The Arizona Republic turns a blind eye to questions about ALEC

Posted by AzBlueMeanie:

There has been a substantial amount of reporting about the American Legislative Exchange Council (ALEC) this week that has apparently gone unnoticed or willfully ignored at the Arizona Republic.

I am deeply disappointed in Alia Beard Rau and Mary Jo Pitzl for their Insider column on Sunday, in which they report:

– Buddy, can you spare $1,900?… It's legislative-conference season, and organizers are on the hunt for money to send needy lawmakers to these annual confabs.

The local representatives of the American Legislative Exchange Council are asking "key business leaders," i.e. lobbyists, to contribute to the group's Arizona Scholarship Fund. The tax-deductible money will be used to cover the airfare, lodging, ground transportation and registration for the upcoming ALEC conference in New Orleans. Organizers anticipate $1,900 will cover the cost for one lawmaker.

Rep. Debbie Lesko, the public-sector chair for the conservative group, said 30 lawmakers are planning to go, but she couldn't comment on how the fundraising is going. The donations go to ALEC and return to Arizona as scholarships. Lawmakers, nervous about Fiesta Bowl-type questions, are wondering how to deal with the donations. Lesko said she's advising them to disclose it as a gift, something many have done in the past.

Lesko, R-Glendale, notes the conferences are educational and said scholarships are the only way many can go, since the state (i.e. you, the taxpayer) isn't picking up the tab. Although some lawmakers are paying their own way, many others can't afford it. After all, $1,900 is nearly one-tenth of a lawmaker's salary.

"Nothing to see here, move along." Only there is something to see. About those donations that Lesko says to disclose as "gifts"…

I reported earlier this week on the In These Times investigative report Publicopoly Exposed– How ALEC, the Koch brothers and their corporate allies plan to privatize government. Alia Beard Rau and Mary Jo Pitzl should take the time to read it. Two reports on the tentacles of the Kochtopus and ALEC (excerpt):

Public records requests demonstrate a clear tradition of ALEC model legislation being passed from ALEC-member corporate lobbyists through the offices of ALEC’s elected public-sector chairs to other lawmakers. In essence, ALEC has created a web of lawmakers and public employees who act as lobbyists/agents on their behalf and on behalf of their corporate and special interest members.

It is important to note that ALEC, as a 501 (c) (3) entity, is strictly prohibited by federal tax code from taking part in the formation of legislation. In the past year, ALEC has vociferously insisted (since falling under increased scrutiny as a result of the July 2010 In These Times cover story, “Corporate Con Game,” which documented ALEC’s role in disseminating model legislation based on Arizona’s SB 1070), that it simply passes model legislation along to lawmakers. As such, ALEC claims it is not engaged in the crafting of actual legislation, nor is it engaged in lobbying.

Despite such protestations, ALEC is a conduit, an intermediary between Corporate America and the Republican Party—a legislative roach motel controlled by corporations, special interest groups and right-wing think tanks through which lawmakers (whose election campaigns are often funded by the same corporations and interest groups) gather model laws to take home and introduce in state legislatures.

* * *

ALEC annually spends more than $1 million for corporate lobbyists to meet state lawmakers at lavish retreats—lawmakers who will return home and try to shepherd ALEC’s corporate-sponsored “model legislation” into law.

However, through an accounting sleight of hand, ALEC hides the identity of the corporations that are paying for the lawmakers’ junkets and backing the group’s model legislation.

* * *

In 2009 alone, ALEC tax returns show that the group spent a combined $2,620,343 on organizing conferences and a membership services program that manages “the recruitment and retention of ALEC state legislator members” and “provides assistance to ALEC state chairs in raising state scholarship funds, tracking the expenditures of these funds, and ensuring that members of ALEC leadership are operating in accordance with ALEC policies and procedures.” In 2009, ALEC held $1,042,629 as “scholarship” funds to reimburse lawmakers attending ALEC functions. That’s listed on the tax returns not as an expenditure, but as a liability. Through this accounting trick, ALEC retains its tax-exempt status while simultaneously wining and dining thousands of the nation’s state lawmakers—who then go on to introduce ALEC’s legislation. In each state, ALEC has both a “public sector” and “private sector” chair.

The public interest group Common Cause has since asked the Internal Revenue Service to investigate the tax status of the nonprofit American Legislative Exchange Council. Common Cause accuses conservative American Legislative Exchange Council nonprofit of lobbying – latimes.com:

In a letter to the IRS, Common Cause argued that a review would help determine if ALEC's tax-exempt, 501(c)(3) status should be revoked due to "excess lobbying or, alternatively, because ALEC appears to operate primarily to further private business interests and not to advance a charitable purpose."

* * *

On Wednesday, a Wisconsin-based liberal activist group, the Center for Media and Democracy, released thousands of pages of internal ALEC documents, including model bills, emails and details of the organization's internal procedures, which give private-sector representatives a major role in drafting proposed legislation.

Citing information in ALEC's tax returns, Common Cause said that most of the group's work is done by nine task forces made up of legislators and corporate representatives. The task forces generate model bills.

ALEC has said more than 1,000 bills are introduced annually around the country based on the group's templates. Common Cause contends that such activity violates tax code provisions that bar nonprofits from "carrying on propaganda, or other attempting, to influence legislation."

The Center for Media and Democracy released thousands of pages of internal ALEC documents earlier this week at ALEC Exposed. Maybe Alia Beard Rau and Mary Jo Pitzl should take the time to peruse these documents and, oh I don't know, report on it! The Center for Media and Democracy already did all the research for you, what more do you want? The Nation has a report on this project. ALEC Exposed | The Nation. And our own David Safier did a post about it. Writing GOP legislation, ALEC style: {insert name of state legislative body}.

It seems to me that the Arizona Republic has willfully ignored this reporting. It should be disclosing the names of the 30 state legislators who want to participate in this retreat and receive a "scholarship" from ALEC, and raising questions about the corrupting influence of ALEC's lobbying activities. This corporate front group has been allowed to fly under the radar for many years because the media will not shine a light on its activities, until now.