AB 926 would reverse a California ban on paying women for donating their eggs to science.
Supporters of the measure say encouraging such donations will support research that could benefit all women in the future.
The bill would also allow eggs and embryos left over from fertility treatments to be donated to science.
The measure requires a human subject research panel to determine how much a woman should be compensated. Industry guidelines suggest women should be paid between $5,000 and $10,000 when donating eggs for fertility treatments.
Critics say reversing the ban could lead to the exploitation of low-income women who might need the money.
The measure will be considered in the Senate Health Committee this week.