Senate Committee advances gambling bill
On Wednesday, the Alabama Senate Tourism Committee voted to give a favorable report to a constitutional amendment allowing gambling establishments in Greene County to have historical horse racing gambling machines. Senate Bill 324 (SB324) is sponsored by State Senate Minority Leader Bobby Singleton (D-Greensboro). “This is a constitutional amendment,” Sing. “By rule 50, this has to be approved in both the Local Legislation Committee and the Tourism Committee. This has to do with “Racing and Parimutuel for Greene County.” “The Greene County Racing Commission asked me to carry this bill,” Singleton said. This will “add in historical horse racing at one or more tracks in the county.” Greenetrack in Greene County has been accused of illegally operating electronic gambling machines. The track unsuccessfully argued in court the machines were actually electronic charity bingo machines. “This bill has nothing to do with bingo in the county at all,” Singleton told the committee. A short public hearing was then held. Drusilla Jackson said, “I basically am in agreement with Senator Singleton with the bill, but the bill I came to ask you about is with the bill dealing with the midwives. This bill needs to be coming back to the floor. We are a rural county. We do not have a hospital that delivers babies in fifty miles.” Sen. Randy Price (R-Opelika) said, “That bill has been sent to Health as I understand it.” Attorney Eric Johnson said, “This bill is a very dangerous bill.” “It is a computer machine that will be doing some kind of historical racing,” Johnson said. “He does not have to pick a race. There is no skill involved in that.” “With this constitutional amendment, Greene County will have unlimited gambling on what they call parimutuel machines.” Stephanie Holden-Smith is the President of the Alabama Policy Institute. President Holden-Smith spoke against the bill, “It actually expands the definition of parimutuel betting.” Singleton said, “We have an attorney general’s opinion that goes back to Attorney General Pryor,” Sen. Greg Albritton (R-Atmore) said, “I am not going to fight or stand in the way, but I have got some statements to make when it gets to the floor.” The Tourism Committee voted to give the bill a favorable report in a 12 to 0 vote. Albritton added, “I would sure be nice if we could get that same vote on a much bigger type of gambling bill.” SB324 could be considered by the full Senate as early as Thursday. Thursday is legislative day 26 of the 2023 Alabama Regular Legislative Session. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Alabama Senate passes bill to raise cap on the Alabama Accountability Act
On Tuesday, the Alabama Senate voted to raise the cap on the money that can go to the Alabama Accountability Act (AAA). The Alabama Accountability Act was passed in 2013 to allow parents whose children are zoned to Alabama’s worst-performing schools to choose to apply for a scholarship to go to another public school or a private school. That act is currently capped at $30 million. This legislation would raise it to $40 million next year, and if specific targets are reached in coming years, that could increase to $50 million. Potentially the cap could increase to $60 million over six years. Senate Bill 263 (SB263) is sponsored by State Senator Donnie Chesteen (R-Dothan). SB263 also raises the number of Alabama students who qualify for scholarships to 250 percent of the poverty line. That would be slightly higher than the median income in Alabama. Under the existing rules, only students zoned to the worst six percent of schools can qualify for scholarships to go to a private school or another public school. The legislation would also rename those failing schools as priority schools. Chesteen said that in the old bill, students from just 79 failing schools can apply for the scholarships. This would open it up to students from a school with a D or an F on its report card – 212 schools. SB263 would open up to 25% of the scholarships for students who live outside of those targeted D and F scoring schools if they meet the poverty thresholds. Sen. Bobby Singleton (D-Greensboro) said, “I think this bill takes care of the middle up. It does not help those in the bottom.” “It is not easy to satisfy all the components of all the people involved, and it is not easy to get through the process to get here today; nevertheless, I do not support this bill,” Singleton said. Singleton said that expansion of the AAA would only hurt public schools. “I think this is going to hurt public education,” Singleton said. “I am here to protect those to whom I see that unintended consequences are happening. “Our charter schools, they can take a limited number of students, our private schools, they can take a limited number of students,” Singleton said. “If students leave school B for school A, what they are going to do is leave school B with nobody. If that was a bad school, you just left it worse.” The SGOs have had difficulty over the past year in raising the $30 million to utilize the cap. “If we have not met the cap, why are we bumping it up?” Singleton said. “25% can go anywhere.” “If they meet the threshold,” Chesteen said. “That bothers me,” Singleton said. “They may not qualify at one level, but can roam around the system if they are in poverty.” Sen. Larry Stutts (R-Sheffield) argued against the bill because he felt it did not go far enough. “We have been in last place too long,” Stutts said. “It is important that we make a statement that education is important. It is important for the workforce. It is important to parents.” Stutts is the sponsor of the PRICE Act, which would be a far larger, more expansive school choice bill. “Your bill (the AAA) has only helped 3,200 students in ten years. My bill would help 7,900 students the first year,” Stutts argued. The money for the Accountability Act comes from Alabama taxpayers voluntarily electing to take tax credits so that their income tax dollars go to scholarship granting organizations (SGOs) instead of the Alabama education trust fund. The PRICE Act, on the other hand, would transfer $6,900 per student from the education trust fund to an education savings account that would follow the child to the school of the parent’s choice. “We need universal school choice,” Stutts said. “We need choice throughout the state. The parents know the needs of the children. No one understands the individual needs of the child better than the parents.” Stutts also objected to the fact that the students can get a scholarship up to $10,000 under this bill, while the amount the student would receive under the PRICE Act – would be just $6,900 – the amount of state