Connect with us

News

Unknown and unbridled by law: Economic developers set to make millions off tax incentives

Bill Britt

Published

on

Stock Photo

A new law establishing a class of individuals known as economic development professionals opens the door for profit-driven incentives paid with taxpayer funds to vaguely described, unknown agents not registered or held accountable to state law.

There are many reasons to suspect that House Bill 317 is filled with loopholes not yet fully understood by the Legislature that passed it, those responsible for policing it or the public who will supposedly benefit from it and pay for it.

One point that never seemed to enter the discussion was the fact that unlike lobbyists, this new class of economic development professionals can be paid based on a contingent fee.

As enrolled, The Alabama Jobs Enhancement Act carves out a class of economic development professionals that are no longer subject to the Alabama Ethics Act as enacted by the Republican super-majority in 2010, under the leadership of then-Gov. Bob Riley and future felon Mike Hubbard.

Under ALa. Code 36-25-23 (d) and § 36-25-18 (6) working for or being paid on contingency is strictly prohibited.

§ 36-25-23 (d) No principal or lobbyist shall accept compensation for, or enter into a contract to provide lobbying services which is contingent upon the passage or defeat of any legislative action.

§ 36-25-18 (6) A statement signed by each principal that he or she has read the registration, knows its contents and has authorized the registrant to be a lobbyist on his or her behalf as specified therein, and that no compensation will be paid to the registrant contingent upon passage or defeat of any legislative measure.

Public Service Announcement

“there is an even darker motive afoot here: some site location consultants work on commission; that is, they get paid largely or in part by a percentage of the subsidies they negotiate for the company.”

With its new class distinction, economic development professionals may be hired on a contingency contract, eliminating any risk to a principal or a lobbyist who might hire them.

HB317 allows economic and site developers to be paid based on contingent fee contracts. In other words, the more incentives an economic development professional can obtain from the state, the more money those individuals can make off the state.

According to Greg LeRoy, executive director of Good Jobs First, besides the windfall for companies who receive state taxpayer incentives to relocate a business, “there is an even darker motive afoot here: some site location consultants work on commission; that is, they get paid largely or in part by a percentage of the subsidies they negotiate for the company.” LeRoy’s research shows that a consultant, or what now passes as an economic development professional, can earn as much as 30 percent of a subsidy package.

ADVERTISEMENT

Also under HB317, the public is denied a right to know who these economic development professionals are or what they are paid for at least two years. However, according to the new stature, this period may be extended at the whim of the secretary of commerce or others.

Not allowing the public to know who is benefiting from the incentives and permitting contingent fee contracts are the two issues that were never at the forefront of discussions on HB317.

Beyond all the secrecy and profit-driven deal making is the ambiguity on precisely who is an economic development professional.

After the bill passage, State Sen. Cam Ward, R-Alabaster, took to social media to discuss that very issue, writing, “Well I think you hit the nail on the head when you asked what an economic developer is. That definition is not entirely clear if you ask me.”

“While the lobbyists and special interests were rewarded with a loophole in the ethics law, the super-majorities failed to do their jobs for the people of Alabama.”

Ward, who works in economic development and is head of the Senate Judiciary Committee, should know but freely admits the legislation as passed is unclear.

Republican-dominated state government is being pummeled in the press and on social media. Some State lawmakers who voted for the act are being called out by name, such as Senate President Pro Tem Del Marsh, R-Anniston, but most of the anger, distrust and disappointment is aimed at Gov. Kay Ivey, Attorney General Steve Marshall and Commerce Secretary Greg Canfield. Ivey and Marshall face reelection bids, and their rivals see the passage of HB317 as an opportunity to paint them as weakening the state ethics laws.

Democrat gubernatorial hopeful Tuscaloosa Mayor Walt Maddox was first to call out Ivey, and his pointed accusation is continuing with reported media by underscoring the deceptive passage of HB317.

