12 felony ethics charges 2016 Alabama Supreme Court appealing bill blog convicted conviction Courts ethics laws Featured for conflicts of interest House lawmakers legislature lobbyists loosen Mike Hubbard News Rules senate State state officials though two fronts under attack

Ethics laws face challenges before Supreme Court and in Statehouse — Alabama Political Reporter

Alabama’s ethics laws are underneath assault on two fronts.

A bill shifting via the Legislature would considerably loosen the state’s “toughest-in-the-nation” ethics rules, which govern the conduct of state officials, lawmakers, lobbyists and those that hire them. In the courts, though, another problem is brewing.

Former Republican Home Speaker Mike Hubbard — convicted on 12 felony ethics expenses in 2016 for conflicts of interest and using his public office for private achieve — is appealing his conviction up to the Alabama Supreme Court, where he and his attorneys are arguing that the laws have been too strictly interpreted by decrease courts.

The Alabama Court of Legal Appeals upheld 11 of those fees in a ruling last yr, however the Supreme Court has agreed to evaluate his case, which means a last choice on Hubbard’s conviction beneath the laws he once championed might not come any time quickly.

In a gap temporary filed Monday, prosecutors in the Lawyer Common’s Particular Prosecution Divison argue that Hubbard repeatedly violated the regulation and that his convictions ought to be affirmed by the Supreme Court.

The lawyer basic’s prosecutors have requested for oral arguments before the courtroom to, they stated, “get the record straight.”

Among other expenses, a Lee County jury discovered Hubbard responsible of soliciting and receiving $150,000 in investments right into a failing printing business from 4 principals, soliciting and receiving priceless financial and business recommendation from a principal and receiving greater than $300,000 in “consulting fees” from two corporations who had business before the Alabama Legislature.


Prosecutors stated both corporations “hired Hubbard to capitalize on his position as speaker.”

“Alabama’s Ethics Law helps prohibit conflicts of interest and promote Alabamians’ confidence in the integrity of their government,” stated Lawyer Basic Steve Marshall.  “As we explained in our brief, Mike Hubbard repeatedly violated those laws, and his convictions should be affirmed.”

Hubbard stays free on attraction bond — almost three years after his conviction.

Paying full value for a factor of value

On counts 16–19, the jury discovered Hubbard guilty of illegally soliciting 4 $150,000 investments into Craftmasters from several outstanding Alabama businessmen including Great Southern Wood CEO Jimmy Rane, the state’s richest man.

Hubbard has argued, nevertheless, that the investments his printing business — Craftmasters — acquired weren’t, in reality, a factor of worth as a result of he paid “full value” for those investments.

In other phrases, Hubbard and the buyers paid and acquired no more and a minimum of what the funding was value, which is legal beneath the ethics laws, his attorneys argue.

The “paying full value” provision of the regulation ensures that lawmakers and officers can’t be prosecuted for purchasing things. Prosecutors stated the investments have been presents and favors offered to divert Hubbard’s path away from “personal and political ruin.”

Craftmasters was on the monitor to insolvency.

“Hubbard received these $150,000 checks precisely for reasons related to his public service as a public official,” prosecutors argued in Monday’s temporary. “Hubbard reminded business leaders … of all the good he had done building and sustaining ‘a 44 pro-business legislature,’ and he threatened to step down if they didn’t step up.”

Between investments Hubbard was accused of illegally asking for his Auburn-based printing firm Craftmasters, consulting contracts he funneled by means of Auburn Community Inc. and shoppers he solicited using his public workplaces, prosecutors stated Hubbard illegally made more than $2 million using his workplaces as speaker, consultant and ALGOP chair.

“The Craftmaster transactions were not arm’s length, and no one was beating down Hubbard’s door to invest in his failing business,” prosecutors stated, arguing the investments were not truthful transactions, however as an alternative offered due to Hubbard’s political office.

Principals or not?

Hubbard’s attorneys have argued the buyers — massive enterprise executives — were not principals beneath the Ethics Regulation.

The argument is just like their earlier arguments that the buyers have been “friends” and thus coated underneath a friendship exemption current in the ethics laws, nevertheless it’s totally different as a result of this studying of the regulation might have wide-ranging effects for the ethics laws as they are presently interpreted.

Hubbard and his attorneys argue that executives in corporations and organizations shouldn’t be thought-about principals — even if their organizations retain armies of lobbyists. The businesses themselves are the principals, not the individual, Hubbard argued, but that reading strays considerably from the wording of the regulation.

