State AGs’ company money cow

The AG Alliance, a rising group of state attorneys normal, is drawing criticism for courting sponsorships for lavish conferences and overseas junkets from a steady of lobbyists and company patrons.

Why it issues: State AGs have immense affect over public security and shopper choices with enormous monetary implications for company America. Some corporations are ponying up tens of 1000’s of {dollars} to get unique entry to officers who may sooner or later be requested to research or prosecute them.

Driving the information: Chris Toth, who stepped down as government director of the Nationwide Affiliation of Attorneys Normal on June 1, contended in his retirement letter that the AG Alliance – a competitor – is promoting entry to lobbyists and company patrons.

  • The AGA, which started because the Convention of Western Attorneys Normal, has grown from a regional group to at least one that represents AGs in 45 states, 4 US territories and the District of Columbia.
  • Toth wrote that he is “more and more alarmed on the rising affect of lobbyist and company cash within the legal professional normal area, significantly involving entities which might be being investigated and / or sued by AGs,” however he didn’t title any particular corporations or investigations.
  • The AGA “appears to exist for no different purpose than to offer entry by such actors to attorneys normal” at common conferences, the place donors “primarily purchase programming,” he alleged.
  • “AGA is overwhelmingly depending on company and lobbyist cash for its actions. Which means once you go on a delegation, some lobbyist or company is paying for that. When you could have your room and airfare paid for, some portion of that’s coming from somebody you might be investigating or suing. “

Between the strains: AGA contains attorneys normal from each main events, however its affect has swelled lately as some Republican AGs – together with in Alabama, Missouri, Montana and Texas – severed ties with NAAG over what they described as a leftward drift.

  • Texas AG Ken Paxton spoke ultimately week’s AGA assembly. His panel on “evolving litigation traits” examined how “attorneys normal and companies can navigate these points collectively.”
  • It was one in every of quite a few panels that introduced collectively state AGs and executives at corporations that assist AGA financially.

By the numbers: Monetary filings from the Convention of Western Attorneys Normal, which says it shaped AGA to develop its mission past Western states, present a deep reliance on donor funds.

The intrigue: In response to a request for remark, the AGA referred Axios to a press release from NAAG’s president, Iowa AG Tom Miller, who distanced his personal group from Toth’s remarks.

  • “They had been his statements alone and so they weren’t made on behalf of NAAG,” Miller mentioned. “Each [AGA and NAAG] play necessary roles in supporting our nation’s attorneys normal, and our constituents profit from the organizations’ ongoing development and power. “
  • NAAG declined to remark additional on the matter.

The way it works: AGA’s membership is tiered, in accordance with an inner report obtained by Axios. In 2020, “legacy” donors, its high tier, paid $ 50,000 for perks together with “entry to invite-only occasions.”

  • Decrease tiers additionally get advantages, corresponding to promotion in AGA occasion supplies and early entry to and precedence lodge reservations on the group’s retreats.
  • Entry to AGA conferences, the place firm executives can meet state AGs and focus on main coverage points, is out there solely to the group’s donors, in accordance with that report.
  • Programming supplies for AGA’s annual assemblywhich came about final week in Solar Valley, Idaho, listed greater than 200 corporations, commerce associations and lobbying corporations throughout AGA’s 10 sponsorship tiers.

Sources aware of each AGA’s and NAAG’s work say the previous has developed a popularity in AGs’ places of work as a extra opulent competitor that is identified to wine and dine state officers and their staffers.

  • AGA “is all concerning the journeys, all concerning the expertise, all concerning the enjoyable,” a former senior aide to at least one member AG advised Axios. “They have been beginning to encroach on the NAAG house, making an attempt to be the choice to NAAG, in that it was this bipartisan group, however they had been the extra enjoyable type of group.”

Usually that entails junkets to overseas nations, the place AGA has arrange alternate applications with senior regulation enforcement officers to “facilitate a cooperative relationship with authorities companions who share the objective of strengthening authorized programs and the Rule of Legislation,” because the AGA spokesperson put it in an emailed assertion.

  • Its monetary patrons have a hand in that as nicely. Three sources aware of the journeys advised Axios that AGA delegations to Morocco and Qatar had been organized in collaboration with advisor Rick Smotkin, whose agency is listed as an AGA sponsor.
  • Each of these nations’ governments are Smotkin purchasers, in accordance with overseas agent filings. His work has targeted on arranging journeys to these nations by US state and native authorities officers, a standard apply for overseas governments trying to construct relationships with American policymakers.
  • Smotkin didn’t reply to inquiries about his involvement.


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