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American Legislative Exchange Council - Federal Government and Corrupt Practices

Independent Analytical Report

VLTP is a non-profit organization working to make legislation transparent at every level of government. We are dependent upon the contributions, donations and support of our members and others who make this kind of analysis possible. To contribute or support us, please visit where you can make a contribution. You can also email a request for information about us to: or contact us to donate at: Your gifts, donations and contributions are tax deductible.

By Bob Sloan, Director 2011 Voters Legislative Transparency Project Page 1

- About Voters 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 VLTPs 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 ALECs 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 sociallyconscious 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

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Preface Introduction ALEC Alumni Forum Federal Forum Task Force Federal Laws Enacted by ALECs Federal Forum Task Force Influencing and Corrupting the Federal Judiciary Supreme Court Interference Appearances as Friend of The Court to Sway Opinions and Judicial Rulings on Key Issues Institute For Humane Studies Kochs Intern Program(s) Koch Institute Intern Program Institute For Humane Studies Journalism Internship(s) Charting Relationships Conclusion

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End Notes

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Copyright November 2011 by the Voters 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 Voters Legislative Transparency Project 7515 Ruskin Place, Indianapolis, Indiana - 46226 (317) 608-3698 - Cell. (317) 400-5674

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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 TFs 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 ALECs 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.

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Appearances as Friend of The Court to Sway Opinions and Judicial Rulings on Key Issues
The mechanics of ALEC and their affiliates 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 i nternships 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 CABALs vast influence into focus and provides steps to bring about a reversal of the erosion of our democracy.

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As 2011 comes to a close many Americans have been made aware of the American Legislative Exchange Council (ALEC). In the past twelve months more information about ALEC has come to the attention of voters than was previously known over the thirty-eight years of ALECs existence. Investigative journalists, researchers, bloggers and activists worked together to bring ALEC and their activities to the forefront of political discussion here in 2011. Americans learned about the legislative efforts, initiatives and manipulations exercised by ALEC here in the U.S. over the past four decades. Voters have been made aware of the inner workings and agenda of ALEC; the free market, pro-corporate, conservative neo-con ideologies and federalism that serve as core values, beliefs and activities of this nonprofit corporation. The public was also made aware of ALECs pursuit of implementing corporate written legislation in every state through a vast network of conservative state lawmakers, lobbying and supporting campaign contributions made by those companies and foundations that stand to profit from the laws participating legislators enacted. By mid-2011 those who funneled tens of millions of dollars into conservative political efforts advanced by ALEC and their affiliates, were exposed. Huge multi-national corporations, private foundations, wealthy and influential individuals were identified as providing the funding necessary to advance an ultra conservative agenda nationwide. We learned Charles and David Koch sit at the top of a long list of donors funding ALEC and dozens of affiliated institutes, organizations and groups within a large network. Though ALEC and most of those network affiliates keep members and benefactor names unpublished, researchers were able to uncover and identify a large number of ALECs members, enablers and funders. In July 2011 the Center for Media and Democracy released a cache of previously unpublished model legislation written and held by ALEC. These documents were turned over to an activist (by a whistle blower) in Cincinnati in April and then provided to CMD for analysis and publication. CMD established a website where these documents were made available to professional and citizen journalists, researchers and the public. Concurrent with the release of documents several articles were published jointly between CMD and The Nation magazine. Journalists provided an analysis of the ALEC documents and how the legislation impacted upon voters in those states where they became law.

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The founders and current members of the Voters Legislative Transparency Project are also members of Daily Kos. We actively participated in research, writing and activism involving ALEC over the past year and some of that research was used in the ALEC Exposed investigative project released by CMD and The Nation. Some of that early state research indicated the activities of ALEC and the Koch affiliated network were not limited to just conservative pursuits at the state level. Applying research protocols wed developed in exposing ALECs

involvement with state legislation and their affiliates, VLTP looked at the possibility of this networks influences at the federal level and beyond our shores. The following analytical report is the result of that research. Our findings conclusively demonstrate ALEC is merely one facet of a larger and more onerous network with tentacles reaching into Congress and overseas. Today this CABALs activities and influence are as multi-national as the corporate money behind them.

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

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The scandals of Lukens and Jenkins have been followed by similar scandals involving ALEC members/alumni such as Representative Tom DeLay (R TX) and Representative Bob Ney (R 3 OH) (ALEC Alumni) who along with congressional staffers were implicated in the Jack Abramoff lobbying scandal and sentenced to federal prison. Former U.S. Representative Katherine Harris was an ALEC member when she served as a FL. Representative. She was also implicated in the Abramoff/DeLay/Ney scandal, having received $6,000 of that money in campaign contributions. Harris has several other scandals in her past from her time as a FL. 4 Representative and active ALEC member . Former U.S. Representative Mark Foley (R-FL) who was forced to resign his seat in 2006 due to a sex scandal involving interns and 5 Congressional pages is an ALEC Alumni. The foregoing represents just the top ALEC alumni who have been involved in corruption and scandals. Many more have fallen to corruption and scandals over the years. Such is their belief of being above the law. Today ALEC proudly attributes the formation of 6 ALEC to Weyrich, Barnett, Henry Hyde and a handful of others. Their site has eradicated most references to those members or alumni involved in scandals, indictments or sent to prison. Over the years ALECs membership and agenda evolved to what it is today. Though they have always maintained their purpose to exist is based upon a desire for; free markets, limited government, federalism, and individual liberty, their pursuit of obtaining those goals has

become intermingled with the goals of others. Once they opened membership to corporations and businesses to attract funding, the primary goal of these corporate members profits became all important and began to control ALECs pursuits. Today state legislators no longer have overall control of the agenda of ALEC. Instead control 7 is shared equally between a Board of Directors (state lawmakers) and a Private Enterprise 8 Board consisting of corporate executives and/or their representatives and lobbyists. In reality corporations submit ideas that will enrich their bottom line and lawmakers put those ideas into a legislative format. With an equal vote the corporatists and lawmakers then decide whether to adopt the final written legislation as model 9 bills or reject it. If adopted that legislation is then sent out to the states with the legislators and proposed as new laws. Thousands of these model bills have been adopted and introduced in every state in the U.S. Hundreds have become law - state by state. Today we see evidence of their abilities in Wisconsin, Indiana, Ohio, Maine, Florida and several other states in legislation on school privatization, voter ID legislation, privatization, immigration laws and repeal or elimination of workers rights, healthcare repeal and collective bargaining. The foregoing are activities that have become common knowledge about ALEC through articles and the ALEC Exposed project. What follows are activities that have either escaped discovery altogether or were previously not attributed to ALEC and their Charles and David Koch funded CABAL.

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ALEC Alumni Forum

From 1999 through 2006 U.S. Dennis Hastert was Speaker Hastert is an ALEC alumnus member during the three terms 1 state Representative in Illinois. Representative of the House. having been a he served as a

In 2001 ALEC created their Alumni Forum. This initiative was launched with a specific purpose in mind: ALECs Alumni Forum is charged with developing a national forum to encourage improved communications among current and former ALEC members. Alumni Forum activities will include special investigations and speaking engagements at major ALEC events, and joint policy members with state and national leaders. . . . Through the Alumni Forum program, ALEC will seek the support of its former members in the development of reforms that reflect the principles of the organization at all levels of government In addition, nine sitting governors, including Frank Keating (Okla.), John Engler (Mich.) and Bill Owens (Colo.) as well as more than 80 Members of the U.S. House of Representatives and U.S. Senate are former ALEC members, and these numbers are

steadily growing. In the last year alone, three ALEC members were elected to the U.S. Congress, and many more are campaigning in the 2002 election year. Distinguished alumni include Assistant Minority Leader Don Nickles (R-Okla.), Speaker of the House Dennis Hastert (Ill.), Majority Whip Tom DeLay 2 (Tex.), Deputy Majority Whip Mark Foley (Fl.), and Education and the Workforce Committee Chairman John Boehner (Oh.). Health and Human Services Secretary Tommy Thompson and White House Chief of Staff Andrew Card are ALEC alumni who were active members when they were state legislators." It is possibly more than coincidental that this new ALEC Alumni Forum was first formed concurrently with the election of George Bush as President. President H.W. Bush spoke to ALEC at the Old Office Building at the White House in 11 1991 on federalism and state rights . Accompanying President Bush at that event was a future ALEC award recipient, Dick Cheney. Cheney received the Thomas Jefferson 12 Freedom Award from ALEC in 2003 .

Important to note is fact that since Hasterts serving as the Speaker of the house, every Republican Speaker since has been affiliated with ALEC (alumni or supporter Boehner and Gingrich).

As with the Speaker the Majority Leaders have also been ALEC alumni.

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George Bush followed in his fathers footsteps regarding ALEC once he became President and took office in 2001. He spoke at and on behalf of 13 ALEC during and after his term as President .

And spoke at another ALEC event in 2007:

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.)


He also received ALECs Thomas Jefferson Freedom Award in 2005:

When George Bush came into the Presidency in January 2001, he brought Donald Rumsfeld (ALEC Corporate Alumni) and John Ashcroft with him as his Secretary of Defense and Attorney General. Ashcroft in turn brought with him one of his Congressional staffers, Andrew 3 Schauder and made him a Deputy Attorney General. 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 15 prison .

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

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Two days prior to the trial of Koch and their executives, Ashcroft dropped 88 of the charges, issuing a settlement and plea bargain, in which the company pled guilty to falsifying documents. All major charges were dropped, and Koch and Ashcroft settled the lawsuit for a fraction of the $350 million they should have paid. All charges that could have sent the Koch executives to prison were dropped with that agreement. What was unknown at the time was that Ashcroft though never serving as a state legislator had an association with ALEC and Koch Industries. In 1987 after serving as Missouris Attorney General, Ashcroft became the Governor of Missouri. That year ALEC selected the city of Milwaukee, WI. to host their annual summit. Cochairs of that event were ALEC member Rep. Donald Stitt (R WI), ALEC founder, Rep. Donald E. Lukens (R-Oh) and MO. Governor John 16 Ashcroft . In 1987 Koch Industries was an ALEC member and present at the Summit in WI. There are hundreds of links on the Internet to this particular case involving Koch and Ashcroft but none of them mention the earlier involvement of Ashcroft with ALEC and Koch and the possibility that such a relationship may have figured into the prosecution in the latter case. In Michael Moores book, Stupid white men --

had with Koch dating back to ALECs 1987 event, the campaign contributions to President Bush or through the influences exerted by the newly formed Alumni Forum - is unknown. However each, present an appearance of impropriety in such a huge case against one of ALECs most influential corporate members. This also wasnt the end of the Koch/Bush association regarding our environment and EPA regulations. Two years following the deal with Koch Industries, President Bush successfully appointed a Koch employee, Alex Beehler, as assistant deputy under secretary of defense for Environment, Safety and Occupational Health. Beehler was previously Koch Industries' director of environmental and regulatory affairs and concurrently served at the Charles G. Koch Foundation as vice president for environmental 17 projects and was in that position at the time the DOJ was prosecuting Koch (according to his 18 professional resume) . Beehler was later nominated and re-nominated by the Bush White House, to become the U.S. Environmental 19 Protection Agency's Inspector General , but Senator Barbara Boxer was successful in 20 opposing that appointment . Beehlers biography reveals he was not only a Koch employee but was also a former DOJ attorney:

and other sorry excuses for the state of the nation!, Moore points out that the Kochs
contributed $800,000 dollars to the Bush and other Republican campaigns but failed to discover the 1987 ALEC/Koch/Ashcroft connection. Whether the leniency offered to Koch Industries by Ashcroft in 2001 was due to a relationship he

Mr. Beehler maintains a strong background in federal environmental policy having served in the Department of Justice as a senior trial attorney for environmental enforcement and at the Environmental Protection Agency as a special assistant for legal and enforcement counsel.

