BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 364
                                                                  Page  1

          Date of Hearing:   August 27, 2009 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   SB 364 (Florez) - As Amended:  August 20, 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. 

           FISCAL EFFECT  

          No direct fiscal impact results from the prohibitions  
          established by this bill. 

           COMMENTS  

            1) Rationale  . This bill establishes two 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 and controlled substances.  
             These prohibitions are designed to reduce conflicts of  
             interest between improving health, reducing cancer, and  
             patient treatment and activities such as tobacco sales or  
             controlled substances violations. 

            2) The August 21st amendment  deletes a third prohibition  
             related to service on the governing board of a cancer center  








                                                                  SB 364
                                                                  Page  2

             at the same time as serving on the board of directors of a  
             biopharmaceutical company. The provision that has been  
             deleted generated significant opposition and concerns from  
             hospitals, academic medical centers, and biotechnology firms.  
             This amendment is likely to reduce opposition from these  
             groups.   

           



           Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081