SB 1071 Summary

• Authorizes a personal income tax credit from January 1, 2011 through December 31, 2015 for taxpayers age 55 or older equal to out-of-pocket prescription drug costs not covered by insurance or third parties.

• Imposes a tax of $0.0025 per pill on manufacturers and importers of Schedule II, III, and IV controlled substances for their first sale in California, effective January 1, 2011 through December 31, 2015.

• Creates the CURES Fund to collect tax revenues, which shall be allocated to the Department of Justice to fund the Controlled Substance Utilization Review and Evaluation System (CURES) program for monitoring controlled substance prescribing and dispensing.

• Requires manufacturers and importers of Schedule II, III, and IV controlled substances to register with the Department of Justice and file annual and quarterly reports on pill sales and imports.

• Limits total tax credits allowed to not exceed total taxes collected from the controlled substances tax, ensuring no net revenue loss to the state.