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					      American Legislative Exchange Council –
                   - Federal Government and
                             Corrupt Practices

                          Independent Analytical Report

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government. We are dependent upon the contributions, donations and support of our members
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                                                                         By Bob Sloan, Director

© 2011 – Voter’s Legislative Transparency Project                                        Page 1
                    - About Voter’s Legislative Transparency Project -

         VLTP was founded in 2011 by a core group of individuals dedicated to making the crafting,
proposal and enactment of laws transparent. Many of VLTP‘s members have been researching, writing
and blogging about the activities of the American Legislative Exchange Council (ALEC) involving their
writing and dissemination of free market, pro-corporate, ultra-conservative legislation.

         Directors and members of VLTP have worked to fully expose ALEC‘s model legislation,
membership and the interference of both with our state and national democratic processes. We have
participated in each Protest, Demonstration, Rally and March against the existence of ALEC and their
corrupting of democracy on behalf of corporate profiteering.

        Individually and as members of various groups VLTP members and Directors have written,
blogged and published articles about ALEC and their activities since 2009. Several of the founding
members participated in the ALEC Exposed project published jointly between the Nation Magazine and
the Center for Media and Democracy (CMD) in July 2011. This project and the journalists involved
received the prestigious September 2011 Sidney Foundation Award for ―outstanding piece of socially-
conscious journalism.‖

        VLTP goals are:

    -   Organize and operate a national non-partisan Progressive platform involving tours, town hall
        meetings and press conferences to give a unified voice to all Progressive groups, organizations
        and candidates

    -   Expose those involved in lobbying and advancing legislation written by lobbyists and special
        interest groups – especially when such legislation is written by or on behalf of corporate interests

    -   Stop the creation of laws that do not benefit our individual state or federal society as a whole

    -   Identify and inform the public about ALEC and their funders, enablers and legislation they have
        already created and helped pass in our states and Congress

    -   Support, sponsor and organize voter registration drives to register new voters

    -   Develop and support web based broadcasting of audio and video coverage of events involving
        Progressive and Liberal points of view

© 2011 – Voter’s Legislative Transparency Project                                                     Page 2
Contents                                                                                         Page #
Preface                                                                                             - 6-

Introduction                                                                                        - 8-

ALEC Alumni Forum                                                                                   - 10 -.

Federal Forum Task Force                                                                            - 14 -.

Federal Laws Enacted by ALEC‘s Federal Forum Task Force                                             - 23 -

Influencing and Corrupting the Federal Judiciary                                                    - 31 -

          Supreme Court Interference                                                                - 40 -

Appearances as ‗Friend of The Court‘ to Sway Opinions and Judicial Rulings on Key Issues            - 43 -

Institute For Humane Studies – Koch‘s Intern Program(s)                                             - 46 -

          Koch Institute Intern Program                                                             - 48 -

Institute For Humane Studies – Journalism Internship(s)                                             - 49 -

Charting Relationships                                                                              - 54 -

Conclusion                                                                                          - 64 –

End Notes                                                                                           - 68 -
Copyright © November 2011 by the Voter‘s Legislative Transparency Project. All rights reserved. Except
as restricted under the United States Copyright Act of 1976, any part of this publication may be
reproduced or distributed in any form or by any means, or stored in a database or retrieval system, with
prior permission of the publisher and author. If republished, distributed or reprinted, proper attribution,
sourcing and acknowledgements to VLTP are required.

Published by:
Bob Sloan, Director
Voter‘s Legislative Transparency Project
7515 Ruskin Place, Indianapolis, Indiana - 46226
(317) 608-3698 - Cell. (317) 400-5674

© 2011 – Voter’s Legislative Transparency Project                                                    Page 3
Introducing the reader to the American Legislative Exchange Council (ALEC), its founders, incorporators
and their initiatives are identified. The agenda of ALEC and the manner in which the organization has
developed and changed over the past thirty nine years is provided. Over the years ALEC created ten (10)
(not 9 as generally believed) Task Forces that encompassed every aspect of legislation. They use these
TF‘s to develop the legislation they want implemented as laws in our states and at the national level.

ALEC Alumni Forum
By 2001 ALEC had a large active membership comprised of state lawmakers and corporate
representatives and lobbyists. They had been successfully developing and implementing legislation at
the state level for more than a quarter century. Many of their members had moved on to positions within
the federal government or had been elected to Congress over the years. In an effort to increase their
successful influence, ALEC began to advance their initiatives at the federal level. To facilitate this, ALEC
created a ―Forum‖ where state (members) and federal (alumni) lawmakers could interact and work to
advance the conservative, free market, pro-corporate initiatives and legislation at the Congressional level.

Federal Forum Task Force
With success brought about at the federal level through their Alumni Forum ALEC created an actual tenth
―Task Force‖ in 2005. This TF was officially co-chaired by two ALEC alumni: one Senator and one House
member. Their duties are to advance the initiatives presented at the state level directly to the U.S.
Congress and to lobby in both Houses on behalf of these issues. They have successfully brought about
the enactment of federal laws through this TF utilizing ALEC‘s numerous alumni and lobbying.

Influencing and Corrupting the Federal Judiciary
Free trips for state and federal judges with pro-corporate seminars given by think tanks, corporate
executives and associates is discussed with links, facts and names involved. Influence upon and
associations with key SCOTUS Justices are divulged. Research reveals more than five hundred judges
have willingly taken these excursions and attended the pro-corporate seminars.

© 2011 – Voter’s Legislative Transparency Project                                                   Page 4
Appearances as ‗Friend of The Court‘ to Sway Opinions and Judicial Rulings on Key
The mechanics of ALEC and their affiliate‘s influence upon court decisions by addressing issues and
presenting arguments directly to Judges through the use of Amicus Briefs is exposed. Some of the
important cases involving federal issues are identified - as are those participating in this.

Institute for Humane Studies – Internship Program
The IHS has been supported by Charles G. Koch since 1985 and is used to secure interns for more than
80 mostly conservative think tanks, foundations, institutes and organizations. IHS provides scholarships
for those with a similar ideology and dedication to a free-market philosophy and assists them with career
job placement(s) through internships, graduate seminars and similar programs,

Institute for Humane Studies – Journalism Internship
In addition to the IHS Internship program described above, they also offer internships and stipends to
those starting a career in journalism and media. These include Broadcast, New (Digital) Media,
Newspaper and Investigative Journalism. Where those internships have been served and links to IHS‘
alumni are provided.

Charting Relationships
Charts utilizing the connections and links between the various conservative groups and organizations with
the funding, influence and associations. Many connections previously unknown to exist are included.

Provides insight into how society is/has been affected by the CABAL that includes Koch money and ALEC
legislation. The author brings the reality of this CABAL‘s vast influence into focus and provides steps to
bring about a reversal of the erosion of our democracy.

© 2011 – Voter’s Legislative Transparency Project                                                  Page 5
As 2011 comes to a close many Americans have        exposed.    Huge multi-national corporations,
been made aware of the American Legislative         private foundations, wealthy and influential
Exchange Council (ALEC). In the past twelve         individuals were identified as providing the
months more information about ALEC has come         funding necessary to advance an ultra
to the attention of voters than was previously      conservative agenda nationwide.
known over the thirty-eight years of ALEC‘s
existence.                                          We learned Charles and David Koch sit at the
                                                    top of a long list of ―donors‖ funding ALEC and
Investigative journalists, researchers, bloggers    dozens of affiliated institutes, organizations and
and activists worked together to bring ALEC and     groups within a large network. Though ALEC
their activities to the forefront of political      and most of those network affiliates keep
discussion here in 2011. Americans learned          members and benefactor names unpublished,
about the legislative efforts, initiatives and      researchers were able to uncover and identify a
manipulations exercised by ALEC here in the         large number of ALEC‘s members, enablers and
U.S. over the past four decades.                    funders.

Voters have been made aware of the inner            In July 2011 the Center for Media and
workings and agenda of ALEC; the free market,       Democracy released a cache of previously
pro-corporate, conservative neo-con ideologies      unpublished ―model legislation‖ written and held
and federalism that serve as core values, beliefs   by ALEC. These documents were turned over to
and activities of this nonprofit corporation.       an activist (by a whistle blower) in Cincinnati in
                                                    April and then provided to CMD for analysis and
The public was also made aware of ALEC‘s            publication. CMD established a website where
pursuit of implementing corporate written           these documents were made available to
legislation in every state through a vast network   professional and citizen journalists, researchers
of conservative state lawmakers, lobbying and       and the public. Concurrent with the release of
supporting campaign contributions made by           documents several articles were published
those companies and foundations that stand to       jointly between CMD and The Nation magazine.
profit from the laws participating legislators      Journalists provided an analysis of the ALEC
enacted.                                            documents and how the legislation impacted
                                                    upon voters in those states where they became
By mid-2011 those who funneled tens of millions
of dollars into conservative political efforts
advanced by ALEC and their affiliates, were

© 2011 – Voter’s Legislative Transparency Project                                             Page 6
The founders and current members of the           involvement with state legislation and their
Voter‘s Legislative Transparency Project are      affiliates, VLTP looked at the possibility of this
also members of Daily Kos.          We actively   network‘s influences at the federal level – and
participated in research, writing and activism    beyond our shores.
involving ALEC over the past year – and some of
that research was used in the ALEC Exposed        The following analytical report is the result of
investigative project released by CMD and The     that research.      Our findings conclusively
Nation.                                           demonstrate ALEC is merely one facet of a
                                                  larger and more onerous network with tentacles
Some of that early state research indicated the   reaching into Congress and overseas. Today
activities of ALEC and the Koch affiliated        this CABAL‘s activities and influence are as
network were not limited to just conservative     multi-national as the corporate money behind
pursuits at the state level. Applying research    them.
protocols we‘d developed in exposing ALEC‘s

© 2011 – Voter’s Legislative Transparency Project                                           Page 7
                                                    lawmakers who shared a common belief in
                                                    limited government, free markets, federalism,
              The Early Years                       and individual liberty. Their vision and initiative
                                                    resulted in the creation of a voluntary
                                                    membership association for people who believed
The American Legislative Exchange Council
                                                    that the government closest to the people was
(commonly referred to by the acronym ALEC,
                                                    fundamentally more effective, more just, and a
was founded in 1973.             Founders were a
                                                    better guarantor of freedom than the distant,
combination of politicians and activists with
                                                    bloated federal government in Washington, D.C.
conservative        political   ideologies. Three
members formally registered as a 501 (c)(3)         Founders had a desire to utilize their talents,
non-profit in Illinois in 1975:                     influence and positions to advance conservative
                                                    ideologies throughout the political spectrum to
1973 ALEC C0-Founders & Powerbrokers
                                                    change the face of the American democratic
Paul Weyrich – conservative activist                landscape. The intent was to increase
                                                    conservative influence in state assemblies and
Lou Barnett – (Reagan‘s 68 Gov. Campaign)
                                                    ultimately within the U.S. Congress utilizing the
Henry Hyde House Member (R IL)
                                                    position(s) of those such as Buckley, Helms,
John Kasich – House Member (R OH)                   Crane and Kemp.
Robert Kasten - (R WI)
Tommy Thompson – (R WI)                             Since the early years ALEC created a revisionist
John Engler – Senator (R MI)                        history that has erased all references to original
Terry Branstad – House Member (R Iowa)              founders; Totten, Lukens and Jenkins from
John L. Buckley – US Sen. (C NY)
                                  1                 ALEC annals.         The reason for this is the
                                                    involvement in later acts of corruption and
Jesse Helms – US Sen (R NC)                                                            2
                                                    scandal by Lukens and Jenkins . Lukens was
Phil Crane – US Rep (R IL)
                                                    ousted from the U.S. House of Representatives
Jack Kemp – US Rep (R NY)                           in 1990 after being convicted for having sex with
Original 1975 Incorporators                         a 16-year-old girl and was later convicted on
                                                    bribery and conspiracy charges relating to his
Donald Totten – House Member (R IL)                 congressional service. In 1984 Jenkins and his
Donald Lukens – Senator (R OH)                      wife founded a not-for-profit organization,
Woody Jenkins – House Member (D LA)                 Friends of the Americas; it was later revealed
Together these men formed a bipartisan              that former National Security Agency aide Oliver
membership association for conservative state       North funneled $125,000 to the group as part of
                                                    his effort to aid the Nicaraguan contras.

© 2011 – Voter’s Legislative Transparency Project                                              Page 8
The scandals of Lukens and Jenkins have been        become intermingled with the goals of others.
followed by similar scandals involving ALEC         Once they opened membership to corporations
members/alumni such as Representative Tom           and businesses to attract funding, the primary
DeLay (R TX) and Representative Bob Ney (R          goal of these corporate members – profits -
OH)       (ALEC Alumni) who along with              became all important – and began to control
congressional staffers were implicated in the       ALEC‘s pursuits.
Jack Abramoff lobbying scandal and sentenced
to federal prison. Former U.S. Representative       Today state legislators no longer have overall
Katherine Harris was an ALEC member when            control of the agenda of ALEC. Instead control
she served as a FL. Representative. She was         is shared equally between a Board of Directors
also implicated in the Abramoff/DeLay/Ney           (state lawmakers) and a Private Enterprise
scandal, having received $6,000 of that money       Board consisting of corporate executives and/or
in campaign contributions. Harris has several       their representatives and lobbyists. In reality
other scandals in her past from her time as a FL.   corporations submit ideas that will enrich their
Representative and active ALEC member .
                                          4         bottom line and lawmakers put those ideas into
                                                    a legislative format. With an equal vote the
Former U.S. Representative Mark Foley (R-FL)        corporatists and lawmakers then decide whether
who was forced to resign his seat in 2006 due to    to adopt the final written legislation as ―model
a sex scandal         involving interns and         bills ‖ or reject it. If adopted that legislation is
Congressional pages is an ALEC Alumni.              then sent out to the states with the legislators
                                                    and proposed as new laws.
The foregoing represents just the top ALEC
alumni who have been involved in corruption         Thousands of these model bills have been
and scandals. Many more have fallen to              adopted and introduced in every state in the
corruption and scandals over the years. Such is     U.S. Hundreds have become law - state by
their belief of being above the law.                state. Today we see evidence of their abilities in
                                                    Wisconsin, Indiana, Ohio, Maine, Florida and
Today ALEC proudly attributes the formation of      several other states in legislation on school
ALEC to Weyrich, Barnett, Henry Hyde and a          privatization, voter ID legislation, privatization,
―handful of others.‖ Their site has eradicated      immigration laws and repeal or elimination of
most references to those members or alumni          worker‘s rights, healthcare repeal and collective
involved in scandals, indictments or sent to        bargaining.
                                                    The foregoing are activities that have become
Over the years ALEC‘s membership and agenda         common knowledge about ALEC through
evolved to what it is today. Though they have       articles and the ALEC Exposed project. What
always maintained their purpose to exist is         follows are activities that have either escaped
based upon a desire for; ―free markets, limited     discovery altogether or were previously not
government, federalism, and individual liberty,‖    attributed to ALEC and their Charles and David
their pursuit of obtaining those goals has          Koch funded CABAL.

© 2011 – Voter’s Legislative Transparency Project                                              Page 9
                                  ―ALEC Alumni Forum‖
From 1999 through 2006 U.S.           Representative              steadily growing. In the last year
Dennis Hastert was Speaker            of the House.               alone, three ALEC members were
Hastert is an ALEC alumnus            having been a               elected to the U.S. Congress, and
                                                                  many more are campaigning in the
member during the three terms         he served as a
                                  1                               2002 election year. Distinguished
state Representative in Illinois.                                 alumni include Assistant Minority
                                                       10         Leader Don Nickles (R-Okla.),
In 2001 ALEC created their ―Alumni Forum‖.                        Speaker of the House Dennis Hastert
This initiative was launched with a specific                      (Ill.), Majority Whip Tom DeLay
purpose in mind:                                                  (Tex.), Deputy Majority Whip Mark
                                                                  Foley (Fl.), and Education and the
      ―ALEC‘s Alumni Forum is charged with                        Workforce Committee Chairman John
      developing a national forum to                              Boehner (Oh.).
      encourage improved communications                           ―Health and Human Services
      among current and former ALEC                               Secretary Tommy Thompson and
      members. Alumni Forum activities will                       White House Chief of Staff Andrew
      include special investigations and                          Card are ALEC alumni who were
      speaking engagements at major ALEC                          active members when they were state
      events, and joint policy members with                       legislators."
      state and national leaders. . . .
      Through the Alumni Forum program,                     It is possibly more than coincidental that this
      ALEC will seek the support of its                     new ALEC Alumni Forum was first formed
      former members in the development                     concurrently with the election of George Bush as
      of reforms that reflect the principles of             President. President H.W. Bush spoke to ALEC
      the organization at all levels of                     at the Old Office Building at the White House in
      government…                                                                               11
                                                            1991 on federalism and state rights .
      ―In addition, nine sitting governors,
      including Frank Keating (Okla.), John                 Accompanying President Bush at that event was
      Engler (Mich.) and Bill Owens (Colo.)                 a future ALEC award recipient, Dick Cheney.
      as well as more than 80 Members of                    Cheney received the Thomas Jefferson
      the U.S. House of Representatives                                                                12
                                                            Freedom Award from ALEC in 2003 .
      and U.S. Senate are former ALEC
      members, and these numbers are

          Important to note is fact that since Hastert‘s
        serving as the Speaker of the house, every                 2
        Republican Speaker since has been affiliated with            As with the Speaker – the Majority Leaders have
        ALEC (alumni or supporter Boehner and Gingrich).           also been ALEC alumni.