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Another deputy AG during the Koch prosecution in the early 2000s was the previously mentioned Andrew W. Schauder. From 2001 to 2004 Schauder served at the U.S. Justice Department as Special Assistant to Ashcroft in various capacities including in the Office of Legal Policy, the Office of Legislative Affairs, and the Office of 22 Intergovernmental and Public Liaison . Schauder was recruited from DOJ in 2005 by ALEC as the creator and first Director of the 23 Federal Forum Task Force .

for the American Legislative Exchange Council (ALEC), the nations largest non-partisan, individual membership organization of state legislators. He created and managed a federal outreach program that increased the visibility and effectiveness of the organization and its members. Andrew built unprecedented levels of participation and engagement between ALECs public and private sector members and Congress. From 2001 to 2005 Andrew served at the U.S. Justice Department as Special Assistant to the Attorney General in various capacities including in the Office of Legal Policy, the Office of Legislative Affairs, and the Office of Intergovernmental and Public Liaison.
With the hiring of Schauder, ALEC renamed the ALEC Alumni Forum, turning it into their Tenth Task Force and through alumni increased 4 involvement at the U.S. Congressional level.

Andrew Schauder has 10 years of experience developing and maintaining strategic relationships at the federal, state and local levels to meet the goals of senior government officials as well as private sector companies. Andrew served as Acting Chief of Staff and Deputy Chief of Staff at the U.S. Department of Labor under Secretary Elaine L. Chao. His job included managing and directing policies and programs at the $11 billion cabinet agency that achieved record results in protecting the health, safety, wages, and retirement security of the nations 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 Department of Labor stakeholders including state and local legislators, governors, mayors and membership organizations as the Senior Intergovernmental Officer. Before his tenure at DOL, Andrew was the Director of Federal Affairs

After leaving the DOL Schauder moved to the private sector as a lobbyist for Ashcrofts DC Lobbying firm. He now works/lobbies for American Traffic Solutions and in that capacity attended ALECs 2011 Annual Meeting and was successful in getting ALECs members to approve model legislation beneficial to American Traffic Solutions: w_Schauder

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Federal Forum Task Force

In 2005 ALEC determined they would upgrade the Alumni Forum and rename it the Federal Forum. In late 2005 they published a first issue 24 of the Federal Forum and disseminated it to their Congressional alumni. Through this document referred to as a guide ALEC provided their alumnus with the initiatives they are pursuing at the state level and provided them with pre-written arguments/instructions on how to pursue the same initiatives at the federal level. There can be no doubt about ALECs intent through this tenth Task Force as the opening statements by their top alumni, Speaker Dennis Hastert and Mark Green inform: "The members of ALEC are true pioneers in advancing commonsense, conservative ideas. For 30 years many of these ideas have transcended from state capitols to Washington." Force was charged with carrying forward ALECs initiatives to the federal legislative members of Congress: Due to the success of ALEC

-- Speaker Dennis Hastert, ALEC alumnus ALEC is an organization of state legislators and state leaders, and it is fiercely proud of its mission, but I have come to believe, as some of my colleagues have as well, that ALEC must develop a new stronger presence on the federal level." -- U.S. Congressman Mark Green, ALEC alumnus
The Co-Chairs chosen to lead this Task Force were ALECS alum; U.S. Rep. Mark Green and U.S. Senator George Allen. Again, the Executive Summary leaves no doubt this Task

legislative leaders in the states, their careers are expanding beyond the state legislature. ALEC has developed a program for its alumni members: the ALEC Federal Forum. The focus of the Federal Forum is to build a productive bipartisan working relationship among current and former ALEC members at all levels of government. Serving as Federal Forum Co-Chairmen, Senator George Allen and Congressman Mark Green continue their dedication to ALECs mission at the federal level. Bringing state legislative leaders into contact with their congressional counterparts is the cornerstone of the Federal Forumenabling ALEC members, both state and federal, to secure and protect a sound and balanced government. In ALECs continued service and assistance to its state and federal members, this guide serves as a reference to ALECs congressional priorities, state legislative action, and policy experts, all based on the Jeffersonian principles of free markets, individual liberty, and limited government.
The initiatives they wanted pursued at the federal level in 2005-2006 were provided in this Guide and given as Presidential Initiatives ALEC supported:

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PRESIDENTIAL INITIATIVES SUPPORTED BY ALEC MEMBERS Establishing and Maintaining Health Savings Accounts Providing Health Savings Accounts for State Employees Providing Health Savings Accounts for Tax Credits Medicaid Reform; Providing for and Supporting Medicaid Waivers Supporting HIFA Waiver (Healthcare info for all Supporting BRAC (Base Closure and Realignment Commission) Providing for Public Education on HighDeductible Health Plans Urging/Supporting Federal Balanced Budget Amendment Urging Repeal/Abolishment/Amendment of Federal Estate Tax Supporting Personal Retirement Accounts Supporting Federal Enforcement of Immigration Laws Exempting Health Savings Account Monies from Creditors Abolishing/Repealing Death Tax Support of Free Trade - Taiwan Support of Free Trade - CAFTA Social Security Reform

Supporting the USA PATRIOT Act Supporting No Child Left Behind (NCLB) Medical Malpractice Liability Reform Act Class Action Improvements Act Supporting the Clear Skies Initiative Urging/Supporting Tax Cuts and Repealing Taxes Supporting ANWR (Artic National Wildlife Reserve) Supporting Offshore Drilling Supporting President's position on the Kyoto Protocol
ALEC instructed the alumnus to pursue in Congress, specific model legislation and initiatives developed by the other nine (9) state Task Forces that included corporate members:

ALEC MODEL LEGISLATION AND RESOLUTIONS ENCOURAGING JEFFERSONIAN PRINCIPLES AT THE FEDERAL LEVEL Resolution on Congressional Mandates & Defective-Product Liability Protection Resolution Supporting Expansion of Foreign Markets for Americas Small Businesses Resolution Urging Congress to Modernize Social Security with Personal Retirement Accounts Resolution Opposing Federal Intervention in Insurance Regulation

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Resolution Urging Congress Not to Amend or Repeal the McCarran-Ferguson Act Resolution in Support of the USA PATRIOT Act Defense of a Free Market and Public Safety Resolution Individuals with Disabilities Education Act Resolution Resolution Calling for Reform in the FDA Resolution Concerning the Prohibition of Imported Prescription Drugs Resolution on Federal Health Insurance Reform Legislation Resolution on Quality Managed Care in a Litigious Marketplace Resolution Supporting Private Market Initiatives for Childrens Health Insurance Resolution Urging Congress to Create Private Financing of the Medicare Program Reverse Mortgage Enabling Act Resolution in Support of the Healthy Forest Initiative Resolution on Reform of New Source Review Regulations Resolution in Opposition of Carbon Dioxide Emission Standards Resolution Encouraging Development of Liquefied Natural Gas Resolution on Renewable Energy Resources in a Competitive Electricity Marketplace

Resolution Supporting the Private Ownership of Property Resolution on Environmental Laboratory Privatization Resolution on Local Jurisdiction Consent of National Monument Designation Federal TABOR Resolution (Taxpayer Bill of Rights) Internet Taxation Resolution Resolution in Favor of a Federal Flat Tax Resolution in Favor of a U.S. Constitutional Amendment on Judicial Taxation Resolution on State and Local Business Activity Taxes Resolution Opposing the United Nations Drive for Global Taxes Resolution to Repeal the Federal Unified Gift and Estate Tax Resolution Urging Congress to Aid State Tax Reform Resolution Urging Congress to Reject Authorization of the Streamlined Sales Tax Project Resolution Supporting Pro Consumer Public Policy for Voice, Video, and Data Services Resolution on United States Encryption Export Restrictions Resolution Opposing Government Intervention in the Multichannel Video Programming

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Resolution on States Rights; Vehicle Weight and Size Regulations Resolution on the Federal Highway Trust Fund Resolution on Federal Trade Promotion Authority Resolution on the Use of Transportation Taxes Resolution on Unilateral Trade Sanctions Resolution to Repeal the Non-Transportation Federal Fuels Tax Statement of Principles on Federally Mandated Blood Alcohol Level
The foregoing represents a long wish list advanced by corporate interests through ALEC at state levels and through the Federal Forum Task Force directly into the U.S. Congress. In addition to the foregoing legislative initiatives, ALEC also instructs their alumnus on specific Policy Issues they wanted pursued at the federal level and provided them with the arguments to use: POLICY INITIATIVES FEDERAL

Welfare Reform Reauthorization

As if this werent enough for the alumn us to pursue at the Congressional level, ALEC came up with a Liberty Agenda for the alumni to also advance: AGENDA FOR LIBERTY LOWER TAXES & LIMITED GOVERNMENT

Tax and Expenditure Limitation Act Commission on Economy and Productivity in State Government Act Truth in Spending Act Efficiency in Government Act Sales and Use Tax Collection Protection Act State Internet Tax Freedom Act Healthcare Reform Health Savings Account Act Health Care Tax Relief and Equity Act High-Risk Health Insurance Pool Model Act Medicaid Consumer Directed Care Act


Federal Tax Relief & Reform Medicaid Reform Energy Sustainability Access to Public Lands Tort Reform - Asbestos Lawsuit Abuse Reduction Act (LARA) Free Trade Commonsense Consumption Act School Choice, Individuals with Disabilities in Education Act (IDEA), and No Child Left Behind Act (NCLB)

Verifiable Science Act Power Plant Siting Act State Regulatory Responsibility Act Conditioning the Regulation of NonPollutant Emissions on Science Electricity Transmission Principles A Resolution Encouraging Development of Liquefied Natural Gas


Alternate Certification Act Charter Schools Act

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Family Education Tax Credit Act Parental Choice Scholarship Act Special Needs Scholarship Act Virtual Schools Act

Andrew W. Schauder (202)466-3800 x 287



Private Attorney Retention Sunshine Act Appeal Bond Waiver Act Class Action Improvements Act Legal Consumers Bill of Rights Jury Patriotism Act Commonsense Consumption Act Intrastate Venue Shopping Reform Act Commonsense Scientific and Technical Evidence Act Constitutional Limits on Punitive Damages Act Asbestos and Silica Claims Priorities Act

Kristin Armshaw Task Force Director (202)466-3800 x 265 Victor Schwartz Task Force Private Sector Chair & Advisor Shook, Hardy & Bacon Barry Bauman Task Force Advisor Lawyers for Civil Justice Bob Williams Task Force Advisor Evergreen Freedom Foundation

If the alumni had difficulty pursuing the foregoing initiatives and agenda, ALEC provided them with contact information for Policy Experts who also provide expert testimony to the U.S. Congress. Here is a list of the ALEC personnel and affiliates they were instructed to contact for more information or assistance (Bold indicates affiliates of Koch): EXECUTIVE DIRECTOR

Trevor Martin, Task Force Director (202) 466-3800 x 253 Geoffrey Segal Task Force Advisor Reason Public Policy Institute

Duane Parde (202) 466-3800 x 241


Trevor Martin, Task Force Director (202) 466-3800 x 253 Adrian Moore Task Force Advisor Reason Public Policy Institute

Sandy Liddy Bourne (202) 466-3800 x 245


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Lori Drummer, Task Force Director (202)466-3800 x 251 Robert Enlow Task Force Private Sector Chair & Advisor Milton and Rose D. Friedman Foundation


Christie Raniszewski Herrera, Task Force Director (202)466-3800 x 202 Sue Blevins, Task Force Advisor Institute for Health Freedom Bob Moffit, Task Force Advisor The Heritage Foundation Richard Teske, Task Force Advisor

Rep. Scott Jensen (WI), Task Force Advisor Alliance for School Choice Dr. Richard Vedder, Task Force Advisor Ohio University TRADE & TRANSPORTATION Trevor Martin, Task Force Director (202) 466-3800 x 253 Robert Poole, Task Force Advisor Reason Public Policy Institute

Michael Keegan, Task Force Director (202)466-3800 x 266 Chris Atkins, Task Force Advisor Tax Foundation Dr. Richard Vedder, Task Force Advisor Ohio University

Daniel R. Simmons, Task Force Director (202)466-3800 x 229 Sallie Baliunas, Task Force Advisor Tech Central Station Marlo Lewis, Task Force Advisor Competitive Enterprise Institute

Michael Keegan, Task Force Director (202)466-3800 x 266 Adam Thierer, Task Force Advisor Progress & Freedom Foundation

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Jim Glassman, Task Force Advisor American Enterprise Institute Kent Lassman, Task Force Advisor Progress & Freedom Foundation

not been successfully implemented at the federal level are still being pursued by ALECs alumnus. These alumni were in effect acting on behalf of ALEC in these pursuits. Though they were not declared as card-carrying ALEC members, they were just that. ALECs own by-laws and charter prohibited involvement at the federal level by members as do the Ethics Rules of both houses, yet through the Federal Forum they have intentionally ignored all the rules and provisions against such involvement. A matter that exacerbates these prohibited activities is the ability to carry the agenda and initiatives of outside, non-governmental organizations right into the halls of Congress. Most of these are founded, funded or both by Charles and David Koch or their numerous foundations: Charles G. Koch Charitable Foundation David H. Koch Charitable Foundation Fred C. and Mary R. Koch Foundation Claude R. Lambe Charitable Foundation Koch Cultural Trust

