BEHIND CLOSED DOORS: THE AMERICAN LEGISLATIVE EXCHANGE COUNCIL AND PENNSYLVANIA LEGISLATION

How a secretive group of corporate lobbyists are writing Pennsylvania’s laws

Keystone Progress August 2, 2011

“Myself, I always loved going to these meetings because I always found new ideas. Then I’d take them back to Wisconsin, disguise them a little bit, and declare that ‘It’s mine.’” Former Wisconsin Governor Tommy Thompson [From a luncheon speech to ALEC, April, 2002, Corporate-Sponsored Crime Laws,
American RadioWorks, April 2002]

When politicians say their state is “open for business,” they usually mean that it is business-friendly. In the case of much of Pennsylvania’s Republican General Assembly leadership, they mean it literally. They are members of a secretive organization that links conservative lawmakers and corporate power brokers, called the American Legislative Exchange Council or ALEC. ALEC’s corporate members draft “model” legislation behind closed doors and then give it to their legislative allies to introduce and hopefully pass. It is legislation that is drafted for the sole purpose of favorably affecting the corporate bottom line at the expense of our democracy. ALEC is behind the efforts in Pennsylvania to pass bills that strip away union rights, scale back child labor laws, attack the regulation power of environmental agencies, suppress voter rights with strict identification requirements, eliminate the social safety net, and privatize public services. They not only have written the bills, but are frequently invited to testify on behalf of those bills once they are introduced in Pennsylvania. This model of spoon feeding legislators is a corruption of representative, open government and is an abrogation of duty on the part of our elected legislators. What is ALEC? The American Legislative Exchange Council (ALEC) is a conservative association, funded almost entirely by big business interests, that brings together corporate lobbyists and legislators. According to the Atlanta Journal-Constitution, “The organization, with a staff of 30 and a $5.5 million yearly budget, teams lawmakers up with corporate interests to push decidedly pro-business bills through state legislatures. Any lawmaker who is a member of the group can simply log on to its Web site and find hundreds of bills to copy. They can shop for ideas on how to curb class-action lawsuits, help the telecommunications industry or toughen the criminal justice system.” [Atlanta Journal-Constitution, 8/8/2005] While ALEC claims to be nonpartisan the vast majority of its board members and state chairs belong to the Republican Party. Of the 23 members of the public sector board in 2011, 23 are Republicans. Of the 73 filled state chairmen seats, 71 are held by Republicans (one is Democrat and one is non-partisan). [American Legislative Exchange Council Board of Directors, State Chairmen] In Pennsylvania, of the 23 identified ALEC members of the General Assembly, 22 are Republicans. ALEC provides legislators with a means to appear highly active in the legislative process by transferring their role in drafting legislation to corporate special interests. State legislative staff in PA is mostly focused on constituent services and generally lack the resources to research and develop public policy, so ALEC draft legislation allows legislators to appear that they are hard at work drafting bills. ALEC addresses this issue directly in their membership brochure stating “To date, ALEC has considered, written, and approved hundreds of model bills, resolutions and policy statements. Benefits of Membership: The ALEC policy staff provides research, policy analysis, scholarly articles, reference materials, legislative bill tracking, and expert testimony on a wide spectrum of issues. Through these publications ALEC serves as the ‘state legislators’ think tank.’” [ALEC Membership Application] In 2009, 826 ALEC Bills Were Introduced In Statehouses, And 115 Were Enacted Into Law. According to ALEC’s 2010 Legislative Scorecard, 826 pieces of ALEC legislation were introduced in statehouses around the country in 2009 and 115 were enacted into law. [American Legislative Exchange Council 2010 Legislative Scorecard] Some of the major ALEC funding sources include Richard Mellon Scaife’s Pittsburgh-based Allegheny Foundation, the Scaife Family Foundation, Exxon Mobil and Koch brothers-related funding sources. [Source: Media Matters Conservative Transparency] ALEC’s private sector (corporate) division is comprised of major corporations that pay a minimum of $5,000 per year just to have a seat at the table. Others pay up to $50,000 to sponsor events at ALEC meetings. Its legislator members pay only a nominal fee of $50 for a two year membership. [American Legislative Exchange Council 2001 brochure, “Corporate Edition”; ALEC Membership Application, Viewed March , 2011; ALEC Private Sector Membership] Pennsylvania’s ALEC Delegation

