BILL ANALYSIS
AB 1733
Page 1
Date of Hearing: March 23, 2010
ASSEMBLY COMMITTEE ON HEALTH
William W. Monning, Chair
AB 1733 (Hill) - As Introduced: February 4, 2010
SUBJECT : Director of California Biotechnology Retention and
Recruitment: duties.
SUMMARY : Establishes the position of Director of California
Biotechnology Retention and Recruitment within the Office of the
Governor. Specifically, this bill :
1)Directs the Governor to create the position of Director of
California Biotechnology Retention and Recruitment within the
Office of the Governor using existing resources.
2)Requires the Director to be appointed by, report directly to,
and serve at the pleasure of, the Governor.
3)Makes the Director responsible for serving as an informational
resource for biotechnology, life science, and medical
companies in and outside of California, as specified.
EXISTING LAW :
1)Requires the California Department of Education (CDE), in
consultation with representatives from the California
Institute for Regenerative Medicine and the biotechnology
industry, to promote stem cell and biotechnology education and
workforce development within a variety of existing programs,
including the California Health Science Educators Institute;
the Health Science Capacity Building Project; the California
Partnership Academies; the regional science centers; and, the
California Career Resource Network.
2)Requires CDE to post on its Internet Web site information and
links to information about biotechnology education programs,
including, but not limited to, those identified by the biotech
industry and industry-related organizations.
3)Authorizes various specified state and local entities to enter
into memoranda of understanding with the San Diego Multiuse
Biotechnology Training Center to provide services, funding,
and personnel to accelerate the growth and formation of new
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bioscience enterprises in the San Diego region.
FISCAL EFFECT : This bill has not yet been analyzed by a fiscal
committee.
COMMENTS :
1)PURPOSE OF THIS BILL . The author states that California's
biotechnology industry is a worldwide leader in life saving
treatments and devices, with more than 2,000 biomedical
companies employing over 274,000 individuals. The author
notes that these companies are responsible for 1,200 approved
treatments for patients with 869 products in the California
biopharmaceutical pipeline, including those in pre-clinical
and clinical development. As Chair of the Assembly Select
Committee on Biotechnology, the author argues that state
government needs to be more responsive when dealing with the
biomedical industry and the new position within the Governor's
office created by this bill is intended to serve as a
"one-stop shop" resource for the biomedical profession.
According to the author, the Director of Biotechnology would
be responsible for helping existing companies thrive in the
state while serving as a resource for new companies that want
to locate within California.
2)BACKGROUND . According to information from the California
Biotechnology Foundation, biotechnology integrates and applies
knowledge from various science and math disciplines to create
and develop techniques and products. Biotechnology began 30
years ago and since then has grown into a world-wide industry.
Prior to the creation of biotechnology, pharmaceutical
companies produced drugs and vaccines without the genetic and
molecular information that is available today. Since many
pharmaceutical companies now apply the same techniques
utilized by biotechnology companies, the term "life science"
is used to describe both industries. Sectors of the
biotechnology industry include health care (drugs, vaccines,
devices, and diagnostics); agricultural biotechnology
(genetically modified organisms, food safety); industrial and
environmental applications (biofuels); and wholesale trade
companies that manage the import, export, and exchange of
pharmaceuticals, medical devices, and other supplies in the
global market.
3)CALIFORNIA BIOMEDICAL INDUSTRY REPORT . A February 2010 report
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by the California Healthcare Institute (CHI) and
PricewaterhouseCoopers LLP showed that California's 2000
biomedical companies generated estimated revenues of $75.9
billion in 2008 while total estimated venture capital
investments in California companies reached $2.6 billion and
biomedical exports reached $17.5 billion. The report
estimated that approximately 783,000 Californians are employed
either part- or full-time as a result of the life sciences
industry, and when combined with other jobs, such as
construction, financial, and legal professionals, that are
associated with providing goods and services to life sciences
employees, biomedical industry-related jobs comprise 3.8% of
the state's total employment numbers. While the report noted
that the industry experienced a modest 3% increase in
employment despite the state's economic difficulties, it also
found that two-thirds of executives at California's largest
biomedical companies expect to move more manufacturing out of
state within the next two years and 58% indicated they
anticipate doing more research and development outside of
California.
4)LITTLE HOOVER COMMISSION REPORT . As evidence of the need for
this bill, the author points to a February 2010 report by the
Little Hoover Commission (Commission) entitled, "Making Up for
Lost Ground: Creating a Governor's Office of Economic
Development," which found that the dismantling of the
Technology, Trade, and Commerce Agency in 2003 left a void
that has been exacerbated by the state's current economic
crisis as people are looking to the state for clear signs that
it is ready and able to help with programs and connections
that can link local, state, and federal economic development
efforts. The Commission notes that with the surviving
programs now spread out among other agencies, no one person at
the state level is setting a vision for the state's role or
articulating it for businesses, cities, and regions seeking to
spur job creation. In response to the lack of state level
coordination that is cited in the Commission's report, the
author argues that a Director of Biotechnology, in particular,
is needed to foster the growth of the state's biomedical
industry through increased assistance and collaboration
between state government, higher education institutions, and
the private sector.
5)SUPPORT . CHI, which represents biotechnology firms, medical
device companies, pharmaceuticals, and academic research
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institutions, writes in support that this bill takes the first
step in establishing a coordinated recruitment and retention
effort within California so that it can be more competitive in
attracting and retaining biomedical research firms. CHI adds
that having a designated position within the Office of the
Governor to help companies comply with state-specific
regulatory requirements will facilitate expansion of the
biomedical industry in California.
6)PRIOR LEGISLATION .
a) SB 471 (Romero), Chapter 185, Statutes of 2009, creates
the California Stem Cell and Biotechnology Education and
Workforce Development Act of 2009 to establish stem cell
and biotechnology education and workforce development as a
state priority and promote stronger links between industry
sectors, the California Institute for Regenerative
Medicine, and California public schools, as specified.
b) AB 1551 (Kehoe), Chapter 628, Statutes of 2003, makes
legislative declarations relating to the biotechnology
industry in the San Diego region and authorizes specified
state and local entities to enter into agreements with the
San Diego Multiuse Biotechnology Training Center.
7)DOUBLE-REFERRAL . This bill has been double-referred. Should
this bill pass out of this committee, it will be referred to
the Assembly Business and Professions Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
California Healthcare Institute
Opposition
None on file.
Analysis Prepared by : Cassie Rafanan / HEALTH / (916)
319-2097