By Brandon Moseley
Alabama Political Reporter
Thursday, June 22, 2017, former State Representative Oliver Robinson (D-Birmingham) entered guilty pleas to Federal charges of fraud, bribery, corruption, and tax evasion.
Rep. Robinson resigned from the Alabama House of Representatives last year, claiming that there was a conflict of interest with his serving in the legislature and his daughter working for former Alabama Governor Robert Bentley (R).
On Thursday the US Attorney’s office, the FBI, and the IRS claim that Robinson accepted bribes from powerful Birmingham law firm, Balch and Bingham for Robinson to advocate against expansion of a massive EPA Superfund site in Birmingham. Balch & Bingham client, Drummond Coal and its affiliate ABC Coke, would have potentially had to pay $millions to cleanup more neighborhoods in Birmingham.
Critics of alleged high levels of corruption in Montgomery and the Legislature were not surprised by Robinson’s admission of guilt.
Alabama Legislative Watch Dogs Director Ann Eubank told The Alabama Political Reporter: “This week has shown that “big money” in politics is polluting the system without any end in sight. Rumor has it that there is still a long list of elected officials being investigated, so how many politicians will go to jail before it stops? Could this be the reason that so many republicans are not running for reelection? Just asking.”
Former Alabama Public Service Commissioner Terry Dunn (R) said, “Look for more indictments to come. The employers of the employees mentioned in conspiracy have ties with Alabama Power. Balch & Bingham law firm, which represents Alabama Power and their supplier Drummond’s Coal, owns the Alabama Public Service Commission through it’s large political contributions.”
The Alabama Legislative Watch Dogs lobbied the legislature to pass ethics reform. That Legislation did not advance far during the 2017 Legislative session. Some Legislators and lobbyists have even voiced their opinion that Mike Hubbard’s 2010 Ethics Reform package unfairly prevents them from conducting business with firms that lobby the Legislature.
Eubank said, “The Alabama Legislative Watchdogs presented the ‘Anticorruption Platform’ to the Legislature at the beginning of the last session, maybe they need to get it out of their trash cans and read it again.”
Robinson’s attorneys, Richard S. Jaffe and Michael Whisonant Jr., released a statement: “Oliver is deeply aware that he has let down the public, his constituents and his family as it relates to certain decisions he made that he deeply regrets. Entering into a plea agreement with the government represents the clearest evidence that he is taking complete responsibility for his mistakes and misjudgments. Since the investigation unfolded, He has been, and intends to remain, faithful to the truth as he moves forward and puts the past behind him. He offers no excuse- just deep remorse- for his past actions.”
Acting United States Attorney for Northern Alabama Robert Posey said in a media availability, “Here with me from the FBI is acting Special Agent in Charge Dean Abbott and from the IRS Acting Special Agent in Charge Lisa Fintona. Today the United States Attorney’s office filed federal felony charges against former state Representative Oliver Robinson. Mr. Robinson is charged with conspiracy, bribery, and defrauding the people of Alabama and his constituents of his honest services.”
US Attorney Posey continued, “The gist of the charges are that Mr. Robinson accepted a valuable contract from a Birmingham law firm in exchange for using his position in the Alabama legislature to advocate for the position of a coal company which was a client of the law firm. To advocate for the position of the coal company in opposing a proposal from the Environmental Protection Agency to expand the area covered by the current 35th Avenue Superfund site. This proposal would have put additional Birmingham neighborhoods on a national priority list for cleanup and remediation of deposits of toxic chemicals into the soil of those neighborhoods. The communities currently covered by the superfund are the neighborhoods of Collegeville, Fairmont, and Harriman Park. The proposal would have expanded that national priority list to include Tarrant and Inglenook
Posey claimed that, “At the time of the charged conspiracy, Birmingham Law firm, Balch & Bingham represented Drummond Coal and its affiliate ABC Coke. ABC Coke had been named by EPA as potentially responsible for the cleanup of these neighborhoods And Mr. Robinson’s key act on behalf of the coal company in exchange for the contract with the law firm were to appear in his capacity as a State Representative before the Alabama Environmental Management Commission and before the Director of the Alabama Environment Management Commission to argue against EPA’s declaration and expansion of the Super Fund site argue on behalf of the interest of the coal company which potentially could be responsible for tens of millions of dollars in cleanup. Mr. Robinson did not disclose this conflict of interest either to his constituents of the Alabama Environmental Management Commission. So this is an example of a well-funded public interest to offer an irresistible inducement to a public official. In exchange that public official represented the interests of those who were paying him rather than the interests of his community and constituents here in Birmingham. In addition to the conspiracy and wire fraud count Mr. Robinson is charged with misuse of campaign contribution paid to his House campaign and for fraud relating to solicitation of private contributions to a firm he had that ran events in the Birmingham area. The last count also charges Mr. Robinson with tax evasion for his 2015 calendar year failure to report the bribes and the contract payments that were paid to him. The contracts paid to Mr. Robinson totaled $360,000.”