Sandy Liddy Bourne, Working Group Advisor Director of Legislation and Policy (202)466-3800 x 245
It was not simply the professional personnel at ALEC the alumni were to contact for advice, guidance or help with pursuing the issues at the federal level. They were instructed to contact individuals with the Progress and Freedom Foundation, American Enterprise Institute, Tax Foundation, the Heritage Foundation, Reason Foundation and Reason Public Policy Institute, Competitive Enterprise Institute, Milton and Rose D. Friedman Foundation, Alliance for School Choice and of course Victor Schwartz head of the lobbyist group at Shook Hardy and Bacon Obviously all of these named think tanks, foundations and institutes are conservative. More importantly they all receive funding from Kochs family foundations and his moneyed affiliate foundations and, Koch provides paid interns to all of those just named entities, and dozens more (as shown elsewhere in this Report). Looking at the issues, initiatives, agenda, policies and pursuits provided to the alumnus through the Federal Forum Task Force, our research reveals that most of these which have

Which are all held under the Koch Family 25 Foundations . The foundations, institutes and individuals the alumni are referred to are all known to be associated with the Koch brothers and their ultra conservative ideology and pursuits. Below is a list of those organizations, institutes and think tanks funded with Koch and their affiliates money: Alex C Walker Educational & Charitable Foundation American Council of Trustees and Alumni

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American Legislative Exchange Council Atlas Economic Research Foundation Ajax Foundation Bill of Rights Institute Center for Excellence in Education Foundation for Research on Economics and Environment (FREE) Fund for American Studies Heritage Foundation Institute for Energy Research Institute for Humane Studies (Geo. Mason University) Mercatus Center at George Mason University National Center for Policy Analysis National Federation of Independent Business Legal Foundation National Taxpayers Union Foundation Reason Foundation Students for Liberty Bluegrass Institute for Public Policy Solutions Foundation for Economic Education Foundation for Individual Rights in Education Illinois Policy Institute Jack Miller Center John W. Pope Civitas Institute John William Pope Foundation Lucy Burns Institute Sam Adams Alliance South Carolina Policy Council Texas Public Policy Foundation Acton Institute American Enterprise Institute American Spectator Foundation Americans for Tax Reform Foundation Boys and Girls Club of South Central Kansas Cato Institute Center for College Affordability and Productivity Commonwealth Foundation Competitive Enterprise Institute

Federalist Society Free to Choose Network Galen Institute George C. Marshall Institute George Washington University Regulatory Studies Center Hudson Institute Independent Women's Forum John Locke Foundation John William Pope Center for Higher Education Mackinac Center for Public Policy Network For Teaching Entrepreneurship (pg. 9) Philanthropy Roundtable State Policy Network Victims of Communism Memorial Foundation Washington Legal Foundation Youth Entrepreneurs Kansas

Much of the legislation and resolutions the alumni were instructed to pursue are/were financially beneficial to not only the Koch brothers (personally), but to ALECs corporate membership; ExxonMobil, AT&T, Koch Industries, PhRMA, GlaxoSmithKline, Johnson and Johnson, their Insurance company members, etc. Not only is Kochs interests and that of the corporate members assisted through this Federal Forum, but also other Conservative foundations which help fund the foregoing list:

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Lynde and Harry Bradley Foundation, Scaife Foundations, John M. Olin Foundation, Inc., M.J. Murdock Charitable Trust, Castle Rock Foundation, JM Foundation, Richard and Helen DeVos Foundation,

ExxonMobil Foundation, GE Foundation,

The importance of these affiliated foundations, institutes and organizations which fund and enable ALEC is shown in the subsequent sections.

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Federal Laws Enacted by ALECs Federal Forum Task Force

Research we have completed identifies two (2) important pieces of federal legislation which have been enacted since the Federal Forum was created; The Animal Enterprise Terrorism Act 5(AETA, S. 1926 and H.R.4239 2005). This legislation amends the Animal Enterprise 26 Protection Act of 1992. The second piece of legislation is the Postal Accountability and Enhancement Act (H.R. 6407 - 2006). In each case ALEC model legislation was proposed in both Houses by ALEC Congressional alumni and the House rules manipulated to allow for passage and both were subsequently signed into law by President Bush. In the AETA legislation, ALEC Alumni Senator James Inhofe introduced this legislation to 27 amend the existing law, in October 2005. This federal legislation is based upon ALECs 2003 Model Legislation titled Animal and Ecological Terrorism Act (AETA)6.28 In the House the bill was sponsored by Republican WI. Reps Tom Petri and James Sensenbrenner. The purpose of this legislation was to restrict activists from interfering with companies or research facilities using animals for experiments, biomedical and pharmaceutical research. It would provide stiff penalties for any activism in support of animal rights and allow protesters and demonstrators to be jailed and in many cases sent to prison for their actions. Because this legislation sought to diminish citizens rights to protest and demonstrate under the 1st Amendment, there was a lot of resistance to the proposed law. Sponsors issued fact sheets trying to assure fellow lawmakers and voters alike that the threats to 1st Amendment 29 rights were a myth . By the time this legislation advanced through Congress, seven additional ALEC Alumni in the 30 house signed on as co-sponsors. The driving force behind AETA was the Animal Enterprise Protection Coalition (AEPC) founded by the National Association of Biomedical Researchers (NABR). This AEPC was created specifically to 31 support ALEC's legislation by NABR. The AEPC Members included corporate pharmaceutical powerhouses like PhRMA, Pfizer, Wyeth, GlaxoSmithKline, and industry groups like the Fur Commission and National 32 Cattlemens Beef Association. The coalition was put together by NABR and its members specifically to advance this one piece of legislation and was disbanded once the legislation passed. 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 33 Private Enterprise Board. Also other ALEC corporate members including GSK, Pfizer, Johnson and Johnson and Bayer are members 34 of PhRMA further solidifying the connections.

For comprehensive study on AETA visit 1_53.pdf 6 Due to our inquiries to ALEC in our research, all reference to this model legislation has been removed from ALECs website within the past 30 days

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AETA was advanced through the House and was placed on a Fast Track (suspending the House rules), meaning there was mutual support from both parties. The time for discussion on the Bill would be limited and no amendments could be attached to the legislation. Fast tracking also provides for an immediate vote following the conclusion of the discussion period and for passage upon a favorable vote of a two thirds majority of those members present at the time of the vote. On Monday, November 13 it was announced matters on the suspension calendar would be taken up that evening at 6:30 p.m. Instead, at around 3:00 in the afternoon, Representative Phil Gingrey approached the House Clerk with a message from Speaker Hastert. The note announced that Hastert had authorized Gingrey to serve as Speaker Pro Tempe and the House came to order under Gingrey's authority as the temporary Speaker. Rep. Sensenbrenner maneuvered all of the "fast tracked" legislation scheduled for 6:30 PM to be heard in the middle of the day, including the AETA bill. Speaker Hastert - an ALEC Alumni - assisted Representative Phil Gingrey, - an ALEC Alumni to circumvent the house schedule. Further Gingrey then served as the enabler to Sensenbrenner who arranged for 4 of the bill's supporters to be present. At the time of the vote 35 there were only six representatives present. Rep. Dennis Kucinich was present and argued against the legislation and tried to get 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 Gingrey called for a vote on AETA and of the six (6) members present, five (5) voted for the

legislation and it passed. The Senate led by Sen. Inhofe passed the legislation unanimously and President Bush signed it into law within days. Because of the way this was accomplished in the House, Kucinich was the only member voting against it. In this manner five (5) out of the 435 Representatives in the House passed this, the Congressional Record has no information on the members present for the vote or how each voted. The names of the members voting to pass the bill beyond Petri and Sensenbrenner are lost to history. ___________________ The following year a similar event occurred involving the previously mentioned Postal Accountability and Enhancement Act (H.R. 6407 - 2006). HR 6407 combined H.R. 22 and S. 662. However this legislation had a longer and more difficult road to passage. This legislation actually began in 1996. The Point man identified as being the Republican led voice behind HR 6407 has been identified as Rep. 36 John McHugh (R NY) . McHugh is an ALEC 37 Alumni and first introduced Postal Reform 38 legislation in 1996: H.R. 3717 and worked for over ten years to bring this legislation to fruition through passage of HR 6407 in December 2006. From 2003 through passage of HR 6407 in 2006, the Koch/ALEC CABAL worked diligently publishing articles in favor of privatizing the USPS. CATOs Economic Policy Analyst, Tad DeHaven wrote an article on behalf of the National

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Taxpayers Union 40 Watch;


for the Econ Journal

USPS operates parcel delivery services that compete with private

We could go on at length as to the potential benefits from privatization of USPS and the creation of USPSI (U.S. Postal Service, Inc.) (citing Economists MICHAEL A. CREW AND PAUL R. KLEINDORFER).
The NTU is a recipient of Koch funding as 41 reported by TPM, quoting Sourcewatch. Also in 2005 the NTU issued another memo on the USPS: First-Class to Nowhere: Congresss 42 Second-Rate Postal Reform Bill;

parcel services.
For example, privatization of the USPS and repeal of its monopoly would bring major innovation to the mail industry, just as the 1980s breakup of AT&T brought innovation to the telecommunications industry The federal government operates numerous business enterprises that could be converted into publicly traded corporations, including USPS, Amtrak, and a number of electricity utilitiesThe way ahead is to privatize the USPS and repeal the mail monopoly that it holds It is time to privatize the USPS and repeal the government monopoly on mail.
In the same year, the Reason Foundation filed a similar document, titled Annual Privatization 44 Report that provides:

USPS does not have to pay most taxes and is exempt from most of the regulations that burden trulycommercial firms. Even so, these businesses are able to operate more efficiently and more profitably than the Postal Service. USPS was created at a time when no private entity was willing or able to deliver mail across a developing nation. Now that we have capable private organizations eager to do so, USPS should be contracting in size and mission. Legislation that encourages a government monopoly to instead

expand into new and competitive markets is misguided, to say the least.
Simultaneously the CATO Institute published Downsizing the Federal Government by Chris 43 Edwards . In this document Edwards is again promoting privatization of USPS;

In other industries, the federal government needlessly duplicates services that are already available in the private sector. For example, the

The federal government operates numerous business enterprises that could be converted into publicly traded corporations, including the USPS, Amtrak, and a number of electricity utilitiesMoving forward calls for privatizing USPS and repealing the first-class mail monopoly that it currently holds the USPS suffers from a high wage premium (it pays an estimated 21.2 to 35.7 percent more than would a comparable private sector employer, which represents 12 to 20 percent of total costs) and low productivity increases (only 9.2 percent from 1970 to 1999).

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Heritage, Cato, NTU and Reason claims have one theme in common; the USPS is a monopoly, run by the U.S. Government. With billions in annual sales, this is seen as a ripe target for profiteers once they break the barriers to privatization (like their pursuit of the $2 trillion in equity in senior homes through ALECs Reverse Mortgage Act). To privatize they had to first make it appear the agency was floundering, unable to generate revenue and in general was bad for the American consumer. Once they accomplished that through rhetoric, published reports by on the payroll Economists, they had to in effect make the USPS actually start losing money. They decided to do this by forcing the agency to begin to fund forward pension benefits. Sponsor of HR 6407 legislation was Virginias 45 Representative, Tom Davis (R-VA 11th) . Davis family and political history is closely tied to ALEC/Koch. His wife, Jeannemarie Devolites Davis was a Virginia Politician serving as a state Senator and a member of ALEC. Her political campaigns (3) for Virginias Senate was funded by husband Tom Davis and various Republican PACs including the former Majority Leader and 46 ALEC Alumni Tom Delay through his ARMPAC:

committees, who in turn donated money and office space to Mrs. Davis; $55,616 from the National Republican Congressional Committee when her husband was Chair, $5,000 from the Republican Main Stream Partnership, and $5,000 from Tom Delay's ARMPAC.
Tom Davis established and used ALEC and the Cabal to advance his career in politics and personal life after he resigned from the House in 2008. Together Tom Davis and his wife was 47 quite a pair in politics and business;

Davis's second wife, Jeannemarie Devolites-Davis, was one of the first hires (as a part-time consultant) for ICG, a firm that assists businesses in obtaining government contracts. Their financial relationship, along with financial ties that benefit family members of 64 of the 435 voting members of Congress, was highlighted in the June 2007 ethics report, "Family Affair" by the Citizens for Responsibility and Ethics in Washington.
At ICG, Ms. Davis is now a Partner and last year was appointed by Virginia Governor McDonnell 48 as Virginias Liaison Office (Washington D.C.) . She is instrumental in coordinating conferences that bring together key government and industry executives for substantive discussions of government management and information sharing, and consulting with government contracting clients in both the federal and state sectors. Additionally, she is a featured speaker on subjects of intergovernmental relations; state policy and political processes; and management of technology and health enterprise, both nationally and internationally.