support that Alabama public schools students receive from the education trust fund on a per capita basis. “Are you willing to say that we carry over your bill tonight and commit to me that we will tie these two bills together and pass these two bills out of the Senate together?” Stutts asked. Chesteen answered, “My plan is to move this bill tonight. I am going to continue to work this bill. If you will continue to work your bill, I will commit to you that I will work with you to get your bill passed tomorrow.” Stutts said, “I appreciate your bill, but I appreciate my bill more.” Singleton warned that expanding school choice could lead to a mass exodus of students from public schools. “You might think that not everybody is going to get up and run, but it might happen,” Singleton said. “It doesn’t say that the child has to fail, just that the school has to fail. They can recruit this star athlete who has a 3.9 to go over here because the school is failing. Usually, when one child leaves, it is the whole family that leaves.” Sen. Garlan Gudger (R-Cullman) said there are no failing schools in his district, so no one in his district qualifies for the scholarships. “They told me back in my district that they are not opposed to school choice, but since no one from the district gets the money, and it takes $30 million out of the education trust fund to oppose this,” Gudger said. “It is hard for me to go back to rural Alabama when the money goes to people in other parts of the state.” Sen. Rodger Smitherman (D-Birmingham) said that more money is going for school choice than raising up the state’s failing schools. “I am up here
Alabama Senate passes anti ESG legislation
On Thursday, the Alabama Senate passed legislation that would require companies that want state of Alabama contracts to forgo any ESG (environmental, social, and governance) woke corporations or ESGs. Senate Bill 261 (SB261) is sponsored by State Senator Dan Roberts. Senate Bill 261 has been billed as the “strongest” anti-ESG legislation in the nation. The bill prohibits governmental entities from entering into certain contracts with companies that boycott businesses because the business engages in certain sectors, does not meet certain environmental or corporate governance standards, or does not facilitate certain activities. The legislation authorizes the Attorney General to take action to investigate and enforce this act. “I appreciate the support of my colleagues in the Senate for working to pass this legislation,” Sen. Roberts told reporters. “The Alabama Senate has made it clear that we want businesses to focus on growing and expanding and not working to push any political agenda with left-wing ESG policies.” If a company engages in social activism banned by the legislation, it can’t do business with any local or state government. According to the bill, “This bill would prohibit a governmental entity from entering into a public contract for goods or services with certain companies or businesses that engage in the economic boycott of businesses in certain sectors and industries; that fail to meet or commit to meet certain environmental standards; that fail to meet or commit to meet certain corporate governance criteria; or that fail to facilitate certain activities.” Companies would have to sign a verification that it does not engage in boycotts of other companies and industries. Governments can opt out of this provision if they can prove that it would have an adverse economic effect on that government if they can’t do business with that company. The bill states, “The Attorney General shall seek to prohibit the adoption of federal laws, rules, regulations, bulletins, executive orders, or other federal actions that may penalize, inflict economic harm on, limit commercial relations with, or change or limit the activities of a company in the state or a resident of the state based on the furtherance of economic boycott criteria or other similarly oriented rating.” It also protects companies from state or local governments trying to pressure them company into adopting woke political action. “No company in this state shall be penalized, have economic harm inflicted on it, have commercial relations limited, or have the activities of the company changed or limited by a governmental entity because the company will not engage in economic boycotts; will not establish or implement policies, procedures, guidelines, rules, reports, products, services, notices, disclosures, or rates or pricing; will not provide or submit answers to surveys or other information requests or disclosures; will not invest in or divest of certain securities, stocks, bonds, bills, partnerships, or other investment arrangements; or will not initiate other corporate or business practices that further social, political, or ideological interests including, but not limited to, economic boycott criteria or other similarly oriented rating.” Sen. Rodger Smitherman said that the bill was unconstitutional. “I am trying to save you from yourselves,” Smitherman said. “You either don’t know the Constitution or don’t understand the Constitution.” “If you say that they don’t have free expression, you are going to lose,” Smitherman said. “I have been a constitutional law professor for 25 years. Doing something that is unconstitutional just because it feels good does not make sense.” “We have industry in our state that can be hurt by things going on nationally,” Roberts explained. “We are trying to put them in position so they can thrive. We are trying to make sure that they have access to the mother’s milk of capital in the future.” Sen. Bobby Singleton brought an amendment to the committee substitute of the bill. “It was given to me by the governor’s office,” Singleton said. “The finance department; they just wanted to make sure that they are protected in dealing with the state’s debt obligations.” Roberts accepted the Singleton amendment as friendly. “I think this is an anti-business bill,” Singleton said. “You are telling people that do business in the state of Alabama that you can’t have a social conscience.” “This is not a pro-business bill,” Singleton said. “Dan, you are wrong on this one. I will tell you, Dan, that you are wrong on this one.” “You can’t listen to Fox and decide what you are going to do,” Singleton continued. “We can’t be Florida 2.0. We won’t be able to recruit with this on the ground. This is a threat to business. If I don’t sign this paragraph, I can’t do business in Alabama.” Senate President Pro Tempore Greg Reed said, “This is a difficult topic. This is one that is at a national level that we have to deal with.” Roberts left after he learned that his friend, Pastor Harry Reeder, had