This measure would promote the Los Angeles Basin as a bioscience hub to provide new economic opportunity for the State of California, and would declare the intent of the Legislature to develop and encourage state and local policy proposals that focus on the Los Angeles Basin bioscience industry.

This measure would promote the Los Angeles Basin as a bioscience hub to provide new economic opportunity for the State of California, and would declare the intent of the Legislature to develop and encourage state and local policy proposals that focus on the Los Angeles Basin bioscience industry.

This measure would promote the Los Angeles Basin as a bioscience hub to provide new economic opportunity for the State of California, and would declare the intent of the Legislature to develop and encourage state and local policy proposals that focus on the Los Angeles Basin bioscience industry.

WHEREAS, The 21st Century is often referred to as the Bio Century because biosciences are at the forefront of both creativity and innovation, representing a convergence point for engineering, information technology, nanosciences, communication, and media; and

WHEREAS, In 2012, President Barack Obama released the National Bioeconomy Blueprint, noting that the biological sciences, the bioeconomy, is a large and rapidly growing segment of the world economy that provides substantial public benefit; and

WHEREAS, California has been and will continue to be at the forefront of developing an innovative economy. First, Silicon Valley ushered in the computer age. Now, the Los Angeles Basin is poised to become the epicenter of biotechnology with its academic institutions, training centers, companies, and communities. The Los Angeles bioscience industry has been a consistent growth industry even during the recession and recovery years. In bioscience industries, employment in Los Angeles County rose from 37,759 jobs in 2001 to 42,211 in 2010, an 11.8 percent increase; and

WHEREAS, The Los Angeles Unified School District (LAUSD), the second largest school district in the nation with over 1,100 schools and an enrollment of over 415,000 low-income students, offers 81 science, technology, engineering, and math (STEM) programs to its elementary, middle, and high school students. The number of kindergarten and grades 1 to 12, inclusive, students in LAUSD and other school districts in the Los Angeles Basin who have access to STEM programs must be expanded as these students are Californias future workforce; and

WHEREAS, Students who attend schools in Los Angeless lowest socioeconomic neighborhoods are being overlooked for their potential to enter and succeed in highly technical fields, including bioscience. Californias kindergarten and grades 1 to 12, inclusive, public school system and the states public and private universities must collaborate to establish a pipeline that provides concrete opportunities for low-income, underrepresented students to pursue higher education in scientific fields of study; and

WHEREAS, The Public Policy Institute of California (PPIC) reveals the state will be 1.1 million bachelor degrees short by 2030. Furthermore, PPIC states Californias best approach to closing its skills gap will be to improve the educational attainment of its residents. Currently, California ranks near the bottom of all states, 47th, in the share of recent high school graduates who enroll in four-year colleges or universities; and

WHEREAS, For the majority of low-income, underrepresented students, their access to a higher education remains their passport to economic security. If these students earn a STEM degree and are able to work in the bioscience industry, they can break the cycle of income inequality. According to PPIC, workers with engineering degrees earn a median annual wage of $96,000, which is almost three times more than an individual who earns only a high school diploma; and

WHEREAS, In partnership with the leading higher education institutions in the area, state and local governments need to promote and develop a competitive bioscience industry in Los Angeles. First, the Los Angeles Basin is home to several leading academic medical centers that attract nearly $1 billion in National Institutes of Health funding. Second, in 2010, the Los Angeles biotech workforce was comprised of 42,000 employees with average wages of $72,052. Third, the areas major research universities, such as the University of California at Los Angeles, the University of Southern California, and the California Institute of Technology, created 1,118 invention disclosures and 43 startups in 2010; and

WHEREAS, Local governments must work in partnership to promote and develop the Los Angeles Basin to address the fact that college graduates are leaving this area to pursue biotechnology job opportunities elsewhere. Annually, universities in the Los Angeles Basin produce over 5,000 college graduates in science, technology, and engineering. Yet, the Los Angeles Basin ranks 14th nationwide in biotech investment because many of these graduates leave to pursue jobs in other cities, such as San Francisco and San Diego, and in other states where biotech infrastructure has already been developed; and

WHEREAS, Within the Los Angeles Basin, the University of Southern California and local governments are working to establish a new biotech park that will create up to 3,000 new construction jobs and nearly 4,000 permanent jobs that will be accessible to local communities. This, and other potential plans at Harbor-UCLA Medical Center, Olive View-UCLA Medical Center, and Rancho Los Amigos National Rehabilitation Center, will create new potential economic, educational, and training opportunities; and

WHEREAS, Local governments are also in the initial stages of developing plans to address the creation and expansion of the biotech industry. In March 2015, the City of Los Angeles introduced a motion to analyze the estimated fiscal and economic impact of local biotech tax credits to encourage growth and development. In 2012, the Los Angeles County Board of Supervisors commissioned a feasibility study for advancing the bioscience industry in the region that focused on commercializing new technologies, keeping and attracting new bioscience talent, collaborating with university technology transfer offices, and marketing the region to new startup companies and established national and international bioscience companies; and

WHEREAS, In order for the Los Angeles Basin to emerge as a bioscience hub, state and local governments must move beyond the planning stages. It is critical they take concrete action to promote and invest in this industry to improve the economic opportunity for the Los Angeles Basin residents and businesses; now, therefore, be it

Resolved by the Senate of the State of California, the Assembly thereof concurring, That promoting the Los Angeles Basin as a bioscience hub will provide a new economic engine for the State of California, in particular for underserved areas; and be it further

Resolved, It is the intent of the Legislature to develop and encourage, through the enactment of legislation, state and local public policy proposals that focus on this large, fast-growing, and diverse industry to establish manufacturing and research activities for the purpose of providing high-quality jobs while advancing public health; and be it further

Resolved, That the Secretary of the Senate transmit copies of this resolution to the author for appropriate distribution.

