A Dissection: CIRM's Presidential Meeting Next Week

A couple of alert readers have raised questions concerning next Tuesday's special meeting of the Oversight Committee of the $3 billion California stem cell agency, which is scheduled to consider presidential candidates and a new salary for the position.

The teleconference meeting will be conducted from sites that span the length of California, reaching even into Australia. They offer an unusual opportunity for the public to take part in discussions of the agency.

Veterans of California state public meetings have some idea how this might work. Others are not entirely clear and wonder whether it really meets the requirements of state open meeting laws.

One stem cell observer, who asked for anonymity, wrote in an email:

"I have this image of a large crowd being ushered in and immediately being ushered out, waiting 90 minutes and then being ushered in and then out again."

That observer is not far off. However, it is unlikely that a large crowd will be on the scene at any of the locations. Most Oversight Committee meetings draw only about 10 or so members of the public, and that is when the meeting is only in one location.

We could be wrong, but this is likely how the session on Tuesday morning will go.

The committee will convene in public. It will then go into executive session to consider personnel matters – the hiring of a new president. Such sessions are permitted by state law. The public will have to wait outside the meeting room while this goes on. Then the meeting will go public. At that point, the committee has the ability to vote on the salary for a presidential candidate in public session and a new president because the matters have been properly noticed as required by state law. The committee does not have to vote on those matters. They could be delayed to another time. But once the committee is back in public session, members of the public can address the presidential topics or any other topic they choose. However, by state law the committee cannot act on matters that have not been announced in advance.

That means that a person could show up at one of these locations, sit around for about 90 minutes or so and not hear any significant discussions of CIRM matters. Unless you are interested in saying something to the directors of the $3 billion research effort, it may not be worth your time to attend the meeting. Or you may want to test public access -- required by law -- to site locations around the state for the teleconference meeting.

Will the new president be announced or voted on at Tuesday's meeting? Probably, but again we could be wrong. There is only one reason to put consideration of presidential candidates on the agenda, and that is to vote on them. One possible scenario is that the candidate is all but in the bag, with only ratification of a new salary or compensation package needed to clinch the deal. Another scenario could be that California stem cell Chairman Robert Klein put consideration of presidential candidates on the agenda just in case the deal would come to fruition in time for the 7 a.m. meeting next Tuesday. But given the unusual nature of the session, that may be unlikely.

Finally, if the Oversight Committee does fail to make a decision on Tuesday, it could mean that some sort of snag has once again hit the presidential selection process.

Stem Cell Research State by State

Stateline.org today carried a detailed overview of embryonic stem cell research efforts state by state, including the case of a woman who unsuccessfully tried to donate a leftover embryo from her IVF treatment in Michigan.

She was told she had to go to another state because Michigan law bans research on human embryos.

Writer Christine Vestal put together the piece, which goes into some detail on each state with links to the agencies that do the work.

Here is an excerpt:

"Seven states — California, Connecticut, Illinois, Maryland, New Jersey, New York and Wisconsin — are providing seed money for the fledgling science, and Massachusetts Gov. Deval Patrick (D) in May called on lawmakers in his state to follow suit.

"Six other states — Arkansas, Indiana, Louisiana, Michigan, North Dakota and South Dakota — ban the research. Three states — Iowa, Massachusetts and Missouri — have affirmed its legality but do not offer funding.

"In Florida and Texas, lawmakers are deadlocked on the issue. Most states have steered clear of it altogether."

The Bush Veto: 'Strong Words From the Government of California'

California today received prominent mention on an ABC News blog by science correspondent Ned Potter concerning the presidential veto.

Here are some excerpts:

"Surprisingly strong words from the government of California, which, for lack of federal funding, is the largest backer of research on embryonic stem cells.

Potter continued:

"Dale Carlson of the California Institute for Regenerative Medicine, which handles the $3 billion California has pledged for research over ten years: "California has 25 percent of the biomedical research capability in this country. We need the other 75 percent fully engaged and pursuing these therapies.

"If therapies are going to be discovered we need labs all over the country working on this project. So we’re going to have to wait for a new president and hopefully a new policy to really achieve the potential."