© 2011 – Voter’s Legislative Transparency Project                                                        Page 10
George Bush followed in his father‘s footsteps      And spoke at another ALEC event in 2007:
regarding ALEC once he became President and
took office in 2001. He spoke at and on behalf of
ALEC during and after his term as President .

                                                    SOURCE: AP/Pablo Martinez Monsivais
                                                      (President George W. Bush, left, is introduced by Rep.
                                                      Kenny Marchant (R-TX), right, prior to speaking at the
                                                        American Legislative Exchange Council in 2007.)
                                                    When George Bush came into the Presidency in
                                               .    January 2001, he brought Donald Rumsfeld
                                                    (ALEC Corporate Alumni) and John Ashcroft
He also received ALEC‘s Thomas Jefferson
                                                    with him as his Secretary of Defense and
Freedom Award in 2005:
                                                    Attorney General. Ashcroft in turn brought with
                                                    him one of his Congressional staffers, Andrew
                                                    Schauder and made him a Deputy Attorney

                                                    At the time Ashcroft assumed the yoke of the
                                                    Department of Justice, it was prosecuting the
                                                    largest case of environmental contamination in
                                                    the history of the department. This was the case
                                                    against Koch Industries involving a 97-count
                                                    federal indictment charging it with concealing
                                                    illegal releases of 91 metric tons of benzene, a
                                                    known carcinogen, from its refinery in Corpus
                                                    Christi, Texas. Koch was looking at three
                                                    hundred and fifty million dollars in fines, and four
                                                    Koch employees faced up to thirty-five years in
                                                    prison .

                                                                Schauder is important to ALEC‘s federal
                                                            influence as will be shown further on in the Report.

© 2011 – Voter’s Legislative Transparency Project                                                   Page 11
Two days prior to the trial of Koch and their          had with Koch dating back to ALEC‘s 1987
executives, Ashcroft dropped 88 of the charges,        event, the campaign contributions to President
issuing a settlement and plea bargain, in which        Bush or through the influences exerted by the
the company pled guilty to falsifying documents.       newly formed Alumni Forum - is unknown.
All major charges were dropped, and Koch and           However each, present an appearance of
Ashcroft settled the lawsuit for a fraction of the     impropriety in such a huge case against one of
$350 million they should have paid. All charges        ALEC‘s most influential corporate members.
that could have sent the Koch executives to            This also wasn‘t the end of the Koch/Bush
prison were dropped with that agreement.               association regarding our environment and EPA
What was unknown at the time was that Ashcroft
– though never serving as a state legislator – had     Two years following the deal with Koch
an association with ALEC and Koch Industries.          Industries, President Bush successfully
In 1987 after serving as Missouri‘s Attorney           appointed a Koch employee, Alex Beehler, as
General, Ashcroft became the Governor of               assistant deputy under secretary of defense for
Missouri. That year ALEC selected the city of          Environment, Safety and Occupational Health.
Milwaukee, WI. to host their annual summit. Co-        Beehler was previously Koch Industries' director
chairs of that event were ALEC member Rep.             of environmental and regulatory affairs and
Donald Stitt (R WI), ALEC founder, Rep. Donald         concurrently served at the Charles G. Koch
E. Lukens (R-Oh) and MO. Governor John                 Foundation as vice president for environmental
        16                                                     17
Ashcroft .                                             projects and was in that position at the time the
                                                       DOJ was prosecuting Koch (according to his
In 1987 Koch Industries was an ALEC member                                   18
                                                       professional resume) . Beehler was later
and present at the Summit in WI. There are             nominated and re-nominated by the Bush White
hundreds of links on the Internet to this particular   House, to become the U.S. Environmental
case involving Koch and Ashcroft but none of                                                  19
                                                       Protection Agency's Inspector General , but
them mention the earlier involvement of Ashcroft       Senator Barbara Boxer was successful in
with ALEC and Koch and the possibility that            opposing that appointment .

such a relationship may have figured into the
prosecution in the latter case.                        Beehler‘s biography reveals he was not only a
                                                       Koch employee but was also a former DOJ
In Michael Moore‘s book, ―Stupid white men --
and other sorry excuses for the state of the
nation!‖, Moore points out that the Koch‘s                   ―… Mr. Beehler maintains a strong
contributed $800,000 dollars to the Bush and                 background in federal environmental
other Republican campaigns – but failed to                   policy having served in the
discover the 1987 ALEC/Koch/Ashcroft                         Department of Justice as a senior
connection.                                                  trial attorney for environmental
                                                             enforcement and at the
Whether the leniency offered to Koch Industries              Environmental Protection Agency as
                                                             a special assistant for legal and
by Ashcroft in 2001 was due to a relationship he
                                                             enforcement counsel.‖

© 2011 – Voter’s Legislative Transparency Project                                              Page 12
Another deputy AG during the Koch prosecution               for the American Legislative
in the early 2000‘s was the previously mentioned            Exchange Council (ALEC), the
Andrew W. Schauder. From 2001 to 2004                       nation‘s largest non-partisan,
Schauder served at the U.S. Justice Department
                                                            individual membership organization
                                                            of state legislators. He created and
as Special Assistant to Ashcroft in various                 managed a federal outreach
capacities including in the Office of Legal Policy,         program that increased the visibility
the Office of Legislative Affairs, and the Office of        and effectiveness of the
Intergovernmental and Public Liaison .
                                        22                  organization and its members.
                                                            Andrew built unprecedented levels
                                                            of participation and engagement
Schauder was recruited from DOJ in 2005 by
                                                            between ALEC‘s public and private
ALEC as the creator and first Director of the               sector members and Congress.
Federal Forum Task Force .
                                                            ―From 2001 to 2005 Andrew served
      ―Andrew Schauder has 10 years of                      at the U.S. Justice Department as
      experience developing and                             Special Assistant to the Attorney
      maintaining strategic relationships at                General in various capacities
      the federal, state and local levels to                including in the Office of Legal
      meet the goals of senior government                   Policy, the Office of Legislative
      officials as well as private sector                   Affairs, and the Office of
      companies.                                            Intergovernmental and Public
      ―Andrew served as Acting Chief of
      Staff and Deputy Chief of Staff at               With the hiring of Schauder, ALEC renamed the
      the U.S. Department of Labor under               ALEC Alumni Forum, turning it into their ―Tenth
      Secretary Elaine L. Chao. His job                Task Force‖ and through alumni increased
      included managing and directing                  involvement at the U.S. Congressional level.
      policies and programs at the $11
      billion cabinet agency that achieved
      record results in protecting the
      health, safety, wages, and
      retirement security of the nation‘s
      workforce. Andrew was a member of
      the Management Review Board and
      chairman of the grants review team.
      ―Prior to joining the Office of the
      Secretary, Andrew managed
      strategic relationships with                            4
                                                                 After leaving the DOL Schauder moved to the
      Department of Labor stakeholders                        private sector as a lobbyist for Ashcroft‘s DC
      including state and local legislators,                  Lobbying firm. He now works/lobbies for American
      governors, mayors and membership                        Traffic Solutions and in that capacity attended
      organizations as the Senior                             ALEC‘s 2011 Annual Meeting and was successful
                                                              in getting ALEC‘s members to approve model
      Intergovernmental Officer.                              legislation beneficial to American Traffic Solutions:
      ―Before his tenure at DOL, Andrew                       w_Schauder
      was the Director of Federal Affairs

© 2011 – Voter’s Legislative Transparency Project                                                      Page 13
                                    ―Federal Forum Task Force‖
In 2005 ALEC determined they would ―upgrade‖        Force was charged with carrying forward ALEC‘s
the Alumni Forum and rename it the ―Federal         initiatives to the federal legislative members of
Forum‖. In late 2005 they published a first issue   Congress:
of the Federal Forum and disseminated it to
their Congressional alumni.                               ―Due to the success of ALEC
                                                          legislative leaders in the states, their
Through this document – referred to as a guide -          careers are expanding beyond the
ALEC provided their alumnus with the initiatives
                                                          state legislature. ALEC has
                                                          developed a program for its alumni
they are pursuing at the state level and provided         members: the ALEC Federal
them with pre-written arguments/instructions on           Forum. The focus of the Federal
how to pursue the same initiatives at the federal         Forum is to build a productive
level.                                                    bipartisan working relationship
                                                          among current and former ALEC
There can be no doubt about ALEC‘s intent                 members at all levels of
through this tenth Task Force as the opening              government. Serving as Federal
statements by their top alumni, Speaker Dennis            Forum Co-Chairmen, Senator
                                                          George Allen and Congressman
Hastert and Mark Green inform:
                                                          Mark Green continue their
                                                          dedication to ALEC‘s mission at the
       "The members of ALEC are true                      federal level. Bringing state
      pioneers in advancing common-                       legislative leaders into contact with
      sense, conservative ideas. For 30                   their congressional counterparts is
      years many of these ideas have                      the cornerstone of the Federal
      transcended from state capitols to                  Forum—enabling ALEC members,
      Washington."                                        both state and federal, to secure
        -- Speaker Dennis Hastert, ALEC                   and protect a sound and balanced
      alumnus                                             government.
      ―ALEC is an organization of state                   ―In ALEC‘s continued service and
      legislators and state leaders, and it               assistance to its state and federal
      is fiercely proud of its mission, but I             members, this guide serves as a
      have come to believe, as some of                    reference to ALEC‘s congressional
      my colleagues have as well, that                    priorities, state legislative action,
      ALEC must develop a new stronger                    and policy experts, all based on the
      presence on the federal level."                     Jeffersonian principles of free
                                                          markets, individual liberty, and
       -- U.S. Congressman Mark Green,                    limited government.‖
      ALEC alumnus
                                                    The initiatives they wanted pursued at the
The Co-Chairs chosen to lead this Task Force
                                                    federal level in 2005-2006 were provided in this
were ALEC‘S alum; U.S. Rep. Mark Green and
                                                    Guide and given as Presidential Initiatives ALEC
U.S. Senator George Allen.        Again, the
Executive Summary leaves no doubt this Task

© 2011 – Voter’s Legislative Transparency Project                                             Page 14
                                                   ―Supporting No Child Left Behind (NCLB)
―Establishing and Maintaining Health Savings
Accounts                                           ―Medical Malpractice Liability Reform Act

―Providing Health Savings Accounts for State       ―Class Action Improvements Act
                                                   ―Supporting the Clear Skies Initiative
―Providing Health Savings Accounts for Tax
                                                   ―Urging/Supporting Tax Cuts and Repealing
―Medicaid Reform; Providing for and Supporting
                                                   ―Supporting ANWR‖ (Artic National Wildlife
Medicaid Waivers
―Supporting HIFA Waiver (Healthcare info for all
                                                   ―Supporting Offshore Drilling
―Supporting BRAC (Base Closure and
                                                   ―Supporting President's position on the Kyoto
Realignment Commission)
―Providing for Public Education on High-
                                                   ALEC instructed the alumnus to pursue in
Deductible Health Plans
                                                   Congress, specific model legislation and
―Urging/Supporting Federal Balanced Budget         initiatives developed by the other nine (9) state
Amendment                                          Task Forces that included corporate members:

―Urging Repeal/Abolishment/Amendment of            ALEC MODEL LEGISLATION AND
Federal Estate Tax                                 RESOLUTIONS ENCOURAGING
                                                   JEFFERSONIAN PRINCIPLES AT THE
―Supporting Personal Retirement Accounts           FEDERAL LEVEL

―Supporting Federal Enforcement of Immigration     ―Resolution on Congressional Mandates &
Laws                                               Defective-Product Liability Protection

―Exempting Health Savings Account Monies           ―Resolution Supporting Expansion of Foreign
from Creditors                                     Markets for America‘s Small Businesses

―Abolishing/Repealing Death Tax                    ―Resolution Urging Congress to Modernize
                                                   Social Security with Personal Retirement
―Support of Free Trade - Taiwan                    Accounts
―Support of Free Trade - CAFTA                     ―Resolution Opposing Federal Intervention in
                                                   Insurance Regulation
―Social Security Reform

© 2011 – Voter’s Legislative Transparency Project                                           Page 15
―Resolution Urging Congress Not to Amend or         ―Resolution Supporting the Private Ownership of
Repeal the McCarran-Ferguson Act                    Property

―Resolution in Support of the USA PATRIOT Act       ―Resolution on Environmental Laboratory
―Defense of a Free Market and Public Safety
Resolution                                          ―Resolution on Local Jurisdiction Consent of
                                                    National Monument Designation
―Individuals with Disabilities Education Act
Resolution                                          ―Federal TABOR Resolution (Taxpayer Bill of
‖ Resolution Calling for Reform in the FDA
                                                    ―Internet Taxation Resolution
―Resolution Concerning the Prohibition of
Imported Prescription Drugs                         ―Resolution in Favor of a Federal Flat Tax

―Resolution on Federal Health Insurance Reform      ―Resolution in Favor of a U.S. Constitutional
Legislation                                         Amendment on Judicial Taxation

―Resolution on Quality Managed Care in a            ―Resolution on State and Local Business Activity
Litigious Marketplace                               Taxes

―Resolution Supporting Private Market Initiatives   ―Resolution Opposing the United Nations Drive
for Children‘s Health Insurance                     for Global Taxes

―Resolution Urging Congress to Create Private       ―Resolution to Repeal the Federal Unified Gift
Financing of the Medicare Program                   and Estate Tax

―Reverse Mortgage Enabling Act                      ―Resolution Urging Congress to Aid State Tax
―Resolution in Support of the Healthy Forest
Initiative                                          ―Resolution Urging Congress to Reject
                                                    Authorization of the Streamlined Sales Tax
―Resolution on Reform of New Source Review          Project
                                                    ―Resolution Supporting Pro Consumer Public
―Resolution in Opposition of Carbon Dioxide         Policy for Voice, Video, and Data Services
Emission Standards
                                                    ―Resolution on United States Encryption Export
―Resolution Encouraging Development of              Restrictions
Liquefied Natural Gas
                                                    ―Resolution Opposing Government Intervention
―Resolution on Renewable Energy Resources in        in the Multichannel Video Programming
a Competitive Electricity Marketplace

© 2011 – Voter’s Legislative Transparency Project                                           Page 16
―Resolution on States‘ Rights; Vehicle Weight                  Welfare Reform Reauthorization
and Size Regulations
                                                        As if this weren‘t enough for the alumnus to
―Resolution on the Federal Highway Trust Fund           pursue at the Congressional level, ALEC came
                                                        up with a ―Liberty Agenda‖ for the alumni to also
―Resolution on Federal Trade Promotion                  advance:
                                                        AGENDA FOR LIBERTY
―Resolution on the Use of Transportation Taxes
                                                          LOWER TAXES & LIMITED GOVERNMENT
―Resolution on Unilateral Trade Sanctions
                                                               Tax and Expenditure Limitation Act
―Resolution to Repeal the Non-Transportation
                                                               Commission on Economy and
Federal Fuels Tax
                                                                Productivity in State Government Act
―Statement of Principles on Federally Mandated                 Truth in Spending Act
Blood Alcohol Level‖                                           Efficiency in Government Act
                                                               Sales and Use Tax Collection Protection
The foregoing represents a long wish list                       Act
advanced by corporate interests through ALEC                   State Internet Tax Freedom Act
at state levels and through the Federal Forum                  Healthcare Reform
Task Force directly into the U.S. Congress.                    Health Savings Account Act
                                                               Health Care Tax Relief and Equity Act
In addition to the foregoing legislative initiatives,
ALEC also instructs their alumnus on specific                  High-Risk Health Insurance Pool Model
Policy Issues they wanted pursued at the federal                Act
level – and provided them with the arguments to                Medicaid Consumer Directed Care Act
                                                        ENERGY SUSTAINABLILITY
                                                               Verifiable Science Act
       Federal Tax Relief & Reform                            Power Plant Siting Act
       Medicaid Reform                                        State Regulatory Responsibility Act
       Energy Sustainability                                  Conditioning the Regulation of Non-
       Access to Public Lands                                  Pollutant Emissions on Science
       Tort Reform - Asbestos                                 Electricity Transmission Principles
       Lawsuit Abuse Reduction Act (LARA)                     A Resolution Encouraging Development
       Free Trade                                              of Liquefied Natural Gas
       Commonsense Consumption Act                     EDUCATION REFORM
       School Choice, Individuals with
        Disabilities in Education Act (IDEA), and              Alternate Certification Act
        No Child Left Behind Act (NCLB)                        Charter Schools Act

