AB 879: Bioscience Economic Opportunity Program: grants.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2023-02-14
Current Status:
Failed
(2024-02-01: From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
What does this bill do?
The bill requires the state's Infrastructure and Economic Development Bank to include in its annual report information on the bank’s impact on high-technology clusters like healthcare tech, multimedia, environmental tech, and information technology. It also creates a Bioscience Economic Opportunity Program in the State Treasurer’s office with a board to award competitive state grants, coordinate federal funding, and support bioscience innovation, research, and education. The bill defines bioscience as technologies that use living organisms or parts of them to make or change products, improve plants or animals, or develop useful microorganisms.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Existing law creates the Infrastructure and Economic Development Bank within the Governors Office of Business and Economic Development and commits to it the administration of various programs. Existing law requires the bank, not later than January 1 of each year, to submit a report to the Strategic Growth Council, the Governor, the Speaker of the Assembly, the President pro Tempore of the Senate, and the Legislative Analysts Office for the preceding fiscal year, as specified, containing information on the banks activities relating to the infrastructure bank fund and programs.
This bill would require the report to also include information on the banks impact on high technology industry clusters, including, but not limited to, healthcare technology, multimedia, environmental technology, and information technology.
Existing law establishes within state government the office of the Treasurer and establishes various programs under the jurisdiction of the Treasurer designed to facilitate the collaborative work between public and private partners and to provide innovative and effective solutions for Californias industries.
This bill would establish the Bioscience Economic Opportunity Program within state government under the jurisdiction of the Treasurer. The bill would establish the Bioscience Economic Opportunity Program Board and would set forth its membership. The bill would establish the purposes of the program including providing and administering state grants, coordinating federal funding, and engaging in other activities to promote innovation, research, and education of the bioscience industry. The bill would set forth the criteria for awarding grants under the program.
(a)The bank shall, not later than January 1 of each year, submit to the Strategic Growth Council, the Governor, the Speaker of the Assembly, the President pro Tempore of the Senate, the Legislature, and the Legislative Analysts Office, pursuant to Section 9795, a report for the preceding fiscal year ending on June 30 containing information on the banks activities relating to the infrastructure bank fund and programs. The report shall include all of the following:
(1)(A)Information on the infrastructure bank fund, including, but not limited to, its present balance, moneys encumbered, moneys allocated, repayments, and other sources of revenues received during the fiscal year.
(B)Information on the impact of the activities funded by the infrastructure bank fund moneys, including, but not limited to, the number of jobs created and retained, the environmental impact that resulted, and economic value provided to the state.
(C)Information on the banks impact on high technology industry clusters, including, but not limited to, healthcare technology, multimedia, environmental technology, and information technology as defined in subdivision (f) of Section 13998.
(2)A specification of conduit and revenue bonds sold and interest rates thereon, including, but not limited to, the use of the bond proceeds.
(3)The amount of other public and private funds leveraged by the assistance provided.
(4)A report of revenues and expenditures for the preceding fiscal year, including all of the banks costs. The information provided pursuant to this subdivision shall include, but need not be limited to, both of the following:
(A)The amount and source of total bank revenues. Revenues shall be shown by main categories of revenues, including the General Fund, special funds, federal funds, interest earnings, fees collected, and bond proceeds, for each bank program.
(B)The amount and type of total bank expenditures. Expenditures shall be shown by major categories of expenditures, including loans provided, debt service payments, and program support costs, for each bank program.
(5)A projection of the banks needs and requirements for the coming year.
(6)Recommendations for changes in state and federal law necessary to meet the objectives of this division.
(7)The contents of the report prepared by the program manager of the California Small Business Finance Center consistent with the requirements of Section 63089.98.
(8)The contents of the report containing Climate Catalyst Revolving Loan Fund Program activity consistent with the requirements of Section 63048.94.
(b)The executive director shall post the report on the banks internet website.
SEC. 2.Section 13998.13 is added to the Government Code, to read:13998.13.(a)The Bioscience Economic Opportunity Program is hereby established within state government, under the jurisdiction of the Treasurer.
(b)The purpose of the program is to award and administer state grants, coordinate federal funding, and engage in other activities to promote innovation, research, and education of the bioscience industry in California.
(c)The Bioscience Economic Opportunity Program Board is hereby created within state government. The board shall consist of the following members:
(1)The Treasurer, or their designee, who shall serve as the chair.
(2)The Director of Finance, or their designee.
(3)The Controller, or their designee.
(4)An individual from the bioscience sector, appointed by the Treasurer.
(5)An individual from the bioscience sector who represents organized labor, appointed by the Treasurer.
(6)An individual from the bioscience sector who represents academia, appointed by the Treasurer.
(7)An individual from the bioscience sector who represents patient organizations, appointed by the Treasurer.
