COMMITTEE MEETINGS August 6, 2013 Finance Committee: 8:00 am 10:00 am Buckingham Membership Committee: 8:00 am 10:00 am Price Task Force Committee: 10:00 am 12:00 pm Buckingham Public Affairs Committee: 10:00 am 12:00 pm w? Price AGENDA ALEC Board Meeting August 6, 2013 Chicago, Illinois Mission ?To advance free markets, limited government and federalism? Strategic Plan Overriding Objective All key objectives and strategic initiatives of the strategic plan will be measured against one overriding objective: ?Support state legislators to be more effective in their role to advance public policy initiatives consistent principles.? I. 7 Call to Order Chairman Piscopo 1:00 pm 11. Changes to Agenda Chairs? Report Chairman Piscopo 0 Additional con?ict of interest disclosures per agenda items a Introduction of new Board members 0 Chairs items since last Board meeting Chairman Seale Introduction of new Board members a Chairs items since last Board meeting IV. Executive Director?s Report Ron Scheherle . ALEC update 9 Office move update 0 Governance update Congressional hearing ACTION AGENDA V. Consent Agenda Chairman Piscopo 9 Approval of Minutes from May 3, 2013 Board Meeting VI. Finance Committee Report Rep. Leah Vukmir Lisa Bowen 0 Approve the Financial Statements ending May/June 2013 VII. Strategic Plan Key Objective IV Rep. Dave Frizzell I Organizational Capacity - Initiative 3 Jeff Lambert 9 Approve Bylaw Changes for State Chairs Strategic Plan Key Objective 1 Chairman Piscopo I Membership Initiative 2 Ron Scheberle Michael Bowman a Discussion and Approval of Jefferson Project Operating Procedures DISCUSSION AGENDA IX. Strategic Plan Objective IV Rep. Dave Frizzell Organizational Capacity - Initiatives and 2 Jeff Lambert a Job Descriptions for State Chairs INFORNIATION AGENDA Public Affairs Committee Update Rep. Phil King 1 Bill Meierling XI. Membership Committee Update Dave Frizzell Jeff Lambert XII. Task Force Committee/Policy Update Rep. Jim Buck i Michael Bowman Other business Chairman Piscopo Next Board Meeting December 4, 2013 - Washington DC 1:30 pm 1:35 pm 2:10pm 2:30 pm 3:15 pm 3:45 pm 4:15 pm 4:45 pm 5:00 pm TAB 1 Action/Consent Approval of Minutes from May 3, 2013 Board Meeting Recommendation That the Board of Directors approves the minutes from the May 3, 2013 ALEC Board of Directors meeting. Background Ron Seheberle and ALEC staff have reviewed and approved the minutes from the Board of Directors meeting on May 3, 2013. They are now before the Board of Directors for approval. Fiscal Impact There is no ?scal impact associated with approving the minutes. Minutes American Legislative Exchange Council Joint Board of Directors and Private Enterprise Advisory Council Meeting May 3, 2013 Oklahoma City, OK In Attendance: Board of Directors: Representative Gary Banz Representative Liston Bar?eld Senator James Buck Senator Barbara Cegavske Representative David Frizzell Senator Michael Lamoureux Representative Ray Merrick Representative Tim Mof?tt Senator Wayne Niederhanser Representative John Piscopo Senator William Seitz Representative Thom Tillis Representative Curry Todd Senator Leah Vukmir Senator Susan Wagle Private Enterprise Advisory Council: Mr. Jeffery Bond Mr. Bill Carmichael Mr. Kelly Mader Mr. Michael Morgan Mr. David Powers Mr. Steve Seale Mr. Daniel Smith Mr. Russell Smoldon Mr. Patrick Thomas Mr. Bob Williams Others: Mr. Michael Bowman Ms. Lisa Bowen Mr. Jim Dunlap Mr. Alan Dye Mr. Jeff Lambert Mr. Bill Meierling Ms. Briana Mulder II. IV. VI. VII. Mr. Tom Nelson Mr. Colin Rome Mr. Ron Scheherle Call to Order: Chairman John Piscopo called the meeting to order at 9:30 AM CST. Changes to Agenda: There were no changes to the agenda. Con?ict of Interest Declaration: There were no con?icts disclosed. Executive Director?s Report: - New Staff Hires: Executive Director Ron Seheberle reported on Executive Director Ron Scheherle introduced new Senior Director of Public Affairs Bill Meierling and new Senior Director of Membership and Development Jeff Lambert. - Of?ce Move: He also provided an overview of of?ce relocation from Washington, DC. to Arlington, A. Governance Changes Based on Legal Audit: Ron Scheherle provided an update on the changes to ALEC bylaws previously approved by the ALEC Board of Directors via conference call. ACTION AGENDA Consent Agenda: - Approval of the minutes from the November 2012 Board Meeting: The Board approved the minutes of the November 12th, 2012 Board meeting. Approval of the minutes from the March 2013 telephonic Board Meeting: The Board approved the minutes of the March 13?h telephonic Board meeting. Approval of the proposed changes in Task Force Operating Procedures: The Board approved that only public sector task force members would be permitted to introduce proposed model legislation. Finance Committee Report: Accept the Financial Statements ending February 2013: Lisa?Bowen presented on the ?nancial statements. The Board accepted the Financial Statements ending February 2013. - Approve 2013 Operating Budget: Lisa Bowen presented on the 2013 Operating Budget. The Board approved the 2013 Operating Budget. Approval of Legislative Expense Reimbursement: The Board delayed discussion of changes to the Legislative Expense Reimbursement until the 2013 Annual Meeting Board Meeting. DISCUSSION AGENDA Strategic Plan Objective IV: Items 1&2 Communication/Public Affairs: - Framework and Components of an Effective Public Affairs Program: Bill Meierling provided an update on the Public Affairs staff and strategy. Strategic Plan Objective I: Item 1 Membership: -- Identify Gaps in Membership Areas and Discuss Strategies to Engage/Increase Private and Public Sector Membership: Jeff Lambert gave an overview of the Membership Department strategies. INFORMATION AGENDA IX. Policy Report: Michael Bowman provided an update on the Policy Department activities. X. Adjourn: The meeting adj carried. Next Board Meeting August 2013, Chicago ATAB 2 Action/Consent Acceptance of Financial Report ending June 2013 Recommendation That the Board of Directors accept the ?nancial report for the period ending June 30, 2013. Background Finance Committee Chair Senator Leah Vukmir has reviewed the ?nancial statements for the period ending June 30, 2013 They are now before the Board of Directors for aCceptance. Fiscal Impact There is no ?scal impact associated with accepting the ?nancial report for June 30, 2013. Financial Statements for the period ending June 2013 will be distributed at the August 6, 2013 ALEC Board Meeting. TAB 3 Action/Consent Approve Bylaw Changes for State Chairs Recommendation That the Board of Directors accept proposed changes to the bylaws for the State Chair job descriptions. Background The proposed changes to the Bylaws aim to bring clarity to the state chair position. They are now before the Board of Directors for acceptance. Fiscal Impact There is no ?scal impact associated with accepting the proposed changes to the Bylaws. ARTICLE STATE CHAIRS STEERING COMMITTEE Section 10.01 Appointment. A State Chair that accepts the terms of the of?ce and training in roles and responsibilities shall be appointed by the national chairman. All State Chairs are appointed by the National Chair. When possible Co-Chairs shall be appointed representing with one Co?Chair from earth chamber. All Private Sector State Chairs are appointed by the respective ALEC State Chair, and confirmed by the, the National Chair. Each respective ALEC State Chair shall appoint a Private Sector State Chair to serve concurrently with the respective State Chair. Section 10.02 Term. State Chairs serve for a two- (2) year term, and shall be appointed/reappointed by December ?lSi of an election year with the term beginning January 1st the following year. The State Chair may be reappointed by the National Chair if the respective State Chair is performing hisfher duties in a satisfactory manner. Section 10.03 Duties. Chair Legislative State Chairs duties shall include recruiting new legislative and private sector members, suggesting legislative task force membership, establishing a state steering committee, planning issue events, and working with the Private Sector State Chair. The Private Sector State Chairs duties shall include recruiting new private sector members, planning an annual membership event, and assisting the Public Sector State Chair. Section 10.04 Training. Training and orientation: The State Chair shall participate in a training program consisting of an orientation at the States and Nation Policy Summit in Washington, DC that will include a peer-to-peer orientation and overview of roles and resoonsibilities. Section 10.05 State Chair Agreement. The State Chair Agreement will include a job description that will define roles and responsibilities. Roles and responsibilities will de?ne duties related to membership recruitment, both public and private, and travel