By Beau Hodai
As a merger between Time Warner and Comcast moves forward, the Center for Media and Democracy is republishing an excerpt from an
investigative report on PRWatch.org by DBA Press founder Beau Hodai detailing how Time Warner helped bankroll major
American Legislative Exchange Council
(ALEC) events, and funded the schmoozing and boozing of lawmakers at
ALEC meetings. Both Time Warner and Comcast have been longtime members
and funders of ALEC.
Records obtained in 2011 from the office of Ohio Rep. John Adams, the
ALEC public sector chair for the state, show how he worked closely with
ALEC's Ohio private sector chair, Time Warner Cable lobbyist Ed
Kozelek, to raise funds for the national ALEC meeting held in Cincinnati
in April 2011.
Records obtained from the office of Rep. John Adams show that . . .
Adams and ALEC's Ohio private sector chair, Time Warner Cable, through
the Time Warner Cable Midwest Region Vice President of Government
Relations Ed Kozelek, were . . . deeply immersed in fundraising for the
2011 ALEC State Task Force Summit (SFTS), held in Cincinnati on April 28
through 29.
According to these records, Adams and Kozelek received pledges from
more than 50 corporations and lobby firms, totaling $107,500 to ALEC
operations in Ohio, by the end of February 2011....
[One insurance company] solicitation was delegated to Ohio House
Insurance Committee Chair, Rep. Jay Hottinger (R-District 71) and to
House Insurance Committee Vice Chair, Rep. Bob Hackett (R-District 84).
Former ALEC Ohio public sector chair, Sen. Bill Seitz (R-District 8),
along with Rep. Peter Beck (R-District 67), were tasked with raising
funds from American Financial.
Seitz was also tasked with raising funds from Chiquita, Kroger, and
General Electric. Beck was charged with raising funds additional funds
from AK Steel Corporation.
Fundraising responsibilities were also delegated to other ALEC member
lawmakers. Ohio Senate President Tom Niehaus (R-District 14) was tasked
with soliciting funds from Procter & Gamble and Convergys
Corporation; Rep. Peter Strautberg (R-District 34) was assigned Fifth
Third Bank; Rep. Lou Blessing, Jr. (R-District 29) was assigned an
entity only referred to as "Ashland" and Rock Gaming, LLC; Rep. Lynn
Wachtmann (R-District 75) was tasked with soliciting funds from Wal-Mart
and several hospitals.
A number of lobbyists, aside from Kozelek and Time Warner Cable
Midwest Region Director of Government Relations Megan Lashutka, lent
their services to this fundraising drive. Most notably, the ALEC
fundraising crew was joined by high-powered Ohio lobbyist, Charles
"Chip" Gerhardt, III. Gerhardt is the founder and president of
Government Strategies Group, LLC (GSG). GSG itself, though Gerhardt,
contributed $1,000 to ALEC Ohio in February 2011.
While Gerhardt lobbied on behalf of a large number of clients in
2011, it is worth noting that he represented prospective ALEC Ohio
donors Rock Gaming and Great American Insurance/American Financial
Group. Gerhardt is also a longtime lobbyist for Duke Energy Business
Services (Duke) and was employed by Duke during this time.
According to records obtained from the office of Rep. Adams, Duke and
Time Warner Cable were the two largest single contributors to ALEC
operations in Ohio through the at least the first half of 2011-- both
corporations delivering at least $20,000 each in tax-deductible
corporate cash to the Ohio ALEC "scholarship fund" by June of that year.
. . .
Intermission: The Indispensable Compensated Volunteer
During the August 2011, ALEC Annual Meeting in New Orleans, [Adams'
Senior Legislative Aide Kara] Joseph--who [was] reimbursed for her
travel to such meetings from ALEC--received the ALEC "Volunteer of the
Year Award."
Records obtained from the office of Rep. Adams leave little room to doubt that Joseph earned this award.
Not only had Joseph been instrumental in raising funds, recruiting
volunteers and acting as an all-around go-to for all things ALEC in the
run up to the 2011 Cincinnati STFS, but Joseph also carefully
coordinated with ALEC donor lobbyists in the creation of detailed
itineraries for ALEC member lawmakers attending the 2011 New Orleans and
Scottsdale events.
An example of one such itinerary reads as follows:
Schedule for Rep. Terry Boose: . . .Tuesday,
August 2nd: 6:30 p.m.-- Time Warner, Mr. B's Bistro, 201 Royal Street. .
. Wednesday, August 3rd: 6:30 p.m.-- Cable & Others, Commander's
Place, 1403 Washington Avenue. (Sport coat required for men). . . .
