[roenxi]

Not knowing anything about the specifics of California, but bad law here seems to follow a rough process:

1. Centralise power in a regulatory body that will raise costs every time something goes wrong.

2. The barrier to getting things done rises until there is a crisis.

3. The barrier is so high only someone behaving like a financial illiterate would enter the market, so legislators task government with entering the market or underwriting someone who can.

So I'd assume that legal ability that was ever the problem. Usually it is regulatory requirements implying a minimum size of the actor needed to take on the risk. I see a few comments that this time around the technical term implementing this for insulin is "bioequivalence" but the broader pattern applies in a few markets and should be called out.