin is  
            poised to become the epicenter of biotechnology with its  
            academic institutions, training centers, companies, and  
            communities.  The Los Angeles bioscience industry has been a  
            consistent growth industry even during the recession and  
            recovery years. In bioscience industries, employment in Los  
            Angeles County rose from 37,759 jobs in 2001 to 42,211 in  
            2010, an 11.8 percent increase.


          2)The Los Angeles Unified School District (LAUSD), the second  
            largest school district in the nation with over 1,100 schools  
            and an enrollment of over 415,000 low-income students, offers  








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            81 science, technology, engineering, and math (STEM) programs  
            to its elementary, middle, and high school students.  The  
            number of kindergarten and grades 1 to 12, inclusive, students  
            in LAUSD and other school districts in the Los Angeles Basin  
            who have access to STEM programs must be expanded as these  
            students are California's future workforce.


          3)For the majority of low-income, underrepresented students,  
            their access to a higher education remains their passport to  
            economic security.  If these students earn a STEM degree and  
            are able to work in the bioscience industry, they can break  
            the cycle of income inequality.  According to the Public  
            Policy Institute of California, workers with engineering  
            degrees earn a median annual wage of $96,000, which is almost  
            three times more than an individual who earns only a high  
            school diploma.


          4)In partnership with the leading higher education institutions  
            in the area, state and local governments need to promote and  
            develop a competitive bioscience industry in Los Angeles.   
            First, the Los Angeles Basin is home to several leading  
            academic medical centers that attract nearly $1 billion in  
            National Institutes of Health Funding.  Second, in 2010, the  
            Los Angeles biotech workforce was comprised of 42,000  
            employees with average wages of $72,052.  Third, the area's  
            major research universities, such as the University of  
            California at Los Angeles, the University of Southern  
            California, and the California Institute of Technology,  
            created 1,118 invention disclosures and 43 startups in 2010.


          5)Local governments must work in partnership to promote and  
            develop the Los Angeles Basin to address the fact that college  
            graduates are leaving this area to pursue biotechnology job  
            opportunities elsewhere.  Annually, universities in the Los  
            Angeles Basin produce over 5,000 college graduates in science,  
            technology, and engineering.  Yet, the Los Angeles Basin ranks  
            14th nationwide in biotech investment because many of these  
            graduates leave to pursue jobs in other cities, such as San  
            Francisco and San Diego, and in other states where biotech  








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            infrastructure has already been developed.


          6)Within the Los Angeles Basin, the University of Southern  
            California and local governments are working to establish a  
            new biotech park that will create up to 3,000 new construction  
            jobs and nearly 4,000 permanent jobs that will be accessible  
            to local communities.  This, and other potential plans at  
            Harbor-UCLA Medical Center, Olive View-UCLA Medical Center,  
            and Rancho Los Amigos National Rehabilitation Center, will  
            create new potential economic, educational, and training  
            opportunities.


          7)Local governments are also in the initial stages of developing  
            plans to address the creation and expansion of the biotech  
            industry.  In March 2015, the City of Los Angeles introduced a  
            motion to analyze the estimated fiscal and economic impact of  
            local biotech tax credits to encourage growth and development.  
             In 2012, the Los Angeles County Board of Supervisors  
            commissioned a feasibility study for advancing the bioscience  
            industry in the region that focused on commercializing new  
            technologies, keeping and attracting new bioscience talent,  
            collaborating with university technology transfer offices, and  
            marketing the region to new start-up companies and established  
            national and international bioscience companies.


          This resolution:


          1)Concurs that promoting the Los Angeles Basin as a bioscience  
            hub will provide a new economic engine for the State of  
            California, in particular for underserved areas.


          2)Declares the intent of the Legislature to develop and  
            encourage, through the enactment of legislation, state and  
            local public policy proposals that focus on this large,  
            fast-growing, and diverse industry to establish manufacturing  
            and research activities for the purpose of providing  
            high-quality jobs while advancing public health.








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          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:NoLocal:    No


          SUPPORT:   (Verified8/12/16)


          Los Angeles Unified School District
          University of California 
          University of Southern California


          OPPOSITION:   (Verified8/10/16)


          None received





          Prepared by:  Karen Chow / SFA / (916) 651-1520
          8/12/16 13:43:44


                                   ****  END  ****