The formal complaints against the American Legislative Exchange Council are mounting. A group of clergy in Columbus, OH have filed a complaint with the IRS alleging that ALEC violated its tax-exempt status by “significantly misrepresenting its activities to the IRS, the states, and the public in order to advance a legislative agenda — an agenda largely crafted by the organization’s corporate members — that elevates commercial gain for a few over the well-being of society’s less fortunate.”
ALEC is an ultra-conservative organization that works to shepherd pro-corporate, lobbyist-drafted bills into model legislation to be introduced in statehouses around the nation. Their extreme agenda seeks to bolster corporate profits by privatizing public resources, defunding public education, damaging the environment and attacking working families.
As such, Clergy Voice, composed of 18 pastors from mainstream Christian churches, believes that such an organization has no right to the same tax status reserved for charitable organizations:
“It has angered a lot of us that there is this group of the big and powerful in terms of industries and the extremely wealthy that is courting legislators to pass cookie-cutter legislation that really favors their particular interests,” said the Rev. Eric Williams, spokesman for the group and pastor of North Congregational United Church of Christ on the Northwest Side.
Earlier this year, Common Cause submitted a similar whistleblower complaint against ALEC to the IRS.
The American Legislative Exchange Council (ALEC) has created damage-control web site, “I Stand With ALEC,” asking people to submit a letter to members of ALEC’s Private Enterprise Board and member legislators in support of the ultra-conservative, secretive organization. The form letter is here:
Stand With ALEC
Dear [Decision Maker],
As our economy continues to struggle, the need for strong leadership that promotes free markets and free enterprise is more crucial than ever. It's through limited government and a stronger private sector that we can create jobs and grow our economy. As a member of ALEC, I expect you to work on these types of solutions.
But I've seen in the news that these values, and groups that support them, are under attack by extremists. Groups like the American Legislative Exchange Council (ALEC) are important defenders of these free market ideals. You should know that this is exactly the kind of organization I expect you to work with. Don't let extremists sway you any other way.
It is through free-market, limited government and pro-growth principles that we can get the states and whole nation back on the right track. As a customer, I'll be watching closely to ensure that you represent those views in your decisions.
[City, State ZIP]
After the massive outrage sparked by revelations that ALEC’s Public Safety and Elections Task Force was responsible for the proliferation of “Stand Your Ground” laws in the wake of the death of Trayvon Martin, ALEC tried to disavow that committee and claimed that it was “refocusing [its] commitment to free-market, limited government and pro-growth principles.”
ALEC’s portfolio of harmful policies goes much farther than that, including model bills that disenfranchise voters, destroy public education, block access to healthcare, damage the environment, weaken public safety and harm working families. So far, 19 corporations, 4 non profit organizations and 54 state legislators have left the organization for these reasons.
If ALEC thinks it can repair its reputation by asking the American people to send reassuring letters to its members, it should think again. A petition drive and phone campaign led by People For the American Way Fundation, Color of Change and other organizations has already directed over 500,000 signatures and calls to ALEC’s corporate members demanding that those companies end their ALEC memberships immediately. The American people have already spoken on this one, and they don’t stand with ALEC.
This afternoon, Johnson & Johnson announced that it would discontinue its membership in ALEC, making it the 19th corporation to do so.
The running tally of organizations and legislators leaving the American Legislative Exchange Council, as of today:
• Corporations: 19
• Non-profits: 4
• State Legislators: 54
ALEC’s agenda is as secretive as it is extreme, but the American people are sending a loud and clear message that legislation drafted by corporate lobbyists has no place in our statehouses.
PFAW President Michael Keegan said the following after Johnson & Johnson’s announcement:
“The extreme ALEC agenda harms all of us on a daily basis. It’s disturbing that so many American companies still have a hand in advancing legislation that suppresses the right to vote, impedes access to health care, weakens public education and jeopardizes public safety. I commend the persistence of the hundreds of thousands of activists who have demanded accountability from corporations supporting the ALEC agenda. Johnson & Johnson’s departure from ALEC is a big victory, and the other corporate funders who have yet to leave ALEC should take note.”
Wal-mart announced yesterday that it is ending their membership in ALEC, making it the 18th corporation to do so. The company also joins 4 nonprofits and 54 state legislators who have severed their ties to the organization.
Wal-Mart had been a member of ALEC since 1993, was a member of ALEC’s Corporate Board and was the co-chair of the recently-disbanded Public Safety and Elections Task Force – the committee responsible for advancing dangerous gun legislation like Florida’s “Stand Your Ground” law around the country. Even as the nation’s largest seller of guns, Wal-Mart decided that the ALEC agenda is too extreme, going far beyond the free-market principles the organization claims to focus on:
"Previously, we expressed our concerns about ALEC's decision to weigh in on issues that stray from its core mission 'to advance the Jeffersonian principles of free markets," Maggie Sans, Wal-Mart vice president of public affairs and government relations, said in a May 30 letter addressed to ALEC's national chairman and executive director.
"We feel that the divide between these activities and our purpose as a business has become too wide. To that end, we are suspending our membership in ALEC."
Wal-Mart’s task force participation also included Health and Human Services, Commerce, Insurance and Economic Development, and Tax and Fiscal Policy, according to documents obtained and released by Common Cause. These committees are responsible for developing model bills that undermine workers rights, insurance mandates, capital gains taxes for the wealthy and deregulating certain industries.
People For the American Way’s President and Director of African American Religious Affairs spoke out about Wal-mart’s decision in a statement released this morning:
“Wal-Mart’s decision confirms the growing consensus in the business community that ALEC does far more harm than good,” said Michael Keegan, President of People For the American Way. “The 18 corporations that have stopped supporting ALEC’s dangerous agenda have made the right choice. Customers don’t want their paychecks going to support laws that disenfranchise and endanger their families and communities.”
“I commend Wal-Mart’s decision to listen to the thousands upon thousands of American voices who believe Wal-Mart had no place in an organization that tries to suppress the right to vote, promote discrimination and presents dangerous gun laws that are harmful to all,” said Minister Leslie Watson Malachi, Director of PFAW’s African American Ministers In Action. “When we stand together to make our voices heard, the movement we build cannot be ignored. ALEC’s extreme and undemocratic agenda has motivated a diverse movement that is growing stronger every day. One by one, our efforts are helping make our communities better for all families and especially those most vulnerable – those with special needs, our children and our elders.”
The most recent spate of companies fleeing from the American Legislative Exchange Council (ALEC) have been from the education and retail sectors, but yesterday ALEC got a rebuke from the healthcare industry as well. Medtronic, the medical technology company, has informed the Center for Media and Democracy that they did not renew their ALEC membership. Medtronic is the 17th corporation to leave the organization.
ALEC’s “healthcare” agenda is much less about helping sick people than about enriching healthcare corporations. To do so, ALEC advocates for policies that put quality care out of reach for many people by privatizing Medicare and Medicaid and repealing important laws that expand public access to care, including ObamaCare. They also push for the deregulation of the pharmaceutical and insurance industries and seek to limit accountability for drug companies that produce faulty medications that can cause injury or death.
The ALEC agenda is extreme, and when it comes to public health, it’s downright dangerous. Medtronic now joins Blue Cross Blue Shield in doing right by their customers and patients by getting out of ALEC.