A large percentage of her financial support is contributed from her husband, Tom Davis, and the Republican organizations he directs. Before Virginia's 2007 election cycle, his PACS had donated more than $172,000 to her campaign. In addition, she has received contributions from National Republican organizations directed by Mr. Davis including $300,000 to the Fairfax and Prince William's counties Republican Party

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After leaving office Tom Davis joined Deloitte Consulting in their Washington, D.C. office taking his place beside ALEC alumni, Tom 49 Ridge . Davis currently serves as President and CEO of the Republican Main Street Partnership and also started teaching a class at George Mason University (another frequent recipient of 50 millions in Koch funding ), teaching "Southern Politics" in the 2008 Fall Semester. GMU is recipient of large Koch contributions:

from; UPS ($22,168), Verizon, ($15,221), AT&T ($12,000), GlaxoSmithKline ($11,999) and 54 MBNA Corporation ($85,250) . Tom Davis reported contributions on Open Secrets also reflect receipt of funding by some of the same corporate benefactors. MBNA Corp is the nations top credit card company and one of the worlds biggest finance companies. The company was also the biggest campaign contributor to the Bush-Cheney ticket during the 2000 election cycle and has been one of the Republican Partys most generous contributors over the last decade. For the last five years, MBNA has been pressing lawmakers to pass legislation that would make it harder for individuals to file bankruptcya bill that, if approved, stands to earn MBNA at least $100 million in additional revenues each year, according to press reports. The bank also has lobbied against legislation to protect consumer privacy rights and was a leading proponent of 55 banking deregulation . All of the foregoing pursuits by MBNA are key ALEC initiatives. In 2008 Davis and Ridges Deloitte Consulting, along with Pfizer, PricewaterhouseCoopers and Time Warner joined the list of ALEC related 56 contributors to Collins . The purpose of HR 6407 and McHughs 1996: H.R. 3717 was to provide a perceived need for privatizing the USPS. They set in motion events that would eventually disable the Post Offices abilities to function. HR 6407 was the enabler in this scheme as it forced the USPS to remove more than $5 billion per year from its revenue stream and place that money into a retirement account (RHB) it had no access to. This forced the USPS to reduce efforts of maintaining equipment or expansion and since 2006 has

Since 1985, George Mason University (GMU), and its associated institutes and centers, has received more funding from the Koch Family Charitable Foundations than any other organizationa total of $29,604,354. The George Mason University Foundation has received the most funding, $20,297,143, while the Institute for Humane Studies [Kochs Intern program] has been directly given $3,111,457, the Mercatus Center $1,442,000, and George Mason University itself has received $4,753,754. In addition to financial ties, Koch also has personnel involved with the university. Richard Fink51, the vice president of Koch Industries, Inc., and the former president of the Charles G. Koch Foundation and the Claude R. Lambe Foundation, serves on the board of directors of the George Mason University Foundation and the Mercatus Center.52
Senate co-Sponsor of this legislation impacting the USPS was Susan Collins (R ME) who also has ties to Koch money and is actively supporting Kochs EPA deregulation and 53 environmental denial of climate change . In 2006 Collins received $146,638 in donations

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reduced their ability to compete against the two primary private sector competing companies handling mail and parcel services FedEx and United Parcel Service (UPS). UPS and FedEx are both long time ALEC members and UPS currently holds a seat on the ALEC Private Enterprise Board (see Chart 1 below from 57 ALECs 2011 program on sponsorship) . It also lends the appearance that the USPS is rapidly approaching the brink of bankruptcy through the diversion of billions of dollars to the RHB. For more than 7 years now the CABAL members have hinted at and made changes to make privatization of the U.S. Mail system inevitable. In May 2011 Business Insider published the article; 11 Things You Should Know About The 58 U.S. Postal Service Before It Goes Bankrupt. In this article the author indicates privatization of the USPS is in order and cites other international mail services as an example of how such privatization works in countries like Japan, Germany and Sweden. The article claims:

workers. USPS covers 79% of its employees' health benefits, compared to the 72% typical for most federal workers.
These figures indicate that health benefits and costs represent a substantial outlay for the USPS. At the same time this is occurring, ALEC and their alumni are fighting intensely at state and Congressional levels to resist any attempts to overhaul healthcare and the exorbitant costs associated with that or address the huge profits being made through current medical and insurance procedures. PhRMA, pharmaceutical companies and insurance companies in the healthcare industry continue to derive huge profits under the current system. (This also

explains the resistance exhibited by Republican ALEC alumni led by Speaker Boehner and Majority Leader Cantor to repeal the Patient Affordable Healthcare Act that is pursued by ALEC nationwide as of this writing).
One of ALECs Model Legislative bills is the 59 Unfunded Pension Liabilities Accounting Act and ties in nicely with the provisions included in the Postal Accountability and Enhancement Act as well as current and ongoing attacks upon public sector government workers; teachers, firefighters, police and the union groups they belong to. Below is a screen capture of ALECs 2011 Annual Meeting in New Orleans, showing the participation of FedEx and UPS:

Despite the agency's economic woes, the 250,000-member American Postal Workers Union negotiated a cushy labor deal with the USPS in March. The four-and-ahalf-year agreement extends the nolayoff provision and provides a 3.5% raise over the period of the contract, as well as seven uncapped cost-ofliving increases. A USPS spokeswoman told Businessweek the agency agreed to the terms because it feared an arbitrator might be even more deferential to the union. In general, postal service employees enjoy more expensive benefits than most public-sector

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The impact upon the USPS from this legislation has resulted in a devastating financial disruption and at the same time has greatly increased the stock prices and profits of both UPS and FedEx. Since 2006 when the USPS began setting aside $5.6 billion per year for prefunding the pension account as mandated by Collins and Davis cosponsored legislation, both UPS and FedEx have experienced considerable growth along with increases in income and stock prices. This amount of money taken from sales and set aside for pensions denies it to the USPS to reinvest, update or upgrade equipment and eliminates their capacity to continue to compete against their chief private corporate competitors UPS and FedEx. In 2006 UPS gross income was given as $47.55 billion and by the end of last year that had risen 60 to $49.55 billion. FedEx figures for the years 2007 2011 show that in that period their gross revenue increased from $35.21 billion to $ 39.3 61 billion. Looking at these figures and at the USPS mandated prefunding requirements, the figures show that UPS and FedEx have cumulatively increased their gross income by $6 billion, an amount comparable to the amounts of annual pension payments the USPS has been forced to set aside without access to. Figures show the change in common stock holder investment for FedEx from 2006 to 2007 (the first year the USPS was required to fund forward the pension account) increased by 62 10%.

From 2007 to 2008 that same common stock 63 holder investment increased another 15%. So in just the first two years following the USPS requirement to set aside billions in pension prefunding, investors with FedEx stock saw a 25% increase in the value of their investment(s). Looking at Yahoo Finance we find that currently FedEx has holdings in several multinational 64 and huge US corporations. These stock holdings include; Coca-Cola, Reynolds American, ConocoPhillips, General Electric, First Energy Corporation and Chevron. Besides being huge companies, what do all of those above have in commonality? Theyre members, benefactors and/or sponsors of ALEC. Just taking FedEx as an example one can quickly see how all of ALECs members are profiting off of each other through investments that are enhanced by the pro-corporate legislation put out by them through ALEC, especially at the federal level. As this profiting continues and increases as the years roll by - harm upon the USPS continues to grow and drive them further toward relinquishing their hold upon first class and parcel mailings, more and more of their services being absorbed or taken over by UPS and FedEx. Today UPS and FedEx collection containers are found near the front doors of most USPS community facilities. This allows USPS primary competitors to be situated on their property, allowing an option of package and mailing to postal consumers.

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Here is a graph showing USPS financials before and after the legislation was passed in 2006:

Though ALEC has been able to introduce and pass other important legislation at the federal level (truth in sentencing, mandatory minimum drug and gun laws, 1984 Criminal Justice Reform Act, tax rate laws, etc.), the USPS and AETA legislation stands out as being two of their initiatives which adequately reflect the manner

and procedures used by their alumni. Both of these laws were implemented after the creation of the Tenth Federal Forum Task Force and demonstrate the influence and abilities they have through the alumni.

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Influencing and Corrupting the Federal Judiciary

In conjunction with ALECs involvement of advancing influence upon our Legislative Branch of government, ALEC and their network have participated in other attacks upon the Judiciary branch. These efforts consist of free trips to luxurious resorts that are paid for by the foundations, corporations and others involved with ALEC. During the trips judges attend daily seminars provided by purported scientists, corporate executives and others advancing a pro-corporate, free-market conservative ideology. The seminars are designed to impart to the attending judiciary the corporate or business points of view on critical issues involving environment, economics, tort reform, EPA and takings law (eminent domain). We found several universities and private, nonprofit organizations participating in these efforts at both the state and federal level. All but one are provided by conservative organizations, foundations or schools:

Northwestern Law Judicial Education Program (funded by many key ALEC members, including Koch)68. Liberty Fund69 providing judicial conferences and seminars to/for Judges. Federalist Society70 (Koch funded71 $1,437,200 through 2006) Aspen Institute (Koch funded72 $1,115,000 through 2006 with David Koch on the BOD73). University of Kansas, Law and Organizational Economics Center (LOEC) begun in 1995 by Henry Butler74 with a $1,000,000 grant from the Fred and Mary Koch Foundation75. 7 International Judicial Academy which provides seminars for judges on the International level76. Funders of the IJA have included; JEHT Foundation and Foundation to Promote Open Society. JEHT Foundation ceased to operate in 2009 due to the Madoff ponzi8 scheme where their money was invested. Foundation to Promote Open Society gets some of their principal funding from George Soros77. Much of their contributions

George Mason University (Law

and Economics Center - LEC)65 (Recipient of Koch funding totaling $20,297,143 from 1986-200666), Earhart Foundation, JM Olin Foundation. Foundation for Research on Economics and Environment (FREE). Funded by ExxonMobil, GE Foundation, Koch Family Foundation67 ($1,305,500 through 2006), JM Olin Foundation, Earhart Foundation and Castle Rock Foundation (Coors). ($65,000 in 2009) and the Claude Lambe Foundation.

