BILL ANALYSIS                                                                                                                                                                                                    �





                                                                  AB 714

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          GOVERNOR'S VETO
          AB 714 (Wieckowski)
          As Amended June 24, 2013
          2/3 vote
           
           
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          |ASSEMBLY:  |68-3 |(May 29, 2013)  |SENATE: |39-0 |(September 9,  |
          |           |     |                |        |     |2013)          |
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          |ASSEMBLY:  |75-1 |(September 10,  |        |     |               |
          |           |     |2013)           |        |     |               |
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           Original Committee Reference:   HEALTH  

           SUMMARY  :  Appropriates $1 million from the General Fund (GF) to  
          the spinal cord injury (SCI) research fund authorized by the  
          Roman Reed Spinal Cord Injury Research Act of 1999 (Roman Reed  
          Act).

           The Senate amendments are technical and nonsubstantive. 

           EXISTING LAW  establishes the Roman Reed Act and authorizes the  
          University of California (UC) to establish a SCI research fund  
          to accept public and private funds for the purpose of injury  
          research programs and grants.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, one-time $1 million GF appropriation.

           COMMENTS  :  According to the author, California is home to  
          approximately 650,000 people living with paralysis, and this  
          number is increasing steadily.  The author states nationally,  
          someone suffers a traumatic SCI every 41 minutes, adding  
          anywhere from 12,000 to 20,000 new SCI patients annually.   
          According to a report prepared for AB 1657 (Wieckowski), a  
          similar bill from 2012, a study commissioned by the Christopher  










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          and Dana Reeve Foundation and the federal Centers for Disease  
          Control and Prevention, approximately 5.6 million Americans are  
          afflicted by some form of paralysis, and almost 1.3 million  
          individuals are living with a catastrophic SCI.  The report  
          states this is five times higher than earlier estimates of the  
          prevalence of SCI in the United States.  The author maintains  
          that the disability, loss of earning power, and loss of personal  
          freedom resulting from SCI is devastating for the injured  
          individual and creates a huge financial burden for the state.   
          The author asserts that associated health care costs and lost  
          income potential associated with spinal injuries cost the state  
          upwards of $1 billion per year.  The author claims that  
          promising research-driven therapies currently underway could  
          greatly improve the quality of life and functionality of  
          individuals with spinal cord injuries and offset a significant  
          portion of these state costs.  The author indicates that the  
          funds have resulted in remarkable research projects and at least  
          175 peer-reviewed publications and that discoveries financed by  
          the fund are in the pipeline toward clinical translation.  The  
          author indicates that state funding for the Roman Reed Fund has  
          been eliminated, jeopardizing research this program undertakes  
          in SCI and paralysis.  The author argues that by investing new  
          funds in this research, California can ensure the continued  
          success of this impressive program and remain a world leader in  
          neural sciences.  This bill, the author maintains, will provide  
          the critical funding needed to make this program viable.  The  
          author points out that in vetoing AB 1657 in 2012 the Governor  
          indicated that this type of valuable research should be  
          supported through GF activities, rather than penalty assessments  
          on vehicle offenses as was provided in AB 1657.

          AB 750 (Dutra), Chapter 777, Statutes of 2000, established the  
          Roman Reed Act to support scientific research related to spinal  
          cord injuries for five-years and was renewed for an additional  
          five years through AB 1794 (Dutra), Chapter 414, Statutes of  
          2004.  The Roman Reed Program has three components:  1) research  
          grants to promote innovative, high-impact research projects  
          focusing on SCI or nerve cell regeneration.  Principal  
          Investigators must be from institutions within the State of  
          California; 2) the Roman Reed Core Laboratory which provides a  
          means for investigators who are new to the field of SCI research  










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          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, 3) an annual meeting fostering collaboration and  
          communication throughout California, both for scientists and the  
          lay public.  According to Dr. Oswald Steward, the Roman Reed  
          Project Director, there have been no grants funded by the Roman  
          Reed Spinal Cord Injury Research Act since 2010 (in other words,  
          no funding from the Legislature).  UC provided funding to  
          continue the grants program in a modified form for one  
          additional year and it continues to be called the "Roman Reed  
          Program" for continuity.  These funds were distributed in 2012.   
          A panel of experts from the SCI field assembled to provide  
          outside peer review of Roman Reed Grant applications.  Submitted  
          grants were evaluated for scientific merit and the top 10 were  
          funded.  A total of $749,311 in grants was awarded.  

          Baybio, the California Healthcare Institute, and others write in  
          support that California is a leader in neurological and SCI  
          research.  Baybio further states in support that if we are to  
          maintain our prominence in this field of research, additional  
          funding for SCI research to replace GF contributions must be  
          found or we risk losing the matching funds and other grants that  
          we successfully attracted in the recent past.  According to  
          supporters, many discoveries supported by the Roman Reed Fund  
          are in the pipeline toward clinical translation including:  1)  
          the world's first clinical trial for stem cells for SCI; 2) a  
          treatment initially developed for SCI in clinical trials for  
          inflammatory bowel disease; and, 3) new surgical techniques  
          developed to treat people with nerve injuries.  

          The California Catholic Conference writes in opposition that  
          although recent amendments have shifted the funding from traffic  
          fines to the GF, this bill continues the unfortunate policy of  
          spending money on speculative research.  This opposition points  
          out that at a time in which we have cut funding for our state's  
          safety net-upon which our poor and vulnerable Californians  
          rely-it is highly inappropriate to divert money to University  
          researchers. 











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          GOVERNOR'S VETO MESSAGE  :

               While the measure strives to do only good - namely  
               advance research and cures for spinal cord injury -  
               appropriating yet more state General Fund dollars to  
               University of California for a select purpose is not  
               the answer.  

               After several years of painful cuts, last January, I  
               proposed substantial budget increases for University  
               of California ($511 million over four years) with  
               maximum flexibility for their funding, so long as they  
               did not increase tuition.  The 2013 Budget Act  
               provided the first portion of that increased  
               investment.

               Research is a core mission of the University of  
               California.  As such, it is entirely within the  
               university system's discretion to fund the Spinal Cord  
               Research Program, or any other project it deems of  
               value.  For that reason, I have consistently chosen  
               not to support special earmarks in the University of  
               California's budget and leave it to the university -  
               as deeply steeped in innovation and research as it is  
               - to make funding decisions like this.


           Analysis Prepared by  :    Marjorie Swartz / HEALTH / (916)  
          319-2097 


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