At last week’s annual meeting of the American Legislative Exchange Council (ALEC), a model state bill aimed at preventing the creation of Natural Asset Companies (NACs) was advanced out of committee. This marks the initial step in assisting states to counter future efforts to establish NACs.
The model bill was spearheaded by Craig Rucker, President of the Committee for a Constructive Tomorrow (CFACT). Former Wisconsin State Representative Frank Lasee crafted the model bill using language from a bill filed in Nebraska and the bill filed by U.S. Representative Mark Green (TN-07) and Representative Harriet Hageman (WY-AL) titled the “Protect America’s Lands Act.” The model bill was introduced at ALEC by South Dakota State Representative Julie Auch.
Both Craig Rucker and Rep. Auch are members of American Steward’s “Property Rights Task Force” and were instrumental in the defeat of the NAC proposed rule at the Securities Exchange Commission earlier this year.
ALEC is America’s largest nonpartisan, voluntary membership organization of state legislators dedicated to the principles of limited government, free markets and federalism.
“Model bills are important as they are sent, after approval by ALEC, to conservative and libertarian-leaning legislators in all 50 states to be considered for submission in their legislative bodies,” commented Rucker. CFACT has worked with ALEC members in the past and has successfully helped get key bills passed in numerous states.
The CFACT model NAC bill is titled the “Natural Asset Company Prohibition Act.” It was designed to stop companies and countries (some foreign, including China) from profiting through the purchase and locking up U.S. lands for no meaningful purpose other than to stop farming, ranching, or resource extraction. CFACT’s “Natural Asset Company Prohibition Act,” if ultimately adopted by numerous states, will serve as a disincentive to create and operate such NACs in important regions of the USA.
Although the bill passed out of ALEC’s Environment, Energy and Agriculture Task Force with unanimous Member consent, it was not without opposition. The Property and Environment Research Center (PERC) along with the Washington Policy Center opposed the measure.