© 2011 – Voter’s Legislative Transparency Project                                              Page 17
       Family Education Tax Credit Act               Andrew W. Schauder
       Parental Choice Scholarship Act               (202)466-3800 x 287
       Special Needs Scholarship Act
       Virtual Schools Act                           CIVIL JUSTICE
DISORDER IN THE COURT                                 Kristin Armshaw
                                                      Task Force Director
       Private Attorney Retention Sunshine Act       (202)466-3800 x 265
       Appeal Bond Waiver Act              
       Class Action Improvements Act
                                                      Victor Schwartz
       Legal Consumers Bill of Rights
                                                      Task Force Private Sector
       Jury Patriotism Act                           Chair & Advisor
       Commonsense Consumption Act                   Shook, Hardy & Bacon
       Intrastate Venue Shopping Reform Act
       Commonsense Scientific and Technical          Barry Bauman
                                                      Task Force Advisor
        Evidence Act
                                                      Lawyers for Civil Justice
       Constitutional Limits on Punitive
        Damages Act                                   Bob Williams
       Asbestos and Silica Claims Priorities Act     Task Force Advisor
                                                      Evergreen Freedom Foundation
If the alumni had difficulty pursuing the foregoing
initiatives and agenda, ALEC provided them with       CRIMINAL JUSTICE
contact information for ―Policy Experts‖ who also
provide expert testimony to the U.S. Congress.
                                                      Trevor Martin, Task Force Director
                                                      (202) 466-3800 x 253
Here is a list of the ALEC personnel and    
affiliates they were instructed to contact for more
information or assistance (Bold indicates             Geoffrey Segal
affiliates of Koch):                                  Task Force Advisor
                                                      Reason Public Policy Institute
                                                      COMMERCE, INSURANCE,& ECONOMIC
Duane Parde                                           DEVELOPMENT
(202) 466-3800 x 241                                       Trevor Martin, Task Force Director
                                                      (202) 466-3800 x 253

Sandy Liddy Bourne                                    Adrian Moore
(202) 466-3800 x 245                                  Task Force Advisor                                      Reason Public Policy Institute


© 2011 – Voter’s Legislative Transparency Project                                          Page 18
Lori Drummer, Task Force Director              HEALTH & HUMAN SERVICES
(202)466-3800 x 251                              Christie Raniszewski Herrera,
                                               Task Force Director
Robert Enlow                                   (202)466-3800 x 202
Task Force Private Sector            
Chair & Advisor
                                               Sue Blevins,
Milton and Rose D. Friedman Foundation
                                               Task Force Advisor
                                               Institute for Health Freedom
COUNCIL                                        Bob Moffit,
                                               Task Force Advisor
Rep. Scott Jensen (WI),                        The Heritage Foundation
Task Force Advisor
Alliance for School Choice                     Richard Teske,
                                               Task Force Advisor
Dr. Richard Vedder,
Task Force Advisor                             TAX & FISCAL POLICY
Ohio University
                                               Michael Keegan,
TRADE & TRANSPORTATION                         Task Force Director
                                               (202)466-3800 x 266
Trevor Martin,                       
Task Force Director
(202) 466-3800 x 253                           Chris Atkins,                               Task Force Advisor
                                               Tax Foundation
Robert Poole,
Task Force Advisor                             Dr. Richard Vedder,
Reason Public Policy Institute                 Task Force Advisor
                                               Ohio University
                                               TELECOMMUNICATIONS & INFORMATION
Daniel R. Simmons,
Task Force Director
(202)466-3800 x 229
                                               Michael Keegan,
                                               Task Force Director
                                               (202)466-3800 x 266
Sallie Baliunas,
Task Force Advisor
Tech Central Station
                                               Adam Thierer,
                                               Task Force Advisor
Marlo Lewis,
                                               Progress & Freedom Foundation
Task Force Advisor
Competitive Enterprise Institute

© 2011 – Voter’s Legislative Transparency Project                              Page 19
Jim Glassman,                                      not been successfully implemented at the
Task Force Advisor                                 federal level are still being pursued by ALEC‘s
American Enterprise Institute                      alumnus.
Kent Lassman,                                      These alumni were in effect acting on behalf of
Task Force Advisor                                 ALEC in these pursuits. Though they were not
Progress & Freedom Foundation
                                                   declared as ―card-carrying‖ ALEC members,
HOMELAND SECURITY WORKING GROUP                    they were just that. ALEC‘s own by-laws and
                                                   charter prohibited involvement at the federal
Sandy Liddy Bourne,                                level by members – as do the Ethics Rules of
Working Group Advisor                              both houses, yet through the Federal Forum they
Director of Legislation                            have intentionally ignored all the rules and
and Policy                                         provisions against such involvement.
(202)466-3800 x 245
                                                   A matter that exacerbates these prohibited
It was not simply the professional personnel at    activities is the ability to carry the agenda and
ALEC the alumni were to contact for advice,        initiatives    of   outside,     non-governmental
guidance or help with pursuing the issues at the   organizations right into the halls of Congress.
federal level. They were instructed to contact     Most of these are founded, funded or both by
individuals with the Progress and Freedom          Charles and David Koch or their numerous
Foundation, American Enterprise Institute, Tax     ―foundations‖:
Foundation, the Heritage Foundation, Reason
                                                          Charles G. Koch Charitable Foundation
Foundation and Reason Public Policy Institute,
                                                          David H. Koch Charitable Foundation
Competitive Enterprise Institute, Milton and              Fred C. and Mary R. Koch Foundation
Rose D. Friedman Foundation, Alliance for                 Claude R. Lambe Charitable Foundation
School Choice and of course Victor Schwartz               Koch Cultural Trust
head of the lobbyist group at Shook Hardy and
Bacon Obviously all of these named think tanks,    Which are all held under the Koch Family
foundations and institutes are conservative.       Foundations .
                                                   The foundations, institutes and individuals the
More importantly they all receive funding from
                                                   alumni are referred to are all known to be
Koch‘s family foundations and his moneyed
                                                   associated with the Koch brothers and their ultra
affiliate foundations – and, Koch provides paid
                                                   conservative ideology and pursuits. Below is a
interns to all of those just named entities, and
                                                   list of those organizations, institutes and think
dozens more (as shown elsewhere in this
                                                   tanks funded with Koch and their affiliate‘s
Looking at the issues, initiatives, agenda,
                                                          Alex C Walker Educational & Charitable
policies and pursuits provided to the alumnus              Foundation
through the Federal Forum Task Force, our                 American Council of Trustees and
research reveals that most of these which have             Alumni

© 2011 – Voter’s Legislative Transparency Project                                         Page 20
      American Legislative Exchange Council           Federalist Society
      Atlas Economic Research Foundation              Free to Choose Network
      Ajax Foundation                                 Galen Institute
      Bill of Rights Institute                        George C. Marshall Institute
      Center for Excellence in Education              George Washington University
      Foundation for Research on Economics             Regulatory Studies Center
       and Environment (FREE)                          Hudson Institute
      Fund for American Studies                       Independent Women's Forum
      Heritage Foundation                             John Locke Foundation
      Institute for Energy Research                   John William Pope Center for Higher
      Institute for Humane Studies (Geo.               Education
       Mason University)                               Mackinac Center for Public Policy
      Mercatus Center at George Mason                 Network For Teaching Entrepreneurship
       University                                       (pg. 9)
      National Center for Policy Analysis             Philanthropy Roundtable
      National Federation of Independent              State Policy Network
       Business Legal Foundation                       Victims of Communism Memorial
      National Taxpayers Union Foundation              Foundation
      Reason Foundation                               Washington Legal Foundation
      Students for Liberty                            Youth Entrepreneurs Kansas
      Bluegrass Institute for Public Policy
       Solutions                               Much of the legislation and resolutions the
      Foundation for Economic Education       alumni were instructed to pursue are/were
      Foundation for Individual Rights in     financially beneficial to not only the Koch
       Education                               brothers (personally), but to ALEC‘s corporate
      Illinois Policy Institute               membership;      ExxonMobil,     AT&T,      Koch
      Jack Miller Center                      Industries, PhRMA, GlaxoSmithKline, Johnson
      John W. Pope Civitas Institute
                                               and Johnson, their Insurance company
      John William Pope Foundation
                                               members, etc. Not only is Koch‘s interests and
      Lucy Burns Institute
      Sam Adams Alliance                      that of the corporate members assisted through
      South Carolina Policy Council           this Federal Forum, but also other Conservative
      Texas Public Policy Foundation          ―foundations‖ which help fund the foregoing list:
      Acton Institute
      American Enterprise Institute
      American Spectator Foundation
      Americans for Tax Reform Foundation
      Boys and Girls Club of South Central
      Cato Institute
      Center for College Affordability and
      Commonwealth Foundation
      Competitive Enterprise Institute

© 2011 – Voter’s Legislative Transparency Project                                     Page 21
      Lynde and Harry Bradley Foundation,             ExxonMobil Foundation,
      Scaife Foundations,                             GE Foundation,
      John M. Olin Foundation, Inc.,
                                               The importance of these affiliated foundations,
      M.J. Murdock Charitable Trust,          institutes and organizations which fund and
      Castle Rock Foundation,                 enable ALEC is shown in the subsequent
      JM Foundation,                          sections.
      Richard and Helen DeVos Foundation,

© 2011 – Voter’s Legislative Transparency Project                                      Page 22
           Federal Laws Enacted by ALEC‘s Federal Forum Task Force

Research we have completed identifies two (2)                 demonstrators to be jailed and in many cases
important pieces of federal legislation which                 sent to prison for their actions.
have been enacted since the Federal Forum
was created; The Animal Enterprise Terrorism                  Because this legislation sought to diminish
Act 5(AETA, S. 1926 and H.R.4239 – 2005). This                citizen‘s rights to protest and demonstrate under
legislation amends the Animal Enterprise                      the 1st Amendment, there was a lot of resistance
Protection Act of 1992.
                           The second piece of                to the proposed law. Sponsors issued fact
legislation is the Postal Accountability and                  sheets trying to assure fellow lawmakers and
Enhancement Act (H.R. 6407 - 2006).                           voters alike that the threats to 1st Amendment
                                                              rights were a ―myth‖ .
In each case ALEC model legislation was
proposed    in    both    Houses    by    ALEC                By the time this legislation advanced through
Congressional alumni and the House rules                      Congress, seven additional ALEC Alumni in the
manipulated to allow for passage and both were                house signed on as co-sponsors. The driving
subsequently signed into law by President Bush.               force behind AETA was the Animal Enterprise
                                                              Protection Coalition (AEPC) founded by the
In the AETA legislation, ALEC Alumni Senator                  National Association of Biomedical Researchers
James Inhofe introduced this legislation to                   (NABR). This AEPC was created specifically to
                                         27                                                       31
amend the existing law, in October 2005.    This              support ALEC's legislation by NABR.
federal legislation is based upon ALEC‘s 2003
Model Legislation titled Animal and Ecological                The AEPC Members included corporate
Terrorism Act (AETA)6.28 In the House the bill                pharmaceutical powerhouses like PhRMA,
was sponsored by Republican WI. Rep‘s Tom                     Pfizer, Wyeth, GlaxoSmithKline, and industry
Petri and James Sensenbrenner.                                groups like the Fur Commission and National
                                                              Cattlemen‘s Beef Association.    The coalition
The purpose of this legislation was to restrict               was put together by NABR and its members
activists from interfering with companies or                  specifically to advance this one piece of
research facilities using animals for experiments,            legislation and was disbanded once the
biomedical and pharmaceutical research. It                    legislation passed.
would provide stiff penalties for any activism in
support of animal rights and allow protesters and             Through several of these members, additional
                                                              ties to ALEC were discovered.          PhRMA
                                                              GlaxoSmithKline and Pfizer are long time
                                                              members of ALEC and currently sit on their
          For comprehensive study on AETA visit                                         33   Private Enterprise Board.     Also other ALEC
       1_53.pdf                                               corporate members including GSK, Pfizer,
         Due to our inquiries to ALEC in our research, all    Johnson and Johnson and Bayer are members
       reference to this model legislation has been                     34
       removed from ALEC‘s website within the past 30         of PhRMA further solidifying the connections.

© 2011 – Voter’s Legislative Transparency Project                                                    Page 23
AETA was advanced through the House and              legislation and it passed. The Senate led by
was placed on a ―Fast Track‖ (suspending the         Sen. Inhofe passed the legislation unanimously
House rules), meaning there was mutual support       and President Bush signed it into law within
from both parties. The time for discussion on the    days.
Bill would be limited and no amendments could
be attached to the legislation. Fast tracking also   Because of the way this was accomplished in
provides for an immediate vote following the         the House, Kucinich was the only member voting
conclusion of the discussion period and for          against it.
passage upon a favorable vote of a two thirds
                                                     In this manner five (5) out of the 435
majority of those members present at the time of
                                                     Representatives in the House passed this, the
the vote.
                                                     Congressional Record has no information on the
On Monday, November 13 it was announced              members present for the vote – or how each
matters on the suspension calendar would be          voted. The names of the members voting to
taken up that evening at 6:30 p.m. Instead, at       pass the bill – beyond Petri and Sensenbrenner
around 3:00 in the afternoon, Representative         are lost to history.
Phil Gingrey approached the House Clerk with a
message from Speaker Hastert.         The note
announced that Hastert had authorized Gingrey        The following year a similar event occurred
to serve as Speaker Pro Tempe and the House          involving the previously mentioned Postal
came to order under Gingrey's authority as the       Accountability and Enhancement Act (H.R. 6407
temporary Speaker. Rep. Sensenbrenner                - 2006). HR 6407 combined H.R. 22 and S. 662.
maneuvered all of the "fast tracked" legislation     However this legislation had a longer and more
scheduled for 6:30 PM to be heard in the middle      difficult road to passage.        This legislation
of the day, including the AETA bill.                 actually began in 1996.        The ―Point man‖
                                                     identified as being the Republican led voice
Speaker Hastert - an ALEC Alumni - assisted
                                                     behind HR 6407 has been identified as Rep.
Representative Phil Gingrey, - an ALEC Alumni -                             36
                                                     John McHugh (R NY) . McHugh is an ALEC
to circumvent the house schedule. Further                     37
                                                     Alumni and first introduced Postal Reform
Gingrey then served as the enabler to                                               38
                                                     legislation in 1996: H.R. 3717 and worked for
Sensenbrenner who arranged for 4 of the bill's
                                                     over ten years to bring this legislation to fruition
supporters to be present. At the time of the vote
                                             35      through passage of HR 6407 in December 2006.
there were only six representatives present.
                                                     From 2003 through passage of HR 6407 in
Rep. Dennis Kucinich was present and argued
                                                     2006, the Koch/ALEC CABAL worked diligently
against the legislation and tried to get the
                                                     publishing articles in favor of privatizing the
Speaker Pro-Tempe and Sensenbrenner to wait
until the scheduled time for the discussion to
vote on the Bill, to no avail. Within minutes        CATO‘s Economic Policy Analyst, Tad DeHaven
Gingrey called for a vote on AETA and of the six     wrote an article on behalf of the National
(6) members present, five (5) voted for the

