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Archive for the ‘Lobbyist’ Category

Editor’s Note: LouisianaVoice occasionally runs guest columns that address Louisiana politics. Today’s column was written by Les Landon, director of public relations for the Louisiana Federation of Teachers.

Former U.S. Congressman and Louisiana Governor Buddy Roemer recently dropped his long-shot presidential aspiration to tackle an even more daunting goal: reforming our corrupt campaign finance practices.

Gov. Roemer even appeared before Congress last month to testify about the malign effects of unfettered campaign contributions on our political system. At a hearing entitled “Taking Back Our Democracy: Responding to Citizens United and the Rise of Super PACs,” Roemer complained that “Our institutional corruption places our elections in the hands of the mega contributors.”

Taking his argument just a bit further, the former governor said “The system is not broke … It’s bought.”

The theme of Roemer’s testimony, according to this article by Advocate Washington Bureau Chief Jordan Blum, was “the need to enact campaign finance reform and rein in runaway corporate spending in elections.”

It is a message apparently lost on his politically ambitious son, Chas, and other members of the state board of education who have thrown in with Gov. Bobby Jindal’s radical education agenda.

According to campaign finance reports, Chas Roemer was the beneficiary of $597,142.15 during last fall’s campaign for the Board of Elementary and Secondary Education.

The bulk of Chas’ contributions, more than $248,000, came from the Republican Party of Louisiana.

The Louisiana Association of Business and Industry, through its network of PACS, put $87,500 into the Roemer campaign.

The ABC Pelican PAC, the political arm of the Associated Builders and Contractors, contributed $20,000 to Chas’ campaign.

Gov. Jindal himself donated $15,000 to Roemer’s campaign.

The Standard Companies of New Orleans, a beverage company subsidiary of DS Waters of America, put up $14,000.

Publishing magnate Rolf McCollister gave Roemer $6,000, on top of invaluable column inches in his newspaper.

From its offices in Virginia, the pro-voucher Louisiana Federation of Children’s PAC sent another $6,000.

Roemer’s closest competitor, former Ascension Parish Superintendent of Schools Superintendent Donald Songy, raised a total of $56,660 for the race (full disclosure: the Louisiana Federation of Teachers contributed less than $6,000 to Songy’s campaign).

Given that disparity in resources – nearly $600,000 versus less than $57,000 – Roemer was able to mount a very effective, and very negative, multi-media campaign that overwhelmed Songy.

Roemer was not the only candidate blessed by Jindal and his big business friends. Candidates allied with the governor amassed contributions of more than $2.8 million. Even New York Mayor Michael Bloomberg got into the act, donating $55,000 to Jindal’s candidates. The closest competitors to the Jindal ticket raised a combined total of less than $348,000.

The money fueled a tsunami of advertising that had never been seen in BESE races, guaranteeing a victory for Gov. Jindal’s forces.

The immediate result of the election was the anointing of John White as superintendent, followed by a BESE kowtow to whatever privatization scheme the governor proposes. Which, as blogger Mike Deshotels writes here, means that hundreds of millions of dollars will soon be siphoned away from public schools into the pockets of “course choice providers” linked to big business.

Buddy Roemer is right. Big money donors and their unlimited contributions are the major corrupting factors in American politics.

When will he tell Chas?

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You’ve seen them mostly in the seedier parts of town, those quickie payday loan storefront operations that specialize in small, short-term, high-interest loans against a customer’s next paycheck. Their clientele consists mainly of the working poor who, for whatever reason, can’t quite make that last paycheck stretch to the next one.

Louisiana has 18.7 percent of its families living below the poverty line, third-highest in the country. The state also ranked third in the nation in the percentage of households earning less than $35,000 (33.3 percent).

Not surprisingly, Louisiana has the fifth-highest payday loan usage rate in the nation at 10 percent.

Louisiana allows lenders to charge annual rates of up to 567 percent for a two-week, $100 payday loan. Most borrowers do not understand the true cost of the loans and use them for recurring expenses rather than one-time uses.

Incredibly, of the nine states with the most payday lending in the U.S. Louisiana, with 2,059, had the highest number of payday lending storefronts.