Thursday, August 4th: 2:30 - 5:30 p.m.-- Task Force Meeting: Tax and
Fiscal Policy. . . . 6:30 p.m.-- OH Petroleum & BP, Antoine's
Restaurant, 713 St. Louis Street. . . . 9 p.m. - 12 a.m.-- Cigar
Reception, Pat O'Brien's, 718 St. Peter's Street. . . . Friday, August
5th: 6 - 8 p.m.-- Ohio Night, World War II Museum, 945 Magazine Street. .
. . 9:30 p.m. - 12:30 a.m.-- Cigar Caucus Reception, 633-B Decatur on
the Historic Upper Pontalba Apartments.
According to records obtained from the office of Rep. Adams, Joseph
had some help in putting these itineraries together. Determinations on
where lawmakers would dine and with whom were made at the request of
ALEC Ohio donors. Essentially, a lobbyist would deliver a check to the
office of Rep. Adams or to Kozelek, ranging in size from $500 to $5,000
(these amounts based on records relating to the New Orleans event) for
the Ohio "scholarship fund," or for the delegation's "Ohio Night." Then
the lobbyist would approach Joseph with his or her dinner guest request.
For example, on October 19, in the run up to the Scottsdale ALEC
States and Nation Policy Summit (SNPS), lobbyist Gary Koch wrote an
email to Joseph requesting the names of Ohio lawmakers who would be
attending the event. Joseph dutifully provided Koch with the list. Koch
responded that he wanted help putting a dinner event together for the
benefit of five specific lawmakers. At the time of this request, Koch
represented such corporate interests as Eli Lilly, AT&T, and the
Wholesale Beer and Wine Association of Ohio.
Although records obtained from the office of Rep. Adams do not
contain a complete accounting of private sector contributions to ALEC
Ohio funds as they relate to the Scottsdale SNPS, available records do
indicate that Koch had given $5,000 on July 5, 2011, for use during the
ALEC "Ohio Night" event in New Orleans. These records list Koch as being
a "platinum"-level sponsor and indicate that the contribution had been
made on behalf of Eli Lilly.
Similarly, emails show that Time Warner Cable lobbyist Megan Lashutka
coordinated the planning of these dinners with Joseph--with Time Warner
Cable reserving "first dibs" on lawmakers attending the summit. As
previously discussed, Time Warner Cable had contributed at least $20,000
to the Ohio ALEC "scholarship fund" through the first half of 2011
alone--coupled with an additional $1,000 contribution on July 21 for use
during the "Ohio Night" event in New Orleans.
Records indicate that Koch, Lashutka, and other lobbyists were
accommodated in their requests: itineraries drafted by Joseph for
lawmakers attending SNPS show these legislators (along with Joseph and
her husband) being whisked around to bars and dining venues throughout
Scottsdale for private soirees with Time Warner Cable, Koch, lobbyists
with the firm of Sean Dunn & Associates, LLP (representing such ALEC
Ohio donors as AT&T and the Ohio Hospital Association), and others.
Given all this, it is easy to lose sight of the fact that Joseph is a
public employee, paid nearly $47,000 annually by Ohio taxpayers to
serve as a senior legislative aide to Rep. Adams. Yet, Joseph seems
confused at times as to who her actual employers are. Nevertheless,
records obtained from the office of Rep. Adams show that Joseph does not
feel it is she who is confused.
On May 2, 2011, Joseph received an email from AT&T lobbyist Paul
Weirtz. The email contained a link to a post on 'progressive' blog,
"Daily Kos" ("Breaking!! First ever demonstration against an ALEC event
in Cincinnati," posted by "OhioDem1," April 29, 2011). The blog post
discussed protests held during the Cincinnati ALEC event and mentioned
plans for a second protest at the upcoming New Orleans meeting.
"You probably saw this article," wrote Weirtz. "Note that they are
planning protests in New Orleans. Like we will be able to tell the
difference between them and the Bourbon Street revelers."
Joseph immediately forwarded the email on to Kozelek and ALEC Director of State Programs Laura Elliott.
"Thanks for sending this to us! We really appreciated it," wrote Elliott.
Joseph replied:
"No problem. They're so confused."
Part 2: Lessons from a Baseball Game
"Please join us for a great American pastime!"
The Hilton Netherland Plaza Hotel served as the site for the 2011
ALEC State Task Force Summit (STFS) in Cincinnati. The summit featured
the standard ALEC fare for the more than 500 attending member lawmakers:
gourmet dining events, nights out on the town for state delegations, a
reception for ALEC board members, and task force luncheons.
And, as is also common at many ALEC events, a recreational
event--having nothing to do with legislative education--was held for
member lawmakers, their families and the attendant throngs of lobbyists.
The special recreational event for the 2011 Cincinnati STFS took
place on the evening of April 29 in the form of a shindig at the Great
American Ballpark, home to the Cincinnati Reds.
