“Reverse Revolving Door”: Lobbyists Snag Top Staff Positions On Capitol Hill
In January shortly after being sworn into office, Congressman Rodney Davis, a freshman Republican who eked out a win with a margin of less than a thousand votes in Illinois last year, announced that he had received several plum committee assignments. His legislative portfolio includes subcommittees that oversee commodity regulations, nutritional programs, biotechnology, and, most importantly, the 2013 Farm Bill, which sets agriculture policy for the next five years.
One of his first steps in office? Davis hired Jen Daulby, the director of federal affairs for Land O’Lakes, one of the largest producers of milk and cheese in the country, to be his chief of staff. Disclosures show that just months ago, Daulby led a Land O’Lakes lobbying team that worked on the Farm Bill, genetically modified foods labeling, rules concerning pesticides and hazardous dust, and the new commodity regulations enacted by President Obama’s financial reform law, Dodd-Frank.
What a match.
In other words, Daulby’s past lobbying portfolio perfectly reflects the new responsibilities for Davis’ committee assignments, where he will have wide sway over policy. A former Monsanto lobbyist with previous experience on Capitol Hill for several other lawmakers, Daulby is one of many staffers who rotate back and forth between public service and influence peddling.
On Monday, The Nation posted an investigation of the “reverse revolving door” in Congress, by which lobbyists hired as senior-level congressional staffers receive substantial exit bonuses or other financial rewards from their employers shortly before they assume their new Congressional positions.
In Daulby’s case, Land O’Lakes provided a parting gift of a $35,772 bonus (in addition to her 2012 bonus) in the first few weeks of January. The Davis-Daulby story isn’t all that unusual.
The members of Congress who hire former lobbyists are often outspoken supporters of legislation also heartily endorsed by their new staffers’ previous employers.
Representative Michael McCaul (R-TX), chair of the Homeland Security Committee, hired IBM lobbyist Alex Manning as his cybersecurity subcommittee staff director this year. On behalf of IBM last year, Manning worked to pass the Cybersecurity and Information Sharing Effectiveness Act (CISPA), legislation that provides broad powers to the government and to private corporations to gather private Internet user data. The ACLU—which has rallied against CISPA along with EFF, and many other civil liberties groups—called the bill a “flagrant violation of every American’s right to privacy.”
IBM, which sent nearly 200 executives to Washington to advocate on behalf of stronger cyber security laws like CISPA, has been one of the bill’s strongest supporters. CISPA passed the House in April. Representative Randy Hultgren (R-IL) recently hired Katherine McGuire, a CISPA-supporting lobbyist for the Business Software Alliance, as his chief of staff. Hultgren voted for the bill that passed last month.
Representative Fred Upton (R-MI), who is in his second term as chair of the Energy and Commerce Committee, has a long history of employing lobbyists to staff his committee. When he gained the gavel after the midterm elections, Upton hired Gary Andres, a lobbyist for UnitedHealth Group and other corporate interests, as his staff director. In 2012, Upton announced that America’s Natural Gas Alliance lobbyist Tom Hassenboehler would be his new chief counsel to a subcommittee that oversees environmental regulations. As DeSmogBlog’s Steve Horn noted, Hassenboehler is a climate change denier who worked in previous years to block cap and trade legislation. Disclosures show Hassenboehler was paid by his former employer, a trade group for fracking and natural gas companies, to lobby on a number of environmental regulations, including EPA rules concerning fracking.
This phenomenon isn’t new. In the beginning of the last Congress, at least thirteen freshman lawmakers hired lobbyists as their chiefs of staff. The chiefs of staff for Senators Ron Johnson and Marco Rubio even came from the same lobbying firm.
How, exactly, are these lobbyists-turned-staffers influencing policy? While it is difficult to discern what goes on behind closed doors on Capitol Hill, it is part of the job description of lobbyists-turned-staffers to help lawmakers draft legislation, and the bills they produce reliably include big giveaways to corporate interests. Representative Davis’ office did not respond to a request for comment about his new chief, former Land O’Lakes lobbyist Jen Daulby. But in March, Davis signed onto a bill currently pushed by Land O’Lakes to roll back federal oversight of pesticide use.
By: Lee Fang, The Nation, May 9, 2013
“Surrendering To Moneyed Interests”: Who Snuck In The Monsanto Protection Act?
Anger at the so-called Monsanto Protection Act — a biotech rider that protects genetically modified seeds from litigation in the face of health risks — has been directed at numerous parties in Congress and the White House for allowing the provision to be voted and signed into law. But the party responsible for anonymously introducing the rider into the broad, unrelated spending bill had not been identified until now.
As Mother Jones’ Tom Philpott notes, the senator responsible is Missouri Republican Roy Blunt — famed friend of Big Agrigulture on Capitol Hill. Blunt even told Politico’s David Rogers that he “worked with” Monsanto to craft the rider (rendering the moniker “Monsanto Protection Act” all the more appropriate). Philpott notes:
The admission shines a light on Blunt’s ties to Monsanto, whose office is located in the senator’s home state. According to OpenSecrets, Monsanto first started contributing to Blunt back in 2008, when it handed him $10,000. At that point, Blunt was serving in the House of Representatives. In 2010, when Blunt successfully ran for the Senate, Monsanto upped its contribution to $44,250. And in 2012, the GMO seed/pesticide giant enriched Blunt’s campaign war chest by $64,250.
