BILL ANALYSIS
AB 1733
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Date of Hearing: April 13, 2010
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 1733 (Hill) - As Introduced: February 4, 2010
SUBJECT : Director of California Biotechnology Retention and
Recruitment: duties.
SUMMARY : Establishes the Director of California Biotechnology
Retention and Recruitment (Director) within the Office of the
Governor. Specifically, this bill :
1)Establishes the position of Director within the Office of the
Governor, to be appointed by, report directly to, and serve at
the pleasure of the Governor.
2)Directs the Director to serve as an informational resource for
biotechnology, life science, and medical companies located in
California by helping them comply with state and local
regulatory requirements and for those interested in relocating
to California.
3)Makes legislative findings and declarations.
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
AB 1733
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Biotechnology Training Center to provide services, funding,
and personnel to accelerate the growth and formation of new
bioscience enterprises in the San Diego region.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author's office, this
bill would "foster the growth of California's biomedical
industry through increased assistance and collaboration between
state government, universities and the private sector."
Background . The biomedical industry produces technological
innovation that advances human health. Drugs, medical devices
and diagnostics have long played a significant role in the
California economy.
According to the author's office, "California is home to over
2,000 biomedical companies employing over 274,000 people. The
average wage for a biomedical industry employee in California is
$75,000. San Mateo County, considered the birthplace of
biotechnology, has over 350 companies employing roughly 15,000
people with a total payroll of $567 million. Companies within
the state are responsible for 1,200 approved treatments with 869
products in the California biopharmaceutical pipeline, including
those in pre-clinical and clinical development."
However, the 2010 Biomedical Industry report released by the
California Healthcare Institute (CHI) in February 2010 showed
that two-thirds of executives at California's largest biomedical
companies expect to move more manufacturing out of state within
the next two years. Fifty-eight percent said they anticipate
doing more research and development outside California.
Genentech, considered the founder of the biotechnology industry,
began constructing its first manufacturing facility outside of
California in 2006, citing income tax disparity as the reason
for moving out of state.
Additionally, according to the author's office, "45 states and
27 countries are organizing efforts to attract biotechnology
companies away from California. The financial commitments
toward life sciences being offered elsewhere are staggering.
Ireland will spend $6 billion between 2006 and 2013 on
commercialization, research and R&D tax credits. China spent $1
AB 1733
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billion last year on biotech investment and attraction.
"The Director of California Biotechnology Retention and
Recruitment, which would be funded with existing resources
within the Governor's office, would serve as a one-stop-shop
resource for the biomedical industry. The increased
coordination and assistance between state government, higher
education, and the private sector resulting from this
legislation will translate into high quality jobs for
Californians."
Other states have begun creating offices dedicated to
biotechnology retention and recruitment. The Maryland
Biotechnology Center was created in 2009 by Governor Martin
O'Malley to consolidate and coordinate a host of state,
university and private sector initiatives to better showcase and
support biotechnology innovation and entrepreneurship.
Previous legislation :
SB 471 (Romero), Chapter 185, Statutes of 2009, created 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.
AB 1551 (Kehoe), Chapter 628, Statutes of 2003, made 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.
REGISTERED SUPPORT / OPPOSITION :
Support
Advanced Medical Technology Association (AdvaMed)
BIOCOM
California Healthcare Institute (CHI)
Opposition
None on file.
AB 1733
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Analysis Prepared by : Marina Wiant / B.,P. & C.P. / (916)
319-3301