Amgen suit is early test for state drug boards

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State boards that aim to limit what health plans pay for prescription drugs are pressing ahead with their work as Colorado’s panel battles what’s expected to be the first in a long line of drug industry suits. And California has emerged as the front line in the battle over regulating artificial intelligence. Keep reading for more on the policies shaping the nation.

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Analysts predict a flood of pharmaceutical industry lawsuits against state drug boards, but the possibility of challenges hasn’t stopped the boards from moving forward with their work. A key initial legal test is in Colorado, where Amgen is challenging the state’s board over its vote to pursue an upper price limit for its autoimmune treatment Enbrel.

• State affordability boards could have the upper hand in court battles, given pharmaceutical companies have so far failed in challenging the federal Medicare Drug Price Negotiation Program, and because the panels were created with the possibility that they would face lawsuits, board members and policy consultants say.
• Boards in Maryland, Minnesota, and Washington also have the authority to set upper price limits. Nine additional state boards only have the power to analyze cost data to recommend policies to states. (Bloomberg Government)
• Colorado’s panel could soon face additional litigation: The board voted Friday to designate Johnson & Johnson’s Stelara as “unaffordable.” (Bloomberg Government)

California is undertaking one of the biggest efforts to regulate artificial intelligence, setting off a fierce lobbying push by tech companies. Lawmakers have advanced about 30 measures addressing AI-related fields, including proposals opposed by industry groups meant to prevent AI tools from discriminating in areas like housing, health care, and the workplace.

• The state legislature aims to vote on the bills by Aug. 31. One measure gaining momentum requires safety tests of advanced models offered by companies like OpenAI, and allows the state attorney general to sue over violations. (New York Times)

Meanwhile in New York, AI companies avoided what would have been the nation’s first state legal mandate to warn users about the technology’s potential for generating error-ridden or inappropriate text and images. The Senate passed the measure Thursday, but it didn’t clear the Assembly before lawmakers adjourned for the year.

• New York lawmakers did send Gov. Kathy Hochul (D) two other AI-related bills. One would limit state agencies’ use of AI in making certain decisions; the other would give fashion industry workers protections against unauthorized AI-generated use of their likeness. (Bloomberg Government)

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SOVEREIGN DEBT

Before closing out their legislative session, New York lawmakers failed to pass legislation aimed at preventing holdout bond investors from using state courts to sue defaulted foreign governments. The bill’s failure marks a setback for a group of politicians, nonprofits, and activists in their efforts to bring greater legal oversight to defaulted sovereign debt restructurings. (Bloomberg Government)

LABOR

Uber and other gig companies lost a legal challenge to a California law that treats most workers by default as employees with broader rights than independent contractors. (Bloomberg Government)

CANNABIS

Florida Gov. Ron DeSantis (R) vetoed legislation that would have banned hemp products with cannabinoids such as delta-8 over concerns that would “impose debilitating regulatory burdens on small businesses.” (Orlando Sentinel)

TECH

A California lawmaker shelved a bill that would ban TikTok on state government devices as a result of a new federal law that forces its parent company to sell the app or have it shut down in the US. (Bloomberg Government)

ENERGY & ENVIRONMENT

Maryland Gov. Wes Moore (D) on Friday announced a partnership with the federal government to secure more lease areas for offshore wind development. (Baltimore Sun)

Many cities are pushing back on an Environmental Protection Agency proposal that would require all water systems nationwide to replace all lead pipes by 2037, citing costs, lack of funding, and other concerns. (Bloomberg Government)

TAX

Illinois Gov. J.B. Pritzker (D) signed a measure that will provide $25 million in employment tax credits to media outlets that hire and retain local journalists. (Bloomberg Government)

New York lawmakers gave final approval to legislation that would give homeowners a 20-year property tax break if they make upgrades to reduce carbon emissions. (Bloomberg Government)

A state judge ruled Friday that Washington officials may tell voters that revenue will decline by about $1 billion a year if they approve a ballot measure to repeal the capital gains excise tax. (Bloomberg Government)

COURTS

Illinois lawmakers gave final approval to a measure aimed at expanding pretrial services to all circuit courts and counties in the state. (Center Square)