reimbursement fond responsibilities. For appointment consideration by the National Chair the State Chair most agree to the terms set forth in the State Chair Agreement. The National Chair and executive committee will perform an initial evaluation of the State Chair at 90 days and annually thereafter. Section 10.06 Termination of Term. Should the terms of the State Chair Agreement not be met by the State Chair the National Chair can remove the State Chair at his or her discretion. Section 10.67 Meetings. State Chairs shall meet at least three (3) times a year in conjunction with the scheduled meetings of the Legislative National Board of Directors as outlined in Article lV Section 4. Section 10.08 Elections. The Chair of the State Chairs and the Private Sector Chair of the State Chairs shalt meet at the ALEC Annual Meeting to separately elect a Chair of the State Chairs and a Private Sector -Chair of the State Chairs from their respective members whose duties shall be to preside at their State Chairs meetings. Pursuant to Article V, Section 5.02, the State Chairs shall nominate six members, one of whom shall be the Chair of the State Chairs, whose names shall be submitted to the ALEC Legislative Board of Directors Nominating Committee for consideration as ALEC Legislative Board of Directors. The duty of the Private Sector -Chair of the State Chairs is to assist the Chair of the State Chairs in fundraising and private/public sector recruitment and retention. The Chair of the State Chairs and the Private Sector Chair of the State Chairs may not serve more than two (2) consecutive two- (2) year terms. In addition, the State Chairs shall establish an Executive Committee composed of the following: the Chair of the State Chairs (who will Chair the Executive Committee) the Private Sector Chair of the State Chairs, the three designated public sector State Chairs currently serving on the ALEC Legislative Board of Directors, and three Private Sector State Chairs seiected by the Private Sector State Chair of the State Chairs. The Executive Committee shall meet at the States and Nation Policy Summit, and at the Annual Meeting. Section 10.09 Steering Committee. State Steering Committees shall consist of a Legislative State Chair, a Vice Chair from the opposite party, if appropriate, Senate and House Membership Coordinators, and such other members as set forth in strategic plan. Section 10.10 State Expense Reimbursement Funds . All funds for ALEC State Reimbursement Funds shall be deposited in accounts designated by the ALEC Legislative Board of Directors. State Chairs are prohibited from establishing, maintaining, or utilizing the accounts. Account expenses can be for ALEC only. Violation of this section shalt constitute grounds for (1) immediate removal from a ieadership position, and (2) dismissal from membership in accordance with these bylaws. TAB4 Action/Consent Establish Leadership and Rules for the Jeffersonian Project Recommendation The Board should adopt the following as operating rules for the effersonian Project: a All of the effersonian Proj eot?s Board members will be chosen by Board of Directors. 0 No action can be taken by the effersonian Project unless it is supported by a current ALEC policy. a All ALEC Issue Alerts and testimony will be done by the effersonian project. a Any activity that could be done by ALEC may be done by Icffersonian Project if legal counsel advises it would provide greater legal protection or lessen ethics concerns. Background Due to ever- changing state ethic rules a 501(c)(4) provides better legal protection for the parent ALEC organization, which is a 501(c)(3). Upon the recommendation from legal counsel, Board voted to establish a 501(c)(4). Today?s vote is to approve the Jeffersonian Project?s standard operating procedures as they relate to ALEC. Fiscal Impact The effersonian Project will be a new revenue source for ALEC and will lead to increased funding. THE EF PERSON IAN PROJECT 501(c)(4) Purpose: 3 Due to ever? changing state ethics rules a ?501(c)(4) organization provides better legal protection for the parent ALEC organization, which is a 501(c)(3). Allows ALEC to communicate a strong and consistent message to our members as we have since our founding. a Removes questions of ethical violations made by our critics and state ethics boards and provides further legal protection. Bene?ts: 0 Increases funding by providing a new revenue source. 6 All ALEC Policy Briefs can be sent out as Issue Alerts by the effersonian Project, which can include legislative bill numbers and Support or Oppose positions. a ALEC can again freely provide testimony on pending legislation. 0 Lessons restrictions on our Public Affairs Department by allowing increased communications to the public. Allows ALEC to aggressively and effectively respond to false and misleading attacks. a Allows ALEC to defend our members who are under attack, both public and private, by organizing grassroots support. Protections: Io Jeffersonian Project is created and controlled by ALEC as an organization a All of the effersonian Project?s Board members will be chosen by Board of Directors. 0 All of the Jeffersonian Project?s staff will also be ALEC staff. LAW OFFICES WEBSTER, CHAMBERLAIN 8r, BEAN, LLP 1747 AVENUE, NAN. FWK M. Roms CHARLES H. WATKM K. A6589 Ft. SW SARAH E. MGONEY sowado D. common (CHARLES E. concession (1917-2ng FAX: {202) 835-0243 .3 3:;sz S??i?g?m xsu'r momma snoww msswuscms Pl ??13 - no": AcumEo ro 0.0. ass moo M. commas I A TO: American Legislative Exchange Council FROM: Alan P. Dye RE: Jc??ersoninn Project DATE: June 4, 2013 Tho Jot?t?crsonisn Project 1116., has been established as an organization exempt ?'om tax under section 501(c)(4) of the Internal Revenue Code. As such, its activities must be primarily devoted to tho promotion of social welfare. This includes educational activity such as that carried on by ALEC, but it also includcs activity that the Internal Rovcnuc Service would consider to be direct or grassroots lobbying. As I understand it, the Project is intended to ful?ll three needs. First, there. are states which use a do?uition of lobbying for purposes of their lobbying registration statutes that is for broader than the de?nition used by the IRS. In those states, some communications that would not, be considered lobbying by the IRS are considered lobbying for purposes of state law and require regisuation of the lobbyist with the state. ALBC does not wish to be pcmoivcd as a. lobbying organization and therefore does not wish to register as a lobbyist in any state. Tho Jeffersonian Project can be used to distribute communications in states that have broad lobbying de?nitions. The Project would be required to register as a lobbyist in some of those states, but ALEC would not. Secondly, it is possible ?rst at some point the: Internal Revenue Service will audit ALEC. Though we do not believe that any activity carried on by ALEC is lobbying, the 138 could disagree. If that is the case, it would be possible to resolve any such issue with the IRS by agreeing to transfer the activity in question from ALEC to the Joffersonian Project. There: are also gray areas in the IRS de?nitions, and, when a proposed ALEC communication approaches such a gray arcs, it could be placed in the Project to avoid any argument that ALEC has engaged in lobbying. Third, ALBC has been approached by donors who are willing to make sizable donations, but insist that the donations go to a section 501(c)(4) organization. icfforsouian Project would provide a vehicle to accept such contributions. ?mwmusm a a No action can be taken by the effersonian Project unless it is supported by a current ALEC policy. a ALEC will not lobby, but will communicate its positions like we did in the past, which may result in registering a few employees as lobbyists, because of the over expansive de?nitions of ?lobbying? in some states. Perception Many conservative nonpro?t organizations have Heritage Foundation/Heritage Action 0 Americans For Prosperity Foundation/Americansfor Prosperity 6 Americans for Tax Reform oundation/Americans for Tax Reform a American Builders Contractors ?