North Carolina Dems: Today: Kochs Riding to Tillis’ Rescue (Again) with Falsehoods (Again) and Dirty Money (Again)

RALEIGH, N.C., Oct. 29 -- The North Carolina Democratic Party issued the following news release:

Americans for Prosperity (AFP), a shady special interest group founded by Charles and David Koch and funded by a network of secretive donors and shady nonprofits, is riding to Thom Tillis' rescue once again.

Tillis, who recently announced a fundraising quarter derided in the media as "weak" and "underwhelming" and saw the North Carolina Senate race was moved away from him, so it's no surprise that the same special interests that brought you North Carolina's damaging, highly contentious General Assembly, are moving to prop him up now. Tillis has previously been the beneficiary of an AFP ad blitz, which came as an AFP-supported tax plan that resulted in hiking taxes on 80% of North Carolinians to give big breaks to the wealthy floundered under public disapproval.

Two entities in the Koch brothers network of shady political nonprofits were recently forced to pay back a whopping $16 million, including a $1 million fine, the largest campaign finance punishment in California history, for efforts to conceal involvement in a state election. Last month, it was revealed that a secret, Koch-aligned group, Freedom Partners, raised and spent about $250 million in 2012. They have also advocated for privatizing Social Security, endorsed the Ryan plan to essentially end Medicare, opposed children's health insurance, and fought to protect tax breaks for big oil companies. And Koch Industries has lobbied to protect its oil speculation, and has been accused of shipping jobs overseas.

The Koch brothers also fund the American Legislative Exchange Council (ALEC), a special interest group that pushes legislation to benefit corporate sponsors, including the Kochs. Tillis sits on the ALEC board, and was named the organization's legislator of the year in 2011.

AFP President Tim Phillips, who will be at the event in Raleigh, has questionable ties to lobbyists that echo Tillis' history of shady ethical dealings, inappropriate relationships, and golden parachutes for disgraced staffers. Phillips' firm, Century Strategies, is tightly tied to corrupt lobbyist Jack Abramoff, and helped him move millions of dollars in a scandal that later saw Abramoff jailed on felony conspiracy, fraud, and tax evasion charges.

"Once again, Special Interest Speaker Thom Tillis is in trouble, and once again shady special interest groups are riding to his rescue," said Ben Ray, a spokesman for the North Carolina Democratic Party. "Americans for Prosperity is one of the same shady special interests that brought you Tillis' hikes on taxes for 80 percent of North Carolinians, $500 million in public education cuts, and rejection of healthcare for 500,000 North Carolinians during the General Assembly. They've supported the privatization of Social Security, opposed children's health insurance, and supported tax breaks for big oil companies. North Carolinians deserve better than shadily funded attack ads from Thom Tillis' special interest backers."

BACKGROUND

TILLIS' RELIANCE ON SPECIAL INTERESTS IS CLEAR: HIS CAMPAIGN FUNDRAISING IS WEAK, SO HIS TEAM PLANS TO RELY ON OUTSIDE SPECIAL INTEREST MONEY TO SPREAD THEIR AGENDA...

National Journal'sJosh Kraushaar: "Agree On NC Leaning Hagan's Way, And Tillis' $$ Haul Was Surprisingly Underwhelming." [@HotlineJosh,10/24/13]

The Hotline: "Tillis Had a Pretty Weak Quarter [...] Tillis' Third Quarter Fundraising Is Disappointing." "'Almost of a fourth' of what House Speeaker Thom Tillis (R) 'says he's raised ... came from his own pocket.' In the third quarter, Tillis raised just $550,000 and loaned himself another $250,000, bringing the total amount he's raised since he entered the race in May to $1 million. Spokesperson Jordan Shaw said the loan 'shows Tillis' level of commitment to the race.' (AP) Tillis had a pretty weak quarter. Subtracting his $250,000 loan -- which seems to designed to get him to the $1 million mark overall -- Tillis raised less than a third of what Sen. Kay Hagan (D) brought in last quarter. Given his history in state politics and ties to the business community, Tillis' third quarter fundraising is disappointing." [The Hotline, 10/23/13]