© 2011 – Voter’s Legislative Transparency Project                                              Page 24
Taxpayers Union        for the Econ Journal          USPS operates parcel delivery
Watch;                                               services that compete with private
                                                     parcel services.”
     ―We could go on at length as to the
     potential benefits from privatization           ―For example, privatization of the
     of USPS and the creation of USPSI               USPS and repeal of its monopoly
     (U.S. Postal Service, Inc.)…‖ (citing           would bring major innovation to the
     Economists MICHAEL A. CREW                      mail industry, just as the 1980s
     AND PAUL R. KLEINDORFER).‖                      breakup of AT&T brought innovation
                                                     to the telecommunications
The NTU is a recipient of Koch funding as            industry…‖
reported by TPM, quoting Sourcewatch.
                                                     ―The federal government operates
Also in 2005 the NTU issued another ―memo‖ on        numerous business enterprises that
                                                     could be converted into publicly
the USPS: ―First-Class to Nowhere: Congress‘s
                                42                   traded corporations, including
Second-Rate Postal Reform Bill‖;                     USPS, Amtrak, and a number of
                                                     electricity utilities…The way ahead is
     ―USPS does not have to pay most                 to privatize the USPS and repeal the
     taxes and is exempt from most of                mail monopoly that it holds…‖
     the regulations that burden truly-
     commercial firms. Even so, these                ―…It is time to privatize the USPS
     businesses are able to operate more             and repeal the government
     efficiently and more profitably than            monopoly on mail.‖
     the Postal Service. USPS was               In the same year, the Reason Foundation filed a
     created at a time when no private
                                                similar document, titled ―Annual Privatization
     entity was willing or able to deliver                             44
     mail across a developing nation.           Report‖ that provides:
     Now that we have capable private
     organizations eager to do so, USPS              ―The federal government operates
     should be contracting in size and               numerous business enterprises that
     mission. Legislation that encourages            could be converted into publicly
                                                     traded corporations, including the
     a government monopoly to instead
                                                     USPS, Amtrak, and a number of
     expand into new and competitive                 electricity utilities…Moving forward
     markets is misguided, to say the                calls for privatizing USPS and
     least.”                                         repealing the first-class mail
                                                     monopoly that it currently holds…the
Simultaneously the CATO Institute published          USPS suffers from a high wage
―Downsizing the Federal Government‖ by Chris         premium (it pays an estimated 21.2
Edwards . In this document Edwards is again          to 35.7 percent more than would a
promoting privatization of USPS;                     comparable private sector employer,
                                                     which represents 12 to 20 percent of
     ―In other industries, the federal               total costs) and low productivity
     government needlessly duplicates                increases (only 9.2 percent from
     services that are already available in          1970 to 1999).‖
     the private sector. For example, the

© 2011 – Voter’s Legislative Transparency Project                                         Page 25
Heritage, Cato, NTU and Reason claims have                      committees, who in turn donated
one theme in common; the USPS is a                              money and office space to Mrs.
―monopoly‖, run by the U.S. Government. With                    Davis; $55,616 from the National
billions in annual sales, this is seen as a ripe
                                                                Republican Congressional
                                                                Committee when her husband was
target for profiteers once they break the barriers              Chair, $5,000 from the Republican
to privatization (like their pursuit of the $2 trillion         Main Stream Partnership, and
in equity in senior homes through ALEC‘s                        $5,000 from Tom Delay's ARMPAC.
Reverse Mortgage Act).
                                                          Tom Davis established and used ALEC and the
To privatize they had to first make it appear the         Cabal to advance his career in politics and
agency was floundering, unable to generate                personal life – after he resigned from the House
revenue and in general was ―bad‖ for the                  in 2008. Together Tom Davis and his wife was
American consumer. Once they accomplished                 quite a pair in politics and business;
that through rhetoric, published reports by ―on
                                                                ―Davis's second wife, Jeannemarie
the payroll Economists‖, they had to in effect                  Devolites-Davis, was one of the first
make the USPS actually start losing money.                      hires (as a part-time consultant) for
They decided to do this by forcing the agency to                ICG, a firm that assists businesses
begin to ―fund forward‖ pension benefits.                       in obtaining government contracts.
                                                                Their financial relationship, along
Sponsor of HR 6407 legislation was Virginia‘s                   with financial ties that benefit family
Representative, Tom Davis (R-VA 11th)
                                                    .           members of 64 of the 435 voting
Davis‘ family and political history is closely tied
                                                                members of Congress, was
                                                                highlighted in the June 2007 ethics
to ALEC/Koch. His wife, Jeannemarie Devolites                   report, "Family Affair" by the
Davis was a Virginia Politician serving as a state              Citizens for Responsibility and
Senator and a member of ALEC. Her political                     Ethics in Washington.
campaigns (3) for Virginia‘s Senate was funded
                                                          At ICG, Ms. Davis is now a Partner and last year
by husband Tom Davis and various Republican
                                                          was appointed by Virginia Governor McDonnell
PACs including the former Majority Leader and                                                            48
                                                  46      as Virginia‘s Liaison Office (Washington D.C.) .
ALEC Alumni Tom Delay through his ARMPAC:
                                                          She is instrumental in coordinating conferences
      ―A large percentage of her financial                that bring together key government and industry
      support is contributed from her                     executives for substantive discussions of
      husband, Tom Davis, and the                         government management and information
      Republican organizations he directs.                sharing, and consulting with government
      Before Virginia's 2007 election                     contracting clients in both the federal and state
      cycle, his PACS had donated more                    sectors. Additionally, she is a featured speaker
      than $172,000 to her campaign. In
                                                          on subjects of intergovernmental relations; state
      addition, she has received
      contributions from National                         policy and political processes; and management
      Republican organizations directed                   of technology and health enterprise, both
      by Mr. Davis including $300,000 to                  nationally and internationally.
      the Fairfax and Prince William's
      counties Republican Party

© 2011 – Voter’s Legislative Transparency Project                                                   Page 26
After leaving office Tom Davis joined Deloitte    from; UPS ($22,168), Verizon, ($15,221), AT&T
Consulting in their Washington, D.C. office       ($12,000), GlaxoSmithKline ($11,999) and
taking his place beside ALEC alumni, Tom          MBNA Corporation ($85,250) .       Tom Davis‘
Ridge . Davis currently serves as President and   reported contributions on Open Secrets also
CEO of the Republican Main Street Partnership     reflect receipt of funding by some of the same
and also started teaching a class at George       corporate benefactors.
Mason University (another frequent recipient of
millions in Koch funding ), teaching "Southern    MBNA Corp is the nation‘s top credit card
Politics" in the 2008 Fall Semester. GMU is       company and one of the world‘s biggest finance
recipient of large Koch contributions:            companies. The company was also the biggest
                                                  campaign contributor to the Bush-Cheney ticket
     ―Since 1985, George Mason                    during the 2000 election cycle and has been one
     University (GMU), and its                    of the Republican Party‘s most generous
     associated institutes and centers,           contributors over the last decade. For the last
     has received more funding from the           five years, MBNA has been pressing lawmakers
     Koch Family Charitable Foundations
     than any other organization—a total          to pass legislation that would make it harder for
     of $29,604,354. The George Mason             individuals to file bankruptcy—a bill that, if
     University Foundation has received           approved, stands to earn MBNA at least $100
     the most funding, $20,297,143,               million in additional revenues each year,
     while the Institute for Humane               according to press reports. The bank also has
     Studies [Koch‘s Intern program] has          lobbied against legislation to protect consumer
     been directly given $3,111,457, the
                                                  privacy rights and was a leading proponent of
     Mercatus Center $1,442,000, and                                     55
     George Mason University itself has           banking deregulation . All of the foregoing
     received $4,753,754.                         pursuits by MBNA are key ALEC initiatives.
     ―In addition to financial ties, Koch         In 2008 Davis and Ridge‘s Deloitte Consulting,
     also has personnel involved with the         along with Pfizer, PricewaterhouseCoopers and
     university. Richard Fink51, the vice
     president of Koch Industries, Inc.,          Time Warner joined the list of ALEC related
     and the former president of the              contributors to Collins .
     Charles G. Koch Foundation and the
     Claude R. Lambe Foundation,                  The purpose of HR 6407 and McHugh‘s 1996:
     serves on the board of directors of          H.R. 3717 was to provide a perceived need for
     the George Mason University                  privatizing the USPS. They set in motion events
     Foundation and the Mercatus                  that would eventually disable the Post Office‘s
     Center.52‖                                   abilities to function. HR 6407 was the enabler in
Senate co-Sponsor of this legislation impacting   this scheme as it forced the USPS to remove
the USPS was Susan Collins (R ME) who also        more than $5 billion per year from its revenue
has ties to Koch money and is actively            stream and place that money into a retirement
supporting Koch‘s EPA deregulation and            account (RHB) it had no access to. This forced
environmental denial of climate change . In       the USPS to reduce efforts of maintaining
2006 Collins received $146,638 in donations       equipment or expansion and since 2006 has

© 2011 – Voter’s Legislative Transparency Project                                        Page 27
reduced their ability to compete against the two              workers. USPS covers 79% of its
primary private sector competing companies                    employees' health benefits,
handling mail and parcel service‘s – FedEx and                compared to the 72% typical for
United Parcel Service (UPS). UPS and FedEx
                                                              most federal workers.‖
are both long time ALEC members and UPS                 These figures indicate that health benefits and
currently holds a seat on the ALEC Private              costs represent a substantial outlay for the
Enterprise Board (see Chart 1 below from                USPS. At the same time this is occurring, ALEC
ALEC‘s 2011 program on sponsorship) .             It    and their alumni are fighting intensely at state
also lends the appearance that the USPS is              and Congressional levels to resist any attempts
rapidly approaching the brink of bankruptcy –           to overhaul healthcare and the exorbitant costs
through the diversion of billions of dollars to the     associated with that – or address the huge profits
RHB.                                                    being made through current medical and
                                                        insurance procedures. PhRMA, pharmaceutical
For more than 7 years now the CABAL members             companies and insurance companies in the
have hinted at and made changes to make                 healthcare industry continue to derive huge
privatization of the U.S. Mail system inevitable.       profits under the current system. (This also
In May 2011 Business Insider published the              explains the resistance exhibited by Republican
article; ―11 Things You Should Know About The           ALEC alumni – led by Speaker Boehner and
U.S. Postal Service Before It Goes Bankrupt.‖           Majority Leader Cantor – to repeal the Patient
In this article the author indicates privatization of   Affordable Healthcare Act that is pursued by
the USPS is in order and cites other international      ALEC nationwide as of this writing).
mail services as an example of how such
privatization ―works‖ in countries like Japan,          One of ALEC‘s ―Model Legislative‖ bills is the
Germany and Sweden. The article claims:                 ―Unfunded Pension Liabilities Accounting Act ‖
                                                        and ties in nicely with the provisions included in
      ―Despite the agency's economic                    the Postal Accountability and Enhancement Act
      woes, the 250,000-member                          as well as current and ongoing attacks upon
      American Postal Workers Union
                                                        public sector government workers; teachers,
      negotiated a cushy labor deal with
      the USPS in March. The four-and-a-                firefighters, police and the union groups they
      half-year agreement extends the no-               belong to.
      layoff provision and provides a 3.5%
      raise over the period of the contract,            Below is a screen capture of ALEC‘s 2011
      as well as seven uncapped cost-of-                Annual Meeting in New Orleans, showing the
      living increases. A USPS                          participation of FedEx and UPS:
      spokeswoman told Businessweek
      the agency agreed to the terms
      because it feared an arbitrator might
      be even more deferential to the
      ―In general, postal service
      employees enjoy more expensive
      benefits than most public-sector

© 2011 – Voter’s Legislative Transparency Project                                               Page 28
The impact upon the USPS from this legislation       From 2007 to 2008 that same common stock
has resulted in a devastating financial disruption   holder investment increased another 15%.       So
– and at the same time has greatly increased the     in just the first two years following the USPS
stock prices and profits of both UPS and FedEx.      requirement to set aside billions in pension pre-
                                                     funding, investors with FedEx stock saw a 25%
Since 2006 when the USPS began setting aside         increase in the value of their investment(s).
$5.6 billion per year for prefunding the pension
account as mandated by Collins‘ and Davis‘ co-       Looking at Yahoo Finance we find that currently
sponsored legislation, both UPS and FedEx            FedEx has ―holdings‖ in several multinational
have experienced considerable growth along           and huge US corporations.         These stock
with increases in income and stock prices. This      holdings     include;  Coca-Cola,    Reynolds
amount of money taken from sales and set aside       American, ConocoPhillips, General Electric, First
for pensions denies it to the USPS to reinvest,      Energy Corporation and Chevron.        Besides
update or upgrade equipment – and eliminates         being huge companies, what do all of those
their capacity to continue to compete against        above have in commonality? They‘re members,
their chief private corporate competitors – UPS      benefactors and/or sponsors of ALEC. Just
and FedEx.                                           taking FedEx as an example one can quickly
                                                     see how all of ALEC‘s members are profiting off
In 2006 UPS‘ gross income was given as $47.55        of each other through investments that are
billion and by the end of last year that had risen   enhanced by the pro-corporate legislation put
to $49.55 billion.    FedEx figures for the years    out by them through ALEC, especially at the
2007 – 2011 show that in that period their gross     federal level.
revenue increased from $35.21 billion to $ 39.3
billion.     Looking at these figures and at the     As this profiting continues – and increases as the
USPS mandated prefunding requirements, the           years roll by - harm upon the USPS continues to
figures show that UPS and FedEx have                 grow and drive them further toward relinquishing
cumulatively increased their gross income by $6      their hold upon first class and parcel mailings,
billion, an amount comparable to the amounts of      more and more of their services being absorbed
annual pension payments the USPS has been            or taken over by UPS and FedEx.
forced to set aside without access to.
                                                     Today UPS and FedEx collection containers are
Figures show the change in common stock              found near the front doors of most USPS
holder investment for FedEx from 2006 to 2007        community facilities. This allows USPS‘ primary
(the first year the USPS was required to fund        competitors to be situated on their property,
forward the pension account) increased by            allowing an ―option‖ of package and mailing to
10%.                                                 postal consumers.

© 2011 – Voter’s Legislative Transparency Project                                            Page 29
Here is a graph showing USPS financials before and after the legislation was passed in 2006:

Though ALEC has been able to introduce and          and procedures used by their alumni. Both of
pass other important legislation at the federal     these laws were implemented after the creation
level (truth in sentencing, mandatory minimum       of the Tenth Federal Forum Task Force and
drug and gun laws, 1984 Criminal Justice            demonstrate the influence and abilities they
Reform Act, tax rate laws, etc.), the USPS and      have through the alumni.
AETA legislation stands out as being two of their
initiatives which adequately reflect the manner

© 2011 – Voter’s Legislative Transparency Project                                         Page 30
                 ―Influencing and Corrupting the Federal Judiciary‖

In conjunction with ALEC‘s involvement of             • Northwestern Law Judicial
advancing influence upon our Legislative Branch       Education Program (funded by
of government, ALEC and their network have            many key ALEC members, including
participated in other attacks upon the Judiciary
branch. These efforts consist of free trips to        • Liberty Fund69 providing judicial
luxurious resorts that are paid for by the            conferences and seminars to/for
foundations, corporations and others involved         Judges.
with ALEC. During the trips judges attend daily       • Federalist Society70 (Koch
seminars provided by purported scientists,            funded71 $1,437,200 through 2006)
corporate executives and others advancing a           • Aspen Institute (Koch funded72
pro-corporate,      free-market     conservative      $1,115,000 through 2006 with David
ideology. The seminars are designed to impart         Koch on the BOD73).
to the attending judiciary the corporate or           • University of Kansas, Law and
business points of view on critical issues            Organizational Economics Center
involving environment, economics, tort reform,        (LOEC) begun in 1995 by Henry
EPA and takings law (eminent domain).                 Butler74 with a $1,000,000 grant
                                                      from the Fred and Mary Koch
We found several universities and private, non-       Foundation75. 7
profit organizations participating in these efforts   • International Judicial Academy
at both the state and federal level. All but one      which provides seminars for judges
are provided by conservative organizations,           on the International level76. Funders
foundations or schools:                               of the IJA have included; JEHT
                                                      Foundation and Foundation to
      • George Mason University (Law                  Promote Open Society. JEHT
                                                      Foundation ceased to operate in
      and Economics Center - LEC)65
                                                      2009 due to the Madoff ponzi8
      (Recipient of Koch funding totaling
                                                      scheme where their money was
      $20,297,143 from 1986-200666),
                                                      invested. Foundation to Promote
      Earhart Foundation, JM Olin
                                                      Open Society gets some of their
                                                      principal funding from George
      • Foundation for Research on                    Soros77. Much of their contributions
      Economics and Environment
      (FREE). Funded by ExxonMobil,                    7
                                                         UK‘s LOEC now has A ―Center for Excellence in
      GE Foundation, Koch Family                       Advocacy‖ founded in 2008 with generous support
      Foundation67 ($1,305,500 through                 from Shook, Hardy and Bacon. LOEC Faculty has
      2006), JM Olin Foundation, Earhart               included Mark Huang of Shook, Hardy and Bacon.
      Foundation and Castle Rock
      Foundation (Coors). ($65,000 in
      2009) and the Claude Lambe             
      Foundation.                                      ation

© 2011 – Voter’s Legislative Transparency Project                                           Page 31
      and donations received – along with            evolving legal issues and cases.            Many
      their expenditures are to/from other           physicians attend such seminars to stay in tune
      countries and include non-Soros‘               with evolving medical treatments, diagnosis‘ and
      funding78.                                     pharmaceuticals, so some perceive that such a
There are other organizations providing judicial     training program for judges is normal. They are
―training‖ for state and federal judges, but these   unaware of the intentional attempt to ―bias‖ our
seven are those with ongoing regularly               judiciary in favor of pro-corporate decision
scheduled seminars and trips. Some completely        making. The list of those funding these junkets
reimburse judges for travel, housing and food        and leading the accompanying seminars refutes
while others reimburse to a set amount (such as      the assertion that these extracurricular activities
LOEC that reimbursed state judges up to              are unbiased and not centered around
$500.00 cap for travel).                             advancing a pro-corporate agenda.

