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Presented by PhRMA: Your afternoon must-read briefing on politics and government in the Golden State
Sep 25, 2024 View in browser
 
POLITICO California Playbook PM

By Rachel Bluth and Lindsey Holden

Presented by 

PhRMA

The Grindr app

The CEO of gay dating app Grindr is urging Gov. Gavin Newsom to sign a bill improving IVF access for LGBTQ+ people by removing the requirement that a couple needs to have tried conceiving “naturally” for a year to qualify for treatment. | Leon Neal/Getty Images

SWIPE RIGHT: Gay dating app Grindr is all about building relationships, however fleeting or long-term they may be. Now, CEO George Arison is getting into the business of building families — and pushing Gov. Gavin Newsom to mandate IVF coverage, including for same-sex couples.

Arison has been a vocal proponent of making fertility treatment more accessible to gay couples since his own experience having two children with different surrogates in 2019. The bill he is urging Newsom to sign would improve access for LGBTQ+ people by removing the requirement that a couple needs to have tried conceiving “naturally” for a year to qualify for treatment.

Grindr — which calls itself the “world’s largest social networking app for LGBTQ+ people” — also has been wading into the policy world. As Politico Influence first reported in June, the company hired a D.C. lobbying firm to work on policy issues like at-home HIV testing and IVF access. But the West Hollywood-based company has no history of lobbying in California, and the company did not weigh in when SB 729 was debated in the Legislature last year. When a colleague flagged the bill to Arison this cycle, he immediately decided to get involved.

In-vitro fertilization has become the latest battleground in the post-Roe reproductive rights landscape: Democrats are fighting to preserve access to the treatment even as Republicans insist it isn’t in jeopardy from anti-abortion laws. Kamala Harris and Donald Trump have both talked about it on the campaign trail, and Democrats in Congress have tried and failed twice to pass national protections for IVF access.

The insurance industry is fighting the bill from state Sen. Caroline Menjivar, which would eventually require the health insurance plans of around 9 million Californians to cover fertility treatment, including IVF, which the industry argues would raise premiums. About a third of those employees already have IVF coverage, but their out-of-pocket costs would decrease under the bill.

Below is an abbreviated version of POLITICO’s conversation with Arison.

Why is this bill important to you — and why is it important to Grindr?

I have two kids from surrogacy. They don’t tell you when you go to the IVF clinic how difficult it’s going to be. We’re lucky because it’s very expensive, but it worked out really well.

When I took on this role, one of the things that was obvious to me is that I think a lot more gay men would have children if the cost was more affordable. It was critical for Grindr to be at the forefront of the benefit that it offered for surrogacy for its employees.

It’s been, frankly, a total nightmare to offer good coverage on this stuff.

A law in California that would allow us to do this would be very valuable. We don't need to be required to offer IVF on our health plan. That's not the issue. More broadly, Grindr is in the business of helping people build relationships … For Grindr to be advocating for making it easier and cheaper for our users to be able to have children makes a lot of business sense.

You’ve talked about trying to get your insurance carrier to provide some of these benefits to your employees, and how hard and expensive that was. Generally, both large employers and health plans oppose these kinds of coverage mandates because of the cost. Are you sympathetic to those arguments? 

One hundred percent. Look, I’m normally a very libertarian person. I don’t want government telling me how to run things, I’m an entrepreneur. I’m all with business on these things.

That said, most good corporations already offer some form of IVF coverage, and that’s especially true in the tech world. I think you’d be hard pressed to find a tech company that is not offering IVF coverage of some sort.

Ultimately, if we’re going to require coverage of many other things we do in health care today, both controversial and non controversial, this is a medical need.

As a society, if we want to encourage more children, which I think we do … it’s the right thing for us as a society to make IVF a lot more accessible to people. It should not be that I have a job in a tech company so I have it, or I have a job in a hotel so I don’t.

This bill was first introduced last year. How did you become aware of it? Have you been talking to the author’s office, are you worried about a veto?

We just heard about it last minute. We cannot take any credit for what happened. Full credit deserves to go to the people who wrote the bill and passed it, and I think they did it with very little external support.

The Grindr 4 Equality initiative has been doing a lot of work on issues the California Legislature works on all the time — like home STI testing and marriage equality. Can we expect to be hearing more from you in the future?

Once we were becoming a public company and trying to put a little more structure on what we do, we picked a few very specific areas to focus on. Marriage equality is one of them, access to health care is another one.

Domestically, we've been less focused on those things, because we can't do everything, and so international has been more of our focus. And frankly, we feel like we can have more impact on the international side.

This topic of family creation is one we want to be focused on domestically. We think it’s a logical extension of what Grindr offers to its users: building relationships. Relationships lead to marriage and marriage leads to children.

And so we do want to be able to be in a position to do more on that front. I can't promise exactly what we'll do, but it's something that's top of mind for us.

IT’S WEDNESDAY AFTERNOON. This is California Playbook PM, a POLITICO newsletter that serves as an afternoon temperature check on California politics and a look at what our policy reporters are watching. Got tips or suggestions? Shoot an email to lholden@politico.com.

 

A message from PhRMA:

Over half of every dollar spent on medicines goes to middlemen, like PBMs and insurers, along with others. They control what medicines you can get and what you pay at the pharmacy. Middlemen are driving medicine costs in California, and you don’t know the half of it.

