AMERICAN LEGISLATIVE EXCHANGE COUNCIL
JOINT BOARD OF DIRECTORS MEETING
December 4, 1996
Renaissance Hotel, Washington, DC
The meeting was called to order at 10 :30 AM by Chairman Dale Van Vyven . In attendance
were :
Legislative Members
Rep. Dale Van Vyven, Chairman, Ohio

Rep. Bonnie Sue Cooper, First Vice Chairman, Missouri
Speaker Bobby Hogue, Treasurer, Arkansas
Rep . Carolyn Oakley, Secretary, Oregon
Sen . Ray Powers, Immediate Past National Chairman, Colorado
Sen . Brenda Burns, Arizona
Rep. Roger Halvorson, Iowa
Sen . Ray Haynes, California
Rep. Donald Ray Kennard, Louisiana
Rep. Steve McDaniel, Tennessee
Sen. Jim Dunlap, Oklahoma
Sen . Bill Raggio, Nevada
Sen . Emilio Cantu, Washington
Sen . Philip Hoffman, Michigan
Sen. George "Doc" Gunther, Connecticut
Assemblyman Robert Straniere, New York
Sen. Dean Rhodes, Nevada
Rep. Susan Wagle, Kansas
Private Sector
Mr. Al Auger, Chairman, Coors Brewing Co .
Ms . Tina Walls, First Vice Chairman, Philip Morris Management Co .
Mr . Ronald Scheberle, Immediate Past Chairman, GTE

Mr. Mike Morgan, Koch Industries
Ms. Jane Cahill, U .S. Generating
Ms . Monita Fontaine, Distilled Spirits Council of the U .S.
Mr . Jeffrey Lane, Procter & Gamble
Mr. Pete Poynter, BellSouth
Mr . J . Patrick Rooney, Golden Rule Insurance
Mr. Jerry Watson, NABIC

Mr. Frank Messersmith, Skelding, Labasky, Corry, et al

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 Ms . Marie Chelli, Joseph E . Seagram & Sons, Inc .
Mr. Harry Winters, UPS
Mr. Roger Mozingo, R .J . Reynolds Tobacco Co .
Mr. David Halbrook, New Hope Foundation
Mr. Les Goldberg, American Express

Staff_
Mr. Dan Denning, Executive Director
Mr. Duane Parde, Chief of Staff
Mr. George Rasley, Director of Development
Mr. Steve Walker, Comptroller
Ms . Beverlee Lee, Director of Finance
Ms . Lane Dolly, Director of Administration

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AMERICAN LEGISLATIVE EXCHANGE COUNCIL
JOINT BOARD OF DIRECTORS MEETING
December 4, 1996
Renaissance Hotel, Washington D .C .
CALL TO ORDER
Chairman Dale Van Vyven called the meeting to order at 10 :30 AM . By motion of Rep .
Carolyn Oakley, second by Cooper, the minutes of the September 28'" meeting were
approved as submitted . Van Vyven announced an agenda change noting the Report of the
Executive Director would be moved to the morning . VanVyven allowed members to sit at
ease while several members were retrieved from committee meetings .
EXECUTIVE DIRECTOR REPORT
VanVyven recognized Executive Director Dan Denning for his report . Denning reviewed
the Auditor's report and financial condition . The auditor noted improvement in key areas .
In regard to the capital campaign, Denning thanked : a loan with favor from KOCH, a loan
from E&M Charities, and a RJR Grant . Denning noted improvements in the accounting
system over the last year, improved personnel policy and reduced employee turnover .
Denning reported continued ALEC excellence in model bills, publications, and
conferences and continued expansion in the private sector .
1997 Business Plan -Denning
Projects $6 .5 million in revenue and $6 .25 million in expenditures . Policy initiatives will
include the balanced budget amendment, electric power restructuring, tort reform (esp .
common law), Environmental Audit Privilege, Educational Choice, increased workers
compensation education programs, and additional insurance issues . The 1997 annual
conference will be August 12 to 17, 1997, in New Orleans with expected attendance over
2,700 . Denning announced his resignation as Director of ALEC . Denning recognized
Controller Steve Walker to outline 1997 Budget Projections .
1997 Budget Projections-Walker
Walker suggests continued promotion that ALEC's primary product is POLICY . He
outlined what he termed a programmatic budget with zero-based review that emphasized
policy, the main product . Walker says budget goal is to match every expense with a
revenue source . Walker pointed out page five of seven of his budget memo as needing a
motion and decision . Specifically, that additional private sector board assessments would
be made at $2000/member to generate a revenue stream to cover the cost of Board
meetings .

