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Public Policy Newsletter Article

Legislation in Play in 2021 Becomes Clearer

  • 2021-02-25T16:00:00.000+0000
  • Author: Jimmy Jackson

Friday, February 19 was the deadline to introduce new legislation for 2021. Many bills right currently read as “intent of the Legislature” or “spot bills” (bills which only identify the code section they will affect but are not populated with substantive language at this time) right now, and many other policy matters will be resolved in the state budget process, but this nonetheless gives a glimpse into what this year will bring. We will highlight just a few for you here.

Assembly Bill (AB) 933 (Daly) will reduce patient costs at the pharmacy counter by requiring the consumer’s cost sharing portion of a prescription drug be reduced by a factor of 90% of rebates received or to be received. This will ensure that patients benefit from drug rebates required of a manufacturer.

AB 1400 (Kalra) is a single payer health care system proposal.

Assembly Bills 264 (Voepel) and 593 (Petrie Norris) seek to assist the growth of the life science industry. AB 593 would restore the ability of life science companies to fully utilize net operating loss (NOL) and research and development credits, which were limited last year in anticipation of state budget losses as a result of the pandemic. Instead, California has posted a budget surplus. AB 264 uses the existing California Competes program to facilitate targeted tax credits awarded to companies who agree to meet negotiated metrics such as jobs created.

Finally, AB 458 (Kamlager) is a proposal to make the state a licensed distributor of drugs imported from Canada, as well as allowing individuals to import drugs for their own personal use or use by an immediate family member. The bill uses a finding in the waning days of the Trump Administration that such importation is safe.

These and all bills Biocom has taken a position on can be found on our California Advocacy page here.