The funding for six of the seven providing such      For instance, the funders listed by George
judicial trips are funded with money from one or     Mason University include most of ALEC‘s for
more of the Koch controlled family foundations.      profit corporate members, and the non-profits
In addition many of the foundations listed on        that fund ALEC – and most have ties to the Koch
page 5 also fund these trips and seminars for        and related foundations previously mentioned.
judges; John M. Olin Foundation, Inc., M.J.          (Those in bold are known ALEC/Koch
Murdock Charitable Trust, Castle Rock                benefactors, affiliates or corporate members).
Foundation and the Lynde and Harry Bradley           These funders are listed below:
A sampling of topics presented in the seminars
to these judges – state and federal – include;       Abbott Laboratories
environment, takings laws (imminent domain),         Ackerman, Hon. Harold
economics, tort reform, juror selection and jury     Adams, William H.
decision making, The presentations are made by       Aequus Institute
                                                     Agee, Hon. Steven
speakers from various colleges, universities and     Amon, Hon. Carol
of greater importance from corporate CEO‘s and       Andrias, Hon. Richard T.
executives representing Shell Oil and other          Armstrong Foundation
major corporations. In addition many of the          AT&T
presentations are made by those representing;        Atlas Economic Research Foundation
Heritage Foundation, American Enterprise             Barre Seid Foundation
                                                     Batchelder III, Hon. William G.
Institute, National Center for Policy Analysis,
                                                     Batchelder, Hon. Alice M.
George Mason University, Brookings Institute         Beghe, Hon. Renato
and several other conservative entities.             Berrigan, Hon. Helen G.
                                                     Bowie, Hon. Peter
For some this kind of judicial education may         BP America, Inc.
seem to be an ongoing and natural way of             Brister, Hon. Scott
keeping our judges abreast of current and            Brown, Hon. Jerry

© 2011 – Voter’s Legislative Transparency Project                                             Page 32
Brown, Hon. Joe B.                             Gillmor, Hon. Helen
Browning, Hon. Edwin                           Goldenhersh, Hon. Richard P.
Brunswick Corporation                          Goodrich Foundation
Buettner, Hon. Kenneth L.                      Graves, Hon. William J.
Bush, Hon. Donald                              Greaney, Hon. John
Caddel, Hon. Jack                              Griesa, Hon. Thomas
Camp, Hon. Jack                                Griffith, Hon. Sam
Carman, Hon. Gregory W.                        Grometer, Hon. Peter
Castagna, Hon. Bill                            Henry, Hon. Robert H.
Castle Rock Foundation                         Holmes, Hon. Mark
Cathell, Hon. Dale R.                          Hughes, Hon. Lynn N.
Charles G. Koch Charitable Foundation          Hunter, Hon. Robert
CIGNA Corporation                              Jackson, Hon. Barbara
Cinader, Arthur                                John M. Olin Foundation
Coca-Cola Company                              John William Pope Foundation
Collier, Hon. Lacey A.                         Johnson & Johnson
Commonwealth of VA Tax Donations               Johnson, Hon. Cheryl A.
Cortopassi Institute                           Jones, Hon. Edith H.
Cowen, Hon. Robert E.                          Jones, Hon. Robert C.
Curtin, Hon. John T.                           Keller, Hon. Sharon F.
David Stone Foundation                         Kinard Jr., Hon. Ernest J.
Davis, Hon. Eugene                             King, Hon. Warren R.
Dawson, Hon. Robert T.                         Klein, Hon. Christopher M.
DeMoss Jr., Hon. Harold R.                     Kocoras, Hon. Charles P.
DeVasto, Hon. Diane                            Levy, Robert A.
Doctors Group                                  Lilly Endowment, Inc.
Donors Trust                                   Lynde and Harry Bradley Foundation
Dow Chemical Company                           Magnuson, Hon. Paul A.
Doyle, Hon. Robert                             Manning, Hon. Blanche M.
Duplantier, Hon. Adrien                        Muris, Hon. Timothy
Duplantier, Sally                              Murphy, Hon. Michael
Earhart Foundation                             Murphy, Hon. William
Edenfield, Hon. B. Avant                       Naugle, Hon. David N.
Edmonds, Hon. William L.                       Nevas, Hon. Alan H.
Eginton, Hon. Warren W.                        Newman, Hon. Pauline
Eisele, Hon. G. Thomas                         Nicholas Martini Foundation
Exxon Mobil Corporation                        Niskanen, William
Fallon, Hon. Eldon                             Nowrasteh, Cyrus
FedEx Corporation                              O‘Connor, Hon. Eileen
Feldman, Hon. Joel M.                          O‘Rourke, Hon. Terry B.
Foster, Hon. Kennard P.                        Oblon, Spivak, McClelland, Maier & Neustadt
Friedlander, Hon. Ezra H.                      (Koch Ind. Patent Atty)
Gadola, Hon. Paul V.                           Ohrstrom, Gerry
Galway, Hon. Richard E.                        Orfinger, Hon. Richard
General Motors Corporation                     Parker Jr., Hon. Barrington D.
Gillette Company                               Pepe, Hon. Steven D.

© 2011 – Voter’s Legislative Transparency Project                                   Page 33
Pepsico Inc.                                   Thomas, Hon. Patricia
Pesce, Hon. Michael L.                         Thornbrugh, Hon. P. Thomas
PetroMina, LLC                                 U.S. Chamber of Commerce
Pfizer, Inc.                                   Unilever United States, Inc.
Pleicones, Hon. Costa M.                       Verizon Communications
Property and Casualty Ins. Ass.                Voorhees, Hon. Richard
Rafeedie, Hon. Edward                          Wade, Hon. Gary
Raggi, Hon. Reena                              Walter, Hon. Donald
Ramirez, Hon. Juan                             Wedemeyer, Jr., Hon. Ted E.
Randall, Hon. R.A.                             Weinstein, Hon. Jack B.
                        93                                                   97
Randolph Foundation                            William E. Simon Foundation
Rapp, Hon. Keith                               Williams, Hon. Stephen F.
Real, Hon. M.L.                                Wolle, Hon. Charles R.
Restani, Hon. Jane A.                          Worthen, Hon. James T.
Roe Foundation                                 Young & Franklin, Inc.
Rosen, Hon. Gerry E.                           Young Jr., Hon. Robert P.
Ross, Hon. Herb                                Zoss, Hon. Paul A.
Samuel Roberts Noble Foundation, Inc.          Abbott Laboratories
Sanderson, Hon. William                        Ackerman, Hon John D.
Sarah Jane Humphreys Foundation, Inc.          Ahart, Hon. Alan M
Sarah Scaife Foundation, Inc.                  Biggers, Jr., Hon. Neal B.
Sawyer, Hon. David                             Buckley, Hon John T.
Scott, Hal                                     Corrigan, Hon. Maura D.
Searle Freedom Trust                           Goolsby, Jr., Hon. C. Tolbert
Serna, Hon. Patricio                           J.P. Humphreys Foundation
Sharp Foundation                               Jefferson, Hon. Wallace B.
Sharp, Hon. Allen                              Joplin, Hon. Larry E.
Shelby Cullom Davis Foundation                 Jubelirer, Hon. Renee Cohn
Shell Oil Company                              Kern III, Hon. John W.
Sills, Hon. David G.                           Kornmann, Hon. Charles B.
Simon, Hon. Paul J.                            Leavitt, Hon. Mary Hannah
Slater, Hon. Kent                              McAnany, Hon. Patrick D.
Smith, Hon. Leslie C.                          McCall, Hon. Terry
Smith, Hon. Loren A.                           Nardelli, Hon. Eugene
Sonderby, Hon. Susan                           Orme, Hon. Gregory K.
Stafford Jr., Hon. William H.                  Raker, Hon. Irma S.
State Farm Insurance Companies                 Riggs, Hon. R. William
Steeh, Hon. George Caram                       Rocco, Hon. Kenneth A.
Stilwell, Hon. Samuel                          Spolzino, Hon. Robert A.
Stuart, Hon. Jacqueline L.                     Wake, Hon. Neil V.
Suarez, Hon. Lucindo
Sunmark Foundation
                      96                       Similarly, take a look at those identified as
Sutin, Hon. Jonathan                           funding the junkets and seminars of
Talbot, Hon. Michael J.                        Northwestern      University‘s   Law  Judicial
Taylor, Hon. Clifford W.                       Education Program. Again, those in bold are
Thibodeaux, Hon. Ulysses Gene                  known affiliates of Koch and/or ALEC:

© 2011 – Voter’s Legislative Transparency Project                                   Page 34
FUNDERS:                                                 The Honorable James E. Lockemy
                                                         The Honorable James T. Worthen
American Petroleum Institute                             The Honorable Kenneth F. Crow
AT&T Inc.                                                The Honorable Lewis Nixon and Evon Grant-
Charles G. Koch Charitable Foundation                    Nixon
Civil Justice Reform Group                               The Honorable Loren A. and Catherine Y. Smith
Dr. and Mrs. Henry N. Butler98 &99                       The Honorable Maria Korvick
Ewing Marion Kauffman Foundation100                      The Honorable Mark F. and Joann Aceto
Exxon Mobil Corporation                                  The Honorable Michael R. and Paula Weatherby
GlaxoSmithKline                                          The Honorable Paul Mitrovich
LyondellBasell Industries9                               The Honorable Ralph C. Hofer
McDonald's Corporation101                                The Honorable Rex Heeseman
Microsoft Corporation102                                 The Honorable Robert V. Greco
Johnson & Johnson                                        The Honorable Ross H. Hicks
Koch Industries                                          The Honorable Steven R. Ohmer
Pfizer Inc.                                              The Honorable Tennant M. Smallwood
Searle Freedom Trust
                                                         Many of these benefactors contributing to
Shell Oil Company
                                                         funding junkets and seminars for judges are
State Farm Mutual Automobile Insurance
                                                         affiliated with Koch in some manner and have
                                                         been members or affiliates of ALEC – with the
The Bradley Foundation
                                                         exception of the judges, who have participated in
The Dow Chemical Company
                                                         many of the seminars by those organizations
The Lynde and Harry Bradley Foundation
                                                         providing them. It is not a case of some of the
U.S. Chamber of Commerce
                                                         contributors to this program being conservative -
Additional funders of Northwestern University            all of them are, and they share close
seminar program include this list of U.S.                associations on other initiatives not related to
Judges :                                                 judicial ―education‖.

The Honorable Albert Diaz
The Honorable Albert J. Matricciani, Jr.
The Honorable Carlos Villa
The Honorable Donald F. Parsons, Jr.
The Honorable Gerald Rosenberg
The Honorable Harris Hartz
The Honorable J. Kenneth Mangum
The Honorable J. Steven Schuster
The Honorable James E. Kuhn

           Affiliated with Koch‘s European corporation

© 2011 – Voter’s Legislative Transparency Project                                               Page 35

Here is a picture of Henry Butler from UK‘s Law
and Organizational Economics Center (LOEC)
and Executive from the Searle Center speaking
at an ALEC meeting:

                                                  Below a picture of Judges sitting in the audience
                                                  during that seminar:

The next one shows him speaking at an
Economics Institute seminar for Judges at the
Searle Center in 2010:

                                                             All pictures obtained from Flikr®.

                                                  The Foundation for Research on Economics and
                                                  the Environment was begun in earnest in 1998,
                                                  for federal judges. FREE describes its mission
                                                  as promoting "free market environmentalism‖, a
                                                  doctrine that advocates reliance on the free
                                                  market and private property rights to protect the
                                                  environment,‖ a focus considerably more narrow
                                                  than GMU‘s. FREE is also not affiliated with any

© 2011 – Voter’s Legislative Transparency Project                                                 Page 36
university, existing as a standalone 501 (c)(3)    Clarence Thomas at a Heritage Foundation
non-profit.                                        President‘s Dinner event:

In 2005 FREE expanded their program to offer
their same trips/seminars to state Appellate and
Supreme Court judges, law professors and
Religious leaders. Here is an announcement of
the Seminars found on their Summer 2005

Seminar Series for Federal
Judges, Law Professors
and State Officials

                   June 9–12
              Entrepreneurship,                    FREE‘s Board of Directors includes three (3)
             Telecommunications,                   sitting   U.S.      judges:    Honorable      Alice
              and Social Change                    Batchelder , Chief Judge, United States Court
                                                   of Appeals, Sixth Circuit, Louisville, Kentucky;
                   July 12–17                      The Honorable Danny J. Boggs , Chief Judge
           Illicit Drugs, Civil Society,           United States Court of Appeals also for the Sixth
               and the Environment                 Circuit Louisville, Kentucky, and; The Honorable
                                                   Edith Brown Clement , Circuit Judge United
               September 13–18                     States Court of Appeals for the Fifth Circuit, New
              Terrorism, Energy,                   Orleans, LA.
               and Civil Society
                                                   Also on the FREE BOD are others with
                 October 12–16                     conservative organizations in their current or
                                                   past history: Edwin Meese, III (Distinguished
         Biotechnology, Risk Analysis,                                               108
                                                   Fellow at the Heritage Foundation) ; Jonathan
             and the Environment:
                                                   H. Adler (Federalist Society and CATO
        Implications for Federal Judges                      109
                                                   Institute) ; Jim Huffman (Federalist Society,
                 October 26–30                     Heritage Foundation and the Institute for
                                                   Humane Studies) ; John Von Kannon (Pacific
  Environmental Economics for State Officials
                                                   Legal Foundation, Heritage Foundation and The
                                                                        111                    11
FREE‘s influence does not stop at the federal      American Spectator) and; Todd J. Zywicki ,
judicial level. Below is a picture taken from
another of their Newsletters (Fall 2005). It               10
                                                              See Clarence Thomas relationship chart on
shows FREE Founder and CEO John Baden                      pages 57-59. Samuel Alito on page 60 for full
                                                           exposure of relationships and connections.
and his wife along with FREE Associate Director
Pete Geddes with Supreme Court Justice,                    11
                                                              Zywicki also has ties to IHS and Bill of Rights

© 2011 – Voter’s Legislative Transparency Project                                                 Page 37
Professor of Law at George Mason University                     GMU‘s LEC. Again in 2006 Ross revisited this
School of Law (John M. Olin, Mercatus Center at                 issue and informed readers about SCOTUS
George Mason University and Federalist                          Justice, Scalia attending one of the GMU‘s
        112                                                            14
Society) .                                                      junkets . In that broadcast, Nightline included
                                                                pictures of Justice Scalia playing tennis at a Ritz
Many of FREE‘s seminars are presented by                        Carlton Resort in Bachelor Gulch, CO. where
these Board members and others representing                     that particular seminar was held, sponsored by
many of the same organizations mentioned in                     the Federalist Society.
the preceding paragraph. Corporations also
have led these seminars for FREE the same way                   The 20/20 documentary also referenced
they do for the GMU program.                                    previously reported that in at least two
                                                                documented cases, federal judges who attended
In 2003 three other U.S. judges resigned as                     these seminars were at the time of attendance,
members of the FREE BOD; U.S. District Judge                    hearing cases involving issues discussed at the
Andre M. Davis , Douglas H. Ginsburg, chief                     seminars. The judges returned to the bench and
judge of the U.S. Court of Appeals for the District             ruled favorably on behalf of corporations over
of Columbia and, Jane R. Roth, a judge on the                   the U.S. government. In one case a judge
3rd Circuit appeals court. These resignations                   returned, changed his position and wrote the
came following an ethics complaint made                         opinion favoring the corporate party in the
against Judge Davis that resulted in a                          litigation. This documentary was based in part
determination that sitting upon FREE‘s BOD was                  upon the work of the Community Rights
in violation of the Cannon of Ethics for federal                Counsel‘s ―NOTHING FOR FREE: How Private
judges. Judge Boggs refused to resign and                       Judicial     Seminars       Are    Undermining
remains a FREE Board member.                                    Environmental Protections and Breaking the
                                                                Public's Trust‖     published in 2000. CRC's
In 2001 20/20‘s Nightline did a documentary on
                     12                                         publication goes on to state::
―Junkets For Judges ‖ where the Investigative
Journalist, Brian Ross informed more than 500                         ―Every year more and more federal
judges and two Supreme Court Judges had                               judges fly to resort locations to
received these free trips and seminars from                           attend privately funded seminars. All
                                                                      of a judge‘s expenses are paid for,
                                                                      including tuition, transportation,
                                                                      food, lodging, and various leisure
        award/winners#Zywicki and clerked for Judge Jerry             activities. These trips, which cost
        E. Smith of the U.S. Court of Appeals for the Fifth
        Circuit and has taken trips through FREE,                     thousands of dollars per judge, are
        Federalist Society, Liberty Fund, GMS and Institute           privately bankrolled by corporations
        for                                          Justice:         and foundations. Meanwhile, the