Questions and Answers:

Walker clarified that in his projections he figured the 'indirect costs' based on a
formula for auditors which concentrated on true overhead costs, personnel, rent, etc .
Page four of seven break out public sector costs . Walker clarified that his projections do
direct Task Force Chairs to cover the costs of their own meetings . He says it asks Chairs
to review and stay within revenue and expenditure guide of budget . Budget asks the
private sector to cover entire entertainment costs of events .

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Discussion ensued about the actual cost of previous year's annual conferences and
the possibility that the estimated $900,000 cost for the meeting is much too low . Walker
pointed out that the cover memo notes the annual meeting cost expenditure is estimated at
$1 .2-million, but the policy workshops and policy budgets are offset with sponsorship
funds within their own items . Beverlee Lee noted the projected budget re-allocates
$300,000 for the annual meeting to be covered by the Task Forces for their own meetings,
etc . Sen . Ray Haynes noted that the $1 .1 million projected for the annual conference
throughout the budget is still lower than he historically remembers and notes that a more
realistic budget should be approved . Several members ask for specific breakdowns and
line-items and, to the extent possible, historical revenue-expenditure totals for previous
conferences . It was agreed that these will be provided to the members .
VanVyven referred the projected budget to the Finance Committee for review and
action . Denning recognized George Rasley to outline the 1997 Development Plan .
1997 Development Plan

Rasley outlined five distinct revenue streams as follows :
1 . membership and general support

2 . meeting and conference sponsorships
3. restricted corporate donations (State Factors and Task Force meetings)
4. fundraising events and projects
5. foundation grants
Rasley says the first four are revenue to meet specific expenses and all are based on two
strengths : policy and membership . In regard to question on fundraising, he noted
decisions would be deferred until Leader to Leader and Salute are fully evaluated .
VanVyven referred the plan to Finance Committee .
EXECUTIVE DIRECTOR RESIGNATION
VanVyven thanked Denning for his work and accomplishments, wished him well, and
thanked Denning for his offer of continued assistance . Oakley moved to accept the
resignation of Dan Denning with regret which was seconded by Sen . William Raggio .
Motion carried .
By motion of Rep . Bonnie Sue Cooper and second by Oakley, Duane Parde was named
interim Executive Director . Motion c,arried .
Auger noted that change and opportunity happen all the time in the private sector . Auger
applauded Denning's efforts and thanked him for his offer of assistance .
CHAIRMAN TRANSITION
VanVyven noted the past year had been challenging and great . Thanked all ALEC staff,
every Board member, and his aide, Lora Miller . He thanked all the Board for their help in
fundraising .

Rep . Bonnie Sue Cooper accepted the gavel of the ALEC chair . Cooper thanked
VanVyven and the Board. Cooper pledged the Chairmanship was a high honor that

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would have her full attention . Cooper introduced the Board Secretary Julia Nienaber,
Missouri House Republican Chief of Staff. Cooper thanked the Missouri caucus for the
loan . Cooper introduced her "kitchen cabinet ." Cooper said she wants this coming year
to be ALEC's most dynamic with emphasis on growing the private-public partnerships .
She hopes for a 5-person core in each state to promote ALEC . She supports and will
promote ALEC's task force policy developments. Cooper thanked Pete Poynter and
Donald Ray Kennard for their work on the '97 Annual Meeting, and Brad for the fabulous
job on the N .O .C . Cooper said she will concentrate on the financial condition of ALEC
and its fiscal responsibility .
PRESENTATIONS
Cooper presented a statue to Past Chair Ray Powers . Cooper presented a picture to
VanVyven, Immediate Past Chair . Auger presented a brief case to Cooper .
NEW MEMBER
Auger reported Kurt Malmgren of PHARMA as a new member .
APPEAL OF ELECTRIC INDUSTRY RESTRUCTURING MODEL LEGISLATION
Tim Beauchemin noted that the Task Force adoption of an electric deregulation
model bill is on appeal to the Board . John Hughes of the Electric Research Council
spoke for the model bill noting that 1'/2 years of work went into the bill with 33 legislators
and 59 private sector members participating . He reviewed all procedures used at all
pertinent meetings in accepting feedback and taking action on the language sections which
comprise the model bill . John Rowe of Tampa Electric in Florida spoke against the model
bill saying that guiding principles had been adopted unanimously but that concensus had
not been reached on the model bill and that full input was limited .
In questions and answers, Hughes said US Rep Dan Schaefer will likely push a
federal deregulation bill again this year . Some debate ensued about the policies in the bill
and language of the bill and its possible consequences . Powers moved for adoption of the
bill as presented, seconded by VanVyven . Sen. Hoffman urged the Board to reject the
motion and instead adopt the principles saying ALEC legislation should reflect consensus .
Cooper clarified that both the principles and the bill are on appeal . It was noted that the
bill contains the principles as lettered items . Jane Cahill asked for clarification of the
Review Appeals process . Cooper noted the By-Laws say an appeal can find that an item
on appeal 1) violates ALEC principles or 2) procedure to adopt the item did not follow
procedure . Discussion continued on various bill provisions .
Cooper called for the legislative vote with 12 in favor of pending motion, 4
opposed . Sen. Hoffman motioned to approve the principles, second by VanVyven .
Motion carried 17 to 0 .
NEW BOARD MEMBERS
Cooper introduced the new Board members : Sen . Jim Dunlap of Oklahoma, Rep . Susan
Wagle of Kansas, and Rep . Donald Ray Kennard of Louisiana . Members were asked to
review head table assignments for the NOC and to commence committee meetings over
the lunch break. Cooper adjourned the meeting for lunch .

