Subject: [SocialistWorker.org] The corporate lobbyist playbook
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http://socialistworker.org/2012/06/26/the-corporate-lobbyist-playbook
Analysis
======== THE CORPORATE LOBBYIST PLAYBOOK =====================================
In an exposé first published at Truthout.org [1], Steve Horn and Sarah
Blaskey show how a host of corporate lobbying groups create and bend laws in
their favor.
June 26, 2012
HOW IS it that no matter whom we elect as our state
representatives--Democrat, Republican or other--we most often end up with
policies that privilege the corporate agenda over the public interest?
It's a simple question, raised by laws promoting charter schools, fracking,
union-busting, privatization, deregulation, and countless other
corporate-friendly policies that have spread like wildfire around the
country, particularly in recent legislative sessions.
As it turns out, the answer is relatively simple. Big business in the United
States has perfected a legislative "playbook"--a methodical strategy for
turning the wish list of multinational corporations into a state-level policy
agenda with bipartisan support.
The specific details of legislative processes are many and intricate, yet the
corporate playbook for exploiting state-level policy is straightforward and
critical to understand.
To the extent there has been any discussion [2] of this playbook at all, it
has centered almost exclusively on the role of the conservative American
Legislative Exchange Council [3] (ALEC) and its model legislation process
[4].
But a closer examination reveals a well-coordinated network [5] of many
corporate-sponsored organizations--not ALEC only--that are influential in
state politics. "Stealth lobbyists" [6] use this network to advance their
clients' agendas in statehouses nationwide.
*The playbook's background: Big players and their network*
If corporate America's playbook were actually in print, one of the oldest,
most worn, most often referenced, most scribbled-on versions of it would be
in the hip pocket of Michael Behm.
Behm is the senior vice president of Stateside Associates [7], a
Virginia-based firm [8] that specializes in stealth lobbying [9].
*The most powerful lobby firm of which you've never heard*
Founded in 1988, Stateside [10] is self-described [11] as the "industry
leader" in state and local governmental affairs counseling. The company's
home page [12] tempts potential clients with a program that "transcends the
conventional categories" of lobbying. The page further explains:
>State and local government relations--done well--protects the bottom line,
>promotes brand awareness, builds champions among policymakers and safeguards
>the ability of corporations and associations to succeed.
>
Stateside's corporate clients [13] are a testament to the success of its
strategy. They include the likes of Visa, FedEx, Intuit, Microsoft, the
Grocery Manufacturers Association and United Technologies. Past clients have
described [14] the firm as "essential," "proactive" and "unmatched."
A lobbying behemoth--the self-proclaimed largest firm [15] of its
kind--Stateside has enough tricks up its sleeve to tackle even the most
difficult, and often delicate, lobbying cases.
"We came to Stateside Associates asking them to accomplish a complex,
nationwide task in a very short time frame. Stateside came through with
flying colors, sooner than expected and needed almost no direction after
getting the assignment," testified Thomas Kerr [16], vice president and
assistant general counsel for Bayer Corporation.
Despite the complexities inherent to its acclaimed case-by-case lobbying
approach, Stateside's successful strategy begins and ends with the same
corporate playbook.
In fact, Stateside's founder, CEO and President, as well as former Executive
Director of ALEC [17], Constance Campanella [18], was among the first to turn
the unspoken playbook of corporate America into a concrete lobbying practice.
The playbook's related service at Stateside is now called "Groups Practice"
[19] and is run by none other than Behm himself.
So, what exactly is "Groups Practice"?
*"Groups"--ALEC, CSG, NCSL and more*
"Groups" is the bland euphemism coined [20] by Stateside's Campanella to
refer to 501(c)(3) nonprofit organizations that provide education and
networking opportunities specifically to state-level elected officials.
"Groups Practice" is Stateside's name for a stealth lobbying strategy
oriented around these Groups.
If advocacy happens through the Groups, then expenses for what is in effect
lobbying are considered tax-deductible charitable donations, unlike all other
lobbying expenses. In addition, stealth lobbyists don't have to be registered
[21] to influence and sometimes even vote on model legislation.