UKs LOEC now has A Center for Excellence in Advocacy founded in 2008 with generous support from Shook, Hardy and Bacon. LOEC Faculty has included Mark Huang of Shook, Hardy and Bacon.
8 ation

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and donations received along with their expenditures are to/from other countries and include non-Soros funding78.
There are other organizations providing judicial training for state and federal judges, but these seven are those with ongoing regularly scheduled seminars and trips. Some completely reimburse judges for travel, housing and food while others reimburse to a set amount (such as LOEC that reimbursed state judges up to $500.00 cap for travel). The funding for six of the seven providing such judicial trips are funded with money from one or more of the Koch controlled family foundations. In addition many of the foundations listed on page 5 also fund these trips and seminars for judges; John M. Olin Foundation, Inc., M.J. Murdock Charitable Trust, Castle Rock Foundation and the Lynde and Harry Bradley Foundation. A sampling of topics presented in the seminars to these judges state and federal include; environment, takings laws (imminent domain), economics, tort reform, juror selection and jury decision making, The presentations are made by speakers from various colleges, universities and of greater importance from corporate CEOs and executives representing Shell Oil and other major corporations. In addition many of the presentations are made by those representing; Heritage Foundation, American Enterprise Institute, National Center for Policy Analysis, George Mason University, Brookings Institute and several other conservative entities. For some this kind of judicial education may seem to be an ongoing and natural way of keeping our judges abreast of current and

evolving legal issues and cases. Many physicians attend such seminars to stay in tune with evolving medical treatments, diagnosis and pharmaceuticals, so some perceive that such a training program for judges is normal. They are unaware of the intentional attempt to bias our judiciary in favor of pro-corporate decision making. The list of those funding these junkets and leading the accompanying seminars refutes the assertion that these extracurricular activities are unbiased and not centered around advancing a pro-corporate agenda. For instance, the funders listed by George Mason University include most of ALECs for profit corporate members, and the non-profits that fund ALEC and most have ties to the Koch and related foundations previously mentioned. (Those in bold are known ALEC/Koch benefactors, affiliates or corporate members). These funders are listed below: Funders

Abbott Laboratories Ackerman, Hon. Harold Adams, William H. 81 Aequus Institute Agee, Hon. Steven Amon, Hon. Carol Andrias, Hon. Richard T. 82 Armstrong Foundation AT&T 83 Atlas Economic Research Foundation 84 Barre Seid Foundation Batchelder III, Hon. William G. Batchelder, Hon. Alice M. Beghe, Hon. Renato Berrigan, Hon. Helen G. Bowie, Hon. Peter BP America, Inc. Brister, Hon. Scott Brown, Hon. Jerry

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Brown, Hon. Joe B. Browning, Hon. Edwin Brunswick Corporation Buettner, Hon. Kenneth L. Bush, Hon. Donald Caddel, Hon. Jack Camp, Hon. Jack Carman, Hon. Gregory W. Castagna, Hon. Bill Castle Rock Foundation Cathell, Hon. Dale R. Charles G. Koch Charitable Foundation CIGNA Corporation Cinader, Arthur Coca-Cola Company Collier, Hon. Lacey A. Commonwealth of VA Tax Donations 85 Cortopassi Institute Cowen, Hon. Robert E. Curtin, Hon. John T. David Stone Foundation Davis, Hon. Eugene Dawson, Hon. Robert T. DeMoss Jr., Hon. Harold R. DeVasto, Hon. Diane 86 Doctors Group 87 Donors Trust 88 Dow Chemical Company Doyle, Hon. Robert Duplantier, Hon. Adrien Duplantier, Sally Earhart Foundation Edenfield, Hon. B. Avant Edmonds, Hon. William L. Eginton, Hon. Warren W. Eisele, Hon. G. Thomas Exxon Mobil Corporation Fallon, Hon. Eldon FedEx Corporation Feldman, Hon. Joel M. Foster, Hon. Kennard P. Friedlander, Hon. Ezra H. Gadola, Hon. Paul V. Galway, Hon. Richard E. General Motors Corporation 89 Gillette Company

Gillmor, Hon. Helen Goldenhersh, Hon. Richard P. 90 Goodrich Foundation Graves, Hon. William J. Greaney, Hon. John Griesa, Hon. Thomas Griffith, Hon. Sam Grometer, Hon. Peter Henry, Hon. Robert H. Holmes, Hon. Mark Hughes, Hon. Lynn N. Hunter, Hon. Robert Jackson, Hon. Barbara John M. Olin Foundation 91 John William Pope Foundation Johnson & Johnson Johnson, Hon. Cheryl A. Jones, Hon. Edith H. Jones, Hon. Robert C. Keller, Hon. Sharon F. Kinard Jr., Hon. Ernest J. King, Hon. Warren R. Klein, Hon. Christopher M. Kocoras, Hon. Charles P. Levy, Robert A. Lilly Endowment, Inc. Lynde and Harry Bradley Foundation Magnuson, Hon. Paul A. Manning, Hon. Blanche M. Muris, Hon. Timothy Murphy, Hon. Michael Murphy, Hon. William Naugle, Hon. David N. Nevas, Hon. Alan H. Newman, Hon. Pauline Nicholas Martini Foundation Niskanen, William Nowrasteh, Cyrus OConnor, Hon. Eileen ORourke, Hon. Terry B. Oblon, Spivak, McClelland, Maier & Neustadt 92 (Koch Ind. Patent Atty) Ohrstrom, Gerry Orfinger, Hon. Richard Parker Jr., Hon. Barrington D. Pepe, Hon. Steven D.

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Pepsico Inc. Pesce, Hon. Michael L. PetroMina, LLC Pfizer, Inc. Pleicones, Hon. Costa M. Property and Casualty Ins. Ass. Rafeedie, Hon. Edward Raggi, Hon. Reena Ramirez, Hon. Juan Randall, Hon. R.A. 93 Randolph Foundation Rapp, Hon. Keith Real, Hon. M.L. Restani, Hon. Jane A. Roe Foundation Rosen, Hon. Gerry E. Ross, Hon. Herb Samuel Roberts Noble Foundation, Inc. Sanderson, Hon. William Sarah Jane Humphreys Foundation, Inc. Sarah Scaife Foundation, Inc. Sawyer, Hon. David Scott, Hal 94 Searle Freedom Trust Serna, Hon. Patricio 95 Sharp Foundation Sharp, Hon. Allen Shelby Cullom Davis Foundation Shell Oil Company Sills, Hon. David G. Simon, Hon. Paul J. Slater, Hon. Kent Smith, Hon. Leslie C. Smith, Hon. Loren A. Sonderby, Hon. Susan Stafford Jr., Hon. William H. State Farm Insurance Companies Steeh, Hon. George Caram Stilwell, Hon. Samuel Stuart, Hon. Jacqueline L. Suarez, Hon. Lucindo 96 Sunmark Foundation Sutin, Hon. Jonathan Talbot, Hon. Michael J. Taylor, Hon. Clifford W. Thibodeaux, Hon. Ulysses Gene

Thomas, Hon. Patricia Thornbrugh, Hon. P. Thomas U.S. Chamber of Commerce Unilever United States, Inc. Verizon Communications Voorhees, Hon. Richard Wade, Hon. Gary Walter, Hon. Donald Wedemeyer, Jr., Hon. Ted E. Weinstein, Hon. Jack B. 97 William E. Simon Foundation Williams, Hon. Stephen F. Wolle, Hon. Charles R. Worthen, Hon. James T. Young & Franklin, Inc. Young Jr., Hon. Robert P. Zoss, Hon. Paul A. Abbott Laboratories Ackerman, Hon John D. Ahart, Hon. Alan M Biggers, Jr., Hon. Neal B. Buckley, Hon John T. Corrigan, Hon. Maura D. Goolsby, Jr., Hon. C. Tolbert J.P. Humphreys Foundation Jefferson, Hon. Wallace B. Joplin, Hon. Larry E. Jubelirer, Hon. Renee Cohn Kern III, Hon. John W. Kornmann, Hon. Charles B. Leavitt, Hon. Mary Hannah McAnany, Hon. Patrick D. McCall, Hon. Terry Nardelli, Hon. Eugene Orme, Hon. Gregory K. Raker, Hon. Irma S. Riggs, Hon. R. William Rocco, Hon. Kenneth A. Spolzino, Hon. Robert A. Wake, Hon. Neil V. Similarly, take a look at those identified as funding the junkets and seminars of Northwestern Universitys Law Judicial Education Program. Again, those in bold are known affiliates of Koch and/or ALEC:

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American Petroleum Institute AT&T Inc. Charles G. Koch Charitable Foundation Civil Justice Reform Group Dr. and Mrs. Henry N. Butler98 &99 Ewing Marion Kauffman Foundation100 Exxon Mobil Corporation GlaxoSmithKline LyondellBasell Industries9 McDonald's Corporation101 Microsoft Corporation102 Johnson & Johnson Koch Industries Pfizer Inc. PhRMA Searle Freedom Trust Shell Oil Company State Farm Mutual Automobile Insurance Company The Bradley Foundation The Dow Chemical Company The Lynde and Harry Bradley Foundation U.S. Chamber of Commerce
Additional funders of Northwestern University seminar program include this list of U.S. 103 Judges : 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

The Honorable James E. Lockemy The Honorable James T. Worthen The Honorable Kenneth F. Crow The Honorable Lewis Nixon and Evon GrantNixon The Honorable Loren A. and Catherine Y. Smith The Honorable Maria Korvick The Honorable Mark F. and Joann Aceto The Honorable Michael R. and Paula Weatherby The Honorable Paul Mitrovich The Honorable Ralph C. Hofer The Honorable Rex Heeseman The Honorable Robert V. Greco The Honorable Ross H. Hicks The Honorable Steven R. Ohmer The Honorable Tennant M. Smallwood Many of these benefactors contributing to funding junkets and seminars for judges are affiliated with Koch in some manner and have been members or affiliates of ALEC with the exception of the judges, who have participated in many of the seminars by those organizations providing them. It is not a case of some of the contributors to this program being conservative all of them are, and they share close associations on other initiatives not related to judicial education.

Affiliated with Kochs European corporation

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Here is a picture of Henry Butler from UKs 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 GMUs. FREE is also not affiliated with any

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university, existing as a standalone 501 (c)(3) non-profit. 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 104 Newsletter: Seminar Series for Federal Judges, Law Professors and State Officials June 912 Entrepreneurship, Telecommunications, and Social Change July 1217 Illicit Drugs, Civil Society, and the Environment September 1318 Terrorism, Energy, and Civil Society October 1216 Biotechnology, Risk Analysis, and the Environment: Implications for Federal Judges October 2630 Environmental Economics for State Officials FREEs influence does not stop at the federal judicial level. Below is a picture taken from another of their Newsletters (Fall 2005). It shows FREE Founder and CEO John Baden and his wife along with FREE Associate Director Pete Geddes with Supreme Court Justice,

Clarence Thomas at a Heritage Foundation Presidents Dinner event:


FREEs Board of Directors includes three (3) sitting U.S. judges: Honorable Alice 105 Batchelder , Chief Judge, United States Court of Appeals, Sixth Circuit, Louisville, Kentucky; 106 The Honorable Danny J. Boggs , Chief Judge United States Court of Appeals also for the Sixth Circuit Louisville, Kentucky, and; The Honorable 107 Edith Brown Clement , Circuit Judge United States Court of Appeals for the Fifth Circuit, New Orleans, LA. Also on the FREE BOD are others with conservative organizations in their current or past history: Edwin Meese, III (Distinguished 108 Fellow at the Heritage Foundation) ; Jonathan H. Adler (Federalist Society and CATO 109 Institute) ; Jim Huffman (Federalist Society, Heritage Foundation and the Institute for 110 Humane Studies) ; John Von Kannon (Pacific Legal Foundation, Heritage Foundation and The 111 11 American Spectator) and; Todd J. Zywicki ,

See Clarence Thomas relationship chart on pages 57-59. Samuel Alito on page 60 for full exposure of relationships and connections.