       12                                                              13
                                                                           Visit for list                      of judges who have participated in these events.
       and                    part                II:                  14         
       ature=related                                                   #.TssGicPNlGU

© 2011 – Voter’s Legislative Transparency Project                                                                Page 38
      same funders are simultaneously              list – are intended to ―program‖ the judiciary to
      financing federal court litigation           rule favorably upon issues important to them.
      touching upon the same topics
      covered at the seminars. These               Though FREE insists they are merely providing
      sponsors are not supporting the              ―education‖ to these federal Judges and
      seminars out of benevolence; rather
                                                   Justices, what they are actually doing is
      they do so in the hope of influencing                                                 115
      judicial thinking to their benefit. They     explained by FREE Trustee, James Huffman :
      are paying to have judges attend
      seminars that stress economic and                   ―[T]he Political Economy Research
      policy arguments, which, if adopted                 Center (PERC) laid the foundation
      by the judges, would advance their                  for what has become known as free
      ideological and pecuniary interests…                market environmentalism. Through
                                                          a long term strategy of educational
      ‖[…] Third, there is significant                    programming, PERC and its
      evidence suggesting that these                      offshoot, the Foundation for
      biased, pro-market seminars are                     Research on Economics and the
      working as their sponsors intend,                   Environment (FREE), have spread
      breeding a new conservative judicial                their message to journalists,
      activism. This report canvasses the                 congressional staffers, federal
      last decade of environmental                        judges, government bureaucrats,
      decisions and traces the emergence                  environmental activists, and the
      of a growing anti-environmental                     general public.‖(Emphasis added).
      judicial activism developing in
      lockstep with the ideological goals          One earlier case stands out to demonstrate the
      promoted by the Big Three. Four              influence upon the federal judiciary that FREE
      key legal issues are focused on, and         can bring. In the case of Preseault v. United
      remarkably, in each area, the author         States 100 F.3d 1525 (1996) U.S. Court of
      of every leading activist decision
      has attended at least one Big Three
      seminar. Most of the judges
      attended numerous trips, sometimes
      while a pertinent case was before
      the court, and sometimes ruling in
      favor of a litigant backed by the            15
                                                      According to MediaTransparency, PERC under its old
      same special interests that                  name, received $603,600 from Bradley Foundation and
      sponsored the judge‘s trip. In one           $640,775 from Olin Foundation.
      case, a judge ruled one way in a
      very high-profile case, attended a           Other funding has come from Sarah Scaife, JM Foundation,
      seminar and, upon his return,                Lambe Foundation, McKenna Foundation, Earhart
                                                   Foundation, Koch Foundation, Carthage Foundation and
      switched his vote to agree with his          Castle Rock Foundation -- the guts of a force of roughly a
      newly acquired education‖.                   dozen or so foundations that, since the 1960s, have
                                                   coordinated their efforts toward forging national policy
These all-expense-paid trips were paid for by      favorable to deregulation of industry and to privatization.
corporations and conservative foundations – with   According to Mediatransparency's records, PERC received
the Koch brothers prominently at the top of that   $4,175,875 from all funding sources combined from 1985 to

© 2011 – Voter’s Legislative Transparency Project                                                 Page 39
Appeals (a case on ―Takings law‖ ) the District               and political posits: Samuel Alito and Antonin
Court ruled in favor of the United States.                    Scalia.

However when the case was appealed to the                     All three are members (or alumni) of the
Circuit level, Four of the six judges who ruled               federalist Society. Scalia and Alito have been
against the government in Preseault reported on               honored by the Federalist Society and used to
their financial disclosure forms that they had                raise funds. Below is a link to a C-Span video of
attended FREE seminars, along with one of the                 Scalia, Alito and Sen. Majority Leader,
three judges who came down on the                             McConnell speaking at the Federalist Society in
government's side. The John M. Olin                           2006.
Foundation, which gives money to FREE to
support the judicial seminars, was also a
financial backer of the New England Legal
Foundation, which litigated the Preseault case.
The Supreme Court upheld the Appellate judges‘
decision .These programs used to influence
state and more importantly the federal judiciary
has changed the appearance and propriety of
the judicial landscape in America. It serves to
lend the appearance that ―justice‖ can be bought
all the way from state Appellate courts to the
                                                              To view video click here.
         - Influence upon Supreme Court -
                                                              Scalia has had book signings at the FS:
In the atmosphere of today with the Citizen‘s
United case and upcoming review of cases
involving the repeal of the Patient Protection and
Affordable Care Act, attention has become
focused upon the Supreme Court.

In particular voters have become concerned
about political associations and politics within
the makeup of the SCOTUS. Though most of
this attention has been concentrated upon
Justice Thomas and his wife, Virginia, there are              Justice Antonin Scalia book signing at FS
two other Justices with similar ties, connections

                                                                 The charts on Justices starting on page 57 clearly show their
16                                                            connections to many of the CABAL‘s members and individuals.
   Takings Laws undermine environmental legislation, land
use laws, and regulations designed to protect public health

© 2011 – Voter’s Legislative Transparency Project                                                                     Page 40
Added to what you‘ve read above, we must also        meetings and dinners provided by;    Liberty
realize that in June of last year, the Koch          University, Hillsdale College, Jesse Helms
brothers held an ultra-secret meeting in Aspen       Center, Monsanto Company, Nat‘l Center for
Colorado. Names you‘ve read above – and below        Policy Analysis and the Acton Institute, his
- associated with Koch/ALEC were in                  political beliefs are solidified.
attendance; Scaife, Pope, Meese, Walton,
Bechtel, Glenn Beck, Bush, De Vos, Fettig and        Factoring in that Justice Thomas has a close
Johnson were all in attendance. Speakers were        friendship with billionaire real estate magnate,
from CATO, Mercatus Center, Heritage, Fox            Harlan Crow, those beliefs are amplified.
News, Americans for Prosperity, the Wall Street      Thomas frequently uses Crow‘s private jet to
Journal, American Enterprise Institute, National     travel to events, his wife‘s Liberty Central
Review, National Right to Work, U.S. Chamber         received a substantial contribution from Crow
of Commerce and Walton (Wal-Mart).                   and Crow has financed a museum project
                                                     favored by Thomas. Obviously they are quite
Included was a listing of past attendees to these    friendly.
Koch meetings. Two of those named were
Supreme Court Justices Clarence Thomas,              Crow has ties to nearly every member of the
Antonin Scalia.
                    Justice Thomas admitted he       CABAL through his connections to Koch and
had participated in at least one of these Koch       other key foundation/donors and their
        118                                          organizations:

Koch Industries published an article      that did
not deny the attendance by Scalia and Thomas
at their secretive meetings, instead claiming it
was ethical and lawful for them to do so:

      ―The reality is that Justice Scalia‘s
      and Justice Thomas‘ attendance at
      separate Koch-sponsored
      conferences was completely
      appropriate and lawful.‖
As the numerous charts with links to
associations and relationships offered in other
chapters of this report indicate, there are
close and numerous ties between Thomas
and Scalia to Koch and other members of the
CABAL. It has become obvious neither the
                                                               Crow, Thomas Koch connections
Justices nor Koch can any longer deny such
relationships exist.                                 The existence of these relationships between
                                                     key members of the Supreme Court and key
With Thomas‘ association with FREE, and his          members of the CABAL demonstrates clearly
acceptance of free travel to attend seminars,

© 2011 – Voter’s Legislative Transparency Project                                               Page 41
that there is a genuine appearance of              those of many states. Without doubt it will
conservative influences within our highest         also severely impact the upcoming 2012
court. The concerns voiced by voters and           election as the CABAL dumps money into the
Progressives alike are real and have a basis       campaigns in an effort to overcome the
in fact.                                           objections of more moderate and progressive
The key concern VLTP expresses is ALEC‘s
place within these ties to the judiciary. Once     Citizen‘s United was merely the last of a
ALEC model legislation is proposed and             number of decisions that have been made by
passed at the state level, they are sometimes      the SCOTUS which favorably benefited
challenged through state litigation – which        conservative proponents and corporations in
often advances to the federal level for review     particular (i.e., Indiana‘s Voter ID law upheld
upon appeal.       As shown previously, our        by the Supreme Court in 2008 and National
federal    judiciary  has     been     seriously   Cable & Telecommunications Association v.
compromised by the same CABAL through the          Brand X Internet Services ruling against
trips and seminars provided by FREE, GMU           internet service providers in favor of cable
and the others involved in such activities. The    companies in 2005 ).
pro-corporate philosophy of ALEC has
proponents within the federal courts due to        The fate of the Patient Protection and
these seminars and free trips. The voter‘s         Healthcare Act now rests in the hands of the
belief that the federal courts present a           Supreme Court. Challenges to Roe v. Wade
protection from possible improper state action     are in the wings – pushed by the CABAL and
is thus compromised.                               their conservative legislative members. The
                                                   current situation is analogous to FDR‘s
If an ALEC initiative advances through the         situation in 1937 concerning his New Deal
federal court system and ends up on the            legislation being opposed by SCOTUS.
docket of the SCOTUS, the last possible
safeguard is jeopardized. With three Justices      Ethics complaints made against Justice
clearly affiliated with those supporting           Thomas by voters and legislators alike and
legislation friendly to the CABAL, it only takes   calls for his recusal in the Healthcare review
two of the remaining justices to join them and     appear to be falling upon the deaf ear of Chief
rule favorably in favor of the CABAL and their     Justice Roberts. True judicial impartiality is
beneficial legislation.                            itself is now on trial and the scales of justice
                                                   appear to be heavily weighted in favor of the
This has already happened – with extreme           CABAL.
clarity in the Citizen‘s United decision. Today
the result of that decision has been
experienced in both the 2010 and 2011
election cycles. Previously unheard of
corporate funding was used to change the
balances in both Houses of Congress and

© 2011 – Voter’s Legislative Transparency Project                                         Page 42
  ―Appearances as ‗Friend of The Court‘ to Sway Opinions and Judicial
                        Rulings on Key Issues‖

Once ALEC‘s model legislation is proposed and         business arguments.       These briefs were
enacted at the state level, besides tweaking that     sometimes     filed  jointly   with   several
particular bill to make it applicable in other        organizations, foundations, institutions or
states, ALEC and the Koch network defend that         companies in order to present a common
legislation if/when it is challenged in a court of    agreed-upon argument to the court.
law. Without ALEC being named as a party to
the suit, they have found another way to defend       In the case of ALEC and the conservative
legislation written by them – by filing what is       network, briefs are often filed separately. In
termed an Amicus Curiae Brief in cases                many instances literally dozens of these briefs
challenging enactment of ALEC ―laws.‖                 appear upon the dockets of the District,
                                                      Appellate or Supreme Court dockets.
Court Rules allow parties with interest in the
outcome of a case to file an Amicus brief in          In the case of STATE OF FLORIDA V. UNITED
support of the Plaintiff, Defendant or on behalf of   STATES DEPARTMENT OF HEALTH AND
neither.    As long as the Amicus pleader             HUMAN SERVICES, et al.             on Repeal of
demonstrates they have an interest in the final       Patient Protection and Affordable Care Act, the
opinion or decision in the case, they are             number of Amicus briefs filed demonstrates this
generally allowed to file a brief and have their      pattern of influence. Right wing organizations,
argument(s) considered in determining the final       individuals, conservative U.S. Congressmen and
ruling.                                               Representatives, Speaker John Boehner,
                                                      Republican State Legislators and associations
This is a long standing and established               affiliated with conservative ideological positions
allowance of our court system. It has been used       filed a total of 28 amicus briefs against the
in many cases sometimes by a State or even the        U.S.        These weren‘t merely providing an
United States itself. ALEC and their affiliates       argument in support of the initial issues, amici
take that concept one step further – never let it     filed briefs in support of summary judgment for
be said they refrain from excess in efforts of
influencing anything important to them.
                                                                In this case ALEC‘s close affiliates, the National
Our research reveals that on important issues of             Federation of Independent Business owners (NIFB)
gun control, communications, economics,                      joined the suit with Florida, and became a Plaintiff.

education, healthcare, financial and environment             19
                                                                ALEC has a legislative guide to repealing
matters relating to business or corporations filed           ―Obamacare‖:    
in federal courts, massive amounts of amici                  content/uploads/State_Leg_Guide_to_Repealing_
curiae appeared and were filed in support of pro-

© 2011 – Voter’s Legislative Transparency Project                                                     Page 43
Florida, against the government‘s motion for          published an article on the number of Amicus
summary judgment and to dismiss.                      briefs filed (35 altogether).

In the Commonwealth of Virginia V. U.S.               Davenport exemplifies that when one of ALEC‘s
Department of Health and Human Services               model legislative acts is challenged through
case, another 26 amicus briefs were filed by the      litigation, all of the conservative organizations,
usual - and same suspects against the Dept. of        institutes, think tanks and foundations affiliated
Health. Again, these included the American            with them and supported with Koch money,
Center for Law and Justice, Constitutional            show up in force in an attempt to influence the
Accountability Center, CATO Institute, Pacific        court to rule in favor or support of, an ALEC
Legal Foundation, Revere America Foundation,          initiative.
Mountain States Legal Foundation and the
Chamber of Commerce.              All of these        There are literally dozens upon dozens of similar
organizations hold the same conservative,             cases involving these same players that make
corporatist ideologies and beliefs, and most are      up the core of this CABAL. Hundreds of Amicus
funded with Koch money .
                         126                          briefs are filed at both the state and federal
                                                      levels in support of ALEC model legislation when
A good example of how these entities work             it is challenged. It doesn‘t have to be ALEC
together as amici curiae can be found in the          model legislation under a challenge, just
2005 Supreme Court case GUY DAVENPORT                 something important to business or corporations.
involving ―Paycheck Protection‖ (one of ALEC‘s        Many cases advancing to the Supreme Court
model Acts) was challenged in Washington              also attract ALEC and the Cabal‘s attention on
                                                                             136                  137
State.                                                key issues; gun control , freedom of speech ,
                                                      etc. In these cases it is the pro-corporate
As in subsequent challenges to the Healthcare         concept they are protecting, rather than actual
act in 2010 and beyond, this case generated           ALEC written legislation.
numerous amici filing briefs in support of the
Plaintiff, Gary Davenport, against the state of       VLTP would urge readers to spend a few hours
Washington. Here is a partial listing of those        researching Amicus Briefs on the Internet for a
filing friend of the court briefs: Mackinac           better understanding of the number of briefs that
Center , American Legislative Exchange                have been filed by the Cabal and ALEC.
Council , CATO Institute and the Reason
             129                                      A key issue that has been vigorously pursued
Foundation ,           Evergreen        Freedom
             130                               131    and protected is ALEC‘s model legislation –
Foundation , Pacific Legal Foundation ,                                                              138
                     132                              ―Asbestos and Silica Claims Priorities Act‖
Institute for Justice , Mountain States Legal           139
             133                                134   & . This model legislation has been pursued in
Foundation       and Pacific Research Institute
                                                      many states and in most instances attorneys for
to name some of the 14 parties who filed in favor
                                                      Shook, Hardy and Bacon (SHB)defend that
of ALEC‘s model Paycheck legislation.        This
                                                      legislation by filing amicus briefs, openly
was so unusual in such a case that the National                                      140
                                                      lobbying (in ND in 2009 ) and making
Right To Work Legal Defense Foundation
                                                      presentations to state legislatures in support of

© 2011 – Voter’s Legislative Transparency Project                                             Page 44
this initiative (in this 2008 MO. legislation the                  Supreme Court and state supreme court
sponsor of the bill was ALEC member,                               decisions. State legislatures have
                                                                   passed laws we helped develop and
Representative Bryan Pratt [R MO]).                                championed, and we are viewed as
                                                                   among those most knowledgeable about
SHB provides the below statement on their work                     a range of cutting-edge issues, such as
on behalf of ALEC and several of ALEC‘s                            the use of public nuisance theories
                                                                   against product manufacturers,
members. SHB also represents or works with:
                                                                   expanded use of consumer protection
                                                                   acts, lawsuits for medical monitoring by
      ―SHB has long been at the forefront of                       plaintiffs without existing injuries, and
      efforts to institute reforms at the state                    protected trade secrets and other
      and federal levels that will ensure our                      proprietary information provided to
      clients are treated fairly in civil lawsuits.                personal injury lawyers in discovery.‖
      SHB attorneys, working with DRI and
      LCJ , as well as the American Tort                    In a case in WA State, in 2008 an attorney arguing
      Reform Association, the Institute for                 against an amicus brief filed in the case by Mark
      Legal Reform of the U.S. Chamber of                   Behrens and Victor Schwartz (SHB lobby group and
      Commerce, the National Association of                 ALEC Civil Justice Task Force Adviser and Chairman,
      Manufacturers, the American Legislative
                                                            respectively) spoke out about Behrens and Schwartz.
      Exchange Council, and the Washington
      Legal Foundation, among others,                       He identified both as having represented many other
      actively engage in reform debates in                  clients, writing research papers       and representing
      many ways.                                            the American Tort Reform Association – yet appearing
      ―SHB lawyers file amicus briefs, publish              in the WA. case as an ―Amicus‖          without advising
      scholarly articles, educate other legal               the court as to their vested interest in the litigation on
      professionals about the issues through                behalf of their clients and ALEC.
      CLE conferences and other legal
      forums such as Webinars, provide                      The filing of these briefs and defending
      informed commentary to the press,                     legislation important to the CABAL and
      negotiate with lawmakers, and testify
      before legislative committees. Under the              especially to ALEC‘s introduced model
      leadership of nationally renowned SHB                 legislation is used to reinforce the pro-corporate,
      Partner Victor Schwartz, our                          free market positions introduced to the judiciary
      Washington, D.C.-based public policy
                                                            through the free trips/seminar program.
      group, in particular, leads a coalition of
      industry interests to develop ideas that              Together these two activities tip the scales in
      will safeguard traditional tort law                   favor of the CABAL – as designed.
      principles that best protect the rights of
      defendants facing an onslaught of non-
      traditional claims and theories which
      expose them to unprecedented liability.

