BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2656
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          Date of Hearing:   April 20, 2010

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Marty Block, Chair
                    AB 2656 (De Leon) - As Amended:  April 8, 2010
                              AS PROPOSED TO BE AMENDED
           
          SUBJECT  :   Postsecondary education: contracts for academic  
          research.

           SUMMARY  :   Requires any research conducted at a public or  
          private postsecondary educational institution be subject to  
          internal institutional policies to ensure that the research  
          meets minimum standards and protocols.  Specifically,  this bill  :  
           

          1)Requires research conducted by any administrator, faculty  
            member, or staff member of a public or private postsecondary  
            educational institution be subject to internal institutional  
            policies to ensure that the research meets minimum academic  
            standards and protocols, as defined by the university employer  
            or Faculty Senate.

          2)Prohibits a state agency from entering into a contract with a  
            public or private postsecondary educational institution for  
            academic research without first verifying that the contracting  
            institution, and the administrator, faculty member, or staff  
            member conducting the research, have complied with internal  
            policies of the institution and requires that the researcher  
            certify that the research complies with the academic standards  
            and protocols adopted by the university or its Faculty Senate.

           EXISTING LAW  :  The State Contract Act contains provisions that  
          generally regulate the process through which state agencies  
          enter into contracts for goods and services.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   Varshney/Tootelian reports  :  Two recent studies  
          relating to California's regulatory environment and AB 32  
          (N??ez), the Global Warming Solutions Act of 2006 (Chapter 488,  
          Statutes of 2006) have resulted in controversy and confusion  
          about the effects of state regulation on small businesses.  Both  
          studies were conducted by Professors Sanjay Varshney and David  
          Tootelian, who are faculty at California State University,  








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          Sacramento (CSUS), although CSUS was not part of the contract.

          The first study-Cost of State Regulations on California Small  
          Businesses Study (September 2009)-concluded that California's  
          regulations of all types resulted in reduction in the gross  
          state product of $493 billion annually in lost output and  
          $134,000 annually per small business.  This study was  
          commissioned by AB 2330 (Arambula), Chapter 232, Statutes of  
          2006.  The second study-Cost of AB 32 on California Small  
          Businesses-Summary Report of Findings (June 2009)-concluded that  
          AB 32 will cost California's small businesses $183 billion in  
          lost output each year.  In response to an inquiry by the author,  
          the Legislative Analyst's Office (LAO) dismissed as "highly  
          unreliable" the researchers' claim that California's global  
          warming law would wipe out 1 million jobs and $493 million in  
          economic output and labeled the second study "essentially  
          useless."  

           Purpose of this bill  :  According to the author, "There are no  
          minimum academic standards such as peer-review prior to  
          releasing research made by university faculty or staff.  Due to  
          no such requirements, faculty and staff from universities can  
          produce reports that are so deeply flawed that render their  
          findings essentially useless." 

           Existing institutional policies/peer review  :  Higher education  
          research institutions have internal policies governing research  
          integrity.  For example, the University of California's (UC)
          "University Policy on Integrity in Research" (APM 190 - Appendix  
          B) reaffirms the University's commitment to integrity in  
          research.  This policy also notes that various UC policies set  
          forth expectations for high standards of ethical behavior for  
          faculty and students involved in research and provide procedures  
          for addressing allegations of misconduct in research, such as  
          the 
          bylaws of the Academic Senate,  the Faculty Code of Conduct, and  
          the University Policy on Faculty Conduct and the Administration  
          of Discipline.

           Previous legislation  :  AB 20 (Solorio), Chapter 402, Statutes of  
          2009, requested UC and required the Department of General  
          Services to establish standard contract provisions for research  
          contracts between UC and the state.

           REGISTERED SUPPORT / OPPOSITION  :   








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           Support 
           
          None on file.

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Sandra Fried / HIGHER ED. / (916)  
          319-3960