BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:       AB 714
          AUTHOR:        Wieckowski
          AMENDED:       June 24, 2013
          HEARING DATE:  July 3, 2013
          CONSULTANT:    Perez

           SUBJECT  :  Roman Reed Spinal Cord Injury Research Fund.
           
          SUMMARY  :  Appropriates $1 million from the General Fund to the  
          spinal cord injury research fund authorized pursuant to the  
          Roman Reed Spinal Cord Injury Research Act of 1999.

          Existing law: Establishes the Roman Reed Act and authorizes the  
          University of California (UC) to establish a spinal cord injury  
          (SCI) research fund independent of the State Treasury, to accept  
          public and private funds for the purpose of injury research  
          programs and grants.  
            
          This bill: Appropriates $1 million from the General Fund (GF) to  
          the spinal cord injury research fund authorized pursuant to the  
          Roman Reed Spinal Cord Injury Research Act of 1999.
          
           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, this bill will result in a $1 million GF  
          appropriation.

           PRIOR VOTES  :  
          Assembly Health:    16- 2
          Assembly Appropriations:14- 0
          Assembly Floor:     68- 3
           
          COMMENTS  :  
             
          1.Author's statement.  The Roman Reed Spinal Cord Injury Fund  
            was funded by the GF for 10 years.  In recent years of  
            financial hardship, hard choices were made to cut funding to  
            this program.  According to the author, this bill restores  
            funding to critically important biomedical research.  The  
            author maintains groundbreaking biomedical research funded  
            through this program in the past has resulted in real results  
            and real discoveries including 175 peer-reviewed publications,  
            new robotic devices to help patients recover movement, and  
            advancement of new drugs to pre-clinical trials.  These  
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            discoveries inform our understanding and treatment of diseases  
            like multiple sclerosis, spinal muscular atrophy, cerebral  
            palsy, Parkinson's disease, Lou Gehrig's disease, spina  
            bifida, encephalitis, and many more.  The author asserts that  
            the money invested by the state - which is used to draw down  
            even more federal research dollars - simultaneously advances  
            innovation, stimulates the California economy, and creates  
            jobs.  The author sustains that, at this time of impending  
            sequestration, federal funding for biomedical research is  
            being reduced and California institutions may lose 10 percent  
            of their research funding this year.  The author argues our  
            state must step up and fill that gap and maintain our position  
            as a leader in biotech research. 

          2.The Roman Reed Spinal Cord Injury Research Act.  According to  
            a 2012 report by the Roman Reed Spinal Cord Injury Research  
            Program, in the late 1990's it was estimated that care for  
            quadriplegic individuals, as a result of a cervical SCI, cost  
            the state of California $340 million annually.  AB 750  
            (Dutra), Chapter 777, Statutes of 2000, established the Roman  
            Reed Act to support scientific research related to SCIs.  The  
            original five-year program was renewed for an additional five  
            years through AB 1794 (Dutra), Chapter 414, Statutes of 2004.   
            The Fund provided approximately $1.5 million per year for 10  
            years for SCI research in California.  The Roman Reed Act  
            funds were allocated to UC, and administered by the  
            Reeve-Irvine Research Center at UC Irvine.  According to the  
            author, between 2000 and 2009, over 300 scientists, technical  
            staff, and students participated in 129 Roman Reed Research  
            projects and $15.1 million in state contributions to the Roman  
            Reed Fund leveraged $84 million in non-state funds, such as  
            from National Institutes of Health.

          The Roman Reed Program has three components: a) research grants  
            to promote innovative, high-impact research projects focusing  
            on SCI or nerve cell regeneration.  Principal Investigators  
            must be from institutions within California; b) the Roman Reed  
            Core Laboratory which provides a means for investigators who  
            are new to the field of SCI research to launch novel research  
            projects and obtain training in SCI research techniques.  The  
            main purpose of the Core Laboratory is to support experiments  
            by scientists with novel ideas, but who are not yet directly  
            engaged in SCI research in their own labs; and, c) an annual  
            meeting fostering collaboration and communication throughout  
            California, both for scientists and the lay public.  
          