GOP Consultant Larry Shaheen Defended Tillis's Poor Fundraising By Claiming He Will Close The Gap By Relying On Outside Money. NEWS 14'S TIM BOYUM: "Thom Tillis says he's raised more than a million dollars total. We haven't got exact total for the third quarter yet. $800,000 on hand compared to $5.4 million for Kay Hagan. Larry, I mean, this looks like a difficult fundraising battle or can he close that gap?" GOP CONSULTANT LARRY SHAHEEN: "Well he's going to be able to close that gap very quickly with the onset of independent expenditure money from North Carolina." [News 14 Capital Tonight, 10/22/13]

WHICH WAS PROVEN EARLIER THIS YEAR, WHEN SPECIAL INTEREST GROUP AMERICANS FOR PROSPERITY RAN ADS IN NORTH CAROLINA TO PROMOTE TILLIS' LEGISLATURE'S TAX PLAN, WHICH RESULTED IN 80% OF NORTH CAROLINIANS FACING HIGHER TAXES

May 2013: Americans For Prosperity Ran TV Ads In North Carolina Promoting The Legislature's Tax Plan, Since "Public Polling And Anecdotal Interviews Suggest A Skeptical Public Needs A Good Bit Of Convincing." "Americans for Prosperity launched the first phase of its campaign to support Republican lawmakers efforts to rewrite the state's tax code. In a new TV ad, it describes 'a new day' in North Carolina politics, urging viewers to 'encourage our new leaders to keep going' and sign a petition supporting a tax overhaul. Dallas Woodhouse, the AFP state director, declined to provide additional details on the TV buy for the ad, titled 'Back in the Game.' But he said it is appearing on cable channels across the state and some broadcast channels. AFP has promised to put $500,000 into supporting the plan -- and public polling and anecdotal interviews suggest a skeptical public needs a good bit of convincing. The 30-second spot is largely void of the details of the tax plan -- the ones that are generating a lot of opposition -- and doesn't note how the GOP leaders of the House and Senate are far apart on the effort." [Raleigh News & Observer, Under the Dome, 5/29/13]

North Carolina Budget and Tax Center: Compared To 2013 -- When North Carolinians Benefitted From The Earned Income Tax Credit -- Under The Legislature's Tax Plan The Bottom 80% Of Taxpayers Would See Higher Taxes. "The majority of taxpayers, on average, will see their taxes increase under the plan, contrary to the claim made by proponents that all taxpayers will get a tax cut. Wealthy individuals and profitable corporations will receive huge tax cuts. As such, the tax plan shifts more of the costs of paying for North Carolina's schools and other public services to middle-class and low-income taxpayers, and away from the wealthy and corporations. The plan is particularly damaging to the finances of low-income families in North Carolina because it allows the state's Earned Income Tax Credit (EITC) to expire at the end of 2013. This credit supplements income earned by low-wage workers and is one of North Carolina's most effective tools for fighting poverty. Accounting for the expiration of the state EITC, the bottom 80 percent of taxpayers, on average, will see their taxes increase under the tax plan compared to current tax law." [Budget & Tax Center, Final Tax Plan Falls Short Of True Reform, August 2013]

* Under The Legislature's Tax Plan, "Both Proponents And Opponents Of The Plan Acknowledge That The Biggest Breaks Will Go To The Highest Income Earners." "As for how the tax bill will affect any one individual, family or business, there is room for debate. Republican proponents of the measure point to an analysis by the legislature's nonpartisan fiscal research staff that shows taxpayers across all categories will see at least some slight reduction in tax burden under the bill. But an analysis by the liberal-leaning North Carolina Budget and Tax Center predicts that taxpayers who make less than $84,000 per year will end up paying more in taxes, once all the tax code changes go into effect. [...] Both proponents and opponents of the plan acknowledge that the biggest breaks will go to the highest income earners." [WRAL, 7/18/13]

AMERICANS FOR PROSPERITY IS A SHADOWY SPECIAL INTEREST GROUP FUNDED BY THE KOCH BROTHERS, WHICH DOES NOT DISCLOSE ITS DONORS AND RUNS MISLEADING ADS

Americans For Prosperity Is A Koch Brothers Group. "Americans for Prosperity said Friday that it is planning a billboard campaign in the Research Triangle and the Piedmont Triad questioning Democratic Sen. Kay Hagan's stance on the issue of carbon emissions tax. [...] Americans for Prosperity is a group started by the by the Koch brothers, whose investments include oil refining facilities. The American Energy Alliance also has ties to Koch Industries." [Raleigh News & Observer, Under the Dome, 9/20/13]

