[EL] ALEC Tax Status (NCSL Foundation role)

[David Mason]

Again, my purpose is not to criticize the NCSL, but to make the point that
people who are attacking ALEC because it is corporate funded and attacking
ALEC's tax status because its activities involve legislation (not lobbying)
are being inconsistent.  I use NCSL resources professionally and appreciate
them.  Like NCSL, ALEC plainly posts its purposes
http://www.alec.org/about-alec/

But it does appear that the NCSL foundation 1) is substantially funded by
corporations and 2) advertises special access to legislators for those
donors.  The latter point is evidenced by the invitation (below) for donors
to post (secret) position papers on the NCSL web site and by this statement
on the Women's legislative network site
http://www.ncsl.org/legislatures-elections.aspx?tabs=1116,83,200:

"The Women's Legislative Network Alliance is a partnership program of the
Women's Legislative Network of NCSL. The Network Alliance includes
individuals from associations, foundations, and corporations who assist the
Network by providing consultation and financial support. Numerous
opportunities exist to work with women legislators and to contribute to the
Network by becoming an Alliance member or sponsoring an event or program.
Alliance members are invited to all Network events."

Among the current Women's Network alliance members listed are Coca Cola
(formerly an ALEC supporter) and other large corporations.

The sponsor list for the NCSL Foundation is here:
http://www.ncsl.org/about-us.aspx?tabs=1027,82,573, so it is disclosed.  It
is also lengthy.

If people are genuinely concerned about disproportionate corporate
influence in public policy, they might look at the NCSL foundation's
sponsor list.

If people are genuinely concerned about tax-advantaged opportunities for
corporate influence, they might criticize this.

So, my point is that the attacks on ALEC for corporate involvement and tax
status appear selective and ideologically motivated.

Dave Mason


On Fri, Apr 13, 2012 at 11:17 PM, Douglas Johnson
<djohnson at ndcresearch.com>wrote:

> The work, tax status and funding methods for NCSL's foundation is right
> there on the website: ****
>
> ** **
>
> http://www.ncsl.org/about-us.aspx?tabs=1027,82,570****
>
> ** **
>
> The Foundation is dedicated to building public trust and confidence in
> representative democracy through public outreach and education, ethics in
> government and strengthening state legislatures. The Foundation supports the
>  *Trust for Representative Democracy*<http://www.ncsl.org/Default.aspx?TabID=746&tabs=1116,87,245#1116>,
> the *Center for Ethics in Government* <http://www.ncsl.org/legislatureselections/tabid/746/default.aspx?tabs=1116,87,245>and
> the *Women's Legislative Network*.<http://www.ncsl.org/legislatureselections/tabid/746/default.aspx?tabs=1116,83,197>
> ****
>
> ** **
>
> (Each of the colored phrases is a link to the mentioned organization.)****
>
> ** **
>
> - Doug****
>
> ** **
>
> Douglas Johnson****
>
> Fellow****
>
> Rose Institute of State and Local Government****
>
> m 310-200-2058****
>
> o 909-621-8159****
>
> douglas.johnson at cmc.edu****
>
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> *From:* law-election-bounces at department-lists.uci.edu [mailto:
> law-election-bounces at department-lists.uci.edu] *On Behalf Of *Ellen Aprill
> *Sent:* Friday, April 13, 2012 5:27 PM
> *To:* Rick Hasen
> *Cc:* law-election at uci.edu
> *Subject:* Re: [EL] ALEC Tax Status****
>
> ** **
>
> I have spent some time on the NCSL and Uniform Law Commission websites as
> well as searching for them on Guidestar.  Neither appears to be a c-3 ---
> my guess is that they are each a government consortium under section 115 of
> the Code.  (I have written two too long and detailed articles on section
> 115). These governmental organizations are not subject to the strictures of
> c-3. ****
>
> ** **
>
> Both do have foundations, which are registered as c-3's.  It is a bit
> difficult for me to tell, whether from the websites or the Forms 990, just
> what the foundations do.   The limited access to the NCSL foundation does
> trouble me. ****
>
> ** **
>
>   Ellen****
>
> ** **
>
> On Fri, Apr 13, 2012 at 4:18 PM, Rick Hasen <rhasen at law.uci.edu> wrote:***
> *
>
> This is very helpful and useful.  Does NCSL have "members" who are
> legislators the way ALEC does?  Is it permissible for a c3 to have
> legislator members who help further the c3's goals?
>
> On 4/13/12 3:54 PM, David Mason wrote: ****
>
> Drafting model legislation, which is count #1 in the linked post, is a
> permissible tax exempt activity.  Drafting is not lobbying.  The post also
> claims ALEC "are lobbying in state capitals across the country," whiich
> likely confuses ALEC (which does not have staff in most (if any) state
> capitols) with ALEC Members who are themselves legislators.****
>
>  ****
>
> As far as corporations buying access, consider this statement from the
> NCSL web site (
> http://www.ncsl.org/about-us/ncslservice/ncsl-foundation-sponsor-documents.aspx
> ):****
>
>  ****
> *NCSL Foundation for State Legislatures: Sponsors' Documents*
>
> One of the benefits to sponsoring the NCSL Foundation for State
> Legislatures is the ability to post position papers on the NCSL website.
> These papers are restricted and searchable to all members that have a user
> name and password. We encourage all of our sponsors to take advantage of
> the ability to make your organization's views known to our constituents.**
> **
>
> Let me be clear, I have no beef with NCSL or the NCSL Foundation, but when
> ALEC is attacked for issuing model legislation (which NCSL also does), or
> for providing favored access for corporate funders (See immediately above),
> but the same folks are not in a lather to "expose" NCSL, you can see why
> the attacks on ALEC appear simply ideological, rather than motivated by a
> genuine concern about tax policy.****
>
>  ****
>
> Dave Mason****
>
>  ****
>
>  ****
>
> *Common Cause Says ALEC is Violating Its 501c3 Status<http://electionlawblog.org/?p=32948>
> *
>
> Posted on April 13, 2012 8:41 am <http://electionlawblog.org/?p=32948> by Rick
> Hasen <http://electionlawblog.org/?author=3> ****
>
> I’m no tax lawyer, but on its face this looks like
> <http://www.commoncause.org/siteapps/advocacy/ActionItem.aspx?c=dkLNK1MQIwG&b=7550265>a
> reasonable point. A c3 cannot engage in substantial lobbying and
> legislation is necessary to achieve its ends.****
>
> What am I missing?  (And I concede I may be missing something—I’m way
> outside my comfort zone here.)****
>
>  ****
>
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> ****
>
> Posted in campaign finance <http://electionlawblog.org/?cat=10>, tax law
> and election law <http://electionlawblog.org/?cat=22> | Comments Off ****
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> --
> Rick Hasen
> Chancellor's Professor of Law and Political Science
> UC Irvine School of Law
> 401 E. Peltason Dr., Suite 1000
> Irvine, CA 92697-8000
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> 949.824.0495 - fax
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> ** **
>
> -- ****
>
> Ellen P. Aprill****
>
> John E. Anderson Professor of Tax Law****
>
> Loyola Law School****
>
> 919 Albany Street****
>
> Los Angeles, CA 90015****
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> 213-736-1157****
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