Sacramento Year-End Legislative Wrap-Up
September 8, 2015
The California Legislature will wrap up the 2014-2015 legislative session on Friday, Sept. 11, and CLSA continues to actively work a number of bills pending on the Senate and Assembly floors. Currently, several bills we support are in the process of being amended in the Assembly and Senate.
Two measures of note are Senator Jerry Hill’s (D—San Mateo) SB 671, the biosimilars bill, and Speaker Toni Atkins’ (D—San Diego) AB 437, the research and development grant program for small companies.
Senator Hill’s SB 671 is on its way to the Governor’s desk, where it will await an anticipated signature. This bill updates the Pharmacy Practices Act to establish the procedures and conditions for when a pharmacist may substitute interchangeable biosimilar products that are approved by the U.S. Food and Drug Administration (FDA). This legislation ensures patients and their physicians remain in control of their medical treatment options as the market for complex biologics evolves.
Speaker Atkin’s AB 437 passed off the floor with an 80-0 vote on Sept. 3. This bill allows small businesses with $5 million or less in gross receipts to cash out a portion of the tax credits they have earned and use them to reinvest in further research and development. AB 437 authorizes eligible businesses to cash out 10 percent of all tax credits received in 2014 and 2015. From 2016 onward, eligible businesses will be able to cash out 15 percent of the credits generated. For California’s numerous small to mid-size life sciences companies engaged in research and development, this legislation will allow the use of the tax credits they receive to be reinvested into their business and the local economy.
CLSA will continue to advocate for the remaining bills on the floor, and will work as needed for signatures and vetoes in accordance with our membership’s legislative agenda. For questions, please contact Eve Bukowski, CLSA’s Vice President of State Government Relations (email@example.com).