These twelve policy actions are recommendations designed to guarantee California’s continued dominance of the global life sciences marketplace.

1. Create a health information technology and life science early stage investment incentive

For targeted investments in health information technology and life sciences of strategic value both to the State’s priority needs in healthcare reform and to areas of unmet medical need an early stage investment incentive should be created to encourage greater levels of investment.

2. Invest $150 million over 10 years in UC-oriented life sciences incubators

Modeled after the Pennsylvania “Greenhouse” life sciences incubator initiative, the state should invest $150 million over the next 10 years in UC-oriented life sciences incubators, requiring competitive bids to the State that demonstrate UC-centered public private partnerships with a track record in nurturing start-up success.

3. Convert California’s R&D tax credit into a tax rebate

Converting California’s R&D tax credit into a tax rebate will enable thousands of life sciences companies to actually capture this well-intentioned incentive which has no utility to R&D and early stage companies.

4. Create a 20-year carry forward provision on the treatment of corporate net operating losses

Change California’s treatment of corporate net operating losses to allow life sciences companies that have invested in California to carry forward their losses for 20 years.

5. Create corporate tax incentives for major investments in California

Allow companies making major investments in California to select an adjusted corporate income tax apportionment formula.

6. Increase State investment in Training Centers of Excellence

Invest $150 million over the next 10 years in training centers of excellence, requiring competitive bids to the State from the California State University system in public private partnerships that demonstrate response and flexibility for future response to areas of acute industry need, such as was done with the North Carolina State University bio-manufacturing training center.

7. Incentivize local communities to zone biotech regions in their master planning

In order to meet the needs of California companies moving from the research stage and into manufacturing, and to ensure those companies remain in California, local communities should be incentivized to zone biotech regions in their master planning, and to set aside precincts as research parks where life sciences companies may expand to new clusters in close proximity to growing housing areas.

8. Expand allowable uses for the California Infrastructure and Economic Development Bank

Enable municipalities to tap the California Infrastructure and Economic Development Bank for loans for pre-EIR work and infrastructure preparation on sites of high potential for life sciences expansion.

9. Establish a Harmonization Conference between CalEPA and U.S.EPA

The Harmonization Conference should include the participation of regulated businesses and the two agencies to establish practical benchmarks toward a goal of a national pilot program for electronic, simultaneous submission for the private sector of regulatory reporting requirements to State and Federal agencies where reporting information is held in common.

10. Establish a science fellows program to serve the State Government

Modeled after the Science Fellows Program of the American Association for the Advancement of Science, work with innovation stakeholders to establish a science fellows program throughout the State Government to provide objective scientific advice to all branches of state government.

11. Establish a major economic incentive for bioprocessing and biomanufacturing investments

This economic incentive package should include offsetting costs for production plant investments, capital equipment, facility construction, long-term employee training, and infrastructure. Billions will be invested in the next decade on scaling up bioprocessing and manufacturing in all these areas of industrial and medical biotechnology.

12. Establish a new California Science & Technology Trust

Headed by a cabinet-level science advisor to the State, endowed by state-owned commercial and industrial land set aside for future development and intellectual property owned or shared by the state which generates an innovation dividend for re-investment. Utilize revenue from the Trust’s IP and leased properties to fund early-stage prototyping for small companies along the model of the U.S. STTR program. Empower the Science & Technology Trust to oversee state-funded incubators, centers of excellence, science fellows program, support for the California Council on Science & Technology, and other relevant portfolio management expectations.

Get Involved:
Interested in participating in BayBio's Government Relations Committees? BayBio encourages participation by all members.

For more information on the Government Relations Committee contact Christopher Draper at cdraper@baybio.org.