SPACs form a trade group — Retail leaders, songwriters fly in — Fitness industry pleads for inclusion in Dems’ reconciliation bill

From: POLITICO Influence - Thursday Jul 15,2021 09:44 pm

Jul 15, 2021

Presented by

With Daniel Lippman

SPACs STRIKE BACK: As financial regulators and lawmakers begin to take a closer look at the explosion of SPACs, or special purpose acquisition companies, the industry is banding together to form a trade group to serve as its voice in Washington. The SPAC Association ’s members will run the gamut from investors, sponsors, investment banks, and law firms to auditors, accounting firms, academics, nonprofits, trade associations and companies in the SPAC transaction ecosystem.

— SPACs have emerged in recent years as a popular alternative for IPOs for private companies looking to raise capital on public stock exchanges, with nearly 600 domestic SPAC IPOs with more than $200 billion in profits since 2020, the group said. In the first half of this year, the group said, SPACs accounted for nearly two-thirds of all U.S. IPOs. But regulators and lawmakers have argued that investors don’t properly understand the risks of SPACs, which initially have no commercial operations but promise investors they will buy other firms to form conglomerates, and members of Congress in both parties are pushing for greater regulation of them.

— “The combination of the diverse number of players and substantial growth in SPAC volume, over half a trillion dollars in mergers in H1 2021 alone, requires a non-profit oriented and Industry-wide collaboration to help set operating standards, educate through sharing of best practices, partnership with regulators and policymakers and dialogue with media,” said Alpha Healthcare Acquisition Corp. chief executive Rajiv Shukla, a member of the group’s executive committee, in an email. The trade association will rely on two D.C. lobbying firms to make inroads with both parties in Washington, The Vogel Group and Van Heuvelen Strategies.

FLYING IN (NOT JUST VIRTUALLY!): Retail executives are in Washington today for a summit with lawmakers as in-person gatherings creep back into the nation’s capital. Nearly a dozen corporate leaders, like Ulta Beauty’s Mary Dillion, Best Buy’s Corie Barry, L.L. Bean’s Stephen Smith and Kroger’s Rodney McMullen, mingled with lawmakers the past two days for a policy summit organized by the Retail Industry Leaders Association. Speakers at the confab included Sens. John Hickenlooper (D-Colo.) and Tim Scott (R-S.C.), the White House’s Cedric Richmond and Fed Gov. Lael Brainard while topics included, of course, the corporate tax rate, ESG and technology and ransomware.

— Meanwhile the American Society of Composers, Authors and Publishers is wrapping up a virtual, monthlong rendition of its annual outreach, bringing the songwriters behind hits like “Love is a Battlefield,” “Livin’ on a Prayer,” “Wrecking Ball” and composers from “This is Us,” “Get Out,” “Survivor” and “The Walking Dead” to lawmakers’ Zoom screens to discuss Covid relief efforts, and “how lawmakers can help songwriters earn a fair, livable wage for the use of their music in the modern music streaming marketplace,” according to an ASCAP spokesperson.

A message from Altria:

Moving beyond smoking. Altria’s companies are leading the way in moving adult smokers away from cigarettes – by taking action to transition millions toward less harmful choices. We are investing in a diverse mix of businesses to broaden options beyond traditional, combustible cigarettes. See how we’re moving.

Good afternoon and welcome to PI. Switching jobs? Sign a new client? Get a peek at the infrastructure text? Get in touch: coprysko@politico.com. And be sure to follow me on Twitter: @caitlinoprysko.

FITNESS INDUSTRY ANGLES FOR RECONCILIATION BILL TO INCLUDE RELIEF PROGRAM: Members of the fitness industry are not giving up on their appeals to lawmakers for targeted pandemic relief, lobbying lawmakers to find room in Democrats’ impending $3.5 trillion infrastructure reconciliation bill to help out the nation’s gyms. “Fitness facilities across the country are still in dire need, despite the removal of most” Covid restrictions, the Community Gyms Coalition and International Health, Racquet & Sportsclub Association wrote in a letter Thursday to Senate Budget Chair Bernie Sanders (I-Vt.) and ranking member Lindsey Graham (R-S.C.).

— The industry says that existing aid programs like the Paycheck Protection Program and Economic Injury Disaster Loans did not sufficiently support gyms and fitness centers, which the groups say “lost more than 58 percent —$20 billion — of revenue,” while “one in five fitness facilities closed permanently, and 1.4 million workers in the industry — 44 percent — lost their jobs.” And though gyms have begun to open up again, accrued debt and deferred rent and mortgages are coming due for owners and many still can’t pay. The groups asked Sanders, whose committee is in charge of crafting Democrats’ budget resolution the party plans to use to bypass the filibuster, to consider including Sens. Tammy Duckworth (D-Ill.) and Jerry Moran ’s (R-Kan.) GYMS Act. The bill, which has more than 150 co-sponsors in the House and Senate, would create a $30 billion grant program similar to those enacted for the restaurant and live entertainment industries.

