SECTIONS 121200-121225 - California Statutes

HEALTH AND SAFETY CODE

SECTION 121200-121225

121200. The Legislature finds and declares all of the following:
(a) Over the past five years AIDS has reached an epidemic stage
and is estimated to affect 30,000 Californians by 1990.
(b) The estimated cost of medical care alone for the 4,000 AIDS
cases that have occurred to date in California totals approximately
two hundred fifty million dollars ($250,000,000). By the end of 1990,
medical care is projected to approach three billion five hundred
million dollars ($3,500,000,000) and the total public health and
medical care expenditures are expected to exceed five billion dollars
($5,000,000,000).
(c) There is no cure for the AIDS virus. The long-term solution to
the elimination of AIDS lies in conducting vaccine research.
(d) Much research has already been completed by the private sector
and should be utilized to the maximum extent possible, including
supplementing with public funds.
(e) Profitmaking corporations are (1) not eligible for most of the
existing public funding sources as are institutions of higher
learning and nonprofit corporations; (2) when eligible, the public
funding amounts are not adequate to conduct research; and (3) private
grants are only available to nonprofit corporations.
(f) Moreover, private research companies, already having
established vaccine development and manufacturing capabilities, are
uniquely situated to maximize available resources and to utilize both
management and research staff, equipment, and technical innovations
to their greatest efficiency towards the specific goal of developing
and manufacturing an AIDS vaccine at the earliest possible time.
(g) Exclusion of private corporations from public funding to
develop an approved vaccine will likely result in (1) a delay in the
development of a vaccine to prevent AIDS; (2) continued spread of
AIDS to the general population; and (3) continued increases in
private and public funds to provide care to AIDS victims.
(h) It is appropriate to mandate that a grant made to a private
entity to develop an AIDS vaccine, once the vaccine has been approved
by the FDA for use by the general population, should be reimbursed
to the state from the sale of the vaccine.

121225. If a California manufacturer that is a grant recipient
sells, delivers, or distributes an AIDS vaccine that has received FDA
approval for use by the general population and that was developed in
whole or in part using a grant awarded pursuant to this chapter, the
State of California shall be reimbursed for the grant as provided in
this section.
Until the total amount of the grant is repaid, repayments in the
amount of one dollar ($1) per dose from the sale of the AIDS vaccine
shall be deposited by the grant recipient into the General Fund. Upon
payment in full of the grant amount into the General Fund, a royalty
on the sale of the vaccine from the grant recipient shall be
deposited into the General Fund. The percentage amount of the royalty
shall be negotiated at the time of the grant award.