By far the best-known of the Groups is ALEC [22], infamous for its role in
promoting Castle Doctrine [23] and voter ID legislation [24]. ALEC has also
been influential in spreading charter schools [25], tort reform [26],
union-busting [27] and overall deregulation [28].
But ALEC is far from alone in this game.
The three largest "other ALECs [29]," and the most influential Groups in
state politics are the Council of State Governments [30] (CSG), the National
Conference of State Legislatures [31] (NCSL) and the State Legislative
Leaders Foundation [32] (SLLF). There are similarities in processes and
structure among these organizations, but there are also several important
differences.
Some, like CSG and NCSL [33], are essentially professional associations with
automatic membership for all state-level elected officials. Though they are
supported in large part by public tax dollars, both of these Groups also
receive a substantial amount of support from private donors.
ALEC [34], with its selective membership of a primarily Republican Party
membership base, has a right-wing ideological edge that the others lack. SLLF
[35], like ALEC, is a purely corporate-funded Group, but it specifically
targets legislative leaders in both the mainstream parties.
However, the shared structure of all the Groups--their nonprofit tax
status--allows them all to be exploited, albeit to varying degrees, by their
corporate sponsors. Groups are granted their nonprofit, tax-exempt status due
to their declared educational purpose. This tax exemption is just icing on
the cake for corporate sponsors that gain access to Group legislative
membership.
Part One [36] of this series described each of the largest Groups, providing
information about membership, meetings, policy positions and in some cases
model legislation. This part focuses on how corporate lobbyists use this
network of Groups to turn a private agenda into public policy.
*Powerful, but far from unique*
The niche of stealth lobbying is so profitable that in addition to Stateside,
other firms also participate. One is MultiState Associates [37]. This firm,
founded four years before Stateside in 1984, employs the same overall
strategy of using the Groups to promote corporate agendas.
MultiState offers a flexible, "full range" [38] program to respond to the
changing needs of corporate clients [39], which in the past have included
Honda North America; Bechtel Enterprises, Inc.; the American Automobile
Association; Engineering THE LAW, Inc. and others that are unlisted. The firm
employs a unique, nationwide network of lobbyists [40] that "can assist
quickly and efficiently in helping clients strategize."
Just as Campanella has had prominent roles in both ALEC and Stateside, some
of MultiState's lobbyists are involved in the same revolving-door of
leadership between the Groups and stealth lobby firms. MultiState's Senior
Adviser Daniel Spargue [41], for example, served as the executive director
and CEO of CSG for 19 years before jumping ship to accept his current
position.
But how exactly do lobby firms like Stateside and MultiState use the Groups
(NCSL, CSG, SLLF and ALEC) to advance corporate agendas? What "expertise"
[42] did Spargue and Campanella pick up during their time working as CSG and
ALEC senior staff?
It is time to turn to the lobbyists' playbook itself.
*The playbook*
The objective of the Playbook is to begin with a private agenda and end with
a public policy with bipartisan support. These are the six simple steps to
achieving that goal.
*Step one: Fund Groups*
Donations to Groups are tax-deductible [43] investments. In practice,
donations open the door to stealth lobbying opportunities for some of the
world's biggest and most lucrative multinational corporations.
Stateside's web site [44] explains that being involved in the
Groups--something that requires a donation--is an important part of any
government affairs strategy because it provides access to the Groups'
meetings. These meetings, or conferences, provide "opportunities to educate
and motivate policymakers and build sustained professional relationships."
Stateside's "Schedule by Organization" [45] demonstrates that its lobbyists
are active in all the Groups, as well as every professional association of
state government officials, giving them the opportunity to meet thousands of
legislative leaders on both sides of the aisle.
Stateside is a major backer of the NCSL Foundation and gave it $12,500 as a
"Gold Sponsor" [46] in 2012. It was last documented paying annual dues [47]
to the CSG Associates program in 2011.
