Potential crackdown on foreign genomics firms sparks a lobbying fight

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Nov 29, 2023 View in browser
 
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By Caitlin Oprysko

Presented by

Contraceptive Access Initiative

With Alex Daugherty, Daniel Lippman  

LOBBYING FIGHT BREWS OVER POTENTIAL CRACKDOWN ON FOREIGN GENOMICS FIRMS: Language in this year’s defense authorization bill that would bar the government from continuing to do business with genomics companies with ties to China has sparked a lobbying fight, as lawmakers work to put a bow on a compromise version of the National Defense Authorization Act.

— Negotiators in both chambers met formally for the first time today to reconcile the differences between the House- and Senate-passed versions of the bill, with final votes on the package possible as soon as next week, our Connor O’Brien reports.

— Among the discrepancies between the two bills is language in the House version prohibiting federal procurement of or funding for biotech equipment or services from covered companies that are headquartered in or subject to the jurisdiction of foreign adversary. That provision is not in the Senate version, but House Select China Chair Mike Gallagher (R-Wis.) and Sen. Bill Hagerty (R-Tenn.) are pushing to make sure the ban is included in the final bill.

— Chinese genomics companies singled out in the potential ban have snapped up lobbyists in recent months as they try to beat back the threat, meanwhile more than a dozen conservative advocacy groups are urging Congress to back Gallagher and Hagerty's push.

— In a Nov. 17 letter to the Hill, groups including Heritage Action, Americans for Limited Government, the Benjamin Rush Institute and Frontiers of Freedom argued to lawmakers that including the ban in the final NDAA "would establish necessary safeguards to ensure that Americans' genomic information is protected from potentially malign actors seeking to amass and leverage this sensitive personal information to achieve economic and national security goals,” Fox News’ Houston Keene reported.

— The House bill names several Chinese companies that would be subject to the ban, including Shenzhen-based BGI Group. Subsidiaries of BGI have already been placed on numerous U.S. blacklists over allegations that their genetic analysis has been used in surveillance and repression of minorities by the Chinese government.

— Over the summer, BGI Group retained a team of lobbyists at Steptoe & Johnson over the summer that includes former Puerto Rican Gov. Luis Fortuño and former trade official Jeffrey Weiss to lobby on the genomics language in the NDAA, paying the firm a whopping $270,000 for the work between July and September.

— An affiliated genomics company that would be subject to the ban, Complete Genomics, also turned to K Street for help in recent weeks. The company, which is owned by former BGI Group subsidiary MGI, brought on The Vogel Group in September to lobby on “health care, industry competition, and market access” issues, according to a registration filing. The firm’s third quarter report shows it was paid $150,000 for less than a month of work to lobby on the genomics provision.

WuXi AppTec, yet another genomics company that under the House bill would face a 90-day review by the Pentagon to determine whether it should be included in the ban, hired FGS Global to help make introductions on the Hill and in the Biden administration, according to lobbying disclosures. FGS Global reported earning $40,000 in lobbying revenues for less than a month of work. WuXi also registered its first in-house lobbyist last month, disclosures show.

Happy Wednesday and welcome to PI. What’s going on out there? Drop me a line: coprysko@politico.com. And be sure to follow me on X, the platform formerly known as Twitter: @caitlinoprysko.

 

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FLYING IN: JetBlue’s flight attendants and pilots’ unions are hitting the Hill this week to help sell the airline’s proposed merger with Spirit Airlines by demonstrating labor support for the deal in the midst of the Biden administration’s moves to unwind it.

— Last week, the Justice Department wrapped up its case in a federal antitrust trial seeking to block the merger, while Transportation Secretary Pete Buttigieg said earlier this month that his department plans to look more closely at competition within the transportation sector. JetBlue crewmembers are set to meet with more than 50 members on both sides of the aisle in the House and Senate to register their concerns with that stance.

— The Travel Technology Association kicked off a fly-in today as well, with members set to meet with lawmakers or staff from the Senate Commerce and House Transportation and Infrastructure committees. The trade group planned to tout the virtues of global distribution systems, which travel agents and online travel sites like Expedia and Priceline use to compare flight options and purchase tickets.

— Meanwhile half a dozen collegiate athletic conference commissioners took time out of their conference championship week on Tuesday to implore lawmakers to pass federal NIL legislation. Jim Phillips of the Atlantic Coast Conference, Tony Petitti of the Big Ten, Brett Yormark of the Big 12, Greg Sankey of the Southeastern Conference, Jacqie McWilliams of the Central Intercollegiate Athletic Association, Sonja Stills of the Mid-Eastern Athletic Conference, Anthony Holloman of the Southern Intercollegiate Athletic Conference and Charles McClelland of the Southwestern Athletic Conference met with members of both parties’ leadership as well as those putting together an NIL bill.

