ALEC

ALEC Double Whammy: Whistleblower Complaint and Another Corporate Departure

It’s been a rough start to the week over at the American Legislative Exchange Council.

Common Cause has submitted a formal whistleblower complaint against ALEC to the IRS this morning, alleging that the organization has flouted federal tax laws by portraying themselves as a tax-exempt charity and misusing their 501c3 status by acting primarily as a lobbying organization, according to a press release.

501c3 organizations have very strict limitations on lobbying, and ALEC consistently states on its tax returns that it does not engage in lobbying. But it’s hard to see how an organization that helps facilitate meetings between corporate representatives and state legislators, produces model legislation and coaches state legislators on how to advocate for and defend such legislation can be considered anything BUT lobbying.

Corporations provide the vast majority of ALEC’s funding. But since their membership dues are written up as donations to a “charitable” organization, they can deduct the dues from their taxes – leaving the American taxpayers to make up the difference, says Common Cause president Bob Edgar. “Corporations that have been funding this organization have, in fact, been lobbying and getting a tax break. The taxpayers of the United States have been paying for a lobbying operation because these corporations can take this off on their taxes.”

The 4,000 pages of internal ALEC documents submitted to the IRS make the case that ALEC is an active lobbying organization, and by law, the IRS is required to launch an investigation.

As if that isn’t headache enough, a thirteenth company, Procter & Gamble, has ended its membership in ALEC. As a P&G spokesperson told Color of Change, the company “made the determination that ALEC does not help P&G compete for consumers’ loyalty and support.”

The pressure is now on Johnson & Johnson, one of the companies still connected to ALEC and a target of a petition drive to get ALEC-member corporations to leave the organization, to explain how ALEC’s extreme agenda benefits their consumers when their major competitor P&G concluded it did not.

PFAW Foundation

ALEC's Self-Defense Doesn't Hold Water

Facing unprecedented public scrutiny and the beginnings of a mass corporate exodus, the American Legislative Exchange Council is on defense. This morning, the organization issued a statement explaining that they are a “pro-growth, pro-jobs” policy organization, and really can’t see what all the fuss is about. Here’s a snippet:

"For years, ALEC has partnered with legislators to research and develop better, more effective public policies – legislation that creates a more transparent, accountable government, policies that place a priority on free enterprise and consumer choice, and tax policies that are fair, simple and that spur the kind of competiveness that puts Americans back to work.

"At a time when job creation, real solutions and improved dialogue among political leaders is needed most, ALEC’s mission has never been more important. This is why we are redoubling our commitment to these essential priorities. We are not and will not be defined by ideological special interests who would like to eliminate discourse that leads to economic vitality, jobs and fiscal stability for the states."

Unfortunately for ALEC, these defenses simply don’t hold water. If ALEC’s idea of “discourse” means putting corporate lawyers together with state lawmakers at secret conferences to draft pro-corporate legislation; and “economic vitality” and “jobs” means suppressing the vote, locking up immigrants, busting unions and wrecking the environment – all measures designed to funnel money into the coffers of ALEC’s corporate members regardless of the damage to others – then there’s a lot more fuss headed their way. Here’s part of PFAW Foundation president Michael Keegan’s response:

“ALEC’s statement would have us believe that their policies promote ‘economic vitality,’ but it is difficult to see how policies that disenfranchise thousands of voters, create irrational gun laws like ‘Shoot First,’ promote fast tracks to prison for immigrants and endanger our health and safety by gutting environmental protections make any American better off. The true economic consequences of the ALEC agenda – which includes privatizing public resources such as schools and prisons, dismantling unions and stacking the deck against average people who try to seek justice in a court of law – is that wealthy special interests get even richer while the rest of us are left in the dust. ALEC believes in job creation – unless job elimination is better for the bottom line of a few corporations."

The full statement is available here.

PFAW Foundation

“Gut and go” used to move up proof of citizenship in Kansas

A Kansas Senate committee put the brakes on efforts to move up proof of citizenship for voter registration – until a backdoor maneuver known as “gut and go” brought it back to life.
PFAW Foundation

ALEC: The Hidden Player Behind ‘Stand Your Ground’ Laws

The tragic death of Trayvon Martin – the 17 year old African American who was slain while walking down the sidewalk of a gated community – has shocked the nation, and has drawn international attention to the role of race relations in America.