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Because of the secretive nature of the organization, it is difficult to know which legislators are members of ALEC. Keystone Progress has researched PA Department of State campaign finance filings, legislators’ websites and media reports to compile a list of 23 current Pennsylvania legislators who are members of ALEC, including much of the Republican leadership in both chambers. • • • • • • • • GOP House Majority Leader Mike Turzai (whose participation in ALEC is paid by state taxpayers) GOP House Majority Caucus Chair Sandra Major GOP House Caucus Administrator Dick Stevenson GOP House Judiciary Chair Ronald Marsico GOP House State Government Chair Daryl Metcalfe GOP Senate Majority Caucus Secretary Robert Robbins GOP Senate Judiciary Chair Stewart Greenleaf And GOP Chairs of numerous committees, including Representatives Matthew Baker (Health), Stephen Barrar (Veterans Affairs), Paul Clymer (Educational), John Evans (Game & Fisheries), Robert Godshall (Consumer Affairs), Kate Harper (Ethics), Dick Hess (Commerce), Ronald Miller (Labor & Industry) and Senators Charles McIlhinney (State Government), Jeffrey Piccola (Education), John Pippy (Law & Justice) The only identified Democratic PA member of ALEC is Rep. Harry Readshaw, Minority Chair of Professional Licensure. Rep. John Evans (R- Crawford, Erie) currently serves as ALEC’s PA chair. See complete list of PA ALEC members we’ve identified below. There are likely many more PA ALEC legislators than we’ve uncovered.

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ALEC’s Legislation in Pennsylvania Until now it has been difficult to show the connection between ALEC and corporate takeover of democracy. Last week The Center for Media and Democracy uncovered 800 bills and resolutions that were voted on by ALEC members, showing how its unelected corporate members are given a direct voice on the creation of bills that affect the lives of American citizens every day. The agenda embedded in these bills is about tilting the system into favoring those with money and power. Through de-regulation of industry, voter suppression and setting up barriers to direct democracy ALEC legislation has greatly influenced the political landscape in many states, including Pennsylvania. These bills align closely with the agenda of the Republican leadership in both chambers. With over 800 bills, it is impossible to compare each to the bills introduced in the PA House and Senate this year without reviewing each ALEC bill and comparing it to similar legislation in PA. However, Keystone Progress was able to identify a few bills that were written by ALEC and introduced in PA. Republican Rep. Matthew Baker used an ALEC Model Bill to challenge federal health care reform. [HB 42] An article published in the Pennsylvania Independent confirms this link: “Pennsylvania on Monday became the latest state to consider a bill to shield itself from a key portion of the new federal health care law that will require most Americans to buy health insurance or face potential fines starting in 2014…The one advanced by Baker is based on a model version written by the American Legislative Exchange Council, a Washington, D.C.-based nonprofit group that promotes limited government”. [PA Independent http://paindependent.com/2011/02/house-committee-moves-bill-to-block-federal-health-care-mandate/] Baker, strategically positioned as chair of the House Health Committee, joined with Rep. Curt Schroeder to introduce 2053 and 2179. According to ALEC’s press release on HB 2053 and 2179:
“The American Legislative Exchange Council (ALEC) -- the nation's largest nonpartisan individual membership association of state legislators -- congratulates Pennsylvania State Representatives Matthew Baker and Curt Schroder for filing House Bills 2053 and 2179, which protect the right of individuals to make their own health care choices...Pennsylvania joins 31 other states where legislators have introduced, or will introduce, legislation modeled after ALEC's Freedom of Choice in Health Care Act. Under the legislation, any state attempt to require an individual to purchase health insurance -- or forbid an individual from purchasing services outside of the required health care system -- would be rendered unconstitutional.” [ALEC Press Release,
January 26, 2011, link to ALEC also cited in http://inthebestofhealth.info/tag/house and numerous blog, e.g.: http://theunitedvoiceofamerica.com/UVABlog/conservative-news/pennsylvania-republicans-want-to-guarantee-right-to-buy-health-care/]

Selling private services to corporations is a major emphasis of ALEC’s work. One of their Model Bills, the Council on Efficient Government Act, proposes a council to review ways to transfer government services to the private sector. Rep. Seth Grove used ALEC’s Model Bill for his identically-named Council on Efficient Government Act. Grove apparently liked ALEC’s bill so much he didn’t bother to change it at all. The bill is a verbatim copy of ALEC’s legislation, right down to the makeup of the panel, terms of office and allowable reimbursement. [See side by side comparison in chart below]

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Likewise, Rep. Tina Pickett’s “Regulatory Review Act” and Sen. Mike Folmer’s “High-Risk Health Insurance Pool Act” are virtual copies of ALEC’s model bills, with only minor changes. The relationship between ALEC and PA legislators doesn’t stop with just writing legislation. After bills are introduced, ALEC leaders are frequently called to testify as “experts” on bills they crafted. Recent hearings on HB 726 featured ALEC Executive director Alan B. Smith and Jonathan Williams, Director of ALEC’s Tax and Fiscal Policy Task Force.
[http://www.pagoppolicy.com/Display/SiteFiles/112/Hearings/1_28_09/1_28_09_PDB_Transcript.pdf]