Potter also said Arnold Kriegstein of UC San Francisco expressed "polite frustration" with Bush's position that research can be done without embryonic stem cells. Potter quoted Kriegstein as saying,

"There's been a great deal of discussion about alternative sources for embryonic stem cells, for example using amniotic fluid or umbilical blood and so forth. But the truth is none of these alternatives really have the potential embryonic stem cells do to create cells of different types--heart cells, muscle cells, nerve cells and so forth."

Klein on Bush

President Bush's predictable veto of the federal stem cell bill generated the following response from Robert Klein, chairman of the California Institute for Regenerative Medicine:

"The President has again dashed the hopes of millions of Americans suffering from chronic diseases and conditions, despite the overwhelming support for stem cell research in this country. If we're going to realize the potential of stem cells to treat Alzheimer's, Parkinson's, diabetes, multiple sclerosis, cancer, and 70 other debilitating conditions, we need scientists in every state carrying on this research. California cannot reach the potential of this medical research alone.

"It is a tragedy for patient families throughout this country that this critical new frontier of medical research has been so severely handicapped by the President’s personal religious positions. The Congressional leadership clearly understands the historic potential of stem cell research to reduce human suffering. The Congressional leadership should be commended for serving as the champion of stem cell research in this historic opportunity to impact the devastating medical impact of these terrible, chronic diseases and injuries on America’s children and families."

Down Under With The Niche and Robert Klein

California stem cell Chairman Robert Klein hobnobbed this week with scientists from around the world in Cairns, Australia, at the convention of the International Society of Stem Cell Research.

"The Niche," the new stem cell blog of Nature magazine, reported on some of Klein's doings at the conference, saying that Klein is joining the advisory board for the society. Monya Baker reported that Harvard scientist and incoming president of the society George Daley says Klein is supposed to help ISSCR "figure out what its mission should be."

She said that Daley also wants a "very philanthropically involved" board so the group does not always have to be raising funds.

Baker continued:

"I’m waiting to talk to Klein right now, sitting on the edge of a platform as the crew dismantles a stage in wet Cairns, Australia. He’s talking to three intent people, one a lady in a wheelchair. I’m catching words like 'motivating people' and 'networking' Behind him, a serious-looking woman is taking copious notes. I wish my hand moved that fast. She’s the one who led Klein away when I tried to talk to him."

The headline on Baker's item described Klein as the "Prop. 71 instigator."

San Diego Stem Cell Consortium Unveils Ambitious Plans

Representatives from the high-powered San Diego stem cell consortium laid out their vision Tuesday for a 135,000-square-foot facility to house scientists, engineers, ethicists and to serve as a home for programs for both junior research scientists and senior scholars.

Reporter Terri Somers of the San Diego Union-Tribune reported on the presentation, which was made to the California stem cell institute. It held a hearing in San Diego as part of its effort to devise procedures for giving away $220 million to build embryonic stem cell labs in California.

The consortium consists of the Salk, Burnham and Scripps institutes as well as the University of California at San Diego. Tuesday's hearing was the first time members of consortium had appeared in public together, Somers reported.

She wrote that at least one group favored the consortium's effort:

"'I don't know why the consortium emerged or how they did it, but the fact that it has is one of the key developments that Proposition 71 (the stem cell initiative) envisioned,' said John (M.) Simpson of the Foundation for Taxpayer and Consumer Rights.

"Proposals for such collaboration should be given extra weight in the grant application process, Simpson said."

Not everyone is enamored of the effort. Somers did not report any negative comments on the CIRM or consortium plans, which were probably not made at the session. But one reader of the newspaper's Web site, identified only as "ghoward79" filed this online comment on Somers' story:

"If it has such promise then private investors would be all over it. Think about the investment returns! Either way companies promoting this are making money off it and they want someone else to pay the price."

Tuesday's hearing was the last before a July 12 session of the CIRM Facilities Group to actually come up with the specifics of the lab grant procedures, which would then go to the Oversight Committee for approval.

Earlier sessions of the group were well attended, drawing more attendees than the meetings of the Oversight Committee. Transcripts from the sessions are available online. Institutions planning to seek grants or other interested parties would be well advised to read the transcripts. Additional comments can also be sent to CIRM staff, which is mulling over the proceedings in preparation for July's hearing. Waiting until the day of the hearing is a good way to be overlooked.