Taking a similar approach, Leonard Gilroy of the Reason Foundation [48], a
Koch Family Foundations-funded think tank that promotes free-market policies,
calls himself "agnostic" in that he goes to all of the big Groups' functions.
He calls these Groups "variations of the same theme."
"I hate to say it this flippantly, but sometimes I forget where I am--you
know, is this ALEC or NCSL? They're not that different," Gilroy remarked in
an interview with Truthout.
Indeed, some of the largest corporations like Koch Industries have decided to
skip the middlemen by directly funding NCSL [49], CSG [50], ALEC [51] and/or
SLLF [52], giving their own lobbyists access to every state-level legislator
in the nation. The list of stealth lobbying giants that have recently funded
all four of the biggest Groups includes AstraZeneca Pharma; AT&T Corporation;
Chevron Corporation; Comcast Cable Communications; International Paper;
Intuit; Kraft Foods Global, Inc.; and Procter & Gamble. Of course if any of
these companies needs extra support with an especially big issue, they can
also hire the services of firms like Stateside and MultiState.
*Step two: Representation on Group boards, task forces*
In order to be able to raise agenda points, promote a policy or do anything
beyond the standard conference "schmoozapalooza [53]," lobbyists must in most
cases participate in Group meetings, committees and task forces.
Stateside makes a conscious effort [54] to put its lobbyists into Group
leadership roles in order to advance the interests of its client base. Behm,
for example, has participated for decades on various Group boards and task
forces, including subcommittees [55] of the NCSL Foundation [56]. He also
attends [57] the CSG Suggested State Legislation [58] (SSL) Committee
meetings [59] and said in an interview with Truthout that he has worked with
every SSL committee chair throughout his 20-year tenure.
But it doesn't stop there.
According to a press release [60], Behm is currently serving his fifth
consecutive term as the vice president of the NCSL Foundation, a
public/private board charged with determining which NCSL programs to
fund--and with providing the funding to boot.
"In his role as Vice President, Behm has raised the profile of the Foundation
and has worked with the Board to increase fundraising efforts," the release
stated. In other words, Behm has increased the private sector's involvement
in NCSL, allowing a corporate-friendly agenda to shape public policy.
Coordination of advocacy efforts in various Groups, in part through
leadership positions like Behm's, is an important part of Stateside's
expertly-crafted, "hands-on" approach [61] to lobbying. But Behm's
hyper-involvement also highlights an "interlocking directorate" [62] of
leadership that manages the Groups.
The interlocking directorate is formed by the participation of individuals
from both the private and public sectors in the leadership of more than one
Group. Behm, for example, directly links NCSL [63], CSG [64] and Stateside.
The significance of the interlocking directorate is twofold.
First and most obvious, it means that the Groups cohere into a network with a
shared perspective lent to them by their common members. Second, the common
members form ties between the Groups and lobbying firms like Stateside and
MultiState, further blending public and private agendas within the network.
*Step three: Set a pro-business education agenda*
One of the primary functions of the Groups and the main reason they are
allowed their nonprofit tax status in the first place, is that they host a
range of educational meetings and conferences for state officials [65].
Behm, a long-term observer of the education process through CSG and NCSL,
told Truthout that educating legislators is the Groups' most important
function. By his judgment, state legislators are just "regular people," who
are underprepared when they are elected and who need to be trained to do
their job as leaders.
"These folks come into office desperately needing guidance about state
budgets. They come in not understanding how the federal government works,"
Behm said.
In response to the immense knowledge gap legislators experience, especially
when first taking office, Group conferences host sessions on everything from
the environment, to education, to the economy, to basic organizational
skills. Content of the education sessions favors corporate concerns and
perspectives.
The 2012 NCSL Legislative Summit [66] provides an example of the type of
education elected officials receive. Self-described as "the nation's premier
meeting of legislators and staff," the Summit is expected to feature ideas
for cutting millions from state budgets. This conference, to be held in
Chicago in August, will host speakers like Douglas Oberhelman [67], CEO of
Caterpillar Inc. and head of the board of directors of Eli Lilly, as well as
Edward B. Rust Jr. [68], CEO of State Farm Mutual and recently named vice
chairman of the US Chamber of Commerce [69].
