With Ian Kullgren, David Beavers, Daniel Lippman and Garrett Ross
WAYNE PACELLE RETURNS: Wayne Pacelle, the former Humane Society president who was forced to resign earlier this year over sexual harassment allegations, is quietly helping a friend’s PAC lobby for animal welfare issues on Capitol Hill. The move is creating friction with the Humane Society, which is considering legal action against Pacelle for violating a non-compete clause in his contract, according to an internal memo obtained by POLITICO’s Ian Kullgren. “The board leadership is aware of the situation and will be considering our options,” the memo says. Pacelle, who did not respond to requests for comment, was forced to step down in February after an investigation by the law firm Morgan Lewis uncovered allegations of harassment dating back to 2005.
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— The PAC, Animal Wellness Action, has deep ties to Humane Society staff. The PAC’s executive director, Marty Irby, previously worked as the Humane Society’s senior adviser for equine protection and rural affairs; one of its board members, Annie Harvilicz, is on the leadership council for the Humane Society’s veterinary arm; and Josh Balk, the Humane Society’s vice president for farm animal protection, donated $5,000 to the PAC, Federal Election Commission filings show. Anna West, a Humane Society spokeswoman, said the group isn’t working directly with the PAC or Pacelle.
— Irby, the PAC’s executive director, described Pacelle in an interview as a “volunteer and a friend” who has used his influence to secure meetings with members of Congress. Irby said he consulted with an attorney and doesn’t believe Pacelle is in violation of a non-compete clause because he is a volunteer. Asked whether the allegations against Pacelle threaten to undermine the PAC’s mission, Irby demurred. “I don’t even really know every one of them and what they all are,” he said, adding that the PAC does not condone harassment. “It’s important [that] people know we’re focused on animal protection, and we don’t want to get sidetracked on any other issue.”
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JUST RELEASED: View the latest POLITICO/AARP poll to better understand Arizona voters over 50, a voting bloc poised to shape the midterm election outcome. Get up to speed on priority issues for Hispanic voters age 50+, who will help determine whether Arizona turns blue or stays red.
DEMAND FOR TRADE LOBBYISTS STAYS STRONG: President Donald Trump’s burgeoning trade war continues to drive business on K Street. Just in the past few days, former Rep. Philip English (R-Pa.) and Dan Renberg of Arent Fox have registered to lobby on behalf of National Oilwell Varco of Houston on tariffs “affecting importation of steel products for oil and gas sector”; Layth Elhassani of Covington & Burling has registered to help the Lincoln Electric Company of Cleveland win an exclusion from the administration’s steel tariffs; and SNP, a chemical company based in Durham, N.C., hired Denise Bode, Anne Canfield and Sarah Helton of Michael Best Strategies to lobby on the China tariffs.
— Some of the work is likely to be short-term. Steptoe & Johnson registered to lobby on behalf of Villares Metals, a Brazilian steel company, earlier this month (although the work began in May, according to the filing). Steptoe & Johnson filed termination paperwork this morning. The bill for two months’ worth of work: $50,000, according to the termination filing.
— Some of the businesses lobbying on trade are well-known names. But others are smaller, such as Tri-Star Laminates Inc., a California company that relies on imported aluminum to make a product used in the manufacturing of circuit boards. The company recently hired Squire Patton Boggs after getting hammered by the new tariffs on imported aluminum as well as an anti-dumping and countervailing duty case brought by the Trump administration. Tri-Star recently sent a letter to its customers telling them it would have no choice but to raise prices. “They’re in real dire straits,” said Robert Kapla, a Squire Patton Boggs lobbyist who chairs the firm’s international public policy practice. U.S. aluminum mills don’t produce the type of aluminum the company needs. “It’s a good example of an unintended consequence [of Trump’s tariffs] on an American manufacturer,” Kapla said.
TODAY’S NOTABLE REGISTRATIONS: In other registration news, Cypress Advocacy signed the International Franchise Association, for which it will lobby on a bill to reverse the Obama administration’s joint employer standard. The House already passed legislation to do just that, but the Senate has yet to take it up. Cypress Advocacy also signed Quicken Loans, for which it will lobby on IRS data verification and mortgages. In addition, cryptocurrency lobbying is heating up. Goodbit hired Paul Hastings to lobby on cryptocurrencies and blockchain, and United Solutions hired Michael Best Strategies to lobby on blockchain technology.