~Trirnmer Education oundation/F ree Enterprise Alliance Opposition A number of our left?Wing opponents 9 Color of Change 501(c)(4) 4? Common Cause 501 0 Sierra Club Foundation 501(c)(3)/ Sierra Club 501(c)(4) The Jeffersonian Project is indirectly controlled by ALEC through a provision in its bylaWs requiring that its board of directors be appointed (or removed) by ALEC. Though under District of Columbia law, the Board of Directors of the Project manages its activities, the ability to removc and reappoint directors should gEVe ALBC con?dence that no future Jofforsonian Project board will cause the Jefl?orsoniao Project to diverge from principles. In order to some the Project?s alignment with principles, the board of directors of the Jo??ersonian Project could adopt a resolution allowing it to take a position on an issue or legislation only if the position taken is consistent with ALBC model legislation or policies that have undorgono rigorous adeption procedures. . TAB 5 Action/Consent Approval of Job Descriptions for State Chairs Recommendation The Board should approve the follOwing job descriptions for State Chairs. Background State Chair program is one of the best membership recrbitment and retention tools. The following job description and agreement form has been developed to improve State Chair 7 training and accountability. Fiscal Impact There is no ?scal impact to approving job descriptions for State Chairs. Position Title: State Chair As a State Chair of ALEC i, understand that my duties and responsibilities include the following: Time Required: General ?escription: As a State Chair of ALEC i shall attend all meetings, serve an active role in all discus concerning the organization, and represent my state at all national and local events. Speci?c Responsibilities: American Legislative Exchange Council The American Legislative Exchange Council (ALEC) State Chair Job Description and Agreement Adopted INSERT DA Attend State Chair meeting at ALEC Annual Meeting, . Attend ALEC State Chair Training at States and Nation Policy Summit Attend all ALEC in state events Serve two year termls) as State Chair As time permits, attend State Chair meetings conducted via conference call Support membership by efforts to increase my state delegation by at least ten percent a year. Attend all ALEC State Chair and membership events. Chair the ALEC Delegation. The chair is the primary POC for all ALEC members in the state. The coordinates all in?state? events focused on ?legislative membership, state development support and development of the annual ALEC state strategic plan. The Private Sector Chair, along with the Public Sector Chair monitors both contributions and expenditures State Reimbursement Find Account. The purpose of the State Reimbursement Fund Account is to pr: funding for state lawmakers to attend ALEC conferences, state focus events, and membership events. In states which allow the establishment of'a State Reimbursement Fund Account, it will be administered by AL Arlington, VA. All expenditures from the fund-~ where applicable must be approved by the State Chair; expenditures shall be approved fcir State Reimbursement Fund Accounts with negative balances. Likewis .sions chair the from )vide hose EC in No a, no expenditures shall be approved if such will result In the State Reimbursement Fund Account having a negative balance. No diSbursement Will be approved if it violates any applicable law, including but not limited to, ethics rules Membership Events. The Public Sector Chair has the duty to plan, fund, and conduct a state Pubiic and Pr Sector Membership Event. As permitted by law, the Chair can use State Travel Reimbursement Account Ivate onds for this purpose. This event can be held in conjunction with Private Sector membership drives, as permitted by law. its purpose is to attract and recruit new ALEC members. Each state should have at least one event a year. The chair should send a list of new candidates to the Senior Director of Membership and Developmen followup. Membership Recruitment. The key to developing the public?private sector partnership is the recruitme for nt of members from both sectors. The Public Sector Chair should work with the Private Sector Chair to recruit members, with particular focus on legislative members. Meeting Attendance. Key to membership retention is meeting attendance. Members who attend meetings and are involved in Task Forces continue their membership. The Public Sector Chair should work with the Pr ivate Sector Chair and ALEC staff to encourage legislative member attendance and private sector member attendance. Significant gaps in meeting attendance, that are not financially related, may result in removal as State Chair i American Legislative Exchange Council - 2900 Drive, l5?h Floor - Arlington, VA 2220} 703-373-0933 ww.alec.org American Legislative Exchange Council Task Force Appointments. The Public Sector Chair is responsible for appointing legislative members in their state to the nine Task Forces. Appointments occur every two years in January of years following national elections. Be informed about the organization?s mission, services, policies and programs Term. Shall be appointed/reappointed by December of a national election year with the term beginning ianuary the following year. '7 Public Sector State Chairs duties shall include recruiting new legislative and private sector members suggesting legislative task force membership, establishing a state steering committee, planning issue events and working with the Private Sector State Chair It The Private Sector State Chairs duties shall include working with ALEC staff to recruit new private sector members, planning an annual membership event and assisting the Public Sector State Chair. '3 The State Chair shall participate in a training program consisting of an orientation at States and Nation Pol cy 2 Summit in Washington, that will include a Orientation and overview of roles and responsibilities. I: Report quarterly to the ALEC regional representatives the progress of the duties that have been assigned. 3, Give a report to ALEC membership at the Annual Meeting regarding the progress of the state' 5 goals. i am morally responsible for the health and well~being of this organization. As a State Chair, 3 have pledged myself to help realize the mission, which is: To advance free markets, limited government, and federalism. i understand if i am absent without excuse from regularly scheduled national will be asked to resign as State Chair. I will act with care and loyalty and put the interests of the organiZation first. Comply with all applicable laws, including ethics laws, and seek relevant opinions where necessary. '5 i promise to preserve the investment of time and money made over years by all the volunteers who created th's organization and brought it to this point. Every State Chair is making astatement of faith to carry out the above agreements to the best of our ability, each in our own way, with knowledge, approval and support of all. Legislators must inform ALEC of any public records/FOlAfrequests that include ALEC documents. In itsjturn, ALEC is responsible to me in a number of ways: i" i will be sent from my regional repreSentative, without request, membership and travel reimbursement reports that allow me to reVEew my state?s current position ?i The Coordinator of Corporate and Nonprofit Affairs maintains the State Reimbursement Fund account and . iSsues reports of State Reimbursement Fund activity to the regional representatives at ALEC i can call on ALEC staff to discuss program and policy goals and objectives ?l Staff will provide public s?ctbr and private sector membership packets, a list of public and private sector members in your state and a liSt of potential private sector members (if available) it The MemberShip Department will work with the State Chairs to have a representative from ALEC at a membership event. A Membership Department staff person will primarily represent ALEC at these events. However, Executive Director, National Chair, or Private Enterprise Advisory Council Chair may be available as well. -- Staff will respond in a straightforward and thorough fashion to any questions i have that i feel are necessary to carry out my responsibilities to this organization. l? ALEC will provide legal assistance on an as needed basis. American Legislative Exchange Council - 2900 Drive, 66" Floor - Arlington, VA 2220} 703?333-0933- ww.alecorg American Legisiative Exchange Councii Quali?cations: Has been nominated to serve and duly appointed by the Nationai Chair. - An active member of ALEC Signature 0f State Chair Date For State Chair term beginning January 1St of and ending January 15t of Signature of Natienai Chair Date American Legislative Exchange Couneil - 2900 Drive, Floor - Ariingten, VA 22202- 703-373?0933 w.aiec.org American Legisiative Exchange Counc? 