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In Case You Missed It

Hubbard Emails Show Money Making Schemes

Bill Britt



By Bill Britt
Alabama Political Reporter

Series: Emails on Hubbard’s Road to Perdition, Article 1

The emails below were released by the State on February 2015, in response to Hubbard’s demand for a more defined statement of facts concerning his indictments.

MONTGOMERY—Emails to and from Speaker Mike Hubbard show him directing millions of dollars to his business interests, and pleading with former Gov. Bob Riley to direct business his way. Pages of emails sent and received by Hubbard underscore the crimes he is accused of committing. These are outline in detail in an earlier report.


This is the first in a series of reports that will outline examples of those damning emails.

In an email to Riley dated September 9, 2011, Hubbard states he would like to go to work for Riley’s lobbying firm: “Except for those ethics laws. Who proposed those things?! What were we thinking?” wrote Hubbard.


These were the very ethics laws Hubbard, Riley and the Republican Supermajority championed and passed in a 2010 Special Session. Under the laws passed in 2010, it is illegal to accept or receive a thing of value from a lobbyist or a principal of a company.

In a follow-up email, Hubbard lays out a pathway for Riley to pay him and avoid the new law. Hubbard suggests Riley, now a registered lobbyist, with Bob Riley and Associates (BR&A) could skirt the new ethics law by claiming to be a “strategic business consultant.” The reason Hubbard encouraged Riley to make this move was so he could funnel money to Hubbard’s Auburn Network: “If you will build polling/focus groups into your strategic consulting plans for BR&A clients, that is something that could benefit me.”

“I still believe that you are a ‘strategic business consultant’ [sic] not a lobbyist. You could hire a lobbyist for BR&A – a Riley Team person who will do it for virtually nothing – which will allow BR&A to hire Auburn Network, Inc. to handle your marketing needs. We could do media buying, polling, focus groups, design work, printing, anything you need.”

“Something that could benefit me,” was what Hubbard wanted from the former Governor.

Hubbard tried to convince Riley to go around the ethics laws they passed, so Hubbard could make money through his Auburn Network business interests.


Those ethics laws, “What were we thinking?” in several dozen emails that question is asked and answered by Hubbard’s own actions which show he didn’t think they applied to him.

Riley said he understood Hubbard’s desire to make more money, “I understand— believe me — I went 14 years on a Gov payroll and it was a challenge.”

Then he offers Hubbard a warning, “Now and from now on you and I are going to be suspect in everything we do.
“However the ability to make great change is given to few people and you are one of the rare ones that can make it happen.”

“Again question now is DO YOU ‘WANT’ to be Gov —- or— make alot [sic] of money: good thing is you could do either but I am not sure it’s possible to do both.”

“When you get down — remind yourself —- that there is no one else – who has that choice.”

Hubbard’s many emails show he believed he could do both.

Hubbard, who receives around $50,000 annually from his Speaker’s position, and more than $100,000 from his Auburn Network, in email after email says, he needs more money.


An example of how Hubbard used his office for personal gain is Hubbard’s use of his office as Chairman of the Alabama Republican Party, to obtain over one million dollars for his business interest in Craftmaster, through a subcontracting agreement with Majority Strategies.

An email to ALGOP Executive Director John Ross, Hubbard wrote,, “I am going to pay a printing company I own part of DIRECTLY. Not through a company that is ungrateful for business and insists on being difficult. Is that clear to everyone?” Hubbard was referring to the subcontracting agreement between Majority Strategies and Hubbard’s other business interests.

In an email between Majority Strategies executives Randy Kammerdiner, and owner Brett Buerck, they lamented being forced to use the high-priced Craftmaster: “It’s fine to explain that we could actually send [Craftmaster] business if their prices were more in line with what we pay other places … Based on a message I got from Hubbard last night, our relationship relationship [sic] with them is still very tenous [sic]. And because I am a greedy bastard I would rather us swallow our pride and also make a lower profit margin in order to keep the client rather than getting black-balled in a state because we think the printer is making too much money and we don’t like being forced to use them.”

According the documents from the prosecution, “Hubbard’s decision to force Majority Strategies to use Craftmaster caused friction between the two businesses. Craftmaster President Barry Whatley complained that Buerck ‘routinely sent [him] emails blasting us about price, turn time and quote turn time.’”

It also shows that “Hubbard directed ALGOP money to Auburn Network through an intermediary, Tim Howe and his business entities, which were nothing more than a pass-through for Hubbard to conceal and launder ALGOP money to the Auburn Network.” The prosecution claims, “Specifically, Hubbard spent approximately $171,203.00 of ALGOP money through Howe’s companies on services provided by Auburn Network.” The documents state that, in all, Hubbard, “essentially embezzle over one million dollars (approximately $1,012,444.00) in ALGOP money his printing and media businesses.”


