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GOP Senate Takeover Makes Bipartisanship Crucial For Cosmetics Bill

This article was originally published in The Rose Sheet

Executive Summary

With a new Republican majority in the Senate, legislation to overhaul cosmetics regulation in the U.S., which to date has been driven by Democrats, will need bipartisan support to advance. A draft bill is being developed by Sen. Dianne Feinstein, D-Calif., in collaboration with industry members and CEOs.

The new Republican majority in the Senate makes bipartisan support a must for legislation to modernize FDA’s oversight of the cosmetics industry, which has been largely spearheaded by Democrats to date.

Sen. Dianne Feinstein, D-Calif., is developing a draft bill with industry members and NGOs that builds on previous negotiations with FDA, and is working to bring a Republican on as a co-sponsor of the bill, according to the Campaign for Safe Cosmetics (Also see "Sen. Feinstein Plans Cosmetics Bill In Collaboration With Industry, NGOs" - HBW Insight, 30 Sep, 2014.).

While no Republican frontrunners have emerged to champion the legislation, the Personal Care Products Council’s Political Action Committee contributed to a number of GOP members’ campaigns during the election season.

The trade group supported the campaigns of Health, Education, Labor and Pensions Committee members Sen. Tim Scott, R-S.C., and Sen. Lamar Alexander, R-Tenn., who is expected to assume the committee chair. Additionally, PCPC’s PAC donated to campaigns for Senate Majority Leader Mitch McConnell, R-Ky., and Sen.-elect Steve Daines, R-Mont.

Failed re-election runs for Sen. Kay Hagan, D-N.C., and Sen. Mark Pryor, D-Ark., also received the organization’s backing.

Despite losing potential Democratic supporters in those key races, PCPC may be in a better position to promote its interests with the new Republican-dominated Congress. The Nov. 4 election guaranteed Republicans a 52-seat majority in the Senate, and the party gained another with Republican Senate challenger Dan Sullivan’s victory in Alaska, announced Nov. 12. A runoff election in Louisiana is expected to bring the Senate Republican majority to 54 seats when the 114th Congress convenes in January.

On the House side, Republicans have expanded their majority to at least 244 seats, with several more likely to be added when final counts and runoffs are completed.

PCPC President and CEO Lezlee Westine is a former member of the Bush Administration, working as White House Director of Public Liaison from 2001 to 2005 (Also see "Industry/FDA Relations Will Benefit From Westine’s White House Experience" - HBW Insight, 20 Apr, 2009.).

Alexander, Hatch Expected To Helm Health Panels

Among changes to come from Republican control of the Senate will be new chairs of the HELP and Finance committees, which have the most input into legislation pertaining to health care and pharmaceuticals (see Senate HELP chart: (Also see "Senate HELP Committee" - HBW Insight, 17 Nov, 2014.)).

Surprises are always possible when a new Congress convenes – for example, if one senator makes an unexpected choice of committee or chairmanship and a domino effect of reshuffling ensues.

But Republicans who have been holding the post of ranking member on Senate committees now have the opportunity to chair those committees, making Alexander the anticipated head of HELP.

With his re-election win on Nov. 4, Alexander will start his third term as senator next year. He has not previously chaired a committee, but held a leadership post as chairman of the Senate Republican Conference and was formerly governor of Tennessee.

Meanwhile, Sen. Orrin Hatch, R-Utah, is in line to take the helm of Finance, which has jurisdiction over federal health-care programs including Medicare and Medicaid and other big-ticket items such as tax issues, trade policy and Social Security.

Hatch is most famous among pharmaceutical industry stakeholders as one of the principal authors (along with retiring Rep. Henry Waxman, D-Calif.) of the drug patent reform law in 1984 that helped create the modern generic drug industry. He brings deep knowledge to the role and receptivity to industry concerns that could help ensure that those concerns get a hearing on the committee's demanding agenda.

Hatch is the most senior Republican in the Senate and, as such, will be the president pro tempore in the 114th Congress, third in line to succeed the U.S. president. He has previous experience leading committees, having chaired HELP and the Judiciary Committee in the past, and remains a member of those panels.

One broader issue of interest to industry that could receive much of the Finance Committee’s legislative effort in the coming year is corporate tax reform. Focus on the hot-button topic has resulted in large part from attempts by U.S. pharmaceutical manufacturers to merge with foreign firms to reduce their corporate tax bill in the U.S.

In a recent Finance Committee hearing on inversion, Hatch said he did not support legislation being developed by Democrats but was "open to considering alternative approaches,” noting that any reform measures should “not be retroactive or punitive” (Also see "Corporate Tax Inversions Unlikely To Lower Medical Product Prices, Senate Panel Told" - Pink Sheet, 22 Jul, 2014.).

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