Legislative websites frequently cite ALEC as if they are a neutral, non-partisan organization. Dozens of GOP Representatives cite ALEC’s “Rich States, Poor States” on their websites.
[http://www.alec.org/AM/Template.cfm?Section=Rich_States_Poor_States1]

Rep. Stan Saylor is a member of the American Legislative Exchange Council’s Task Force on Tax and Fiscal Policy. Saylor cites ALEC’s in explaining the GOP House budget cut proposals in 2011, HB 2270.
[http://www.repsaylor.com/NewsItem.aspx?NewsID=6348]

ALEC is not just focused on cutting taxes and services, budgetary issues and healthcare. They have also been prime movers in the campaign to cut privatize education. The legislator who introduced the prime school voucher bill (SB 1), Sen. Jeffrey Piccola, links to ALEC the website from his own Education website. Piccola is chair of the Senate Education Committee. [http://piccola.org/education.htm] Another Pennsylvania ALEC relationship is Randy Smith, Exxon Mobil Government Affairs Manager. He represents Exxon Mobil on ALEC's corporate ("Private Enterprise") board as of 2011. Smith also sits on Governor Tom Corbett's Marcellus Shale Advisory Commission that considers the impact of natural gas drilling through the practice known as "fracking." [ http://paindependent.com/2011/03/marcellus-shale-commission-will-not-consider-severance-tax/ ] Are ALEC and PA Legislators complying with PA Laws? Numerous media articles since the 1990’s have reported that PA legislators have charged their ALEC memberships and junkets to ALEC conferences to Pennsylvania taxpayers. Likewise, it has been reported that the Commonwealth pays for legislators’ membership in ALEC. We cannot verify this information at present. Keystone Progress is preparing a Right to Know Law request to obtain all expenditures by the Senate and House related to ALEC. What we can report is that at least some ALEC members used to pay for their membership with campaign finance money. Since 2001, these are the reported payments to ALEC according to Department of State records [Searches for “ALEC” and
“American Legislative Research Council” dates 1/1/2001 through 7/31/2011 http://www.campaignfinance.state.pa.us ]

Friends of Kate Harper People to Elect Matt Baker Committee to Elect Ronald Rep. Ronald Miller Miller Committee to Elect Ronald Rep. Ronald Miller Miller Rep. Matthew Baker People to Elect Matt Baker Comm to Re-Elect State Rep. Rep. Sandra Major Sandra J. Major Rep. Richard Stevenson Friends of Dick Stevenson Sen. Stewart Greenleaf Citizens for Stewart Greenleaf Sen. Stewart Greenleaf Citizens for Stewart Greenleaf Rep. John Evans Friends of John Evans

Rep. Kate Harper Rep. Matthew Baker

4/30/2004 1/2/2003

$50.00 Montgomery $50.00 Bradford, Tioga

2/13/2005 $100.00 York 4/9/2007 $100.00 York 2/17/2005 $100.00 Bradford, Tioga 2/24/2005 5/25/2007 3/5/2001 2/25/2002 2/8/2005 $100.00 $100.00 $325.00 $325.00 $100.00 Susquehanna, Wayne, Wyoming Butler, Mercer Bucks, Montgomery Bucks, Montgomery Butler, Mercer

None of these expenditures are dated later than 2007. Since Pennsylvania legislators continue to attend ALEC in large numbers, it raises the question of who is paying the bill for these junkets? ALEC’s website indicates the group holds three legislative Task Force meetings each year. In addition, the organization also holds an Annual Meeting in the summer and a State & National Policy Summit in late November or early December. To make sure that lawmakers attend conventions, ALEC offers ‘scholarships’ to defray the cost of attendance for public

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sector members. In one memo, ALEC invited the Tobacco Institute to help raise money for the Legislative Scholarship fund by offering various sponsorships at a golf retreat. The Tobacco Institute was told that ‘an excellent way to recognize a deserving legislator from your state’ would be to sponsor a hole on the golf course. Other ways to contribute would be to pay $100 for a legislator’s green fees and golf cart rental, with the surplus going to the scholarship fund. ALEC also mentioned the option to buy an insurance policy that would award a car to anyone who made a hole-in-one on the course.” [ALEC Meeting Website; American Legislative Exchange Council letter to Samuel Chilcote, Jr., of the Tobacco Institute, May 14, 1987] One of the known PA recipients of an ALEC “scholarship” is Rep. Daryl Metcalfe who attended an ALEC meeting last year. “The American Legislative Exchange Council provided $1,465 worth of travel expenses for Rep. Daryl Metcalfe, RCranberry, to attend a meeting on safety and elections.” [Pittsburgh Post-Gazette, 8/15/10] PA Ethics Law says that legislators may accept gifts from outside interests and must disclose those valued at more than $250. They may take trips paid for by outside interests and must disclose those valued at more than $650 for travel related to public duties. The Keystone Progress Right to Know Law request will be seeking this information concerning ALEC gifts to legislators. The rest of the ALEC agenda