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AFTERNOON SESSION
CALL TO ORDER
First Vice-Chair Bobby Hogue reconvened the Board meeting.
APPEAL OF MODEL WELFARE BILLS
Tim Beauchemin noted the Task Force adopted a set of state model welfare reform
bills and the adoption followed procedure . However, policy is supposed to be distributed
for 30 days before it is official ALEC policy . Need to waive the time requirement in order
that the model bills may distributed at the NOC welfare meeting . Hoffman motioned to
approve the set of bills, seconded by Wagle and carried .
Sen. Brenda Bums announced it is the lOs' Anniversary of the NOC . Hogue
instructed members to stand at ease .
EXECUTIVE BOARD AND FULL BOARD MEMBER APPOINTMENTS
Cooper called the meeting back to order . VanVyven motioned and Oakley
seconded to support the Nominating Committee recommendation to fill Rep . Roger
Halvorson's Executive Board position with Sen . Ray Haynes of California where Haynes
will serve as Treasurer. Motion carried .
VanVyven motioned and Rep . Tom Uher seconded that Sen . Jim Dunlap of
Oklahoma fill the remainder of the term of Rep . Roger Halvorson's Board seat due to the
election defeat of Halvorson . Motion carried . VanVyven motioned and Halbrook
seconded that Sen . Billy Hewes of Mississippi fill Dunlap's seat . Motion carried .
COMMITTEE REPORTS
Finance Committee Report -Carolyn Oakley
Several meetings were held . A subcommittee was appointed, and an audit was conducted
at the ALEC office on Dec . 2, 1996 . The auditor, Andrew Lang, said low staff turnover
and corporate loyalty have been great strengths and benefits . Auditor cautioned that
foundation money is slow and can have strings . Still $1-million short of being in the black .
She said the committee voted not to accept the 1997 budget, but to continue the 1996
budget . They will direct staff to develop 1997 budgets that are 5%, 10%, and 15% below
1996 budgets . VanVyven motioned and Cooper seconded allowing the Finance Chair the
latitude to accomplish these outlined goals . Motion carried .
Meetings Committee Report-Ray Powers

(with Brad Boutillier) Will work on fundraising from now until February with New
Orleans Host committee for Annual Meeting . The Host Committee agreed to try to reach

revenue and expenditure targets given by ALEC . New Orleans schedule will include
Flavor of New Orleans, family night on Saturday at Aquarium, substantive programming

moved from Saturday to Wednesday, with most events at hotel . Host Committee will

assist State Chairs with dinner bookings . 1998 site is Chicago and 1999 site is Opreyland .
For 2000, the committee will explore SanFrancisco, Portland, and Seattle .