Zywicki also has ties to IHS and Bill of Rights Institute:

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Professor of Law at George Mason University School of Law (John M. Olin, Mercatus Center at George Mason University and Federalist 112 Society) . Many of FREEs seminars are presented by these Board members and others representing many of the same organizations mentioned in the preceding paragraph. Corporations also have led these seminars for FREE the same way they do for the GMU program. In 2003 three other U.S. judges resigned as members of the FREE BOD; U.S. District Judge 113 Andre M. Davis , Douglas H. Ginsburg, chief judge of the U.S. Court of Appeals for the District of Columbia and, Jane R. Roth, a judge on the 3rd Circuit appeals court. These resignations came following an ethics complaint made against Judge Davis that resulted in a determination that sitting upon FREEs BOD was in violation of the Cannon of Ethics for federal judges. Judge Boggs refused to resign and remains a FREE Board member. In 2001 20/20s Nightline did a documentary on 12 Junkets For Judges where the Investigative Journalist, Brian Ross informed more than 500 judges and two Supreme Court Judges had received these free trips and seminars from

GMUs LEC. Again in 2006 Ross revisited this issue and informed readers about SCOTUS Justice, Scalia attending one of the GMUs 14 junkets . In that broadcast, Nightline included pictures of Justice Scalia playing tennis at a Ritz Carlton Resort in Bachelor Gulch, CO. where that particular seminar was held, sponsored by the Federalist Society. The 20/20 documentary also referenced previously reported that in at least two documented cases, federal judges who attended these seminars were at the time of attendance, hearing cases involving issues discussed at the seminars. The judges returned to the bench and ruled favorably on behalf of corporations over the U.S. government. In one case a judge returned, changed his position and wrote the opinion favoring the corporate party in the litigation. This documentary was based in part upon the work of the Community Rights Counsels NOTHING FOR FREE: How Private Judicial Seminars Are Undermining Environmental Protections and Breaking the 114 Public's Trust published in 2000. CRC's publication goes on to state:: Every year more and more federal judges fly to resort locations to attend privately funded seminars. All of a judges expenses are paid for, including tuition, transportation, food, lodging, and various leisure activities. These trips, which cost thousands of dollars per judge, are privately bankrolled by corporations and foundations. Meanwhile, the


award/winners#Zywicki and clerked for Judge Jerry E. Smith of the U.S. Court of Appeals for the Fifth Circuit and has taken trips through FREE, Federalist Society, Liberty Fund, GMS and Institute for Justice:
12 and part II: ature=related

Visit for list of judges who have participated in these events.
14 #.TssGicPNlGU

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same funders are simultaneously financing federal court litigation touching upon the same topics covered at the seminars. These sponsors are not supporting the seminars out of benevolence; rather they do so in the hope of influencing judicial thinking to their benefit. They are paying to have judges attend seminars that stress economic and policy arguments, which, if adopted by the judges, would advance their ideological and pecuniary interests [] Third, there is significant evidence suggesting that these biased, pro-market seminars are working as their sponsors intend, breeding a new conservative judicial activism. This report canvasses the last decade of environmental decisions and traces the emergence of a growing anti-environmental judicial activism developing in lockstep with the ideological goals promoted by the Big Three. Four key legal issues are focused on, and remarkably, in each area, the author 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 same special interests that sponsored the judges trip. In one case, a judge ruled one way in a very high-profile case, attended a seminar and, upon his return, switched his vote to agree with his newly acquired education. These all-expense-paid trips were paid for by corporations and conservative foundations with the Koch brothers prominently at the top of that

list are intended to program the judiciary to rule favorably upon issues important to them. Though FREE insists they are merely providing education to these federal Judges and Justices, what they are actually doing is 115 explained by FREE Trustee, James Huffman : [T]he Political Economy Research 15 Center (PERC) laid the foundation for what has become known as free market environmentalism. Through a long term strategy of educational programming, PERC and its offshoot, the Foundation for Research on Economics and the Environment (FREE), have spread their message to journalists, congressional staffers, federal judges, government bureaucrats, environmental activists, and the general public.(Emphasis added). One earlier case stands out to demonstrate the influence upon the federal judiciary that FREE can bring. In the case of Preseault v. United States 100 F.3d 1525 (1996) U.S. Court of


According to MediaTransparency, PERC under its old name, received $603,600 from Bradley Foundation and $640,775 from Olin Foundation. Other funding has come from Sarah Scaife, JM Foundation, Lambe Foundation, McKenna Foundation, Earhart Foundation, Koch Foundation, Carthage Foundation and Castle Rock Foundation -- the guts of a force of roughly a dozen or so foundations that, since the 1960s, have coordinated their efforts toward forging national policy favorable to deregulation of industry and to privatization. According to Mediatransparency's records, PERC received $4,175,875 from all funding sources combined from 1985 to 2002."

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Appeals (a case on Takings law ) the District Court ruled in favor of the United States. However when the case was appealed to the Circuit level, Four of the six judges who ruled against the government in Preseault reported on their financial disclosure forms that they had attended FREE seminars, along with one of the three judges who came down on the government's side. The John M. Olin 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 116 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 SCOTUS. - Influence upon Supreme Court In the atmosphere of today with the Citizens 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 two other Justices with similar ties, connections


and political posits: Samuel Alito and Antonin 17 Scalia. All three are members (or alumni) of the federalist Society. Scalia and Alito have been honored by the Federalist Society and used to raise funds. Below is a link to a C-Span video of Scalia, Alito and Sen. Majority Leader, McConnell speaking at the Federalist Society in 2006.

To view video click here. Scalia has had book signings at the FS:

Justice Antonin Scalia book signing at FS


Takings Laws undermine environmental legislation, land use laws, and regulations designed to protect public health

The charts on Justices starting on page 57 clearly show their connections to many of the CABALs members and individuals.

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Added to what youve read above, we must also realize that in June of last year, the Koch brothers held an ultra-secret meeting in Aspen Colorado. Names youve read above and below - associated with Koch/ALEC were in attendance; Scaife, Pope, Meese, Walton, Bechtel, Glenn Beck, Bush, De Vos, Fettig and Johnson were all in attendance. Speakers were from CATO, Mercatus Center, Heritage, Fox News, Americans for Prosperity, the Wall Street Journal, American Enterprise Institute, National Review, National Right to Work, U.S. Chamber of Commerce and Walton (Wal-Mart). Included was a listing of past attendees to these Koch meetings. Two of those named were Supreme Court Justices Clarence Thomas, 117 Antonin Scalia. Justice Thomas admitted he had participated in at least one of these Koch 118 events. 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 Scalias 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 Justices nor Koch can any longer deny such relationships exist. With Thomas association with FREE, and his acceptance of free travel to attend seminars,

meetings and dinners provided by; Liberty University, Hillsdale College, Jesse Helms Center, M onsanto Company, Natl Center for Policy Analysis and the Acton Institute, his political beliefs are solidified. Factoring in that Justice Thomas has a close friendship with billionaire real estate magnate, Harlan Crow, those beliefs are amplified. Thomas frequently uses Crows private jet to travel to events, his wifes Liberty Central received a substantial contribution from Crow and Crow has financed a museum project favored by Thomas. Obviously they are quite friendly. Crow has ties to nearly every member of the CABAL through his connections to Koch and other key foundation/donors and their 121 organizations:


Crow, Thomas Koch connections

The existence of these relationships between key members of the Supreme Court and key members of the CABAL demonstrates clearly

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that there is a genuine appearance of conservative influences within our highest court. The concerns voiced by voters and Progressives alike are real and have a basis in fact. The key concern VLTP expresses is ALECs place within these ties to the judiciary. Once ALEC model legislation is proposed and passed at the state level, they are sometimes challenged through state litigation which often advances to the federal level for review upon appeal. As shown previously, our federal judiciary has been seriously compromised by the same CABAL through the trips and seminars provided by FREE, GMU and the others involved in such activities. The pro-corporate philosophy of ALEC has proponents within the federal courts due to these seminars and free trips. The voters belief that the federal courts present a protection from possible improper state action is thus compromised. If an ALEC initiative advances through the federal court system and ends up on the docket of the SCOTUS, the last possible safeguard is jeopardized. With three Justices clearly affiliated with those supporting legislation friendly to the CABAL, it only takes two of the remaining justices to join them and rule favorably in favor of the CABAL and their beneficial legislation. This has already happened with extreme clarity in the Citizens 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

those of many states. Without doubt it will also severely impact the upcoming 2012 election as the CABAL dumps money into the campaigns in an effort to overcome the objections of more moderate and progressive voters. Citizens Unit ed was merely the last of a number of decisions that have been made by the SCOTUS which favorably benefited conservative proponents and corporations in particular (i.e., Indianas Voter ID law upheld 122 by the Supreme Court in 2008 and National

Cable & Telecommunications Association v. Brand X Internet Services ruling against

internet service providers in favor of cable 123 companies in 2005 ). The fate of the Patient Protection and Healthcare Act now rests in the hands of the Supreme Court. Challenges to Roe v. Wade are in the wings pushed by the CABAL and their conservative legislative members. The current situation is analogous to FDRs situation in 1937 concerning his New Deal 124 legislation being opposed by SCOTUS. Ethics complaints made against Justice Thomas by voters and legislators alike and calls for his recusal in the Healthcare review appear to be falling upon the deaf ear of Chief Justice Roberts. True judicial impartiality is itself is now on trial and the scales of justice appear to be heavily weighted in favor of the CABAL.

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Appearances as Friend of The Court to Sway Opinions and Judicial Rulings on Key Issues
Once ALECs model legislation is proposed and enacted at the state level, besides tweaking that particular bill to make it applicable in other states, ALEC and the Koch network defend that legislation if/when it is challenged in a court of law. Without ALEC being named as a party to the suit, they have found another way to defend legislation written by them by filing what is termed an Amicus Curiae Brief in cases challenging enactment of ALEC laws. Court Rules allow parties with interest in the outcome of a case to file an Amicus brief in support of the Plaintiff, Defendant or on behalf of neither. As long as the Amicus pleader demonstrates they have an interest in the final opinion or decision in the case, they are generally allowed to file a brief and have their argument(s) considered in determining the final ruling. This is a long standing and established allowance of our court system. It has been used in many cases sometimes by a State or even the United States itself. ALEC and their affiliates take that concept one step further never let it be said they refrain from excess in efforts of influencing anything important to them. Our research reveals that on important issues of gun control, communications, economics, education, healthcare, financial and environment matters relating to business or corporations filed in federal courts, massive amounts of amici curiae appeared and were filed in support of probusiness arguments. These briefs were sometimes filed jointly with several organizations, foundations, institutions or companies in order to present a common agreed-upon argument to the court. In the case of ALEC and the conservative network, briefs are often filed separately. In many instances literally dozens of these briefs appear upon the dockets of the District, Appellate or Supreme Court dockets. In the case of STATE OF FLORIDA V. UNITED STATES DEPARTMENT OF HEALTH AND 18 HUMAN SERVICES, et al. on Repeal of Patient Protection and Affordable Care Act, the number of Amicus briefs filed demonstrates this 19 pattern of influence. Right wing organizations, individuals, conservative U.S. Congressmen and Representatives, Speaker John Boehner, Republican State Legislators and associations affiliated with conservative ideological positions filed a total of 28 amicus briefs against the 125 U.S. These werent merely providing an argument in support of the initial issues, amici filed briefs in support of summary judgment for


In this case ALECs close affiliates, the National Federation of Independent Business owners (NIFB) joined the suit with Florida, and became a Plaintiff.

ALEC has a legislative guide to repealing Obamacare: ObamaCare.pdf

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Florida, against the governments motion for summary judgment and to dismiss. In the Commonwealth of Virginia V. U.S.

published an article on the number of Amicus 135 briefs filed (35 altogether). Davenport exemplifies that when one of ALECs model legislative acts is challenged through litigation, all of the conservative organizations, institutes, think tanks and foundations affiliated with them and supported with Koch money, show up in force in an attempt to influence the court to rule in favor or support of, an ALEC initiative. There are literally dozens upon dozens of similar cases involving these same players that make up the core of this CABAL. Hundreds of Amicus briefs are filed at both the state and federal levels in support of ALEC model legislation when it is challenged. It doesnt have to be ALEC model legislation under a challenge, just something important to business or corporations. Many cases advancing to the Supreme Court also attract ALEC and the Cabals attention on 136 137 key issues; gun control , freedom of speech , etc. In these cases it is the pro-corporate concept they are protecting, rather than actual ALEC written legislation. VLTP would urge readers to spend a few hours researching Amicus Briefs on the Internet for a better understanding of the number of briefs that have been filed by the Cabal and ALEC. A key issue that has been vigorously pursued and protected is ALECs model legislation 138 Asbestos and Silica Claims Priorities Act 139 & . This model legislation has been pursued in many states and in most instances attorneys for Shook, Hardy and Bacon (SHB)defend that legislation by filing amicus briefs, openly 140 lobbying (in ND in 2009 ) and making presentations to state legislatures in support of

Department of Health and Human Services

case, another 26 amicus briefs were filed by the usual - and same suspects against the Dept. of Health. Again, these included the American Center for Law and Justice, Constitutional Accountability Center, CATO Institute, Pacific Legal Foundation, Revere America Foundation, Mountain States Legal Foundation and the Chamber of Commerce. All of these organizations hold the same conservative, corporatist ideologies and beliefs, and most are 126 funded with Koch money . A good example of how these entities work together as amici curiae can be found in the 2005 Supreme Court case GUY DAVENPORT


involving Paycheck Protection (one of ALECs model Acts) was challenged in Washington State. As in subsequent challenges to the Healthcare act in 2010 and beyond, this case generated numerous amici filing briefs in support of the Plaintiff, Gary Davenport, against the state of Washington. Here is a partial listing of those filing friend of the court briefs: Mackinac 127 Center , American Legislative Exchange 128 Council , CATO Institute and the Reason 129 Foundation , Evergreen Freedom 130 131 Foundation , Pacific Legal Foundation , 132 Institute for Justice , Mountain States Legal 133 134 Foundation and Pacific Research Institute to name some of the 14 parties who filed in favor of ALECs model Paycheck legislation. This was so unusual in such a case that the National Right To Work Legal Defense Foundation

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this initiative (in this 2008 MO. legislation the sponsor of the bill was ALEC member, Representative Bryan Pratt [R MO]). SHB provides the below statement on their work on behalf of ALEC and several of ALECs members. SHB also represents or works with:
SHB has long been at the forefront of efforts to institute reforms at the state and federal levels that will ensure our clients are treated fairly in civil lawsuits. 20 SHB attorneys, working with DRI and 21 LCJ , as well as the American Tort Reform Association, the Institute for Legal Reform of the U.S. Chamber of Commerce, the National Association of Manufacturers, the American Legislative Exchange Council, and the Washington Legal Foundation, among others, actively engage in reform debates in many ways. SHB lawyers file amicus briefs, publish scholarly articles, educate other legal professionals about the issues through 22 CLE conferences and other legal forums such as Webinars, provide informed commentary to the press, negotiate with lawmakers, and testify before legislative committees. Under the leadership of nationally renowned SHB Partner Victor Schwartz, our Washington, D.C.-based public policy group, in particular, leads a coalition of industry interests to develop ideas that will safeguard traditional tort law principles that best protect the rights of defendants facing an onslaught of nontraditional claims and theories which expose them to unprecedented liability. Our articles and briefs on key public policy issues have been cited in U.S.