The invitation for the event read:
"Please join ALEC for a night at the
ballpark as the Cincinnati Reds take on the Florida Marlins! . . . ALEC
will have access to the ballpark party decks where select food and
drinks will be provided. Space is limited at this special event--
sponsored by Time Warner Cable-- so be sure to reserve your free ticket
now! . . . Please join us for a great American pastime! . . . Sponsored
by Time Warner Cable ["Time Warner Cable" written here in large,
boldface font with the Time Warner Cable company logo]."
One vital detail to note here (just in case the invitation doesn't make this clear) is that event was sponsored by
Time Warner Cable.
According to records obtained from the office of Rep. Adams, at least
40 tickets to this game were given to at least 22 lawmakers. An
additional 5 tickets were given to 5 legislative aides (including
Joseph), and two tickets were given to a guest of Rep. Adams (Ohio State
Representative-turned lobbyist, Bob Doyle). Grand total: at least 47
Reds v. Marlins tickets to Ohio legislators, their aides, and guests.
While lawmakers from other states attended this game, records
obtained from the office of Rep. Adams indicate that this Ohio
delegation likely comprised close to half of the total ALEC public
sector presence at this event.
The trouble with all of this--should a constituent like to know who
has been wining and dining their lawmakers on the "party decks" of the
Great American Ballpark, or should a constituent like to know who has
been paying for their lawmakers to travel and stay in plush resorts--is
that there is no record of any of this available to the public--save for
records potentially uncovered through a lengthy public records request
process.
An examination of statements of financial disclosure filed by the
more than 60 Ohio ALEC member lawmakers for 2011 yields no trace of any
of these gifts--no indication that in 2011, 30 Ohio legislators and
legislative aides received a combined total of $33,791.64 in
"scholarship fund" disbursements for expenses related to the Cincinnati
STFS and the New Orleans the Annual Meeting; no indication that the 21
members of the Ohio legislative delegation to the New Orleans ALEC
Annual Meeting were the beneficiaries of $64,000 raised from 36 donor
lobbyists (representing such notable corporations as British Petroleum,
Cash America, Pfizer, AT&T, Time Warner Cable, and Novartis
Pharmaceuticals Corporation) to be spent on the legislators' night out
in the Big Easy. . . .
Similarly, lobby reports filed by Time Warner Cable--which had, by
the time of the Cincinnati event, contributed at least $20,000 to the
ALEC Ohio "scholarship fund" for 2011--purport that the corporation had
only expended $77.16 while lobbying Ohio lawmakers during the first
quarter of the year.
Inoculated from public disclosure with the public's cash
How is this possible? How could tens, if not hundreds of thousands of
dollars in gifts and lobbying expenditures for the benefit of Ohio
lawmakers have completely disappeared from public sight?
The answer is a pretty straightforward one: Ohio law contains
numerous disclosure exemptions for items of worth (be they cash, meals,
or plane tickets) received by lawmakers in conjunction with events held
by certain legislative membership organizations.
According to Ohio law, a
lawmaker (or, transversely, a lobbyist) does not need to disclose
expenses relating to travel, lodging, or meals received/incurred (or
given/expended, in the case of lobbyists) at "a meeting or convention of
a national or state organization to which any state agency, including,
but not limited to, any legislative agency or state institution of
higher education . . . , pays membership dues."
As previously discussed, the Ohio General Assembly pays $1,000
annually in membership dues to ALEC (even though not all members of the
General Assembly are ALEC members). Without this one very small drop of
Ohio state public funding in the more than $7 million bucket that is
ALEC, Ohio lawmakers would not be able to accept these gifts free and
clear of public disclosure.
These ALEC General Assembly membership dues are paid each year
through the Ohio Legislative Service Commission (LSC). Interestingly
enough, in January of 2012, at the time when LSC re-upped Ohio ALEC
membership dues for calendar year 2012, and paid dues owed for calendar
year 2011, the chairman of the commission was Speaker Batchelder.
Batchelder, according to documents obtained from the office of Rep.
Adams, had received $884 in "scholarship fund" disbursements for his
attendance at the 2011 New Orleans meeting. And, of the 14 LSC
members--including LSC vice chair Sen. Tom Niehaus--at least 10 are
known ALEC members.
Read the rest of this story
here.
For more on how Time Warner and Comcast have pushed their agenda through ALEC, read "How ALEC Helps Big Telecom Change State Laws for Corporate Gain."
Also, notably, in 2013, another staffer of Rep. Adams was given ALEC's
"volunteer" of the year award; you can watch Lauren Windsor's interview
of Rep. Adams about the ALEC awards he and his staffer received, and
more here.
Reprinted with permission from PRWatch.