2014 MEMBERSHIP GOAL for Ci'i?lk beta: to enter text. STATE Tell us about your membership plan for 2014. (Please fill in the information in the gray boxes) 1. What is your; estimate for 2013 membership retention? Your total membership on December 31, 2013 Click here to enter text. What is your anticipated retention rate for 2014? xCiick here to enter text. Total number of renewals anticipated for 2014 =Ci?ci< here to enter text. 2. How many new members will you recruit in 2014? Anticipated new members to be recruited Click here to enter text. (Always include National Chapter-Only members.) x12 months Total new members anticipated for 2014 Click bare to enter text. 3. Comglete your 2014 Membershig Goai (include all members) Totai Renewals from section one: (Stick here to enter text. Total New Members from section two: (Stick here to enter text. 2014 Membership Goal *We always encourage you to establish goals of at least 10% growth for the year. if possible, provide a number greater than your 2013 end of year number. Please e?maii this report to ilambertggaiecorg or fax it to (703) 373?0927on or before January 31, 2014. Thank you! State Chair initials: ?ick here to enter text. Senior Membership Dir. Initials: Ciiait here to enter text American Legislative Exchange Council Joint Board of Directors Meeting August 6, 2013 Public Affairs Update The American Legislative Exchange Council Strategic Plan calls for robust engagement and support of state legislators to empower their effectiveness. Key objective three also calls for an aggressive public affairs and communications program to effectively promote the organization and its policies. During the ?rst half of 2013, American Legislative Exchange Council members and staff have engaged in an aggressive, proactive media campaign to promote research and issue-based communication as well as correct inaccuracies in the media. The American Legislative Exchange Council has a defined, leadership position as the largest voluntary membership organization of state elected officials in the country. While this leadership position made the organization a target for bi gwgovernrnent and activist groups, it also created an opportunity to grow and elevate the pro?le of the membership. As members and staff continue communication and earned media outreach on issues, research and model policy, the organization is increasingly recognized as a conservative, free-market think tank, rather than a ?corporate bill mill that secretly manipulates thousands of legislators.? Members of the media and third party groups are increasingly contacting public affairs staff for comment and inclusion in the story. Whereas one year ago stories about the organization contained little factual information, today the media and public are more interested in the facts. Coordinated outreach across all external channels provided lift to the organization and developed opportunities to cultivate understanding and develop credibility. Report releases and proactive media and member outreach led to record~setting earned media, third?party support, online/social conversations and website traf?c throughout May and June. While the State of Florida vs. George Zimmerman verdict presented an opportunity for opposition groups to cast ALEC in a negative light based on model policies no longer endorsed by the organization, public affairs staff successfully redirected the discussion and remained largely out of the story. The following report clearly illustrates coordinated outreach regarding issues that matter to the membership and public created the opportunity for the media and coalition partners to focus attention on the positive elements of the organization and the value provided to society by the American Legislative Exchange Council. During Q2 and Q3 (partial) 2013, public affairs staff worked closely with task force staff, leadership and membership to promote the organization through: Report releases Proactive media engagement Member relations and support Online community management Coalition and third?party outreach 995959?" 1. Report Releases On May 23, 2013, the release of the sixth edition of Rich States, Poor States garnered more than 100 positive articles, nearly 12,000 webpage visits, and more than 17,000 downloads from ALEC and partner websites. Media mentions include broadcast and feature articles in print and online from sources including Investor ?3 Business Daily, USA Today, The Dallas Morning News, The Washington Examiner, and The Washington Times, among others. Top website referrals came from Facebook (2,144), Investor ?3 Business Daily (1,693), Twitter (1,335), PRNewswire, PolicyMic and ArsTechnica.com. On June 26, 2013, the third report on Environmental Protection Agency over-regulation was released and garnered more than two dozen positive articles including coverage from The Washington Times, Investor ?s Business Daily, and the Daily Caller. In both cases, traffic and attention was driven by a - coordinated outreach approach which included cross platform promotion of the reports via the website, social media and blog posts. In addition, advance work was conducted with media, and coalition calls, Capitol Hill brie?ngs and third?party roundtables were hosted to continue report promotion. 2. Proactive Media Engagement Proactive media engagement has continued to increase. Staff members are being positioned as policy experts and are becoming a resource for media rather than a target of media. Issues- based communication is at the forefront of media engagement. Successful media Outreach activities include: a Earned Media 6 Investor?s Business Daily (5/23/13) Texas, Red States Beat Blue States on Jobs, Growth Washington Examiner (5/23/13) Report: Texas leadsnation in growth and job creation, Michigan dead last Washington Times (5/23/13) Red states hold the edge in growth Fox Nation (5/23/13) - Report: Texas Leads Nation in Growth and Job Creation, Michigan Dead Last Breitbart (5/23/13) - California ranks 47th in Economic Opportunity The Dallas Morning News (5/23/13) - Texas ranks 12th in competitiveness, conservative group's report says The Dallas Morning News (5/23/13) ALEC report: Why Texas ranks 12th in state competitiveness Salt Lake Tribune (5/23/13) - Utah is tops for 2013 economic outlook, ALEC says Deseret News (5/23/13) Utah ranks No. 1 for economic outlook 6th year in a row The Waterbury Republican (5/23/13) Time to open Connecticut for Business Fox 13 News Salt Lake City (5/23/13) Utah ranks #1 for economic outlook Chicago Business Journal (5/23/13) - What a new report has to say about Illinois' economic outlook Sunshine State News (5/23/ 13) ALEC Economists: florida in Top 10 for Economic Outlook Orlando Business Journal (5/23/13) - Florida ranks high in economic outlook Tampa Bay Business Journal (5/23/13) Florida ranks high in economic outlook The Washington Times (6/26/13) Obama administration pumps unprecedented power into EPA. The Daily Caller (6/26/13) Report: Obarna's EPA power balloons Science and Public Policy Institute (6/26/13) - ALEC Report: The US. Envirornnental Protection Agency's Assault on State Sovereignty. Georgia Public Policy Foundation (6/26/13) New Report Highlights How EPA's Stepping on State Toes. Investors Business Daily (6/25/13) - Obama's Climate Change Plans Include a War on Coal. 0 Hawaii Reporter (6/28) - Report: Hawaii Worst State in the Country to do Business at Washington Post 4 Business Interests in?uencing Education Laws in Virginia, Report Says, Lindsay Russell 0 The American Spectator EPA Growth Knows No Limits, Todd KGAB AM Cheyenne News (7/16) Wyoming a Top Five State for Business a YoarWest Valley (7/21) - Ariz's Low Spending, Taxes Get High Marks on National Economic Ranking - Op?ed Campaign The Clarion Ledger (4/26/13) Exchanging ideas produces positive results for Mississippi C. Steve Scale 6 Rapid City Journal (5/4/13) FORUM: Membership in legislative group helps me make better decisions Rep. Hal Wick, SD 6 The Capital Journal (5/6/13) Attacks on lawmaker participation in educational group shows closed?mindedness - Rep. Hal Wick, SD 0 The Argus Leader (5/7/2013) My Voice: Attacks on lawmaker group unjust ?Rep. Hal Wick, SD News and Observer (5/9/13) - ALEC chief: Group provides lawmakersa chance to share, learn and grow - Ron Scheherle Deseret News (5/28/13) - My View: Utah's economic advantage continues, Sen. Wayne Niederhauser, UT and Jonathan Williams 0 Kansas City Star (6/25/13) - Kansas tax reform is a good model for Missouri, Rep. I Tim Jones, M0 0 Real Clear Politics (7/30/ 13) California?s Non-Comeback, Ben Wilterdink 3. Member Relations and Support Member engagement in public affairs and communications activities has increased dramatically. With an increase in regular communication and an toward issue tracking, rapid response to member inquiries and process development, the American Legislative Exchange Council is poised to better engage and support both public and private members. Regular communications with membership include: a Daily trend report identifies trends relevant to public policy in speci?c task force areas a Weekly news highlights report - provides reporting on feature stories and threats Weekly newsletter provides a weekly update on events, membership activities, blog posts and other important membership information 9 strategy email -- shares information with leadership on accomplishments from the past month and strategy for the month ahead at . Inside ALE magazine shares public policy trends and issues related to state policy 4. Online Community Management A welcome