NEED FOR SPEED: “As Congress considers making the greatest single investment in passenger rail in U.S. history, a coalition of high-speed rail boosters is readying a response,” per The Wall Street Journal’s Ted Mann: “Go faster, and spend more. Led by a bipartisan group of three former transportation secretaries, the U.S. High Speed Rail Coalition is trying to mobilize support for a $205 billion infusion of funding for new high-speed rail projects around the country.”

— “The group, with backing from labor unions, construction and passenger rail companies and progressive activists, is launching a campaign Thursday aimed at getting Congress to include the funding in the roughly $3.5 trillion budget-reconciliation bill that Democrats hope to bring to a vote this fall. ‘We can either fill the last generation’s potholes, or we can build the next generation’s high speed rail,’ said Rep. Seth Moulton (D-Mass.),” a member of the coalition, “which wants Congress to create a major new high-speed rail fund, over and above the tens of billions that the Biden administration has proposed for Amtrak and the states to upgrade regular passenger-rail service.”

ANNALS OF CAMPAIGN FINANCE: A new FEC complaint filed by the nonprofit watchdog group Campaign Legal Center takes aim at “pop up” super PACs, alleging that political action committees with close ties to congressional leaders in both parties were funneling money to such groups made to appear like local groups while illegally obscuring their ties to Washington.

— The complaint targets 18 super PACs “that collectively poured $200 million into competitive elections from 2017 to 2020,” The Hill’s Karl Evers-Hillstrom writes. “Political operatives launched these super PACs shortly before key elections with names that suggested local ties, such as ‘Keep Kentucky Great’ and ‘Texas Forever.’” It alleges that the groups actually “were funded by groups like the Senate Leadership Fund, which is affiliated with Senate Minority Leader Mitch McConnell (R-Ky.), and the Senate Majority PAC, which is affiliated with Senate Majority Leader Chuck Schumer (D-N.Y.).”

— “By timing the release of their ads just before voters went to the polls, the complaint states, the super PACs delayed revealing their donors until after Election Day, obscuring their connections to Washington leaders. The Campaign Legal Center said the super PACs violated election rules that require political committees to disclose their ties to affiliated groups. Adav Noti , the watchdog’s senior director of trial litigation and chief of staff, said the increasing popularity of the campaign tactic should prompt a ‘firm crackdown by the FEC,’” adding that “voters have a right to know when big money is flowing into their elections from D.C.-based groups hiding their agendas and funding behind fake names.”

HARRIS’ TOP FUNDRAISER TO LAUNCH CONSULTING FIRM: “Vice President Kamala Harris’ former national campaign finance chair is opening a strategic advisory firm that will aim, in part, to guide corporations and C-suite executives through handling social justice and politically charged issues,” CNBC’s Brian Schwartz reports. Jon Henes, a corporate restructuring attorney previously at Kirkland & Ellis, “plans to launch his new New York-based firm around Labor Day” with a staff of a little over a dozen and potential plans to expand into D.C., Los Angeles and San Francisco. Henes raised at least $400,000 for Harris’ presidential campaign before becoming a bundler for now-President Joe Biden.

— “The advisory firm will have a multipronged approach, including a corporate strategic advisory arm that would do the traditional counseling on hiring practices such as union inclusion. It will also have a team that will focus on environmental, social and corporate governance, and workplace diversity, equity and inclusion, these people said.” In a press release announcing his departure from Kirkland & Ellis, Henes said that the past few years had opened “my eyes to the critical business need for helping CEOs navigate the convergence of business, finance and law with social justice, diversity, inclusion and politics,” an intersection highlighted by consumer reaction to corporate America’s response to everything from last year’s George Floyd protests to January’s insurrection.

— Alvin Tillery, an associate professor at Northwestern University and director of its Center for the Study of Diversity and Democracy who founded Analytic Insights Consulting, may also become a leader in Henes’ new firm.

STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president’s ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today.

Jobs Report

— Amy Pressler has been promoted to be vice president of federal public affairs at Edison International. She most recently was managing director at Edison.

— Rebekah Eskandani is now a senior account executive at Stanton Communications. She was previously communications director for the House Science Committee.

— David Norquist has been named CEO of space startup Momentus. He was most recently deputy secretary of Defense.

— Lily Goldman has joined TechNet as communications and social media coordinator. She was deputy executive director at the Lincoln Project.

— The National School Boards Association has named Chip Slaven interim executive director and CEO. He was previously chief advocacy officer.

— Maryam Janani-Flores is joining the Washington Center for Equitable Growth as deputy policy director. She previously was legislative director for Rep. Norma Torres (D-Calif.).

