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BioCommunique Article

Learn more about the bills Biocom is engaging on, including SB 972, AB 398, and additional bills that could impact life science companies.

State Legislature Finishing Pre-Recess Work

  • 2020-06-24T19:00:00.000+0000
  • California
  • Author: Jimmy Jackson

This year’s compressed state legislative session continues work on the 2020-21 state budget (see accompanying story) as it also makes progress on remaining bills, especially those related to the COVID-19 crisis. Legislative leadership in both houses has strongly encouraged members to minimize legislation that is not pressing this year or does not deal in some way with one of those subject areas.

One recently amended bill that Biocom is engaging on is SB 972, which would publicly identify on a Franchise Tax Board website companies with gross receipts above a certain threshold (currently identified as $5B), including those companies’ state tax liability and amount of any credits received. The coalition (of which Biocom is a part) letter opposing the bill can be found here. This bill passed the Senate floor on a 25-12 vote on June 22 and now goes to the State Assembly.

Changes to another bill, AB 398, propose to implement a $275/employee tax for companies employing over 500 people who “perform any part of their duties” in California (for instance, salespeople who are not based in CA but service clients in the state). Biocom is also working with an opposition coalition on this bill, here is the opposition coalition letter. This bill is awaiting assignment to a Senate policy committee.

Other bills authors are still pursuing are still evolving, and Biocom continues to monitor changes closely as it is still difficult to assess what exactly will be pursued by legislators. You may keep current on the status of all bills Biocom is tracking here.