* The Koch Brothers' Americans For Prosperity Has "Ties To The Tea Party Movement." "Backed by David H. Koch and Charles G. Koch, Americans for Prosperity is a conservative issue advocacy organization with ties to the Tea Party movement." [New York Times, accessed 9/21/13]

Americans For Prosperity Does Not Disclose Its Donors. "Non-profit organizations such as Americans for Prosperity do not have to report contribution information, including the identity of donors, to the Federal Election Commission. They can spend money advocating for the election or defeat of presidential candidates, and those expenditures must be reported to the F.E.C." [New York Times, accessed 9/21/13]

* Americans For Prosperity Spent $36 Million To Influence The 2012 Elections. [OpenSecrets.org, accessed 9/21/13]

PolitiFact: Americans For Prosperity Has Received 0 "True" Or "Mostly True" Ratings. [PolitiFact, Americans for Prosperity, accessed 10/28/13]

FactCheck.org On An Anti-Obamacare Americans For Prosperity Ad: "Don't Expect Honest Answers From A Partisan Anti-Obamacare Campaign." "An ad from a conservative advocacy group [Americans for Prosperity] attacks the federal health care law by asking misleading and loaded questions about its impact. [...] We're not suggesting that the Affordable Care Act shouldn't prompt questions and concern from Americans. [...] But don't expect honest answers from a partisan anti-Obamacare campaign." [FactCheck.org, 7/11/13]

THE KOCH BROTHERS ARE THE KINGS OF SECRET MONEY--JUST THIS WEEK, "SECRETIVE" POLITICAL GROUPS LINKED TO THE KOCH BROTHERS WERE FINED A "RECORD" $1 MILLION FOR VIOLATING CAMPAIGN FINANCE LAWS IN 2012...

New Yorker: "A Secretive Political Group Linked To The Billionaire Conservative Activists Charles And David Koch Has Agreed To Pay A Record Fine For Violating California's Laws Requiring The Disclosure Of Campaign Donations." "It's now established that a secretive political group linked to the billionaire conservative activists Charles and David Koch has agreed to pay a record fine for violating California's laws requiring the disclosure of campaign donations. But much else about these dark-money maneuvers remains shrouded in the mystery that inspired the title "Covert Operations" for the story I wrote about the Koch brothers in 2010." [New Yorker, 10/25/13]

October 2013: "Two Groups That Are Part Of A Conservative Political Network Maintained By Billionaire Industrialists Charles And David Koch Have Agreed To A Record $1 Million Civil Settlement With The California Fair Political Practices Commission, The Largest Campaign Fine In State History." "Two groups that are part of a conservative political network maintained by billionaire industrialists Charles and David Koch have agreed to a record $1 million civil settlement with the California Fair Political Practices Commission, the largest campaign fine in state history. The Center to Protect Patient Rights and Americans for Responsible Leadership, two Arizona-based groups that have funneled money to various arms of the Koch operation, will pay the fine for their role in financing ballot initiative campaigns in California in 2012. [...] The $1 million fine is the highest levied in FPPC history, and it ranks as the third-highest campaign finance fine ever levied." [Washington Post, 10/24/13]

* The Koch-Backed Groups Were Also Required To Return $15 Million In Donations That Were Improperly Reported. "Two groups that are part of a conservative political network maintained by billionaire industrialists Charles and David Koch have agreed to a record $1 million civil settlement with the California Fair Political Practices Commission, the largest campaign fine in state history. The Center to Protect Patient Rights and Americans for Responsible Leadership, two Arizona-based groups that have funneled money to various arms of the Koch operation, will pay the fine for their role in financing ballot initiative campaigns in California in 2012. [...] The FPPC and California Attorney General Kamala Harris (D) filed suit against Americans for Responsible Leadership over the source of the contributions. ARL said the money had come from Americans for Job Security, another Koch brothers operation, and CPPR; ARL then passed the money on to the Small Business Action Committee, a California-based independent expenditure committee. An investigation found another $4 million contribution from CPPR to another California-based committee. Neither contribution was properly reported, and under state law, the receiving committees will have to turn that cash -- more than $15 million in all -- over to the California general fund." [Washington Post, 10/24/13]