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Proposal for Spring Board meeting on March 6 to 9, 1997, at the PGA National Spa and
Resort in Palm Beach, Florida with Thursday arrival, meetings all day Friday and a halfday Saturday and departure on Sunday . This was held for further discussion due to
conflicts with some other meetings .
Federalism Committee-Brenda Bums
ALEC was asked to intervene in a FEC decision on interconnection in relation to the
Telecommunications Act of 1996 . Referred such a recommendation to the
Telecommunications Task Force noting the FEC overstepped its authority regarding
state's rights, but did not opine on the issue . She hopes the majority of future action will
be to work with Congress . The Federalism Committee raised $12,000 in 1996 and spent
$9,000 (primarily on attorney work and publications) .
Bylaws Committee-Frank Messersmith

The following language was passed out of the Bylaws Committee and presented to the
Board for adoption . A motion of Cooper, second by Oakley, did carry to adopt this
lAflb~ .'10P"

Section 10 .01 Appointment . All State Chairmen are appointed by the National
Chairman. Private Sector State Chairmen are appointed by the ALEC State
Chairman, and confirmed by both the Private Enterprise board Chairman, and the
National Chairman . Each ALEC State Chairman shall appoint a Private Sector
State Chairman to serve concurrently with the State Chairman .
Section 10 .02 Term . State Chairmen Serve for a two (2) year term, and may be
reappointed by the National Chairman .
Section 10 .03 Duties . State Chairmen duties shall include recruiting new
members, working to ensure introduction of model legislation, suggesting task
force membership, establishing state steering committees, planning issue events,
and working with the Private Enterprise State Chairman to raise and oversee
expenditures of legislative scholarship funds.
Section 10 .04 Meetings . State Chairmen shall meet at least three (3) times a year_
in conjunction with the scheduled meetings of the National Board .
Section 10 .05 Elections . State Chairmen and Private Sector State Chairmen shall
meet at the ALEC annual meeting to separately elect a Chairman and a Private
sector Co-Chairman from among their respective members whose duties shall be to
preside at their meetings . Pursuant to Article V, Section 5 .02, State Chairmen
shall nominate six members whose names shall be submitted to the ALEC Board of
Directors Nominating Committee for consideration as ALC Directors . The duty of
the Private Sector Co-Chairman is to assist the Chairman in fund-raising and
private/public sector recruitment and retention . The Chairman of the State
Chairmen and the Private Sector Co-Chairman may not serve more than two (2)

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consecutive two (2) year terms . In addition, the State Chairmen shall establish an
Executive Committee, composed of the following : Chairman of the State
Chairmen (who will Chair the Executive Committee), the Private Sector CoChairman of the State of the State Chairmen, and three designated public sector
State Chairmen currently serving on the ALEC Board of Directors, and three
Private Sector State Chairmen. The Executive Committee shall meet at the Fall
Board Strategic Planning Meeting, and at the annual meeting .
Section 10 .06 Steering Committee . State Steering Committees shall consist of a
State Chairman, a Vice-Chairman from the opposite party, if appropriate, Senate
and House Membership Coordinators, Legislative Issue Coordinators and such
other members as set forth in ALEC's strategic plan .
Section 10 .07 State Scholarship Accounts . All funds for ALEC State Scholarship
Accounts shall be deposited in accounts designated by the ALEC Board of
Directors. State Chairmen are prohibited from establishing, maintaining, or
utilizing any other such accounts for ALEC purposes . Violation of this section
shall constitute grounds for : (1) immediate removal from a leadership position, and
(2) dismissal from membership in accordance with these bylaws .
Task Forces-Rep . McDaniel
McDaniel motioned and Kennard seconded that no member to a Task force can vote 30
days prior to their appointment . Motion passed .
Personnel-Halverson
They voted to send the employee manual for legal review with attention to sections
regarding part-time employees . Tina Walls and Duane Parde will review job descriptions .
NATIONAL CHAIR COUNCIL APPOINTMENTS
Cooper noted that the National Chair Council includes Cooper, the former public sector
Chairs, and I appointment which was named as Sen . Jim Dunlap . Victoria Hughes, of the
Koch Foundation, was also appointed to the Council .
BOARD COMMITTEE APPOINTMENTS

• Awards : Jane Cahill, Les Goldberg (Co-Chair), Charles Hardwick, Pete Poynter,
Stephan Stefano, Sen . Dean Rhoads (NV) (Chair), Sen . George "Doc" Gunther (CT),
Sen. Phil Hoffman (MI), Rep, Carolyn Oakley (OR)
• By-Laws : Tina Walls, Edward Failor, Ronald Scheberle, Frank Messersmith (CoChair), Michael Morgan, Sen . Owen Johnson (NY) (Chair), Sen George "Doc"
Gunther (CT), Sen . Bill Raggio (NV), Rep . Steve McDaniel (TN), Speaker Harold
Brubaker(NC)
• Federalism : Sen . Brenda Bums (Chair), David Halbrook (Co-Chair), Sen . Dean
Rhoads (NV), Speaker Bobby Hogue (AR), Rep . Tom Uher (TX), Assemblyman