… The senator’s blunt, so to speak, admission that he stuck a rider into an unrelated bill at the behest of a major campaign donor is consistent with the tenor of his political career. While serving as House whip under the famously lobbyist-friendly former House Majority leader Tom DeLay (R-Texas) during the Bush II administration, Blunt built a formidable political machine by transforming lobbying cash into industry-accomodating legislation. In a blistering 2006 report, Public Citizen declared Blunt “a legislative leader who not only has surrendered his office to the imperative of moneyed interests, but who has also done so with disturbing zeal and efficiency.”
By: Natasha Lennard, Salon, April 5, 2013
“Lobbyists Evading The Law”: Minnesota Elections Board To Investigate ALEC
Minnesota’s Campaign Finance and Public Disclosure Board will investigate whether the American Legislative Exchange Council (ALEC) should be registered as a lobbyist in the state, according to a letter sent to Common Cause-Minnesota. The Center for Media and Democracy (CMD) has also asked Wisconsin’s ethics board to investigate ALEC’s activities, and this month the Wisconsin Attorney General referred a joint complaint about ALEC’s lobbying — by CMD and Common Cause-Wisconsin — to the state ethics board.
Response to Common Cause’s Complaint in Minnesota
Common Cause-Minnesota filed two requests for investigation in recent months presenting evidence that ALEC lobbies state lawmakers to pass “model legislation” voted on by corporations and legislators at ALEC meetings. The Board has responded to the first complaint, which alleged that despite participating in lobbying, ALEC has failed to register as a lobbying organization. The Board says it “will investigate.”
“Corporations can no longer hide behind ALEC as they try to influence state law behind closed doors,” said Mike Dean, executive director of Common Cause-Minnesota. “This investigation should expose how ALEC has attempted to avoid laws that regulate lobbyists in Minnesota,” Dean said.
The complaint mirrored a letter to the IRS filed by the national Common Cause office last year. That office also filed formal a whistleblower complaint in April alleging ALEC has committed tax fraud.
ALEC has come under increased scrutiny in recent months for its role in promoting as a national “model” the Stand Your Ground/Shoot First law cited in the Trayvon Martin shooting in Florida, as well as other bills that make it more difficult for American citizens to vote, for workers to organize and bargain, and for regulatory agencies to protect the environment and health.
Common Cause-Minnesota filed a second complaint with Minnesota Attorney General Lori Swanson alleging that, because of ALEC’s substantial lobbying, it is in violation of state laws limiting such activities by charities. To date, Common Cause has filed similar requests for investigation in 37 other states.
On May 17, Common Cause-Wisconsin and the Center for Media and Democracy (CMD) filed a similar letter with Wisconsin’s Attorney General requesting an investigation into whether ALEC’s lobbying activities violate its charitable status, which was referred in part to the state ethics board. The letter was filed as part of a larger report detailing how ALEC facilitates corporate influence in the state, and counting more than 32 bills or budget provisions introduced in the 2011-2012 session reflecting ALEC model legislation. That report, “ALEC Exposed in Wisconsin: The Hijacking of State,” can be viewed here.
GAB Investigation in Wisconsin
Earlier this year, CMD requested that Wisconsin’s Government Accountability Board (GAB) determine that ALEC’s so-called “scholarship program” violates state ethics and lobbying laws.
In a complaint filed March 23, CMD described how the program allows global corporations to pay for ALEC member legislators’ travel to resorts for ALEC meetings, which would appear to violate Wisconsin laws prohibiting elected officials from accepting anything of value — even a cup of coffee — from corporations that employ lobbyists in the state. CMD also noted that while at ALEC meetings, legislators are offered invitations to corporate-sponsored receptions and given additional gifts like free tickets to the party box at a major league baseball game. CMD named all known Wisconsin ALEC members in the request because complete records about which lawmakers accepted these gifts in recent years are not publicly available.
ALEC subsequently disclosed that in 2010, it had asked the GAB to sanction these corporate-funded gifts, but offered a description of the so-called “scholarship” program contradicted by ALEC’s own bylaws, by ALEC’s filings with the IRS, and by other documents. CMD documented these contradictory claims in another letter filed in April.
Senator Van Wanggaard (R-Racine), who is a member of ALEC’s Telecommunications and IT Task Force, sought to distance himself from the program, declaring that he had never received an ALEC “scholarship” and asking that he be dropped from the complaint. CMD applauded Senator Wanggaard’s acknowledgement through his actions that receiving corporate-funded flights and hotel rooms could compromise a legislator’s official judgment.
The Wisconsin GAB has acknowledged receipt of CMD’s complaint but is prohibited by law from commenting on the status of an investigation.
