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Desperate for new revenue, Ohio lawmakers introduced legislation last year that would make it easier to recover money from businesses that defraud the state.
It was quickly flagged at the Washington headquarters of the American Legislative Exchange Council, or ALEC, a business-backed group that views such “false claims” laws as encouraging frivolous lawsuits. ALEC’s membership includes not only corporations, but nearly 2,000 state legislators across the country — including dozens who would vote on the Ohio bill.
One of them, Bill Seitz, a prominent Republican state senator, wrote to a fellow senior lawmaker to relay ALEC’s concerns about “the recent upsurge” in false-claims legislation nationwide. “While this is understandable, as states are broke, the considered advice from our friends at ALEC was that such legislation is not well taken and should not be approved,” he said in a private memorandum.
The legislation was reworked to ease some of ALEC’s concerns, making it one of many bills the group has influenced by mobilizing its lawmaker members, a vast majority of them Republicans.