      ―Our articles and briefs on key public
      policy issues have been cited in U.S.

          National membership organization for defense,
       insurance, and corporate counsel, offering expert
          Lawyers for Civil Justice:
            Continuing Legal Education

© 2011 – Voter’s Legislative Transparency Project                                                          Page 45
           ―Institute For Humane Studies – Koch‘s Intern Program(s)‖

 Many have fought long and hard to prove             Scaife   Foundation,     the   Koch    Family
connections between Charles and David Koch           Foundations, Lynde and Harry Bradley
and various Conservative Right Wing groups,          Foundation, and the Carthage Foundation.
organizations, foundations and Main Stream
Media outlets. VLTP has found that there are         The chair of its board of directors is Charles G.
direct links between Koch money and all of the       Koch . The other members of the board of
Cabal‘s affiliates.                                  directors are John Blundell, Richard H. Fink,
                                                     Jerome Fullinwider, Timothy Otis Browne, Tyler
The Koch's Institute For Humane Studies          .   Cowen, Art Pope, David Humphreys, Eric
IHS describes their mission as;                      O'Keefe, Todd Zywicki, William Sumner, Kristina
                                                     Kendall, and Craig Johnson .
―The mission of IHS is to support the
achievement of a freer society by discovering        IHS lists 80 organizations to which the Kochs
and facilitating the development of talented         provide "internships". The interns are paid
students, scholars, and other intellectuals who      $10.00/hour by the Kochs      which helps keep
share an interest in liberty and in advancing the    payroll down for the organization and allows
principles and practice of freedom.                  Koch to have direct inside control over the
                                                     ongoing activities and their efforts being
"Each year IHS awards over $750,000 in               conducted in each of these "charities". A partial
scholarships to students from universities           - but important list of those receiving Koch
around the world. IHS also sponsors the              provided interns include:
attendance of hundreds of students at its
summer seminars and provides various forms of        •   Acton Institute for the Study of Religion and
career     assistance,    including    sponsored         Liberty
internships, to students and recent graduates
                                                     •   American Enterprise Institute
pursuing careers in academia, journalism, and
public policy. Through its programs, the Institute   •   American Legislative Exchange Council
promotes the study of liberty across a broad         •   Americans for Limited Government
range of disciplines, encouraging understanding,
                                                     •   Americans for Tax Reform
open inquiry, rigorous scholarship, and creative
problem-solving."                                    •   Atlantic Council of the United States
                                                     •   Atlas Economic Research Foundation
The IHS is currently located on George Mason
University‘s Arlington campus. IHS receives          •   Beacon Hill Institute
funding from a base of individual donors, as well    •   Bill of Rights Institute
as from several classical liberal, libertarian and
conservative foundations, including the Sarah

© 2011 – Voter’s Legislative Transparency Project                                             Page 46
•   Bluegrass Institute for Public Policy           •   John Locke Foundation
    Solutions                                       •   John W. Pope Civitas Institute
•   Buckeye Institute for Public Policy Solutions   •   MacIver Institute for Public Policy
•   Capital Research Center                         •   Mackinac Center for Public Policy
•   Cascade Policy Institute                        •   Mercatus Center
•   Cato Institute                                  •   National Center for Policy Analysis
•   Center for Competitive Politics                 •   National Center for Public Policy Research
•   Center for Individual Freedom                   •   National Right to Work Legal Defense
•   Center of the American Experiment                   Foundation
•   Citizens Against Government Waste               •   National Taxpayers Union Foundation
•   Commonwealth Foundation                         •   Nevada Policy Research Institute
•   Competitive Enterprise Institute                •   Pacific Legal Foundation
•   Criminal Justice Policy Foundation              •   Pacific Research Institute
•   Drug Policy Alliance                            •   Public Interest Institute
•   Empire Center for New York State Policy         •   Reason Foundation
•   Federalist Society                              •   Reason Magazine
•   Foundation for Educational Choice               •   Reason TV
•   Foundation for Government Accountability        •   Students For Liberty
•   Franklin Center for Government & Public         •   Tax Foundation
    Integrity                                       •   Taxpayers for Common Sense
•   Freedom Foundation                              •   Technology Policy Institute
•   George C. Marshall Institute                    •   The George Washington University
•   Goldwater Institute                                 Regulatory Studies Center
•   Heartland Institute                             •   Thomas B. Fordham Institute
•   Hudson Institute                                •   Washington Legal Foundation
•   Independence Institute                          •   Washington Policy Center
•   Independent Women's Forum                       Seminar themes include the value of property
•   Institute for Energy Research                   rights, limited government, peace, natural rights,
                                                    free trade, individual autonomy, and the morality
•   Institute for Justice
                                                    of free enterprise. There are introductory and
•   Institute of World Politics                     advanced seminars, as well as seminars geared
•   James Madison Institute                         toward students planning careers in public
                                                    policy, academia, and journalism.

© 2011 – Voter’s Legislative Transparency Project                                             Page 47
There are page after page of these "affiliates"               Bill of Rights Institute
Koch provides intern staffing for annually .
                                                148           Charles Koch Foundation
Those provided here are all involved in one way               Competitive Enterprise Institute
                                                              Federalist Society
or another on the National/federal level. They                George Washington Regulatory Studies Center
are used to advance the conservative ideologies               Heritage Foundation
on taxation, environment, economics, criminal                 Institute for Energy Research
justice, tort reforms, education and voter                    Institute for Justice
                                                              Interdisciplinary Center for Economic Science
disenfranchisement.         In pursuit of those
                                                              Mercatus Center
initiatives many of the foregoing institutes or               National Federation of Independent Businesses-
think tanks are used to provide alternative                    Small Business Legal Center
science, facts and figures to organizations such              Philanthropy Roundtable
as ALEC to support the pro-corporate agenda.                  Searle Civil Justice Institute
                                                              State Policy Network
They lend an appearance of academic and                       Sunshine Review
scientific investigations to support the ideologies           Tax Foundation
and in support of litigation at the state and                 The Fund for American Studies
federal level that oppose or challenge any of the
CABAL‘s initiatives or advanced legislation.          In addition to the Koch Institute and IHS
                                                      internship program, most of those conservative
IHS provides a short list of their most notable       organizations and institutes accepting those
alumni of the summer Graduate Research                interns have their own internship program(s).
Program.                                              Therefore, of the ―alumni‖ IHS and Koch claim,
                                                      there are possibly thousands more who are out
IHS just held its 50th Anniversary Dinner on
                                                      there in capacities within corporations, think
October 13, 2011. Tickets were pricy ranging
                                                      tanks, media and other important positions that
from $500.00 to $25,000.00. Prominent on the
                                                      have not been identified as being a part of the
list of attendees was ―IHS Chairman and
                                        150           CABAL.
supporter since 1964‖, Charles G. Koch.
                                                                               152                          153
                                                      Heritage Foundation,     Reason Foundation,
   Charles Koch Institute Internship Program                            154         155            156
                                                      Mercatus Center,        ALEC       and CATO
                                                      Institute to name just a handful of the dozens
In addition to this internship program, the
                                                      that have such programs. Some, like Mercatus
Charles Koch Institute also offers a separate
                    151                               offer Media internships similar to IHS and Koch
internship program.     This one offers Spring
and Summer internships and provides
placement of the interns within many of the           In conjunction with the Summer Internship
same organizations and institutes as IHS:             program, IHS also provides a sister program
                                                      geared strictly to providing interns to media
        American Council of Trustees and Alumni      outlets. That is covered in the next section.
        America's Future Foundation
        American Ideas Institute
        American Legislative Exchange Council
        Americans for Tax Reform

© 2011 – Voter’s Legislative Transparency Project                                                   Page 48
          ―Institute For Humane Studies – Journalism Internship(s)‖
IHS‘ Journalism Internship Program         (JIP) is   Libertarian Perspective, Journalism & a Free
described by IHS as:                                  Society and Scholarship & a Free Society .

     ―The IHS Journalism Internship                   The IHS program overview provides:
     Program places talented writers and
     communicators—who support                             ―IHS seminars provide an
     individual liberty, free markets, and                 opportunity to re-examine society
     peace—at media companies and                          and politics from outside the usual
     non-profit newsrooms. Past interns                    boundaries. They open a window on
     have worked at 20/20, the The                         the classical liberal or libertarian
     Orange County Register,                               perspective—a perspective that
     Reason.TV, Fox News, and many                         begins with individual liberty and
     other organizations. Internships                      leads to maximizing freedom in
     occur during the spring, summer,                      trade, the arts, international
     and fall.                                             relations, and many other aspects of
     ‖ The program includes our
     weeklong journalism seminar,                          ―An IHS seminar is an adventure in
     Journalism & a Free Society.                          ideas where participants explore
     Experienced journalists share                         fundamental questions...
     career stories and advice, and
     outstanding professors explain the                    • What is the proper role of
     foundations of a free press and                       government?
     economic tools for understanding                      • How much liberty is good for the
     political and economic issues. You                    individual?
     can network with other interns and
     the faculty during meals, discussion                  • What conditions foster peace and
     groups, and nightly receptions. IHS                   prosperity?
     provides travel assistance to the                     • How is globalization reshaping our
     workshop. All program interns from                    world?
     throughout the year—fall, spring, and
     summer—attend.‖                                       • How can we protect the
                                                           environment and still protect
                                                           freedom of choice and private
Those who complete the basic JIP can go on to              property rights?
attend advanced seminars and training in
                                                           • What analytical tools can help us
specific fields such as; Exploring Liberty,                solve social and economic problems
Morality, Capitalism & Freedom. Liberty &                  most effectively?‖
Society, The Tradition of Liberty: Advanced
                                                      The program covers all forms of media from
Studies, Liberty & Leviathan: Policy from the
                                                      newsprint to investigative, digital (new media)

© 2011 – Voter’s Legislative Transparency Project                                           Page 49
and broadcast. To understand the purpose of               • ABC 20/20 in Manhattan
this ―education‖ provided by IHS, it is necessary         • Fox News in Los Angeles and
to look briefly at each of the four media types           New York
mentioned here.
                                                          • Hedrick Smith Productions in
Investigative Journalism is described by IHS as;          Washington, DC
                                                          • MSNBC in New York City
       ―The Investigative Journalism track
      of the IHS Journalism Internship              New Media is described as;
      Program is for print journalists
      seeking challenging, investigative                  ―New media is transforming the
      writing assignments at state-level,                 news business. Traditional media
      public policy think tanks and                       firms such as newspapers, radio
      independent, non-profit                             stations and television stations are
      newsrooms.‖                                         becoming web-based news
                                                          providers, delivering print, video and
      ―Working under the guidance and                     audio online.
      supervision of a professional
      investigative journalist, you‘ll                    ―A journalist‘s responsibilities are
      sharpen your writing, research and                  changing as well. Many journalism
      analytical skills while learning how                jobs require writing an article,
      to investigate government                           capturing photos and video, and
      programs. You‘ll leverage the                       promoting the story through multiple
      resources and knowledge base of                     channels, such as social networks.
      the think tank to provide a free-                   ―IHS sponsors paid internships with
      market perspective to readers and                   media outlets charging into this new
      government officials.‖                              landscape. These organizations
Broadcast Journalism as;                                  seek individuals ready to diversify
                                                          their skill set to report and deliver
       ―Through the IHS Journalism                        the news using the latest methods.‖
      Internship Program, you can work at           Newspaper internship is stated as;
      a broadcast news organization or on
      a television or radio program of a                  ―The Newspaper Track of the IHS
      major media outlet. Internships can                 Journalism Internship Program
      involved researching stories,                       offers the opportunity to gain
      scheduling guest appearances,                       reporting experience and expand
      going out on shoots, and conducting                 your professional network working
      phone interviews. You can use your                  for a daily newspaper. During the
      knowledge of current events,                        internship, you'll get to report rather
      history, and politics to help create                than merely fetch coffee! The
      programs, and learn how an idea                     average intern walks away with at
      makes it to prime-time.‖ Job                        least twenty clips.
      placement after completing
      internship includes:                                Placed at a daily newspaper, you'll
                                                          work on a variety of assignments:
      • WTOP in Washington, DC
                                                          • write features

© 2011 – Voter’s Legislative Transparency Project                                             Page 50
     • report hard news                                  World Bank
     • contribute opinion commentary              (Identifying placement of IHS alumni within the
     • pursue investigative stories               Department of State and Department of Justice,
                                                  with interns having a proven relationship with
     Regular feedback on your work from
                                                  Koch‘s CABAL confirms the reason for VLTP‘s
     editors and your fellow journalists
     will strengthen your abilities. And          concerns about these ―intern‖ programs).
     you'll develop a network of
     professional contacts that will help         IHS was founded in 1961by Dr. F. A. "Baldy"
     you launch a journalism career.‖             Harper, a former economics professor at Cornell
     Placement after completion                   University. Through the years many of the
     includes:                                    interns placed by IHS and Koch have gone on to
     • Gaston Gazette – Gastonia, NC              placement in positions of importance within all
                                                  genre‘s of media, politics and many have gone
     • The Monitor – McAllen, TX
                                                  on to become clerks for important politicians and
     • Shelby Star – Shelby, NC                   judges. Others have seen their careers begin
     • Orange County Register – Orange            with the internship program and have since
     County, CA                                   become key personnel in those organizations
                                                  and think tanks where they began years before
     • News Herald – Panama City, FL
                                                  as interns.
     • New Bern Sun Journal – New
     Bern, NC                                     The mission of IHS is to support the
     • The Brownsville Herald –                   achievement of a freer society by discovering
     Brownsville, TX                              and facilitating the development of talented
                                                  students, scholars, and other intellectuals who
     • Times-News – Burlington, NC.
                                                  share an interest in liberty and in advancing the
Research fails to reveal just how many of these   principles and practice of freedom.
internships were provided over the years, but
                159                               Each year IHS awards over $750,000 in
IHS claims 900 (including Journalism alumni)
                                                  scholarships to students from universities
placed at:
                                                  around the world. IHS also sponsors the
      Cato Institute                             attendance of hundreds of students at its
      Institute for Justice                      summer seminars and provides various forms of
      Reason Foundation                          career     assistance,    including    sponsored
      Council of Economic Advisors               internships, to students and recent graduates
      Wall Street Journal                        pursuing careers in academia, journalism, and
      ABC News 20/20                             public policy. Through its programs, the Institute
      NBC                                        promotes the study of liberty across a broad
      New Republic                               range of disciplines, encouraging understanding,
      JP Morgan                                  open inquiry, rigorous scholarship, and creative
      U.S. State Department                      problem-solving.
      U.S. Department of Justice