Democrat Mayor Walt Maddox sees what lawmakers and governor can’t

The day after HB317 was sent to Gov. Ivey, Maddox wrote, “Yesterday, the majority of Alabamians went to work with the full expectation of doing their jobs. The same cannot be said about the super-majorities in the legislature which again ended another session failing to address critical needs in education, mental health, health care, corrections, and infrastructure.” In what is becoming an internet meme, Maddox said, “While the lobbyists and special interests were rewarded with a loophole in the ethics law, the super-majorities failed to do their jobs for the people of Alabama.”

In branding HB317 as weakening the state’s ethics laws to favor lobbyists and special interests, Maddox is turning Republican messaging on its head by pointing out the hypocrisy of conservatives who claimed they came to Montgomery to root out Democrat corruption. Ivey, in a recent TV ad, said she had cleaned up the messiness in Montgomery. For now, the passage of  The Alabama Jobs Enhancement Act is a dumpster fire, but it may grow as the state heads into election season which, like HB317, is unknown and unbridled.

 

Advertisement

Elections

Alabamians request more than 101,000 absentee ballots with 30 days left to apply

So far, 35,184 absentee ballots have been successfully returned for the general election.

Staff

Published

on

By

(APR GRAPHIC)

At least 101,092 absentee ballots have been requested so far in Alabama according to Secretary of State John Merrill, with just 30 days left to apply for an absentee ballot for the Nov. 3 General Election. So far, 35,184 absentee ballots have been successfully returned for the general election.

In order to protect the safety and well-being of voters, Merrill is encouraging those who are concerned about contracting or spreading the coronavirus to apply for and cast an absentee ballot.

Absentee ballot applications can be downloaded online or requested by visiting or calling your local absentee election manager’s office.

Voters may also contact the Secretary of State’s office at 334-242-7210 to request an absentee ballot application.

Due to the declared states of emergency, any qualified voter who determines it is impossible or unreasonable to vote at their polling place shall be eligible to check the box on the absentee ballot application that is most applicable to that individual. In the case none of the boxes are appropriate, voters can check the box which reads, “I have a physical illness or infirmity which prevents my attendance at the polls. [ID REQUIRED]”

For the Nov. 3 General Election, the deadline to register to vote is Monday, Oct. 19, the deadline to submit an absentee ballot application is Thursday, Oct. 29, the deadline to return an absentee ballot to the absentee election manager is the close of business Monday, Nov. 2, and the last day to postmark an absentee ballot is Monday, Nov. 2.

Voters who are eligible to vote pursuant to the Uniformed and Overseas Absentee Voting Act will have until Tuesday, Nov. 3 to postmark an absentee ballot.

Public Service Announcement

Voters concerned about COVID-19 are encouraged to select the box on the affidavit, which accompanies the absentee ballot, which reads as follows: “I am physically incapacitated and will not be able to vote in person on election day.”

Due to recently witnessed delays with the U.S. Postal Service, Merrill encourages voters interested in returning their ballot by mail to go ahead and make application for their absentee ballot. As a reminder, Merrill worked with the Legislature last year to pass Act 2019-507, allowing voters the opportunity to return their absentee ballot by commercial carrier in addition to U.S. mail.

Continue Reading

Corruption

Former Barbour County sheriff arrested, charged with taking money from sheriff’s office

Upshaw was charged with two crimes connected to taking more than $85,000 from several accounts that belong to the sheriff’s office.

Eddie Burkhalter

Published

on

(STOCK PHOTO)

Alabama Attorney General Steve Marshall on Tuesday announced the arrest of Leroy Davie Upshaw, the former sheriff of Barbour County, on charges that he used his office for personal gain. 

Upshaw, 49, surrendered to the Barbour County Sheriff’s Office on Monday and was released on bond, according to a Marshall’s office. He had served as sheriff until his term ended in January 2019. 

Upshaw was charged with two crimes connected to taking more than $85,000 from several accounts that belong to the sheriff’s office, Marshall’s office alleges. One charge alleges that he used his public office to receive personal financial gain and the other charge alleges that he used his office to obtain financial gain for members of his family. 