MEHLMAN’S LATEST: Bruce Mehlman of Mehlman Castagnetti Rosen & Thomas is out with his latest analysis of the trends driving Washington. He lays out data that suggest Republicans will do relatively well in the midterm elections (a low unemployment rate, high consumer confidence, President Donald Trump’s strong approval ratings among Republicans) as well as data that make the case Democrats will prevail (Democrats’ strong performance in special elections since Trump’s election, the bleak record of the party that holds the White House during a president’s first midterm elections, especially when the president’s approval ratings are low). Here’s the full slidedeck.
** A message from Visa: For 60 years, the Visa network has been removing barriers to commerce and making payments more secure and convenient worldwide. The Visa Innovation Station is an immersive, pop-up experience in Washington, D.C. this July, showcasing how digital payments are shaping the future of commerce. To learn more about the D.C. Innovation Station, click here. **
FUNDRAISER ALERT: MCGUIREWOODS CONSULTING TO HOST FUNDRAISER FOR NEWSOM: McGuireWoods Consulting will host a fundraiser Monday for Democratic California gubernatorial candidate Gavin Newsom. The fundraiser will take place at the home of Michael Drobac, senior adviser for public affairs at the firm, and Krista Drobac, partner at Sirona Strategies. Newsom will attend the event.
SURETY & FIDELITY ASSOCIATION OF AMERICA NAMES NEW PRESIDENT: J. Lee Covington will become the next president of the Surety & Fidelity Association of America. Covington, who starts his new role in October, is now senior vice president for government affairs and general counsel at the Insured Retirement Institute. He will replace Lynn Schubert, who is retiring at the end of the year. In an interview with PI, Covington said that his main priorities will be “continuing to educate policymakers including members of Congress about the value of the protections that are provided through bonding for taxpayers, consumers and businesses;” “promoting the value of bonding in the private sector;” and “continuing to promote the empowerment of small businesses through bonding.”
INSIDE SWING LEFT’S ATTEMPT TO FLIP THE HOUSE: “Swing Left’s mission of identifying 78 swing districts, 23 of which would have to be flipped in order to return the Democrats to power in the House, has found a receptive audience,” The New York Times’ Sridhar Pappu reports. “The group has more than 400,000 members and has raised more than $9 million in donations so far. Over the past year, Swing Left has drawn unsettled Democrats across the country, including a number of so-called influencers, to its ranks, even as more well-funded groups have entered the fray, including the one recently started by Michael R. Bloomberg and Tech for Campaigns, a volunteer network consisting of more than 4,500 tech workers at companies like Google, Facebook and Netflix. And it’s reinforced the notion, illustrated most starkly by the 2016 presidential election, that the traditional ways of running a campaign are increasingly irrelevant.” Full story.
TWITTER ADDS FORMER BUSH OFFICIAL TO BOARD: “Twitter has added Robert Zoellick, an official in both Bush administrations and past president of the World Bank, to its board of directors, the company disclosed [Thursday],” POLITICO’s Steven Overly reports. “Zoellick served as the U.S. trade representative from 2001 to 2005 and deputy secretary for the State Department from 2005 to 2006. He then left the Bush administration for a role at Goldman Sachs, but in 2007 became president of the World Bank Group, a position he held until June 2012. … He is currently chairman of the board of directors of AllianceBernstein Holding, an investment management firm, and senior counselor at the Brunswick Group, the public affairs and communications firm. He is also a senior fellow at Harvard‘s Kennedy School of Government.” Full story.
TRUMP MEETS WITH PFIZER CEO: “The CEO of drug giant Pfizer met with President Donald Trump at the White House [Thursday] as the administration pressures drugmakers to voluntarily rein in prices, according to multiple industry sources,” POLITICO’s Sarah Karlin-Smith and Andrew Restuccia report. “Ian Read‘s appearance followed a Trump tweet this morning that thanked Pfizer and the Swiss manufacturer Novartis for pledging not to raise drug prices further this year. Top pharmaceutical industry CEOs are in Washington for an annual planning meeting of the major drug lobby PhRMA. Trump blasted Pfizer earlier this month on Twitter for dozens of price increase that went into effect July 1. Following the scolding, Pfizer agreed to delay the increases until early 2019. Novartis CEO Vas Narasimhan also announced Wednesday that the company would not have further price hikes this year after it raised prices for three costly cancer therapies a few weeks ago.” Full story.