(d)All members of the board shall serve without compensation. Members of the board shall be reimbursed for necessary travel expenses incurred in connection with their board duties.
(e)The program shall award grants upon a competitive application process to applicants who can demonstrate that the grants funds will be used to promote innovation, research, and education in the bioscience industry.
(f)For purposes of this section, bioscience means any modern technology that uses living organisms, or parts of organisms, to produce or modify products, to improve plants or animals, or to develop microorganisms for specific uses.
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Date
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Status
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|---|---|
| Feb 1, 2024 | From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. |
| Jan 31, 2024 | Died pursuant to Art. IV, Sec. 10(c) of the Constitution. |
| Apr 25, 2023 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (April 25). Re-referred to Com. on APPR. |
| Feb 23, 2023 | Referred to Com. on J., E.D., & E. |
| Feb 15, 2023 | From printer. May be heard in committee March 17. |
| Feb 14, 2023 | Read first time. To print. |
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Date
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Description
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Location
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Votes
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|---|---|---|---|---|
| Apr 25, 2023 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Jobs, Economic Development, and the Economy |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| California Life Sciences | ** Support | |
| California State Treasurer | ** Support | |
| PhRMA | ** Support |
Date of Hearing:
ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT, AND THE ECONOMY
Carlos Villapudua, Chair
ABPCA Bill Id:AB 879 (
Author:Villapudua) – As Introduced Ver:February 14, 2023
SUBJECT: Bioscience Economic Opportunity Program: grants
SUMMARY: AB 879 will create the Bioscience Economic Opportunity Program under the Treasurer’s Office to develop collaborative work between public and private partners for the purpose of administrating grants and coordinate federal funding.
Specifically, this bill
- Requires the Infrastructure and Economic Development Bank (IBank) as part of its annual report to include information on investment in high technology industry clusters.
- Establishes the Bioscience Economic Opportunity Program under the jurisdiction of the Treasure.
- Establishes the Bioscience Economic Opportunity Program Board and would set forth its membership.
- Establishes the purposes of the program including providing and administering state grants, coordinating federal funding, and engaging in other activities to promote innovation, research, and education of the bioscience industry.
- The bill would set forth the criteria for awarding grants under the program.
EXISTING LAW:
- Existing law creates the IBank within the Governor’s Office of Business and Economic Development (Go-Biz) and commits to it the administration of various programs.
- Existing law requires the bank, not later than January 1 of each year, to submit a report to the Strategic Growth Council, the Governor, the Speaker of the Assembly, the President pro Tempore of the Senate, and the Legislative Analyst’s Office for the preceding fiscal year, as specified, containing information on the bank’s activities relating to the infrastructure bank fund and programs.
FISCAL EFFECT: This bill is keyed fiscal.
COMMENTS:
The biosciences industry plays a critical role in California's economy and healthcare system.
According to the 2022 California Life Sciences Industry Report, the biosciences industry in California continues to grow and innovate at a rapid pace. In 2021, the industry generated $196 billion in economic activity and supported 1.4 million jobs in the state. This represents a 14% increase in economic activity and a 10% increase in employment compared to 2019.
The report also highlights key areas of growth within the industry, including precision medicine, digital health, and advanced therapies. Precision medicine, which involves tailoring medical treatments to individual patients based on their genetic makeup, is a particularly promising area of innovation. In 2021, California-based companies in this field raised $6.8 billion in venture capital funding, a 44% increase from 2019.
Venture capital is a critical source of funding for biosciences startups and early-stage companies. In 2021, California-based biosciences companies raised a record $21 billion in venture capital funding, up from $15.8 billion in 2019. This represents a 33% increase in funding in just two years. It is important to note that investments may vary depending on market conditions, investor preferences, and other factors that affect the funding landscape.
According to the author, California’s bioscience industry has grown organically due to access to the best universities in the world, diverse population and access to capital. The landscape is changing, and industry patterns are demonstrating a reduction in venture capital especially in the technology sector. Additionally, there is a lack of a coordinated effort on behalf of the state to connect the various bioscience hubs together to promote industry expansion.
This underscores the importance of supporting policies that encourage entrepreneurship, spur investments and innovation in California in order to keep the state competitive and at the forefront of growing global economic sectors.
AB 879 will require the Infrastructure and Economic Development Bank, which oversees seven Financial Development Corporation, as part of its annual report to include information on investment in high technology industry clusters and establish the Bioscience Economic Opportunity Program in order to better connect various bioscience hubs and promote industry expansion.
REGISTERED SUPPORT / OPPOSITION:
Support
California Life Sciences
California State Treasurer
Phrma
Opposition
None on file
Analysis Prepared by: Carla Castilla / J., E.D., & E. / (916) 319-2090
Bill Author
Bill Co-Author(s):