By: Brendan Fischer, Center For Media and Democracy, May 30, 2012
“Masquerading As A Charity”: ALEC Exposed In Wisconsin, The Hijacking Of A State
Today, the Madison-based Center for Media and Democracy (CMD) released a new report that details the exclusive network of corporate lobbyists and special interest groups that influence the Wisconsin legislature through the American Legislative Exchange Council (ALEC).
“This report reveals details of the extraordinary influence of ALEC and its agenda on the Wisconsin legislature and our laws over the past 16 months,” said Lisa Graves, executive director of the Center for Media and Democracy. “This corporate-backed agenda undermines the rights of Wisconsin families while advancing the agenda of huge corporations and special interest groups.”
Six weeks ago, corporate members of ALEC started jumping ship when it became known that Florida’s “Stand Your Ground Law” — linked to the Trayvon Martin shooting — spread to over two dozen states via ALEC. So far, 14 corporate members and 45 legislators from other states have quit the organization.
“We document how global corporations are buying influence with Wisconsin legislators through potentially illegal gifts called ALEC ‘scholarships,'” said CMD Law Fellow Brendan Fischer, the report’s author. “ALEC’s corporate members are not only giving Wisconsin legislators thousands of dollars of campaign contributions, they are also buying flights and hotel rooms. These gifts undermine Wisconsin’s reputation for clean government and the strict ethics rules designed to protect the voices of Wisconsin residents in our state’s democracy.”
CMD asked the Wisconsin Government Accountability Board in March to determine whether ALEC member legislators receiving gifts of flights and hotel rooms from ALEC’s corporate members violates state ethics and lobbying laws. Now, CMD and Common Cause in Wisconsin are asking Wisconsin’s Attorney General to look into ALEC’s lobbying activities.
“It is time for the Attorney General to determine that ALEC is primarily a corporate lobbying group masquerading as a charity,” said Common Cause in Wisconsin Executive Director Jay Heck. “ALEC’s corporate members fund the organization to access and influence state legislators, and it is unacceptable to get a tax deduction for doing so.”
Here are some of the key findings from the new report:
- 32 bills or budget provisions reflecting ALEC model legislation were introduced in Wisconsin’s 2011-2012 legislative session;
- 21 of these bills or budget provisions have passed, and two were vetoed;
- More than $276,000 in campaign contributions were made to ALEC legislators in Wisconsin from ALEC corporations since 2008;
- More than $406,000 in campaign contributions were made to ALEC alumnus Governor Walker from ALEC corporations over the same time period for his state campaign account;
- At least 49 current Wisconsin legislators are known ALEC members, including the leaders of both the House and Senate as well as other legislators holding key posts in the state. Additionally, the Governor, the Secretary of the Department of Administration, and the Chairman of the Public Service Commission are ALEC alumni; and
- At least 17 current legislators have received thousands of dollars of gifts cumulatively from ALEC corporations in the past few years, in the form of flights and hotel rooms filtered through the ALEC “scholarship fund” (complete “scholarship” information is not available).
ALEC describes itself as the largest “independent member association of state legislators” in the country, but over 98 percent of its nearly $7 million in annual revenue comes from corporations and sources other than legislative dues, which are $50 a year. Representatives from America’s largest corporations, including Koch Industries, Wal-Mart, Exxon Mobil, Reynolds, and Altria/Phillip Morris fund ALEC and sit on its private sector governing board.
By: Sara Jerving, PR Watch, Center For Media and Democracy, May 17, 2012
Gingrich Raked In Oil Money After Flip-Flopping On Cap And Trade
2012 GOP presidential contender Newt Gingrich executed a high-profile flip-flop on cap and trade, saying in 2007 that “mandatory carbon caps combined with a trading system” were something he “would strongly support,” before disavowing that position this year. “I never favored cap and trade,” he claimed during a Fox News interview earlier this month.
It turns out that this move was more than politically convenient for Gingrich. As the Washington Post noted today, Gingrich’s climate flip-flop was also quite lucrative, with millions of oil dollars pouring into his now defunct energy non-profit after he announced it:
Within weeks, the money began pouring in from major U.S. energy firms, which eventually contributed more than $2 million to American Solutions’ pro-drilling and anti-cap-and-trade campaign for the next two years, according to a review of disclosure reports and other records by The Washington Post.
The top contributors included Peabody Energy of St. Louis, which gave $825,000, and Devon Energy of Oklahoma City, which contributed $500,000.
Gingrich also has a complicated relationship with oil subsidies, deriding Congress for not cutting them, but also mocking progressives for wanting to cut them.
Gingrich, of course, has been quote cozy with corporate interests in the last few years, making and taking millions from various corporations for work in a variety of areas. And those corporations have seen their investment pay off, as Gingrich has peddled his influence to secure earmarks and push for deregulation. His cap and trade flip-flop is simply part of a larger pattern of Gingrich saying what he needs to say to keep corporate dollars flowing.
By: Pat Garofalo, U. S. News and World Report, December 29, 2011
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