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Robert Straniere (NY), Sen . Ray Powers, Monita Fontaine, Jeffrey Lane, Harry
Winters

• Finance : Rep . Carolyn Oakley (OR) (Chair), Sen . Ray Powers (CO), Sen . Bill Raggio
(NV), Sen . Dean Rhoads (NV), Sen . Ray Haynes (CA), Rep. Donna Jones (ID),
Speaker Bobby Hogue (AR), Speaker Harold Brubaker (NC), Rep . Tom Uher (TX),
Rep . Bonnie Sue Cooper (MO), Rep . Dale Van Vyven (OH), Edward Failor, Ron
Scheberle, Marie Chelli, Charles Hardwick, Michael Morgan (Co-Chair), Roger
Mozingo, J . Patrick Rooney, Jerry Watson
• Lobbying Regulations: Sen. Bill Raggio (NV) (Chair), Sen. Brenda Bums (AZ), Rep.

Carolyn Oakley (OR), (Public Sector Vacancy), Tina Walls (Co-Chair), David
Halbrook, Kurt Malmgren, Pete Poynter

• Meetings/Conventions: Sen . Ray Powers (CO) (Chair), Sen . Owen Johnson (NY),
Rep . Donald Ray Kennard (LA), Rep . Tom Uher (TX), Rep . Donna Jones (ID), Rep .
Caroyln Oakley (OR), Tina Walls, Ron Scheberle, Marie Chelli, Les Goldberg, Roger
Mozingo (Co-Chair), Steve McDaniel
• Membership : Speaker Bobby Hogue (AR) (Chair), Sen . Brenda Bums (AZ), Sen. Ray
Haynes (CA), Rep . Donna Jones (ID), Edward Failor, Monita Fontaine, Les Goldberg,
David Halbrook, Kurt Malmgren, J . Patrick Rooney, Jerry Watson (Co-Chair)
• Nominating : Rep . Bonnie Sue Cooper (MO) (Chair), Sen . Ray Powers (CO), Sen .
Owen Johnson (NY), Sen . Bill Raggio (NV), Speaker Harold Brubaker (NC), Rep .
Dale Van Vyven (OH)
• Personnel Policy : Rep . Dale Van Vyven (OH) (Chair), Speaker Bobby Hogue (AR),
Rep . Donna Jones (ID), Rep . Steve McDaniel (TN), Tina Walls, Ron Scheberle (CoChair), Charles Hardwick, Micheal Morgan
• Strategic Planning : Rep . Bonnie Sue Cooper (MO) (Chair), Sen . Ray Powers (CO),
Sen . Brenda Burns (AZ), Sen . Owen Johnson (NY), Sen . Philip Hoffman (MI), Sen .
Bill Raggio (NV), Speaker Harold Brubaker (NC), Rep . Donna Jones (ID), Rep .
Carolyn Oakley (OR), Speaker Bobby Hogue (AR), Rep . Dale Van Vyven (OH), Al
Auger (Co-Chair), Tina Walls, Edward Failor, Ron Scheberle, Jane Cahill, Marie
Chelli, Monita Fontaine, Les Goldberg, David Halbrook, Charles Hardwick, Jeffrey
Lane, Kurt Malmgren, Frank Messersmith, Michael Morgan, Roger Mozingo, Pete
Poynter, J . Patrick Rooney, Stephen Stefano, Jerry Watson, Harry Winters

• Task Forces : Jane Cahill, Jeffrey Lane, Frank Messersmith, Pete Poynter (Co-Chair),
J. Patrick Rooney, Stephen Stefano, Harry Winters, Rep . Bonnie Sue Cooper, Rep .
Dale Van Vyven, Sen . George "Doc" Gunther, Sen . Ray Haynes, Sen . Phillip
Hoffman, Assemblyman Robert Straniere, Sen . Billy Hewes
The Media and Publications Committee was disbanded .

On motion of Rep . Bonnie Sue Cooper with second by VanVyven, the meeting was
adjourned .

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ADDENDUM TO MINTUES OF BOARD MEETING :
On a motion of Bonnie Sue Cooper, seconded by Rep . Dale VanVyven, a vote was taken
by mail from the ALEC Board of Directors regarding the Executive Director . On a vote
of 15 to 0 on December 27, 1996, Cooper noted passage of the following motion :
"The matter of selecting an Executive Director will be addressed at the March 7, 1997,
Board of Director's meeting . However, in the meantime, please indicate your approval of
Duane Parde publicly serving with the title of Executive Director on the response form ."

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