Major Reporting Bill Heading into Its Final Committee Hearing

July 16, 2016

A concerning bill we have previously reported on here, Senate Bill 1010, is heading into its final committee hearing in the Assembly Appropriations Committee, which should occur in early August. If the bill survives this hearing, it would move on to the Assembly floor for a final vote in August to determine whether it goes to the Governor.

The bill appears likely to be amended prior to the hearing. These amendments, based on the author’s presentation of them, would reduce the 60-day advance notice to 30 days for brand drug price increases of 10 percent or more in a 12-month period.

Despite the potential reduction to a 30-day notice, the bill would still require a “justification” of a price increase at this 30-day mark, though this justification may now be limited to publicly available information by the manufacturer. Required information on marketing budgets and acquisition prices would not be limited to publicly available information.

A notice within 3 days of FDA approval would still be required for new drugs marketed at an initial price of $10,000 or more annually or per course of treatment. The amendments were proposed by the sponsors of the bill only days before its hearing in the Assembly Health Committee, and we believe they fail to adequately address any of our significant concerns with the bill.

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CLSA continues to strenuously oppose the bill and plans to continue its digital media campaign against the bill, in addition to our many other advocacy efforts. You can view our digital media campaign materials at Questions? Please contact Brett Johnson, CLSA’s Director, State and Local Government Policy (