WHEREAS, The 21st Century is often referred to as the Bio Century because biosciences are at the forefront of both creativity and innovation, representing a convergence point for engineering, information technology, nanosciences, communication, and media; and

WHEREAS, In 2012, President Barack Obama released the National Bioeconomy Blueprint, noting that the biological sciences, the bioeconomy, is a large and rapidly growing segment of the world economy that provides substantial public benefit; and

WHEREAS, California has been and will continue to be at the forefront of developing an innovative economy. First, Silicon Valley ushered in the computer age. Now, the Los Angeles Basin is poised to become the epicenter of biotechnology with its academic institutions, training centers, companies, and communities. The Los Angeles bioscience industry has been a consistent growth industry even during the recession and recovery years. In bioscience industries, employment in Los Angeles County rose from 37,759 jobs in 2001 to 42,211 in 2010, an 11.8 percent increase; and

WHEREAS, The Los Angeles Unified School District (LAUSD), the second largest school district in the nation with over 1,100 schools and an enrollment of over 415,000 low-income students, offers 81 science, technology, engineering, and math (STEM) programs to its elementary, middle, and high school students. The number of kindergarten and grades 1 to 12, inclusive, students in LAUSD and other school districts in the Los Angeles Basin who have access to STEM programs must be expanded as these students are Californias future workforce; and

WHEREAS, Students who attend schools in Los Angeless lowest socioeconomic neighborhoods are being overlooked for their potential to enter and succeed in highly technical fields, including bioscience. Californias kindergarten and grades 1 to 12, inclusive, public school system and the states public and private universities must collaborate to establish a pipeline that provides concrete opportunities for low-income, underrepresented students to pursue higher education in scientific fields of study; and

WHEREAS, The Public Policy Institute of California (PPIC) reveals the state will be 1.1 million bachelor degrees short by 2030. Furthermore, PPIC states Californias best approach to closing its skills gap will be to improve the educational attainment of its residents. Currently, California ranks near the bottom of all states, 47th, in the share of recent high school graduates who enroll in four-year colleges or universities; and

WHEREAS, For the majority of low-income, underrepresented students, their access to a higher education remains their passport to economic security. If these students earn a STEM degree and are able to work in the bioscience industry, they can break the cycle of income inequality. According to PPIC, workers with engineering degrees earn a median annual wage of $96,000, which is almost three times more than an individual who earns only a high school diploma; and

WHEREAS, In partnership with the leading higher education institutions in the area, state and local governments need to promote and develop a competitive bioscience industry in Los Angeles. First, the Los Angeles Basin is home to several leading academic medical centers that attract nearly $1 billion in National Institutes of Health funding. Second, in 2010, the Los Angeles biotech workforce was comprised of 42,000 employees with average wages of $72,052. Third, the areas major research universities, such as the University of California at Los Angeles, the University of Southern California, and the California Institute of Technology, created 1,118 invention disclosures and 43 startups in 2010; and

WHEREAS, Local governments must work in partnership to promote and develop the Los Angeles Basin to address the fact that college graduates are leaving this area to pursue biotechnology job opportunities elsewhere. Annually, universities in the Los Angeles Basin produce over 5,000 college graduates in science, technology, and engineering. Yet, the Los Angeles Basin ranks 14th nationwide in biotech investment because many of these graduates leave to pursue jobs in other cities, such as San Francisco and San Diego, and in other states where biotech infrastructure has already been developed; and

WHEREAS, Within the Los Angeles Basin, the University of Southern California and local governments are working to establish a new biotech park that will create up to 3,000 new construction jobs and nearly 4,000 permanent jobs that will be accessible to local communities. This, and other potential plans at Harbor-UCLA Medical Center, Olive View-UCLA Medical Center, and Rancho Los Amigos National Rehabilitation Center, will create new potential economic, educational, and training opportunities; and

WHEREAS, Local governments are also in the initial stages of developing plans to address the creation and expansion of the biotech industry. In March 2015, the City of Los Angeles introduced a motion to analyze the estimated fiscal and economic impact of local biotech tax credits to encourage growth and development. In 2012, the Los Angeles County Board of Supervisors commissioned a feasibility study for advancing the bioscience industry in the region that focused on commercializing new technologies, keeping and attracting new bioscience talent, collaborating with university technology transfer offices, and marketing the region to new startup companies and established national and international bioscience companies; and

WHEREAS, In order for the Los Angeles Basin to emerge as a bioscience hub, state and local governments must move beyond the planning stages. It is critical they take concrete action to promote and invest in this industry to improve the economic opportunity for the Los Angeles Basin residents and businesses; now, therefore, be it

Resolved by the Senate of the State of California, the Assembly thereof concurring, That promoting the Los Angeles Basin as a bioscience hub will provide a new economic engine for the State of California, in particular for underserved areas; and be it further

Resolved, It is the intent of the Legislature to develop and encourage, through the enactment of legislation, state and local public policy proposals that focus on this large, fast-growing, and diverse industry to establish manufacturing and research activities for the purpose of providing high-quality jobs while advancing public health; and be it further

Resolved, That the Secretary of the Senate transmit copies of this resolution to the author for appropriate distribution.

WHEREAS, The 21st Century is often referred to as the Bio Century because biosciences are at the forefront of both creativity and innovation, representing a convergence point for engineering, information technology, nanosciences, communication, and media; and

WHEREAS, In 2012, President Barack Obama released the National Bioeconomy Blueprint, noting that the biological sciences, the bioeconomy, is a large and rapidly growing segment of the world economy that provides substantial public benefit; and

WHEREAS, California has been and will continue to be at the forefront of developing an innovative economy. First, Silicon Valley ushered in the computer age. Now, the Los Angeles Basin is poised to become the epicenter of biotechnology with its academic institutions, training centers, companies, and communities. The Los Angeles bioscience industry has been a consistent growth industry even during the recession and recovery years. In bioscience industries, employment in Los Angeles County rose from 37,759 jobs in 2001 to 42,211 in 2010, an 11.8 percent increase; and

WHEREAS, The Los Angeles Unified School District (LAUSD), the second largest school district in the nation with over 1,100 schools and an enrollment of over 415,000 low-income students, offers 81 science, technology, engineering, and math (STEM) programs to its elementary, middle, and high school students. The number of kindergarten and grades 1 to 12, inclusive, students in LAUSD and other school districts in the Los Angeles Basin who have access to STEM programs must be expanded as these students are Californias future workforce; and

WHEREAS, Students who attend schools in Los Angeless lowest socio-economic neighborhoods are being overlooked for their potential to enter and succeed in highly technical fields, including bioscience. Californias kindergarten and grades 1 to 12, inclusive, public school system and the states public and private universities must collaborate to establish a pipeline that provides concrete opportunities for low-income, underrepresented students to pursue higher education in scientific fields of study; and