The 2011 CSG Energy and Environment Task Force [70] meeting included an
education session [71] titled, "The Global Value of Coal: Clean Coal
Technologies Open the Door," which presented "clean coal" [72] as the
solution to "global electricity poverty." This is far from the "neutral"
perspective that Wisconsin Democrat Mark Pocan, of ALEC Exposed [73] fame,
told Truthout in an interview that he sees at all major Group meetings except
those hosted by ALEC.
While the free-market ideology [74] of ALEC is clear, the perspective of
other bipartisan Groups becomes harder to define, though the limits are
clearly set by the invisible hand of corporate America.
NCSL's perspective is based loosely on states' rights [75] and often promotes
increasing "flexibility [76]."
Though a CSG perspective has never been formally articulated in any way, its
CEO David Adkins said in a press release that, during his time as governor of
Puerto Rico, current CSG President, Gov. Louís Fortuño, demonstrated
"attributes" CSG hopes to emulate.
On closer inspection, Fortuño's "innovative solutions" recognized by Adkins
were actually rampant privatization campaigns in Puerto Rico [77] implemented
in an effort to reduce a $3.3 billion budget deficit [78].
The education system in the Group Network is also multi-tiered, providing
extra levels of corporate tutelage for more invested legislative leaders.
Each Group hosts broad, membership-wide educational conferences, like the
NCSL Legislative Summit mentioned above.
But some Groups also host more specialized training programs. CSG, the
largest of them, hosts leadership training programs for first-time
legislators [79], for "the next generation of legislative leaders [80]," and
for "the nation's top state government officials from all three branches
[81]," among many other specialized programs.
Most of the smaller leadership trainings are by invitation only, after a
nomination process based loosely on nominees showing interest and aligning
themselves with the CSG's perspective. Individuals who don't favor
corporate-friendly approaches to the issues are unlikely to make the cut.
*Step four: Schmooze*
The most common form of state-level stealth lobbying involves creating
personal relationships [82] between public and private sector Group members.
Most frequently, this occurs at corporate-sponsored meals and outings between
policy sessions at various Group conferences.
Fred Risser [83], a Democratic Party state senator from Wisconsin and
longest-serving [84] state-level public official in US history, explained
that Group conferences are great places to network both with the public and
private sector. Risser has participated [85] in both CSG and NCSL in the
past.
"I have created lifetime relationships with individuals I have met at these
conferences and I have found that on occasion contacting them outside the
confines of these conferences has proved quite valuable," Risser said in an
interview with Truthout.
Michael Adams, director of Strategic Planning for the Virginia Senate, agreed
with Risser [86]saying, "The most important opportunity is to be able to
network with people who have similar responsibilities in other places."
Personal relationships also help lobbyists like Behm keep their thumb on the
pulse of state government. Stateside boasts [87] of more than 4,000
legislative contacts that facilitate its successful stealth lobbying
strategy.
*Step five: Model legislation*
The most notorious aspect of this playbook, which put ALEC on the map, is the
model legislation process--a process of legislative template sharing through
either CSG [88], ALEC [89] or both.
In his professional blog [90], Behm wrote that few other Group conference
sessions "stimulate the heart rates" of lobbyists more than those dealing
with the model legislation process.
Stateside's web site boasts [91] that its lobbying program has been
successful in both securing the adoption of model bills that lead to
favorable legislation for clients and defeating model legislation
"potentially damaging to a client."
According to ALEC's web site [92], "State legislators often find model bills
valuable for learning from each others' experiences and expertise." In other
words, model bills make it easier for legislators to share ideas, thus
increasing the likelihood that similar legislation will be enacted
nationwide.
That holds true for model bills endorsed by both Groups. Whether via CSG [93]
or ALEC [94], lobbyists from the private sector are allowed to recommend that
a certain model be endorsed or rejected. Often this recommendation is made by
a vote in the task force, behind closed doors, charged with screening model
legislation. However, only public-sector members get a final say in the
matter.
