California Legislature—2013–14 Regular Session

Assembly Joint Resolution No. 17

Introduced by Assembly Member Patterson

(Coauthors: Assembly Members Achadjian, Allen, Bigelow, Chávez, Conway, Dahle, Donnelly, Beth Gaines, Gorell, Grove, Hagman, Harkey, Jones, Linder, Logue, Maienschein, Mansoor, Melendez, Morrell, Nestande, Olsen, Wagner, Waldron, and Wilk)

April 8, 2013

Assembly Joint Resolution No. 17—Relative to a repeal of a federal tax on medical devices.

LEGISLATIVE COUNSEL’S DIGEST

AJR 17, as introduced, Patterson. Federal tax.

This measure would urge the President and Congress of the United States of America to repeal the excise tax on medical devices to protect the medical device industry and its consumers.

Fiscal committee: no.

WHEREAS, Beginning in 2013, federal law imposed a 2.3
percent excise tax on the sales of certain medical devices; and

WHEREAS, The medical device industry employs
approximately 519,000 people throughout the nation, and many
companies have announced anticipated layoffs to counteract the
lost revenue caused by the payment of the tax; and

WHEREAS, California is home to over 1,200 medical device
companies that employ over 107,000 Californians; and

WHEREAS, Since approximately 20 percent of the nation’s
medical device industry workforce is located in California, the tax
disproportionately impacts California businesses and employees;
and

WHEREAS, The tax also increases the costs of medical devices
on consumers, causing a disproportionate and difficult burden on
the sick and elderly, who more often need medical devices; and

WHEREAS, The funds used to pay the tax could be better
allocated towards research, development, and job creation in the
medical device industry; and

WHEREAS, A bipartisan effort in Congress, including members
of the California congressional delegation, is working to repeal
the tax; and

WHEREAS, On March 21, 2013, the United States Senate voted
79 to 20 to support the Hatch-Klobuchar amendment to the Fiscal
Year 2014 Budget Resolution that would repeal the medical device
tax that was included in the federal Patient Protection and
Affordable Care Act; now, therefore, be it

Resolved by the Assembly and the Senate of the State of
California, jointly, That the Legislature urges the President and
Congress of the United States to repeal the excise tax on medical
devices to protect the medical device industry and its consumers;
and be it further

Resolved, That the Chief Clerk of the Assembly transmit copies
of this resolution to the President and Vice President of the United
States of America, the Speaker of the House of Representatives,
the Minority Leader of the House of Representatives, the Majority
Leader of the United States Senate, the Minority Leader of the
United States Senate, and to each Senator and Representative from
California in the Congress of the United States.