I've been hearing about ALEC for quite a while. It's probably fair to call them progressives' boogey-men, and certainly fair to call them corporate welfare lobbyists.
This post from kos illustrates a fundamental problem with how ALEC is set up, though. To wit, they are a 501(c)(3) nonprofit organization, which organizations are not allowed to influence legislation. ALEC, by all accounts, has not only been trying to influence it, but has actually written model bills that have been passed in many states.
I'd certainly like to see them investigated, and, if reasonable (and it certainly sounds like it is), prosecuted for what they're doing.
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