Supreme Court and state supreme court decisions. State legislatures have passed laws we helped develop and championed, and we are viewed as among those most knowledgeable about a range of cutting-edge issues, such as the use of public nuisance theories against product manufacturers, expanded use of consumer protection acts, lawsuits for medical monitoring by plaintiffs without existing injuries, and protected trade secrets and other proprietary information provided to personal injury lawyers in discovery. In a case in WA State, in 2008 an attorney arguing against an amicus brief filed in the case by Mark Behrens and Victor Schwartz (SHB lobby group and ALEC Civil Justice Task Force Adviser and Chairman, respectively) spoke out about Behrens and Schwartz. He identified both as having represented many other 142 clients, writing research papers and representing the American Tort Reform Association yet appearing 143 in the WA. case as an Amicus without advising the court as to their vested interest in the litigation on behalf of their clients and ALEC.

The filing of these briefs and defending legislation important to the CABAL and especially to ALECs introduced model legislation is used to reinforce the pro-corporate, free market positions introduced to the judiciary through the free trips/seminar program. Together these two activities tip the scales in favor of the CABAL as designed.

National membership organization for defense, insurance, and corporate counsel, offering expert referrals: 21 Lawyers for Civil Justice:

Continuing Legal Education

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Institute For Humane Studies Kochs Intern Program(s)

Many have fought long and hard to prove connections between Charles and David Koch and various Conservative Right Wing groups, organizations, foundations and Main Stream Media outlets. VLTP has found that there are direct links between Koch money and all of the Cabals affiliates. The Koch's Institute For Humane Studies IHS describes their mission as;

Scaife Foundation, the Koch Family Foundations, Lynde and Harry Bradley Foundation, and the Carthage Foundation. The chair of its board of directors is Charles G. 145 Koch . The other members of the board of directors are John Blundell, Richard H. Fink, Jerome Fullinwider, Timothy Otis Browne, Tyler Cowen, Art Pope, David Humphreys, Eric O'Keefe, Todd Zywicki, William Sumner, Kristina 146 Kendall, and Craig Johnson . IHS lists 80 organizations to which the Kochs provide "internships". The interns are paid 147 $10.00/hour by the Kochs which helps keep payroll down for the organization and allows Koch to have direct inside control over the ongoing activities and their efforts being conducted in each of these "charities". A partial - but important list of those receiving Koch provided interns include: Acton Institute for the Study of Religion and Liberty American Enterprise Institute American Legislative Exchange Council Americans for Limited Government Americans for Tax Reform Atlantic Council of the United States Atlas Economic Research Foundation Beacon Hill Institute Bill of Rights Institute

The mission of IHS is to support the achievement of a freer society by discovering and facilitating the development of talented students, scholars, and other intellectuals who share an interest in liberty and in advancing the principles and practice of freedom. "Each year IHS awards over $750,000 in scholarships to students from universities around the world. IHS also sponsors the attendance of hundreds of students at its summer seminars and provides various forms of career assistance, including sponsored internships, to students and recent graduates pursuing careers in academia, journalism, and public policy. Through its programs, the Institute promotes the study of liberty across a broad range of disciplines, encouraging understanding, open inquiry, rigorous scholarship, and creative problem-solving." The IHS is currently located on George Mason Universitys Arlington campus. IHS receives funding from a base of individual donors, as well as from several classical liberal, libertarian and conservative foundations, including the Sarah

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Bluegrass Institute for Public Policy Solutions Buckeye Institute for Public Policy Solutions Capital Research Center Cascade Policy Institute Cato Institute Center for Competitive Politics Center for Individual Freedom Center of the American Experiment Citizens Against Government Waste Commonwealth Foundation Competitive Enterprise Institute Criminal Justice Policy Foundation Drug Policy Alliance Empire Center for New York State Policy Federalist Society Foundation for Educational Choice Foundation for Government Accountability Franklin Center for Government & Public Integrity Freedom Foundation George C. Marshall Institute Goldwater Institute Heartland Institute Hudson Institute Independence Institute Independent Women's Forum Institute for Energy Research Institute for Justice Institute of World Politics James Madison Institute

John Locke Foundation John W. Pope Civitas Institute MacIver Institute for Public Policy Mackinac Center for Public Policy Mercatus Center National Center for Policy Analysis National Center for Public Policy Research National Right to Work Legal Defense Foundation National Taxpayers Union Foundation Nevada Policy Research Institute Pacific Legal Foundation Pacific Research Institute Public Interest Institute Reason Foundation Reason Magazine Reason TV Students For Liberty Tax Foundation Taxpayers for Common Sense Technology Policy Institute The George Washington University Regulatory Studies Center Thomas B. Fordham Institute Washington Legal Foundation Washington Policy Center

Seminar themes include the value of property rights, limited government, peace, natural rights, free trade, individual autonomy, and the morality of free enterprise. There are introductory and advanced seminars, as well as seminars geared toward students planning careers in public policy, academia, and journalism.

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There are page after page of these "affiliates" 148 Koch provides intern staffing for annually . Those provided here are all involved in one way or another on the National/federal level. They are used to advance the conservative ideologies on taxation, environment, economics, criminal justice, tort reforms, education and voter disenfranchisement. In pursuit of those initiatives many of the foregoing institutes or think tanks are used to provide alternative science, facts and figures to organizations such as ALEC to support the pro-corporate agenda. They lend an appearance of academic and scientific investigations to support the ideologies and in support of litigation at the state and federal level that oppose or challenge any of the CABALs initiatives or advanced legislation. IHS provides a short list of their most notable alumni of the summer Graduate Research 149 Program. IHS just held its 50th Anniversary Dinner on October 13, 2011. Tickets were pricy ranging from $500.00 to $25,000.00. Prominent on the list of attendees was IHS Chairman and 150 supporter since 1964, Charles G. Koch. Charles Koch Institute Internship Program In addition to this internship program, the Charles Koch Institute also offers a separate 151 internship program. This one offers Spring and Summer internships and provides placement of the interns within many of the same organizations and institutes as IHS:
American Council of Trustees and Alumni America's Future Foundation American Ideas Institute American Legislative Exchange Council Americans for Tax Reform

Bill of Rights Institute Charles Koch Foundation Competitive Enterprise Institute Federalist Society George Washington Regulatory Studies Center Heritage Foundation Institute for Energy Research Institute for Justice Interdisciplinary Center for Economic Science Mercatus Center National Federation of Independent BusinessesSmall Business Legal Center Philanthropy Roundtable Searle Civil Justice Institute State Policy Network Sunshine Review Tax Foundation The Fund for American Studies

In addition to the Koch Institute and IHS internship program, most of those conservative organizations and institutes accepting those interns have their own internship program(s). Therefore, of the alumni IHS and Koch claim, there are possibly thousands more who are out there in capacities within corporations, think tanks, media and other important positions that have not been identified as being a part of the CABAL. Heritage Foundation, Reason Foundation, 154 155 156 Mercatus Center, ALEC and CATO Institute to name just a handful of the dozens that have such programs. Some, like Mercatus offer Media internships similar to IHS and Koch Institute. In conjunction with the Summer Internship program, IHS also provides a sister program geared strictly to providing interns to media outlets. That is covered in the next section.
152 153

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Institute For Humane Studies Journalism Internship(s)

IHS Journalism Internship Program described by IHS as:

(JIP) is

Libertarian Perspective, Journalism & a Free 158 Society and Scholarship & a Free Society . The IHS program overview provides:

The IHS Journalism Internship Program places talented writers and communicatorswho support individual liberty, free markets, and peaceat media companies and non-profit newsrooms. Past interns have worked at 20/20, the The Orange County Register, Reason.TV, Fox News, and many other organizations. Internships occur during the spring, summer, and fall. The program includes our weeklong journalism seminar, Journalism & a Free Society. Experienced journalists share career stories and advice, and outstanding professors explain the foundations of a free press and economic tools for understanding political and economic issues. You can network with other interns and the faculty during meals, discussion groups, and nightly receptions. IHS provides travel assistance to the workshop. All program interns from throughout the yearfall, spring, and summerattend.
Those who complete the basic JIP can go on to attend advanced seminars and training in specific fields such as; Exploring Liberty, Morality, Capitalism & Freedom. Liberty & Society, The Tradition of Liberty: Advanced Studies, Liberty & Leviathan: Policy from the

IHS seminars provide an opportunity to re-examine society and politics from outside the usual boundaries. They open a window on the classical liberal or libertarian perspectivea perspective that begins with individual liberty and leads to maximizing freedom in trade, the arts, international relations, and many other aspects of society. An IHS seminar is an adventure in ideas where participants explore fundamental questions... What is the proper role of government? How much liberty is good for the individual? What conditions foster peace and prosperity? How is globalization reshaping our world? How can we protect the environment and still protect freedom of choice and private property rights? What analytical tools can help us solve social and economic problems most effectively?
The program covers all forms of media from newsprint to investigative, digital (new media)

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and broadcast. To understand the purpose of this education provided by IHS, it is necessary to look briefly at each of the four media types mentioned here. Investigative Journalism is described by IHS as;

ABC 20/20 in Manhattan Fox News in Los Angeles and New York Hedrick Smith Productions in Washington, DC MSNBC in New York City
New Media is described as;

The Investigative Journalism track of the IHS Journalism Internship Program is for print journalists seeking challenging, investigative writing assignments at state-level, public policy think tanks and independent, non-profit
newsrooms. Working under the guidance and supervision of a professional investigative journalist, youll sharpen your writing, research and analytical skills while learning how to investigate government programs. Youll leverage the resources and knowledge base of the think tank to provide a freemarket perspective to readers and government officials. Broadcast Journalism as;

New media is transforming the news business. Traditional media firms such as newspapers, radio stations and television stations are becoming web-based news providers, delivering print, video and audio online. A journalists responsibilities are changing as well. Many journalism jobs require writing an article, capturing photos and video, and promoting the story through multiple channels, such as social networks. IHS sponsors paid internships with media outlets charging into this new landscape. These organizations seek individuals ready to diversify their skill set to report and deliver the news using the latest methods.
Newspaper internship is stated as;

Through the IHS Journalism Internship Program, you can work at a broadcast news organization or on a television or radio program of a major media outlet. Internships can involved researching stories, scheduling guest appearances, going out on shoots, and conducting phone interviews. You can use your knowledge of current events, history, and politics to help create programs, and learn how an idea makes it to prime-time. Job placement after completing internship includes: WTOP in Washington, DC

The Newspaper Track of the IHS Journalism Internship Program offers the opportunity to gain reporting experience and expand your professional network working for a daily newspaper. During the internship, you'll get to report rather than merely fetch coffee! The average intern walks away with at least twenty clips. Placed at a daily newspaper, you'll work on a variety of assignments: write features

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report hard news contribute opinion commentary pursue investigative stories Regular feedback on your work from editors and your fellow journalists will strengthen your abilities. And
you'll develop a network of professional contacts that will help you launch a journalism career. Placement after completion includes: Gaston Gazette Gastonia, NC The Monitor McAllen, TX Shelby Star Shelby, NC Orange County Register Orange County, CA News Herald Panama City, FL New Bern Sun Journal New Bern, NC The Brownsville Herald Brownsville, TX Times-News Burlington, NC. Research fails to reveal just how many of these internships were provided over the years, but 159 IHS claims 900 (including Journalism alumni) placed at: Cato Institute Institute for Justice Reason Foundation Council of Economic Advisors

World Bank

(Identifying placement of IHS alumni within the Department of State and Department of Justice, with interns having a proven relationship with Kochs CABAL confirms the reason for VLTPs concerns about these intern programs). IHS was founded in 1961by Dr. F. A. "Baldy" Harper, a former economics professor at Cornell University. Through the years many of the interns placed by IHS and Koch have gone on to placement in positions of importance within all genres of media, politics and many have gone on to become clerks for important politicians and judges. Others have seen their careers begin with the internship program and have since become key personnel in those organizations and think tanks where they began years before as interns. The mission of IHS is to support the achievement of a freer society by discovering and facilitating the development of talented students, scholars, and other intellectuals who share an interest in liberty and in advancing the principles and practice of freedom. Each year IHS awards over $750,000 in scholarships to students from universities around the world. IHS also sponsors the attendance of hundreds of students at its summer seminars and provides various forms of career assistance, including sponsored internships, to students and recent graduates pursuing careers in academia, journalism, and public policy. Through its programs, the Institute promotes the study of liberty across a broad range of disciplines, encouraging understanding, open inquiry, rigorous scholarship, and creative problem-solving.