died driving home from a meeting with Roberts and legislators. Sen. Sam Givhan then assumed the role of advocating for the bill. “We did have great dialogue,” Givhan said of talks with the Alabama business community on the bill. “We had businesses across the gamut in the state of Alabama. We sat down in a room with them, and they presented us with their redlines.” “They are never going to tell you no because they feel vulnerable,” Singleton said. “They know you can pass it anyway.” “They probably walk out of the room and cuss you out once they are out of the room,” Singleton said. “I am sure if they had their way, it would just go away.” Sen Robert Stewart said, “Corporations do have an obligation to be good actors.” Givhan responded, “Their job is to maximize shareholder wealth.” “Why are we trying to tell businesses what they can and can’t do even businesses we do not give incentives,” Smitherman said, “How do we make these God-like decisions? Just because we have authority does not mean that we are God.” Givhan explained the Singleton amendment. “Debt obligations – that is targeted at the bond market,” Givhan said. “There is not
Demopolis healthcare school cause for disagreement
In her annual State of the State address, Alabama Governor Kay Ivey proposed building a boarding school for 14- to 17-year-old students interested in pursuing a career in the healthcare field. That school was to be in Demopolis. Few were aware of the proposal before the governor referenced it in her speech. The healthcare school has become a point of contention in the debate around the education budget package. The budget that passed the Alabama Senate on Thursday replaced the $30 million line item in the governor’s supplemental appropriation request with a $500,000 study by an outside firm to determine the feasibility and the best location for the new boarding school. “It is sad that even very progressive areas are doing everything they can to try to kill our area,” State Rep. A.J. McCampbell told Alabama Today. “The school would be a game changer for our area.” “We have a hospital,” McCampbell explained, working with the University of Alabama Birmingham hospital system. Alabama Today asked McCampbell if the Demopolis hospital was having difficulty hiring nurses. “It is hard to get RNs, even CNAs,” McCampbell said. McCampbell said that the new healthcare schools are teaching people across healthcare. “Not just doctors, but also CNAs and LPNs,” McCampbell said. State Senator Bobby Singleton attempted to restore some of that funding with an amendment on the floor of the Senate. “There is real desire for health care workers,” Singleton said. “There is a need to get LPNs pushed out to the state.” Singleton claimed that the school would allow “young people in high school to get some experience, and they will matriculate into the healthcare profession, particularly in rural areas.” Singleton’s amendment was voted down in a 20 to 8, with only Democrats voting in favor. “I would like to thank this body for telling little babies in West Alabama that they don’t mean anything,” Singleton said after losing the vote, “Thank you; this is why we will always be number 50.” The State of Alabama started the Alabama School of Fine Arts for students with a gift and particular interest in music, art, dance, etc., in Birmingham in 1971. That was followed by the Alabama School of Math and Science in Mobile in 1989 and the Alabama School of Cyber Technology and Engineering in 2018. All of these are in major cities. Demopolis would be different from that kind of city experience. The population of Demopolis peaked at over 7,700 in 1980 but has declined from 7,483 in the 2010 census to just 6,763 in the most recent census estimate – a 10.6% decline. Just 18,741 people live in Marengo County (2022 census estimate). That is down from 20,955 in 2010 and 25,477 in 1977. The 2023 Alabama Regular Legislative Session has been remarkable for its bipartisanship. Most bills are passing the House of Representatives with 100 or more votes, and it has been rare for more than three senators to vote against a bill in the Senate. There was partisan disagreement on this amendment in the Senate as well as Democratic opposition in the Alabama House of Representatives to a bill that would make it a crime in Alabama for someone to take pay for helping people fill out their ballot or to hand out absentee ballot applications. Tuesday will be day 19 of the 2023 Alabama Regular Legislative Session. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Greg Reed says bill to reduce grocery tax gaining momentum among GOP state Senators
On Thursday, the Alabama Senate passed the largest education budget in Alabama’s history. Between the $8.9 billion FY2024 education trust fund (ETF) and the $2.8 billion FY2023 supplemental appropriation, the total appropriation shattered every revenue record in state history. The great economy and the newfound wealth are forcing legislators to set priorities and ask hard questions about what they really want to accomplish in the next four years. The problem with money, especially new money, is that everybody has their own ideas about what to do with it. Every school in the state and every university wants more money than they received last year. Ditto with almost every state agency funded in the education budget. The Alabama Department of Education is presenting legislators with a myriad of plans to create or expand programs it claims will improve the dreadful educational performance in the state. The Alabama Department of Commerce has requests for renewed and expanded economic incentives. The Alabama Department of Corrections, which is normally largely funded in the state general fund budget (SGF) rather than the education trust fund (ETF), wants $100 million in education dollars to build education facilities on the sites of their new megaprisons in Elmore and Escambia Counties. There were even calls from Montgomery legislators for $30 million to build a dubious water rafting theme park. Every University or nonprofit group has presented the legislature with their plans to build a new building, center, or program. In her State of the State address, Governor Kay Ivey promised every Alabamian a $400 check in their mailbox. School choice advocates are asking for education dollars to follow the child out of Alabama’s troubled public school system with the PRICE Act. Four legislators have presented plans to reduce or eliminate the state’s four percent sales tax on groceries. Legislators are talking about lowering the state’s corporate income tax rate. The Alabama House of Representatives actually passed legislation eliminating the income tax on hourly workers working