Washington Post Editorial: The California Investigation Offered "A Rare Glimpse Of The Dark Money Coursing Through U.S. Politics" And "The Network Of Transfers -- Millions Of Dollars Being Handed Off In The Shadows -- Should Spark Renewed Efforts To Expose Dark Money To Sunlight." "The California Fair Political Practices Commission has just parted the curtains on a network of hidden donations in the state's Nov. 2012 campaign, offering a rare glimpse of the dark money coursing through U.S. politics. There are important lessons for the whole country in the California case, which resulted in a record $500,000 civil fine imposed on each of the two groups involved. They will also have to disgorge $15 million, the equivalent of the dark money they received, to the state. [...] What's revealing about the case is the way the nonprofits were used to hand off contributions to each other while masking the true source of the donations. The weakness exposed here lies in IRS rules that allow dark money to slosh around in nonprofits. [...] the network of transfers -- millions of dollars being handed off in the shadows -- should spark renewed efforts to expose dark money to sunlight." [Editorial, Washington Post, 10/27/13]

* Fair Political Practices Commission Chair: "This Is A Nationwide Issue. These Groups Exploit Loopholes In State Law To Undermine The Clear Purpose Of The Law." "Two groups that are part of a conservative political network maintained by billionaire industrialists Charles and David Koch have agreed to a record $1 million civil settlement with the California Fair Political Practices Commission, the largest campaign fine in state history. [...] 'This is a nationwide issue. These groups exploit loopholes in state law to undermine the clear purpose of the law,' Ann Ravel, the chairwoman of the FPPC [California Fair Political Practices Commission] and an incoming member of the Federal Election Commission, said at a Thursday press conference. 'They hid the names of the true donors.'" [Washington Post, 10/24/13]

* Fair Political Practices Commission Chair: "This Case Highlights The Nationwide Scourge Of Dark Money Nonprofit Networks Hiding The Identities Of Their Contributors." "The FPPC and California Attorney General today announced a record civil settlement against the Center to Protect Patient Rights (CPPR) and Americans for Responsible Leadership (ARL), two nonprofits operated as part of the 'Koch Brothers' Network' of dark money political nonprofit corporations. The settlement requires CPPR and ARL to pay $1 million to the State General Fund for their failure to disclose two dark money independent expenditure contributions in the 2012 election to oppose Proposition 30 and support Proposition 32. 'This case highlights the nationwide scourge of dark money nonprofit networks hiding the identities of their contributors,' said FPPC Chair Ann Ravel." [California Fair Political Practices Commission, Press Release, 10/24/13]

* AND JUST LAST MONTH A NEW SECRETIVE KOCH BROTHERS GROUP WAS REVEALED, WHICH SPENT $250 MILLION IN 2012 (MORE THAN ALMOST ANY OTHER CONSERVATIVE GROUP) WITHOUT ANYONE'S KNOWLEDGE

Politico Headline: "Exclusive: The Koch Brothers' Secret Bank." [Politico, 9/13/13]

September 2013: A New Mysterious Koch Brothers Entity, "Whose Existence Until Now Was Unknown To Almost Everyone In Politics" Was Revealed - Freedom Partners Raised And Spent About $250 Million In 2012. "An Arlington, Va.-based conservative group, whose existence until now was unknown to almost everyone in politics, raised and spent $250 million in 2012 to shape political and policy debate nationwide. The group, Freedom Partners, and its president, Marc Short, serve as an outlet for the ideas and funds of the mysterious Koch brothers, cutting checks as large as $63 million to groups promoting conservative causes, according to an IRS document to be filed shortly. The 38-page IRS filing amounts to the Rosetta Stone of the vast web of conservative groups -- some prominent, some obscure -- that spend time, money and resources to influence public debate, especially over Obamacare." [Politico, 9/13/13]

* "A Totally Unknown Group Was The Largest Sugar Daddy For Conservative Groups In The Last Election, Second In Total Spending Only To Karl Rove's American Crossroads And Crossroads GPS, Which Together Spent About $300 Million." "The group [Freedom Partners] has about 200 donors, each paying at least $100,000 in annual dues. It raised $256 million in the year after its creation in November 2011, the document shows. And it made grants of $236 million -- meaning a totally unknown group was the largest sugar daddy for conservative groups in the last election, second in total spending only to Karl Rove's American Crossroads and Crossroads GPS, which together spent about $300 million." [Politico, 9/13/13]