The tragedy has also shed light on Florida’s "Stand Your Ground" law, which expands the legal justifications for "justifiable homicide" – and which is key to the "self-defense" claims of Trayvon’s alleged shooter, George Zimmerman. This "Stand Your Ground" law, signed into Florida statutes in 2005, became a model for legislation pushed by the corporate-backed American Legislative Exchange Council (ALEC), and with ALEC’s help has since been replicated in states across the country.

On April 26th, 2005, Florida became the first state in the nation to pass "Stand Your Ground" legislation, which expanded the circumstances under which the use of deadly force for self-defense is considered justifiable. Under the so-called "Castle Doctrine," a person’s right to defend themselves from attack in their own home has traditionally been recognized and typically in such circumstances the burden falls on the individual to prove that the use of force is reasonable. Under the expanded “Stand Your Ground” laws, the permissible use of deadly force for self-defense expands beyond the home, into spaces including personal vehicles and even public places, and the burden of showing that the use of force was unreasonable falls on the prosecution. It is such provisions which are apparently complicating the current investigations in the Martin shooting.

"Stand Your Ground" laws have been popping up around the country in recent years (24 states currently have them on the books) – and that’s no coincidence. Just as we have seen with the proliferation of Voter-ID laws, the force behind the trend is ALEC, the American Legislative Exchange Council, the corporate-funded front group that has helped advance the most extreme laws adopted by state legislatures, from SB 1070 in Arizona to SB 5 in Ohio.

Again and again, we’ve seen corporations use ALEC to push laws that put profits above the wellbeing of ordinary people. In the case of “Stand Your Ground” legislation, the weapons industry and ALEC have advocated for a law that encourages more people to carry weapons, thereby increasing industry profits.

The National Rifle Association (NRA) is a prominent member of ALEC, and has used its influence within the organization to push pro-gun policies across the country. In 2008, ALEC employee Michael Hough appeared on NRA News to talk about ALEC’s amicus brief in support of the NRA’s position in District of Columbia v. Heller. Hough described ALEC as a “very pro-Second Amendment organization,” and also stated, “Some of the things we were pushing in states was the Castle Doctrine [the name for ALEC’s model bill], we worked with the NRA with that, that’s one of our model bills that we have states introduce, and another one was the emergency powers legislation which was enacted in a couple states.”

Despite their grassroots image, the NRA is far from being simply a grassroots organization. An extensive report by the Violence Policy Center documents how gun companies bankroll the NRA through their many opportunities to sponsor NRA programs and make direct contributions to the organization:

Since 2005, corporations—gun related and other—have contributed between $19.8 million and $52.6 million to the NRA as detailed in its Ring of Freedom corporate giving program.1 In a promotional brochure for the program, NRA Executive Vice President Wayne LaPierre promises that the “National Rifle Association’s newly expanded Corporate Partners Program is an opportunity for corporations to partner with the NRA....This program is geared toward your company’s corporate interests.” The vast majority of funds—74 percent—contributed to the NRA from “corporate partners” are members of the firearms industry: companies involved in the manufacture or sale of firearms or shooting-related products. Contributions to the NRA from the firearms industry since 2005 total between $14.7 million and $38.9 million.

That corporate funding helps to explain why the NRA has the means to donate, for example, $25,000 to ALEC in 2011 to achieve "Vice-Chairman" level sponsorship for ALEC’s annual conference. It also explains why NRA lobbying efforts are so important to their mission, since the laws they lobby for enrich the financial funders of the organization.

Unfortunately, until we change it, the ALEC model is working – for the corporations that fund the network. Florida’s "Stand Your Ground" legislation and ALEC’s model bill contain identical language, which has now been introduced in states across the country.

Those who aren’t served by this system are the American people. When politicians enact ALEC legislation that benefits corporations, real people suffer the consequences. The results are tragic:

 

(Source:  Data issued by the Florida Department of Law Enforcement)

 

PFAW Foundation

Voter suppression’s on the menu in Michigan

Last month we reported on the citizenship question that came up during Michigan’s primary. But that’s just the tip of the iceberg for voter suppression in the Great Lakes State.
PFAW Foundation