BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SCR 161| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 SCR 161 Page 2 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 SCR 161 Page 3 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. SCR 161 Page 4 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 ****