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ALEC’s model legislation covers a range of areas. Their Model Bills are broken down into nine categories: • Civil Justice • • • • • • • •
Commerce, Insurance, and Economic Development Education Energy, Environment, and Agriculture Health and Human Services International Relations Public Safety and Elections Tax and Fiscal Policy Telecommunications and Information Technology

These categories sound innocuous, but they hide an agenda which seek to strip away union rights, scale back child labor laws, attack the regulation power of environmental agencies, suppress voter rights with strict identification requirements, eliminate the social safety net, and privatize public services. The following are some of their Model Bills
[http://alecexposed.org/wiki/ALEC_Exposed]

Repeal All Prevailing Wage Laws. The Prevailing Wage Repeal Act Would, “Section 4. {Repeal of State Law.} Any and all prevailing wage laws are repealed.” ALEC drafted several bills designed to stop paycheck deductions of union dues. Examples include the “Public Employee Freedom Act,” which eliminates paycheck deductions for public employees only, the similar “Public Employee Payroll Deduction Policy Act,” the “Voluntary Contributions Act” which requires member approval before using funds for political purposes, the similar “Political Funding Reform Act,” and the “Prohibition on Compensation Deductions Act” which also impacts localities and state subdivisions. ALEC model legislation revokes tenure for teachers following two years of “insufficient academic growth” as defined by a new “State Council For Educator Effectiveness.” According to the bill, ““Probationary teacher” means a teacher who has not completed three consecutive years of demonstrated effectiveness or a nonprobationary teacher who has had two consecutive years of demonstrated ineffectiveness… There is hereby created the state council for educator effectiveness, referred to in this article as the “Council”…The purpose of the council shall be to ensure educator effectiveness, and shall be to consider options and make recommendations to the state board and the Legislature that seek to ensure that all licensed personnel are: (a) Evaluated using multiple fair, transparent, timely, rigorous, and valid methods, at least fifty percent of which evaluation is determined by the academic growth of their students…” [Great Teachers and Leaders Act]

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ALEC developed legislation which allows public employees to opt-out of union representation and dues. According to ALEC’s Public Employee Freedom Act , “A. Public employees shall have the right to represent themselves in their relations with the public employer. B. No provision of any agreement between an employee organization and a public employer, or any other public policy, shall impose representation by an employee organization on public employees who are not members of that organization. Section 5. No dues, fees, assessments or any other automatic payroll deductions by public employers from public employee payroll compensation shall be allowed for transmission to any public employee organization, any intermediary, or private individual, other than for primary and supplemental pension plans, life, health and other employee benefits, or contributions made to 501(C)(3) charitable organizations through a workplace givings program.” [Public Employee Freedom Act] ALEC opposes increases to the minimum wage. According to ALEC, "The Resolution in Opposition to Any Increase in the Starting (Minimum) Wage recognizes that increasing the starting (minimum) wage is counterproductive. An increase in the starting wage makes it more difficult for employers to bring teenagers, entry-level workers, and others who need job experience, into the workforce where they can gain skills, training and confidence." [ALEC, Resolution in Opposition to any Increase
in the Starting (Minimum) Wage]

