Blog ››› ››› BRIAN POWELL
Earlier this month, Minnesota Gov. Mark Dayton (D) vetoed a bill that would curb the ability of asbestos-exposure victims to recover losses from some of the companies that are legally responsible for their suffering. Michigan Gov. Rick Snyder (R) approved a similar bill last week, joining Arizona, Idaho, and Utah, which all passed laws limiting corporate liability for asbestos-related claims in March. In recent years, these kinds of laws have passed in fifteen other states as well.
The rash of eerily similar bills appearing everywhere at once is not a coincidence. The legislation is a product of teamwork between the now-infamous American Legislative Exchange Council (ALEC) and Crown Holdings, Inc., a Fortune 500 company that has spent the better part of the last decade trying to legislate its way out of compensating cancer and mesothelioma victims who were exposed to asbestos by a company they purchased in 1963.
Despite this remarkably successful multi-state campaign to absolve a single corporation of liability to the detriment of thousands of suffering Americans, the ALEC/Crown crusade has been a quiet one, thanks to state media institutions that have failed to provide meaningful coverage of the issue (or, occasionally, failed to cover it entirely). As a result, important laws that profoundly affect the lives of many voters are being approved without serious public consideration.
ALEC Meets Crown Holdings
Philadelphia-based Crown Holdings began its campaign to eliminate its asbestos liabilities through legislative action as early as 2001, when it spent $100,000 to influence legislators in its home state of Pennsylvania. Despite originally failing early in the year, the asbestos measure was resurrected successfully in late 2001 as an amendment to another bill. The move was led by State House Republican leader Rep. John Perzel, who has subsequently received tens of thousands of dollars from Crown Holdings over the past decade.
Perzel was awarded "State Legislator of the Year" from ALEC at the end of 2001. ALEC's executive director hailed Perzel as "a leader who truly personifies the Jeffersonian principles of liberty, limited government, and free-markets." But Perzel is now in state prison, after being convicted this year of helping to divert $10 million in public funds toward Republican campaigns for re-election.
Perzel's 2001 sleight-of-hand maneuver to resurrect the defeated asbestos liability provision is still being felt. With the momentum of a Pennsylvania victory under its wings, Crown Holdings, with ALEC's help, would successfully push identical legislation in 19 other states while employing a strategy of spending big on lobbyists and political contributions.