WHEREAS, The Public Policy Institute of California (PPIC) reveals the state will be 1.1 million bachelor degrees short by 2030. Furthermore, PPIC states Californias best approach to closing its skills gap will be to improve the educational attainment of its residents. Currently, California ranks near the bottom of all states, 47th, in the share of recent high school graduates who enroll in four-year colleges or universities; and

WHEREAS, For the majority of low-income, underrepresented students, their access to a higher education remains their passport to economic security. If these students earn a STEM degree and are able to work in the bioscience industry, they can break the cycle of income inequality. According to PPIC, workers with engineering degrees earn a median annual wage of $96,000, which is almost three times more than an individual who earns only a high school diploma; and

WHEREAS, In partnership with the leading higher education institutions in the area, state and local governments need to promote and develop a competitive bioscience industry in Los Angeles. First, the Los Angeles Basin is home to several leading academic medical centers that attract nearly $1 billion in National Institutes of Health Funding. Second, in 2010, the Los Angeles biotech workforce was comprised of 42,000 employees with average wages of $72,052. Third, the areas major research universities, such as the University of California at Los Angeles, the University of Southern California, and the California Institute of Technology, created 1,118 invention disclosures and 43 startups in 2010; and

WHEREAS, Local governments must work in partnership to promote and develop the Los Angeles Basin to address the fact that college graduates are leaving this area to pursue biotechnology job opportunities elsewhere. Annually, universities in the Los Angeles Basin produce over 5,000 college graduates in science, technology, and engineering. Yet, the Los Angeles Basin ranks 14th nationwide in biotech investment because many of these graduates leave to pursue jobs in other cities, such as San Francisco and San Diego, and in other states where biotech infrastructure has already been developed; and

WHEREAS, Within the Los Angeles Basin, the University of Southern California and local governments are working to establish a new biotech park that will create up to 3,000 new construction jobs and nearly 4,000 permanent jobs that will be accessible to local communities. This, and other potential plans at Harbor-UCLA Medical Center, Olive View-UCLA Medical Center, and Rancho Los Amigos National Rehabilitation Center, will create new potential economic, educational, and training opportunities; and

WHEREAS, Local governments are also in the initial stages of developing plans to address the creation and expansion of the biotech industry. In March 2015, the City of Los Angeles introduced a motion to analyze the estimated fiscal and economic impact of local biotech tax credits to encourage growth and development. In 2012, the Los Angeles County Board of Supervisors commissioned a feasibility study for advancing the bioscience industry in the region that focused on commercializing new technologies, keeping and attracting new bioscience talent, collaborating with university technology transfer offices, and marketing the region to new start-up companies and established national and international bioscience companies; and

WHEREAS, In order for the Los Angeles Basin to emerge as a bioscience hub, state and local governments must move beyond the planning stages. It is critical they take concrete action to promote and invest in this industry to improve the economic opportunity for the Los Angeles Basin residents and businesses; now, therefore, be it

Resolved by the Senate of the State of California, the Assembly thereof concurring, That promoting the Los Angeles Basin as a bioscience hub will provide a new economic engine for the State of California, in particular for underserved areas; and be it further

Resolved, It is the intent of the Legislature to develop and encourage, through the enactment of legislation, state and local public policy proposals that focus on this large, fast-growing, and diverse industry to establish manufacturing and research activities for the purpose of providing high-quality jobs while advancing public health; and be it further

Resolved, That the Secretary of the Senate transmit copies of this resolution to the author for appropriate distribution.

SENATE THIRD READING

STR Bill Id:

Author:(De León)

As Introduced Ver:

Majority vote

SENATE VOTE: 38-0

SUMMARY: Memorializes the California Legislature's support for promoting the Los Angeles Basin as a bioscience hub and to leverage these activities in a manner that provides educational and economic opportunities for underserved areas, as specified. Specifically, this bill:

1) Makes findings and declarations, which include, but are not limited to:

• 1. The 21st Century is often referred to as the "Bio Century" because biosciences are at the forefront of both creativity and innovation, representing a convergence point for engineering, information technology, nanosciences, communication, and media;
  2. California has been and will continue to be at the forefront of developing an innovative economy. The Los Angeles bioscience industry has been a consistent growth industry even during the recession and recovery years. In bioscience industries, employment in Los Angeles County rose from 37,759 jobs in 2001 to 42,211 in 2010, an 11.8% increase;
  3. The Los Angeles Unified School District (LAUSD) offers 81 science, technology, engineering, and math (STEM) programs to its 1,100 elementary, middle, and high school students. There is, however, still a need to expand access to STEM programs to the thousands of students attending public and private K-12 institutions within the region;
  4. There are over 415,000 students within LAUSD that come from low-income households. Students who attend schools in the lowest socio-economic neighborhoods are being overlooked for their potential to enter and succeed in highly technical fields, including bioscience. To address these challenges, there is a need for California's public school system and the state's public and private universities to collaborate to establish a pipeline that provides concrete opportunities for low-income, underrepresented students to pursue higher education in scientific fields of study;
  5. Addressing the needs of Los Angeles' underserved areas is important to meet the growing demand for STEM-skilled workforce. The Public Policy Institute of California (PPIC) reports the state will be short 1.1 million bachelor degrees short by 2030. Currently, California ranks near the bottom of all states, 47th, in the share of recent high school graduates who enroll in four-year colleges or universities;
  6. For the majority of low-income, underrepresented students, their access to a higher education remains their passport to economic security. If these students earn a STEM degree and are able to work in the bioscience industry, they can break the cycle of income inequality;
  7. The Los Angeles region has many unique resources and opportunities to support a bioscience hub, including, but not limited to, the ability of its academic medical centers to attract nearly $1 billion in National Institutes of Health funding; the skills of the 42,000 current biotech employees; the ability of major research universities to spur 1,118 invention disclosures and 43 startups in 2010; a proposed biotech park, sponsored by the University of California and supported by its surrounding communities, that is estimated to create up to 3,000 new construction jobs and nearly 4,000 permanent jobs; and the potential plans at the Harbor-University of California Los Angeles (UCLA) Medical Center, Olive View-UCLA Medical Center, and Rancho Los Amigos National Rehabilitation Center to support other new economic, educational, and training opportunities;
  8. There is a need to address the fact that college graduates are leaving the Los Angeles area to pursue biotechnology job opportunities elsewhere. Annually, universities in the Los Angeles Basin produce over 5,000 college graduates in science, technology, and engineering. Yet, the Los Angeles Basin ranks 14th nationwide in biotech investment because many of these graduates leave to pursue jobs in other cities, such as San Francisco and San Diego, and in other states where biotech infrastructure has already been developed; and
  9. There is a need for the state and local governments to move beyond the planning stages if the Los Angeles Basin is to emerge as a bioscience hub. It is critical that concrete actions be taken to promote and invest in biosciences in order to improve the economic opportunity for the Los Angeles Basin residents and businesses.

