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 international junkets from a secure of lobbyists and company patrons.

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

Driving the information: Chris Toth, who stepped down as govt director of the Nationwide Affiliation of Attorneys Basic 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 Basic, has grown from a regional group to 1 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 lawyer normal enviornment, significantly involving entities which can be being investigated and / or sued by AGs,” however he didn’t title any particular firms or investigations.
  • The AGA “appears to exist for no different purpose than to supply 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 while you go on a delegation, some lobbyist or company is paying for that. When you might 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 consists of 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 eventually week’s AGA assembly. His panel on “evolving litigation developments” examined how “attorneys normal and companies can navigate these points collectively.”
  • It was one in every of numerous panels that introduced collectively state AGs and executives at firms that help AGA financially.

By the numbers: Monetary filings from the Convention of Western Attorneys Basic, which says it fashioned AGA to increase 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 vital roles in supporting our nation’s attorneys normal, and our constituents profit from the organizations’ ongoing progress and energy. “
  • NAAG declined to remark additional on the matter.

The way it works: AGA’s membership is tiered, in line with an inner report obtained by Axios. In 2020, “legacy” donors, its prime 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 resort reservations on the group’s retreats.
  • Entry to AGA conferences, the place firm executives can meet state AGs and talk about main coverage points, is accessible solely to the group’s donors, in line with that report.
  • Programming supplies for AGA’s annual assemblywhich came about final week in Solar Valley, Idaho, listed greater than 200 firms, commerce associations and lobbying corporations throughout AGA’s 10 sponsorship tiers.

Sources conversant in each AGA’s and NAAG’s work say the previous has developed a status 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 in regards to the journeys, all in regards to the expertise, all in regards to the enjoyable,” a former senior aide to 1 member AG instructed Axios. “They have been beginning to encroach on the NAAG area, attempting to be the choice to NAAG, in that it was this bipartisan group, however they had been the extra enjoyable form of group.”

Usually that entails junkets to international nations, the place AGA has arrange change packages with senior legislation enforcement officers to “facilitate a cooperative relationship with authorities companions who share the objective of strengthening authorized techniques and the Rule of Regulation,” because the AGA spokesperson put it in an emailed assertion.

  • Its monetary patrons have a hand in that as nicely. Three sources conversant in the journeys instructed 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 shoppers, in line with international agent filings. His work has centered on arranging journeys to these nations by US state and native authorities officers, a standard observe for international governments seeking to construct relationships with American policymakers.
  • Smotkin didn’t reply to inquiries about his involvement.


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