overtime. There are also calls to save money in this record revenue year in anticipation of the next economic downturn. With 140 different legislators, there are 140 different ideas about how to spend the state’s revenues. “We cannot do it all,” said Sen. Arthur Orr, who chairs the Senate Finance and Taxation Education Committee, told reporters following passage of the budget package Thursday. Senate Pro Tem. Greg Reed agrees. “We can’t do all of it,” Reed said. “There is a slew of tax cuts ideas coming,” Orr said. “How are we going to afford it?” “We need to be careful that we don’t cut too many taxes,” Reed said. Reed indicated that the plan most likely to move forward is the plan to reduce grocery taxes. “When you talk to the members, you will hear more about the grocery tax than any other,” Reed said. Alabama Today asked Orr if the $45 million tax cut for hourly workers that passed the House on Tuesday was in the budget that passed the Senate on Thursday. “No, it was not,” Orr said. The Senate does plan to save some of the money in a new reserve account. “Half a billion dollars is going into a savings account which is where we’re going to put the rebate money to take care of future needs, particularly because we’re concerned about the future of the economy,” Orr said. The Senate also downsized Governor Ivey’s rebate plan from $400 per tax filer to $105, saving approximately $700 million. The Senate eliminated plans to spend $30 million on a new healthcare-focused boarding school in Demopolis. That was replaced with a $500,000 study to study the feasibility of the plan and what would be the best site for the plan. The Senate rejected an amendment by Sen. Bobby Singleton that would have restored $2 million of funding for the school. “I would like to thank this body for telling little babies in West Alabama that they don’t mean anything,” Singleton said after losing the vote, “Thank you, this is why we will always be number 50.” The Senate budget also cut out the plan to provide $30,000 million to Montgomery, including the plans for the controversial water park. “I am very concerned that the capital city will be completely left out of the supplemental,” said Sen. Kirk Hatcher. “I am pleading with you to help with this.” The legislature did advance a controversial bill to provide a bridge loan to cash-strapped private college Birmingham Southern College. That bill is sponsored by Sen. Jabo Waggoner – a Birmingham Southern Alum. The budget package now goes to the Alabama House of Representatives for its consideration. The House has already passed the state general fund budget (SGF). The SGF could come out of committee in the Senate as early as Wednesday, but sources think it likely will be another week. “This is an unprecedented budget and an unprecedented time,” Orr said. Wednesday was Day 18 of the 2023 Alabama Regular Legislative Session. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Speaker says that Alabama will not pass recreational marijuana in the next four years
Alabama will have medicinal cannabis being sold as soon as the end of the year, but there are no plans to consider passing recreational cannabis in this session or even in the next four years. That was the message Speaker of the House Nathaniel Ledbetter told reporters following Tuesday’s legislative day. A reporter asked Ledbetter if the state would consider passing recreational marijuana. “That won’t come for years,” Ledbetter said. “That won’t come for the next four years….because the Speaker won’t let it on the floor.” In 2021 the Alabama Legislature passed – and Alabama Governor Kay Ivey signed – medical cannabis legislation. The legislation created the Alabama Medical Cannabis Commission (AMCC). The AMCC was tasked with writing rules for creating a limited Alabama-only medical cannabis industry. The Commission is formally considering applications from 90 firms and individuals who hope to become licensed Alabama medical cannabis growers, transporters, processors, dispensers, or integrators. The Alabama statute is highly restrictive, but there have been calls from some conservative groups to make that even more restrictive. Some conservative groups want to introduce legislation requiring women of childbearing age to obtain a negative pregnancy test before filling their monthly doctor-recommended medical cannabis order. That legislation is expected to be filed this week. There have also been calls for some in the industry to go in and tweak the 2021 legislation to allow more permits to be awarded or more medical conditions to be included as being treatable by medical cannabis. Ledbetter said he expects the Legislature to “tweak” the statute. Ledbetter did not say what tweaks he thought were likely. Thursday will be the fourth annual lobbying day for the Alabama Cannabis Coalition. The group will meet in Room #429 of the Alabama State House. They will host guest speakers and discuss the current decriminalization legislation, SB42, sponsored for the fourth year by Alabama State Senator Bobby Singleton, and HB13, aka “Cite and Release,” sponsored by Alabama House Rep. Chris England. The group favors both decriminalization of marijuana offenses and the legalization of marijuana, including home growing and the legalization of recreational marijuana. Tuesday was day 11 of the 2023 Alabama Regular Session. The regular legislative session is limited by the Alabama Constitution of 1901 to no more than thirty legislative days during a regular session. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Law enforcement leaders support Steve Marshall’s Gang Prevention Act
Alabama Attorney General Steve Marshall applauded a letter submitted to the Alabama Legislature from 162 Sheriffs and Chiefs of Police from across the state calling for the swift passage of legislation that would prosecute 16-year-olds as adults if they commit a serious crime furthering the interests of a gang. Senate Bill 143 (SB143) is sponsored by State Sen. Will Barfoot. The same legislation has been introduced in the House as House Bill 191 (HB 191) by State Rep. Allen Treadaway. The Alabama Gang Prevention Act provides penalty enhancements for felonies committed to further the interests of a gang, attaches a minimum sentence to any use of a firearm to promote a gang, and certifies individuals aged 16 and older as adults when charged with gang-related offenses under the Act. “Gang violence has steadily increased over the last decade, but we must refuse to accept in Alabama,” the sheriffs and police chiefs wrote. “The legislature can help to curb this trend by enacting the Alabama Gang Prevention Act,” said Attorney General Marshall. “Together, we are urging the swift passage of this