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Infrastructure bill makes brief appearance in the Senate

Chip Brownlee

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By Chip Brownlee
Alabama Political Reporter

A bill that would authorize a new state infrastructure building project made a brief appearance on the Senate floor Tuesday.

The legislation, sponsored by State Sen. Gerald Dial, R-Lineville, would establish the Alabama Road and Bridge Rehabilitation and Improvement Authority to finance improvement projects if the Legislature ever passes a gas tax increase to back the bond-based program.

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Senators briefly debated the bill on the floor after it was added to the special order calendar for the Senate at the last minute. Several senators raised concerns that the bill wasn’t included in an advance copy of the special order calendar sent out to members on Monday.

The bill would authorize a second version of the Alabama Transportation Rehabilitation and Improvement Program, a state plan launched in 2012 to finance infrastructure improvement projects.

The first version of ATRIP involved the state borrowing up to $300 million annually for three years to pay for local infrastructure improvement projects. The bonds were backed by annual federal appropriations the state received for road and bridge rehab projects.

Cities and counties submitted project proposals to the Department of Transporation, the governor and an ATRIP committee. The localities were required to pay for a portion of the project.

The new version would allow the state to create the Rehabilitation and Improvement Authority, a public corporation backed by that state that would have the authority to take out a $2.45 billion bond issue to finance new road and bridge projects. $1.25 billion would be available to county and cities for improvements through ATRIP-II while the other $1.2 billion would be open to state projects through ALDOT.

Dial said the state is in desperate need of infrastructure rehab. In some areas, he said counties and cities have given up on trying to maintain their local roads.

“We have turned paved roads into dirt roads,” Dial said. “We haven’t addressed this issue in 20 years.”

The first iteration of ATRIP that began in 2013 financed more than 600 projects to repave a number of roads across the state that were in poor condition — but House and Senate leaders have argued the state is still far behind in updating its infrastructure.

Though the project would not be financed by direct state debt, the public corporation would be backed by the state and would be financed only through any new gas or diesel taxes. For the rehab projects to begin the Legislature would need to enact the new taxes.

A proposal to increase the gas tax failed in the Legislature last year. The gas tax hasn’t been hiked in Alabama since 1992 when lawmakers upped the tax by 5 cents. The proposal pushed last year by Rep. Bill Poole, R-Tuscaloosa, would have incrementally increased the gas tax by 9 cents through 2024.

House Speaker Mac McCutcheon and Gov. Kay Ivey have both expressed their support for a gas tax increase to fund new road projects. Senate President Pro Tem Del Marsh has also led talks in recent months about improving infrastructure.

Leaders have said they expect to formulate a plan this year, though a gas tax may not be sought until next year. Lawmakers may be reluctant to increase any taxes during an election year. But discussions about President Donald Trump’s infrastructure plan have spurred some lawmakers to think the state needs to act quickly to secure a plan for federal funding if it comes.

While Dial’s bill is only an outline and a gas tax would need to come next to enact the program, the governor could consider a special session if Congress or the president moves first on infrastructure.

Dial initially hoped to pass his bill Tuesday but Sen. Paul Sanford, R-Huntsville, pushed back, calling for the Senate to carry the bill over until the Republican and Democratic caucuses had time to discuss the bill. He said senators were blindsided by the bill being on the calendar.

“This is just a ploy to get the folks downstairs to pass a gas tax,” Sanford said, referring to the House’s responsibility to enact a new gas tax first before the Senate can take it up.

After Sanford began a filibuster, Dial eventually agreed to carry the bill over.

Alabama’s infrastructure in 2017 received a C-minus grade from the American Society of Civil Engineers, which found that the state’s roads, bridges, waterways and transit were in mediocre or poor condition. Roads received a D-plus grade and ALDOT rated 50 percent of the interstates and state highways — which carry as much as 60 percent of road traffic — as fair, poor or very poor and said maintenance must be priority.

Bridges received a C-minus after 8 percent of the state’s 15,986 bridges were found to be structurally deficient.

“To keep up, Alabama could increase its gas tax while the prices are low to fix more bridges now and prevent getting a larger bill down the road,” the report found.

It isn’t clear when the bill may be back on a special order calendar in the Senate.

 

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House passes General Fund Budget

Brandon Moseley

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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.

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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

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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.

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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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Fantasy sports bill fails on Senate floor

Sam Mattison

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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.

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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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Infrastructure bill makes brief appearance in the Senate

by Chip Brownlee Read Time: 4 min
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