Freedom Partners Does Not Disclose Its Donors. "Freedom Partners is organized under the same section of the Tax Code as a trade association, a 501(c)6, which allows the group to conceal its donors from public release, although the amounts and recipients of its major grants are public." [Politico, 9/13/13]

AMERICANS FOR PROSPERITY AND THE KOCH BROTHERS ARE AGAINST THE BEST INTERESTS OF NORTH CAROLINA FAMILIES--THEY WANT TO PRIVATIZE SOCIAL SECURITY AND END MEDICARE AS WE KNOW IT, AND THEY OPPOSED EXPANDING CHILDREN'S HEALTH CARE AND ENDING TAX BREAKS FOR BIG OIL COMPANIES...

Americans For Prosperity Foundation Advocated For Privatizing Social Security. "Personal accounts would allow millions of younger workers to have part of their Social Security taxes automatically invested in secure, diversified bond funds and stock funds, similar to what many workers already do with 401(k) plans and Individual Retirement Accounts (IRAs)." [Americans for Prosperity Foundation, 6/6/05]

Americans For Prosperity: "Overall, AFP Supports The Ryan Plan." [Americans For Prosperity, 3/14/13]

* The Ryan Plan "Would End Traditional Medicare By Capping Spending And Offer Vouchers To Buy Private Insurance." "The 2010 Patient Protection and Affordable Care Act that Obama pushed for doesn't cut Medicare; it simply reduces projected future increases in costs by $700 billion over 10 years. [...] Those same reductions in the future growth of Medicare are contained in the budget bills sponsored by Ryan and approved by the same House Republicans who now say they'll campaign against the provision. Romney has endorsed the Ryan plan. The difference is the savings in the Republican bill don't go to help seniors with their prescription drug costs. In fact, Ryan's legislation increases the amount senior citizens will have to pay for drugs since it repeals the health-care legislation that provides the extra subsidy. Ryan's budget bill also would end traditional Medicare by capping spending and offer vouchers to buy private insurance." [Bloomberg, 8/13/12]

* The Ryan Plan "Would Essentially End Medicare." "Republicans will present this week a 2012 budget proposal that would cut more than $4 trillion from federal spending projected over the next decade and transform the Medicare health program for the elderly, a move that will dramatically reshape the budget debate in Washington. The budget has been prepared by Rep. Paul Ryan, a Wisconsin Republican and the new chairman of the House Budget Committee, and it represents the most complete attempt so far by Republicans to make good on their promises during the 2010 midterm elections to cut government spending and deficits. Though Rep. Ryan based the Medicare portion of his budget on a previous plan created in collaboration with a Democrat, Alice Rivlin, a senior fellow at the Brookings Institution and long-time budget expert, the current plan isn't likely to get much Democratic support. Instead, it will set up a broad debate over spending and the role of government heading into the 2012 general election. The plan would essentially end Medicare, which now pays most of the health-care bills for 48 million elderly and disabled Americans, as a program that directly pays those bills." [Wall Street Journal, 4/4/11]

Americans For Prosperity Praised President Bush's Veto Of An Expansion Of The Children's Health Insurance Program. [Americans for Prosperity, 10/16/07]

Koch Industries Has Spent Millions Lobbying To Protect Tax Breaks For Oil And Gas. "Koch Industries, the oil and industrial conglomerate run by the conservative-activist Koch brothers, has multiplied its spending to lobby for tax breaks and lax environmental regulation in recent years, according to a report published Wednesday. The report, from the Washington-based Center for Public Integrity (CPI), says Wichita, Kansas-based Koch raised its lobbying budget by more than 23-fold between 2004 and 2008, when it spent $20 million. [...] In the oil patch, Koch has lobbied for the United States to maintain some tax breaks and credits for oil and gas producers that the Obama administration wants to end, CPI said." [Reuters, 4/6/11]

