Authorizes Bonds for Immunology Medical Research
Authorizes $8.4 billion in state bonds for immunology and immunotherapy research.
The bonds would be repaid from the state General Fund, which the Legislative Analyst estimates would cost $500 million to $600 million annually for about 20 years. The measure would direct research funding toward treatments that use the immune system and require at least $4.2 billion for cancer, heart disease, and Alzheimer’s disease research.
What it does
- Splits bond proceeds equally between one qualifying University of California-affiliated nonprofit research institute and competitive grants to California public or nonprofit universities and research institutions represented on a new council.
- Limits state administrative costs to 2 percent of disbursed funds and requires annual public reports, financial audits, and oversight reviews.
- Requires recipients to pay the state 10 percent of revenue from funded research’s intellectual property until bond principal and interest are repaid. Later payments would fund additional research.
- Requires recipients selling or licensing funded technologies or drugs to provide them in California at least 20 percent below the national average price, with separate first-year pricing rules.
- Provides up to $100 million from the General Fund as startup loans to the selected institute, to be repaid from related bond proceeds.
Who it affects
- The selected nonprofit medical research institute, University of California campuses, and other California nonprofit universities and research institutions eligible for grants.
- California patients, hospitals, insurers, and government health programs that purchase treatments or drugs developed through funded research.
- State taxpayers and General Fund-supported services because the General Fund would repay the bonds.
Context
California voters previously authorized $8.5 billion in general obligation bonds for stem cell research through Propositions 71 and 14. This measure would create a separate bond-funded program for immunology and immunotherapy research.
A yes vote means
A yes vote would authorize $8.4 billion in state general obligation bonds for immunology and immunotherapy research, to be repaid from the General Fund.
A no vote means
A no vote would leave the state without this $8.4 billion bond authorization and the research funding program created by the measure.
Fiscal effect
The Legislative Analyst's Office estimates:
- Increased state cost of $500 million to $600 million annually for about 20 years to repay the medical research bond. The state could recover part or all of this cost in subsequent decades if the funded research leads to discoveries that generate revenue.