What’s Inside: Biocom California Public Policy Recaps 2022; Applications Open for $120M in Budget Tax Credits; State Budget Figures Unveiled; and more.

2022 Policy Recap

Throughout 2022, our team worked tirelessly to monitor, analyze, and influence complex policy issues that impact our members at the federal, state and local levels. This recap report highlights last year’s priorities, our advocacy efforts, and our expectations for 2023.

From the Biocom California Policy Team

Happy New Year 

Federal Affairs

Biocom California Unveils NIH Funding Infographics

Biocom California has developed infographics to visualize where in California funding from the National Institutes of Health is going. In FY 2022, California received $5.4 billion in NIH funding, which funded almost 9,000 grants throughout the state. Infographics were made for California, San Diego County, Los Angeles County, and the Bay Area.

Key Inflation Reduction Act Dates Released by CMS

The Department of Health and Human Services announced key dates for year one of the Medicare Drug Price Negotiation Program. By September 1, 2023, CMS will publish the first 10 Medicare Part D drugs selected for the program. The negotiated maximum fair prices for these drugs will be announced by September 1, 2024, and prices will be in effect starting January 1, 2026.

Biocom California Seeks Comments on FDA/USPTO Collaboration 

Following the President’s Executive Order on competition, the USPTO and FDA have been instructed to collaborate on initiatives to examine patents as barriers to drug competition. The two agencies are seeking public comments on the proposed initiatives. Biocom California is developing a response to this docket. Please contact Rick White by Thursday, January 19 with any comments.

State Affairs

Extreme Weather Unlikely to Break Drought

California has experienced intermittent extreme weather conditions for weeks, but much of the rain has washed into the ocean. While some reservoirs are filling and most of the state has been removed from the extreme drought category, drought conditions could persist after the storms fade. The Bay Area, LA, and San Diego regions are now mostly in the moderate category.

GO-Biz Now Accepting Applications for $120M in Tax Credits

The California Competes Tax Credit (CCTC) is an income tax credit available to businesses that want to grow in California. Biocom California was a key partner in creating this program and many growing life science companies have been successful in receiving a tax credit. Applications are due by Monday, January 23, at 11:59 p.m. and application assistance is available.

Governor Newsom Unveils 2023-24 State Budget

Governor Gavin Newsom unveiled his budget plan on January 10 which includes a projected deficit of about $22.5 billion. Despite the need to restrain some new spending or enact programmatic cuts, the state currently enjoys reserves of about $35.6 billion—which should ease budget contraction in 2023.

Regional Affairs

San Diego

Contractor Verification to be Required for Certain Projects

Beginning January 1, certain projects deemed complete after December 31, 2022, will now require contractor and subcontractor verification to comply with the Transparency Ordinance that was passed by San Diego City Council late last year. Projects that don’t adhere may be subject to enforcement, including suspension or other remedies to ensure compliance.

County Swears in Supervisors and Other Elected Officials

The swearing in ceremony on January 9 welcomed six newly elected and returning officials, including District 4 Supervisor Nathan Fletcher and District 5 Supervisor Jim Desmond. District 1 Supervisor Nora Vargas was unanimously elected to serve as chair of the board, while District 3 Supervisor Terra Lawson-Remer was elected vice chair.

New San Diego City Housing Proposal

A new proposal would loosen the rules that govern where homes can be built, allowing for new housing to be up to one mile away from transit rather than a half-mile. This change could jump-start production of high-rise housing and backyard apartments, making an additional 5,224 acres eligible for developer density housing and 4,612 acres eligible for backyard apartments.

Los Angeles

LA Declares State of Emergency on Homelessness

Both the County and City of LA have declared a state of emergency on homelessness in the region. Recently sworn-in LA Mayor Karen Bass made the declaration her first act in office. The state of emergency will help clear the way for efforts to improve upon the housing crisis both at the city and county levels.

Natural Gas Bills Increase for Many Southern California Residents

While natural gas prices have plunged in many parts of the country, Southern California Gas Co. and San Diego Gas & Electric have warned customers that their January bills could double. The historically high gas costs are mainly due to sinking inventories, supply constraints, and the colder-than-normal temperatures seen at the start of the year.

LA Council President Releases New Council Committee Assignments

The new council committee assignments, released by Council President Paul Krekorian and subject to approval by the full council, include five new members joining the council. Krekorian appointed Councilman Bob Blumenfield to chair the Budget and Finance committee and consolidated the Homelessness and Poverty Committee with the Housing Committee to create the Housing and Homelessness Committee.

Bay Area

San Francisco’s $728M Budget Deficit 

In an effort to tackle a looming budget deficit, San Francisco Mayor London Breed ordered budget cuts across city departments. Over the next two years, the projection shows a deficit of $200M in the first year and $527M in the second year. Public safety, staffing shortages, homelessness and mental health remain top priorities.

New South San Francisco Interim City Manager 

South San Francisco names Sharon Ranals the new interim city manager as the City Council looks for a replacement to Mike Futrell, who announced his departure for Riverside County in November. Ranals will continue her involvement in the projects she was working on as assistant city manager.

San Francisco Board of Supervisors Elects New Board President

After 17 rounds of voting, Supervisor Aaron Peskin broke the six-vote threshold and was elected. The vote was stuck at a stalemate for 12 rounds of voting before Peskin nominated himself in hopes of ending the contest. The division seen here for San Francisco is a major outlier from most votes in recent history.

Meet the Team