What role will Hispanic voters over 50 play in Arizona this fall? Read POLITICO Magazine’s new series “The Deciders,” which focuses on this powerful voting bloc that could be the determining factor in turning Arizona blue.
WHO WENT TO THE WHITE HOUSE AND SIGNED WORKFORCE DEVELOPMENT PLEDGES: Several company and business group representatives attended the White House on Thursday and signed pledges to increase workforce training. Among them, according to a White House pool report: Bob Durbin of the Aerospace Industries Association; Katherine Lugar of the American Hotel & Lodging Association; Dan England of the American Trucking Associations; Greg Sizemore of the Associated Builders and Contractors; Brian Turmail of the Associated General Contractors of America; Fred Smith of FedEx; Chris Murdoch of Foxconn; Dan Turton of General Motors; Craig Menear of The Home Depot; Jen Crozier of IBM; Michael Beckerman of the Internet Association; Marillyn Hewson of Lockheed Martin; Chris Cortez of Microsoft; Randy Noel of the National Association of Home Builders; Rob Gifford of the National Restaurant Association; Matthew Shay of the National Retail Federation; Sean McGarvey of the North America’s Building Trades Unions; Kathy Warden of Northrop Grumman; Tom Kennedy of Raytheon; Johnny Taylor of the Society for Human Resource Management; Thomas Clerkin of Signatory Wall and Ceiling Contractors Alliance; Scott Price of United Parcel Service; and Julie Murphy of Walmart.
SPOTTED: At a book launch party last night at the Kalorama house of Tony Podesta to honor Henry Waxman alum Bruce Wolpe and Bryan Marshall for their new book “The Committee: A Study of Policy, Power, Politics and Obama’s Historic Legislative Agenda on Capitol Hill” (Amazon, https://amzn.to/2Ls8nEj): former U.S. Surgeon General Regina Benjamin; Norm Ornstein of AEI; Mark Tavlarides of BGR Group; former Rep. Bart Gordon (D-Tenn.), now with K&L Gates; Tim Wirth alum Patti Shwayder of AIMCO; Howard Symons of Jenner & Block; Nolan McCaskill of POLITICO; Larry Irving of the Irving Group; and Steve Clemons of The Atlantic.
— Josh Althouse is now public policy manager at Facebook. He previously was conservative outreach director for Speaker Paul Ryan.
— Alex Przybelski is a client strategy manager at Phone2Action. He was previously a communications associate at The Raben Group.
— Lauren Tennes is head of federal government relations for M&T Bank. She was previously vice president of government relations at the bank.
NEW JOINT FUNDRAISERS:
Building New Mexico (super PAC)
Revive American Democracy (super PAC)
Western Agricultural Processors Association Federal PAC (PAC)
NEW LOBBYING REGISTRATIONS:
Arent Fox LLP: National Oilwell Varco, Inc.
Arnold & Porter Kaye Scholer LLP: Coalition for Restoration and Regulatory Reform
Becker & Poliakoff, P.A.: Cermar Investments LLC
Becker & Poliakoff, P.A.: Portable Factory
Becker & Poliakoff, P.A.: Thermo Fisher Scientific
Becker & Poliakoff, P.A.: University of Miami
Bracewell LLP: Society for Neuro-Oncology
Broydrick & Associates: WISH
Covington & Burling LLP: The Lincoln Electric Company
Cypress Advocacy, LLC: International Franchise Association
Cypress Advocacy, LLC: Invesco Ltd
Cypress Advocacy, LLC: Quicken Loans
Cypress Advocacy, LLC: Sempra Energy
Emergent Strategies: Japan Tobaco International USA, Inc.
Hanka Advisor LLC: Berkeley County Development Authority
Hughes, Hubbard & Reed: Fabuwood Cabinetry Corp.
Interel US: National Alliance of Forest Owners
JUUL LABS, INC. formerly JIM R ESQUEA: JUUL LABS, INC. formerly JIM R ESQUEA
Kit Bond Strategies: Sixty-West, LLC
Mark Barnes & Associates: B&T USA LLC
Mark Barnes & Associates: Northrup Grumman Innovation Systems
Mark Barnes & Associates: NST Global, LLC (dba SB Tactical)
Merchant Mcintyre & Associates, LLC: City of Tavares, FL
Merchant Mcintyre & Associates, LLC: Fort HealthCare
Merchant Mcintyre & Associates, LLC: Okeechobee County, FL
Merchant Mcintyre & Associates, LLC: Roosevelt City, Utah
Merchant Mcintyre & Associates, LLC: The Mission at Kern County
Meridian Hill Strategies: Charleston Defense Contractors Association
Michael Best Strategies LLC: SNP Inc.