1. Resolves that the California Legislature agrees that promoting the Los Angeles Basin as a bioscience hub will provide a new economic engine for California and in particular for people in underserved areas.
2. Resolves that it is the intent of the Legislature to develop and encourage proposals that focus on this large, fast-growing, and diverse industry; and to establish manufacturing and research activities for the purpose of providing high-quality jobs, while advancing public health.

FISCAL EFFECT: None

COMMENTS: Los Angeles is in the process of developing their region into the next big biotech hub. Civic and business leaders are collaborating on a number of initiatives that build on the region's world class research institutions, healthy business climate, and growing number of bioscience businesses. As this alignment of interests deepens, questions arise as to what this innovation hub will mean to Los Angeles' historically underserved populations. Without a focused effort on creating an inclusive prosperity model, the economic benefits of a biotech hub could be limited to a few.

This resolution supports Los Angeles' efforts to form a regional biotechnology hub, while simultaneously calling on local governments, academia, and the private sector to aggressively take actions that result in greater economic opportunity for all residents and businesses.

Biotechnology Career Pathways in Underserved Communities: Typically, the focus of career pathways to biotechnology jobs lead to Bachelor and higher level degrees in STEM-related fields. While appropriate for some individuals, this approach fails to recognize the overall workforce needs of the bioscience industry. For a strong biotechnology hub, STEM workers are needed at all education levels. Developing and implementing bioscience career pathways that have multiple end points deepens the region's comparative advantage while creating new employment opportunities for underserved communities and populations.

A 2013 Brookings study, The Hidden STEM Economy, reported that over 26 million jobs exist in the United States (U.S.) that require STEM expertise developed through a high school or two-year technical training certificate/degree. These workers are sometimes referred to as the "technical" STEM workforce. Advanced degree STEM employment is referred to as the "professional" STEM workforce. The technical STEM workforce, as compared to the professional STEM workforce is much more diverse. Key features include:

1. Over 92% of the technical STEM workers are native born;
2. Blacks and Hispanics comprised a significant percentage of the technical STEM workforce; and,
3. Employment in the technical STEM areas is more geographically dispersed than the professional STEM workforce opportunities, which are focused around tech-heavy regions.

LAUSD recognizes these opportunities and currently offers a range of linked learning career pathways in 11 industry sectors, including those related to Health Science and Medical Technology; Energy, Environmental and Utilities; and Engineering. Through these programs, the LAUSD supports career pathway programs at 15 middle and high school campuses with curriculum focused on STEM subject matter.

This resolution calls on public and private sector stakeholders to leverage these programs and address further gaps in linking underserved communities and populations with bioscience employment opportunities.

Economic Advantages of a Biotechnology Hub: Research shows that workers within metro areas with high concentrations of STEM businesses receive 11% higher wages than workers employed in the same field and doing the same work in metro areas with low concentrations. This means that as Los Angeles continues to develop its bioscience hub, workers across the board will benefit. Businesses will also benefit from re-gaining access to the significant number of highly qualified professional STEM workers who are now working in other regions, as well as hiring from an increasing number of technical STEM works who are graduating from well articulated bioscience career pathways with certificates, licenses, and two- degrees.

The policy analysis includes a further discussion of bioscience industry and challenges facing the bioscience industry in Los Angeles.

Analysis Prepared by: Toni Symonds / J., E.D., & E. / (916) 319-2090 FN: 0004984

Date of Hearing: August 24, 2016

ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT, AND THE ECONOMY

Eduardo Garcia, Chair

SBPCA Bill Id:SCR 161

Author:(De León) – As Introduced Ver:August 2, 2016

SENATE VOTE: 38-0

SUBJECT: Los Angeles Basin: bioscience hub

SUMMARY: Memorializes the California Legislature's support for promoting the Los Angeles Basin as a bioscience hub and to leverage these activities in a manner that provides educational and economic opportunities for underserved areas, as specified. Specifically, this bill:

1. Makes findings and declarations, which include, but are not limited to:
   1. The 21st Century is often referred to as the “Bio Century” because biosciences are at the forefront of both creativity and innovation, representing a convergence point for engineering, information technology, nanosciences, communication, and media;
   2. California has been and will continue to be at the forefront of developing an innovative economy. The Los Angeles bioscience industry has been a consistent growth industry even during the recession and recovery years. In bioscience industries, employment in Los Angeles County rose from 37,759 jobs in 2001 to 42,211 in 2010, an 11.8% increase;
   3. The Los Angeles Unified School District (LAUSD) offers 81 science, technology, engineering, and math (STEM) programs to its 1,100 elementary, middle, and high school students. There is, however, still a need to expand access to STEM programs to the thousands of students attending public and private K-12 institutions within the region;
   4. There are over 415,000 students within LAUSD that come from low-income households. Students who attend schools in the lowest socio-economic neighborhoods are being overlooked for their potential to enter and succeed in highly technical fields, including bioscience. To address these challenges, there is a need for California’s public school system and the state’s public and private universities to collaborate to establish a pipeline that provides concrete opportunities for low-income, underrepresented students to pursue higher education in scientific fields of study;
   5. Addressing the needs of Los Angeles' underserved areas is important to meet the growing demand for STEM-skilled workforce. The Public Policy Institute of California (PPIC) reports the state will be short 1.1 million bachelor degrees short by 2030. Currently, California ranks near the bottom of all states, 47th, in the share of recent high school graduates who enroll in four-year colleges or universities;
   6. For the majority of low-income, underrepresented students, their access to a higher education remains their passport to economic security. If these students earn a STEM degree and are able to work in the bioscience industry, they can break the cycle of income inequality. According to PPIC, workers with engineering degrees earn a median annual wage of $96,000, which is almost three times the salary of an individual with only a high school diploma;
   7. The Los Angeles region has many unique resources and opportunities to support a bioscience hub, including, but not limited to, the ability of its academic medical centers to attract nearly $1 billion in National Institutes of Health funding; the skills of the 42,000 current biotech employees; the ability of major research universities to spur 1,118 invention disclosures and 43 startups in 2010; a proposed biotech park, sponsored by the University of California and supported by its surrounding communities, that is estimated to create up to 3,000 new construction jobs and nearly 4,000 permanent jobs; and the potential plans at the Harbor-UCLA Medical Center, Olive View-UCLA Medical Center, and Rancho Los Amigos National Rehabilitation Center to support other new economic, educational, and training opportunities;
   8. There is a need to address the fact that college graduates are leaving the Los Angeles area to pursue biotechnology job opportunities elsewhere. Annually, universities in the Los Angeles Basin produce over 5,000 college graduates in science, technology, and engineering. Yet, the Los Angeles Basin ranks 14th nationwide in biotech investment because many of these graduates leave to pursue jobs in other cities, such as San Francisco and San Diego, and in other states where biotech infrastructure has already been developed; and
   9. There is a need for the state and local governments to move beyond the planning stages if the Los Angeles Basin is to emerge as a bioscience hub. It is critical that concrete actions be taken to promote and invest in biosciences in order to improve the economic opportunity for the Los Angeles Basin residents and businesses.
2. Resolves that the California Legislature agrees that promoting the Los Angeles Basin as a bioscience hub will provide a new economic engine for California and in particular for people in underserved areas.
3. Resolves that it is the intent of the Legislature to develop and encourage proposals that focus on this large, fast-growing, and diverse industry; and to establish manufacturing and research activities for the purpose of providing high-quality jobs, while advancing public health.
4. Provides that the Secretary of the Senate will transmit copies of this resolution to the author for appropriate distribution.