increase in followers and supporters has come from robust engagement in the online community as well as a redesign of the organization?s online presence. Year to date, website traf?c has increased by more than 30%, Facebook ?likes? have increased by 13.2% and Twitter follows have increased by 39.6%. Each online property continues to grow at a rate of between one and five percent per week. 5. Coalition and Third?party Outreach Outreach to third-party organizations is beginning to generate increased'understanding about the American Legislative Exchange Council. has welcomed a dramatic increase in third party engagement by theAmerican Legislative Exchange Council with both supportive and opposition organizations. Toudate, outreach and meetings have been conducted with: a American Majority 0- Competitive Enterprise Institute a Common Cause a Empowerment Temple AME Church a The Franklin Center for Government and Public Integrity a The Heritage Foundation 0 The Joint Center for Political and Economic Studies a National Association of Latino Elected Of?cials at National Black Fellowship of the Assemblies of God a National Republican Campaign Committee 0 Univision Communications, Inc. 2013 AM Amer-303m Legislative Exchar?sge Cauncil Agenda, Documentation and Resources Time 8:00 am. 8:05 cum. 8:15 am. 8:13 earn. 8:25 am. 8:25 run. 8:30 o.m. 8:30 am. - 8:40 cum. 8:40 mm. 8:50 om. 8:50 am. 9:00 run. 9:00 am, 9:10 am. 9:10 am. - 9:40 am. 9:40 am. - 9:50 am. 9:50 am. 539195.! Welcome: Objectives for 2014 Rep. Dove Frizzell, Choir Bylaws Changes: Bylaws overview Rep. Dove Frizzell, Choir and Jeff Lambert, Senior Director of Membership and Development Fundraising: Program Overview and objectives Planned Giving )6 Alumni i?mgram State Dinners . Major Donors . Regional Map and State Chair Contacts: Overview of the new regions and philosophy behind the new structure. Rep. Dove Frizzell, Chair and Jeff Lambert, Senior Director of Membership and Development Membership Committee Chicago, ll. August 8, 2013, 8:00 am. - 3:50 3.511. Room: Price Resources 1. Bylaws changes 2. Major donor sheet 3. Region map 4. Job description and State Chair Job Description: Review proposed operating procedures and logistics. Rep. Dove Frizzell, Choir and Jeff Lambert, Senior Director of Membership and Development a Engaging the state chair in BOTH public and private member recruitment 1? Membership drives? 0 Contests? Feedback from committee? Prospect List: The group will review the current prospect list and provide key contacts to staff. Jeff Lambert, Senior Director Development Break Prodigal Son Project: The group wiil review the former members and provide key contacts to staff. Rep. Dave Frizzell, Chair and Jeff Lambert, Senior Director of Membership and Development State Reimbursement Funds: The group will review the proposed templates, propose a time frame and approve the final documents. Lisa Bowen, Senior Director of Finance and Je?? Lambert, Senior Director of Membership and Development a Template Letter 0 Template invoice a Who signs? Public or private? Both? a Time frame? a Amendment to job descriptions Wrap-up/Questions and Answers: Comments from Rep. Dave Frizzell, Chair Adjourn of Membership and .63 para agreement Prospect list Former members Template letter Template invoice Template reimbursement form 10. Job description and agreement 2913 AM Membership Cammittee Packet Agenda .. 1 .. Bylaws Oil-t l2 3 4 ajor oners eet 5 Region map . . b?d 68 Jo escriptlon an agreement . - 1? respect . . 9 Former members . .. . 10 Iemplate letter .. . . .. . emp ate reu?n ursement arm . . . ?The American Legisiative Exchange Council, 2013 STATE has STEERING connotes Section 10.01 Appointment. A State Chair that accepts the terms of the of?ce and trainino in roles ands - resoonsihj?ties shall he anoointed by the nationai chairman, All State Chairs are appointed by the National Chair. When possible Co?Chairs shail be appointed representaino with one (Io-Chair from each chamber. All Private Sector ?5 7 7' State Chairs are appointed by the respective ALEC State Chair, and con?rmed by the, the National Chair. Each - respective ALEC State Chair shah appoint a Private Sector State Chair to serve concurrently with the respective - State Chair? [FomattedFont Section 10.02 Term. State Chairs serve for a two? (2) year term, and shall be appointedtre'apcointed by December 15? of an election vear with the term beninnino January is? the foiiowino veer. The State Chairenst may be reappointed i 7 lutysupersc?pt I by the National Chair if the reenactive State Chair is performing hislher duties in a satisfactory marines Section 10.03 Buttes. Chair Legisiative State Chairs duties shall include recruiting new legislative and private sector members, suggesting legisiative task force membership, establishing a state steering committee, planning issue events, and working with the Private Sector State Chair. The Private Sector State Chairs duties shat! include recruiting new private sector members, pianning an annual membership event, and assisting the Public Sector State Chair. . =$ur2erscriPt Seetion 10.04 Raining. Trainino and orientation: The State Chair shall participate in a trainino proorarn For-reacted: Plain-Text, Left of an orientation at the States and Nation Soticv Summit in Washinoton. DC that willinclude a peentooeer w?ma?m Font 11 pt orientation and overview of rates and responsibilities. ?mgr Fmam. M. 11 pt Section 10-95 Sists?hsir A The Sets CherAqrssaentvili inciude a lobsescrinion the Witt de?ne ,r rename Font: Bold I roles and Roles and responsgb?ies witldetine duties relatgi to membershio recruitment. both Duhiic and private. and travel reimbursement fund responsibilities. For appointment consideration hv the National Chair the State Chair must acres to the terms set forth in the State Chair Aoreernent. The National Chair and executive committee wili perform an initiat evaiuatgoe of the State Chair at 90 days and annually thereafter}. . regimes: vain solo Section 10.06 Termination of Term. Shouid the terms of the State Chair Agreement not be met bv the State Chairijfsanna?: horas, Justified the National Chair can remove the State Chair at his or her discretion, ., :N[Formatted: Font: euro F0 teams on Bold Section 10.014 Meetings. State Chairs shall meet at least three (3) times a year in conjunction with the scheduled .rma. . ..- 9? - meetings of the Legislative Nationat Board of Directors as outlined in Article iv Section 4. Section 10.0?5 Eiections. The Chair of the State Chairs and the Private Sector Chair of the State Chairs shall meet at the ALEC Annual Meeting to separately elect a Chair of the State Chairs and a Private Sector -Chair of the State Chairs from their respective members whose duties shall be to preside at their State Chairs meetings. Pursuant to Article V, Section 5.02, the State Chairs shall nominate six members, one of whom shaii be the Chair of the State Chairs, whose names shat! be submitted to the ALEC Legisiative Board of Directors Nominating Committee for consideration as ALEC Legislative Board of Directors. The duty of the Private Sector -Chair of the State Chairs is to assist the Chair of the State Chairs in iundraising and private/public sector recruitment and retention. The Chair of the State Chairs and the Private Sector Chair at the State Chairs may not serve more than two (2) consecutive two- (2) year terms. in addition, the State Chairs shall establish an Executive Committee composed of the following: the Chair of the State Chairs (who wiil Chair the Executive Committee) the Private Sector Chair of the State Chairs, the shall constitute (grounds for i 1) immediate remevat from a ieactersh three designated pubiic sector State Chairs curtentiy serving on the ALEC Legisiative Board of Directors, and three Private Sector State Chairs seiected'by the Private Sector State Chair of the State Chairs. The EXecutive Committee strait meat at the States sad Nation Peiicy Summit, and at the Annual Meeting. Section 10.9.38 Steering Committee. State Steering Committees strait consist of a Legislative State Chair, a Vice Chair from the opposite party, if appropriate, Senate and Hausa Membership Coordinators, and such other members as set forth in strategic ptan. Section 10.1%; State Expense Funds . Att funds for ALEC State Reimbursement Funds shalt be de esrted'in accounts desi hated the ALEC Le istative Board of. Directors. State Chairs are rottibited from Major Donor Program - Membership Board Committee identify 3 or more major individual contributors per state *6 Arizona (Smoldon) a Arkansas (Lamoure'u?x, Faris, Hogue) . a Nevada (Cegavske) I 6 Oklahoma (Banz, Dunlap) .4: Indiana (Frizzell, Buck) . fa Texas (King, Craddick, Biotize?m- i fo? Kansas (Wagle, Merrick, Morgan)- a i?owa(Upmeyer Mertz) a South Carolina (Barfleid) LouiSiana(Harrison, Ellington) Wisconsiankmir) i - a North Carolina (Tillis Moffitt Brubaker) a Virginia (Howell Smith) 0 Utah (Niederhauser) . a Tennessee (McDaniel Todd) 0 North Dakotag'yh'h?12horeson) Ohio(SeitzI 0 Connecticut (Pascopo) Coloradgmadman) newewewwn HH HO 33. 