Public Policy Briefing
January 13, 2017
Expect the Unexpected in 2017
   
As we begin the first year of a Trump administration and prepare for a full election slate here at home in New Jersey, uncertainty is the new certainty.
 
President-elect Trump is keeping his "not business as usual" pledge with his tweets, his unorthodox Cabinet choices, press conference remarks, and his departures from traditional pre-Inaugural activity.
 
Here in New Jersey, the gubernatorial campaign has already begun to dominate the news, with candidates and non-candidates announcing their intentions. Governor Chris Christie will release his final budget on February 28, setting off months of hearings and debate before the budget is finalized on June 30. With both the Senate and the Assembly up for re-election, budget deliberations will provide a preview of campaign agendas.
 
Here's what to watch for in Washington and Trenton. 
Washington      
 
In most years, a Republican President with an entirely Republican Congress would be considered a rare opportunity to move a pro-business agenda forward. Indeed, that thought propelled the market to almost historic highs in the "post-Trump bump." However, the news hasn't been good for biotech and pharmaceutical companies of late: 
  • Stock prices dropping after a press conference industry call-out and tweets that referenced pricing
  • Anti-globalization rhetoric
  • Proposed taxes and tariffs on international manufacturing
  • Discussion of a proposed "vaccine commission"
What happens when campaign promises collide with Congressional agendas? Frustration and gridlock may doom the Trump agenda, or the pro-change message delivered in November may prevail. We anticipate headlines and potential action on these key issues for the industry:
  • Repeal/replacement of the Affordable Care Act/Obamacare
  • Drug pricing and transparency
  • Reauthorization of PDUFA fees that expire in September 2017
  • H1-B Visa program
  • Reimportation
  • Non-interference in Medicare drug purchasing negotiations
New Jersey Delegation Well Positioned
 
The change in control was good news for New Jersey, as Republican Members advanced in seniority to strong Committee positions:
 
-    Rep. Rodney Frelinghuysen (R-11) will chair the House Appropriations Committee, one of the "Big 3" powerful House Committees.
 
-    Rep. Chris Smith (R-4) is the Senior Member of the House Committee on Foreign Affairs.
 
New House Committees have been good to New Jersey Members: Rep. Leonard Lance (R-7) will sit on the new House Ethics Committee while remaining on the Health Subcommittee of the Energy and Commerce Committee, and Rep. Frank LoBiondo (R-4) will chair the newly-created 10-person CIA Subcommittee of the House Permanent Select Committee on Intelligence. The new Subcommittee has jurisdictional oversight over the CIA programs and Central Intelligence Agency Retirement Fund.
 
New Jersey will add a seat on the House Financial Services Committee with both Rep. Tom MacArthur (R-3) and newly-elected Rep. Josh Gottheimer (D-5) joining the Committee. Congressman Scott Garrett, who was defeated in November by Rep-elect Gottheimer, was previously the sole New Jersey Member of the Committee.
 
On the Democratic side of the House, Rep. Frank Pallone (D-6) remains the Ranking Member on the House Energy and Commerce Committee. Rep. Bill Pascrell (D-9) has been named the top-ranking minority member of the House Ways & Means Subcommittee on Trade. In the Senate, Senator Cory Booker joins Senator Robert Menendez on the powerful Foreign Relations Committee. 
Trenton
 
With the introduction of Governor Christie's final budget in late February, most Assembly and Senate business will focus on budget hearings. Education funding formulas will be prominent in that discussion, especially since that issue is a centerpiece of the campaign of Assemblyman Jack Ciattarelli (R-16), who joins Lieutenant Governor Kim Guadagno as an announced Republican gubernatorial candidate.   
 
The Democratic field continues to expand, with Senator Ray Lesniak (D-20), Assemblyman John Wisniewski (D-19) and activist and former firefighter Bill Brennan joining former Ambassador Phil Murphy as the announced Democratic candidates. April 3 is the deadline for Democrats and Republicans filing to run for Governor and the Legislature.
 
BioNJ will continue to focus on these issues in the remainder of this legislative session.
Increased Angel Investor Tax Credits
 

BioNJ has long supported the Angel Investor Tax Credit, which provides tax credits for angel investors equaling up to 10 percent of the investment. New Jersey has been a leader in offering these credits, but ten percent is one of the lowest angel investor tax credits allowed in the country. A3631/S158 expands the tax credit to holding companies. BioNJ supports passage of this legislation and urges the sponsors of these bills to modify their respective proposals to include an increase in the angel investor tax credit to 25 percent. Countless examples of successful execution of this program exist across the country.
Mandated Health Benefits Coverage for Opioid Analgesics with Abuse-Deterrent Properties
 
The research and development of opioid analgesics with abuse-deterrent properties is intended to help deter the abuse, misuse and diversion of these prescription pain medication while ensuring that Patients in pain continue to have appropriate access to these important therapies. A1833/S1313 would increase Patient access to these medications, and BioNJ supports passage of the legislation, especially in light of Governor Christie's focus on drug addiction.
 
BioNJ again thanks Governor Christie for signing A3793/S2024 into law last month. The new law clarifies that approval by the FDA is not required when a drug manufacturer is filing a registration statement and also specifies that the Department of Health will be required to promptly review any completed registration statement submitted to them. BioNJ supported passage of this legislation.
 
BioNJ also thanks Governor Christie for reinstating New Jersey/Pennsylvania tax reciprocity. This could potentially have impacted New Jersey life sciences companies that hire qualified employees from throughout the region. Full access to our region's well-educated workforce is one of our strongest attractions for new life sciences companies considering where to locate.
For more information about BioNJ's Public Policy program, please contact Rebecca Perkins, BioNJ Vice President, Government Affairs, at [email protected].  
For more information about BioNJ, visit www.BioNJ.org.