By Katya Szabados
(From CMD: This report was originally printed as the cover story in the March 2, 2004 edition of the Madison-based newspaper "The Wisconsinite," titled "Dr. No and the Spectre of ALEC." While written more than seven years ago, the story it tells about the American Legislative Exchange Council (ALEC) and its role in Wisconsin government is illuminating and remains relevant today.
The Consumer Financial Protection Bureau (CFPB) throws open its doors to consumers this week, officially starting its mission to safeguard Americans from overly complex financial products and malignant banking practices. The bureau is the culmination of a national grassroots effort to hold the big banks accountable for the 2008 economic collapse caused by Wall Street's insatiable appetite for dangerous mortgage products. Millions of Americans signed petitions to create the bureau and new polling shows that 74% of Americans think it is a terrific idea.
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.
Although he passed away in 2006, states are now grappling with many of the toxic notions left behind by University of Chicago economist, Milton Friedman.
In her groundbreaking book, The Shock Doctrine, Naomi Klein coined the term "disaster capitalism" for the rapid-fire, corporate re-engineering of societies still reeling from shock. The master of disaster? Privatization and free market guru Milton Friedman. Friedman advised governments in economic crisis to follow strict austerity measures, combining radical cuts in social services with the full-scale privatization of their more lucrative assets. Many countries in Latin America auctioned off everything standing -- from energy and water utilities to Social Security -- to for profit multinational firms, crushing unions and other dissenters along the way.
As the first half of 2011 has revealed, Wisconsin is not a moderate "purple" state, but a state divided between staunchly "blue" progressives and righteous "red" right-wingers. That rift is particularly apparent in legislative conflicts over the criminal justice system, a debate spurred by corporate interests represented in the American Legislative Exchange Council (ALEC) and perpetuated by ALEC legislative members, including Wisconsin Governor Scott Walker.
Wisconsin's history and public policy reflects the red/blue divide. It is the state that gave birth to the Republican Party, which supported slavery abolition, and the John Birch Society, which opposed the civil rights movement. In the first half of the 20th Century, the state elected both progressive hero Robert "Fighting Bob" LaFollette and right-wing extremist Joe McCarthy. It is the state that elected both former Senator Russ Feingold (D) and Representative Paul Ryan (R).
Wisconsin also produced Paul Weyrich, who in 1973 co-founded both the Heritage Foundation and ALEC (and in subsequent years, Free Congress and Moral Majority). Weyrich's ALEC, it seems, has been a factory for many of the state's most recent right-wing policy initiatives.
The American Legislative Exchange Council's Annual Meetings and Task Force Summits are held in some of the nation's top travel destinations, at swanky hotels where state legislators and corporate executives enjoy lavish accommodations and exclusive excursions.
Common Cause has asked the Internal Revenue Service (IRS) to investigate the American Legislative Exchange Council (ALEC) for possibly violating its tax-exempt status. The request came one day after the Center for Media and Democracy unveiled "ALEC Exposed," a website uncovering more than 800 model bills created by the corporate-funded organization.
The American Legislative Exchange Council (ALEC) is an influential, under-the-radar organization that facilitates collaboration between many of the most powerful corporations in America and state-level legislative representatives. Elected officials then introduce legislation approved by corporations in state houses across the U.S., without disclosing that the bills were pre-approved by corporations on ALEC task forces.
ALEC has had a long relationship with the tobacco industry. To explore this relationship, we studied publicly-available tobacco industry documents found in the Legacy Tobacco Documents Library (LTDL), an electronic archive created by the University of California San Francisco that contains 70+ million pages of previously-secret, internal tobacco industry documents obtained in the discovery phases of the 46 state attorneys general lawsuits against the tobacco industry. Those lawsuits were resolved in 1998. The documents were made public as a term of the 1998 Master Settlement Agreement between the states and the tobacco industry. Before now, ALEC documents in this database have not been a major focal point.
The insurance industry made it abundantly clear this week that it is in the driver's seat -- in both Washington and state capitols -- of one of the most important vehicles created by Congress to reform the U.S. health care system.
The Affordable Care Act requires the states to create new marketplaces -- "exchanges" -- where individuals and small businesses can shop for health insurance. In the 15 months since the law took effect, insurers have lobbied the Obama administration relentlessly to give states the broadest possible latitude in setting up their exchanges. And those insurance companies have been equally relentless at the state level in making sure governors and legislators follow their orders in determining how the exchanges will be operated.
Days after President Obama signed the Affordable Care Act into law, I arrived at the spring 2010 meeting of the National Association of Insurance Commissioners (NAIC) in Denver, where a fellow consumer representative introduced me to one of the hundreds of industry lobbyists swarming the convention center.
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