Michael Best Strategies LLC: United Solutions
Mr. Landon Fulmer: Kansas Health Institute
Paul Hastings LLP: Goodbit, PBC
Scrivner Leon Group, LLC: Natera, Inc.
Signal Group Consulting, LLC: Khan Johnson LLP (for Leader Communications Inc)
Squire Patton Boggs: Bluon Energy LLC
Squire Patton Boggs: Leon County Attorneys Office
Strategic Marketing Innovations: Amastan Technologies, Inc.
The Conafay Group, LLC: Dova Pharmaceuticals
Townsend Public Affairs: City of Beaumont
Velos (Formerly Pinnacle Engineering and Management Solutions): Virgin Orbit
Velos (Formerly Pinnacle Engineering and Management Solutions): VOX Space, LLC
Venn Strategies: Pharmaceutical Printed Literature Association
Wiley Rein LLP: Association for Unmanned Vehicle Systems International
Winning Strategies Washington: Micro Stamping Corporation
NEW LOBBYING TERMINATIONS:
262 Strategy LLC: GridMeNow
262 Strategy LLC: Oriole Capital Group LLC
38 North Solutions, LLC: Invenergy, LLC
A1.9 Strategies LLC: Cornerstone Government Affairs obo University of Kentucky
Alcalde & Fay: City of Claremont, CA
Alcalde & Fay: City of San Marcos, CA
Alcalde & Fay: True Organic Products, Inc.
Alexander & Cleaver, P.A.: Housing Opportunities Commission of Montgomery County
Alpha Strategies: Idemia
American Academy of Actuaries: American Academy Of Actuaries
American Continental Group: Credit Protection Coaltion
American Continental Group: Foundation Medicine, Inc.
American Continental Group: Ingersoll-Rand Company
American Defense International, Inc.: VFSS-VICCS Federal Sector Systems, LLC
American Defense International, Inc.: Xtreme Concepts, Inc.
Avenue Solutions: National Electrical Manufacturers Assn (For Access To Medical Imaging Coalition)
Baker & Botts, LLP: Orbital ATK, Inc.
Baker & Hostetler LLP: Yamo Pharmaceuticals, LLC
Barnes & Thornburg LLP: Advanta Medical Solutions LLC
Barnes & Thornburg LLP: Alliance for Capital Access
Barnes & Thornburg LLP: Quincy Bioscience Holding Company, Inc.
Barnes & Thornburg LLP: Texas Central Rail Holdings LLC (F/K/A Texas Central Partners)
Blank Rome Government Relations: HQI Management Inc.
Brownstein Hyatt Farber Schreck, LLP: Apollo Management VIII, L.P.
Brownstein Hyatt Farber Schreck, LLP: FWD.us
Brownstein Hyatt Farber Schreck, LLP: Nucor Corporation
Brownstein Hyatt Farber Schreck, LLP: S&P Global (F/K/A Mcgraw Hill Financial)
Brownstein Hyatt Farber Schreck, LLP: Sunrun Inc.
Brownstein Hyatt Farber Schreck, LLP: TeleTech Holdings, Inc.
Capitol Counsel LLC: SOTI Inc.
Capitol Counsel LLC: US Sugar Corporation
Capitol Decisions, Inc.: Young People in Recovery
Capitol Integration: Global Ocean Security Technologies
Capitol Tax Partners, LLP: Energy Transfer Equity LP
CGCN GROUP, LLC (formerly known as Clark Geduldig Cranford & Nielsen, LLC): Coalition for a Domestic Insurance Industry
Chamber Hill Strategies: United Automobile, Aerospace & Agricultural Implement Workers
CML Consulting Services Inc. (formerly L.A. Skip Bafalis): Alcalde & Fay (Palm Beach County, FL)
CML Consulting Services Inc. (formerly L.A. Skip Bafalis): Alcalde & Fay (Village of Oak Lawn, Illinois)
Coffee Group: National Alliance of Forest Owners (NAFO)
Cogent Strategies LLC: RELX Inc.
Cornerstone Government Affairs, Inc.: Catholic Charities Fort Worth
Cornerstone Government Affairs, Inc.: CSRA, Inc.
