Senate Health Committee Approves Clinical Trial Disclosure Bill
On Wednesday, May 9, the Senate Health Committee approved SB 606, authored by Senator Jack Scott (D-Pasadena), legislation that would require any pharmaceutical company that sells, delivers, offers for sale, or gives away any prescription drug within California to make publicly available the results of every completed clinical trial the company has conducted (except a phase 1 trial), along with explanation of any incomplete clinical trial (except a phase 1 trial). The measure will now move to the Senate floor where it may be brought up as soon as Wednesday, May 16. CHI opposes this bill because it duplicates federal regulations, is overly broad, and could jeopardize companies' proprietary business information.
Tax Bills to Be Heard in Assembly Committee
The Assembly Revenue and Taxation Committee will take up two measures on Monday, May 14, of importance to CHI and its membership. AB 1370, authored by Assemblywoman Sally Leiber (D-Mountain View), and AB 1147, authored by Assemblywoman Leiber and Assemblyman Gene Mullin (D-South San Francisco), would change tax law dealing with net-operating losses which, in its current form, fails to address the unique needs of the life sciences industry. By extending the carryover period and allowing the transfer or sale of losses, the law would enable companies to generate additional capital as they bring new technologies to market.
Governor and Legislature Push Health Care Reform
On Thursday, Governor Schwarzenegger, legislative leaders and a coalition of business executives presented a united front, calling for an overhaul of the state's health care system. But midway through the legislative session that ends September 14, Democrats and Republicans remain divided on how to reduce costs and expand coverage among the more than 6.5 million uninsured Californians. Plans by the governor and Democrats would require employers to contribute to workers' health insurance; Republicans remain opposed to employer mandates. The newly formed coalition is the brainchild of Steve Burd, chairman of the Safeway grocery chain. It has nearly 40 large companies as members, including Blue Shield of California, Raley's grocery chain and GlaxoSmithKline. The coalition has called for "market-based" solutions, including tax incentives, and requiring everyone to purchase insurance, with financial assistance provided to the poor.
Additional Cuts Expected in Governor's Revised Budget
When Governor Schwarzenegger releases his revised budget to the legislature next week, it likely will contain additional spending cuts beyond those originally proposed in January. Budget forecasters watched with concern as state income-tax revenue, reflecting a decline in capital gains taxes from the sluggish real estate market, dropped below expectations during the first months of the current fiscal year. The governor and his staff met this week to make additional budget cuts. Certain cuts relating to welfare health services, including for children, that were a part of the original January budget are sure to remain in, setting the stage for a showdown with Democratic lawmakers who have made clear they oppose reducing the social safety net for children.