BILL ANALYSIS Ó SCR 161 Page 1 SENATE THIRD READING SCR 161 (De León) As Introduced August 2, 2016 Majority vote SENATE VOTE: 38-0 ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Jobs |9-0 |Eduardo Garcia, Kim, | | | | |Achadjian, Brough, | | | | |Brown, Chau, Chu, | | | | |Gipson, Irwin | | | | | | | | | | | | ------------------------------------------------------------------ SUMMARY: Memorializes the California Legislature's support for promoting the Los Angeles Basin as a bioscience hub and to leverage these activities in a manner that provides educational and economic opportunities for underserved areas, as specified. Specifically, this bill: 1)Makes findings and declarations, which include, but are not SCR 161 Page 2 limited to: a) The 21st Century is often referred to as the "Bio Century" because biosciences are at the forefront of both creativity and innovation, representing a convergence point for engineering, information technology, nanosciences, communication, and media; b) California has been and will continue to be at the forefront of developing an innovative economy. 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% increase; c) The Los Angeles Unified School District (LAUSD) offers 81 science, technology, engineering, and math (STEM) programs to its 1,100 elementary, middle, and high school students. There is, however, still a need to expand access to STEM programs to the thousands of students attending public and private K-12 institutions within the region; d) There are over 415,000 students within LAUSD that come from low-income households. Students who attend schools in the lowest socio-economic neighborhoods are being overlooked for their potential to enter and succeed in highly technical fields, including bioscience. To address these challenges, there is a need for California's public school system and the state's public and private universities to collaborate to establish a pipeline that provides concrete opportunities for low-income, underrepresented students to pursue higher education in scientific fields of study; SCR 161 Page 3 e) Addressing the needs of Los Angeles' underserved areas is important to meet the growing demand for STEM-skilled workforce. The Public Policy Institute of California (PPIC) reports the state will be short 1.1 million bachelor degrees short by 2030. Currently, California ranks near the bottom of all states, 47th, in the share of recent high school graduates who enroll in four-year colleges or universities; f) 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; g) The Los Angeles region has many unique resources and opportunities to support a bioscience hub, including, but not limited to, the ability of its academic medical centers to attract nearly $1 billion in National Institutes of Health funding; the skills of the 42,000 current biotech employees; the ability of major research universities to spur 1,118 invention disclosures and 43 startups in 2010; a proposed biotech park, sponsored by the University of California and supported by its surrounding communities, that is estimated to create up to 3,000 new construction jobs and nearly 4,000 permanent jobs; and the potential plans at the Harbor-University of California Los Angeles (UCLA) Medical Center, Olive View-UCLA Medical Center, and Rancho Los Amigos National Rehabilitation Center to support other new economic, educational, and training opportunities; h) There is a need to address the fact that college graduates are leaving the Los Angeles area to pursue biotechnology job opportunities elsewhere. Annually, SCR 161 Page 4 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 infrastructure has already been developed; and i) There is a need for the state and local governments to move beyond the planning stages if the Los Angeles Basin is to emerge as a bioscience hub. It is critical that concrete actions be taken to promote and invest in biosciences in order to improve the economic opportunity for the Los Angeles Basin residents and businesses. 1)Resolves that the California Legislature agrees that promoting the Los Angeles Basin as a bioscience hub will provide a new economic engine for California and in particular for people in underserved areas. 2)Resolves that it is the intent of the Legislature to develop and encourage proposals that focus on this large, fast-growing, and diverse industry; and to establish manufacturing and research activities for the purpose of providing high-quality jobs, while advancing public health. FISCAL EFFECT: None COMMENTS: Los Angeles is in the process of developing their region into the next big biotech hub. Civic and business leaders are collaborating on a number of initiatives that build on the region's world class research institutions, healthy business climate, and growing number of bioscience businesses. As this alignment of interests deepens, questions arise as to SCR 161 Page 5 what this innovation hub will mean to Los Angeles' historically underserved populations. Without a focused effort on creating an inclusive prosperity model, the economic benefits of a biotech hub could be limited to a few. This resolution supports Los Angeles' efforts to form a regional biotechnology hub, while simultaneously calling on local governments, academia, and the private sector to aggressively take actions that result in greater economic opportunity for all residents and businesses. Biotechnology Career Pathways in Underserved Communities: Typically, the focus of career pathways to biotechnology jobs lead to Bachelor and higher level degrees in STEM-related fields. While appropriate for some individuals, this approach fails to recognize the overall workforce needs of the bioscience industry. For a strong biotechnology hub, STEM workers are needed at all education levels. Developing and implementing bioscience career pathways that have multiple end points deepens the region's comparative advantage while creating new employment opportunities for underserved communities and populations. A 2013 Brookings study, The Hidden STEM Economy, reported that over 26 million jobs exist in the United States (U.S.) that require STEM expertise developed through a high school or two-year technical training certificate/degree. These workers are sometimes referred to as the "technical" STEM workforce. Advanced degree STEM employment is referred to as the "professional" STEM workforce. The technical STEM workforce, as compared to the professional STEM workforce is much more diverse. Key features include: 1)Over 92% of the technical STEM workers are native born; SCR 161 Page 6 2)Blacks and Hispanics comprised a significant percentage of the technical STEM workforce; and, 3)Employment in the technical STEM areas is more geographically dispersed than the professional STEM workforce opportunities, which are focused around tech-heavy regions. LAUSD recognizes these opportunities and currently offers a range of linked learning career pathways in 11 industry sectors, including those related to Health Science and Medical Technology; Energy, Environmental and Utilities; and Engineering. Through these programs, the LAUSD supports career pathway programs at 15 middle and high school campuses with curriculum focused on STEM subject matter. This resolution calls on public and private sector stakeholders to leverage these programs and address further gaps in linking underserved communities and populations with bioscience employment opportunities. Economic Advantages of a Biotechnology Hub: Research shows that workers within metro areas with high concentrations of STEM businesses receive 11% higher wages than workers employed in the same field and doing the same work in metro areas with low concentrations. This means that as Los Angeles continues to develop its bioscience hub, workers across the board will benefit. Businesses will also benefit from re-gaining access to the significant number of highly qualified professional STEM workers who are now working in other regions, as well as hiring from an increasing number of technical STEM works who are graduating from well articulated bioscience career pathways with certificates, licenses, and two- degrees. The policy analysis includes a further discussion of bioscience SCR 161 Page 7 industry and challenges facing the bioscience industry in Los Angeles. Analysis Prepared by: Toni Symonds / J., E.D., & E. / (916) 319-2090 FN: 0004984