Time Ripe for CIRM Webcasting

John M. Simpson, stem cell project director for the Foundation for Taxpayer and Consumers Rights, made the following observations via email on the meetings of the Oversight Committee of the California stem cell agency.

"Given problems with quorums I have no problem with telephonic meetings SO LONG AS THE PUBLIC HAS GENUINE ACCESS.(Simpson's capitalization)

"Also think regular meetings should be broadcast on the Internet."

Some time ago we asked CIRM about Webcasting Oversight and other committee meetings. Expense was the reason given for not carrying the sessions on the Internet. CIRM Oversight meetings (currently about six a year) currently run about $20,000 a pop. If one or two could be eliminated each year and replaced with an online session, perhaps the money could be found. An online session capability would also help with meetings of the working groups, where many folks have to travel from out of state.

On the other hand, providing online meeting capability on a free basis would be an excellent opportunity for a high tech firm, such as Cisco or Citrix, which has a substantial California operation, to show its interest in supporting a worthwhile scientific and medical endeavor. It might also simply be good marketing and give a firm an entry point in a sector that is scattered around the globe.

Reaching Down Under: A Chance to Weigh In on California Stem Cell Matters

It is not often that the folks in Australia have a chance to sit in on the deliberations of the elite group that operates the largest single source of funding in the world for embryonic stem cell research.

But next Tuesday all of you folks down under will have a chance, particularly if you are already in the Melbourne area, which, unfortunately, is quite distant from the big stem cell conference this week in Cairns. Likewise, Californians throughout the state will have a rare chance to easily be part of the discussions of the Oversight Committee of the California Institute for Regenerative Medicine.

The occasion is an unusual teleconference session of the 29-member Oversight Committee to consider candidates to take over as president of the $3 billion research program as well as their compensation.

The conference call arrangement was set up because it is physically difficult to bring together all 29 directors of the institute.

Three sites are available in San Francisco and two in Los Angeles, not including one at UCLA and one in Pasadena . Locations are also available in Sacramento, Chico, La Jolla, Newport Beach, Carlsbad, Stanford, UC Berkeley, Mill Valley and Healdsburg. The specific addresses can be found on the meeting's agenda.

A couple of tips: Some of the addresses do not include room numbers, such as the one for the Westin Hotel in Melbourne. That is apparently where Robert Klein, chair of the agency, is staying. Query CIRM in advance at info@cirm.ca.gov if you have questions about the specific locations. Also show up well in advance in case some officious type is inclined to delay your entrance. By law, these are public meetings. If you are hampered or barred from entry, please send me a note at djensen@californiastemcellreport.com.

The meeting promises to be short, perhaps 90 minutes, and only has the presidential matter on the agenda. If you like, you can also sit in on the presidential search subcommittee meeting the previous evening at many of the same locations.

Ticklish Topic: The $400,000-plus Salary at CIRM

Whatever the new president of California's $3 billion stem cell research effort is paid, the salary will likely trigger complaints that it is too much.

Currently the top end of the salary range for the position stands at $412,500. The previous president, Zach Hall, earned $389,000.

However, CIRM's Oversight Committee meets on June 26 to consider compensation for its soon-to-be-hired new president. The committee's public agenda does not list the amount being considered, but it certainly is not going to lower the president's pay.

The salary is ticklish because it appears to be quite large for an operation that has less than 30 employees. Salaries of public officials are always touchy because they are easy for the public to grasp. Is $10 million too much for a lab at UC San Francisco or a research grant to UC Riverside? The public has no frame of reference, so it is hard for them to become outraged. But everybody has a frame of reference for wages. High salaries also make good headlines for newspapers, whose historically underpaid reporters and editors are keenly tuned to such matters.

CIRM often uses the University of California as a benchmark for salaries and financial practices. But you may recall, the UC system stubbed its salary toe in 2005 with dubious pay policies. Nonetheless it is useful to consider some of the salaries at UC. We will use a compensation list for 2004-05 compiled by the San Francisco Chronicle because it is easily available.