legislation that will give state and local law enforcement the tools they need to take back our streets.” “Currently, Alabama has no law on the books to specifically combat or deter gang activity and gang violence,” the letter explains. “Gang violence is a cancer and tough sentences are the antidote.” According to the synopsis, “This bill would identify gang members. This bill would enhance penalties for any criminal activity that benefits, promotes, or furthers the interest of a gang. The bill would establish mandatory consecutive penalties for any individual who knowingly possesses, uses, or carries a firearm during the commission of any act intended to benefit, promote, or further the interest of a gang. Under existing law, juveniles 16 years of age or older are tried as adults for certain crimes. This bill would require any juvenile 16 or older to be tried as an adult for any gang-related criminal activity.” On Tuesday, Senate Bill 119, which would have prosecuted 16-year-olds as adults for assaulting the staff of a juvenile corrections facility with a weapon, was carried over in the Senate after Senate Minority Leader Bobby Singleton objected to prosecuting 16-year-olds as adults. The sponsor, Sen. Linda Coleman-Madison, is working with Singleton on a compromise. SB143 and HB191 potentially would lead to many more youthful offenders being prosecuted as adults. It also has the potential to exacerbate Alabama’s prison overcrowding situation. SB143 will be considered by the Senate Judiciary Committee when it meets on Wednesday in Room 325 in the Alabama Statehouse. HB191 will be considered by the House Judiciary Committee on Wednesday afternoon when it meets in Room 200. Wednesday will be day 9 of the 2023 Alabama Regular Legislative Session. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Gov. Kay Ivey launches Game Plan legislative package
On Monday, Governor Kay Ivey launched what plan for Alabama’s continued economic success. Called “The Game Plan,” the proposed package consists of four economic development bills. Governor Ivey was joined by the leadership of the Alabama Legislature to signal bipartisan support for The Game Plan. Ivey spoke with reporters at Montgomery’s Riverwalk Stadium. “The Game Plan will position Alabama for a new era of vigorous growth, allowing us to continue our record-breaking economic development success while providing new levels of support for the state’s innovation economy,” said Gov. Ivey. “This package will benefit all Alabamians, those living in both urban centers and rural areas, and ensure our citizens are ready for high-paying careers.” The Game Plan package includes four bills — or “plays” — that will be introduced during the current session of the Legislature. According to the governor’s plan: • Play 1: The Enhancing Alabama’s Economic Progress Act renews the Alabama Jobs Act and the Growing Alabama program and extends their sunset dates to 2028 while adding strategic enhancements to increase their effectiveness. The Jobs Act is the state’s primary incentives platform, while Growing Alabama primarily speeds development of shovel-ready sites. • Play 2: The Site Evaluation and Economic Development Strategy Act (SEEDS) will allow the State Industrial Development Authority to accelerate the development of industry-ready sites when available sites are scarce and other states are expanding their site programs. • Play 3: The Innovation and Small Business Act aims to supercharge growth in Alabama’s innovation economy and support underrepresented businesses and enterprises in rural areas, transforming the state into a hub for technology and innovation. • Play 4: The Enhancing Transparency Act Enhancing will amend the Jobs Act to require the Alabama Department of Commerce to publish certain incentivized project information on its website. Transparency around important information about companies receiving incentives will serve as a valid public service and increase confidence in the process. Ivey was joined by Lt. Gov. Will Ainsworth, state Senate President Pro Temp Greg Reed, Speaker of the House Nathaniel Ledbetter, Senate Minority Leader Bobby Singleton, and House Minority Leader Anthony Daniels. Greg Canfield is the secretary of the Alabama Department of Commerce. “The Game Plan represents the state’s next-generation strategic economic development framework, designed to future-proof Alabama’s economy and provide a blueprint for growth that lifts families and communities across the state,” said Secretary Canfield. “It will keep us competitive for high-impact projects as our neighboring states are aggressively escalating their economic development efforts.” Canfield and Ivey credit the Jobs Act with bringing $22 billion in new capital investment and 40,000 jobs to the state. The jobs created by these projects will pay an average hourly wage of $23.42, a figure that is 31% more than the state’s median wage, according to Commerce data. If the Legislature does not renew the Jobs Act, it will expire on July 31 of this year, as will the Growing Alabama tax credit program. State and local governments will not be able to offer the incentives that the state has been offering over the last dozen years. Ivey has announced that economic development projects in 2022 will bring over $10 billion in new capital investment to the state, setting a new annual record. “Our goal is simple — we want to have the best incentives not only in the Southeast but in the nation as a whole,” said Lt. Gov. Ainsworth. “Reauthorizing these programs is going to be essential in attracting high-paying, long-lasting 21st Century jobs.” “When you look at the issues Alabamians care about, economic development and job creation are at the top of that list. States around our region are all competing to attract jobs and create economic growth,” said Sen. Reed. “We need to make sure we are best positioned to attract these good-quality jobs to communities in our state.” “Industries across the country are trying to come here because of our great employees, our low taxes, and because of our great quality of life,” said Speaker Ledbetter. “From a competitive standpoint, we want to make sure we have the tools necessary to bring them here and keep them here.” “Growing Alabama’s economy and creating good jobs for our citizens is something we can all agree on,” said Sen. Singleton. “We will continue to promote practical and meaningful legislation and policies that highlight our pro-growth, pro-innovation platform,” said Leader Daniels. Critics have criticized the state’s incentives program as the state government picking winners and losers. However, this package seems to have bipartisan support from the leadership of both political parties, and there has been no public opposition from any legislators. It appears to be on the fast track toward passage. Tuesday will be day 5 of the 2023 Alabama Regular Legislative Session. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Gov. Kay Ivey to announce launch of economic development agenda
