American Legislative Exchange Council

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

List of Companies Dropping ALEC hits 10

In the week since the call went out for the corporations on ALEC’s Private Enterprise Board to disassociate from the organization, a whopping TEN companies have publicly announced that they will no longer bankroll the American Legislative Exchange Council’s extreme agenda.

These entities have bid ALEC adieu, and more are sure to follow:

  • Coca-Cola
  • PepsiCo
  • Kraft
  • Intuit
  • Wendy’s
  • Mars, Inc.
  • Arizona Public Service
  • Reed Elsevier
  • American Traffic Solutions
  • McDonald’s

PFAW and other advocacy organizations have launched a petition calling for the remaining companies to leave ALEC, putting increasing pressure on companies like State Farm and Johnson & Johnson to stop funding the organization responsible for so many attacks against workers, public education, the right to vote and so many other fundamental issues.

However, the member-corporations are only one part of the ALEC equation. Slowly but surely, ALEC-member state legislators are beginning to understand that ALEC’s toxic policies are not in the best interests of their constituents, and are backing out of the organization as well:

Missouri State Rep. Mike Colona:

The American Legislative Exchange Council (ALEC) is not the innocuous, bipartisan organization it purports to be. Their agenda is radical and wrong for Missouri. I was a member and saw firsthand the sort of extreme legislation they push on state legislators around the country. I disagree with ALEC's extremist agenda and encourage my colleagues in the Missouri General Assembly to end their affiliations with the group. If ALEC is too extreme for Coke, Pepsi, McDonald's, Kraft, Wendy's, Intuit and the Gates Foundation, it's too extreme for me and the people of Missouri.

Texas State Rep Alma Allen:

As a legislator, I value the input that non-partisan organizations contribute to various issues. However, I do not believe that the American Legislative Exchange Council is a non-partisan organization. Due to the legislation that ALEC has been involved in forming and promoting, I will not be renewing my membership. I value and listen to all opinions, but ALEC's agenda has become harmful to my constituents, and the people of the State of Texas.

There’s much more work to be done, but the ALEC house of cards is beginning to crumble.

PFAW

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

Protesting ALEC’s Deadly “Shoot First” Laws

Over 100 activists rallied in Washington DC today to call for justice for Trayvon Martin. The people gathered had another point to make as well: Americans are fed up with ALEC’s pernicious influence in writing pro-corporate legislation and pushing it through state legislatures across the country. Today, outside ALEC’s headquarters, we made sure we were heard.

People For’s Diallo Brooks spoke at the event, calling attention to role ALEC and the NRA played in setting the stage for this tragic situation. While racial profiling may be at the heart of this case, the laws pushed by ALEC at have hampered Trayvon’s family’s ability to seek justice, just as ALEC legislation has done to so many Americans.

 

Here are some additonal photos from the event:

 

 

People For the American Way also signed and delivered a letter to ALEC demanding that they disclose their financial ties to the National Rifle Association and desist from promoting "Shoot First" laws. You can read the letter here.

PFAW Foundation

Activists to Rally at ALEC HQ in Honor of Trayvon Martin

Tomorrow, activists and progressive organizations will descend on the headquarters of the American Legislative Exchange Council (ALEC) in Washington, DC to protest the NRA-designed “Shoot First” laws that ALEC has shopped to state legislatures around the country. As Calvin posted earlier this week, “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)

 

Information for the rally is below, and pictures will be posted after the event.

WHAT: Rally in Washington, DC, to protest the ALEC campaign to pass the "Shoot First" laws that protect Trayvon Martin's shooter, and delivery of letter to ALEC headquarters demanding disclosure of NRA funding and immediate cessation of “Shoot First” legislative advocacy:

WHEN: Thursday, March 29, 2012 at Noon

WHERE: ALEC Headquarters, 1100 Vermont Ave., NW Washington, DC

SPEAKERS:

Rep. Corrine Brown (D-FL); Hilary Shelton, NAACP; Marc Morial, National Urban League; Rashad Robinson, ColorOfChange; Lisa Graves, CMD/ALECexposed; Mike Livingston, National Council of Churches; Diallo Brooks, People For the American Way; Doug Clopp, Common Cause.

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

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