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SR-88 (2019-2020)

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CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Resolution
No. 88


Introduced by Senator Chang

July 02, 2020


Relative to the medical supply chain.


LEGISLATIVE COUNSEL'S DIGEST


SR 88, as introduced, Chang.

WHEREAS, The global pandemic of the novel coronavirus, known as COVID-19, has underscored the vulnerability of the United States and California with respect to the consolidation of medical supply manufacturing in China; and
WHEREAS, In October 2019, shortly before the COVID-19 crisis began, Dr. Janet Woodcock, the director of the Center for Drug Evaluation and Research at the United States Food and Drug Administration, testified before the House Committee on Energy and Commerce. Dr. Woodcock stated, “Historically, the production of medicines for the U.S. population has been domestically based. However, in recent decades, drug manufacturing has gradually moved out of the United States.” Woodcock further stated on the record, the “FDA’s data show that the number of registered facilities making active pharmaceutical ingredients in China has more than doubled” between calendar years 2010 to 2019, inclusive; and
WHEREAS, China is known as the biggest producer of medical grade face masks in the world, and the country supplied half of the global supply in the 2018 calendar year; and
WHEREAS, According to the Department of Finance, the largest single expenditure by the State of California during the COVID-19 crisis amounted to almost $1 billion in medical grade masks, including desperately needed N95 respirators, from China; and
WHEREAS, The consolidation of medical supply chains in China is especially disconcerting as it relates to critical pharmaceuticals; and
WHEREAS, The market in the United States is dependent on Chinese pharmaceuticals for 97 percent of antibiotics, 95 percent of ibuprofen, 90 percent of vitamin C, 91 percent of hydrocortisone, 70 percent of acetaminophen, and as much as 45 percent of heparin; and
WHEREAS, Concentrated dependency on Chinese suppliers for pharmaceuticals is risky at any time. However, during a global pandemic, this dependency becomes a national security matter. Indeed, the COVID-19 pandemic forced the closure of Chinese pharmaceutical manufacturers, thereby disrupting supply to the United States; and
WHEREAS, There is growing bipartisan congressional support for legislative proposals to divert medical supply chains away from China; and
WHEREAS, Federal legislation has been introduced that would enact the Protecting our Pharmaceutical Supply Chain from China Act of 2020. This proposal would require a registry to track pharmaceuticals, and would prohibit the federal government and federally qualified health centers from making purchases that include active pharmaceutical ingredients produced in China; now, therefore, be it
Resolved by the Senate of the State of California, That the Senate urges the President of the United States and the Congress of the United States to fully act within their power to move the United States medical supply chains away from China and create incentives to produce a greater share of pharmaceuticals in the United States; and be it further
Resolved, That the Secretary of the Senate transmit copies of this resolution to the President of the United States, to the Speaker of the House of Representatives, to the Majority Leader of the Senate, to each Senator and Representative from California in the Congress of the United States, and to the author for appropriate distribution.