* AND KOCH INDUSTRIES MANIPULATES THE OIL AND GAS MARKET, AND HAS BEEN ACCUSED OF SHIPPING JOBS OVERSEAS

Koch Industries Lobbies To Protect Their Ability To Manipulate The Oil And Gas Market. "Koch lobbyists spend much of their time, according to their disclosure reports, fighting attempts by members of Congress to curb price-gouging, windfall profit-taking and speculation in the oil industry. To this same end, Koch officials worked to dilute a 2009 Federal Trade Commission rule governing manipulation of the energy markets. Meanwhile, Koch has lobbied to preserve some of the oil industry's coveted tax breaks and credits. One benefit is known as the Section 199 deduction, approved by Congress several years ago to help the hard-pressed U.S. manufacturing sector. In light of the oil and gas industry's hearty profits, the Obama administration and members of Congress have sought to end the Section 199 subsidy for energy firms and save the U.S. Treasury $14 billion over 10 years. But Koch lobbyists and trade associations have worked to preserve the deduction. Another industry tax break that drew the support of Koch representatives is the venerable 'LIFO' (last-in, first-out) accounting rule. It allows energy companies effectively to raise the value of their existing inventory (and thus pay lower taxes on profits from sales) when the price of oil soars. Under LIFO, the oil in a company's inventory, no matter what it actually cost, is valued at the cost of the last-acquired (usually highest-cost) barrel. The LIFO rule has been a target in recent years for both Democrats and Republicans in Washington, who would like to raise revenue without raising taxes." [iWatch, 8/25/11]

* Koch Industries Has "Lobbied Against Regulations That Could Curb Derivatives Trade." "In the oil patch, Koch has lobbied for the United States to maintain some tax breaks and credits for oil and gas producers that the Obama administration wants to end, CPI said. As a major trader of financial derivatives, Koch has also lobbied against regulations that could curb derivatives trade." [Reuters, 4/6/11]

LA Times' Tim Rutten: "Organizations That Monitor Employment Practices Also Cite Koch Industries As One Of The Most Ruthless Exporters Of American Manufacturing Jobs To Foreign Countries." "California, birthplace of the modern environmental movement, remains one of the greenest of blue states, even while it struggles to cope with levels of unemployment unseen since the Depression. That makes the budding relationship between Republican senatorial candidate Carly Fiorina and billionaire industrialists David and Charles Koch all the odder. The Kochs own and run America's second-largest privately held company, Koch Industries -- an amalgam of oil, gas, pipeline, chemical, fertilizer and wood products companies, including Georgia-Pacific. Lump them together, and the Koch brothers have the country's third-largest fortune -- $35 billion -- after Bill Gates and Warren Buffett. [...] For years, according to the New Yorker article, the brothers and their company funded organizations promoting 'environmental skepticism,' including the notion that acid rain is 'a myth.' Charles Lewis, founder of the nonpartisan Center for Public Integrity, told Mayer that when it comes to the amount of money they donate to politics, 'the Kochs are on a whole different level.... They are the Standard Oil of our times.' Organizations that monitor employment practices also cite Koch Industries as one of the most ruthless exporters of American manufacturing jobs to foreign countries. Before she was ousted as chief executive of Hewlett-Packard, Fiorina laid off 30,000 workers and outsourced thousands of positions abroad, so perhaps the Kochs sense a kindred spirit." [Tim Rutten, LA Times, 9/25/10]

THE KOCH BROTHERS HELP FUND ALEC, A SPECIAL INTEREST-FUNDED GROUP THAT PUSHES BILLS TO BENEFIT ITS CORPORATE MEMBERS...

ALEC Is Funded By The Koch Brothers, Who Have Likely Given The Group More Than $1 Million To Push Their Agenda. "Hundreds of ALEC's model bills and resolutions bear traces of Koch DNA: raw ideas that were once at the fringes but that have been carved into 'mainstream' policy through the wealth and will of Charles and David Koch. Of all the Kochs' investments in right-wing organizations, ALEC provides some of the best returns: it gives the Kochs a way to make their brand of free-market fundamentalism legally binding. No one knows how much the Kochs have given ALEC in total, but the amount likely exceeds $1 million--not including a half-million loaned to ALEC when the group was floundering. ALEC gave the Kochs its Adam Smith Free Enterprise Award, and Koch Industries has been one of the select members of ALEC's corporate board for almost twenty years. The company's top lobbyist was once ALEC's chairman. As a result, the Kochs have shaped legislation touching every state in the country. Like ideological venture capitalists, the Kochs have used ALEC as a way to invest in radical ideas and fertilize them with tons of cash." [The Nation, 7/12/11]