These are just two examples of the schemes Hubbard employed, that led to his indictment on 23 counts of public corruption.


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House passes General Fund Budget

Brandon Moseley



By Brandon Moseley
Alabama Political Reporter

The Alabama House of Representatives passed the state General Fund Budget on Tuesday.

The General Fund Budget for the 2019 fiscal year is Senate Bill 178. It is sponsored by Sen. Trip Pittman, R-Montrose. State Rep. Steve Clouse, R-Ozark, carried the budget on the House floor. Clouse chairs the House Ways and Means General Fund Committee.

Clouse said, “Last year we monetized the BP settlement money and held over $97 million to this year.”


Clouse said that the state is still trying to come up with a solution to the federal lawsuit over the state prisons. The Governor’s Office has made some progress after she took over from Gov. Robert Bentley. The supplemental we just passed added $30 million to prisons.

The budget adds $50 million to the Department of Corrections.

Clouse said that the budget increased the money for prisons by $55,680,000 and includes $4.8 million to buy the privately-owned prison facility in Perry County.

Clouse said that the budget raises funding for the judicial system and raises the appropriation for the Forensic Sciences to $11.7 million.

The House passed a committee substitute so the Senate is either going to have to concur with the changes made by the House or a conference committee will have to be appointed. Clouse told reporters that he hoped that it did not have to go to conference.

Clouse said that the budget had added $860,000 to hire more Juvenile Probation Officers. After talking to officials with the court system that was cut in half in the amendment. The amendment also includes some wording the arbiters in the court lawsuit think we need.

The state General Fund Budget, SB178, passed 98-1.

Both budgets have now passed the Alabama House of Representatives.

The 2019 fiscal year begins on Oct. 1, 2018.

In addition to the SGF, the House also passed a supplemental appropriation for the current 2018 budget year. SB175 is also sponsored by Pittman and was carried by Clouse on the floor of the House.

SB175 includes $30 million in additional 2018 money for the Department of Corrections. The Departmental Emergency Fund, the Examiners of Public Accounts, the Insurance Department and Forensic Sciences received additional money.

Clouse said, “We knew dealing with the federal lawsuit was going to be expensive. We are adding $80 million to the Department of Corrections.”

State Representative Johnny Mack Morrow, R-Red Bay, said that state Department of Forensics was cut from $14 million to $9 million. “Why are we adding money for DA and courts if we don’t have money for forensics to provide evidence? if there is any agency in law enforcement or the court system that should be funded it is Forensics.”

The supplemental 2018 appropriation passed 80 to 1.

The House also passed SB203. It was sponsored by Pittman and was carried in the House by State Rep. Ken Johnson, R-Moulton. It raises securities and registration fees for agents and investment advisors. It increases the filing fees for certain management investment companies. Johnson said that those fees had not been adjusted since 2009.

The House also passed SB176, which is an annual appropriation for the Coalition Against Domestic Violence. The bill requires that the agency have an operations plan, audited financial statement, and quarterly and end of year reports. SB176 is sponsored by Pittman and was carried on the House floor by State Rep. Elaine Beech, D-Chatham.

The House passed Senate Bill 185 which gives state employees a cost of living increase in the 2019 budget beginning on October 1. It was sponsored by Sen. Clyde Chambliss, R-Prattville and was being carried on the House floor by state Rep. Dimitri Polizos, R-Montgomery.

Polizos said that this was the first raise for non-education state employees in nine years. It is a 3 percent raise.

SB185 passed 101-0.

Senate Bill 215 gives retired state employees a one time bonus check. SB215 is sponsored by Senator Gerald Dial, R-Lineville, and was carried on the House floor by state Rep. Kerry Rich, R-Guntersville.

Rich said that retired employees will get a bonus $1  for every month that they worked for the state. For employees who retired with 25 years of service that will be a $300 one time bonus. A 20-year retiree would get $240 and a 35-year employee would get $420.

SB215 passed the House 87-0.

The House passed Senate Bill 231, which is the appropriation bill increase amount to the Emergency Forest Fire and Insect and Disease Fund. SB231 is sponsored by Sen. Steve Livingston, R-Scottsboro, and was carried on the House floor by state Rep. Kyle South, R-Fayette.

State Rep. Elaine Beech, D-Chathom, said, “Thank you for bringing this bill my district is full of trees and you never know when a forest fire will hit.

SB231 passed 87-2.

The state of Alabama is unique among the states in that most of the money is earmarked for specific purposes allowing the Legislature little year-to-year flexibility in moving funds around.

The SGF includes appropriations for the Alabama Medicaid Agency, the courts, the Alabama Law Enforcement Agency, the Alabama Department of Corrections, mental health, and most state agencies that are no education related. The Alabama Department of Transportation gets their funding mostly from state fuel taxes.

