Single Payer Measure Passes Health Committee
On Wednesday, April 18, the Senate Health Committee passed SB 840, authored by Senator Sheila Kuehl (D-Santa Monica), legislation that would create a single payer health care system in California.  CHI opposes this measure because, by enabling state government to take over the medical market, it would disrupt the economics of innovation.  In Europe and elsewhere, single payer systems have discouraged investment in biotechnology and advanced medical devices because they inevitably resort to price controls to restrain health care spending.  Limiting future returns on risky investments is sure to drive capital in other directions.

Stem Cell Measure in Judiciary Committee Next Week
The Senate Judiciary Committee will hold an informational hearing next Tuesday, April 24, to discuss SB 771, authored by Senators Sheila Kuehl (D-Santa Monica) and George Runner (R-Antelope Valley), legislation that, among other things, imposes recoupment and revenue sharing provisions, as well as pricing and access requirements, on intellectual property (IP) agreements negotiated by organizations that accept grants from the California Institute of Regenerative Medicine (CIRM).  Currently CIRM is developing a comprehensive IP policy through a public comment period and CHI believes that prior to enacting legislation that process should be allowed to run its course.  CHI will continue to oppose this and other IP agreements likely to deter private investment by unduly burdening technology transfer agreements.

Chemical Exposure Legislation Passes Assembly Committee
AB 515, authored by Assemblymember Sally Leiber (D-Mountain View), legislation that would require the Occupational Safety and Health Standards Board to duplicate its rulemaking for hundreds of chemicals that already have permissible exposure limit (PEL) standards, was approved by the Assembly Labor and Employment Committee on Wednesday, April 18.  The Food and Drug Administration regulates biological research and manufacturing with great precision; CHI believes that heavy costs will be placed on industry to duplicate this process with no public health benefit.  In addition, the measure requires the Standards Board to set PEL standards as recommended by the Office of Environmental Health Hazard Assessment (OEHHA); however, the bill provides no guidelines.  Currently OEHHA does not gather input from industry in making its recommendations and CHI is concerned that industry's participation would be marginalized under the proposed legislation.

Constitutional Amendment Would Alter Term Limits, Districts and Fundraising
On Monday, April 16, Senator Roy Ashburn (R-Bakersfield) introduced a single ballot measure to change term limits and how legislative districts are drawn; in addition, it would ban fundraising during certain times of the year.  Ashburn is pushing the measure in the legislature, where it must receive a two-thirds vote in order to appear on the Feb. 5 presidential primary ballot. Specifically the measure would:

• Alter term limits to allow legislators to serve a grand total of 12 years, whether in the Assembly, the Senate or both.  Its effect would be to allow Assembly Speaker Fabian Nuñez to serve an additional six years and Senate President Pro Tem Don Perata an additional four years.
• Strip authority from the Legislature to draw state Assembly, Senate and Board of Equalization district boundaries.  Would give that responsibility to a bipartisan independent 11-member commission.
• Ban fundraising by the governor or legislators during budget deliberations, during 30-day period prior to adjournment, and by the governor during the annual bill-signing period.
• Withhold the pay of legislators if a budget bill is not passed by July 1 each year.

Leaders at the State’s Stem Cell Institute Resign
A dispute over the issuing of grants to fund $222 million in new laboratory space at universities and research institutions around the state has led to the resignation of two high-level employees.  Zach Hall, president and chief scientific officer of the agency since its creation in 2005, who was originally slated to depart some time this summer, announced his resignation in a letter on Tuesday.  Also resigning over the issue was Scientific and Medical Facilities Working Group Chair Albert Doms.  A search committee has been looking for Hall’s successor for several months.  The group met on Tuesday, April 17 to select candidates for interviews in early May.

For a complete listing of CHI events and activities, visit the CHI Web site