ALEC [95] generally endorses bare-bones model bills that are then widely
distributed as templates. By contrast, CSG [96] prefers to distribute
templates based on previous enactments--meaning bills already passed in at
least one state or territory--rather than drafting models from scratch.
Though it might be easier to push an agenda into law through ALEC, special
interests hoping to have broader (read: bipartisan) support for their model
bills turn to CSG. Lena Taylor, another Democratic Wisconsin state senator,
of "Fab 14 [97]" fame (referring to the 14 senators who fled the state of
Wisconsin during the 2011 protests [98]), said in an interview with Truthout
[99] that CSG models are more respected and thus easier to distribute because
they represent bipartisan endorsements.
Taylor herself, introduced legislation [100] that opened the state of
Wisconsin to an influx of virtual charter school providers. A few years
later, her bill was endorsed as CSG model legislation [101].
*Step six: Model bills distributed nationwide*
After becoming a CSG [102] or ALEC [103] model, the bill must be distributed
to statehouses everywhere by agenda-friendly legislators, who have been
through the corporate-filtered Group education system--legislators who have
brushed shoulders with some of the most powerful private interests in the
world.
This is where the normal legislative process [104] begins. Lobbying at the
statehouse itself is a transparent process compared to lobbying in the Groups
because participating lobbyists have to register, and any expenses, however
nominal, are not tax-deductible.
Though the skids are often greased by this point in time, this type of
lobbying still can be necessary. As ALEC points out, [105] a model bill is
only considered for enactment if a legislator sponsors it and others vote on
it.
Adding the final touch to their lobbying strategy, Stateside [106] and
MultiState [107] both provide access to networks of lobbyists,
well-positioned in statehouses around the nation, to assist with this final
step.
This all begs the question: does this strategy really work?
*Case study: Stateside and the Department of Defense*
Stateside funds all of the major Groups and participates in all the meetings
[108] that they sponsor. The firm has lobbyists like Behm strategically
placed on various influential boards and maintains relationships with
thousands of legislators and legislative aides. This provides a general
framework that allows Stateside to craft specific strategies for individual
clients, Exhibit A being the US Department of Defense (DoD).
In the past, Stateside and the DoD have worked together [109], to prevent
civilian encroachment on military facilities. "Civilian encroachment" [110]
is a euphemism for common citizens getting in the way of the building of
military bases and other facilities around the U.S., i.e. hindering the
military agenda.
As the National Academy of Public Administration explains [111],
"Encroachment, which includes incompatible civilian development near military
facilities and the expansion of military operations into civilian areas, is
reducing the military's ability to train its fighting forces and execute its
missions."
The real question here, summed up: is this preventing "encroachment" or
granting the DoD carte blanche to land grab in areas heavily populated by
civilians? The latter appears much more likely, given the clout of the
military-industrial complex [112] in domestic and global affairs.
One of the Stateside's first actions was to create [113] a NCSL Executive
Committee Task Force [114] dedicated to this issue.
In 2008, around the time the Task Force was being established, Stateside also
endorsed [115] a "sustainability summit" co-hosted by the DoD and NCSL.
Legislators from twelve states were invited to attend [116]. Behm and his
associate at Stateside, Adriane Miller, also participated.
More educational meetings were also hosted by NCSL on the subject, most
recently the 2011 Task Force on Military and Veteran's Affairs meeting [117]
that Behm also attended. The Task Force adopted three policy positions [118]
related to the DoD's agenda.
The DoD agenda isn't just isolated to NCSL, however. CSG Committees have
passed related resolutions [119], and also endorsed a model bill [120]
addressing the issue of encroachment.
In order for the DoD-oriented template bill to be endorsed as a CSG model, it
had to first become the law in at least one state--in this case, Kansas.
