California Stem Cell Agency Seeks Lobbyist Bids

The California stem cell agency has put out a bid for a private lobbyist to watch out for its interests in Sacramento, perhaps severing a longtime relationship with one of the Capitol's more prestigious power brokers.

The $3 billion agency has had a contract since 2005 with Nielsen Merksamer Parrinello Gross & Leoni LLP of Sacramento, which reported lobbying revenue last year of more than $5 million. That made it one of the top revenue producers among California lobbyists.

The agency's contract is tiny, however. It started at $49,900 for five months in 2005 on a no-bid contract with Nielsen, although the annual figure is now $49,999.  The agency's request this month for bids calls for a boost to $65,000 annually.

Nielsen Merksamer is very active in health care lobbying. Its biotech/pharmaceutical clients have included Genentech, Merck & Co. and Pfizer. The firm also played a role in the drafting of and campaign for Proposition 71 in 2004. In 2009, at the behest of Robert Klein, then chairman of the agency, it produced a legal memo that Klein used to help box in the agency governing board on taking a position on the Little Hoover Commission report recommending major changes at the enterprise.

The stem cell agency is one of the few agencies that hires a private lobbyist, which has raised some eyebrows. Nearly all agencies handle legislative relations internally.

Deadline for bids is May 3.

CIRM Contracting: $1.3 Million for IT, $887,282 for Legal

The California stem cell agency this week performed its semi-annual public disclosure of its contracts with outside firms, the second largest item in its operational budget of $18.5 million.

The contracts are scheduled to run about $3.3 million this fiscal year, according to the budget approved last May. That figure is up about 18 percent from the previous year.

According to the contract information posted this week, the two largest contracting expenditures this year are for information technology work, including the ongoing struggles with the grants management system – $1.3 million – and legal help – $887,282. The figures were compiled by the California Stem Cell Report. CIRM did not provide totals.

Outside contracts are second to the cost of salaries and benefits at the agency. One reason for the size of the contracting expense is the small size of the CIRM staff, which is now about 50.

The contracting information will be presented to the CIRM directors' Governance Subcommittee next Friday. The committee is being asked to approve an increase in the contract with Kutir Corp., from $250,000 to $470,000. By the end of 2011, CIRM had already paid out $219,680 to Kutir. The firm provides software development services.

Infonetica, which provides technology advice, would also see an increase from $236,060 to $300,000, under the staff proposal.

A staff memo to the board said,

"(Kutir's) services are key as CIRM continues to progress in automating its grants management systems to meet the requirements of both new RFAs as well as ongoing reporting obligations.""

The public can participate in the Governance meeting at locations in San Francisco, Sacramento, Irvine, Los Angeles, South San Francisco and La Jolla. Specific addresses can be found on the agenda.

San Leandro Law Firm Awarded $700,000 by California Stem Cell Agency

The California stem cell agency today approved on a voice vote a 32 percent increase($160,000) in fees this year for Remcho, Johansen & Purcell of San Leandro, Ca., for its work as outside counsel for the agency. Also approved was a $545,000 contract for 2011-12.

The firm, principally through James Harrison, has represented CIRM since 2004. Harrison is one of the five attorneys who drafted the ballot initiative that created the agency. A CIRM memo said the $350 per hour rates for partners and $265 per hour rates for associates at the firm are "significantly lower than the market rates for firms with similar expertise."

The memo presented to the board today did not explain why additional funds were needed this year. Nor did it give provide an overall figure for the current contract. A CIRM document from last June reported that Remcho was slated originally to be paid $475,000 this year.

CIRM staff reported the $475,000 figure during the meeting after being asked for it by Director Ted Love, a biotech industry executive. The board was also told that an increased workload generated the need for the 32 percent increase in the Remcho contract this year.

Details Finally Emerge on $200,000 Stem Cell Convention Subsidy Plan

The California stem cell agency last night belatedly gave the public its first glimpse at a $200,000 plan to subsidize attendance at an international stem cell conference in Toronto in June.

A one-sentence version of the proposal has been on the agenda of the directors of the California stem cell agenda for 10 days. However, the cost, number of persons involved and other details were not disclosed until only hours before the directors are scheduled to take it up this morning.

In a memo on the CIRM web site, Chairman Robert Klein estimated the cost at $2,000 per person for travel, hotel and registration expenses at the meeting of the International Society of Stem Cell Research, the world's largest such organization. He proposed sending "80 young California researchers who are actively involved in a CIRM-fund grant (including Bridges to Stem Cell Research, research training grants and other research award programs) and up to 40 California representatives of patient advocacy organizations."

The $24 million Bridges program covers training largely at California state and community colleges.

The memo did not present a justification for the convention travel subsidy. Instead, it said that CIRM paid for the attendance of 98 persons in a similar program for the ISSCR convention last year in San Francisco. It said the program was a "success" but provided no basis for that assertion.

CIRM, through Klein's office, has been trying to improve relations with patient advocate organizations, which will be a key to winning support of a proposed, new $3 billion to $5 billion ballot measure for the stem cell agency.

The program would use part of the $3.5 million that has been donated to CIRM by private individuals and be operated under the auspices of the ISSCR. The organization would be given the $200,000 to set up a "scholarship" program. Klein would run the program through his office, he said, to avoid placing any additional burden on CIRM's scientific staff. It was not clear whether the ISSCR would require reimbursement for its administrative costs in connection with the program.