FRESH AIR: Republican legislators picked up 680 seats in state House and Senate chambers in the 2010 elections. “They now hold more state legislative seats than at any time since 1928, the year that Herbert Hoover came to the presidency,” says reporter John Nichols. “They control 25 states [with] both houses of the legislature. There are also 21 states where Republicans control both houses of the legislature and the governorship. And in the backroom of politics, that’s what people really want. If you’ve got governor, state House and state Senate, you can pretty much roll through whatever legislation you want.” Nichols, a political reporter for The Nation, recently wrote the introduction and co-authored two in a series of articles about the relationship that state-based legislators have with a group called the American Legislative Exchange Council (ALEC). ALEC is a group that brings together state legislators and representatives of corporations to draft model bills that can then be introduced at the state level of government. An archive of ALEC documents was recently leaked to the Center for Media and Democracy. “All of those pieces of 
legislation and those resolutions [in the documents] really err toward a goal, and that goal is the advancement of an agenda that seems to be dictated at almost every turn by multinational corporations,” Nichols tells Fresh Air‘s Terry Gross. “It’s to clear the way for lower taxes, less regulation, a lot of protection against lawsuits, [and] ALEC is very, very active in [the] opening up of areas via privatization for corporations to make more money, particularly in places you might not usually expect like public education.” MORE
THE AMERICAN ASSOCIATION FOR JUSTICE: The Koch Brothers, big tobacco, insurance companies, and the drug industry: all behind the shadowy corporate front group known as the American Legislative Exchange Council (ALEC). On the surface, ALEC is mostly comprised of thousands of state legislators, each paying a nominal fee to attend ALEC retreats and receive model legislation. In reality, corporations pay ALEC a king’s ransom to access legislators to distribute radical legislation that puts corporate interests over American workers and consumers. So, while the membership appears to be public sector, corporate money dominates ALEC. In fact, public sector membership dues account for only around one percent of ALEC’s annual revenues. ALEC claims to be nonpartisan, but its pro-corporate, anti-consumer mission is clear. Few have ever heard of it, but the American Legislative Exchange Council, or ALEC, is the ultimate smoke filled back room.
On the surface, ALEC’s membership is mostly comprised of thousands of state legislators. Each pays a nominal membership fee in order to attend ALEC retreats and receive model legislation. ALEC’s corporate contributors, on the other hand, pay a king’s ransom to gain access to legislators and distribute their corporate-crafted legislation. So, while the membership appears to be public sector, the bankroll is almost entirely private sector. In fact, public sector membership dues account for only around one percent of ALEC’s annual revenues. ALEC claims to be nonpartisan, but in fact its free-market, pro-business mission is clear.
The result has been a consistent pipeline of special interest legislation being funneled into state capitols. Thanks to ALEC, 826 bills were introduced in the states in 2009 and 115 were enacted into law. Behind the scenes at ALEC, the nuts and bolts of lobbying and crafting legislation is done by large corporate defense firm Shook, Hardy & Bacon. A law firm with strong ties to the tobacco and pharmaceutical industries, it has long used ALEC’s ability to get a wide swath of state laws enacted to further the interests of its corporate clients. ALEC’s campaigns and model legislation have run the gamut of issues, but all have either protected or promoted a corporate revenue stream, often at the expense of consumers. For example, ALEC has worked on behalf of:
- Oil companies to undermine climate change proponents;
- Pharmaceutical manufacturers, arguing that states should be banned from importing prescription drugs;
- Telecom firms to block local authorities from offering cheap or free municipally-owned broadband;
- Insurance companies to prevent state insurance commissioners from requiring insurers to meet strengthened accounting and auditing rules;
- Big banks, recommending that seniors be forced to give up their homes via reverse mortgages in order to receive Medicaid;
- The asbestos industry, trying to shut the courthouse door to Americans suffering from mesothelioma and other asbestos-related diseases; and,
- Enron to deregulate the utility industries, which eventually caused the U.S. to lose what the Securities and Exchange Commission (SEC) estimated as $5 trillion in market value. MORE
RELATED: Plutocracy is a reference to a disproportionate influence the wealthy have on political process in contemporary society. The wealthy minority exerts influence over the political arena via many methods. Most western democracies permit partisan organizations to raise funds for politicians, and political parties frequently accept significant donations from various individuals (either directly or through corporations or advocacy groups). These donations may be part of a cronyist or patronage system, in which major contributors and fund-raisers are rewarded with high-ranking government appointments. While campaign donations need not directly affect the legislative decisions of elected representatives, politicians have a personal interest in serving the needs of their campaign contributors: if they fail to do so, those contributors will likely give their money to candidates who do support their interests in the future. Unless a quid pro quo agreement exists, it is generally legal for politicians to advocate policies favorable to their contributors, or grant appointed government positions to them. MORE
RELATED: Corporate oligarchy is a form of power, governmental or operational, where such power effectively rests with a small, elite group of inside individuals, sometimes from a small group of educational institutions, or influential economic entities or devices, such as banks, commercial entities that act in complicity with, or at the whim of the oligarchy, often with little or no regard for constitutionally protected prerogative. MORE
RELATED: Billionaire oilman David Koch likes to joke that Koch Industries is “the biggest company you’ve never heard of.” But the nearly $50 million that David Koch and his brother Charles have quietly funneled to climate-denial front groups that are working to delay policies and regulations aimed at stopping global warming is no joking matter. Charles G. Koch and David H. Koch have a vested interest in delaying climate action: they’ve made billions from their ownership and control of Koch Industries, an oil corporation that is the second largest privately-held company in America (which also happens to have an especially poor environmental record). It’s time more people were aware of Charles and David Koch and just what they’re up to. Greenpeace has released the report “Koch Industries: Secretly Funding the Climate Denial Machine” to expose the connections between these climate denial front groups and the secretive billionaires who are funding their efforts. The Koch brothers, their family members, and their employees direct a web of financing that supports conservative special interest groups and think-tanks, with a strong focus on fighting environmental regulation, opposing clean energy legislation, and easing limits on industrial pollution. This money is typically funneled through one of three “charitable” foundations the Kochs have set up: the Claude R. Lambe Foundation; the Charles G. Koch Foundation; and the David H. Koch Foundation. MORE