Wall Street Journal ABC News 20/20


New Republic
JP Morgan U.S. State Department U.S. Department of Justice

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As with most of the organizations, institutes and think tanks involved with the CABAL, IHS is heavily dependent upon patriotic terminology. Every part of their program implies they exist to instill a pursuit of liberty to those participating in the Internships or post grad programs along 160 with their perception of freedom. Our concern at VLTP with the IHS Summer Internship Program is the impact upon our media outlets and sources. Many of these interns have by now become entrenched within all forms of media in the U.S. It is possible some hold positions as Broadcast, Newspaper and Digital Media outlet editors (senior and associate) producers, executives and upon article committees. As many Americans have begun to realize, major events take place in the U.S. today, and some of it regardless of importance does not get reported, or if mentioned, is underreported. The Protest ALEC event in Cincinnati in April 2011 took place within sight of the Cincinnati Enquirers building and staff. Many watched the marching, protesting and demonstrations from the windows of the Enquirer (a Gannett owned paper) yet there was nothing reported about the disruption of traffic, the speakers, issues, ALEC, marching or the main rally. Progressive and liberal media gave interviews, recorded the event and reported about the event in Cincy but nothing from the MSM. More and more issues important to Americans are either not reported upon by leading corporate owned media outlets, or they are reported with a definite conservative procorporate overtone. Programs such as this Koch funded-and-directed one of IHS would appear to be contributing to this new type of reporting. The

MSM today has shied away completely from reporting on ALEC, and although many alternative news sources and organizations such as the Nation, Center for Media and Democracy, Think Progress and others are reporting on ALEC--the harm done to voters by that legislation, continues. Yet the NY Times, CBS, ABC, the Post and most of the larger outlets considered Mainstream continue to be silent about ALEC, their legislation, the harm done to voters by that legislation and their pursuits of privatization. This was recently demonstrated by the MSM's ignoring the OWS movement until there was violence in NYC. Then the MSM finally began to report on the Movement. As time has passed, the coverage has devolved into stories of "dirty hippies", expressing the observation that it is disorganized and bears a marked resemblance to the War protests of the Vietnam era. We believe that the IHS and similar internship programs have been used to start the next generation of conservative thinkers and believers in positions of influence within the media while at the same time large corporations (with conservative-minded owners) merged, acquired or outright purchased smaller media outlets. One quote from a recent Rush Limbaugh program supports this observation, where he states that he clearly believes the U.S. MSM is now controlled by 161 conservatives. This has concentrated our news in the smaller number of hands of much of America's top 1% representing Americas wealthiest and most influential. Reporting has a definite conservative branding that works to influence the minds of readers, viewers and listeners. What is printed today, broadcast or reported as investigative

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journalism bears no comparison to the news as reported in past years. Much of what we see, hear and read today is in this manner, censored

by those reporting it not the government the corporations owning our media.

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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 ALECs 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 onceremoved 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

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The next chart shows the connections between Charles G. Koch and the Institute for Humane Studies:162 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

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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


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This expanded chart shows the relationship and connections of Koch through the IHS:163


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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%)


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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%)


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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 166 Muckety rating of 100%:


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Due to the current attention related to Justice Clarence Thomas and his relationships with many of the 167 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 clerks 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

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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

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Finally, here is a chart showing just a few of ALECs 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 dont list 23 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.

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This report was written with attention to the involvement and influence of ALEC at the federal level(s) of our government. Most have been unaware of these activities and the changes that have occurred due to that influence. It was our intent to focus only on the impact(s) of ALEC in regard to the Congressional corruption arising from their activities. The vast size of ALECs network and its involvement in both the public and private sectors on all levels has made concentrating upon federal issues difficult to accomplish. Since ALECs network operates smoothly at all levels of local, state, national, international governments and in the private sector, their influence touches and impacts each equally. For nearly forty years ALEC and its conservative founders, members, supporters and benefactors have remained well under the radar of the media, investigators and those who involve themselves in monitoring and tracking government activities. Quietly and with deft determination they worked in conjunction with corporations, some religious groups and the wealthiest families and foundations in America to build a huge and complex - yet tightly defined - network. Over the past two decades this network began to merge corporate will with political control. Now this will and control have become concentrated in the hands of a few multi-national companies, their wealthy owners and willing politicians retained to enable continued prosperity for this CABAL. While this was happening, we paid little attention to this network, unaware even of their existence - until January of this year. Once the CABAL swept into many state and Congressional seats, they immediately began to flex their political and corporate muscles. Quickly they began openly attacking the very foundations of democracy by attacking public education, healthcare for the masses, workers rights and a myriad assortment of other important issues. Our research uncovered Charles and David Kochs pursuits of funding this CABAL. They do so in exchange for weaker more corporate friendly environmental, economics, privatization and anti-worker laws. To assist in these efforts they bought a Page 64

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strong ultra conservative voice in politics through the Tea Party. Through these efforts they have increased their influence upon the government and legislation exponentially. While some are aware of the activities that have begun to surface about interference upon our state laws and legislators by Koch and ALEC, few realized that such interference was also ongoing at the federal level. Fewer still had any idea these activities by conservative individuals, organizations or think tanks involved our mainstream media and only a handful were aware of the connections to and influence upon our Supreme Court. Clearly as this report provides, ALEC and the CABAL have created a well organized, well funded and dedicated membership already in place and functioning to exert their ideologies upon society. If after reading this you come to the conclusion that they are operating as if they have a business plan or road map they follow, you are right. In 2000 Eric Heubeck wrote and published a treatise titled: The Integration of Theory and Practice: A Program for the New Traditionalist Movement24. VLTP strongly

urges those receiving this report to put Heubecks lengthy conservative diatribe on their suggested reading list. This really is a roadmap that is being closely followed and implemented by those identified as being a part of the Koch/ALEC network. ALEC is a tax exempt charity operating under an IRS 501 (c)(3) exemption as a charity. The IRS and Congressional rules governing such an organizations contact with or involvement within Congressional matters are more stringent than at the state level. Once ALECs Legislative members are elected to Congress and move away from their positions as state lawmakers, they resign their official ALEC membership. This is to avoid any appearance of - or actual - influence at the Congressional level through ALEC. This Report reveals that though ALECs Alumni are no longer official members of the organization, they do in fact remain dedicated to and supportive of ALECs pursuit of legislative pursuits, initiatives and conservative ideology. Many of the relationships they formed with corporate members of ALEC as state lawmakers are continued once they advance to the level of a Congressional seat.
rticles/Free_Congress_Foundation_Integ ration_of_Theory_and_Practice.htm


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All of this leads to the conclusion that though ALEC has continuously claimed they are a charity and tax exempt, their behavior refutes that. By meeting with state and federal legislative committees to argue 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 federal judiciary used to be unheard of and not condoned either by the Judges or society. In todays conservative Koch and ALEC atmosphere, such has become the norm. Recently ALECs sister charity in the UK, Atlantic Bridge, just collapsed, taking Britains 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 other countries; Poland, Australia, New Zealand, Germany, Moldavia and even China. Visit the following page link: at ALEC for a complete listing of the eight countries represented by seventeen International Delegates.

Moldovan Prime Minister Vlad Filat and ALEC Executive Director Ron Scheberle discuss business opportunities in Moldova at a roundtable at ALEC on January 21, 2010.

ALEC briefing with representatives from the Peoples Republic of Chinas Commerce Ministry on Dec ember 7, 2009

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Finally, by showing the clear associations to and upon everything from state legislation to Congress, the Supreme Court and beyond, we now have a more complete picture of the power, influence and activities that have pushed our very democracy to the breaking point. In the fight over taxation of the wealthy, the debt ceiling, immigration, workers rights and privatization - the faces of those behind the argument on the Conservative/Republican side become clearly visible. The corporations individuals, organizations and the mechanisms used are visible as well. Through legislation, paid interns, whispers into the ears of ALEC members in the State legislatures and ALEC "alumni" in the U.S. Congress, and expensive and corruptive influence(s) within the highest courts in the land, the CABAL has taken away many of our freedoms and are looking to wrench the rest from us. For the past 40 years it has been America that has suffered at the hands of this network. Now with our money in their pockets, our homes under mortgage title to them, and our ability to resist through activism and demonstrations decimated by lack of access to the MSM, they have turned their focus upon the rest of the world

through ALEC. If we do not stop them here and now, we will be responsible for our own continued losses of rights and freedoms as granted to us by The Constitution and the founders of our country. The first and most important step is to fully expose this CABAL. The second step is coming in less than a year: abolish them. VOTE. Vote each and every one of the ALEC enabling state legislative members and the Congressional Alumni out of office. It does not matter who we vote for to take their place as long as whoever it is, they do not fall under the sway and influence of ALEC. The third step is to stop corrupt lobbying at all levels of government. There must be transparency about who writes our legislation, and why a specific bill was written. Those identified in this Report are the enablers who have fought for deregulating banks, mortgage companies, investment houses, more mass incarceration, and privatization of our public assets. They have worked quietly behind the closed doors of ALEC and our Houses of Congress to get their way. Now that we know we must do everything in our power to put an end to it and return our democracy to a place of respect and envy upon the world stage.

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End Notes
1 2 3 4 5 6 7 8 9

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).
10 eport.pdf
11 12

13 14
15 16

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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
18 19 20 21

22 (Scroll down to find Schauder)

23 24

ibid m.pdf

family foundations

26 27 28
29 30 31 32 (scroll down on the left)
33 34 35

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36 37 38






47 48 49 50 51 l

Richard Fink

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54 &newmem=N

56 &newMem=N&recs=20
57 58


62 l#top
63 html
64 (starts on page 147)

65 66 67 68

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69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 ibid
88 89

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91 92 93 94 95
96 97 98 (photo of Henry Butler speaking at an ALEC Summit meeting).

99 (showing grants from Koch, Olin, Coors, Scaife).

101 102 103 104
105 106 107

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108 109 110 111 112 113 114

115, (Chapter 3 pg. 25).

116 ates&hl=en&as_sdt=2,15&as_vis=1
117 118 119 120 121 122 123 nternet_Services
124 125 126 127 (pgs 9-10).

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128 129 130 131


Institute for Justice Ibid.

133 134 135

McDonald v. City of Chicago,

137 138
139 5.pdf
140 141 (video of Mark Behrens addressing MO. Legislature in support of ALECs Asbestos and Silica Claims Priorities Act.
143's%20answer%20to%20Coali tion%20for%20Litigation%20Justice%20amicus.pdf

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145 146 147 148 149 150 151 152
153 154 155 Opportunities/default.htm
156 157 158 159 160 161 ervative/
162 163 164

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165 166 167 168

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