ALEC is pushing a state level moratorium to block EPA and climate regulations. According to Environmental Policy Alert, “Backed by a group of conservative state legislators, a small but growing number of states are urging Congress to adopt a broad moratorium blocking most new EPA air and climate regulations, an approach that goes beyond the piecemeal approach House Republicans are adopting to target select agency measures. … The resolution, based on model language pushed by ALEC, will now be voted on in a popular referendum, according to a Mead spokesperson. Other states have introduced similar measures. The Indiana House Jan. 24 adopted a similar resolution and other resolutions have been introduced in Virginia, West Virginia, Texas, North Dakota, Kansas, Michigan, Kentucky, Montana, Minnesota, Iowa and Utah.” [Environmental Policy Alert, 3/9/11] ALEC is pushing a wide variety of bills to prevent or roll-back environmental regulation. ALEC is currently pushing several pieces of model legislation devoted to climate change, including ‘Conditioning Regulation of Non-Pollutant Emissions on Science,’ a ‘Resolution in Opposition of Carbon Dioxide Emission Standards,’ ‘State Responses to Kyoto Climate Change Protocol,’ and the ‘Climate Accountability Act.’ [ALEC Legislation] ALEC Private Property Protection Act Would Dismantle The Endangered Species Act, Clean Water Act And Clean Air Act. According to DOW/NRDC, “And consider this final case in point: ALEC’s ‘Private Property Protection Act,’ a bill that, if successful, ultimately could lead to the effective dismantling of such broadly popular environmental-protection laws as the 1972 Clean Water Act, the 1973 Endangered Species Act, and the 1990 Clean Air Act. This piece of “model” legislation grew out of an ALEC resolution that expressed the organization’s opposition to “any governmental attempt at whatever level and by whatever means to confiscate, reduce the value of, or restrict the uses of private property unless to abate a public nuisance affecting the public health and safety.” [Defenders of the Wildlife and NRDC, March, 2002]

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Known PA ALEC Members
Office Rep. Rep. Rep. Rep. Rep. Rep. Rep. Rep. Rep. Rep. Rep. Rep. Rep. Rep. Rep. Rep. Rep. Rep. Sen. Sen. Sen. Sen. Name Matthew Stephen Paul Jim John Matthew Robert Seth Kate Dick Sandra Ron Daryl Ronald Harry Stan Richard Mike Stewart Charles Jeffrey John Baker Barrar Clymer Cox Evans Gabler Godshall Grove Harper Hess Major Marsico Metcalfe Miller Readhsaw Saylor Stevenson Turzai Greenleaf McIlhinney Piccola Pippy R R R R R R R R R R R R R R D R R R R R R R

Counties Represented Bradford, Tioga Chester, Delaware Bucks, Montgomery Berks Butler, Mercer Clearfield, Elk Montgomery York Montgomery Bedford, Fulton, Huntingdon Susquehanna, Wayne, Wyoming Dauphin Butler York Allegheny York Butler, Mercer Allegheny Bucks, Montgomery Bucks, Montgomery Dauphin, York Allegheny, Washington Butler, Crawford, Lawrence, Mercer

Source
http://www.campaignfinance.state.pa.us/ExpenseSearchResults.aspx?RequestID=50604&SortOrder=0&StartRow=1&RowsPerPage=17 http://www.stevebarrar.com/bio.aspx http://articles.mcall.com/1994-10-30/news/3008572_1_children-s-health-public-safety-values http://blogs.mcall.com/capitol_ideas/2010/07/sometimes-they-write-themselves.html http://www.campaignfinance.state.pa.us/ExpenseSearchResults.aspx?RequestID=50603&SortOrder=0&StartRow=1&RowsPerPage=26 http://www.campaignfinance.state.pa.us/ExpenseSearchResults.aspx?RequestID=50604&SortOrder=0&StartRow=1&RowsPerPage=17 http://articles.philly.com/1990-02-04/news/25882426_1_montgomery-conservative-state-legislators-george-e-saurman http://www.repgrove.com/FederalHC.aspx http://www.campaignfinance.state.pa.us/ExpenseSearchResults.aspx?RequestID=50603&SortOrder=0&StartRow=1&RowsPerPage=26

http://www.campaignfinance.state.pa.us/ExpenseSearchResults.aspx?RequestID=50603&SortOrder=0&StartRow=1&RowsPerPage=28

http://www.campaignfinance.state.pa.us/ExpenseSearchResults.aspx?RequestID=50604&SortOrder=0&StartRow=1&RowsPerPage=17 http://alecwatch.org/members.PDF http://www.post-gazette.com/pg/10227/1080162-454.stm http://www.campaignfinance.state.pa.us/ExpenseSearchResults.aspx?RequestID=50604&SortOrder=0&StartRow=1&RowsPerPage=17 http://www.campaignfinance.state.pa.us/ExpenseSearchResults.aspx?RequestID=50604&SortOrder=0&StartRow=1&RowsPerPage=17 http://www.repsaylor.com/bio.aspx http://www.campaignfinance.state.pa.us/ExpenseSearchResults.aspx?RequestID=50603&SortOrder=0&StartRow=1&RowsPerPage=26 http://www.salon.com/news/politics/war_room/index.html?story=/politics/war_room/2011/07/28/denvir_alec http://elliottgreenleaf.com/sjg.html http://www.mcilhinney.com/chuck/links/links.htm http://articles.philly.com/1991-09-04/news/25800596_1_trip-expenses-house-members http://www.senatorpippy.com/press/2005/021705.htm

Sen.