Texas, ranked ninth in payday loan usage at 8 percent, has 1800 payday lending storefronts and Missouri has 1,275. The next highest number of payday loan outlets was 781 in Kentucky.

The rankings of the nine states with the highest percentage of payday storefront activity, in order, are Oklahoma, Missouri, Washington, Ohio, Louisiana, Indiana, Kansas, Kentucky and Texas.

About 120 million payday loans, with an average interest rate of 455 percent, are made in the U.S. to low-income customers each year. The Center for Responsible Lending found that 76 percent of the $3.5 billion payday loan volume comes from “churning,” which is repeat borrowing by customers who paid off their loans but because of high interest rates, are forced to borrow again before their next paycheck.

Many of the payday lenders, who are financed by the nation’s larger banking institutions, have upped the ante in lobbying and campaign donations in response to the creation of the Consumer Financial Protection Bureau (CFPB) which is attempting to pass more rigorous regulations the industry.

So it should come as no surprise that recipients of the biggest campaign donations from the payday loan industry are Reps. Jeb Hensarling (R-Texas), vice chair of the House Financial Services Committee and Spencer Bachus (R-Alabama), chairman of the House Financial Service Committee, and Sen. Richard Shelby (R-Alabama), ranking member of the Senate Banking Committee.

In April, all that lobbying and financial investment in the legislative process paid huge dividends when the House Financial Services Committee voted to gut the CFPB budget.

But those are not the only beneficiaries of the payday loan industry’s largesse.

Louisiana got in on the action in a big way.

Cash America of Fort Worth (with five convenient locations in Baton Rouge) contributed $38,500 to 17 legislators and former legislators, a mayor, the Louisiana Republican Party and Gov. Piyush Jindal. And that’s just in Louisiana. Nationwide, Cash America has spent $707,000 on political campaign contributions in the first seven months of this year alone.

The breakdown of Louisiana contributions by Cash America is as follows:

• Gov. Piyush Jindal: $7500;

• Senate President John Alario (R-Westwego): $1500;

• Sen. Conrad Appel (R-Metairie): $500;

• Rep. Jeff Arnold (D-New Orleans): $1000;

• Sen. Norbert Chabert (R-Houma): $500;

• Former Sen. Joel Chaisson (D-Destrehan), now St. Charles Parish District Attorney: $500;

• Sen. A.G. Crowe (R-Slidell): $1500;

• Former Sen. Ann Duplessis (D-New Orleans): $1500;

• Former Sen. Nick Gautreaux (D-Meaux): $1000;

• Sen. David Heitmeier (D-New Orleans): $500;

• House Speaker Chuck Kleckley (R-Lake Charles): $1000;

• Rep. Joseph Lopinto (R-Metairie): $500;

• Former Sen. Rob Marionneaux (D-Livonia): $500;

• Sen. Daniel Martiny (R-Metairie): $1500;

• Former Sen. Mike Michot (R-Lafayette): $3000;

• Sen. John Smith (R-Leesville): $500;

• Sen. Francis Thompson (D-Delhi): $500;

• Former House Speaker Jim Tucker (R-River Ridge): $500;

• Mayor Cedric Glover (D-Shreveport): $5000;

• The Louisiana Republican Party: $5,000;

Payday One of California also contributed an additional $5000 to Jindal and Paycheck Loans contributed $3000 to Rep. James Armes (D-Leesville).

A few members of the Louisiana congressional delegation also got a share of the booty:

• Republican Sen. David Vitter: two separate donations of $2000 each in 2010 and 2012;

• Former Republican Cong. Richard Baker who served as chairman of the House Financial Services Capital Markets Subcommittee: $4000 in 2006 and another $1000 in 2008;

• Former Democratic Cong. Charles Melancon: $500 in 2004;

• Former State Sen. Willie Mount (D-Lake Charles), who lost her bid for Congress: $500 in 2004;

• Democratic Sen. Mary Landrieu: $1000 in 2002.

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LouisianaVoice will soon have a sister publication in the form of an online state newspaper, according to publisher Tom Aswell.

The new feature, which will be published online in newspaper format, will be a weekly publication geared exclusively to Louisiana political news.