 
WHAT YOU NEED TO KNOW TODAY

Mike McGuire talks into a microphone.

Senate President Pro Tem Mike McGuire plans to bring his members back on Oct. 11 for a special session on gas price spikes. | Rich Pedroncelli/AP

RETURN OF THE SENATE: The Senate finally has a back-to-session date.

As our own Wes Venteicher reported today, senators are planning to return to Sacramento for a special session on gas price spikes on Oct. 11. Lawmakers will take up a slate of bills assemblymembers are set to consider during an Oct. 1 floor vote.

Senate President Pro Tem Mike McGuire made the announcement after weeks of back-and-forth with Newsom and Assembly Speaker Robert Rivas. Newsom called a special session on the last night of the legislative year, and Rivas quickly jumped on board. But McGuire — who preferred to vote on Newsom’s proposals to limit price jumps during the regular session — balked at having his members come back to the Capitol.

The pro tem made it clear he did not want to join the special session unless the Assembly had the votes necessary to pass Newsom’s bills. Meanwhile, Rivas set up his house’s special session committees, and members came back to begin working on legislation.

Assemblymembers tomorrow are scheduled to vote on three special session bills in the Petroleum Gasoline and Supply Committee.

As Alex Nieves reported yesterday, the lawmakers will consider legislation requiring refiners to store more fuel to prevent price spikes, allowing state regulators to switch to cheaper winter-blend fuel earlier in the year and pushing the California Air Resources Board to complete a review of ethanol fuel blends by the end of 2025.

 

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ON THE BEATS

California Attorney General Rob Bonta.

The San Francisco Chronicle today reported Attorney General Rob Bonta sought millions of dollars from a state agency for a biodiesel project connected to figures under scrutiny in a federal probe. | Damian Dovarganes/AP Photo

TROUBLE AT HOME: Attorney General Rob Bonta should be enjoying an opportunity to cosplay as Newsom at Climate Week NYC. He’s been hobnobbing with celebrities — including actors Lou Diamond Phillips and Jane Fonda — and announcing legal action against Exxon Mobil over deceptive plastic recycling practices.

But back in California, his political fortunes are taking a turn for the worse.

The San Francisco Chronicle today reported on Bonta’s connection to a company run by Mario Juarez, a figure under scrutiny in a federal probe that has also ensnared Oakland’s mayor and a well-connected family.

Over the summer, the FBI raided the home of Mayor Sheng Thao and properties owned by the Duong family, which runs curbside recycling in the city. According to the Chronicle, the feds sought information about Juarez, the Duongs and others in a subpoena served on City Hall. Thao and the Duongs have denied wrongdoing.

As an assemblymember, Bonta in 2015 solicited a $3.4 million grant from the California Energy Commission for a start-up company owned by Juarez that had pitched a new biodiesel plant in West Oakland. The Duong family’s recycling company also would have benefitted from the project.

Nearly $700,000 of the state funds went toward the project, but it never broke ground amid Juarez’s legal and financial troubles.

Nathan Click, a Bonta spokesperson, told Playbook that the attorney general backed the biodiesel proposal at the time because it was an “alternative fuels project that could have addressed environmental concerns and created jobs.”

“As the record shows, he was among a number of state and local elected leaders, the Energy Commission expert staff and commissioners, the California Treasurer's office staff, and labor groups who all offered support for or recommended moving forward with the funding,” Click said in a statement.

Bonta has been widely expected to join the 2026 race to succeed Newsom as governor, although he is waiting until after the November election to announce his decision.

FIRE AID: Newsom today announced he requested a presidential major disaster declaration from President Joe Biden to help California communities affected by summer wildfires.

The governor requested assistance for Northern California and Central Valley residents dealing with the aftermath of the Park and Borel fires, which ignited in July and burned in Kern, Butte and Tehama counties.

The two fires scorched more than 480,000 acres and destroyed 932 structures. Newsom’s major disaster declaration includes financial assistance, hazard mitigation grants and U.S. Small Business Administration and U.S. Department of Agriculture emergency loans.

 

A message from PhRMA:

There’s a long line of middlemen profiting when you get your medicines, and they are often part of the same company.

Over half of every dollar spent on medicines goes to middlemen like PBMs, insurers, and others. They control what medicines you can get and what you pay at the pharmacy.

Middlemen are driving medicine costs in California, and you don’t know the half of it. Get the whole story.

 
WHAT WE'RE READING TODAY

— Elon Musk is denying any prospects of a “romantic relationship” with right-wing Italian Prime Minister Giorgia Meloni after the pair exchanged niceties during an awards ceremony in New York this week. (POLITICO)

Three lessons for Kamala Harris from Newsom’s struggles to meet ambitious housing goals in California. (CalMatters)

AROUND THE STATE

— A Shasta County town has declared itself a “Parent Right to Know City,” pushing back on a new state law that bans schools from imposing rules that require parents be notified if their child changes pronouns. (Shasta Scout)

— A nonprofit tied to an evolving San Francisco City Hall scandal splurged on steakhouses, liquor and first-class flights without disclosing potential conflicts of interest. (San Francisco Standard)

— The Orange County Board of Supervisors voted Tuesday to censure fellow supervisor Andrew Do, who is accused of granting millions of dollars in contracts to a nonprofit without disclosing the group’s link to his daughter. (Los Angeles Times)

— compiled by Tyler Katzenberger

 

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