The Legislature also gives ALEA a portion of the gas taxes. K-12 education, the two year college system, and all the universities get their state support from the education trust fund (ETF) budget. There are also billions of dollars in revenue that are earmarked for a variety of purposes that does not show up in the SGF or ETF budgets.

Examples of that include the Public Service Commission, which collects utility taxes from the industries that it regulates. The PSC is supported entirely by its own revenue streams and contributes $13 million to the SGF. The Secretary of State’s Office is entirely funded by its corporate filing and other fees and gets no SGF appropriation.

Clouse warned reporters that part of the reason this budget had so much money was due to the BP oil spill settlement that provided money for the 2018 budget and $97 million for the 2019 budget. Clouse said they elected to make a $13 million repayment to the Alabama Trust fund that was not due until 2020 but that is all that was held over for 2020.

Clouse predicted that the Legislature will have to make some hard decisions about revenue in next year’s session.


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Day Care bill delayed for second time on Senate floor, may be back Thursday

Sam Mattison



By Samuel Mattison
Alabama Political Reporter

The day care bill, which would license certain day care centers in Alabama, was once again delayed on the state Senate floor after one lawmaker requested more information.

Its brief appearance Tuesday ended with state Sen. Gerald Dial, R-Lineville, saying a compromise had not yet been worked out with the bill’s detractors.

Alabama’s Senate has been hesitant to act on the legislation because of complaints of state Sen. Shay Shelnutt, R-Trussville, who has been an opponent of the bill since its introduction last year. The bill’s delay on Tuesday marks the second time its been taken off the Senate’s agenda.


The bill has had a rocky time in this year’s session, but the bill’s sponsor state Rep. Pebblin Warren, D-Tuskegee, said she is still confident about its passage out of the Legislature.

Warren, D-Tuskegee, filed the bill this session with the support of influential lawmakers including Gov. Kay Ivey, who told reporters last year that she though all day cares should be licensed.

Mainly sparked by the death of 5-year-old boy in the care of a unlicensed day care worker, the bill had great momentum coming into this year’ session.

Despite the growing support from lawmakers, Religious groups had concerns that the bill would increase state-sponsored reach into religious day cares in churches and non-profit groups.

Spearheading the dissenters was Alabama Citizens Action Program, a conservative religious-based PAC.

Warren, proponents, and ALCAP announced a compromise to the bill while it was still in the Alabama House.

Announced by ALCAP originally, the new bill was a weaker version in that it did not require that all day cares in the state be regulated. Instead, religious-based day cares would only need to be registered if they received federal funds. At a Senate committee meeting in February, Warren said a similar requirement was about to come from federal law in Congress.

The bill moved through the House in a overwhelming vote in favor of the proposal and passed unanimously out of a Senate committee a few weeks ago.

Warren, speaking to reporters after its passage from the House, said she was unsure if the bill would encounter resistance in the upper chamber.

It was the Senate that killed the daycare bill last year amid a cramped last day where senators took the bill off the floor. The bill may face similar complications this year, as lawmakers seem to be preparing to adjourn within a few weeks.

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In Case You Missed It

Fantasy sports bill fails on Senate floor

Sam Mattison



By Samuel Mattison
Alabama Political Reporter

Would-be Fantasy Sports players in Alabama will have to wait to legally play in the state following a Senate vote on Tuesday.

The Alabama Senate decisively killed a bill to exempt fantasy sports from the state’s prohibition on gambling.

Not even entertaining a debate on the Senate floor, the proposal was killed during a vote for the Budget Isolation Resolution, which is usually a formality vote preluding a debate.


Fantasy sports are contests where participants select players from real teams to compete on fantasy teams using the real-world players’ stats.

Since 2016, the practice has been illegal in Alabama following a legal decision by the Attorney General’s Office that categorized it as gambling.

The bill’s sponsor, state Sen. Paul Sanford, R-Huntsville, predicted the bill’s failure during a committee meeting two weeks ago, where the bill passed unanimously.

Sen. Paul Sanford speaks to reporters after a Senate Committee meeting on Feb. 28, 2018. (Samuel Mattison/APR)

Speaking to reporter’s after the committee meeting, Sanford said the decision to file the bill was mainly a philosophical belief that the practice shouldn’t be illegal.

Sanford, a fantasy sports player before its ban, said that fantasy sports are a way to bring people closer together and not a means to win money. The Huntsville senator is not seeking re-election.

The bill’s failure in the Senate follows its trajectory last year too. A similar version of the bill, also sponsored by Sanford, failed in the Senate during the final days of the 2017 Legislative Session.

Since Sanford is retiring, it is unclear if the bill will even come back next session, or if it will even have a Senate sponsor.

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Hubbard Emails Show Money Making Schemes

by Bill Britt Read Time: 5 min