Oliver Robinson was a star basketball player for the University of Alabama in Birmingham (UAB).
Former state Representative Greg Wren (R-Montgomery) pleaded guilty of using his office for personal gain, former Speaker of the House Mike Hubbard (R-Auburn) was convicted of 12 felony ethics violations, and former Governor Robert Bentley (R) accepted a plea agreement on ethics and campaign finance laws. While prosecutors have successfully identified and prosecuted corrupt politicians, they have yet to indict any of the powerful power brokers who paid that tinted money to the politicians. Will this Federal Grand Jury actually indict the lobbyists, CEOs, law firms, and consultants who have made corrupting the political life of the state the focus of their career. To this point Wren, Hubbard (who is appealing his conviction), and Bentley have not served any jail time. Robinson is expected to serve prison time as part of his guilty plea. Will this Grand Jury be different on that count?
The longtime Chairman and CEO of Drummond Gary Drummond died 11 months ago. He was the richest person in the state of Alabama.
According to Drummond’s website, ABC Coke is the largest merchant producer of Foundry Coke in the United States. Typical product characteristics are 91.50 percent fixed Carbon, 8.0 percent Ash, 0.50 percent volatile matter, and 0.64 percent Sulphur. ABC operates 132 ovens with an annual capacity of 730,000 tons of saleable coke.
2016 was a record year for Drummond Coal with sales of 32.6 million tons of coal to 24 countries across the globe.
Public corruption prosecutions by the U.S. Attorney’s offices have been rare in Alabama since the bingo corruption investigation of 2010 resulted in not guilty jury verdicts against gambling boss Milton McGregor and four Alabama State Senators. Thursday’s announcement may indicate that the Sessions Justice Department intends to be more aggressive in prosecuting public corruption cases.
Original reporting by the Alabama Media Group’s Kent Faulk contributed to this report.
Tuberville calls for term limits, balanced budget and lobbying reform
Tuberville has also made a major media buy across the state to trumpet this message.
Senate candidate Tommy Tuberville’s campaign began emphasizing key structural reforms that the Republican nominee hopes to advance if elected to the U.S. Senate including congressional term limits, withholding lawmakers’ paychecks unless a balanced budget is passed and a ban on former officials becoming lobbyists.
“Only an outsider like me can help President Trump drain the Swamp, and any of the proposals outlined in this ad will begin the process of pulling the plug,” Tuberville said in a statement. “Doug Jones has had his chance, and he failed our state, so now it’s time to elect a senator who will work to fundamentally change the way that Washington operates.”
Tuberville has also made a major media buy across the state to trumpet this message.
“You know Washington politicians could learn a lot from the folks in small town Alabama, but Doug Jones … he’s too liberal to teach them,” Tuberville added.
Polls consistently show that term limits are popular with people across both political parties, but the U.S. Supreme Court has ruled that imposing term limits would be adding a qualification to be a member of Congress and that can only be done by constitutional amendment.
It is an unspoken truth that when Americans send someone to Congress they never come back. They either keep getting re-elected like Alabama’s own Sen. Richard Shelby, who is in his sixth term in the Senate after four terms in the U.S. House of Representatives. On the other hand, they may become lobbyists getting paid to influence their colleagues on behalf of corporations, foreign governments or some well funded non-government organization.
Tuberville said he would ban that practice.
A balanced budget amendment almost passed in the 1980s and again in the 1990s.
Since that failure, Congress has increasingly passed bigger and bigger budget deficits. The U.S. government borrowed more money during the eight years of President George W. Bush’s presidency than the government had borrowed in the first 224 years of the country combined.
President Barack Obama followed and the TARP program propped up the post-Great Recession economy. Rather than cutting the deficit, President Donald Trump invested billions in the military and a tax cut without cutting domestic spending. The 2020 coronavirus crisis has further grown the budget.
The government has borrowed trillions to prop up the economy and provide stimulus while investing billions into medical research and treating the virus victims. Congress is currently debating a fifth stimulus package that would add more to the deficit.
Both a balanced budget amendment and a term limits amendment would have to be ratified by the states if passed by Congress. Tuberville is challenging incumbent Sen. Doug Jones, D-Alabama.
House passes General Fund Budget
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.
Day Care bill delayed for second time on Senate floor, may be back Thursday
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.
Fantasy sports bill fails on Senate floor
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.