34. 35. as. 37. 38. 39. 4o. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 2013 Prospects HP (dropped) 52 Boeing 53 Home-Depot 54. Allstate 55 BGR Group 56 Eric Group 57 Cassidy Associates 58 The Duberstein Group 59 Akin Gump 60 . Holland Knight 61 . Siade Gorton, LLC 62 . Law Offices of Frederick H, Graefe 63 . Williams Jensen 64 . Lugar Hellmann Group 65 . Fierce, lsakowitz Blalock 67 . DowLohnes Government Strategies 68 . Federal Policy Group 69 . Brownstein Hyatt Farber Schreck, LLP (member) 70. . Peck, Madigan, Jones Stewart 71 . Dutko Grayling 72 . Quinn, Gillespie 84 Associates 74 . Business Roundtable 75 . Aircraft Owners and Pilots Association 76 . Information Technology industry Council 77. . Association of American Railroads 78 . National Association of Home Builders 79. . America's Health insurance Plans 80. . Federation of American Hospitals 81. . USTelecom . independent insurance Agents and Brokers of 82. America 83. Portland Cement Association 84. Consumer Electronics Association 85 Natural Products Association 86 Financial Services Roundtable 87 National Association of Whoiesaler~Distributors 88. Advanced Correctional Healthcare 89. NADCP (Nat'l Assoc of Drug Court Professionals) 90. National Association of Surety Bond Producers 91 institute for Legal Reform (Chamber) 92. Motorola 93 Energi 94 BNSF Rail 95. (Transporation intermedaries Alliance) 96 Surety Financiai Association of America 97. American Trucking Association 98 Alliance of Auto Manufacturers 99. international Sign Association 100. Academic Partnerships 101. Altair Management inc. (lQity) 102. . American Association of Community Colleges . American Public Education, Inc. Amplify Insight . Canvas (Online learning) . Capeila Education Co. . Career Education Corporation . Center for Education Reform . DeVry . Edison Learning . Education Management Corporation . Microsoft . Pearson Higher Education . White Hat Management . Business Higher Education Forum . Hogan 8: Lovells - - 66. john Wileygt Sons, inc. . Texas instruments- . American Council of Trustees Alumni . JWP Civitas Manhattan institute . Federaiist Society . Washington Legal Foundation . Navigators Global 73. National Restaurant Association . Canadian Pacific . CSX . Watco Union Pacific . Motion Pictures Association of America Comcast Consumer Energy Aliiance Association for Unmanned Vehicle Systems international National Association of Manufactuers Communications Frontier Communications . Uni?Vision . Sprint . Trac?Phone Dish Network Apple NTCA The Rural Broadband Association . Expedia Orbitz . Airbnb . Uber Enbridge . Retaii industry Leaders Association Devon Energy . Organization for international investment ConocoPhillips Jim Clark CenterPoint Energy UTC it cDonald's as one Public Service can Traffic ue Cross Biue Shield Brands octer Gamble lan ntran azomcom edtronic ai?Mart ohnson Johnson I Com uters Deere 8: Com Caremark HerCoors ewlett~Packard (HP 8 ess Scripts/Medea a! n5 ene enerai Electric estern Union e135 Merck 523an Bank of America WeHPoint Bristo rs uibb Brown-Forman Com Publix Su Markets GIaxoSmithKline Uniiever] ConocoPhiHips Prodical San Project 10 American Lennie 1 Easiness?! Cooncil Date: Dean i am writing to ask for your support of the State Reimbursement Fund of the American Legislative Exchange Council (ALEC). ALEC is the nation?s largest nonpartisan, individual membership association of state legislators, with over 2,000 members. in addition, with over 200 corporate, non?profit, and private foundation members, ALEC is one of America?s most dynamic publioprivate partnerships. We have consistent participation by legislators in ALEC. Members participate in one of the eight Task Forces ranging from: Energy, Environment and Agriculture to international Relations to Tax and Fiscal Policy to Communications and Technology. These Task Forces commission" research, publish issue papers, convene workshops, and serve as clearinghouses of information on free market policies in the states. The Task Forces identify issues and then respond with common sense policies. i believe participation in this helps legislators understand the impact that state and national policies have on our businesses. Given the tough competitive environment that businesses operate in, the legislative membership needs this knowledge more than ever. Your support of the State Reimbursement Fund is critical, enabling legislators to join and attend the annual meetings. Please note that 100% of the raised funds are tax-deductible and are for ALEC expenses directly related to education efforts for legislators. Your generous contribution of $500, $1,000 or $2,000 is much appreciated. As a member of the business community, we hope you support these common goals to enhance a common vision of sound state policies, highlight our region's interests and flourishing economy, and promote the tree flowing exchange of ideas between the public and private sectors. Please fill out and fax the attached form to ALEC at (703) 373-0927. For more information about ALEC membership, please contact the Membership Department at (571) 482?5051 or you can contact me at {Phone/Email}. Sincerely, SECTOR STATE CC: American Legislative Exchange Council Attn: Brendan Barber 2900 Drive, Suite 600 Arlington, VA 22202 bbarberQalecprg Office: (571) 482?5013 Fax: (703) 373-0927 American Legislative Exchange Council 2900 Brive, Suite 500 Magician, VA 22202 - Tel. {703) 336933 - Fax: (703} 3?3-8927- wwalecorg ll ALE - Membership Statisctics Private Public Total Overall Retention Rate 2009 224 1,661 1,885 77% 2010 228 1,760 1,988 1 75% 2011 280 2,200 2,480 71% 2012 241 2,010 2,251 85% 2013 214 1,810 2,032 75% Dropped/Term I Attrition Rate 2009 1 4?5 94 139 23% 2010 31 232 263 25% 2011 20 76 96 29% 2012 68 1273 241 15% 2013 38 482 521 25% New Growth Rate 2009 25 262 287 n/a 2010 35 199 234 5% 2011 72 516 588 17% 2012 29 88 1137 2013 15 264 275 of The Trade ower Loan and Associates Greater i?ersoneli inc. Saintions of - International Div. Fordham Institution Business of Members of Trustees 8: Alumni a Gold Inc. Association inc. institute inc. Foundation Institute Blue Shield Ca re of US Center for Association EMD Serono Lowe?s Nardisk for Free Inc. Locke Foundation Force 2 of PBM with to to Education with new contacts to see what issues in because bill did not the task force #101? want 10 SPN members? SPN did not renew with SPN members - would like to ioin again if can out of ALEC because of education issue no on issue us do not want to renew on for issue not cutbacks to reach contact; history of being late on with new contacts cu?B" dif?cult to get a hoid of: possibly did not because only interested in diabetes reiated with BCBS funds of SFN members - would like to join again if ALEC Membership Totais and Percentages of ALEC Membership in State of Legistators Members Legislature 12% 2038% 1002013 Foundation Support BUDGET Organization Date Amount Granted Purpose Status Gleason Family Foundation Apr. 2013 $45,000 Education Reform Pending Searie Freedom i'rust May 2013 $175,000 Rich States Poor States Pending Koch/Ciaude Lamb iune 2013 $150,000 Rich States Poor States Pending Lynde and Harry Bradley Foundation 2013 $75,000 Center for State Fiscai Reform Pending Allegheny Juiy 2013 $45,000 Education Reform Pending NEW $75,000 Genera! Pending GOAL $555,000 GRANTS RECEIVED Organization Date Amount Granted Purpose Status Donor Capitol Fund February 2013 $25,500 General Support Received $25,500; PROPOSALS Organization Date Requested Purpose Status Donor Capitol Fund February 2013 $25,500 General Support Received Sunmark Foundation Mar. 2013 $12,500 Genera! Operations Denied Jacquelin Home Foundation Mar. 2013 $50,000 Education Reform Denied - immigration Adolph Coors Foundation Mar. 2013 $100,000 Center for State Fiscal Reform Pending Gleason Famiiy Foundation Apr. 2013 $75,000 Education Reform Pending Searle Freedom Trust May 2013 $135,000 Rich States Poor States Pending Searle Freedom Trust May 2013 $100,000 Center for State Fiscal Reform Pending Vernon K. Kriebie Foundation May 2013 $20,000 Affordable Energy Under Attack Pending W. David Stedman and Sarah White Stedman Foundation May 2013 $10,000 General Operations Pending Dickson Foundation May 2013 $10,000 General Operations Pending Edward A. and Catherine L. Lozick Foundation May 2013 $5,000 General Operations Pending Anschutz Foundation May 2013 $25,000 General Operations Pending Foundation May 2013 $10,000 General Operations Pending Lynde and Harry Bradley Foundation July 2013 $125,000 Center for State Fiscai Reform Pending Koch/Claude Lamb June 2013 $200,000 Rich States Poor States Pending Allegheny Juiy 