BILL ANALYSIS
SB 364
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Date of Hearing: August 19, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
SB 364 (Florez) - As Amended: July 15, 2009
Policy Committee: Health Vote:10-7
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill prohibits officers, directors, or members of the
governing board of a hospital designated as a comprehensive
cancer center by the National Institutes of Health (NIH) to
serve or hold a position as an officer, director, or member of
the board of:
1)A corporation that manufactures or sells tobacco products,
including facilities or pharmacies that derive revenue from
tobacco products.
2)A corporation that has violated state or federal controlled
substances laws or regulations.
3)A biopharmaceutical company that focuses on the discovery,
development, and commercialization of therapeutic products for
diseases such as diabetes and cancer.
FISCAL EFFECT
No direct fiscal impact results from the prohibitions
established by this bill.
COMMENTS
1) Rationale . This bill establishes three prohibitions related
to service on the governing board of one of California's 10
comprehensive cancer centers, as designated by the NIH. These
prohibitions relate to tobacco, controlled substances, and
biopharmaceutical companies.
2) Background . According to press coverage and anecdotal
SB 364
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reports, this bill appears to be aimed at a specific
individual serving as Chief Executive Officer of one of
California's 10 NIH-designated cancer centers. This
individual formerly served on the board of a large chain
pharmacy and has since resigned due to negative coverage of
tobacco sales at that company. In addition, the individual
appears on the board of directors of a biotech firm that
features the precise language "discovery, development, and
commercialization of therapeutic products for diseases such
as diabetes and cancer" on its internet homepage.
3) Term Undefined . The term "biopharmaceutical company" remains
undefined in this bill. It is unclear what an appropriate
statutory definition may be or what is intended because the
author appears to have copied the language directly from a
specific company's website.
4) Concerns . The Chamber of Commerce, the California Grocers
Association, and the California Retailers Association each
oppose this bill in its entirety due to the prohibition
related to tobacco. These groups indicate tobacco is legal
and that this bill creates a slippery slope with regard to
prohibitions related to other products.
Several organizations, including BayBio and the California
Healthcare Institute, hold an oppose unless amended position
due to the provision of the bill prohibiting service on the
board of a pharmaceutical company. For example, the
Pharmaceutical Research and Manufacturers of America (PhRMA)
indicate unlike tobacco, there's no inherent incompatibility
between a cancer center and research underway at a
biopharmaceutical company. The groups opposing this provision
indicate this bill will have a chilling effect on medical
research in California. In addition, these groups indicate
that members of boards and medical researchers are already
governed by strict codes of conduct with regard to ethics and
conflicts of interest.
Analysis Prepared by : Mary Ader / APPR. / (916) 319-2081