ALEC Scholarships - "In Trust" for Lobbyists?

Let me tell you a little ALEC tale from Kansas.

Ronald R. Hein has been President of Hein Law Firm, Chartered since 1988. Hein Law Firm, Chartered represents numerous clients, and the firm practices exclusively in the area of lobbying and governmental affairs. Ron has been lobbying since 1984.

He served in the Kansas State Senate from 1977-1984,

He serves as Kansas Private Sector Co-Chairman of the American Legislative Exchange Council in Kansas.

From ALEC documents:

1992  Private Sector State Chairs

Mr. Ron Hein

Hein, Ebert, Weir

Kansas

Ms. Julie Hein

Hein, Ebert, Weir

Kansas

1993 Annual Meeting

KANSAS ALEC Private Enterprise State Chairs

Mr. Ron Hein, Hein & Associates

Ms. Julie Hein, Hein & Associates

1995 Source Book

KANSAS ALEC State Private Enterprise Chairs

Mr. Ron Hein, Hein & Associates

Ms. Julie Hein, Hein & Associates

1998 Annual Meeting

Kansas ALEC Private Sector State Chairs

Ron and Julie Hein, Hein and Weir Chartered

Michael Morgan, Koch Industries'*

2010 Annual Meeting

Recognized as Private Sector Members of the Year were

Pat Cannon of Allergan, Inc., Julie and Ron Hein of Hein Law Firm, Pete Hernandez of AT&T, Bruce MacRae of UPS, David Powers of Reynolds American, and Mickey Revenaugh of Connections Academy.

2011 Annual Meeting

Kansas ALEC Private Sector State Chairs

Ms. Julie Hein, Hein Law Firm

Mr. Ron Hein, Esq., Hein Law Firm

Michael Morgan, Koch Industries Public Sector LLC

So you would kinda figure that this guy and his "associate" would have enough money to cover his ALEC expenses – right?

So you would kinda figure that this ALEC Private Sector State Chair would have enough money to cover his ALEC expenses – right?

Well not really

From the newly released CMD report

The scheme works like this: ALEC state chairs (hand-picked legislators and private-sector members) solicit corporate money that goes into a “Scholarship Fund” that is then used to pay for lawmakers’ trips. Records show that ALEC legislators know who’s paying their way—some state leaders even urge lawmakers to send thank-you notes to their patrons— but everyone else is kept in the dark.

ALEC claims to the IRS that it does not have to report the money spent on elected officials because it is just holding the funds “in trust” for lawmakers. But at the same time, it promises corporate donors that they can get a tax write-off for their donations.

ALEC  ...  "does note have to report money spent on elected officals"
“it is just holding the funds “in trust” for lawmakers “

Well – not really

Not only for “lawmaker” trips

Unless you consider a LOBBYIST – a "lawmaker" or an "elected official".

According to exhibits for the new report released by CMD it appears that Hein dips into the ALEC Scholarship fund to reimburse himself for ALEC meetings

ALEC meetings – client hunting trips -  where he finds and talks with potential clients – the ALEC profit sector members.

2008 Reimbursements from the scholarship fund
Hein Law Firm

$2,200.75

$1,166.40

2007 Reimbursements from the scholarship fund
Hein & Hein & Weir Chartered

$1,863.61

2006 Reimbursements from the scholarship fund
Hein Law Firm, Chartered

$2,417.27

"But at the same time, it promises corporate donors that they can get a tax write-off for their donations."

AND then there are the “tax deductible” donations to the scholarship funds.

2008 Donation to the scholarship fund

Hein Law Firm

$500.00

2007 Donation to the scholarship fund

Hein Law Firm, Chartered

$500.00

2006 Donation to the scholarship fund

Hein Law Firm, Chartered

$500.00

   

Paying for a lobbyist to attend ALEC meetings - out of the scholarship fund.

Interesting.

“With our success rate at more than 20 percent,

I would say that ALEC is a good investment.

Nowhere else can you get a return that high.”

Sam Brunelli, then-Executive Director of ALEC