FISCAL EFFECT: None

POLICY ISSUE FRAME: Los Angeles is in the process of developing their region into the next big biotech hub. Civic and business leaders are collaborating on a number of initiatives that build on the region's world class research institutions, healthy business climate, and growing bioscience businesses. As the alignment of interests deepens, questions arise as to what this innovation hub will mean to Los Angeles' historically underserved populations. Without a focused effort on creating an inclusive prosperity model, the economic benefits of a biotech hub could be limited to a few.

SCR 161 supports Los Angeles’ efforts to form a regional biotechnology hub, while simultaneously calling on local governments, academia, and the private sector to aggressively take actions that result in greater economic opportunity for all the residents and businesses.

The comment section of the analysis includes a discussion of bioscience industry, challenges facing the bioscience industry in Los Angeles, and current STEM career pathway programs offered through the LAUSD.

COMMENTS:

1. What is Bioscience? Bioscience businesses or biotechnology refer to biology-based businesses that develop technologies and products that help to improve public health through cellular and biomolecular processes. Modern bioscience technology companies develop products and services across a range of industries, including medical, environmental, energy, agriculture, and manufacturing processes, to name but a few.
2. California's Innovation Economy: California is home to over 39 million people, providing the state with one of the most diverse populations in the world, often comprising the single largest concentration of nationals outside their native country. In 2015, this diverse group of business owners and workers produced $2.4 trillion in goods and services; $174.1 billion of which were exported to over 220 countries around the world. If California were a country, its 2015 GDP would place it 6th among nations.

Many policy makers and economists describe California as having not a single economy, but having a highly integrated network of a dozen or so regional economies. While biotech has a comparative advantage in some regions, information technology drives growth in others. Chart 1 displays information from the U.S. Census Bureau on California's private industry sectors based on its contribution to the state's GDP. In 2015, the finance and insurance sector provided the largest economic contribution to the state's overall GDP, $525 billion of the $2.4 trillion. Firms in this industry sector include entities that raise funds, pool risk, and facilitate financial transactions. The dominance of California's finance and insurance sector, which includes venture capital, is one of the foundational drivers of the state's high level of competency and global competitiveness in the technology-related sectors. One estimate suggests that it takes over a year of work and costs an average of $1.2 billion to bring a new biotechnology therapy to market. Without patient capital, like that available through venture funds, these types of advances cannot occur.

Another important dimension of the California economy is workforce. Chart 2 (on the following page) displays employment information for the same industry sectors as above, plus those individuals employed in government. Based on employment, the trade, transportation, and utilities sector is largest, employing 2.9 million people in California, which is 15.5% of all jobs. While the U.S. is a large economic market, more than 80% of the world's purchasing power is located outside the U.S. The export and important of bio-based products, as well as research practices and other commercialization issues, are key areas covered in modern trade agreements.

Jobs in this sector also support employment in other high paying industry sectors including Manufacturing (8.1%), Professional Services (13.1%), and Financial Activities (4.1%).

Manufacturing is considered the "gold standard" for jobs because of its high wages, inclusion of small businesses within its global supply chains, and having a high multiplier effect on related jobs. The Milken Institute estimates that for every job created in manufacturing, 2.5 jobs are created in other sectors. In some industry sectors, such as electronic computer manufacturing, the multiplier effect is 16:1. A PPIC study noted in SCR 161 that workers with "engineering degrees earn a median annual wage of $96,000, which is almost three time more than an individual earns with only a high school diploma."

While California remains the largest manufacturing state, over the past few decades employment, new facilities, and expansions of existing facilities have lagged behind most other states. Expanding the biotech sector in Los Angeles to include more manufacturing will also require addressing broader economic challenges. The reward for bringing in new manufacturing, however, would be more high paying jobs and economic benefits across multiple industry sectors.

1. Biotechnology and the California Economy: California has the largest bioscience industry employment in the U.S., with more than 235,000 jobs (15% of the national sector). The state's concentration of bioscience jobs is 28% greater than the national average. Three specialized areas (medical devices and equipment, research, testing and medical labs, and drugs and pharmaceuticals) contributed 5% of all job growth within state's bioscience-related industries between 2007 and 2012.

Moreover, bioscience businesses have a positive correlation to overall employment impact, with a direct-effect employment multiplier of 5.4. Chart 3 displays information on firms, employment, and wages in California bioscience-related industries in 2012. Applying the 5.4 multiplier to total 2012 employment (235,864 jobs) is estimated to have supported the creation of 1,282,795 across all industry sectors.

California's robust bioscience industry also has a positive impact on the state's share of bioscience venture capital. From 2009-2013, California-based firms captured $19.2 billion of the $49.4 billion invested nationally in biosciences for just over 38% of all venture investment dollars. Firms specializing in medical therapeutic and human ailment-focused products and services received the largest majority of funding (approximately $12.0 billion of the $19.2 billion).

