BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 836 (Corbett) - Cal-BRAIN Act of 2014
          
          Amended: May 13, 2014           Policy Vote: Education 
          Urgency: No                     Mandate: No
          Hearing Date: May 23, 2014      Consultant: Jacqueline  
          Wong-Hernandez
          
          SUSPENSE FILE. AS AMENDED.
          
          
          Bill Summary: SB 836 requests the University of California (UC)  
          to establish the California Blueprint for Research to Advance  
          Innovations in Neuroscience Act of 2014 or the "Cal-BRAIN  
          program," as specified.

          Fiscal Impact (as approved on May 23, 2014): Approximately $200  
          million (General Fund) over four years for the UC to establish  
          the Cal-BRAIN program. Substantial ongoing state costs,  
          potentially offset to an unknown degree by federal and private  
          funds.

          Background: The California Constitution establishes the UC, a  
          public trust to be administered by the Regents of the UC, and  
          grants the Regents full powers of organization and government,  
          subject only to such legislative control as may be necessary to  
          ensure security of its funds, compliance with the terms of its  
          endowments, statutory requirements around competitive bidding  
          and contracts, sales of property and the purchase of materials,  
          goods and services. 
          (Article IX, Section (9) (a) of the California Constitution)

          Existing law further provides that statutes related to UC are  
          applicable only to the extent that the Regents of UC make such  
          provisions applicable. (Education Code � 67400)

          In 2013, the Obama administration unveiled the Brain Research  
          through Advancing Innovative Neurotechnologies (BRAIN)  
          Initiative, which is a collaborative project that will map the  
          activity of the human brain with a proposed investment of up to  
          $3 billion over ten years. For federal fiscal year 2014,  
          approximately $100 million is being identified for allocation  
          toward this endeavor with the National Institutes of Health  








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          (NIH), the National Science Foundation (NSF), and the Defense  
          Advanced Research Projects Agency (DARPA) working in close  
          collaboration. 

          Proposed Law: This bill requests the UC to establish the  
          Cal-BRAIN program to leverage California's research assets and  
          the federal BRAIN Initiative funding opportunities to accelerate  
          the development of brain mapping techniques. This bill  
          identifies goals for the Cal-BRAIN program, and requests that  
          the UC administer the Cal-BRAIN program consistent with all of  
          the following:

             1)   Convening stakeholders from public and private research  
               institutions, biotechnology and high technology companies,  
               and venture capital firms to develop the governing  
               structure of the Cal-BRAIN program.
             2)   Adopting a research plan that identifies milestones for  
               achieving the goals of the Cal-BRAIN program.

             3)   Establishing competitive, merit-based opportunities for  
               interested public and private California research  
               institutions to apply for Cal-BRAIN program funding.

             4)   Maintaining the flexibility to adjust the Cal-BRAIN  
               program's priorities and focus based upon knowledge gained  
               from scientific discoveries.

             5)   Establishing a technology transfer program to identify  
               and accelerate the commercial application of both early and  
               late-stage discoveries and technologies from the Cal-BRAIN  
               program into the marketplace and to promote new and  
               expanded technology sectors in the state.

             6)   Soliciting contributions to the Cal-BRAIN program with a  
               goal of achieving a nonstate funding match that meets or  
               exceeds the financial investment by the state.

          This bill specifies that it shall be implemented only to the  
          extent that adequate funding for its purposes, as determined by  
          the UC Regents, is appropriated to the UC in the annual Budget  
          Act or other statute.

          Staff Comments: This bill only goes into effect when, and to the  
          extent that "adequate funding for its purposes, as determined by  








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          the Regents of the UC, is appropriated to the UC in the annual  
          Budget Act or other statute." However, placing the Cal-BRAIN  
          program in statute creates cost pressure to fund it, and to do  
          so at the level that the UC believes is sufficient.

          The UC envisions Cal-BRAIN as a research program with two hubs:  
          one in southern California located at UC San Diego and the other  
          in northern California located at the Lawrence Berkeley National  
          Laboratory. The UC estimates that establishing the Cal-BRAIN  
          program will cost $200 million in state funding over 4 years, of  
          which $100 million will go to the northern hub and $100 million  
          to the southern hub. The funding would support collaborative  
          research projects statewide, open to all California research  
          institutions that can contribute expertise, and would be used to  
          leverage private sector (venture capital) investment,  
          philanthropic contributions, and any available federal funds.

           Author's amendments: Made clarifying modifications to the  
          structure of the Cal-BRAIN program, and other technical changes.