New Top Lawyer Likely Coming Soon to California's $3 Billion Stem Cell Agency

California's $3 billion stem cell agency appears set to announce a new general counsel, a key position that pays nearly $400,000 a year.

The agency has closed applications and has only one candidate to replace James Harrison, who has announced he will be leaving the agency's service at the end of June.

A job opening notice was posted last month seeking applicants for the position, which has an annual salary range of $208,483 to $384,537.

Harrison worked as outside contractor with the Oakland-based agency in an agreement that totalled $575,000 this fiscal year. The agency is expected to run out of funds for new awards in June 2020.

Harrison has been the top lawyer for the agency since its inception in 2004.

California Stem Cell Agency Says Its Top Lawyer Is Departing After More Than 12 years

James Harrison, Remcho photo

The $3 billion California stem cell agency today said it is losing one of its top leaders, James Harrison, one of the authors of the measure that created the agency and who most recently is serving as its “unflappable” general counsel.

The agency announced this afternoon that Harrison would be departing at end of June “to focus full-time on his legal practice.”

Harrison has worked with the agency under contract since its inception in 2004. He was known for his exceptional legal skills and aplomb when matters became muddled or worse at meetings of the agency’s 29-member board.

Randy Mills, president of the agency, said in a press release,

“James is more than wise counsel at CIRM, he has also been a highly effective leader, responsible for designing and implementing many of CIRM 2.0’s more innovative features.

“He is unflappable and maintains a sense of humor and perspective, even in the most challenging of situations. We thank him for his many years of service and wish him the very best.”

Harrison was one of five persons who drafted Proposition 71, the ballot initiative that created the California Institute for Regenerative Medicine or CIRM as the agency is formally known. He is a partner in the Oakland law firm of Remcho, Johansen and Purcell, which also has an office in Sacramento. The firm specializes in political, election, ethics, constitutional and public policy law.

Harrison was known for his work on ballot measures well before he became involved in the Proposition 71 campaign, He also has worked in election law and campaign finance.

Harrison never was formally classified as an employee of the stem cell agency. His services came under a contract with his law firm. For the current fiscal year, that contract amounts to $575,000.

A 2009 memo to the stem cell agency board recounted Harrison’s value to CIRM, ranging from defending its constitutionality to its public records policy. The memo, prepared at the behest of Bob Klein, the agency’s first chairman, said that Harrison had been “has been involved in virtually every aspect of the agency’s operations, including defending the agency in litigation, drafting and reviewing agency policies, advising the agency on conflict of interest issues, and interfacing with constitutional officers and legislators on matters ranging from financing to proposed legislation.”

Mills said that Scott Tocher, deputy general counsel for the agency, will work closely with Harrison to ensure continuity during a transition period. Tocher is also a longtime veteran of CIRM affairs, joining the agency in 2005.

CIRM Legal Costs Climb Towards $1 Million

Legal costs at the California stem cell agency are heading towards the $1 million mark this year and could well go higher as it embarks on an ambitious and unusual plan to market state bonds to dig itself out of a financial hole.

Next Thursday, the Governance Subcommittee of the CIRM board of directors is expected to increase payments for its main outside counsel, Remcho, Johansen & Purcell, of San Leandro, Ca., and also for Nancy Koch, who deals with intellectual property issues.

According to the most recent document from CIRM, as of Nov. 30, 2008, Remcho had already been paid $237,545 out of its $450,000 contract for the 2008-09 fiscal year. Also as of Nov. 30, Koch had been paid $82,306 out of a $150,000 contract for this fiscal year.

Their contracts and possibly other legal assistance agreements are up for "amendment" at next Thursday's meeting. The use of that word generally means that CIRM needs authorization for more cash to pay the lawyers.

According to CIRM's Dec. 22, 2008, report on outside services, total contracted legal services for the fiscal year amount to $812,930, including $140,431 for the California State Department of Justice. Not all of the total has been spent, but the budget did not anticipate the need for CIRM to engage in attempting to place state bonds with private investors.

CIRM's annual operational budget, which does not include grant payments, totaled about $13 million when approved last July. The currently contracted legal expenses amount to roughly 6.2 percent of the budget. The agency has also not filled the position of general counsel, which became vacant Aug. 15. It is still looking for a person to fill that position, which is now described as general counsel to the president.

CIRM will run out of money in about seven months unless it generates additional cash. That's because the financially troubled state of California has stopped selling the bonds that CIRM relies on to finance its operations and pay for research.