Measures Raise Concerns as Bill Deadline Approaches
Lawmakers in Sacramento will make a final push next week to move legislative proposals out of their houses of origin ahead of the June 8 deadline.  CHI is focused on three proposals that, if enacted, pose distinct threats to our industry:

• Clinical Trial Disclosure (SB 606):  CHI is currently working with Senator Jack Scott (D-Altadena) on amendments to his clinical trial disclosure legislation in order to harmonize it with pending federal and existing state legislation.  In the bill’s present form, CHI opposes it because it duplicates federal regulations, will add significant compliance cost and could jeopardize companies' proprietary business information.
• Permissible Chemical Exposure Limits (AB 515):  Authored by Assemblywoman Sally Lieber (D-Mountain View), this legislation would require the Occupational Safety and Health Standards Board (OSHSB) to duplicate its rulemaking for hundreds of chemicals that already have permissible exposure limit (PEL) standards.  Additionally, the measure requires the OSHSB to set PEL standards as recommended by the Office of Environmental Health Hazard Assessment (OEHHA); however, no guidelines are provided in the bill. Currently OEHHA does not receive input from industry in making recommendations and CHI is concerned that industry’s participation would be marginalized under the proposed legislation. 
• Intellectual Property (SB 771): CHI remains opposed to SB 771, authored by Senators Sheila Kuehl (D-Santa Monica) and George Runner (R-Antelope Valley), legislation that would impose recoupment and revenue sharing provisions, as well as pricing and access requirements, on intellectual property (IP) agreements negotiated by organizations that accept grants from the California Institute for Regenerative Medicine (CIRM).  Currently CIRM is developing a comprehensive IP policy and CHI believes that this process should be allowed to run its course before contemplating legislation.  CHI will continue to oppose this and other IP legislation likely to discourage public-private partnerships by unduly burdening technology transfer agreements.

Final Adjustments to State Budget Package Begin This Weekend
The final chapter in the annual budget process will begin this weekend as a bipartisan legislative conference committee works over the next seven to 10 days to reconcile differences between the Assembly and Senate budget packages.  With relatively few sticking points among the two drafts and the governor’s proposal, lawmakers are optimistic that an agreement may be reached before the June 15 deadline.  There is an extra incentive for fiscal timeliness this year – an anticipated term limits measure on the Feb. 5 election ballot means that lawmakers want to avoid irritating voters with a prolonged budget stalemate.  One item that CHI is working to remove from the budget is a proposal to move the state’s radiation control program from the Department of Health Services to the jurisdiction of the California Environmental Protection Agency.  CHI believes that the current program is adequate and that an unnecessary change at this time would be disruptive and expensive.

State Poll Shows Improved Public Perception of Fiscal Management
A poll released by the Public Policy Institute of California on Thursday, May 31, shows that Californians are feeling better about the state’s fiscal health despite the fact that they know little about how the state is handling their money.  Over the past three years, the share of Californians who describe the state’s budget as a big problem has declined from 73 percent in May 2004 to 44 percent today.  However, the survey showed that residents don’t know the basic facts about the $103.8 billion general fund budget, with only 10 percent able to identify both the state’s top spending category (K-12 education) and top revenue source (personal income tax).  Redistricting and term limits were also addressed in the poll.  Two-thirds of Californians believe that the governor and legislators should not be able to draw political districts, a job better suited to an independent citizens commission.  Respondents were favorable (52 to 40 percent) to a proposed ballot initiative that would restructure the state’s term limit law, reducing the total time an individual can spend in the Legislature, but allowing service to be done in one House.  View poll