DEPT. OF HOLDING YOUR NOSE: “Republican mega-donor Bernie Marcus said on Tuesday he would likely still give money to Donald Trump's 2024 presidential bid if the former president was convicted of a crime - but the billionaire does not plan to be one of his biggest financial backers,” the Home Depot co-founder told Reuters’ Alexandra Ulmer.

— “Trump faces four criminal cases, including state and federal charges stemming from his efforts to overturn his 2020 election loss to Democrat Joe Biden. Trump, 77, denies any wrongdoing and has pleaded not guilty in all four cases. … Asked in an interview with Reuters whether he would still support Trump if he were convicted, Marcus replied, ‘I think so. Because I think it's all trumped up.’”

— “Marcus, 94, who supported Trump's White House runs in 2016 and 2020, said he had spoken to the former president recently. ‘I never discussed his legal fees or his legal problems,’ Marcus said, adding that Trump was ‘very happy’ about his support.”

— “Marcus would not be drawn into specifics of his donations this time around, saying only he would support Trump in the primary and in the general election against Biden in November 2024, should Trump be the nominee. However, Marcus cautioned he would not be a major financial supporter. ‘Of course, I'm going to support him to some extent, but I'm not one of his big givers, that's for sure,’ Marcus said.”

— “The billionaire said he also liked Republican presidential candidates Nikki Haley, a former U.N. ambassador and South Carolina governor, and Florida Governor Ron DeSantis, but did not think they could beat Trump in the nominating contest.”

ICYMI — ANOTHER PAYDAY FOR LEO’S FIRM: “Conservative judicial activist Leonard Leo’s consulting firm received $21 million in 2022 from a group that is a pillar of Leo’s aligned nonprofit network,” POLITICO’s Hailey Fuchs and Heidi Przybyla report.

— “That group, The 85 Fund, is part of an umbrella of nonprofits under investigation by the Washington, D.C. attorney general for potentially violating tax laws. Carrie Severino, a former law clerk to Justice Clarence Thomas, is a director of the group.”

Tax filings obtained by liberal watchdog group Accountable.US, show “that last year, The 85 Fund’s highest paid contractor was CRC Advisors, the for-profit firm where Leo is chairman.”

— “The revelation comes as D.C. Attorney General Brian Schwalb is looking into the finances and expenditures associated with The 85 Fund and as Leo faces enhanced congressional scrutiny for his role in bolstering the conservative legal movement. This includes gifts he may have arranged to Supreme Court justices after reports that he assisted in setting up a gift for Justice Samuel Alito.”

— “After CRC, the next-highest paid contractor is $1.4 million to the Valentine Group, described as an educational advocacy group. The third-highest paid contractor is a group registered to the home address of Leo’s friend, Ronald Cass, called the Center for the Rule of Law. Leo was the best man at Cass’ wedding and Cass was a longtime friend of Justice Antonin Scalia. Cass’ daughter is slated to clerk for Alito.”

IN MEMORIAM: The National Business Aviation Association on Tuesday announced that Selena Shilad, executive director for the Alliance for Aviation Across America, died on Nov. 24. She was 45. The non-profit AAAA started in 2007 to raise awareness of general aviation and small airports with local businesses, organizations and leaders, which Shilad engaged in “every single day,” said AAAA chair Ed Bolen. “Our entire industry is stronger and better for her efforts and having known her,” Bolen said.

YOU'VE GOT MAIL: The financial services coalition fighting to head off credit card swipe fee legislation says its campaign against the bill from Sens. Dick Durbin (D-Ill.) and Roger Marshall (R-Kan.) has resulted in more than one million letters sent to members of Congress expressing opposition to the bill.

— The Electronic Payments Coalition, which represents banks, credit unions and credit card providers, has argued that the swipe fees bill would disproportionately benefit big box retailers while jeopardizing credit card rewards programs, while retailers say credit card companies Visa and Mastercard wield too much leverage over the transaction fees.

— "More than one million letters have been sent to Senators and Representatives to oppose the Durbin-Marshall bill because Americans see it for what it is – a massive payout for corporate mega-stores like Walmart and Target at the expense of consumer protections and access to credit as well as jeopardizing the rewards programs millions of American families use to reduce the cost of goods like groceries and gas,” EPC head Richard Hunt said in a statement. “Simply put, Americans depend on their credit cards, and they don’t need politicians to restructure the entire U.S. payments system.”

