BILL NUMBER: SB 1009 CHAPTERED 10/10/99 CHAPTER 751 FILED WITH SECRETARY OF STATE OCTOBER 10, 1999 APPROVED BY GOVERNOR OCTOBER 7, 1999 PASSED THE SENATE SEPTEMBER 8, 1999 PASSED THE ASSEMBLY SEPTEMBER 7, 1999 AMENDED IN ASSEMBLY SEPTEMBER 3, 1999 AMENDED IN ASSEMBLY JUNE 8, 1999 AMENDED IN SENATE APRIL 7, 1999 INTRODUCED BY Senators Ortiz and Perata FEBRUARY 26, 1999 An act to amend Section 104187 of, and to add Sections 104181.5, 104182.5, 104182.7, and 104187.5 to, the Health and Safety Code, relating to cancer research. LEGISLATIVE COUNSEL'S DIGEST SB 1009, Ortiz. Cancer research. Under existing law, the State Department of Health Services is responsible for the administration and oversight of various health care programs. Existing law establishes the Cancer Research Fund in the State Treasury, provides that the moneys in the fund shall be expended for purposes of cancer research, as defined, and provides that the State Department of Health Services may contract with nonprofit organizations, foundations, or public entities to administer the Cancer Research Program. Existing law requires the program to be administered in accordance with certain principles, including, but not limited to, the requirement that the department work closely with, and seek the advice of, the Cancer Research Council, consisting of 16 members. This bill would revise the procedures for administration of the program and would limit the allocation of funds according to a formula for the use of funds for various specified types of cancer research. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 104181.5 is added to the Health and Safety Code, to read: 104181.5. The department, in awarding grants under this program, shall not encumber money allocated in any fiscal year other than the fiscal year in which the appropriation was made beginning with nonobligated 2000-01 fiscal year funds, subject to receiving multiyear spending authority for those funds. SEC. 2. Section 104182.5 is added to the Health and Safety Code, to read: 104182.5. Not less than a majority of the appointed members of the Cancer Research Council shall be present and voting for approval and selection of research priorities under Section 104185 and ultimate recommendations to the State Department of Health Services regarding grantmaking decisions. SEC. 3. Section 104182.7 is added to the Health and Safety Code, to read: 104182.7. (a) The department shall grant a minimum of 65 percent of any fiscal year appropriation that is awarded for research to cancer research proposals directly researching gender-specific cancers. (b) Any amount of funding for gender-specific cancer research for any fiscal year, to the extent the amount is below the threshold minimum allocation for any fiscal year established pursuant to subdivision (a), shall be carried forward, upon approval of the council for the following fiscal year or years for gender-specific cancer research, to the extent allowed by the limitations on the appropriated funds subject to that allocation. Funding allocations carried over from any fiscal year under this subdivision shall be in addition to the funding allocation for gender-specific cancer research for fiscal years to which the additional allocation is transferred pursuant to this subdivision. SEC. 4. Section 104187 of the Health and Safety Code is amended to read: 104187. The State Department of Health Services shall do all of the following: (a) Provide overall coordination of the program. (b) Provide staff assistance to the program and council. (c) Develop administrative procedures relative to the solicitation, review, and awarding of grants to ensure an impartial, high-quality peer review system. (d) Recruit and supervise research review panels. The membership of these panels shall vary depending on the subject matter of proposals and review requirements, and shall draw on the most qualified individuals. The work of the review panels shall be administered pursuant to policies and procedures established for the implementation of the program. In order to avoid conflicts of interest and to ensure access to qualified reviewers, the department may utilize reviewers not only from California but also from outside the state. When serving on review panels, institutions, corporations, or individuals who have submitted grant applications for funding by this program shall be governed by conflict-of-interest provisions consistent with Section 52h.5 of Title 42 of the Code of Federal Regulations governing scientific review of research grant applications, and any applicable conflict-of-interest provisions in state law. Any appointed member of the Cancer Research Council shall be ineligible to apply for or receive funding for cancer research from the Cancer Research Program during his or her term of service on the council, and for one cycle immediately following his or her term of service on the council, if the council member helped plan that subsequent cycle. (e) Provide for periodic program evaluation to ensure that research funded is consistent with program goals. (f) Disseminate grant moneys within 60 days of notification of the award and maintain a system of financial reporting and accountability. Grant moneys disseminated pursuant to this subdivision shall be available for expenditure for a period of three years beginning with funds appropriated in the 1998-99 fiscal year. (g) Provide for the systematic dissemination of research results to the public and the health care community, including work to produce public service advertising on screening and research results, and provide for a mechanism to disseminate the most current research findings in the areas of cause and prevention, cure, diagnosis, and treatment of cancer, in order that these findings may be applied to the planning, implementation, and evaluation of any cancer-related programs of the department. (h) Develop policies and procedures to facilitate the translation of research results into commercial, alternate technological, and other applications wherever appropriate and consistent with state and federal law. (i) Transmit, on or before December 31, 1998, and annually on or before each December 31 thereafter, a report to the Legislature on grants made, grants in progress, program accomplishments, and future program directions. Each report shall include, but not be limited to, all of the following information: (1) The number and dollar amounts of research grants, including the amount allocated to indirect costs. (2) The subject of research grants. (3) The relationship between federal and state funding for cancer research. (4) The relationship between each project and the overall strategy of the research program. (5) A summary of research findings, including discussion of promising new areas. (6) The corporations, institutions, and campuses receiving grant awards. SEC. 5. Section 104187.5 is added to the Health and Safety Code, to read: 104187.5. Peer review panels, in reviewing proposals for cancer research, may recommend the awarding of a grant to a cancer research proposal on the condition that a single adjustment or correction be made before the receipt of funding under this article.