The most current data shows that California receives the greatest economic benefit from the bioscience clusters in San Francisco and San Diego. By comparison to these nationally dominant regions, Los Angeles lags, significantly. In 2013, the San Francisco bay area received $1.15 billion in venture capital, while Los Angeles County received just $45.0 billion. One of the contributing factors is the lack of opportunity for post-graduate employment in the region, which some have suggested has resulted in a brain drain. While the region produces over 5,000 graduates annually, as compared 2,800 in the San Francisco bay area, a majority of those graduates must leave the Los Angeles area to seek work.

1. Biotechnology Career Pathways in Underserved Communities: Typically, the focus of career pathways to biotechnology jobs lead to Bachelor and higher level degrees in STEM-related fields. While appropriate for some individuals, this approach fails to recognize the overall workforce needs of the bioscience industry. For a strong biotechnology hub, STEM workers are needed at all education levels. Developing and implementing bioscience career pathways that have multiple end points deepens the region's comparative advantage while creating new employment opportunities for underserved communities and populations.

A 2013 Brookings study, The Hidden STEM Economy, reported that over 26 million jobs exist in the U.S. that require STEM expertise developed through a high school or two-year technical training certificate/degree. These workers are sometimes referred to as the "technical" STEM workforce. Advanced degree STEM employment is referred to as the "professional" STEM workforce. The technical STEM workforce, as compared to the professional STEM workforce is much more diverse. Key features include:

• Over 92% of the technical STEM workers are native born;
• Blacks and Hispanics comprised a significant percentage of the technical STEM workforce; and,
• Employment in the technical STEM areas is more geographically dispersed than the professional STEM workforce opportunities, which are focused around tech-heavy regions.

LAUSD recognizes these opportunities and currently offers a range of linked learning career pathways in 11 industry sectors, including those related to Health Science and Medical Technology; Energy, Environmental and Utilities; and Engineering. Through these programs, the LAUSD supports career pathway programs at 15 middle and high school campuses with curriculum focused on STEM subject matter.

SCR 161 calls on public and private sector stakeholders to leverage these programs and address further gaps in linking underserved communities and populations with bioscience employment opportunities.

1. Economic Advantages of a Biotechnology Hub: Research shows that workers within metro areas with high concentrations of STEM businesses receive 11% higher wages than workers employed in the same field and doing the same work in metro areas with low concentrations. This means that as Los Angeles continues to develop its bioscience hub, workers across the board will benefit. Businesses will also benefit from re-gaining access to the significant number of highly qualified professional STEM workers who are now working in other regions, as well as hiring from an increasing number of technical STEM works who are graduating from well articulated bioscience career pathways with certificates, licenses, and two- degrees.
2. Related Legislation: Below is a list of related legislation:
   1. AB 80 (Campos) Interagency Task Force on the Status of Boys and Men of Color: This bill would have established a 20-member Interagency Task Force on the Status of Boys and Men of Color. Issues to be addressed by the Task Force would include, but not be limited to, employment and wealth creation, health and safety, education, and juvenile justice. Status: Vetoed by the Governor, 2015. Governor’s Veto Message: How state policy can be tailored to promote the well-being of boys and men of color is profoundly important. These issues, however, are best addressed through concrete actions, not another non-binding commission. The Legislature and the Administration are working on the critical issues raised by this bill, such as the Local Control Funding Formula, healthcare expansion and criminal justice reform. Much more can be done, and I am committed to advancing this work.
   2. AB 288 (Holden) College and Career Pathways: This bill authorizes the governing board of a community college district to enter into a College and Career Access Pathways (CCAP) partnership with the governing board of a school district within its immediate service area, as specified, to offer or expand dual enrollment opportunities for students who may not already be college bound or who are underrepresented in higher education. The goal of the agreements is to develop seamless pathways for students from high school to community college for career-technical education or preparation for transfer, improve high school graduation rates, or help high school pupils achieve college and career readiness. The bill includes specific conditions which must be met prior to the adoption of such an agreement. The authority in this measure sunsets on January 1, 2022. Status: Signed by the Governor, Chapter 618, Statutes of 2015.
   3. AB 2642 (E. Garcia, C. Garcia, Eggman, Gomez) Barriers to Employment: This bill would have established the Breaking Barriers to Employment Initiative for the purpose of assisting individuals who have multiple barriers to employment to receive the remedial education and work readiness skills that will help them to successfully participate in training, apprenticeship, or employment opportunities that will lead to self-sufficiency and economic stability. Status: Held in the Assembly Committee on Appropriations, 2016.
   4. AB 2719 (E. Garcia) Out-of-School Youth and Workforce Preparation: This bill highlights the need for planning, monitoring, and serving the needs of out-of-school youth and individuals with employment barriers within the framework of the state's implementation of programs and use of funding received through the federal Workforce Investment and Opportunity Act. Status: Pending on the Senate Floor.
   5. SB 1050 (de Leon) Pipeline for Higher Education: This bill establishes a stronger pipeline from K-12 high schools, particularly those that enroll 75% or more low-income, English learner, and foster youth, to the University of California and other postsecondary educational institutions. More specifically, the bill:
      1. Establishes the College Readiness Subject Matter Project at UC to provide K-12 public school

staff professional development to improve “A-G” course completion rates, college-going rates,

and the college readiness of students.

• • 1. Establishes the K-12 College Readiness Block Grant to better prepare low-income high school

students for admission to postsecondary institutions.

• • 1. Requires UC, as a condition of receiving any enrollment funding in the 2016 State Budget, to do the following:
       1. Increase the admission to UC of students from high schools that enroll 75% or more low-income, English learner, and/or foster youth students (i.e., Local Control Funding Formula Plus Students).
       2. Provide additional support to first generation college students to help them succeed in college.

Status: Provisions included within the 2016-17 Budget Trailer bill for education.

REGISTERED SUPPORT / OPPOSITION:

Support

Eric Garcetti, Mayor of the City of Los Angeles

Los Angeles County Economic Development Corporation

Los Angeles Unified School District

University of California Office of the President

University of Southern California

Opposition

None Received

Analysis Prepared by: Toni Symonds and Peter Ansel / J., E.D., & E. / (916) 319-2090

 THIRD READING 

Bill No: SCR 161

Author: De León (D), et al.