2013 $50,000 Education Reform TOTAL $953,000 CASE STUDY ALEC Office Space Case Study ALEC was occupying 14,206 square feet of space at 1101 Vermont Avenue in the heart of Washington, DC. The ALEC board determined the of?ce space did not meet the design and functionality needs of the organization. PROCESS ALEC success?illy secured a subtenant,lMPAQ International,headquartered in Columbia, is a public policy ?rm that applies state?o?the-art quantitative and qualitative research methods to evaluate and research the effectiveness of domestic and international programs and policies. The sublease with IMPAQ runs through the remainder of the original prime lease term of December 31, 2017. RELOCATION PROCESS . ALEC initiated the search for new of?ce space in December of 2012 and after evaluating multiple search criteria, ALEC determined 2900 Drive City) as the best possible relocation alternative to meet all its?requirements. . After extensive negotiations with the ownership of 2900 Drive, ALEC secured a per square foot rate of $32.00. Simultaneously, ALEC worked closely with its architect in planning the new space design and configuration. ALEC was able to obtain a 16% reduction in total space occupied through the implementation of an ef?cient and creative design process. Fmancially, the terms negotiated have allowed the organization to successfully reduce the annual occupancy expense by more than 21% for the remaining lease term through December 31, 2017 at Vermont Avenue. Thereafter, the overall reduction in occupancy expense will increase to more than 48% for the life of the new lease at 2900 Drive. The total concession package negotiated was far more than $1 million. Concessions included 10 months of free rent valued at approximately $320,000 along with a tenant improvement allowance of approximately $850,000. This allowance enabled ALEC to fully construct build new space as well as purchase new furniture for the entire staff. ALEC was also able to reduce square footageby designing and laying out space specifically to meet the if organization?s needs. ALEC is very proud of its new home and its ability to maximize space efficiencies increasing space utilization and dramatically minimizing overall occupancy cost. MGA, Inc. 2600 Virginia Ave NW, Suite 510 Washington,D.C. 20037 202.706.6200 wmv.mgaco.com American Legislative Exchange Council Statement of Financial Position As of June 30, 2013 2013 ASSETS Cash and cash equivalents 2,276,144.40 Contributions receivable, net 1,622,756.32 Other receivables 8.80 Prepaid expenses 187,685.98 Deposits 31 ,81 0.67 Property and equipment, net 1,106,311.50 TOTAL ASSETS 5,224,717.67 LIABILITIES NET ASSETS Accounts payable and accrued expenses 346,829.79 Deferred program revenue 96,109.09 Deferred member dues/registrations 79,315.07 Deferred Legacy clues 174,984.84 Capital lease obligations 46,990.30 Deposit - sublease 44,985.66 Deferred rent liability and improvement allowance 1,478,583.43 TOTAL 2,267,798.18 NET ASSETS Unrestricted 2,447,267.85 State Reimbursement Accounts 996,420.68 Change in Net Assets 986,769.04) TOTAL NET ASSETS 2,956,919.49 TOTAL AND NET ASSETS 5,224,717.67 American Legisia?ve Exchange Councii Statement of Activities For the Six Months Ending June 30, 2013 YTD June 2013 Actual vs. Budget 2013 Annual! YTD 08030113 Budget Variance Budget 057310112 Revenue Gains and Other Supper: Conference advertising - - 3,300.00 Future conferences Online Coni?bu?ons 533 00 5 000. 00 (4,437.00) 10, 000. 00 7,935.00 Direct Mail 54, 994. 00 (8,006.00) 125, 000. 00 I102 841 00 3? 4_ Wm (W {7 5,000.00? 443, 000. 00 Legacy revenue Future 030309! support 3,300.00 3, 30 .00 Rental income. 79, 433.54 33,000.00 (3,541.40) 332,000.00 Publications 343.00 1,260.00 (917.00) 2,500.00 Total revenue, 931213.300 other support 0 2,803,383.17 3,936,285.00 5 (1,132,901.83) 8 7,922,654.00 3,831,003.31 LESS Revenue moved to 2012 5 (247,000.00) 3 - (247,000.00) 5 - - Totai Revenue 2,556,333.17 3,936,285.00 (1,379,901.83) 7,922,654.00 3,891,003.31 Expenses 53* M3 7, FECA Employer 83, 503. 32 (2,129.21) 171,231.48 82, 293. 04 DC Unempfoyment taxes 5,985.74 5,346.09 539.74 5,345.00 5, 298. 91 37,300.00 Employee bene?ts 7,431.04 (968.96) 6 ?088 Temporary Services Artwork graphics 3-. . . .. .0. . 5,70057.4% 3. 0730:9559?! 614. . Conference fees 6,182.49 15,000.00 (8,817.51) 1:20, 600. 00 41,110.00 Dues Memberships Publi?: reia?ene, advertising 2,318.00 5,150.00 (2,882.00) 5,150.00 - Security - 1,300.00 (1,300.00) 1,300.00 3,207.20 Sub3criptiens 3: research data 36,840.04 30,535.00 6,305. 04 58,285.00 14,058.21 WW . .37? .. WW3- WW Sesivery costs 10,442.99 9,355.00 537.99 20,735.00 19, 920. 53 i Telephone 43,504.50 41,740.00 1,764.50 121,870.00 35,775.23 Equipment 133330301019 2,659.03 2,839.00 20.03 9,720.00 3,081.84 2 Equipment maintenanee 9,722.16,760.00 8,686.56 Maintenance, repairs 2, 370. 0.0 0.4Auto 8. 009 rentai 1,630.77 - 1,630.77 13, 000. 00 . Awards 328.87 - 323.37 13,000.00 19.43 Audio visual renzai 19,219.24 24,100.00 (4,880.76) 256,600.00 27,992.33 Accounting fees 33,661.89 41, 925. 00 (8,263.11) 53,610.00 36,899.66 2? Liability property insurance 13,246.11 1?3, 260. 00 (13.89) 26,500 00 13 197 . 74M: . g, asp. - . 4} ?7 1 Deprecl??on expense interest Credit ca discounts Bank semce charges Staff Dew pmeot Ame): Amex - June "rota: Expenses Net Wow/(Loss) l1) Conferen?to sponsorship - menses Outstanding 56,169.92 2,951.32 24,185.01 5,878.03 59,490.00 2,420.00 27,500.00 1,500.00 1 000 00 (3,320.03) 531.32 (3,314.99) 4,378.03 (1 ?00.00) 119,000.00 4,050.00 57,500.00 3,800.00 1,500.00 59,955.63 3,033.56 34,095.79 1,613.94 3,008,793.21 3,378,726.14 (369,932.93) 7,917,079.06 3,551,890.25 8,100.00 5 8,100.00 26,109.00 - 26,109.00 26,109.00 26,109.00 3,043,002.21 3.3783263 4 (335,123.93) 7,917,079.06 3,551 ,890.25 (486,619.04) 557,558.86 (1 344,177.90} 5,574.94 339.1 1 3.06 Total Annual {Meeting sponsorships ralsedfmvoiced for 2013 is $402,500 $161000 FY a $569,500. As of June 2012, Total Annual Meeting sponsorship ra sed?nvoiced was $771502 $387,500 FY $1,164,502. Tom! SNPS Sponsorship raised?nvoioed for 2012 was $25,600. (2) Conferen?e: registrations - Registrations NE week prior to meeting: 2013 Chicago: - 1.356 2012 Salt Lake - 1.224 2011 New Orleans -1,854 2010 San oiefg - 1.418 2009 Georgia} 1,371 Conferenoe- Exhibitors? Total exhibitors 2013 - 42 Total exhibiods 20:2 - 44 General suilpon. Budget as of 630/13 Actual as 0f 600113 Variance Renomls (leis? attn'?on) 79 55 -24 Non-Pm?tReh-awals 18 13 -5 Board 5 4 -1 New Members 31 -23 Attrition as of me 30, 2013 36 vs. 25 in 2012. (5) Legislativo Dues - Total members upl(down) Legisialive Re'rewals were slow to renew the ?rst two months 0? the year as renewal no?ces were not mailed ?moty. Notices were mailed in May and are matrontly being followed up 3y statf. Total Legislative members as of 81212013 were approximately 1,810. (6) Task forces: I g, Task Force Summit - Total revenue raised for Spring Task Force 2013 . $311,000 (50,500 transferred to OK State Reimb Acct) vs. $225,000 Totai registration $101,275 vs. Budget of $100,000 Totai revenue raised for Spring Task Fame 2012 - $315,000 Toto! registtation $149,150 vs. Budget of $80,000 Registration - 2013: 529 2012: 613 2011: 515 2010: 300 (8) Scholarship contributions - Not a budgeted item. Advertising - Lack of deveiopment department has caused sales to below. (10) Miscellaneous revenue - Includes Soiary reimb for CFK Assoc program and $5k toward Open House (1118aia?es . Tumouer in Deveiopment department. Positions ?tted in Apnutday 2013. "total of 12 new hires in 2013. (12} Consuitant fees AdmimBoard - $19,383.21 Conferences - $63,224.74 Fundraising $62,945.43 Grants - $20,080.31 Programming - $32,375.49 Pubiic Affairs - $118,000 (13) Computer services - Transition to new database (60k for licenses for the year pins 15k to do the transition) (14} Honomria writers fees ALEC continues to look for ways to reduce costs. ?1 5) Postage . Taming. Muttipie projects have also fatten betow eudget. {16) Printing publications - Timing. Mui?pie projects are in process and have not yet been oompieteci. (17} Traveimieats and Lodging - Did not attend as many membership events as anticipated during the ?rst part of the year due to insuf?cient sta?ing. Aiso did not have Education Academy?as projected {76k}. Remainder is Timing. (18} Of?ce Supplies expense- Tirning. inciudes 12,500 contribution to Donors Trust, 5k Conixibution to 8080 and 28k Moving expenses. (19) Legal fees - Need to reaiimte Jefferoson Progeci. Muitipte states have had issues within tite states that have required extra attention (Wt. MI, MN) (29) Rent - Budget was ptepered with rent atiocated for whole year to both spaces. Shoutd have oniy been for part of year. Tribal Affairs Issue Areas: State-Tribal relations and coogaeration Groups that work on: N61. Pros: 33 states have Native