As of that fiscal year, one assistant professor at UC Davis, Kee Kim, was paid $776,943. Two members of the CIRM Oversight Committee -- David Kessler, dean of the UC San Francisco School of Medicine, and Gerald Levey, dean of the UCLA School of Medicine – earned respectively $540,250 and $537,416. Several persons whose main responsibilities are supervising young men as they play with balls easily topped those levels, with one at UC Berkeley, Jeff Tedford, topping out at $1.6 million. And those figures are all at least two years old.

If you look at the private sector, it is difficult to come up with useful comparisons. CIRM is a tiny agency (with fewer employees than directors) but it operates a massive research spending program. To issue the grants and administer them requires a high level of bureaucratic and scientific skill. To manage and lead those highly skilled CIRM staffers requires an equally skillful president. Not to mention the special adeptness needed to deal with the 29-member Oversight Committee and its chairman, who seems irresistibly drawn into the president's areas of responsibility. And not to mention the nearly uncharted research standards and IP waters that CIRM must navigate from time to time.

Complicating the pay picture are housing prices in San Francisco, which present a special problem for a president coming from out-of-state. The median price for a San Francisco home was $835,000 last month, up 8.4 percent from a year ago. And this is supposed to be a down market – at least nationally -- for housing. Keep in mind that price does not put you in the lap of luxury either.

The Oversight Committee seems heading relentlessly for a pay hike for its president. Its biggest challenge is to concoct a rationale that will mute the protests about the pay. A rationale that will sit well with Betty and Bob in San Bernardino, who are working two jobs and commuting (at $3.50 a gallon) more than four hours a day -- between them -- to pay for a very modest three-bedroom home for themselves and their two children.

One good way to start is to tell the public well in advance of next week's meeting what is exactly on the compensation table, instead of springing the figure at the last minute. Of course, if the amount is not defensible, withholding it may seem to be the best tactic -- at least to some.

Fresh Comment

A comment has been posted anonymously on the "new look" item below. To see it, click on "comments" at the end of the item.

CIRM Has a New Look on the Internet

The California stem cell agency has a new look on its Web page, a redesign dictated by the eServices Office of the Golden State.

The ostensible reason is to create uniformity among state Web sites. So the eServices Office dictated, among other things, that a photograph of Gov. Arnold Schwarzenegger and a link to his site be placed on the home page of each state agency.

By November, all state departments must be marching together online.

Based on an initial look, CIRM's new design seems graphically friendly, although it will require a little re-orientation for those who those who are accustomed to the old look.

Several issues emerged, however. The most egregious problem is a failure to post prominently an email address that can be used to contact the agency. The email address should be on the "contact" page. At first we did not think it was anywhere on the site. But we finally found it buried deep on the "regulations" page.

The home page also does not have a link to upcoming meetings. Those can be found by clicking on "calendar" and then on "2007 Past Meetings." The transcripts of meetings are also found under "calendar," which is a tad non-intuitive. Once you are on the transcripts page, the transcripts are listed in a table that reads oddly -- at least to us. The widely separated columns in the table -- a format that seems to invite reading down -- are actually organized to read left to right. The wide separation between the columns, however, creates a barrier to the eye.

The "what's new" feature on the home page is similar to the previous effort. The question is whether it will continue to display only new press releases and statements, which is useful. But what would be really useful would be to post a "what's new" listing whenever a change is made to the Web site, such as when a fresh transcript or meeting agenda is posted.

For inexplicable reasons, the upper right hand corner has links to "content," "footer" and "accessibility." "Content" really should be called "about." "Accessibility" does not need to occupy such prime real estate on the home page. As for "footer," who knows what that refers to.

We have no doubt that CIRM is interested in feedback on the design and how to make it more useful. Send your comments to info@cirm.ca.gov -- an email address that is now nearly "secret."

If you are interested in a PDF copy of the Web site marching orders from the Golden State's eService office, please send a message to djensen@californiastemcellreport.com.

New CIRM President in Two Weeks?

The California stem cell agency appears to have a new president waiting quietly in the wings.

The agency late Friday called a special meeting of its Oversight Committee for 7 a.m. June 26 to consider presidential candidates and compensation. The meeting will follow a session of the presidential search subcommittee at 5 p.m. June 25.