 

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Jobs Report

Bill Bertles has left DDC Public Affairs after a quarter of a century, and is joining The Herald Group as a partner.

Sam McGee has joined Warschawski as a director. She previously held the same title at Subject Matter.

Molly Drenkard has joined the National Marine Manufacturers Association as vice president of North American public affairs. She was previously director of corporate communications on the U.S. communications team at Anheuser-Busch.

Jimmy Goodrich is now senior adviser for technology analysis at the RAND Corporation. He most recently was vice president of global policy at the Semiconductor Industry Association.

— The Progressive Policy Institute's Center for Funding America’s Future has added Laura Duffy and Alex Kilander as policy analysts. Duffy was previously the executive research coordinator at Rethink Priorities and Kilander was previously a special assistant at Treasury and is a House Approps alum.

Kassandra Perez-Desir has joined DoorDash as their new head of government relations for New York, New Jersey and Puerto Rico. She most recently was regional director of government affairs and public policy at Verizon.

Patricia Albertson has been promoted to senior vice president of administration at TechNet, where she’s also CFO.

Trey Kilpatrick is joining Georgia Power in January as senior vice president of external affairs. He’s currently chief of staff to Georgia Gov. Brian Kemp and will succeed Meredith Lackey, who is becoming chief compliance officer for Georgia Power’s parent company, Southern Company.

Neil Kornze is now senior vice president at Cassidy & Associates. A former director of the Bureau of Land Management, Kornze most recently served as chief of staff to Sen. Michael Bennet (D-Colo.).

— Several top Democratic Latino operatives and former Biden officials are launching Conexión, a new political and public affairs consulting group. Colin Rogero, Adrian Saenz, Pili Tobar and Marsha Espinosa are all partners at Conexión; they collectively have experience in the Biden and Obama White Houses, various political campaigns and the Hill.

Janelle Jones is joining the Washington Center for Equitable Growth as vice president of policy and advocacy. She most recently was chief economist and policy director at the Service Employees International Union, and is a Labor Department alum.

Matthew Milios will be vice president for communications at The Pew Charitable Trusts. He most recently led Cause for Content.

 

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New Joint Fundraisers

Andy Harris Victory Fund (Rep. Andy Harris, Chesapeake PAC, Maryland Republican State Central Committee)

Mario Diaz-Balart Victory Fund (Rep. Mario Diaz-Balart, Maintaining All Republicans In Office PAC, NRCC)

New PACs

Blacc Pac Forward (Super PAC)

FIGHTING FOR FLORIDA'S FUTURE (Super PAC)

Grow the Majority Nominee Fund: NH-01 (PAC)

Grow the Majority Nominee Fund:NV-03 (PAC)

Renewable Fuels Nebraska PAC (PAC)

New Lobbying REGISTRATIONS

A1.9 Strategies LLC: Saildrone Inc.

Aquia Group, LLC: Unstructured Technologies Inc.

Aquia Group, LLC: Visionary Solutions

Ice Miller LLP: City Of Columbus

Invariant LLC: National Association Of Theatre Owners

Nelson Mullins Riley & Scarborough: Amsterdam & Partners LLP

Rosemont Group: American Association Of State Climatologists

The Petrizzo Group, Inc.: Blackrock Fund Services Group, LLC

Tiger Hill Partners LLC: National Association Of Convenience Stores (Nacs)

 

Enter the “room where it happens”, where global power players shape policy and politics, with Power Play. POLITICO’s brand-new podcast will host conversations with the leaders and power players shaping the biggest ideas and driving the global conversations, moderated by award-winning journalist Anne McElvoy. Sign up today to be notified of new episodes – click here.

 
 
New Lobbying Terminations

Chuck Penry And Associates: Tyson Foods

Covington & Burling LLP: Snow Joe LLC

Specialty Equipment Market Association: Specialty Equipment Market Association

 

A message from Contraceptive Access Initiative:

In a major breakthrough, the birth control pill will be on store shelves for sale without a prescription in early 2024 – urgent work is needed to make sure it is affordable for all. Momentum is building for public and private insurance to cover over-the-counter contraception, which would be a major step forward in breaking down barriers for those seeking contraception. Three agencies are currently evaluating options for over-the-counter coverage: HHS, Labor and Treasury. In addition, many are urging a low retail price point and accommodation for the uninsured. Check out the Contraceptive Access Initiative’s roadmap to affordable contraception at: thepillotc.org/affordability

 
 

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