An $8.4 billion bond for immunology and immunotherapy research will appear on the November ballot.

Proposition 38, if passed, would allocate half of the bond proceeds to one UC-affiliated nonprofit research institute selected by the California Department of Public Health. The remaining $4.2 billion would be distributed through grants to California researchers by an Advisory and Accountability Research Council consisting of members appointed by the chancellors of seven UC campuses.

The ballot measure includes requirements for the UC campus hosting the institute to have more than 35,000 inpatient admissions and 3.5 million outpatient visits annually. The institute must also contain at least 200,000 square feet of research space and have over $250 million in philanthropic commitments.

The only institute eligible for the bond money is the UCLA-affiliated California Institute for Immunology & Immunotherapy, which studies immune systems and how to harness a patient’s own immune system to fight diseases, according to CalMatters.

The narrow eligibility criteria makes Proposition 38 unusual because the state typically encourages a wide number of applicants to bid for these types of grants, said Marianne O’Malley, a former managing principal analyst for the California Legislative Analyst’s Office, at a Sept. 10 event held by the No on Proposition 38 campaign.

“In this case, the criteria have limited it to only one entity that could even apply,” O’Malley said at the event. “It’s quite discouraging.”

The institute is not yet operational and will be built in the new UCLA Research Park – projected to open late 2028.

Dr. Gary K. Michelson, a billionaire and philanthropist who serves as chairman of the institute’s board, said in an emailed statement that the institute will collaborate with other institutions and work to improve research statewide. He added that the institute’s mission is to provide resources for scientists and researchers to develop lifesaving cures for diseases.

“(CIII is) a first-in-class center with the clinical infrastructure, patient access and scale to move discoveries into treatments faster than any single university or nonprofit could alone,” Michelson said. “The goal is to accelerate and connect California’s research ecosystem, not duplicate what other campuses and institutes are already doing.”

The measure would also exempt the selected institution from multiple state transparency laws – including the California Public Records Act, the Open Meeting Act and the Political Reform Act of 1974. The laws allow people to request public records, require public entities to hold public meetings and regulate campaign finances and conflicts of interest, respectively.

“This measure hijacks the initiative process to steer public funds to a billionaire’s philanthropic project,” O’Malley said. “Then it hides its tracks. It hides its actions by waiving all the usual laws to promote governmental transparency.”

Philanthropists affiliated with the institute have made sizable cash contributions to the Yes on 38 campaign.

Michelson spent $63.2 million to support the measure. Meyer Luskin, a billionaire, philanthropist and longtime UCLA donor, contributed $5 million and serves as the institute’s treasurer.

Less than $10,000 in contributions have been reported by the No on 38 campaign.

To repay the bond, 10% of the revenue generated by Proposition 38-funded research will go back to the state until the bond is repaid.

“This is a bond measure that will pay for itself,” said Robin Swanson, a spokesperson for the Yes on 38 campaign, an organization created in support of the bill.

Alhough income can be generated from scientific research patents, they take a long time to materialize, making the bond difficult to pay for, said Robert Kaplan, a former associate director of the National Institutes of Health and a distinguished research professor of health policy and management at the Fielding School of Public Health. In some cases, he added, it can take as long as 25 years to commercialize a drug.

In the meantime, the state will pay $500-600 million annually for 20 years to repay the bond, according to estimates released by the independent Legislative Analyst’s Office.

Immunotherapies such as CAR-T cell therapy – which reprograms a certain type of immune cell to attack cancer cells – have been proven to be effective at treating certain blood cancers, said Lili Yang, a professor in the microbiology, immunology and molecular genetics department, in an emailed statement.

However, Kaplan said he is skeptical of investing so heavily in immunology research. He added that he doubts allocating half of the bond’s funds to one institute will be effective, because having diverse institutions and groups working independently is the best way to advance science.

“One area of research investigation is going to have a lot of resources, but all these other areas will actually still be starved for additional funding,” he said.