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          3.Prior legislation.
               a.     AB 1657 (Wieckowski) of 2012 would have added an  
                 additional penalty assessment of $1 to every fine,  
                 penalty, or forfeiture deposit imposed by any court on  
                 violations of specified Vehicle Code sections or local  
                 ordinance adopted pursuant to the Vehicle Code.  AB 1657  
                 was vetoed by Governor Brown.  In his veto message, the  
                 Governor stated that SCI research is certainly  
                 worthwhile, but the funding method chosen is not.   
                 Loading more and more costs on traffic tickets has been  
                 too easy a source of new revenue.  Fines should be based  
                 on what is reasonable punishment, not on paying for more  
                 general fund activities.

               b.     AB 190 (Wieckowski) of 2011, proposed an additional  
                 $3 penalty assessment for every violation of the vehicle  
                 code, except parking violations, to provide support to  
                 the SCI research program at UC.  AB 190 was held in the  
                 Assembly Appropriations Committee.
               
               c.     AB 1931 (Torrico), Chapter 457, Statutes of 2010  
                 eliminated the sunset date for the Roman Reed Act and  
                 specified that the Roman Reed Fund be located at UC,  
                 rather than the State Treasury.  
               
               d.     AB 1794 (Dutra), Chapter 414, Statutes of 2004  
                 extended the sunset date for the Roman Reed Act to  
                 January 1, 2011, and the sunset date for the Traumatic  
                 Brain Injury pilot project from July 1, 2007 to July 1,  
                 2012.
                       
               e.     AB 750 (Dutra), Chapter 777, Statutes of 2000  
                 established the Roman Reed Act and created the Roman Reed  
                 Fund.
               
          4.Support.  The California Healthcare Institute (CHI), the  
            statewide public policy association representing the life  
            sciences sector, writes that since the inception of the Roman  
            Reed Spinal Cord Injury Research Act of 1999, 68 graduate  
            students have been funded as Roman Reed Fellows, 175  
            peer-reviewed articles have been published, and millions of  
            California dollars have been federally matched bringing  
            additional research and development dollars back into the  
            state.  Few investments made by the state of California can  
            boast a nearly five-to-one return ratio matching funds from  




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            federal and other grant programs. CHI believes that during  
            this time of economic difficulty in the state, the opportunity  
            to continue important neurological research to end producing  
            viable treatments for spinal cord injuries, while attracting  
            well-playing biomedical research and funding, is a rare  
            win-win for the legislature.  BayBio writes that the critical  
            research funded by this bill will go a long way to improve the  
            quality of life for more than 650,000 Californians living with  
            paralysis due to a spinal cord injury. 

          5.Opposition. The California Catholic Conference (CCC) writes in  
            opposition that this bill indicates that stem cell research  
            for spinal cord injuries is now a compelling state interest  
            worthy of a state budget expense.  According to CCC, if this  
            is the case, it would follow that state funds should only  
            provide for the most efficacious stem cell research, that of  
             non-embryonic  , which has both reportable results and the  
            support of private venture capital.  This bill, according to  
            the CCC, mirrors the unfortunate policy of spending public  
            funds on speculative research, when in fact no "cures" have  
            occurred as a result of embryonic stem cell research under the  
            auspices of the California Institute of Regenerative Medicine  
            (CIRM), set-up by Proposition 71.  The CCC believes that at a  
            time in which the state of California struggles to find basic  
            health care funds for its people, particularly those most in  
            need, it is highly inappropriate to divert public funds to  
            researchers who have access to private investments and the  
            CIRM funding. 

          6.Policy Comment.  Considering the cost pressures the GF  
            currently faces and in light of recent fiscal cuts to health  
            and social programs, the Committee may wish to consider  
            whether to elevate funding for spinal cord injuries over other  
            injuries or chronic health conditions experienced by  
            Californians.

           SUPPORT AND OPPOSITION  :
          Support:  Americans for Cures Foundation (sponsor)
                    BayBio
                    Californians 4 Cures
                    California Healthcare Institute
                    Connect
                    Gwendolyn Strong Foundation
                    Missouri Cures
                    Neural Stem Cell Institute 
                    Standard University Medical Center 




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                    StemCells, Inc
                    Winner & Mandabach Campaigns
                    1 individual

          Oppose:   California Catholic Conference 

                                      -- END --