ALEC Exists To Bring Corporations And State Legislators Together To Write "Model Bills" - Pieces Of Legislations That Corporations Would Like TO Become Law, Which Is Often Favored Tax Treatment Or Reduced Regulations. "For three decades, the American Legislative Exchange Council, the meeting's host, has brought together corporations (including Pfizer (PFE), AT&T (T), and ExxonMobil (XOM)) and state legislators to write what it calls model bills--pieces of legislation the industries would like to become law. Often this means protecting favored tax treatment or keeping regulations at bay. ALEC has also approved model bills on social issues, including gun control and voter registration. The bills then get passed around among the 1,800 mostly Republican legislators who are ALEC members. They introduce the model bills about 1,000 times a year in state capitols around the country, the group says. About 200 become law." [Bloomberg BusinessWeek, 5/3/12]

* Edwin Bender Of The National Institute On Money In State Politics: "Corporations Can Implement Their Agendas Very Effectively Using ALEC." [CNN Money, 1/10/11]

ALEC Is "Funded Mostly By Corporations And Conservative Foundations" And "Exists To Bring Business-Friendly State Lawmakers Together With Lobbyists For Corporations." "Opponents of President Obama's health care overhaul landed a chin shot last month when a federal judge found the law's requirement that citizens buy health insurance unconstitutional. Virginia Attorney General Ken Cuccinelli argued that there was a conflict between a state law that made it illegal to force people to buy coverage and the new federal law. But the Virginia law itself wasn't thought up in the Old Dominion. Rather, it was the product of a 2008 huddle in Washington. Conservative state legislators from across the country, along with industry lobbyists, hashed out the bill at the annual gathering of a little-known group called the American Legislative Exchange Council, or ALEC. The organization, founded in 1973 and funded mostly by corporations and conservative foundations, exists to bring business-friendly state lawmakers together with lobbyists for corporations, including AT&T (T), Exxon Mobil (XOM), Wal-Mart (WMT), and Johnson & Johnson (JNJ). It drafts model bills related to its goals of free markets and limited government." [CNN Money, 1/10/11]

* One Study Showed 98% Of ALEC's Funding Comes From Sources Other Than It's Member Dues - Such As Corporations, Corporate Foundations, And Trade Associations. "Almost 98% of ALEC's cash is from sources other than legislative dues, such as corporations, trade associations, and corporate foundations. ALEC describes itself as the largest 'membership association of state legislators,' but only a little more than ten percent of its funding comes from legislative dues. Some of the biggest corporations in the world bankroll and thus subsidize the activities of the legislators who are part of ALEC. Corporations provide general support that covers the annual ALEC conventions -- which are summer trips of politicians and their families to resorts for the annual ALEC meeting -- and the preparation of 'model' bills and glossy promotional materials. ALEC could actually be called one of the most powerful membership associations of corporations attempting to influence state legislators. But ALEC's tax filings do not even count corporate donations as membership dues; they are listed under gifts." [Center for Media and Democracy, PR Watch, 7/13/11]

ALEC Is Organized As A Charity, "Despite The Intimate Involvement Of Lobbyists." "Despite the intimate involvement of lobbyists, ALEC officials insist the organization is not a lobbying group, since it doesn't follow lawmakers to try to advance their bills. Instead, ALEC is a charity, a status it justifies because of its educational mission. The designation allows the group to collect tax-deductible contributions, and it eases lawmaker travel to ALEC events." [CNN Money, 1/10/11]

* ALEC's Organization As A Charity Means That Corporate Members Can Deduct Their Yearly Dues, And ALEC Doesn't Have TO Disclose The Names Of Legislators And Executives Who Attend Meetings. "ALEC pays for the meetings through membership fees (called donations) that corporations pay. The legislators receive travel stipends (called scholarships) to attend the meetings. ALEC is registered with the IRS as a nonprofit that provides a public service, not as a lobbyist that seeks to influence. This offers two benefits: Corporate members can deduct yearly dues, which run up to $25,000--more if they want to sponsor meetings; and ALEC doesn't have to disclose the names of legislators and executives who attend. That's important, because if ALEC operated with complete openness it would have difficulty operating at all. ALEC has attracted a wide and wealthy range of supporters in part because it's done its work behind closed doors. Membership lists were secret. The origins of the model bills were secret. Part of ALEC's mission is to present industry-backed legislation as grass-roots work. If this were to become clear to everyone, there'd be no reason for corporations to use it." [Bloomberg BusinessWeek, 5/3/12]