A message from Altria:

Moving beyond smoking. Altria’s companies are leading the way in moving adult smokers away from cigarettes. Today, we are taking action to transition millions toward less harmful choices.

From cigarettes to innovative alternatives. By investing in a diverse mix of businesses, Altria is working to further broaden options. Our companies are encouraging adult smokers to transition to a range of choices that go beyond traditional, combustible cigarettes.

From tobacco company to tobacco harm reduction company. And while Altria is moving forward to reduce harm, we are not moving alone. We are working closely with FDA and other regulatory bodies, and will work strictly under their framework.

See how we’re moving.

New Joint Fundraisers

Cortez Masto Victory 2022 (Sen. Catherine Cortez Masto, All For Our Country Leadership PAC, Nevada Democratic Victory)
Tillis and Colleagues Victory Committee (Sen. Marco Rubio, Sen. John Thune, NRSC, Together Holding Our Majority PAC, Bluegrass Committee)

New PACs

Battle Ready PAC (Super PAC)
COALITION FOR A BETTER FUTURE (Hybrid PAC)
LEAGUE FOR SPORTSMEN, LAW ENFORCEMENT AND DEFENSE (AKA THE LEAGUE) (Hybrid PAC)
Liberty Belle PAC (Super PAC)
Long Beach Victory Fund (Super PAC)

SUBSCRIBE TO "THE RECAST" TODAY: Power is shifting in Washington and in communities across the country. More people are demanding a seat at the table, insisting that politics is personal and not all policy is equitable. The Recast is a twice-weekly newsletter that explores the changing power dynamics in Washington and breaks down how race and identity are recasting politics and policy in America. Get fresh insights, scoops and dispatches on this crucial intersection from across the country and hear critical new voices that challenge business as usual. Don't miss out, SUBSCRIBE . Thank you to our sponsor, Intel.

New Lobbying Registrations

Baker Donelson Bearman Caldwell & Berkowitz /The Daschle Group: America's Public Television Stations
Better Holdco, Inc.: Better Holdco, Inc.
Capitol Transportation Consulting: Sullivan Strategies On Behalf Of Aeye
Cornerstone Government Affairs, Inc.: Bedrock Gas Solutions
Cornerstone Government Affairs, Inc.: Earth Day Network
Cornerstone Government Affairs, Inc.: Global Electronics Council
Cornerstone Government Affairs, Inc.: Harmonia Holdings Group, LLC
Hogan Lovells US LLP: Cardone Industries Inc.
Holland & Knight LLP: K&L Gates On Behalf Of Clark Street Associates On Behalf Of Everactive Inc.
Holland & Knight LLP: K&L Gates On Behalf Of Clark Street Associates On Behalf Of Ionq, Inc.
Holland & Knight LLP: K&L Gates On Behalf Of Clark Street Associates On Behalf Of Rambus
Mehlman Castagnetti Rosen & Thomas, Inc.: Pacific Biosciences Of California, Inc.
The Wessel Group Incorporated: Dow Chemical Company
Williams And Jensen, Pllc: Mattel

New Lobbying Terminations

Ballard Partners: Children'S Hospital Association
Ballard Partners: Delaware North Companies Gaming & Entertainment, Inc.
Ballard Partners: On Demand Holdings, Inc.
Clark Hill, Plc: Retrotope Inc.
Farragut Partners LLP: La Jolla Pharmaceutical Company
Farragut Partners LLP: Trio Health Regulatory Advisory Group, LLC
Mcdermott Will & Emery LLP: Agmart Produce
Mcdermott Will & Emery LLP: American Mosquito Control Association
Mcdermott Will & Emery LLP: California Avocado Commission
Mcdermott Will & Emery LLP: Florida Tomato Exchange
Mcdermott Will & Emery LLP: Intalere
Mcdermott Will & Emery LLP: National Potato Council
Mcdermott Will & Emery LLP: United Phosphorus, Inc.
Mcguirewoods Consulting (A Subsidiary Of Mcguirewoods LLP): Global Plasma Solutions, Inc.
Mcguirewoods Consulting (A Subsidiary Of Mcguirewoods LLP): Nanovibronix, Inc.
Miller & Chevalier, Chtd.: Alight Solutions
Mr. Michael Musante: American Federation For Children
Mr. Thomas R. H. Glass: Broadmoor Properties
Pareto Policy Solutions, LLC: Rivian
Prime Policy Group: Baker & Mckenzie LLP On Behalf Of Sumitomo Chemical America
Prime Policy Group: Dunkin' Brands
Squire Patton Boggs: Theodore Roosevelt Presidential Library Foundation
The Mckeon Group, Inc.: Keiser University
The Smith-Free Group, LLC: Hsbc Technology & Services (USa) Inc
Waxman Strategies: European Federation For Transport And Environment
Waxman Strategies: Jerry Jung