State Legislative Best Practices in Support of Bioscience Industry Development

• Kansas had 981 private biosciences companies in 2004 and 1,075 in 2006, a 9.6% increase in two years
• Employment rose from 14,889 in 2004 to 16,135 in 2006
• Bioscience venture capital investment amounted to $101.4 million
• Academic R&D spending in bioscience accounted for 62% of total academic R&D spending in the state
• Link to the legislation: http://www.kslegislature.org/bills/2004/2647.pdf
• For more information: http://kansasbioauthority.org/news/Kansas-Bioscience-Index.pdf

San Jose, CA -Incubator Programs
In 2004, San Jose's incubator program created the San Jose BioCenter (SJBC) was created. The SJBC provides high tech office and wet lab space for fourteen small bioscience companies. According to a preliminary report, the bioscience sector in San Jose experienced a year- to-year growth rate of approximately 28 percent from 2002 to 2008-a rate that outpaces the Bay Area and the U.S. by a healthy margin.

A recent PriceWaterhouseCoopers' MoneyTree survey found that of 40 investments in the first quarter of 2008 in biosciences, $436.5 million was raised from the San Jose region. These are more investments and dollars raised than any other region in the nation. According to BayBio, a nonprofit trade association serving the life sciences industry in Northern California, Santa Clara County has the largest concentration of bioscience companies of all counties in the Bay Area, $5.9 billion or 50 percent of the life sciences gross product of the entire metropolitan Bay Area, $12 billion, is generated there.

• For more information: http://www.sjeconomy.com/publications/pressreleases/bioscience.growth_06_17_08.pdf

IV. Recent State Legislative Initiatives

In the past year industry attention was focused primarily on federal legislative activity in the areas of patent reform, follow-on biologics, FDA funding, and small business assistance to early-stage bioscience companies. Nonetheless, states continued to forge ahead with legislation to enhance the presence of the bioscience industry within their borders.

Massachusetts:
In 2008, the Massachusetts legislature approved the Life Science Initiative (LSI). The LSI is a $1 billion/10 year initiative designed to bridge the NIH funding gap, create the Massachusetts Stem Cell Bank, and establish the Massachusetts Life Science Fellowship Grants and Massachusetts Life Science Innovation Centers. In 2008, Governor Patrick signed the landmark Massachusetts Life Sciences Law.

• Link to the legislation: http://www.mass.gov/legis/laws/seslaw08/sl080130.htm

Highlights of the package include:

• $500m in Capital Funding to be spent over a 10 year period
• $25m each year for 10 years for the MA Life Sciences Investment Fund
• $25m each year for 10 years in tax incentives to be awarded to certified life sciences projects
• Creates the Massachusetts Life Sciences Investment Program to expand employment in the life sciences sector
• Creates 5 Regional Technology and Innovation Centers

Texas:
In 2007, voters approved a bond measure to provide $3 billion in funding for cancer research over the next ten years. This measure creates the Cancer Prevention and Research Institute of Texas and authorizes the Institute to issue up to $300 million per year to fund cancer research grants, research facilities, and cancer prevention and control programs in the State. Not more than 5% of total grant awards can be used for facility construction, and not more than 10% for prevention and control programs. The focus of the Institute's activities will be on institutions, facilities, research, and programs.

• Link to the legislation: http://www.capitol.state.tx.us/tlodocs/80R/billtext/html/HJ00090F.htm

West Virginia:
The Research Trust Fund (also known as "Bucks for Brains") was proposed in the Governor Joe Manchin's 2008 State of the State address in hopes of slowing the State's "brain drain". The legislation appropriates $50 million to match dollar for dollar targeted donations to West Virginia and Marshall University for research in areas of energy, biotechnology, biomedical, identification technology, material science and engineering, and environmental science.