Robert

Robbins

R

http://www.senatorrobbins.com/profile.htm

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ALEC “Model Bill” language

Language from bills introduced into the PA General Assembly (We have only included samples
where the language in ALEC’s Model Bill and the PA bill are identical. The language in some bills in identical from start to end, but we have included only small samples to show the obvious collaboration between ALEC’s corporate authors and PA legislators.)

ALEC Model Bill “Freedom of Choice in Health Care Act”
Section 1. Short Title. This Act may be cited as the “Freedom of Choice in Health Care Act.” Section 2. The people have the right to enter into private contracts with health care providers for health care services and to purchase private health care coverage. The legislature may not require any person to participate in any health care system or plan, nor may it impose a penalty or fine, of any type, for choosing to obtain or decline health care coverage or for participation in any particular health care system or plan.

HB 42 “Freedom of Choice in Health Care Act” (Baker)
Section 1. Short title. This act shall be known and may be cited as the Freedom of Choice in Health Care Act. Section 3. The people shall have the right to enter into private contracts with health care providers for health care services and to purchase private health care coverage. The legislature may not require any individual to participate in any health care system or plan, nor may it impose a penalty or fine, of any type,for choosing to obtain or decline health care coverage or for participation in any particular health care system or plan.

ALEC Model Legislation “Council on Efficient Government Act”
Section 1. {Title.} This Act shall be known and may be cited as the Council on Efficient Government Act. Section 2. {Council on Efficient Government; members; terms; vacancies.} (A) The Council on Efficient Government is established consisting of the following members: (1) The chief executive or administrative officer of a state agency who is appointed by the Governor. (2) Two members who are engaged in private enterprise and who are appointed by the Governor. (3) Two members who are engaged in private enterprise and who are appointed by the President of the Senate. (4) Two members who are engaged in private enterprise and who are appointed by the Speaker of the House of Representatives. (B) The terms of appointment to the council are for two years unless the chief executive or administrative officer of a state agency ceases to hold office. The Governor shall appoint a replacement member for the remainder of the unexpired term. (C) A member of the Council who is engaged in private enterprise is not eligible to receive compensation but is eligible for reimbursement of expenses, pursuant to state statute. (D) A member of the Council may not participate in a council review of a business case to outsource if the state agency is conducting the proposed outsourcing or, in the case of a member engaged in private enterprise, if the member has a business relationship with an entity that is involved or potentially could be involved in the proposed outsourcing. (E) A member of the Council who is engaged in private enterprise may not delegate the membership to a

HB 250 “Council on Efficient Government Act”
Section 1. Short title. This act shall be known and may be cited as the Council on Efficient Government Act. Section 3. Council on Efficient Government. (a) Establishment.--The Council on Efficient Government is established and shall consist of the following members: (1) The chief executive or administrative officer of a State agency who is appointed by the Governor. (2) Two members who are engaged in private enterprise and who are appointed by the Governor. (3) Two members who are engaged in private enterprise and who are appointed by the President pro tempore of the Senate. (4) Two members who are engaged in private enterprise and who are appointed by the Speaker of the House of Representatives. (b) Terms.--The terms of appointment for members to the council are for two years, unless the chief executive or administrative officer of a State agency ceases to hold office. The Governor shall appoint a replacement member for the remainder of the unexpired term. (c) Reimbursement of reasonable expenses.--A member of the council who is engaged in private enterprise is not eligible to receive compensation but is eligible for reimbursement of reasonable expenses, pursuant to State law. (d) Disqualification on council reviews.--A member of the council may not participate in a council review of a business case to outsource if the State agency is conducting the proposed outsourcing or, in the case of a member engaged in private enterprise, if the member has a business relationship with an entity that is involved or potentially could be involved in the proposed outsourcing. (e) Delegation prohibited.--A member of the council who is engaged in private enterprise may not delegate the

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designee. (F) A quorum shall consist of at least three members of the council. (G) Any vacancy on the Council shall be filled in the same manner as the original appointment, and any member appointed to fill a vacancy occurring for a reason other than the expiration of a term serves only for the unexpired term of the member's predecessor.

membership to a designee. (f) Quorum.--A quorum shall consist of at least three members of the council. (g) Vacancies.--A vacancy on the council shall be filled in the same manner as the original appointment, and any member appointed to fill a vacancy occurring for a reason other than the expiration of a term shall serve only for the unexpired term of the member's predecessor.