Introduced: 8/2/16

Vote: 21

SUBJECT: Los Angeles Basin: bioscience hub

SOURCE: Author

DIGEST:

This resolution promotes the Los Angeles Basin as a bioscience hub to provide new economic opportunity for the State of California, and declares the intent of the Legislature to develop and encourage state and local policy proposals that focus on the Los Angeles Basin bioscience industry.

ANALYSIS: This resolution makes the following legislative findings:

1. California has been and will continue to be at the forefront of developing an innovative economy. First, Silicon Valley ushered in the computer age. Now, the Los Angeles Basin is poised to become the epicenter of biotechnology with its academic institutions, training centers, companies, and communities. The Los Angeles bioscience industry has been a consistent growth industry even during the recession and recovery years. In bioscience industries, employment in Los Angeles County rose from 37,759 jobs in 2001 to 42,211 in 2010, an 11.8 percent increase.
2. The Los Angeles Unified School District (LAUSD), the second largest school district in the nation with over 1,100 schools and an enrollment of over 415,000 low-income students, offers 81 science, technology, engineering, and math (STEM) programs to its elementary, middle, and high school students. The number of kindergarten and grades 1 to 12, inclusive, students in LAUSD and other school districts in the Los Angeles Basin who have access to STEM programs must be expanded as these students are California’s future workforce.
3. For the majority of low-income, underrepresented students, their access to a higher education remains their passport to economic security. If these students earn a STEM degree and are able to work in the bioscience industry, they can break the cycle of income inequality. According to the Public Policy Institute of California, workers with engineering degrees earn a median annual wage of $96,000, which is almost three times more than an individual who earns only a high school diploma.
4. In partnership with the leading higher education institutions in the area, state and local governments need to promote and develop a competitive bioscience industry in Los Angeles. First, the Los Angeles Basin is home to several leading academic medical centers that attract nearly $1 billion in National Institutes of Health Funding. Second, in 2010, the Los Angeles biotech workforce was comprised of 42,000 employees with average wages of $72,052. Third, the area’s major research universities, such as the University of California at Los Angeles, the University of Southern California, and the California Institute of Technology, created 1,118 invention disclosures and 43 startups in 2010.
5. Local governments must work in partnership to promote and develop the Los Angeles Basin to address the fact that college graduates are leaving this area to pursue biotechnology job opportunities elsewhere. Annually, universities in the Los Angeles Basin produce over 5,000 college graduates in science, technology, and engineering. Yet, the Los Angeles Basin ranks 14th nationwide in biotech investment because many of these graduates leave to pursue jobs in other cities, such as San Francisco and San Diego, and in other states where biotech infrastructure has already been developed.
6. Within the Los Angeles Basin, the University of Southern California and local governments are working to establish a new biotech park that will create up to 3,000 new construction jobs and nearly 4,000 permanent jobs that will be accessible to local communities. This, and other potential plans at Harbor-UCLA Medical Center, Olive View-UCLA Medical Center, and Rancho Los Amigos National Rehabilitation Center, will create new potential economic, educational, and training opportunities.
7. Local governments are also in the initial stages of developing plans to address the creation and expansion of the biotech industry. In March 2015, the City of Los Angeles introduced a motion to analyze the estimated fiscal and economic impact of local biotech tax credits to encourage growth and development. In 2012, the Los Angeles County Board of Supervisors commissioned a feasibility study for advancing the bioscience industry in the region that focused on commercializing new technologies, keeping and attracting new bioscience talent, collaborating with university technology transfer offices, and marketing the region to new start-up companies and established national and international bioscience companies.

This resolution:

1. Concurs that promoting the Los Angeles Basin as a bioscience hub will provide a new economic engine for the State of California, in particular for underserved areas.
2. Declares the intent of the Legislature to develop and encourage, through the enactment of legislation, state and local public policy proposals that focus on this large, fast-growing, and diverse industry to establish manufacturing and research activities for the purpose of providing high-quality jobs while advancing public health.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT: (Verified 8/12/16)

Los Angeles Unified School District

University of California

University of Southern California

OPPOSITION: (Verified 8/10/16)

None received

Prepared by: Karen Chow / SFA / (916) 651-1520

8/12/16 13:43:44

**** END ****

 THIRD READING 

Bill No: SCR 161

Author: De León (D), et al.

Introduced: 8/2/16

Vote: 21

SUBJECT: Los Angeles Basin: bioscience hub

SOURCE: Author

DIGEST:

This resolution promotes the Los Angeles Basin as a bioscience hub to provide new economic opportunity for the State of California, and declares the intent of the Legislature to develop and encourage state and local policy proposals that focus on the Los Angeles Basin bioscience industry.

ANALYSIS: This resolution makes the following legislative findings:

1. California has been and will continue to be at the forefront of developing an innovative economy. First, Silicon Valley ushered in the computer age. Now, the Los Angeles Basin is poised to become the epicenter of biotechnology with its academic institutions, training centers, companies, and communities. The Los Angeles bioscience industry has been a consistent growth industry even during the recession and recovery years. In bioscience industries, employment in Los Angeles County rose from 37,759 jobs in 2001 to 42,211 in 2010, an 11.8 percent increase.
2. The Los Angeles Unified School District (LAUSD), the second largest school district in the nation with over 1,100 schools and an enrollment of over 415,000 low-income students, offers 81 science, technology, engineering, and math (STEM) programs to its elementary, middle, and high school students. The number of kindergarten and grades 1 to 12, inclusive, students in LAUSD and other school districts in the Los Angeles Basin who have access to STEM programs must be expanded as these students are California’s future workforce.
3. For the majority of low-income, underrepresented students, their access to a higher education remains their passport to economic security. If these students earn a STEM degree and are able to work in the bioscience industry, they can break the cycle of income inequality. According to the Public Policy Institute of California, workers with engineering degrees earn a median annual wage of $96,000, which is almost three times more than an individual who earns only a high school diploma.
4. In partnership with the leading higher education institutions in the area, state and local governments need to promote and develop a competitive bioscience industry in Los Angeles. First, the Los Angeles Basin is home to several leading academic medical centers that attract nearly $1 billion in National Institutes of Health Funding. Second, in 2010, the Los Angeles biotech workforce was comprised of 42,000 employees with average wages of $72,052. Third, the area’s major research universities, such as the University of California at Los Angeles, the University of Southern California, and the California Institute of Technology, created 1,118 invention disclosures and 43 startups in 2010.
5. Local governments must work in partnership to promote and develop the Los Angeles Basin to address the fact that college graduates are leaving this area to pursue biotechnology job opportunities elsewhere. Annually, universities in the Los Angeles Basin produce over 5,000 college graduates in science, technology, and engineering. Yet, the Los Angeles Basin ranks 14th nationwide in biotech investment because many of these graduates leave to pursue jobs in other cities, such as San Francisco and San Diego, and in other states where biotech infrastructure has already been developed.
6. Within the Los Angeles Basin, the University of Southern California and local governments are working to establish a new biotech park that will create up to 3,000 new construction jobs and nearly 4,000 permanent jobs that will be accessible to local communities. This, and other potential plans at Harbor-UCLA Medical Center, Olive View-UCLA Medical Center, and Rancho Los Amigos National Rehabilitation Center, will create new potential economic, educational, and training opportunities.
7. Local governments are also in the initial stages of developing plans to address the creation and expansion of the biotech industry. In March 2015, the City of Los Angeles introduced a motion to analyze the estimated fiscal and economic impact of local biotech tax credits to encourage growth and development. In 2012, the Los Angeles County Board of Supervisors commissioned a feasibility study for advancing the bioscience industry in the region that focused on commercializing new technologies, keeping and attracting new bioscience talent, collaborating with university technology transfer offices, and marketing the region to new start-up companies and established national and international bioscience companies.

