BILL ANALYSIS
SB 1064
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Date of Hearing: August 4, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 1064 (Alquist) - As Amended: June 17, 2010
Policy Committee: Health Vote:19-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill increases oversight and transparency requirements for
the California Institute for Regenerative Medicine (CIRM), which
was established by Proposition 71 in 2004 to provide support for
stem cell research in California. Specifically, this bill:
1)Requires CIRM to commission a performance audit every three
years and requires CIRM to pay for the triennial audits.
2)Requires all revenues received through intellectual property
agreements to be deposited in the state General Fund.
3)Requires CIRM's intellectual property standards to include a
requirement that each grantee or exclusive licensee submit a
plan to provide uninsured Californians access to any drug that
is entirely or partly the result of CIRM-funded research.
4)Contains several staffing, management, and grants
administration provisions. This bill eliminates a 50-person
staffing cap currently imposed on CIRM.
FISCAL EFFECT
1)Audit costs of $200,000 to $400,000 every three years. This
bill requires CIRM to pay these costs from the California Stem
Cell and Research Cures Fund, the bond funding that supports
CIRM.
2)Unknown bond-fund supported increases in salaries and overhead
to the extent CIRM increases staffing above current levels.
Increased staffing costs may range from $500,000 to several
million dollars depending on how close CIRM is currently to
SB 1064
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expenditure caps.
3)Unknown future GF revenues to the extent the requirement for
GF deposits related to intellectual property agreements
established by this bill increases state revenues. Because
medications, therapies, and technologies take years to
successfully develop, a GF benefit may not be seen for 10
years or more.
COMMENTS
1)Rationale . This bill makes several changes to the
administration and functioning of CIRM. Several of the
provisions are based on a 2009 Little Hoover report. The
report included recommendations to deliberately guide
California's investment in stem cell science and improve
CIRM's operational efficiencies.
2)Proposition 71 was approved by voters in November 2004 to
authorize the state to sell $3 billion in general obligation
bonds to provide funding for stem cell research in California.
The issue was put before the voters to address federal
restrictions on the use of human embryonic stem cells. CIRM,
which is governed by the Independent Citizen's Oversight
Committee (ICOC), is required to award grants and loans and to
adopt governance, scientific, medical and regulatory standards
in public meetings. Proposition 71 requires the ICOC to
establish standards for IP agreements that balance public
benefit with the assurance that medical research and private
investment is not hindered by IP agreements.
Analysis Prepared by : Mary Ader / APPR. / (916) 319-2081