One of the issues in the presidential search has been compensation, largely driven by California's high housing costs, particularly in San Francisco.

Former CIRM President Zach Hall, who already lived in San Francisco, was paid $389,000 annually when he was hired. But it appears that salary will be boosted by the Oversight Committee.

At the time Hall was hired, some folks were not too happy about the level of executive compensation at the agency.

Announcement of a new president does not mean that he or she will soon be on the scene fulltime. Usually, such a person has to wind up affairs in a previous position, move, etc.

The meetings on June 25 and 26 will be conducted via conference calls. Access will be available at many locations throughout the state and in Australia, where one of the Oversight Committee members is visiting. The public can listen in and take part from those locations. The specific addresses can be found on the agendas.

The agenda for the June 26 meeting is not yet posted. Here is a link to the June 25 agenda, which is quite cryptic.

Short Update on ESC Research Nationally

All the excitement of paint-drying is how the blog of the American Journal of Bioethics describes stem cell research action at the federal level.

Jim Fossett, director of health and Medicaid studies at the Rockefeller Insitute, made the comment in a brief overview of what is up around the country, including the Golden State. An excerpt:

"California’s far from the only state that’s been active on the stem cell front this year. New York has more or less firm plans to spend some $600 million on stem cell research, and gossip has it that Governor Eliot Spitzer may introduce a proposal for a bond issue to support this research on a larger scale. Maryland has just awarded some $20 million in stem cell research grants, and the state legislature has just approved an FY2008 budget that appropriates some $23 million in research support. Connecticut is spending some $10 million per year on stem cell research. Massachusetts Governor Deval Patrick has just unveiled a major package of stem cell initiatives that would spend some $1.25 billion in state and private funds, outlined here."

More from IPBiz

IPBiz, the intellectual property blog operated by patent attorney Lawrence Ebert, has more to say on WARF, the California stem cell agency grant to CHA RMI and the failings of this blog, the California Stem Cell Report. You can read it all here.

Lawyer Critical of California Stem Cell Report

Patent attorney Lawrence Ebert covers considerable ground this morning in a post called "National Academy of Sciences Attacked."

Ebert has written extensively on the WARF stem cell patent issues, disputing the assertions of critics challenging the WARF patent.

Today Ebert takes on this blog(the California Stem Cell Report), the Los Angeles Times and the San Diego Union-Tribune. A sample:

"Although the californiastemcellreport is ripping into NAS, the stemcellreport is rather silent on the mediocre reporting of the San Diego Union-Tribune on past attempts of California stem cell workers to obtain broad patent coverage on embryonic stem cells and on the superficial reporting of the Los Angeles Times on the Cha duplicate publication matter."

Ebert is deeply concerned about the legal issues concerning the patents. Our perspective is somewhat broader. While certain actions -- either in the world of patents or politics -- may be legal, they are not necessarily in the best interests of society, science or business. An extreme non-science example: Racial segregation used to be the law of the land in many areas of the United States.

Ebert appears to be well-schooled in patent law. Others equally well-schooled differ with him. We are inclined to favor those who are on the side of open science rather than those who seek to lock down every piece of loose intellectual property they can find. But that is a value judgement -- not law.

Nonetheless we encourage you to read Ebert's comments. He may be right.

The National Academy of Sciences: Feeding the Anti-Science Movement

The National Academy of Sciences has not distinguished itself with its response to the flap about barring the public from a meeting of public officials discussing interstate cooperation on billions of dollars in stem cell research financed with taxpayer funds.

We have not heard from the academy concerning the hooha but it finally responded to a letter of protest from John M. Simpson, stem cell project director for the Foundation for Taxpayer and Consumer Rights of Santa Monica, Ca., who was ousted from the meeting in California last month. An academy official said the meeting was "private" although state officials were there at taxpayer expense discussing issues of public import in at least 10 states.

The letter from the NAS demonstrated a fundamental failure to grasp that secrecy on this subject is not in the best interests of the public or of the academy. Closing the door only generates suspicion and distrust and unnecessarily feeds the anti-science movement in this country.

Here is the text of NAS letter to Simpson and Simpson's response. First the letter of E. William Colglazier, executive officer of the NAS.