Public Interest Groups Have Criticized ALEC For Refusing To Publish The Names Of Its Legislative Members And Corporate Sponsors, Or The Names Of The Individuals Representing Corporations On ALEC Committees. "A two-year campaign by a coalition of public interest groups has pushed the American Legislative Exchange Council (ALEC) to release hundreds of pieces of 'model' state legislation secretly developed and pushed into law by corporate interests. The coalition includes the Center for Media and Democracy, ColorOfChange, Common Cause, Greenpeace, People For the American Way, Progress Now, Voters Legislative Transparency Project, and a variety of labor organizations. But ALEC has far more to do before it can legitimately claim to be operating in the sunshine, the watchdog groups said. They urged its leaders to publish the names of ALEC's legislative members and corporate sponsors, as well as the names of the individuals representing corporations on ALEC committees. In addition, the groups say ALEC must open the task force meetings at which bills are discussed and voted on." [Center for Media and Democracy, PR Watch, Press Release, 3/15/13]

* WHICH BEEN ACTIVE IN THE NORTH CAROLINA LEGISLATURE UNDER TILLIS, WHO HAS SHOWCASED HIS CLOSE TIES TO THE GROUP

Charlotte Observer: "ALEC's Influence Has Shown Up In A Variety Of Bills" Under The Leadership Of Tillis, Including Voter ID, School Vouchers, And Rejecting Health Care Reform. "ALEC's influence has shown up in a variety of bills this session, ranging from legislation requiring voter ID at the polls to allowing private school vouchers to repealing the federal health care law. Critics highlight the organization's ties to business interests, while supporters say the organization is a useful resource." [Charlotte Observer, 5/30/13]

* At Least Two Dozen Bills Introduced In North Carolina Legislative Contain Language Identical to ALEC Template Legislation. "A handful of measures sponsored by North Carolina lawmakers this session include language identical to ALEC's template legislation. At least two dozen more bills match the organization's priorities and intent, if not its exact language - everything from requiring voter ID at the polls and allowing private school vouchers to repealing the federal health care law and prioritizing energy exploration." [Winston-Salem Journal, 5/6/13]

Tillis Said ALEC Is a Great "Collaboration Between Legislators and Businesses." "Tillis and two other lawmakers - ALEC State Chairman Jason Saine, a Lincolnton Republican , and Asheville Republican Tim Moffitt - skipped the legislative session Thursday to attend the organization's spring conference in Oklahoma City. Moffitt missed the passage of his own bill to prohibit labor contracts that require unionized workers, an issue that fits ALEC's platform. 'I've been a member for several years, and it's a great organization,' Tillis said in a recent interview. ALEC named him 2011 legislator of the year. 'I think it's a great collaboration between legislators and businesses.'" [Winston-Salem Journal, 5/6/13]

* 2011: Tillis Won ALEC's "Legislator Of The Year" Award. "ALEC, or the American Legislative Exchange Council, describes itself as a free-market, limited-government group... Tillis won the group's Legislator of the Year award in 2011." [WRAL, @NCCapitol, 5/2/13]

* 2013: Tillis Joined The ALEC Board Of Directors. "House Speaker Thom Tillis recently joined the American Legislative Exchange Council's board of directors. 'I've been a member for several years and it's a great organization. I think it's a great collaboration between legislators and businesses. They asked me if I would serve I told them I would happy to,' he said in an interview. ALEC is a free-market organization that crafts 'model legislation' (such as the controversial 'Stand Your Ground' law) by putting corporate representatives and state legislators together. Critics - object to the secrecy of the process and say big business is buying access. Tillis dismissed any concerns about the group, comparing it to the National Conference on State Legislatures. 'If you look at most the legislation that moves through ALEC, a lot of it has it's roots in some other legislative body,' he said." [Raleigh News & Observer, Under the Dome, 3/14/13]

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