© 2011 – Voter’s Legislative Transparency Project                                         Page 51
As with most of the organizations, institutes and          MSM today has shied away completely from
think tanks involved with the CABAL, IHS is                reporting on ALEC, and although many
heavily dependent upon patriotic terminology.              alternative news sources and organizations such
Every part of their program implies they exist to          as the Nation, Center for Media and Democracy,
instill a pursuit of ―liberty‖ to those participating in   Think Progress and others are reporting on
the Internships or post grad programs – along              ALEC--the harm done to voters by that
with their perception of ―freedom‖.                        legislation, continues. Yet the NY Times, CBS,
                                                           ABC, the Post and most of the larger outlets
Our concern at VLTP with the IHS Summer                    considered ―Mainstream‖ continue to be silent
Internship Program is the impact upon our media            about ALEC, their legislation, the harm done to
outlets and sources. Many of these interns have            voters by that legislation and their pursuits of
by now become entrenched within all forms of               privatization. This was recently demonstrated by
media in the U.S. It is possible some hold                 the MSM's ignoring the OWS movement until
positions as Broadcast, Newspaper and Digital              there was violence in NYC. Then the MSM
Media outlet editors (senior and associate)                finally began to report on the Movement. As
producers, executives and upon article                     time has passed, the coverage has devolved
committees.                                                into stories of "dirty hippies", expressing the
                                                           observation that it is disorganized and bears a
As many Americans have begun to realize,
                                                           marked resemblance to the War protests of the
major events take place in the U.S. today, and
                                                           Vietnam era.
some of it – regardless of importance – does not
get reported, or if mentioned, is underreported.           We believe that the IHS and similar internship
The Protest ALEC event in Cincinnati in April              programs have been used to start the next
2011 took place within sight of the Cincinnati             generation of conservative thinkers and
Enquirer‘s building and staff. Many watched the            believers in positions of influence within the
marching, protesting and demonstrations from               media – while at the same time large
the windows of the Enquirer (a Gannett owned               corporations (with conservative-minded owners)
paper) yet there was nothing reported about the            merged, acquired or outright purchased smaller
disruption of traffic, the speakers, issues, ALEC,         media outlets. One quote from a recent Rush
marching or the main rally. Progressive and                Limbaugh program supports this observation,
liberal media gave interviews, recorded the                where he states that he ―clearly believes the
event and reported about the event in Cincy – but          U.S.     MSM       is  now      controlled  by
nothing from the MSM.                                      conservatives.‖

More and more issues important to Americans                This has concentrated our news in the smaller
are either not reported upon by leading                    number of hands of much of America's top 1%
corporate owned media outlets, or they are                 representing America‘s wealthiest and most
reported with a definite conservative pro-                 influential. Reporting has a definite conservative
corporate overtone. Programs such as this Koch             branding that works to influence the minds of
funded-and-directed one of IHS would appear to             readers, viewers and listeners. What is printed
be contributing to this new type of reporting. The         today, broadcast or reported as ―investigative‖

© 2011 – Voter’s Legislative Transparency Project                                                  Page 52
journalism bears no comparison to the news as     by those reporting it – not the government – the
reported in past years. Much of what we see,      corporations owning our media.
hear and read today is in this manner, censored

© 2011 – Voter’s Legislative Transparency Project                                        Page 53
                        ―Charting Relationships of the Cabal‖

As the preceding information, facts and figures inform, there is a central theme to the network
binding ALEC, Koch, the corporations and various think tanks, institutes and large wealthy
foundations together. Of course it involves the conservative dogma put forth by ALEC’s
founders – mirrored in the mission statements of each of the many affiliate organizations,
foundations and think tanks involved.

Together all of these individuals, activities and funding forms this “Cabal” as referenced
throughout this report. Below are some of the charts and graphs showing the synergistic
relationships that link all of the players and activities together. Most of the charts are compiled
from Muckety. The first shows the connections to Charkes G. Koch Charitable Foundation:

Muckety metrics: Connections: Charles G. Koch Charitable Foundation has direct or once-
removed relationships with 398 people, organizations or other entities in our database of the
most influential people in America. Under a scoring system that gives more weight to direct
links, this score is higher than 98% of all entries. Muckety connection score: 98

© 2011 – Voter’s Legislative Transparency Project                                         Page 54
                               CG KOCH FOUNDATION

The next chart shows the connections between Charles G. Koch and the Institute for Humane

Muckety metrics: Connections: Institute for Humane Studies has direct or once-removed
relationships with 51 people, organizations or other entities in our database of the most

© 2011 – Voter’s Legislative Transparency Project                                Page 55
influential people in America. Under a scoring system that gives more weight to direct links, this
score is higher than 62% of all entries.

People related to Institute for Humane Studies: Richard H. Fink - director

Other current Institute for Humane Studies relationships: Charles G. Koch Charitable Foundation
– funder of George Mason University – program. Muckety connection score: 62

                                          IHS CHART

© 2011 – Voter’s Legislative Transparency Project                                        Page 56
This expanded chart shows the relationship and connections of Koch through the IHS:163

                            IHS-KOCH EXTENDED RELATIONSHIPS

© 2011 – Voter’s Legislative Transparency Project                                        Page 57
This chart shows the relationship between Koch and the CATO Institute and the relationship of
both to other Cabal Members:164

CATO Institute (Muckety rating 97%) –


© 2011 – Voter’s Legislative Transparency Project                                      Page 58
This chart shows the relationships and how the Federalist Society is connected through Charles
Koch to other CABAL members to Harlan R. Crow and Justices of the U.S. Supreme Court:165

Muckety Rating (99%) –


© 2011 – Voter’s Legislative Transparency Project                                       Page 59
A compact view of the foregoing chart is here. Though all of these charts are hard to read due to the huge
number of connections, they can all be found at for those wanting to fully expand and see
the relationships in better detail: Harlan Crow that helps connect many of the CABAL members, has a
Muckety rating of 100%:

                             CROW-KOCH-CLARENCE THOMAS CHART

© 2011 – Voter’s Legislative Transparency Project                                               Page 60
Due to the current attention related to Justice Clarence Thomas and his relationships with many of the
members of this conservative CABAL, we added this chart to the Report. This chart found at Muckety
sets Thomas‘ Influence rating at 96%. The previous chart revealed the relationship and connections
between Thomas, Crow and Koch. This one we expanded two of Thomas‘ clerk‘s relationships and that
of his wife. This clearly shows close ties to many of the CABAL organizations, foundations and individuals
with Justice Thomas. We already connected him to FREE and as a member of the Federalist Society
elsewhere in the report.

                                      Justice Thomas, wife, clerk relationship

© 2011 – Voter’s Legislative Transparency Project                                               Page 61
Expanding the Muckety chart on Justice Samuel Alito (Muckety Connection rating of 90%) to show the
relationship(s) with E. Gillespie his confirmation adviser we found connections to Dick Armey and his
Freedom Works Foundation, John Kasich and several Republican committees.

                                         Alito, Gillespie, Armey chart

© 2011 – Voter’s Legislative Transparency Project                                              Page 62
Finally, here is a chart showing just a few of ALEC’s more important connections and
relationships to many of the Cabal members shown in the preceding charts:168

                                          ALEC RELATIONSHIP CHART

If all relationships between ALEC were expanded fully and connected to the foregoing charts, the picture
would be complete with every connection exposed. Muckety does not have this capacity (they don‘t list
ALEC or FREE in their database for some reason).

          When VLTP made this chart we contacted Muckety staff and inquired why there was no data on ALEC. We received no
       response from them. Shortly after this inquiry, Muckety discontinued allowing visitors to create their own relationship
       charts – and continue to exclude ALEC from their database.

© 2011 – Voter’s Legislative Transparency Project                                                                  Page 63

This report was written with attention to the      and foundations in America to build a huge
involvement and influence of ALEC at the           and complex - yet tightly defined - network.
federal level(s) of our government. Most
have been unaware of these activities and          Over the past two decades this network
the changes that have occurred due to that         began to merge corporate will with political
influence.                                         control. Now this “will and control” have
                                                   become concentrated in the hands of a few
It was our intent to focus only on the             multi-national companies, their wealthy
impact(s) of ALEC in regard to the                 owners and willing politicians retained to
Congressional corruption arising from their        enable continued prosperity – for this
activities. The vast size of ALEC’s network        CABAL.
and its involvement in both the public and
private sectors on all levels has made             While this was happening, we paid little
concentrating upon federal issues difficult to     attention to this network, unaware even of
accomplish.       Since ALEC’s network             their existence - until January of this year.
operates smoothly at all levels of local, state,   Once the CABAL swept into many state and
national, international governments and in         Congressional seats, they immediately
the private sector, their influence touches        began to flex their political and corporate
and impacts each equally.                          muscles.       Quickly they began openly
                                                   attacking the very foundations of democracy
For nearly forty years ALEC and its                by attacking public education, healthcare for
conservative founders, members, supporters         the masses, worker’s rights and a myriad
and benefactors have remained well under           assortment of other important issues.
the radar of the media, investigators and
those who involve themselves in monitoring         Our research uncovered Charles and David
and tracking government activities. Quietly        Koch’s pursuits of funding this CABAL.
and with deft determination they worked in         They do so in exchange for weaker more
conjunction with corporations, some                corporate       friendly       environmental,
religious groups and the wealthiest families       economics, privatization and anti-worker
                                                   laws. To assist in these efforts they bought a

© 2011 – Voter’s Legislative Transparency Project                                       Page 64
strong ultra conservative voice in politics     urges those receiving this report to put
through the Tea Party. Through these            Heubeck’s lengthy conservative diatribe on
efforts they have increased their influence     their suggested reading list. This really is a
upon the government and legislation             roadmap that is being closely followed and
exponentially.                                  implemented by those identified as being a
                                                part of the Koch/ALEC network.
While some are aware of the activities that
have begun to surface about interference        ALEC is a tax exempt charity operating
upon our state laws and legislators by Koch     under an IRS 501 (c)(3) exemption as a
and ALEC, few realized that such                charity. The IRS and Congressional rules
interference was also ongoing at the federal    governing such an organization’s contact
level. Fewer still had any idea these           with or involvement within Congressional
activities by conservative individuals,         matters are more stringent than at the state
organizations or think tanks involved our       level. Once ALEC’s Legislative members
mainstream media – and only a handful           are elected to Congress and move away
were aware of the connections to and            from their positions as state lawmakers, they
influence upon our Supreme Court.               resign their “official” ALEC membership.
                                                This is to avoid any appearance of - or
Clearly as this report provides, ALEC and       actual - influence at the Congressional level
the CABAL have created a well organized,        through ALEC.
well funded and dedicated membership
already in place and functioning to exert       This Report reveals that though ALEC’s
their ideologies upon society.       If after   Alumni are no longer “official” members of
reading this you come to the conclusion that    the organization, they do in fact remain
they are operating as if they have a business   dedicated to and supportive of ALEC’s
plan or road map they follow, you are right.    pursuit of legislative pursuits, initiatives and
                                                conservative ideology.         Many of the
In 2000 Eric Heubeck wrote and published a      relationships they formed with corporate
treatise titled: “The Integration of Theory     members of ALEC as state lawmakers are
and Practice: “A Program for the New            continued once they advance to the level of
Traditionalist Movement”24. VLTP strongly       a Congressional seat.


© 2011 – Voter’s Legislative Transparency Project                                      Page 65
All of this leads to the conclusion that
though ALEC has continuously claimed             forces/international-relations/international-
they are a “charity” and tax exempt, their       delegates/ at ALEC for a complete listing of
behavior refutes that. By meeting with state     the eight countries represented by seventeen
and federal legislative committees to argue      International Delegates.
on behalf of model legislation they wrote
and are supporting, their actions are not
charitable – rather out and out lobbying.

Secret membership lists, hidden legislation
prepared and ready to be sent out to
Congress and individual states is not
something typically done by charitable
organizations. Wining, dining and lavishing
gifts upon Supreme Court Justices and
                                                 Moldovan Prime Minister Vlad Filat and ALEC Executive
federal judiciary used to be unheard of and
                                                 Director Ron Scheberle discuss business opportunities
not condoned – either by the Judges or
                                                 in Moldova at a roundtable at ALEC on January 21, 2010.
society. In today’s conservative Koch and
ALEC atmosphere, such has become the

Recently ALEC’s sister charity in the UK,
Atlantic Bridge, just collapsed, taking
Britain’s Defense Minister with it amidst a
huge scandal. Because of this revelation -
clarified on a consulting basis at the request
of a British principal by Robert Sloan of
VLTP - many were suddenly made aware
that ALEC was involved in the UK scandal
and had established a large international
footprint, carrying their branding to many       ALEC briefing with representatives from the People’s
                                                 Republic of China’s Commerce Ministry on December 7,
other countries; Poland, Australia, New          2009
Zealand, Germany, Moldavia and even
China. Visit the following page link:

© 2011 – Voter’s Legislative Transparency Project                                            Page 66
Finally, by showing the clear associations to    through ALEC. If we do not stop them here
and upon everything from state legislation to    and now, we will be responsible for our own
Congress, the Supreme Court and beyond,          continued losses of rights and freedoms as
we now have a more complete picture of the       granted to us by The Constitution and the
power, influence and activities that have        founders of our country.
pushed our very democracy to the breaking
point. In the fight over taxation of the         The first and most important step is to fully
wealthy, the debt ceiling, immigration,          expose this CABAL. The second step is
worker’s rights and privatization - the faces    coming in less than a year: abolish them.
of those behind the argument on the              VOTE. Vote each and every one of the
Conservative/Republican       side    become     ALEC enabling state legislative members
clearly     visible.    The      corporations’   and the Congressional Alumni out of office.
individuals,     organizations     and     the   It does not matter who we vote for to take
mechanisms used are visible as well.             their place – as long as whoever it is, they
                                                 do not fall under the sway and influence of
Through legislation, paid interns, whispers      ALEC. The third step is to stop corrupt
into the ears of ALEC members in the State       lobbying at all levels of government. There
legislatures and ALEC "alumni" in the U.S.       must be transparency about who writes our
Congress, and expensive and corruptive           legislation, and why a specific bill was
influence(s) within the highest courts in the    written.
land, the CABAL has taken away many of
our freedoms – and are looking to wrench         Those identified in this Report are the
the rest from us.                                enablers who have fought for deregulating
                                                 banks, mortgage companies, investment
For the past 40 years it has been America        houses, more mass incarceration, and
that has suffered at the hands of this           privatization of our public assets. They have
network. Now with our money in their             worked quietly behind the closed doors of
pockets, our homes under mortgage title to       ALEC and our Houses of Congress to get
them, and our ability to resist through          their way. Now that we know – we must do
activism and demonstrations decimated by         everything in our power to put an end to it
lack of access to the MSM, they have turned      and return our democracy to a place of
their focus upon the rest of the world –         respect and envy upon the world stage.

© 2011 – Voter’s Legislative Transparency Project                                    Page 67
                                                 End Notes
          Brother of William F. Buckley, founder of the National Review Conservative Magazine.







      el_Legislation1 (Note: ALEC has restricted access to their model legislation to members only. This
      link is to a capture of the page from April 2011).

© 2011 – Voter’s Legislative Transparency Project                                                Page 68
        Bob Williams, Kevin Bogardus Koch's Low Profile Belies Political Power: Private oil company
      does both business and politics with the shades drawn, Center for Public Integrity, reposted March
      31, 2006
      blunt-joins-the-ashcroft-group-llc/ (Scroll down to find Schauder)
           family foundations
  (scroll down on the left)

© 2011 – Voter’s Legislative Transparency Project                                             Page 69


           Richard Fink

© 2011 – Voter’s Legislative Transparency Project                                            Page 70

  (starts on page 147)

© 2011 – Voter’s Legislative Transparency Project                                              Page 71

© 2011 – Voter’s Legislative Transparency Project                                          Page 72

      98 (photo of Henry Butler speaking at an
      ALEC Summit meeting).
      99 (showing grants from Koch, Olin, Coors,


© 2011 – Voter’s Legislative Transparency Project                                                 Page 73
  , (Chapter 3 pg. 25).
   (pg‘s 9-10).

© 2011 – Voter’s Legislative Transparency Project                                                  Page 74
            Institute for Justice
         McDonald v. City of Chicago,
      141 (video of Mark Behrens addressing MO.
      Legislature in support of ALEC‘s Asbestos and Silica Claims Priorities Act.

© 2011 – Voter’s Legislative Transparency Project                                                 Page 75

© 2011 – Voter’s Legislative Transparency Project                                                Page 76

© 2011 – Voter’s Legislative Transparency Project                           Page 77

Description: 2011 Analysis Report on the involvement of ALEC at the Congressional and Supreme Court levels of the federal government. This huge network that makes up a Koch funded and led CABAL works to enact state and national legislation describes as