“This will be a free-subscription publication because we want everyone in Louisiana—and elsewhere—to have access to what elected and appointed officials are doing that affect the daily lives of Louisiana’s citizens,” Aswell said.

The name of the new publication will be Louisiana Free Press and will be accessible via the link http://www.louisianafreepress.com, Aswell said.

Louisiana Free Press will be supported 100 percent by advertising revenue and our coverage will be broadened from publishing a single story at a time. There will be multiple stories posted each Friday and the coverage will vary greatly.

Several writers will be contributing coverage of many more agencies than have historically been covered by LouisianaVoice.

These writers will be covering the Louisiana Supreme Court proceedings, Louisiana Attorney General opinions, audit reports of all state and local agencies as they are provided by the Legislative Auditor’s office. Moreover, coverage of agencies will be increased—agencies like the Department of Health and Hospitals, Department of Environmental Quality, Department of Natural Resources, Department of Wildlife and Fisheries, and the Department of Education, the Board of Elementary and Secondary Education, Board of Regents, University of Louisiana System Board of Supervisors and the Public Service Commission, the governor’s office, the lieutenant governor, state treasurer and the legislature, as well as other more obscure state boards and commissions.

“We feel it is important that Louisiana’s citizenry remain informed about what their public officials are doing in Baton Rouge, New Orleans and elsewhere,” Aswell said.

“This is an ambitious endeavor but for too long, too many agencies, board and commissions have operated under the radar of the media,” Aswell said. “We anticipate that is about to change.

“That is not to say that everything we write will be of an investigative nature or that each story will be some major exposé. Most will be of a routine nature but will provide news otherwise not available to the public.”

LouisianaVoice will issue further updates as the schedule for launching Louisiana Free Press develops.

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It’s been awhile since we’ve written about the American Legislative Exchange Council (ALEC), but State Rep. Joseph Harrison (R-Gray) has proven himself a more than capable successor to former Rep. Noble Ellington (R-Winnsboro).

ALEC is a national organization comprised of hundreds of state legislators from around the country as well as corporations which fund the bulk of the organization’s expenses. Heading the list of those corporations is Koch Industries.

ALEC’s corporate members write “model legislation” for lawmakers to take back to their states for passage into law. Foremost among those are education reform, prison privatization, Medicaid reform, state employee pension reform and reductions of public services.

Ellington is the former state representative who served as national president of ALEC in 2011 and hosted ALEC’s national meeting in New Orleans last August. Ellington, after 24 years in the legislature, did not seek re-election last fall and upon leaving office in January, was hired as Chief Deputy Commissioner for the Louisiana Department of Insurance at $150,000 per year.

Now, not to be outdone, Harrison, the state ALEC chairman, has sent out a form letter on state letterhead soliciting contributions of $1,000 each to finance the travel of Louisiana legislative ALEC members to an ALEC conference in Salt Lake City July 25-28. The identities of the recipients of his requests for money were unknown.

The letter opens by saying, “As State Chair and National Board Member of the American Legislative Exchange Council (ALEC), I would like to solicit your financial support to our ALEC Louisiana Scholarship Fund.”

But this letter wasn’t for college scholarships.

“Why does the scholarship fund need your support?” Harrison asked, perhaps rhetorically, in his letter of Monray, July 2. “With over thirty Louisiana Legislators serving on ALEC Task Forces, your support will allow the opportunity (for legislators) to attend conferences funded by the ALEC Scholarship Fund.

“These conferences are packed with educational speakers and presenters, and gives (sic) the legislators a chance to interact with legislators from other states, including forums on Medicaid reform, sub-prime lending, only privacy, environmental education, pharmaceutical litigation, the crisis in state spending, global warming, and financial services and information exchange. All of these issues are import (sic) to the entire lobbying community (note the reference to “lobbying community”).

“I, along with other members of the Louisiana Legislature, greatly appreciate your contribution to the scholarship fund. Your $1,000 check made payable to the ALEC Louisiana Scholarship Fund and can be sent directly to me at 5058 West Main Street, Houma, Louisiana 70360. ALEC is a 501(c)(3) nonprofit educational organization as designated by the IRS.”

It is no surprise that ALEC would be concerned about pharmaceutical litigation, environmental education, Medicaid reform and sub-prime lending since many of its corporate members comprise pharmaceutical companies, oil and chemical companies, medical providers and mortgage lenders.