"I am responding to your letter of May 24 regarding the meeting at the Beckman Center in Irvine, California, on May 23 and 24 involving representatives of states involved in stem cell research. That meeting was an invitation-only planning session, which we were requested to convene, to discuss the potential interest of states regarding sharing information and improving coordination in the future. As the states decide how and when to move forward with information sharing and interstate coordination activities, I expect that there will be ample opportunities for public involvement."

Simpson's reply:

"Thank you for your June 13 response to my letter of May 24 expressing concerns about the private meeting of representatives of state stem cell research programs. You give me great comfort.

"Any doubts that I had about earlier characterization of the National Academy of Sciences as a paternalistic organization that believes the public cannot be trusted to understand science have been put to rest.

"Moreover, your suggestion that 'there will be ample opportunities for public involvement' in the future misses the point.

"The meeting in Irvine, CA, was of representatives of publicly funded stem cell research programs talking about public policy. The public should have been involved from the beginning, not at some vague future date at the convenience of the scientific bureaucracy.

"You should apologize for closing the meeting, and any future sessions of this group must be open to the public.

"The National Academy of Sciences' paternalistic approach only serves to undercut public confidence in any policies that may emerge from the interstate meetings. This does not serve the interests of the states, the National Academy nor stem cell research."

As we mentioned earlier, public officials from any state should not attend any further closed-door meetings on this matter. No good reason exists for banning the public. All of the issues can and should be discussed in public. Airing differing views early is one good way to write intelligent policy and build public support.

(Editor's note: An earlier version of this incorrectly quoted Simpson's letter as saying xxxx at the convenience of the scientific democracy (instead of bureaucracy).

Public Matters, Public Money Topic of "Secret" Agenda

For a look at what one might call the "secret" agenda discussed during last month's closed-door session promoting interstate cooperation on stem cell research, you can find the documents posted on the web site of the Foundation for Taxpayer and Consumer Rights.

The National Academy of Sciences barred the public from the California meeting. An academy official said the session was private despite the fact that it involved public officials, dealing with public matters and public money.

John M. Simpson, stem cell project director for the foundation, received the documents before he was ousted by the academy official.

Topics discussed at the Irvine, Ca., session included intellectual property (not a small matter for California taxpayers), reciprocity between states, model legislation and research oversight. All are clearly part of the public agenda on embryonic stem cell research.

Ironically, also on the table was a draft mission statement, calling for the nascent "Interstate Alliance for Stem Cell Research" to promote "efficient and responsible use of public funds." Ironic because private, closed door meetings discussing how to use billions of dollars in taxpayer funds can hardly be called responsible.

For more on this subject, see the "Fails Responsibility" below.

Transcript Now Available on SB771

The transcript of the meeting of the CIRM Intellectual Property Task Force dealing with SB771 is now available online at this link. The meeting was the subject of the "looming compromise" item below.

National Academy of Sciences Fails Public Responsibility Test on State Stem Cell Issues

"Absolutely outrageous," "outmoded, elitist" complete with a "public-can’t-understand-science attitude" -- the National Academy of Sciences.

That is the description of the group as provided by John M. Simpson, the normally mild-mannered stem cell project director of the Foundation for Taxpayer and Consumers Rights of Santa Monica, Ca., who has trekked north and south through California for a couple of years following and influencing California's $3 billion stem cell research effort.

Simpson was justifiably irked when he was barred last month from a NAS-supported meeting of public officials by Fran Sharples, life sciences director of the the NAS. Simpson had been invited to the first meeting of the group in Connecticut, but could not attend. When he showed up for a follow-up meeting in Irvine, Ca., Sharples said that it was private and he could not attend despite having being invited earlier.

But invitation or not, Simpson's point is that this is public business – not some private, secret affair.

Attending the session in May were representatives of 10 state public stem cell research programs from across the nation. The two-day session was aimed at creating the Interstate Alliance for Stem Cell Research. Among its goals would be "creating opportunities for collaboration among different states' stem cell programs and harmonizing regulations."

All of which is of great importance to state research efforts, which are funded by public money – not NAS funds – and which are generally required to operate in public under open meeting and open records laws.