American tribes and a majority of states have standing committees and commissions on lyndian affairs. Cons: There may be little to no private sector funding for this issue. in addition there has b?en scandal in the past with individuals like Jack Abra moff who lobbied on behalf of lndian Trib?s. Wavs to Startup: This could easily be added as an issue area to international Relations Tasll Force. '1 a Potential Members: individual Native American Tribes Scienoe, Technology, Education, Mathematics (STEM) issue Areas: Education Reform *ublic?Private Partnerships Idvancing the United States economy by creating science, technology, engineering, and mathematics jobs Grogps that work on: AAES, America, StemEd Coalition, STEM): Pros: Cons: .4 his Task Force would have a strong potential for new membership opportunities and stakeholders 1cluding legislators and education leaders an! 1 his Task Force would expand the bandwidth of work on education policy and create a greater eagacity for entrepreneurial and innovative model legislation ?is. membership :5 already comprised of public and private members who are involved and/or already oing work on STEM It.? Vould create discussion between the public sector, private sector, and state legislators to meet the needs If the people and the businesses who will employ them ILEC might face challenges drafting model legislation that is appealing to both schools and students Ways to Startup: This project twill be run through the Education Task Force and may start as a subcommittee as there are many interested curr?nt and prospective ALEC members. Potential Members: it Energy 0 Exxon* Dow itlIgroSciiaocesin Shell Oil Con?pany* Devon Energy Corporation? 0 American Chemical Society a Technology 0 Microsoft* 1 0 Texas Instruments 5* Education 0 Business Higher Education Forum 0 John Wiley&50n5,lnc. A?erschoolalliance *Denotes current ALEC membeir Hospitality 8: Tourism Issue Areas: 0 Hotel taxes and wage 8: labor laws 6 Cruise line laws and regulations a State and local tourism promotion 6 Passenger rail and Bus issues Groups that work on: ALEC had a Trade 8: Tourism Task Force from 1999-2004. Pros: The travel and tourism industry in the United States generated nearly $1.4 trillion in economic output in 2011. This activity supported 7.5 million US. jobs, and accounted for 7 percent of all US. exports; One out of every 18 Americans works, either directly or indirectly, travel or tourism?related industry. In 2010, revenues from U.S. travel and tourism represente 2.6 percent of gross domestic product. Cons: Individual companies that join will be very susceptible to dropping ALEC if there is publi pressure. Also many of these groups have little or no history with ALEC. Ways to Startuo: Either stiartup as a separate initiative or task force. It could be added to International Relations Task Force. The Commerce Task Force currently has too many separat initiatives to add a new one. Potential Members: Expedia Hospitality trade associations American Hotel 8: Lodging Association Council of Hotel and Restaurant Trainers (CHART) Hospitality Financial Tedhnology Professionals (H FTP) Hospitality Sales and Marketing Association International (HSMAI) International Society of Hospitality Purchasers (ISHP) National Tourism Association Individual hotel companies, Hyatt Airlines and their trade association Individual cruise lines and their trade association Rail and Bus Companies ina L2. FD Financial Services issue Areas: 9 3 Banks and Credit Unions Credit Card laws Payday Lending Groups that work on: NCSL, CSG Pros: assoc The Securities and Financial Markets Association is for example one of the largest trade ations in the nation and is not a member of ALEC. Many states have finance committees that deal with banking and loan issues. Cons: financ are a Wave could: Peter Many of these companies failed to renew at ALEC due to controversy. Removing :ial services may also threaten the funding of the GED task force. Finally, these groups threat to leave if we have another financial recession. to Startup: The CIED Task Force currently has a Financial Services subcommittee, which be expanded into a Task Force. tial Members: Curr? "t Financial subcommittee members: Visa, American Bankers Association, CUNA, Mortgage Bankers Association, CFSA New (nembers: Americaa Express, MasterCard, SFMA, Bank of America, Wells Fargo Gaming issue Areas: 3 Online gambling . Sports Betting 9 Gambling addiction programs 9 State gaming and casino laws Groups that work on: NCSL, Competitive Enterprise institute, Rstreet, Pros: In 2012 gaming retenue exceeded 537 billion. This industry is very large and regulated by the states. We believe they would have a strong interest in ALEC. in addition, a number df groups including C56 and NSCL currently work on this issue. Cons: According to the gaming industry contributed directly over $64 milli on in the 2012 elections and $32 million in lobbying expenses. Casinos spent over $87 miilion ir Maryland last year on a gambling ballot amendment. This industry could potentially out fund other industries at ALEC. iAiso for many people this will appear like a social issue, which ALEC has in the past avoided. Ways to Startup: This cduid be made a separate task force or initiative. it could also be started in a limited way by allowing a task force like Communications and Technology to we on internet gambling. Potential Members: Casinos Las Vegas Sands, MGM, Caesars, Penn National Gaming, Resorts. Trade Association American Gaming Association National lndian Gaming ?ssociation Horseracing Industry gk Current Transportation subcommittee members are Macquarie Capital, UPS, Fed Ex, Reason Foundation, National Association of Water Companies Members that could rejoin: American Trucking Association, BNSF Rail, American Rail Association, Aircraft Owners and Pilot Association, Cintra, Transurban, and international Air Transport Association. New members: The American Road and Transportation Building Association, American Petroleum institute and individual airline and rail companies. (SommercialsE Residential, industrial Development and Transportation issue Areas: 9 Landuse and Environmental Law 9 Zoning a Real estate laws 9 Transportation Funding a Rail issues a Infrastructure 6 Aviation Issues a Public Private Partnerships Groups that work on: CSQG, NCSL, Heritage Foundation Pros: 3 Many liberal policies like smart growth are harming the housing industry. ALEC previously had a task force in the mid-1990?s that focused in part on real estate. Many of their issuefs align ideologically with ALEC. ALEC previously had a Trade and Transportation Task Force and currently has several transportation members. Future member growth may be dependent on ALEC investing more time and resources on this issue. Cons: is Many zoning and land?use decisions are decided locally and not by state governments a The housing industry is still recovering from the recession and may not have money to join ALEC. ALEC does not currently have a great deal of transportation members. Ways to Startup: This could be added to either the EEA Task Force which does [and use issues or the GED Task Force which handles economic development. Potential Members: Nationai Realtors Association, National Association of Homebuilders, American Builders and Contractors, large national home builders like Ryan homes, Beezer, Centex, and Buzzuto, and commercial development; companies. Halliburton, Southern Companies, Zachry, Skanska, Miller and Long, Starcon, Cianbro, and Bovis Lend Lease. issue Grou Pros: Agriculture, Forestry and Land Use Task Force Areas: Farming Livestock Forestry Land use as that work on: NCSL, (256 A lot of our public sector members are from rural districts and work In agriculture A lot of our public sector members would like to see more agriculture work done at ALEC A larger more focused task force could draw more agriculture private sector members to pa rticipater This Task Force would seem to have a good chance to be financially successful ALEC shies away tram animal welfare' Issues due to PR reasons. This means a huge untapped private sector prospect base Is untapped and will remain so. Agriculture :5 ofteIi not free market oriented and Is dependent on subsidies and the Farm Bill. This makes advancing policy difficult. Not impossible but difficult. Ways to Stertup: The EEIA Task Force currently works on agriculture Issues. This could be split into a new Task Force. The current EEA Task Force Director could manage both for the time being. PotenItial Members: Current Members: JR Simplot BIO CropLiie America DowAgro Sciences Forestry Related members, American Forest and Paper Association and international Paper New Meat industry. members Farming equipment companies Fertilizer Companies Pesticide Companies producers like Tyson Chicken, National Milk Producers Federation and American Feed