Cornerstone Government Affairs, Inc.: Emerus
Cornerstone Government Affairs, Inc.: Houston Independent School District
Cornerstone Government Affairs, Inc.: Molina Healthcare, Inc.
Cornerstone Government Affairs, Inc.: Selex Es Inc
Covington & Burling LLP: Statoil ASA
Cozen O’Connor Public Strategies: Wyndham Vacation Ownership
Crossroads Strategies, LLC: Jorgensen Forge Corporation
Crossroads Strategies, LLC: Paladin Data Systems
Crossroads Strategies, LLC: Tompkins Strategies, LLC on behalf of Stop The HIT Coalition
Crowell & Moring International, LLC: Diebold Nixdorf Inc
Crowell & Moring International, LLC: E.I. du Pont de Nemours & Co.
Crowell & Moring International, LLC: National Association of Broadcasters
D Squared Tax Strategies, LLC: GovBiz Advantage, Inc on behalf of Biosolid Reduction Technology LLC
D Squared Tax Strategies, LLC: GovBiz Advantage, Inc. on behalf of Polaris Industries
D Squared Tax Strategies, LLC: McGuireWoods Consulting on behalf of Hunt Consolidated, Inc.
Daryl Owen Associates, Inc: Battelle Memorial Institute
Dentons US LLP: Recreation Vehicle Industry Association (RVIA)
Dentons US LLP: The Karuk Tribe
DLA Piper LLP (US): AARP
EducationCounsel LLC: Turnaround for Children, Inc.
Epplin Strategic Planning: Americans for Financial Reform
Eris Group (formerly known as Bartlett & Bendall): E*TRADE Financial Corporation
Farragut Partners LLP: United Technologies Corporation
Foley & Lardner LLP: 22nd Century Group Inc
Forbes-Tate: Kumar Family Limited Partnership
GovBiz Advantage, Inc.: Bell and Lindsay (for Label Insight)
GovBiz Advantage, Inc.: John Trautner
Greenberg Traurig, LLP: Bracco Diagnostics, Inc.
Hogan Lovells US LLP: Alabama State University
Hogan Lovells US LLP: BioSAFE Engineering
Hogan Lovells US LLP: Coldchain Technology Services
Hogan Lovells US LLP: Inveniam Capital Partners, LLC
Hogan Lovells US LLP: Mechanical Contractors of America
Hogan Lovells US LLP: Momentum Technologies, LLC
Hogan Lovells US LLP: Raven Petroleum, LLC
Hogan Lovells US LLP: Specialists On Call
Hogan Lovells US LLP: University of Maryland Eastern Shore
Holland & Knight LLP: Delta Star, Inc.
Innovative Federal Strategies, LLC: Sanovas Inc.
J M Burkman & Associates: Americas Recovery Campuses
J M Burkman & Associates: Archon Homes
J M Burkman & Associates: Flat Audio Technologies LLC
J M Burkman & Associates: HFX Patrners Inc
J M Burkman & Associates: Invictus Funds
J M Burkman & Associates: Karbon Terra
J M Burkman & Associates: Pacific Sky Solar
John T. Doolittle, LLC: Dan Burton Int. LLC on behalf of Repro-Med Systems,Inc.,dba RMS Medical Products
Kelley Drye & Warren LLP: Criterion Systems, Inc.
Kelley Drye & Warren LLP: Evraz Rocky Mountain Steel
King & Spalding LLP: The National Urban Technology Center
Lavender Consultants: Jones Walker, LLP on behalf of Greater New Orleans, Inc.
Lobbyit.com: National Child Care Association
Management & Government Resources: Critical Mass
Mayer Brown LLP: Suniva, Inc.
McAllister & Quinn, LLC: Brf (Fka Biomedical Research Foundation Of Northwest Louisiana)
McGuireWoods Consulting (A Subsidiary of McGuireWoods LLP): Murray Energy Corporation
Velos (Formerly Pinnacle Engineering and Management Solutions): Virgin Galactic
** A message from Visa: For 60 years, the Visa network has been removing barriers to commerce and making payments more secure and convenient for people around the world. The Visa network also serves as a catalyst for innovations in commerce and provides the underlying infrastructure for the sharing economy and online marketplaces. This month, the Visa Innovation Station in Washington, D.C. is demonstrating how digital payments are shaping the future of commerce, from dining to commuting, to shopping. As the global economy becomes increasingly digital in nature, payment innovation and security remain a topmost priority. To learn more about the D.C. Innovation Station, click here. **