Simpson wrote a letter of protest to Ralph J. Cicerone and E. William Colgazier, respectively president and executive officer of the academy, concerning its egregious behavior.

Simpson said,

"When the public is shut out of the process, we can only wonder what is being done behind closed doors. For instance, in the quest to 'harmonize' regulations between states will only the lowest common denominator in regulations be adopted?"

And again this month, Simpson said,

"We completely support efforts to foster co-operation among the states, but the notion that the National Academy of Sciences would close such a meeting to the public is absolutely outrageous. It is the outmoded, elitist, public-can’t-understand-science attitude, that ultimately undermines the public’s willingness to fund research. It’s time NAS moved into the 21st century. Their current behavior is exactly what prompts the know-nothing attitude of our president and his right-wing base."

The National Academy of Sciences is a nonprofit organization created by Congress. The intent of Congress was to create an organization that serves the public, albeit indirectly. The Federal Advisory Committee Act which deals with the NAS seems intended to open rather close the academy's proceedings. The action last month in Irvine barring the public from an important stem cell meeting violates the intent if not the letter of that law.

We have asked the NAS for a response or justification (including information on its funding sources) but it has not responded. Nor has it yet responded to Simpson's letter of 18 days ago. We will carry the group's statement verbatim when we receive it.

For now, however, the academy should be embarrassed by its highhanded conduct. Moreover, closing the doors on the public is harmful to the academy and defeats its purpose of advancing the cause of science. Instead the NAS is breeding suspicion and distrust.

The California stem cell agency, as well as those in the other states, should boycott any further meetings of the NAS on the subject of interstate cooperation unless it is willing to open the sessions.

Looming Compromise on CIRM Legislation?

The California stem cell agency seems to be heading towards something of a partial compromise concerning legislation aimed at ensuring a fair return to the state on its $3 billion stem cell research effort.

The bill – SB771 –is now in the Assembly after passing the Senate on a whopping 38-0 vote. Sen. Sheila Kuehl, D-Santa Monica, chair of the Health Committee, and Sen. George Runner of Antelope Valley, one of the Republican leaders, are co-authors.

The legislation came up for discussion at a meeting late last month of CIRM's Intellectual Property Task Force. Duane Roth, a San Diego pharmaceutical company executive and member of the CIRM Oversight Committee, suggested a modification in sharing net license revenues from CIRM-funded inventions.

According to one Senate analysis:

"The proposed commercial regulations by CIRM require that 17 percent of licensing fees in excess of $500,000 be paid to the state, that three times the grant amount be paid for patented products supported by CIRM, and that the state be entitled to 1% of all revenues in excess of $500,000 for the life of a patent if CIRM provided support over $5 million.

This bill would, instead, require the CIRM regulations provide the state 25% of net licensing revenues resulting from supported research; grant exclusive licenses to firms intending to provide access to resulting therapies to uninsured Californians."

Roth proposed changing CIRM's commercial regulations, which are still being drafted, to 25 percent as in the bill instead of the previous 17.

Roth told the IP task force, according to the transcript:

"I don't think it matters that much to industry that's going to take CIRM money, have an invention, and then license to a third party, whether they keep 83 percent of the revenue or 75 percent. And the reason I'm bringing it up is...it's difficult to explain. It can be explained, but it's difficult. And I think the rationale behind it is the hardest part of the explanation."

Roth also said a change would indicate that CIRM is willing to meet Kuehl halfway on the bill.
A quorum was not present at the IP Task Force meeting, so the group did not take an official vote. But no opposition to the change was expressed. An official policy change would require a vote of the full Oversight Committee, which opposes SB771.

The IP meeting occurred before the measure passed the Senate on the 38-0 vote.

Also discussed at the Task Force meeting was another issue related to SB 771 – affordable access. CIRM has moved away from language linking access to Medicaid prices.

Scott Tocher, a CIRM attorney, outlined problems with the Medicaid price and the rationale for linking access to the California RX Discount program, whose regulations are being formulated by the California Department of Health Services.

Kuehl's bill would require licensees of CIRM-funded therapies to provide access at Medicaid prices to patients whose care is provided with public funds.

The Task Force transcript is expected to available online soon on the CIRM web site.