Even though ALEC picks up the tab for legislators to attend conferences all over the nation, at least 16 Louisiana legislators filed expense reports with the House and Senate for reimbursement of more than $20,750 in expenses related to their attendance at last August’s annual meeting in New Orleans. Additionally, ALEC reimbursed many of those same legislators, plus 19 other members and former House and Senate members an additional $56,200 for other ALEC conferences in such locales as San Antonio, Chicago, San Diego and Washington, D.C.

It is not known if Harrison received any “scholarship” money to attend ALEC conferences, but records obtained from the Louisiana House of Representatives by LouisianaVoice show that he received $9,295.78 in expense reimbursements from the state to attend six conferences in New Orleans, San Diego and Washington, D.C. over a four-year period, from December 2008 to August 2011.

Those included:

• December 2008: Washington, D.C. ($1,896.43);
• September 2009: New Orleans “Out of the Storm Conference ($496);
• December 2009: Washington, D.C. ($1,981.24);
• August 2010: San Diego, California ($970.50);
• November 2010: Washington, D.C. ($2,031.14);
• August 2011: New Orleans ($1,920.97).

LouisianaVoice has submitted two public records requests to Harrison. The first asks for the names of the “over thirty” legislators who are members of ALEC and the second requests, since the contribution solicitation was made on state letterhead, that Harrison provide the identities of every person to whom the solicitation was sent.

It would also be of more than passing interest to know how much in state postage was spent on soliciting funds for a lobbying organization that denies it’s a lobbying organization.

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The Senate Labor and Industrial Relations Committee hearing last Thursday, May 3, gave us some interesting audio while the committee was in recess.

The committee spent more than an hour on SB 560 by Sen. Jack Donahue (R-Mandeville) that would make sweeping changes to the state’s workers’ compensation statutes.

Basically, the bill, a product of the American Legislative Exchange Council (ALEC), would limit which doctors could treat workers who are injured on the job by setting up a medical provider network that injured workers must utilize.

The bill also would limit legal fees for attorneys representing injured workers.

But it was when the committee recessed 53 minutes into hearings that things got really interesting.

That’s because a few pro-business lobbyists were still sitting at or near the witness table and someone left the camera and microphones on.

Be patient. It takes a few minutes for this video to load.

http://senate.la.gov/Labor&Industrial/archives/2012/video.htm

At 53:07, Jim Patterson, lobbyist for the Louisiana Association of Business and Industry (LABI), sitting at the witness table to the viewer’s left, begins discussions with Clark Cosse, seated in the first row behind and to Patterson’s left:

• Cosse: “Kostelka’s (Sen. Bob Kostelka, R-Monroe) a wild card.”

• Patterson: “You never know what’s gonna set him off.”

At 55:09, Alton Ashy, lobbyist for Worley Claims, a score of gaming interests and several medical providers–and a political ally of Gov. Bobby Jindal–approaches Patterson to briefly discuss one witness’s opposition to the bill and cracks a joke before moving on.

Patterson then turns to Dennis Juge, a Metairie attorney who, along with Patterson and Cosse, was re-appointed by Gov. Jindal last November to the Workers’ Compensation Advisory Board, to repeat the joke told him by Ashy.

• Patterson: “He said maybe they should rope off a corner and give each of you knives and tie your wrists together and (inaudible).”

• Juge: “It would be easier….and cleaner.”

It was at this point, at 56:45, that Cosse re-entered the conversation and things got a little more graphic.

• Cosse: “In lobbyist school they have a desk and they put a little butt on it and you…” (He bobs back and forth, making kissing motions.) “It doesn’t matter who they are, when they (presumably legislators) get elected, you gotta get along with ‘em. If you lose ‘em one day, you gotta go back and get ‘em the next day.”

• Patterson: “And they put a little hair on that hiney to make it all the more challenging.”

(Laughter.)

• Cosse: “That’s right, like hair on soap, man.”

• Patterson: “That’s too funny.”

And that, folks, is today’s civics lesson. You must (or should) be 18 years of age to attend a legislative session or committee meeting unless accompanied by an adult.

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