On Monday, Alabama Governor Kay Ivey will officially launch her push to pass economic development bills at an announcement event in Montgomery. Ivey will present “The Game Plan,” her plan for Alabama’s continued economic success. “The Game Plan” is a proposed package of four economic development bills that Ivey insists will strengthen the state’s competitiveness for job-creating projects. Ivey will be joined by Alabama Department of Commerce Secretary Greg Canfield, Senate President Pro Tempore Greg Reed, Speaker of the House Nathaniel Ledbetter, Senate Minority Leader Bobby Singleton, House Minority Leader Anthony Daniels, and Lieutenant Governor Will Ainsworth. Ivey has made renewing the state’s economic incentives a key goal of her administration this legislative session. “I am proud of the successful track record we have had in recruiting business and industry to both the rural parts of Alabama and the larger cities,” Ivey said in her state of the state address. “Since I’ve been governor, more than $42 billion have been invested in our state, which has created some 78,000 new jobs. For most of those, we can thank the Alabama Jobs Act. And any good coach knows when you have a play that’s working, the team needs to keep running it. Today, we have to look ahead and create an economic development strategy for the 2030s. I assured you we would have a winning game plan here at home, and tonight, I am calling on you to get behind our playbook for economic success, what I am calling The Game Plan. We will ensure stability and growth by renewing and improving the Alabama Jobs Act and the Growing Alabama Act.” Speaker Ledbetter has said that renewing the Alabama Jobs Act would be one of the legislature’s first priorities. “(The Alabama Jobs Act) is going to be priority No. 1 coming back after break. I think you’ll see a big push for that,” Ledbetter stated. “They’ve been very positive for our state. We’ve seen the job growth has been tremendous because of it. We’ve looked at the numbers; we got a return on the investment of 173% over a 20-year period.” Ledbetter believes legislation on this needs to be done quickly. The Alabama Jobs Act, created in 2015 and set to expire this year, has netted $256.8 million in incentives, Sec. Canfield reported in 2022. This amount outpaced the department’s benchmark of $164.6 million. The Joint Study Commission on Renewing Incentives has discussed extending the Jobs Act through 2028 with a higher payout cap. Legislation has not been filed yet. The Jobs Act created two separate incentives: The Alabama Jobs Credit and Alabama Investment Credit. The Jobs Credit gives companies cash rebates on their previous year’s payroll for qualified employees, and companies can get higher rebates if they locate in rural parts of the state or hire veterans. The Investment Credit addresses a company’s capital investment and can be applied to several taxes, including income. Companies can receive incentives for up to 10 years. The incentives are currently capped at $350 million annually. Canfield said the Jobs Act has helped the state recruit 217 projects creating more than 38,000 jobs, and he believes the $350 million cap should be increased. During her state of the state address, Ivey also proposed a plan to dole out $200 million in direct cash payments to Alabama businesses. “I am also proposing we invest even more into our locally owned businesses – the ones engrained into the DNA of our communities – through a $200 million grant program known as our Main Street Program,” Ivey said. “These competitive grants will help revitalize our small cities and towns. When folks think of main streets, they should think of rural Alabama!” Unemployment has dropped to just 2.5%, and state revenues have soared under Ivey. The state is so flush with cash that on September 30, it rolled $3 billion in surpluses from the 2022 fiscal year into the 2023 budget year. Renewing economic incentives is also a priority of Alabama’s Big Ten Mayors. The Mayors of Alabama’s ten biggest municipalities support the reauthorization and accompanying expansion of the Alabama Jobs Act and the Growing Alabama Act. The Mayors claim that the incentive programs established by these bills are critical to keeping Alabama’s economy globally competitive as we work to attract new businesses and jobs to our communities. Some fiscal conservatives have criticized the push to renew incentives. “Economic incentives should be Alabama’s last resort in securing new businesses,” the Alabama Policy Institute’s Justin Bogie argued recently. “Lower tax rates and a better-educated workforce will be enough incentive. It will also improve the lives of all Alabamians.” At this point, it appears that the Governor’s plan, with perhaps some minor alterations in the legislative process, will pass the Alabama Legislature with broad bipartisan support. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
State Senate votes to advance property tax increase for Vestavia
Vestavia Hills residents could soon be voting on whether or not to raise their property taxes after the Alabama Senate voted on Thursday to advance legislation authorizing the school system to hold a referendum on raising ad valorem taxes. Senate Bill 63 (SB63) is sponsored by State Sen. James T. “Jabo” Waggoner Jr., who chairs the powerful Senate Rules Committee. “This is on behalf of the Vestavia Hills Board of Education,” Waggoner said on the floor of the Senate. “As you know, we have one of the better school systems in the state. They are asking for 9.4 mills.” Sen. Rodger Smitherman said, “It is a tax bill, and I am going to vote for the bill.” “We did the same for Center Point,” Smitherman said. “With Center Point, we did that with street light cameras. What concerns me is that Birmingham does not get the same consideration. I had the same bill for the city of Birmingham, but I did not get the same consideration.” Senate Minority Leader Bobby Singleton said, “Thank you for bringing this bill. Education is important. I applaud you for bringing this and doing what is best for the school children in your district.” SB63 would authorize Vestavia to increase the rate at which ad valorem taxes are levied and collected by the city on all taxable property situated within the city. If passed, the bill would raise the maximum rate to $3.54 on each one hundred dollars ($100) (35.4 mills on each dollar) of assessed