Originally the bill, HB 2445 [121], which prevents civilian encroachment on
military facilities without prior notification, reached the Kansas statehouse
in the hands of Rep. Tom Sloan (R-Kansas). After it was enacted in his home
state, Sloan brought it to CSG. He was recognized by the DoD [122] for his
role in getting the CSG model passed in 2010. [123]
"Preventing civilian encroachment on military facilities is important to
sustain the training capabilities at Ft. Riley, McConnell Airbase, Forbes
Field and the Smokey Hill National Guard facility. These facilities
contribute more than $8 billion annually to the Kansas economy," said Sloan
[124] in a press release.
The CSG model legislation process is old hat for Sloan. CSG has recognized
Sloan-sponsored enactments as its own models at least three times [125] in
the past.
Clearly integrated into the network of Groups, Sloan is an active part of the
interlocking directorate. He has worked with CSG, NCSL [126], Stateside
(through interaction [127] with Behm) and the DoD itself, successfully
blending their perspectives and assisting the process of turning a private
agenda into a public one.
It is the ultimate triple whammy for taxpayers. First, they are paying taxes
on their home and property. Secondly their federal taxes get siphoned into
the DoD's bloated budget, some of which is used to lobby--sometimes against
the homeowners' property interests. And then thirdly, adding insult to
injury, that taxpayer money is also pooled into respective state budgets,
where some of it is set aside into appropriations that fund groups like CSG
and NCSL, where the military agenda is being pushed, as has been shown,
full-steam ahead.
This same basic strategy of exploiting the network of Groups for private gain
is recycled time and again through this well-oiled machine.
*Another layer of support for stealth lobbyists*
In the bureaucratic quagmire of Groups, sometimes even the best stealth
lobbyists need a little help from like-minded friends.
For this, they turn to lobbyist trade associations like the State Government
Affairs Council [128] (SGAC). SGAC is a private organization, fully funded by
contributions from the private sector.
Headquartered [129] in Alexandria, Virginia, (in the same building [130] as
MultiState Associates) SGAC provides "networking" [131] and "professional
development" [132] opportunities for private-sector stealth lobbyists hoping
to employ the corporate playbook and exploit the Groups Network. Over 182
multinational corporations and/or their affiliated trade associations paid
for a SGAC membership in 2012 [133].&SGAC has connections to all of the major
Groups and is a major player in the network. It also hosts its own
public/private meetings, the most important and prominent being the annual
Leaders Policy Conference [134] (LPC).
Sponsored by the SGAC Foundation [135] in cooperation with CSG and NCSL, the
LPC is a corporate-sponsored educational opportunity provided exclusively
for, the legislative leadership of all 50 states, NCSL, CSG Executive
Committees, ALEC Board of Directors, SGAC members and private sector
representatives. It is at this forum where one can see quite clearly that
ALEC is merely a small part of a vast network, a network which is the engine
that fuels state governments' nationwide on a bipartisan consensus.
SGAC's relationship with other organizations in the network is personified by
its immediate past President and current Board member [136], Christopher
Badgley [137]. Badgley, a lobbyist for the Pharmaceutical Research and
Manufacturers of America, is also a member of the Associates Advisory
Committee of CSG and is a member of various health and human services
committees [138] for CSG, ALEC and NCSL, making him one of the most
well-connected lobbyists in the network.
Well-positioned stealth lobbyists like SGAC's Badgley, Stateside's Behm and
Campanella, as well as Gilroy from the Reason Foundation, are all part of the
interlocking directorate that controls the tightly knit network of Groups.
*The takeaway*
Clearly, the corporate playbook in the statehouses extends far beyond the
tentacles of ALEC, which is but a small part of a vast, complex network of
nonprofits.
The multilayered, dynamic system of corporate representatives mingling with
state legislators and public officials in a network of quasi-governmental
nonprofits, allows the small number of people who are part of the
interlocking directorate to wield a huge amount of power in shaping public
policy. Under the guise of conducting educational activities, the stealth
lobbyists of the "other ALECs" reduce the choice of citizens to which version
of the corporate agenda to accept.
Will citizens, then, continue to accept such a scheme? Time will tell.
/First published at Truthout.org [139]/.
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