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What’s Inside: Mid-Year Update; Update on the IRA Drug Price ‘Negotiation’ Program; $215M in Tax Credits Available; Attend a Regional Committee Meeting; and more.
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Mid-Year Update on Policies Shaping the Life Science Industry
Biocom California’s policy team works out of our offices strategically located in San Diego, South San Francisco, Los Angeles, Sacramento and Washington, D.C., to advocate for issues that affect the life science industry at every level of government. In our mid-year update, we share the highlights of our regulatory and legislative efforts for the first half of 2024, including: hosting several events, such as our 2024 Emerging Technologies Fly-In that connected members to high-level officials in the nation’s capital; working with the City of Los Angeles to develop a “life science starter kit” for companies looking to relocate to or build their headquarters in the city; addressing proposals in the Bay Area seeking to increase business taxes; and helping secure continued shuttle service to a life science employment hub in San Diego.
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Update on the IRA’s Drug Price ‘Negotiation’ Program
On July 11, Biocom California members heard firsthand from Hogan Lovells’ Global Health Regulatory Counsel, Sam Marshall, about the proposed policy changes for the next round of drug price “negotiations” outlined in the Center for Medicare and Medicaid Services’ Medicare Drug Price Negotiation Program draft guidance. A recording of the webinar is available online and Biocom California submitted comments responding to the draft guidance earlier this month.
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Comments on USPTO Proposed Rule on Terminal Disclaimers
The U.S. Patent and Trademark Office (USPTO) published a proposed rule on Terminal Disclaimer Practice to Obviate Nonstatutory Double Patenting. A terminal disclaimer ensures that the term of the patent will not extend beyond the life of the initial patent which forms the basis of nonstatutory double patenting. The proposal would add a new requirement for terminal disclaimers to overcome nonstatutory double patenting which would negatively impact the life science industry. Biocom California submitted comments.
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House Ways & Means Committee Passes TCET Bill
On June 27, the House Ways and Means Committee met for a Markup of H.R. 1691, H.R. 2407, H.R. 8816 and H.R. 4818. All of the bills under consideration passed out of committee on a bipartisan basis. H.R. 1691, the “Ensuring Patient Access to Critical Breakthrough Products Act of 2023” sponsored by Reps. Wenstrup (R-OH) and DelBene (D-WA), provides four years of transitional coverage to medical devices approved by the FDA with Breakthrough Designation while the CMS makes a coverage determination. We wrote a letter of support for the bill and a committee summary.
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GO-Biz Now Accepting Applications for $215M 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 life science companies have been successful in receiving a tax credit. Starting July 22, applications can be submitted online and are due August 12 at 11:59 p.m. PDT. Application assistance, webinars and additional resources are available on the CCTC website.
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Bay Area
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Updates to Redwood City Business License Tax
The City Manager’s office in Redwood City plans to recommend adjustments to the Business License Tax but will maintain their current system of charging businesses based on the number of employees rather than gross receipts. The revised proposal, which will be detailed in the City Council agenda packet on July 18, will continue to use employee-based tax rates with different categories. Feedback is encouraged at the July 22 City Council meeting.
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San Mateo Board of Supervisors Approve $4.2 Billion Budget
The San Mateo County supervisors approved a $4.2 billion budget for the 2024-25 fiscal year with priorities focusing on services for children, families and seniors, housing and homelessness and emergency preparedness. Local budget officials warn the fiscal picture could look different in September when the supervisors will consider a final budget with revisions.
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Natural Gas Tax on Berkeley’s November Ballot
A ballot measure that would impose a tax on large buildings that rely on natural gas will appear on Berkeley’s November ballot. The Large Buildings Fossil Fuel Emissions Tax Ordinance, if approved by voters, would apply to all buildings in Berkeley over 15,000 square feet that depend on natural gas. Property owners would be responsible for paying the annual tax, which would be calculated based on the amount of natural gas used per year. Biocom California is actively engaged on the proposal. Reach out to our Bay Area Policy Manager Christy Shirilla with any questions.
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San Diego
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San Diego Land Use Policy Updates
The San Diego City Council has a month full of hearing land use policy updates prior to summer recess. At the beginning of July, council voted to approve the 2024 Land Development Code Update. By the end of July, they will make final votes on Blueprint San Diego (July 23) and the University Community Plan Update (July 30). Biocom California is actively engaged in advocating on behalf of our members impacted by these policies.
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Notice of Planned Permit Extension Ordinance
On July 16, San Diego City Council unanimously approved amendments to the Municipal Code allowing a 180 day extension to permit applications in addition to the same extension period that was approved in August 2023. Biocom California supported this proposal and plans to participate in the city’s implementation advisory group for the new policy.
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Water Rate Increase Not as Steep as Anticipated
The County Water Authority’s board tentatively shrank a proposed rate hike for wholesale water from 18% to 14% for 2025. This would be part of a three-year set of rate hikes that cumulatively raises rates by more than 40% by 2027 when compounded, if the board follows through with the planned increases.
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Greater Los Angeles
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Possible Changes to LA City Council and Board of Supervisors
Discussion of plans to reshape the city and county governments are currently underway in Los Angeles. The City Council voted in June to create a citizen’s commission to look at expanding the size of the council and reducing the size of each district. The County Board of Supervisors voted to direct lawyers to draft an amendment to the county charter that would nearly double the size of the five-member board and create an elected position to oversee day-to-day operations.
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Half-Cent Sales Tax Hike on November Ballot
The Board of Supervisors voted unanimously to let voters decide on a potential sales tax hike to fund affordable housing and homeless services. If passed in November, the quarter-cent tax Measure H, which expires in 2027, will be replaced with an indefinite increase of a half-cent sales tax.
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Biocom California’s Annual Greater LA Life Science Forum
Excitement ramps up as Biocom California gets ready to host our third annual Greater Los Angeles Life Science Forum on July 18 in West LA. This conference, now sold out for the second year in a row, unites local business leaders, industry companies, investors, elected officials and regional decision-makers to delve into the newest developments within the region’s life science sector. Our event will cap off with a networking reception and our Open House and Supplier Showcase.
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Upcoming Committee Meetings and Events
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Zoe Bilis
Manager of Regulatory Policy
Washington, D.C.
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Emily Cassel
Govt. Affairs Events & Project Manager
San Diego
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Laure Clark
Sr. Director, Federal Policy & Govt. Affairs
Washington, D.C.
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Melanie Cohn
Sr. Director, Regional Policy & Govt. Affairs
SD, LA, Bay Area
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Jimmy Jackson
Senior Vice President
& Chief Policy Officer
San Diego
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Casey O’Neill
Policy & Workforce Dev. Manager
Greater Los Angeles
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Biocom California Advocacy
Biocom California is the largest, most experienced leader and advocate for California’s life science sector. Our public policy staff is strategically located in the Bay Area, Los Angeles, San Diego, Sacramento and Washington, D.C. We work with federal, state, and local governments to collectively pursue outcomes that benefit regional life science growth and contribute to a more innovation-friendly state. With over 29 years of experience, Biocom California works on behalf of more than {{{dynamic_content_1600}}} member companies statewide.
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