value. The city presently levies and collects the Special Tax at a rate of $2.56 on each one hundred dollars (25.6 mills on each dollar) of assessed value. The increase is subject to the approval of a majority of the qualified voters residing in the City who vote on the proposed increase at a special election called and held for that purpose. Singleton said that the Alabama Farmer’s Federation (without naming them) had opposed a rural tax referendum with “Vote No” signs because they don’t want to pay higher taxes on their farmland and forest land. Whether or not they will oppose this tax increase remains to be seen. SB63 was passed by the Senate in a 16 to 0 vote. SB63 is a local bill. It is customary practice in the Alabama Legislature for members who do not represent the county affected by the legislation, in this case Jefferson County, not to oppose other members’ local bills. Waggoner is the dean of the Legislature, having served in the House of Representatives for five terms from 1966 to 1984 and nine terms in the Alabama Senate from 1990 to the present. The legislation now goes to the Alabama House of Representatives for their consideration. Thursday was Day 4 of the 2023 Alabama Regular Legislative Session. To connect with the author of this story or to comment, email brandonmreporter@gmail.com
Senate leaders reflect on successful special session
On Thursday, the Legislature passed, and the Governor signed both bills, which were the objectives of the First 2023 Special Session. As the Governor requested in her state of the state speech on March 7, the Legislature appropriated $1,060,000,000 in American Rescue Plan Act (ARPA) funds in House Bill 1. The Legislature also appropriated money to finally repay the money borrowed from the Alabama Trust Fund (ATF) to make up for a shortfall in the state general fund (SGF) during the Great Recession. “It’s been our responsibility at the state level to appropriate this $1.1 billion for the benefit of the people of Alabama,” said State Senate President Pro Tempore Greg Reed. “We have been able to move through that process this week. All the membership has been very involved and engaged.” Priorities included investing in sewer and water infrastructure, broadband internet expansion, and supporting hospitals, nursing homes, and other health care providers across the state. “One of the things that we wanted to look at, of course, was hospitals, nursing homes, those that were providing care during the pandemic, which was very important. They had a lot of reimbursable requirements,” Reed explained. “Also looking at water, sewer projects. Basically, if you’re looking to invest in Alabama, you’re trying to put infrastructure in the ground that’s going to be there for the next 30, 40, 50 years. That is going to be very important for the people of our state. We did that in the first round of ARPA. We are doing that again. There is going to wind up being hundreds of hundreds of millions of dollars of infrastructure investment in our state.” The plan allocates $400 million to water and sewer projects, $339 million to healthcare costs, and $260 million to expand access to broadband internet. The remaining $55 million in funding will be eligible for those that serve food banks, child welfare, long-term housing, victims of domestic violence, mental health disorders, and senior citizens. The healthcare funding will be divided to include $100 million for hospitals, $100 million for nursing homes, $5 million for state veterans’ homes, $40 million for the state employees’ health insurance program, and $40 million for the public education employee’s health insurance program. Mental health services will receive $25 million, while $9 million will promote telemedicine. $20 million will go to a voluntary clinical trial and healthcare research program. “Broadband internet access, which is a huge issue for Alabamians. Trying to make sure that everybody across that state can access the internet,” Reed said. “That helps us in quality of life, but also as far as topics of economic development and healthcare with telemedicine; and of course, as we learned during the pandemic, our children’s education sometimes needs to be done from home, and that gives us the opportunity to grow that opportunity as well. We worked diligently to make sure this is a bipartisan effort. There are elements all across Alabama, no matter where you are, that will benefit from these ARPA funds.” “I make it my business to work closely with my colleagues in the Minority Caucus,” Reed stated. “I have a great friendship with Senator [Bobby] Singleton, who is my minority leader. He and I are great buddies. We work closely and carefully together. This is a topic, sometimes we disagree, as you would expect, but in this instance, there was a lot of collaboration, cooperation where we thought Alabama would benefit the most in being able to use them the most, so I am proud of that.” The Senate amended the House version of the bill to allow a portion of the money for water and sewer projects to be used for stormwater drainage projects. Of the water and sewer funds, up to $100 million are to be awarded based on a ranking system established by the Department of Environmental Management that includes a factor for the water and sewer needs of growing communities. State Senator Greg Albritton chairs the Senate Finance and Taxation General Fund Committee and carried both bills in the Senate. “We believe that we have allocated these funds to the best of our ability at the guidance of the Federal government,” said Albritton. “Water and sewer, broadband expansion, and healthcare were the backbone of this round due to no lost revenues. Our foremost intent was to make smart and intuitive investments in these critical infrastructure areas that will pay dividends for generations to come.” The Legislature passed Senate Bill 1, which transfers $59.9 million from the SGF budget to the ATF. The ATF was created as a ‘rainy day’ account to be used only in times of fiscal crisis and is funded by royalty payments that are received monthly from oil and gas companies. In 2012, the ATF transferred $437 million to the SGF to help with proration. The financial crisis that the Alabama Legislature found itself in after the Great Recession decreased SGF revenues by $300 million a year. “During those years, amid a national recession, we had a significant shortfall in funds,” Albritton explained. “It was the Legislature’s responsibility to fill the gap of the General Fund and keep Alabama operational. To overcome these critical shortfalls, the Legislature went to the Alabama taxpayers to seek their approval through a constitutional amendment to authorize the use of monies from the Alabama Trust Fund.” In 2013, the Legislature took action to repay the debts with The People’s Trust Act which implemented a schedule of repayments of the amounts transferred from the ATF. With the assistance of the Deepwater Horizon BP Settlement Funds and the State of Alabama’s annual disbursements, the total amount repaid to the ATF to date is $377.3 million. This one-time appropriation from surplus general fund dollars from the fiscal year 2022 will pay off that debt. “This final payment to the Alabama Trust will make us ‘debt-free’ and fulfills our obligation to the citizens we represent,” stated Sen. Albritton. “When this money was initially borrowed, we made a promise and commitment to pay it back. I am glad to say that due to our fiscal conservative
