Drug Pedigree Legislation Scheduled for Senate Committee
The Senate Business and Professions Committee will hold a legislative hearing on Monday, April 7, focused on two proposals – SB 1270 (Cedillo) and SB 1307 (Ridley-Thomas) – related to California’s requirement that all dangerous (i.e. prescription) drugs must carry an electronic pedigree that documents each transaction as they move through the supply chain. Discussions are currently taking place between the two authors and staff about how best to move a proposal through the legislature, including the idea of combining both bills into a single measure. As currently written, SB 1307 – sponsored by the California Board of Pharmacy – would closely mirror the current law, making a small technical change and postponing the dates for compliance. SB 1270 – sponsored by the California Rx SafeTrack Coalition – would exempt products delivered through the normal chain of distribution, from a manufacturer to the manufacturer’s authorized distributor of record to the pharmacy, and would address issues with products currently in the distribution channels. CHI has met with various legislators and staff to discuss a pathway forward and is advocating for a reasonable solution that will protect the integrity of the supply chain. For more information, contact Sandra Pizarro, CHI vice president-state government relations (916-233-3497 or pizarro@chi.org).

Drug Marketing Bill Fails Passage, Granted Reconsideration
On Tuesday, April 1, AB 2821, authored by Assemblyman Mike Feuer (D-Los Angeles), legislation that would require pharmaceutical companies to report gifts, fees or payments above $50 to healthcare entities, as well as impose a limit of $250 in gifts or combinations of gifts that can be given to a health or medical professional during a calendar year, failed passage in the Assembly Health Committee. The legislation was granted reconsideration and will be heard again next Tuesday. Seven members of the Committee abstained from voting. CHI will meet with them next week to discuss how the legislation duplicates existing federal guidelines and places unnecessary burdens on manufacturers and patients in California. Under current law, companies must adopt a Comprehensive Compliance Program in accordance with federal guidelines that dictates spending on gifts or incentives and requires them to declare and report this information to the public.  While CHI supports full conformance with the Compliance Program Guidance for Pharmaceutical Manufacturers, CHI is opposed to this new proposal because there is no evidence that any problem exists under current law.

Democrats Push Bills to Fight Spread of Autism
Following three years of public hearings throughout that state by the Legislature’s Commission on Autism, Democratic lawmakers unveiled eight bills to address the rise in diagnosis of children with autism. Once considered rare, autism is now more prevalent than juvenile diabetes, childhood cancer and pediatric AIDS combined – affecting one out of every 150 children and one out of every 94 boys. Senate President pro Tem Don Perata, who sponsored the legislation that established the commission, is carrying the lead bill in the package, SB 1563. The legislation would direct the state Department of Managed Care and Department of Insurance to work to ensure that health plans and insurers provide equitable coverage for autism and other developmental disabilities.

Republicans Introduce Package of Education Funding Measures
As Democrats continue to highlight education cuts in their push to increase taxes, Republican lawmakers in the Assembly have introduced a package of education bills that they believe will free up existing funds. Republican Leader Mike Villines (R-Clovis) stated on Thursday that lawmakers must free school districts from state-issued mandates and provide more flexibility to local school districts to help them weather difficult times. Under the GOP proposal, schools would be allowed to carry over any unspent money from funds known as "categoricals" – money dedicated for specific purposes, such as special education and class-size reduction. Other bills in the package would relieve school districts from state mandates when the state doesn’t cover the costs. In response, Assembly Democrats criticized the Republican plan as an attempt to gain political cover after GOP members voted down a bill to close other tax loopholes.