California’s Life Sciences Sector Applauds Passage of H.R. 160, Repeal of the Medical Device Excise Tax

According to CLSA, the repeal encourages medical technology, investment, innovation and job creation

SOUTH SAN FRANCISCO, CALIF – JUNE 18, 2015 – Today, the California Life Sciences Association (CLSA), the statewide public policy organization representing over 750 of California’s leading life sciences innovators, applauded House passage of H.R. 160, the Protect Medical Innovation Act, legislation to permanently repeal the medical device excise tax.

“The repeal of the device tax will encourage investment, entrepreneurship and innovation in some of the world’s most vibrant medical technology clusters throughout California, from San Diego, Orange County and greater Los Angeles to Silicon Valley and the San Francisco Bay Area region,” said Todd Gillenwater, CLSA’s Executive Vice President of Advocacy & External Relations. “The 280-140 vote demonstrates strong bipartisan recognition of the consequences of this misguided tax.”

Given the size and scope of the medical technology sector’s presence in California, the 2.3 percent, $25 billion tax has had a disproportionate impact on the state. California is home to more than 1,500 medical technology companies — more than any other state in the nation — and the more than 75,000 medical device jobs in California represent roughly 17 percent of the total U.S. medical technology workforce.

CLSA especially acknowledges and appreciates the 27 bipartisan members of the California congressional delegation who voted to repeal the tax: Reps. Pete Aguilar (D-Redlands); Ami Bera (D-Sacramento); Julia Brownley (D-Thousand Oaks); Ken Calvert (R-Corona); Tony Cardenas (D-Van Nuys); Paul Cook (R-Apple Valley); Susan Davis (D-San Diego); Jeff Denham (R-Modesto); Duncan Hunter (R-El Cajon); Darrell Issa (R-Vista); Steve Knight (R-Simi Valley); Ted Lieu (D-Los Angeles); Kevin McCarthy (R-Bakersfield); Tom McClintock (R-Roseville); Jerry McNerney (D-Stockton); Devin Nunes (R-Clovis); Scott Peters (D-San Diego); Dana Rohrabacher (R-Huntington Beach); Ed Royce (R-Brea); Raul Ruiz (D-Palm Desert); Loretta Sanchez (D-Garden Grove); Jackie Speier (D-Menlo Park); Eric Swalwell (D-Pleasanton); Norma Torres (D-Pomona);  David Valadao (R-Bakersfield); Juan Vargas (D-Chula Vista);  Mimi Walters (R-Irvine).

“The Protect Medical Innovation Act is a common sense solution to rescind this ill‚Äêconceived tax, allowing innovators to fully focus on R&D that will bring new treatments and technologies to patients in need,” added Gillenwater.

CLSA will continue working with the bill’s author, Rep. Erik Paulsen (R-Minn.), our state’s congressional delegation, and other stakeholders to ensure the legislation also passes the Senate and is signed into law by the President.

About California Life Sciences Association (CLSA)
California Life Sciences Association (CLSA) is the leading voice for California’s life sciences sector. We work closely with industry, government, academia and other stakeholders to shape public policy, drive business solutions and grow California’s life sciences innovation ecosystem. CLSA serves over 750 biotechnology, pharmaceutical, medical device, and diagnostics companies, research universities and institutes, investors and service providers. CLSA was founded in 2015 when the Bay Area Bioscience Association (BayBio) and the California Healthcare Institute (CHI) merged to create the state’s most influential life sciences advocacy and business leadership organization. Visit CLSA at, and follow us on Twitter @CALifeSciences, Facebook, Instagram, LinkedIn and YouTube.

Will Zasadny