ALEC Model Legislation “Regulatory Flexibility Act”
(1) A vibrant and growing small business sector is critical to creating jobs in a dynamic economy; (2) Small businesses bear a disproportionate share of regulatory costs and burdens; (3) Fundamental changes that are needed in the regulatory and enforcement culture of state agencies to make them more responsive to small business can be made without compromising the statutory missions of the agencies; (4) When adopting regulations to protect the health, safety and economic welfare of [State], state agencies should seek to achieve statutory goals as effectively and efficiently as possible without imposing unnecessary burdens on the public; (5) Uniform regulatory and reporting requirements can impose unnecessary and disproportionately burdensome demands including legal, accounting and consulting costs upon small businesses with limited resources; (6) The failure to recognize differences in the scale and resources of regulated businesses can adversely affect competition in the marketplace, discourage innovation and restrict improvements in productivity; (7) Unnecessary regulations create entry barriers in many industries and discourage potential entrepreneurs from introducing beneficial products and processes; (8) The practice of treating all regulated businesses as equivalent may lead to inefficient use of regulatory agency resources, enforcement problems, and, in some cases, to actions inconsistent with the legislative intent of health, safety, environmental and economic welfare legislation;

HB 1349 “Regulatory Act”
(1) A vibrant and growing small business sector is critical to creating jobs in a dynamic economy. (2) Small businesses bear a disproportionate share of regulatory costs and burdens. (3) Fundamental changes that are needed in the regulatory and enforcement culture of agencies to make them more responsive to small business can be made without compromising the statutory missions of the agencies. (4) When adopting regulations to protect the health, safety and economic welfare of the Commonwealth, agencies should seek to achieve statutory goals as effectively and efficiently as possible without imposing unnecessary burdens on small business. (5) Uniform regulatory and reporting requirements can impose unnecessary and disproportionately burdensome demands, including legal, accounting and consulting costs upon small businesses with limited resources. (6) The failure to recognize differences in the scale and resources of regulated businesses can adversely affect competition in the marketplace, discourage innovation and restrict improvements in productivity. (7) Unnecessary regulations create entry barriers in many industries and discourage potential entrepreneurs from introducing beneficial products and processes. (8) The practice of treating all regulated businesses similarly may lead to inefficient use of regulatory agency resources, enforcement problems and, in some cases, to actions inconsistent with the legislative intent of health, safety, environmental and economic welfare legislation.

ALEC Model Legislation “High-Risk Health Insurance Pool Act”
(C) “Health insurance” means any hospital or medical expense incurred policy, nonprofit health care services plan contract, health maintenance organization, subscriber contract,or any other health care plan or arrangement that pays for or furnishes medical or health care services whether by insurance or otherwise, when sold to an individual or as a group policy. This term does not include short-term, accident, dental-only, fixed indemnity, limited benefit, or credit insurance, coverage issued as a supplement to liability insurance, insurance arising out of a workers’ compensation or similar law, automobile medical-payment insurance, or insurance under which benefits are payable with or without regard to fault and which is statutorily required to be contained in any liability insurance policy or equivalent self-insurance. (D) “Insured” means a person who is a resident of this state and a citizen of the United States who is eligible to

SB 218 “High-Risk Health Insurance Pool Act” (Folmer)
"Health insurance." A hospital or medical expense incurred policy, nonprofit health care services plan contract, health maintenance organization, subscriber contract or any other health care plan or arrangement that pays for or furnishes medical or health care services whether by insurance or otherwise, when sold to an individual or as a group policy. This term does not include short-term, accident, dental-only, fixed indemnity, limited benefit or credit insurance, coverage issued as a supplement to liability insurance, insurance arising out of a workers' compensation or similar law, automobile medicalpayment insurance or insurance under which benefits are payable with or without regard to fault and which is statutorily required to be contained in any liability insurance policy or equivalent self-insurance. "Insured." A person who is a legal resident of this Commonwealth and a citizen of the United States who is eligible to receive benefits from the pool. The term includes a