Legislature finishes the ARPA special session
On Thursday, the Alabama Senate voted to pass House Bill 1 (HB1), which appropriates $1,060,000,000 in federal American Rescue Plan Act (ARPA) funds for water projects, broadband, healthcare, and other projects. Following Senate passage, the Alabama House of Representatives voted to concur with the changes made by the Senate, and the bill has been sent to the governor. HB1 was sponsored by State Representative Rex Reynolds and was carried by Sen. Greg Albritton. The state has received approximately $2.1 billion in ARPA funding from the federal government. Half of that money has already been appropriated by the Legislative and is in the process of being allocated by the executive branch to projects across Alabama. This second tranche of ARPA money includes about $339,175,000 that will go for healthcare needs, including $25 million for Mental health and $9 million for the expansion of telemedicine. $260 million will be used for broadband, including a cybersecurity component. $395 million will go to water and sewer projects. $55 million will be used to compensate state agencies for the negative impacts of the COVID-19 pandemic. $1,179,000 will go for administrative costs of overseeing and allocating the money. State Sen. Arthur Orr said, “I don’t see what a lot of this has to do with COVID, but I can also see when a train is coming. “We have also got $55 million that can be for food assistance for food banks and nutritional programs,” Orr said. “I appreciate all your hard work on both of these ARPA bills,” Orr said to Albritton. “I think if we never have another ARPA, you would be happy with that.” “It does not fully fund the PEEHIP assistance, which is why the fed passed the original assistance bill,” Orr said. The full Senate voted to adopt the committee amendment introduced Wednesday for Sen. Chris Elliott. Sen. Linda Coleman-Madison offered a floor amendment to the bill. Coleman Madison said, “I would like to know why in-kind contributions was left out. It saves money from contracting out. It saves time. It helps the money go further.” “All of these moneys are under very strict guidelines by the federal Treasury Department,” Albritton said. “If we allow an in-kind contribution that opens up a means of reporting that may become problematic,” Albritton said, “We are talking about the $395 million for water and sewer projects. That is less than 40% of the total ARPA money.” “I ask that you withdraw the amendment,” Albritton said. Coleman Madison said, “I do not want to do anything where the federal government will come back and require a clawback. They want money and not any kind of service. I would like to withdraw my amendment.” Albritton provided a breakdown of the water and sewer dollars in the bill as amended by Elliott’s committee amendment. · $195 million is for water and sewer. · 100 million is water, sewer, and stormwater and may have, but does not require a match. · $100 million in water, sewer, and stormwater and does require a match “Every county in the state will have an opportunity to apply and will actually get funding for a project in their county,” Albritton told the members. “Counties across this state got $495 million directly to counties, and some of them chose to do nothing about stormwater with it,” Senate Minority Leader Bobby Singleton said. “Now they come to us and want us to fix it for them.” State Sen. Rodger Smitherman proposed an amendment to require ADEM to work with a town or county whose application was denied due to an error on the application. “This is simply to help our small towns,” Smitherman said. “If you are in a metropolitan area, you probably have someone who can do this, but our small towns cannot afford that.” “It has already been done,” Albritton objected. “That was in ARPA one. I hesitate to put that language which is already occurring in statute. I am going to vote no on this. We have already added one amendment. I don’t want another amendment one. It raises the possibility of nonconcurrence.” Smitherman’s amendment passed over Albritton’s objection 29 to 1. State Sen. Will Barfoot applauded the members for providing funding for healthcare but urged the members to do more for rural healthcare in the regular session. “I am challenging each of you here to start looking at bills to address healthcare in our rural communities,” Barfoot said. Senate Pro Tem Greg Reed said, “We have to stay focused on rural healthcare.” “We are going to have several pieces of legislation addressing nursing,” Reed said. “A lot of areas in my district, we would not have healthcare if we did not have nurse practitioners.” Reed said that broadband expansion is part of healthcare because of telemedicine. “The technology is advancing tremendously,” Reed said. “That is one way that local hospitals will be able to stay in business. We need to find ways to increase healthcare benefits, particularly in rural places like in my district.” State Sen. Vivian Figures said to Albritton, “Thank you for making sure that the cities and counties that can’t afford to put up a 35% match will be able to do these projects as well.” “I want to thank you for all the work that you have done,” Singleton said to Albritton. “It is a lot of money to spend. We have a lot of needs, but we are beginning to see a difference in the state. We are not going to be able to get it all, but we are knocking a dent in it.” “I wish you could have set aside more of the money for rural hospitals like we did in the first round,” Singleton said. “When that $40 million was cut out for them in the last round, they were ecstatic.” Reynolds asked that the House concur with the Senate changes to HB1. “The second amendment requires that ADEM has to work with a system if an application is denied because of an error,” Reynolds explained. “That system has to have an opportunity to correct that error, and if that application is denied, it has to be
