Bill Text: CA SJR32 | 2013-2014 | Regular Session | Amended

California Senate Joint Resolution 32 (Prior Session Legislation)

Bill Title: Technology: biotechnology industry: corporate taxation.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2014-08-22 - From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. [SJR32 Detail]

Download: California-2013-SJR32-Amended.html

BILL NUMBER: SJR 32	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 22, 2014

INTRODUCED BY   Senator Correa
    (   Coauthors:   Senators  
Anderson,   Huff,   and Walters   ) 
    (   Coauthors:   Assembly Members 
 Allen,   Buchanan,   Conway,  
Harkey,   Mullin,   and Quirk-Silva   )


                        AUGUST 7, 2014

   Relative to the biotechnology industry.


	LEGISLATIVE COUNSEL'S DIGEST


   SJR 32, as amended, Correa. Technology: biotechnology industry:
corporate taxation.
   This measure would declare the support of the Legislature for
federal tax policies designed to encourage growth, incentivize
corporations to remain in the United States, and reduce competitive
disadvantages for companies based in the United States, particularly
those in the biomedical and life sciences industry. The measure would
further urge the President and Congress to enact specified tax
strategies to encourage domestic economic growth.
   Fiscal committee: no.



   WHEREAS, California has a rich history of innovation and a long
list of entrepreneurs and corporations that have changed the world in
the high technology and biotechnology industries and is proud of its
reputation as a global leader in the world economy; and
   WHEREAS, The biotechnology industry was born in California in
1976, with the Bay Area being home to the first biotechnology
company, the first biotechnology public offering, and the first
biotechnology drug to be approved by the United States Food and Drug
Administration; and
   WHEREAS, The life sciences industry, including research,
development, and educational activities as well as the manufacturing
of biopharmaceuticals and medical devices, has had a significant
impact on California by creating life-saving treatments for patients,
beginning in the lab and spanning years of efforts to transform
discoveries into vaccines, diagnostics, devices, and therapies to
improve patients' lives; and
   WHEREAS, The life science and biomedical industries are driving
the economy forward both at the national level and in California,
creating a highly educated and well-paid workforce and generating
billions of dollars of tax revenue that support critical public
service programs; and
   WHEREAS, California's life science industry contributes
significant economic benefits to  California,  
California by  creating $258 billion in economic activity and
generating over 1 million jobs paying $76 billion in salaries, wages,
and benefits. California companies introduced 8 new therapeutics to
patients in 2013, representing roughly a third of the new molecular
entities launched last year. The biomedical industry in California
alone employs over 267,000 people in 2,490 companies with total
revenue of $96 billion; and
   WHEREAS, The United States biomedical industry, which includes
biopharmaceutical, medical devices and related research and
development, testing, and labs, employed 1,219,200 people in 2007;
and
   WHEREAS, The existing federal and state tax structure is a
disincentive for companies that are domiciled domestically, and makes
American businesses more vulnerable to foreign takeovers; and
   WHEREAS, The basic United States corporate income tax rate is as
high as 39 percent for certain corporations, the highest rate in the
world, while the average rate among other major industrialized
countries is 25 percent; and
   WHEREAS, Existing tax policies make companies based in the United
States and California less competitive in the global market,
resulting in 20 major American companies over the last 2 years
reincorporating outside of the United States to reduce their tax
liabilities; and
   WHEREAS, Favorable tax policies in foreign countries may encourage
American firms to locate research and development facilities,
production facilities, distribution networks, and headquarters
overseas, taking with them countless jobs and substantial tax revenue
and economic activity that they produce; and
   WHEREAS, In light of these challenges, it is necessary to protect
American jobs, grow our domestic economy, and enable our companies to
compete globally; now, therefore, be it
   Resolved by the Senate and the Assembly of the State of
California, jointly, That the Legislature declares its support of
efforts to encourage more broad-based federal tax policies that
promote job growth, incentivize corporations to remain in the United
States, and level the playing field for companies based in the United
States by reducing competitive disadvantages for all industries,
particularly the biomedical and life sciences industry; and be it
further
   Resolved, That the Legislature urges the President and Congress of
the United States to implement tax strategies that promote domestic
economic growth, such as the reduction of the federal corporate tax
rate, renewal and permanent establishment of the federal research and
development tax credit, and repatriation of foreign-earned income;
and be it further
   Resolved, That the Secretary of the Senate transmit copies of this
resolution to the President and Vice President of the United States,
to the Speaker of the House of Representatives, to the Majority
Leader of the Senate, and to each Senator and Representative from
California in the Congress of the United States.