The Dothan Eagle reported in 2018 that Upshaw’s troubles began when the sheriff’s office was audited and cited for 11 errors, including one in which Upshaw gave himself the additional salary that had gone to the former work release administrator.

If convicted of the class B felony of using his office for personal gain, Upshaw could face up to 20 years in prison.

Continue Reading

Health

Governor: Alabama will get 1 million rapid antigen COVID-19 tests

The state is to receive the Abbott Laboratories BinaxNow rapid tests in phases over the next few months. The initial shipment is set to include approximately 96,000 tests. 

Eddie Burkhalter

Published

on

Abbott’s BinaxNOW™ COVID-19 Ag Card is highly portable, about the size of a credit card, and doesn’t require added equipment. (VIA ABBOTT)

Gov. Kay Ivey on Tuesday announced that the Trump administration is to send 1 million new rapid COVID-19 tests to Alabama, but the details on their use was still being worked out. 

Ivey’s office announced in a press release that the state is to receive the Abbott Laboratories BinaxNow rapid tests in phases over the next few months, and that the initial shipment is to be of approximately 96,000 tests. 

It was unclear Tuesday who will get the tests or whether the results will be required to be reported to The Alabama Department of Public Health (ADPH), however. In a statement Ivey said while we await a vaccine “providing Alabamians – especially our students and vulnerable citizens – with this free resource will be another critical tool in the toolbox to combat COVID-19.”

Our Office is working in coordination with Public Health as we firm up plans for distribution. We are working to ensure students and high-risk individuals have access to this resource,” said Gina Maiola, Ivey’s press secretary, in a response to APR’s questions Tuesday. 

Questions to ADPH on Tuesday weren’t immediately responded to. 

The U.S. Food and Drug Administration on Aug. 26 gave an emergency use authorization to Abbott laboratories for the rapid antigen tests, which is the first of its kind to require no lab equipment. 

The USDA on Sept. 18 reissued an emergency use declaration, changing wording to say that the tests are to be used “within the first seven days of the onset of symptoms” and that “testing facilities within the United States and its territories are required to report all results to the appropriate public health authorities.” 

Public Service Announcement

“Studies have shown that antigen levels in some patients who have been symptomatic for more than five days may drop below the limit of detection of the test. This may result in a negative test result, while a more sensitive test, such as RT-PCR, may return a positive result,” the Centers for Disease Control and Prevention said in guidance on the use of antigen tests

The Trump administration approved a $760 million contract with the company to produce about 150 million tests. 

“We’ll ship tens of millions of tests in September, ramping production to 50 million tests a month in October,” Abbott Laboratories said on the company’s website

ADVERTISEMENT

Other governors were making similar statements Tuesday about pending Abbott Laboratory tests coming to their states. 

President Donal Trump on Monday announced plans to ship 100 million of the tests to states based upon population. 

“Governors have the flexibility to use these tests as they deem fit, but we strongly encourage governors to utilize them in settings that are uniquely in need of rapid, low-tech, point-of- care tests, like opening and keeping open our K-through-12 schools; supporting critical infrastructure and first responders; responding to outbreak, specifically in certain demographics or locations; and screening of surveillance in congregate settings,” said Adm. Brett Giroir, the U.S. Department of Health and Human Services official in charge of COVID-19 testing for the White House’s coronavirus task force, speaking with Trump from the Rose Garden on Monday. 

The Abbott Laboratories rapid antigen tests, which use a swab and a small card and can provide results within 15 minutes, have some similarities to existing antigen tests now being used across Alabama, which use small machines to provide quick results. 

ADPH has struggled at times to get results from those existing rapid antigen tests, which are often used in non-traditional lab settings, such as nursing homes, universities and urgent care clinics, some of which aren’t accustomed to ADPH’s reporting process. 

Dr. Karen Landers, an assistant state health officer for ADPH, told Kaiser Health News last week that she was concerned about the undercounting of antigen test results, and that some providers were struggling to submit results.