This resolution:

1. Concurs that promoting the Los Angeles Basin as a bioscience hub will provide a new economic engine for the State of California, in particular for underserved areas.
2. Declares the intent of the Legislature to develop and encourage, through the enactment of legislation, state and local public policy proposals that focus on this large, fast-growing, and diverse industry to establish manufacturing and research activities for the purpose of providing high-quality jobs while advancing public health.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT: (Verified 8/10/16)

University of Southern California

OPPOSITION: (Verified 8/10/16)

None received

Prepared by: Karen Chow / SFA / (916) 651-1520

8/10/16 15:40:20

**** END ****

 THIRD READING 

Bill No: SCR 161

Author: De León (D), et al.

Introduced: 8/2/16

Vote: 21

SUBJECT: Los Angeles Basin: bioscience hub

SOURCE: Author

DIGEST:

This resolution promotes the Los Angeles Basin as a bioscience hub to provide new economic opportunity for the State of California, and declares the intent of the Legislature to develop and encourage state and local policy proposals that focus on the Los Angeles Basin bioscience industry.

ANALYSIS: This resolution makes the following legislative findings:

1. California has been and will continue to be at the forefront of developing an innovative economy. First, Silicon Valley ushered in the computer age. Now, the Los Angeles Basin is poised to become the epicenter of biotechnology with its academic institutions, training centers, companies, and communities. The Los Angeles bioscience industry has been a consistent growth industry even during the recession and recovery years. In bioscience industries, employment in Los Angeles County rose from 37,759 jobs in 2001 to 42,211 in 2010, an 11.8 percent increase.
2. The Los Angeles Unified School District (LAUSD), the second largest school district in the nation with over 1,100 schools and an enrollment of over 415,000 low-income students, offers 81 science, technology, engineering, and math (STEM) programs to its elementary, middle, and high school students. The number of kindergarten and grades 1 to 12, inclusive, students in LAUSD and other school districts in the Los Angeles Basin who have access to STEM programs must be expanded as these students are California’s future workforce.
3. For the majority of low-income, underrepresented students, their access to a higher education remains their passport to economic security. If these students earn a STEM degree and are able to work in the bioscience industry, they can break the cycle of income inequality. According to the Public Policy Institute of California, workers with engineering degrees earn a median annual wage of $96,000, which is almost three times more than an individual who earns only a high school diploma.
4. In partnership with the leading higher education institutions in the area, state and local governments need to promote and develop a competitive bioscience industry in Los Angeles. First, the Los Angeles Basin is home to several leading academic medical centers that attract nearly $1 billion in National Institutes of Health Funding. Second, in 2010, the Los Angeles biotech workforce was comprised of 42,000 employees with average wages of $72,052. Third, the area’s major research universities, such as the University of California at Los Angeles, the University of Southern California, and the California Institute of Technology, created 1,118 invention disclosures and 43 startups in 2010.
5. Local governments must work in partnership to promote and develop the Los Angeles Basin to address the fact that college graduates are leaving this area to pursue biotechnology job opportunities elsewhere. Annually, universities in the Los Angeles Basin produce over 5,000 college graduates in science, technology, and engineering. Yet, the Los Angeles Basin ranks 14th nationwide in biotech investment because many of these graduates leave to pursue jobs in other cities, such as San Francisco and San Diego, and in other states where biotech infrastructure has already been developed.
6. Within the Los Angeles Basin, the University of Southern California and local governments are working to establish a new biotech park that will create up to 3,000 new construction jobs and nearly 4,000 permanent jobs that will be accessible to local communities. This, and other potential plans at Harbor-UCLA Medical Center, Olive View-UCLA Medical Center, and Rancho Los Amigos National Rehabilitation Center, will create new potential economic, educational, and training opportunities.
7. Local governments are also in the initial stages of developing plans to address the creation and expansion of the biotech industry. In March 2015, the City of Los Angeles introduced a motion to analyze the estimated fiscal and economic impact of local biotech tax credits to encourage growth and development. In 2012, the Los Angeles County Board of Supervisors commissioned a feasibility study for advancing the bioscience industry in the region that focused on commercializing new technologies, keeping and attracting new bioscience talent, collaborating with university technology transfer offices, and marketing the region to new start-up companies and established national and international bioscience companies.

This resolution:

1. Concurs that promoting the Los Angeles Basin as a bioscience hub will provide a new economic engine for the State of California, in particular for underserved areas.
2. Declares the intent of the Legislature to develop and encourage, through the enactment of legislation, state and local public policy proposals that focus on this large, fast-growing, and diverse industry to establish manufacturing and research activities for the purpose of providing high-quality jobs while advancing public health.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT: (Verified 8/10/16)

Los Angeles Unified School District

University of Southern California

OPPOSITION: (Verified 8/10/16)

None received

Prepared by: Karen Chow / SFA / (916) 651-1520

8/10/16 17:03:11

**** END ****