BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2656
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          ASSEMBLY THIRD READING
          AB 2656 (De Leon)
          As Amended  May 17, 2010
          Majority vote 

           HIGHER EDUCATION    6-3         APPROPRIATIONS      11-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Block, Chesbro, Fong,     |Ayes:|Fuentes, Ammiano,         |
          |     |Galgiani, Portantino,     |     |Bradford, Coto, Davis,    |
          |     |Ruskin                    |     |Hill, Hall, Skinner,      |
          |     |                          |     |Solorio, Torlakson,       |
          |     |                          |     |Torrico                   |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Norby, Adams, Fuller      |Nays:|Conway, Harkey, Miller,   |
          |     |                          |     |Nielsen, Norby,           |
           ----------------------------------------------------------------- 

           SUMMARY  :  Places requirements on academic research by employees  
          of postsecondary educational institutions conducted under  
          contract with the state.  Specifically,  this bill  :

          1)Requires research conducted under contract with the state, by  
            any administrator, faculty member, or staff member of a public  
            or private postsecondary educational institution, to be  
            subject to internal institutional policies regarding minimum  
            academic standards and protocols, as defined by the  
            institution.

          2)Prohibits a state agency from entering into a research  
            contract with an institution without first verifying that the  
            institution and research employee are subject to internal  
            policies of the institution.

          3)Requires a state agency or a researcher of an institution to  
            certify that research conducted pursuant to a contract with  
            the agency complies with the academic standards and protocols  
            of the institution.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee:

          1)Minor one-time costs ($15,000) for the Department of General  








                                                                  AB 2656
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            Services to implement the certification policy.

          2)Minor one-time costs for the University of California (UC) and  
            California State University (CSU) campuses to notify employees  
            of the contracting requirement and minor ongoing costs for  
            campuses to respond to requests from state agencies for  
            verification regarding research policies and procedures.

           COMMENTS :  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 CSU, Sacramento, although the campus 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.  The Legislative Analyst's Office  
          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."  

          Higher education research institutions have internal policies  
          governing research integrity.  For example, UC's "University  
          Policy on Integrity in Research"  reaffirms its 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.

           








                                                                 AB 2656
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          Analysis Prepared by  :    Sandra Fried / HIGHER ED. / (916)  
          319-3960


                                                               FN:  0004340