“We can’t afford to miss a case,” Landers told the news outlet.

Continue Reading

Health

Delayed reporting caused spike in Alabama’s daily COVID-19 count

Two large labs were improperly reporting COVID-19 testing data to the Alabama Department of Public Health, and a data dump from those labs resulted in the state’s largest single day spike in new daily cases on Sept. 25.

Eddie Burkhalter

Published

on

(STOCK PHOTO)

Two large labs were improperly reporting COVID-19 testing data to the Alabama Department of Public Health, and a data dump from those labs resulted in the state’s largest single day spike in new daily cases on Sept. 25 when 2,452 cases were reported. 

Alabama State Health Officer Dr. Scott Harris told APR on Tuesday that once those two labs sent in a mass of old test results electronically to ADPH — almost all of them point-of-care antigen tests — those results caused the spike in new daily cases. 

“ADPH continues to make all efforts possible to identify new labs and bring them into the electronic reporting process in order to capture the positive and negative labs for case investigation and data accuracy,” the department said in a statement regarding the recent data dump.

In addition to the large batch of backlogged positive antigen tests on Sept. 25, the state has also begun including probable tests — largely those positives from antigen tests — in both its statewide and county-by-county data, which APR uses to populate its charts. The state began reporting probable cases and deaths on the statewide level on May 30, and began including those totals in graphs on Sept. 1.

(APR GRAPHIC)

(Because ADPH has been reporting probable cases and deaths since May 30, APR was able to adjust our charts back to May 30 beginning Sept. 1 without the addition of the probable cases causing a huge spike.)

Public Service Announcement

On the county level, though, probable cases and deaths were not reported at all until Sept. 25, when the full total of every probable case was added to county charts. The addition of those probable cases made some counties appear to have even larger spikes than the statewide increase on Sept. 25, which was already the largest increase to date because of the backlogged positives from the labs improperly reporting positives.

(The addition of the new probable cases have also affected other measures APR calculates based on those cumulative and daily totals including seven-day averages, 14-day averages and percent positivity.)

For example, many counties over the past week have reported more positive cases than total tests, which would be impossible without the data delay and the addition of probable cases. Some counties, like Lee County and Tuscaloosa County, showed such large increases on Sept. 25 that their positive totals on that day alone appear to outmatch the statewide increase.

ADVERTISEMENT

That, again, is because the statewide total was already including probable cases beginning Sept. 1 and daily probable data was available back to May 30, but county level data did not include probable cases until Sept. 25.

Harris said it’s not uncommon for some labs to hold off reporting test results for a couple of weeks, then submit them all at once. Smaller commercial labs that don’t amass many tests often wait until a batch has been accumulated to submit. 

Two labs sent in a large batch of older negative test results to the state in August, which skewed charts that use that data to track new daily tests and percent positivity. A similar artificial dip and spike in statewide COVID-19 data in early June was the result of computer system problems.

Speaking on the current state of COVID-19 in Alabama, Harris said “we’re cautiously optimistic about where we are” and noted that unlike the spike in new cases, hospitalizations and deaths statewide after Memorial Day into July, the most recent Labor Day holiday does not seem to have resulted in larger numbers.

“We did not appreciate a big spike after Labor Day, which was very, very encouraging,” Harris said.

Harris noted that the state hasn’t imposed any new restrictions since May, other than the statewide mask order in mid-July, which was followed by a decline of new confirmed COVID-19 cases.

“I will say, we still have room to improve. The hospital numbers now are about half of where they were in early August,” Harris said. “Yet they’re still a lot higher than they were back in the spring, so I wish we would continue to see more improvement, but I think we’re definitely much better than we were a couple of months ago.”

Gov. Kay Ivey’s statewide mask order is set to expire Friday, but Ivey and Harris are expected to make an announcement about whether it will be extended. Harris said Ivey’s coronavirus task force is to have a conference call Tuesday afternoon and that an announcement would likely come soon.

Continue Reading
Advertisement
Advertisement