California Governor Jerry Brown signed S.B. 17 into law on Monday. As we reported when S.B. 17 was sent for Governor Brown’s signature, the law requires manufacturers of prescription drugs with a wholesale acquisition cost (WAC) of more than $40 to give 60 days’ notice of any increase in WAC of greater than 16 percent to certain purchasers and annually report increases subject to the notice requirement to the California Office of Statewide Health Planning and Development (OSHPD). In addition, the new law will impose certain cost reporting obligations on health insurers and health care service plans with respect to prescription, generic, brand name, and specialty drugs. According to the National Conference of State Legislatures, California is one of twelve states to pass legislation regarding pharmaceutical pricing and payment this year.