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receive benefits from the pool. The term “insured” may include dependents and family members. (E) “Insurer” means any entity that is authorized in this state to write health insurance or that provides health insurance in this state. For the purposes of this act, the insurer includes an insurance company, nonprofit health care services plan, fraternal benefits society, health maintenance organization, third party administrator, state or local governmental unit, to the extent permitted by federal law any self insured arrangement covered by Section 3, Employment Retirement Income Security Act of 1974 (29 U.S.C. Section 1002), as amended, that provides health care benefits in this state, any other entity providing a plan of health insurance or health benefits subject to state insurance regulation, and any reinsurer or stop-loss plan providing reinsurance or stop-loss coverage to a health insurer in this state. (C)(1) The usual customary charges or negotiable reimbursement for the following services and articles, when prescribed by a physician and medically necessary, shall be covered expenses: (a) hospital services; (b) professional services for the diagnosis or treatment of injuries, illness, or conditions, other than dental, which are rendered by a physician or by others at his direction; (c) drugs requiring a physician's prescription; (d) services of a licensed skilled nursing facility for eligible individuals, ineligible for Medicare, for not more than one hundred (100) calendar days during a policy year, if the services and reimbursements are the type which would qualify as reimbursable servicesunder Medicare; (e) services of a home health agency, of which the services are of a type which would qualify reimbursable services under Medicare; (f) use of radium or other radioactive materials; (g) oxygen; (h) anesthetics; (i) prosthesis, other than dental prosthesis; (j) rental or purchase, as appropriate, of durable medical equipment, other than eyeglasses and hearing aids; (k) diagnostic x-rays and laboratory tests; (l) oral surgery for partially or completely erupted, impacted teeth and oral surgery with respect to the tissues of the mouth when not performed in connection with the extraction or repair of teeth; (m) services of a physical therapist; (n) transportation provided by a licensed ambulance service to the nearest facility qualified to treat the condition; (o) processing of blood, including, but not limited to, collecting, testing, fractioning, and distributing blood; and (p) services for the treatment of alcohol and drug abuse, but the insured shall be required to make a 50 percent copayment and the payment of the plan shall not exceed $4,000. (2) as an option, the plan shall make available, at an additional premium, coverage for services provided by a duly licensed chiropractor.

dependent and family member. "Insurer." An entity that is authorized in this Commonwealth to write health insurance or that provides health insurance in this Commonwealth. The term includes an insurance company, nonprofit health care services plan, fraternal benefits society, health maintenance organization, third-party administrators, State or local governmental unit, to the extent permitted by Federal law any self-insured arrangement covered by section 3 of the Employee Retirement Income Security Act of 1974 (Public Law 93-406, 29 U.S.C. § 1002), that provides health care benefits in this Commonwealth, any other entity providing a plan of health established.

(1) The usual customary charges or negotiable reimbursement for the following services and articles, when prescribed by a physician and medically necessary, shall be covered expenses: (i) Hospital services. (ii) Professional services for the diagnosis or treatment of injuries, illness or conditions, other than dental, which are rendered by a physician or by others at his direction. (iii) Drugs requiring a physician's prescription. (iv) Services of a licensed skilled nursing facility for eligible individuals, ineligible for Medicare, for not more than 100 calendar days during a policy year, if the services and reimbursements are the type which would qualify as reimbursable services under Medicare. (v) Services of a home health agency, which services are of a type that would qualify reimbursable services under Medicare. (vi) Use of radium or other radioactive materials. (vii) Oxygen. (viii) Anesthetics. (ix) Prosthesis, other than dental prosthesis. (x) Rental or purchase, as appropriate, of durable medical equipment, other than eyeglasses and hearing aids. (xi) Diagnostic X-rays and laboratory tests. (xii) Oral surgery for partially or completely erupted, impacted teeth and oral surgery with respect to the tissues of the mouth when not performed in connection with the extraction or repair of teeth. (xiii) Services of a physical therapist. (xiv) Transportation provided by a licensed ambulance service to the nearest facility qualified to treat a condition. (xv) Processing of blood, including, but not limited to, collecting, testing, fractioning and distributing blood. (xvi) Services for the treatment of alcohol and drug abuse, but the insured shall be required to make a 50% copayment, and the payment of the plan shall not exceed $4,000. (xvii) As an option, made available at an additional premium, services provided by a duly licensed chiropractor.

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Questions to ask legislators This report is just the tip of the iceberg. Keystone Progress was able to compare only a small fraction of ALEC’s Model Bills to Pennsylvania bills. We encourage reporters and citizens to continue the investigation by asking legislators the following questions:
• • • • • • • Have any corporations weighed in on the drafting of any of your legislation or helped draft it, and if so, in what ways do they benefit? Do the co-sponsors of bills written by ALEC know that they were written by corporations, or were they deceived by the sponsor along with the general public? Are you attending the ALEC meeting in New Orleans this week? Have you attended other ALEC meetings in the past? If you have attended, who paid for the trip? If it was paid by ALEC, did you report the trip as a gift? Is attendance at a conference sponsored by, and attended by a number of lobbyists legal for legislators to attend? If it was paid by the Commonwealth taxpayers, will you show us receipts?

Is it legal for the Commonwealth to be paying for legislators to attend an event organized for the benefit of lobbyists?

Keystone Progress expresses its thanks to the Center for Media and Democracy and One Wisconsin Now for its assistance in compiling the information in this report. © 2011 Keystone Progress www.keystoneprogress.org info@keystoneprogress.org 717-889-9393-Harrisburg 610-990-6300-Reading

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