The Ethics Regulation defines “principal” as “[a] person or business which employs, hires or otherwise retains a lobbyist,” based on Ala. Code §36-25-1(24), and “person” can embrace a “group of persons.”

The enterprise leaders Hubbard solicited and acquired contracts, payments and investments from — including Rane and Will Brooke, a BCA government — did, in reality, hire lobbyists.

But Hubbard is arguing that an individual isn’t a principal until they’ve an individual contractual relationship with the lobbyist.

“At bottom, Hubbard is asking this Court to graft an exception into the statute that he and his former colleagues declined to enact in 2010,” prosecutors wrote, mentioning that other states have comparable exceptions, but lawmakers chose to not embrace one in Alabama’s regulation.

“And this ‘Court must apply statutory law as the Legislature wrote it,’ not as Hubbard now wishes he had,” the temporary reads, quoting from Hubbard himself.

One other thing-of-value exception

One other exception exists in the regulation that permits lawmakers and officials to obtain cash for business relationships are made beneath “circumstances that make it clear the thing is provided for reasons unrelated to the recipient’s public service as a public official.”

Hubbard is trying to use that exception to call on the courtroom to overturn two expenses that he violated the regulation by receiving lots of of hundreds of dollars from APCI — a pharmaceutical cooperative — and Edgenuity.

Hubbard was being paid $5,000 a month by APCI for consulting. The money was being despatched via his Auburn Community Inc. Hubbard acquired $210,000 from Edgenuity between April 2012 and July 2014.

Whereas the previous speaker is arguing the contracts fall beneath this exemption, the prosecutors stated they are “flagrant violations” of the ethics regulation.

APCI’s president and CEO testified that Hubbard was employed because he was speaker, which gave him the power to work together with legislators in other states.

Edgenuity’s president likewise testified that he hired Hubbard as a result of he was speaker, and Hubbard lobbied legislators from different states on Edgenuity’s behalf.

“An ordinary person exercising ordinary common sense could conclude that when companies paid Hubbard huge salaries for little work because he was Speaker, those deals were not ‘in the ordinary course of employment’ and were not clearly ‘unrelated to [his] public service’ as Speaker,” the state’s lawyer wrote in their temporary.

The state prosecutors summed it up:

In sum, Hubbard asserts (at 20) that he was just making an attempt to “make a living as other citizens do.” But personal citizens can’t earn a dwelling by way of jobs that contain minimal work and coaching over scotch. They can’t gather tons of of hundreds of dollars for sometimes calling a legislator. They can’t e mail lobbyists and anticipate riches. Briefly, personal citizens can’t use a “public office … for private gain.” Ala. Code §36-25-2(a)(three). And underneath the Ethics Regulation, Hubbard couldn’t both. Hubbard broke the regulation and betrayed the public belief. His convictions must be affirmed.

$10,000 a month to sell sippy cups

Hubbard was also found responsible of getting into into a contract for $10,000 a month “ostensibly” to assist a company sell sippy cups for Robert Abrams, the then-owner of CV Holdings and subsidiaries Capitol Cups and Si02.

He was discovered responsible of using his position, a state pc, state e mail account and his state employees to help Abrams sell his merchandise and promote his enterprise. He event received Abrams before Gov. Robert Bentley and the secretary of commerce.

General, he acquired a minimum of $220,000 from Abrams between 2012 and 2014 for “minimal work” or “no discernible work” in any respect after a sure point.

Hubbard’s argument is that there was not sufficient proof that, when he used his office to profit Abrams, he did so due to the $10,000 month-to-month checks. The previous speaker stated the jury acquired it improper — that these actions for Abrams had nothing to do with the money.

But the state argues that it introduced “direct evidence” that Hubbard used his office and time for private achieve in the form of these checks.

Hubbard’s former chief of employees, Josh Blades, testified in blistering testimony at trial that Hubbard stated “he had 100,000 reasons” to make use of the office to “get this done” for Abrams.

“Other than a confession on the stand from Hubbard himself, there could hardly be clearer evidence that he used his chief of staff’s time for his own private benefit, which would materially affect his financial interest,” the state’s attorneys wrote.

On two fronts

If the Supreme Court agrees with any of Hubbard’s legal arguments in this case, barring some slender ruling on a small inconsistency or drawback in the case, such a ruling might have a weakening impact on the state’s ethics laws.

A great ruling for Hubbard might set future precedent for instances prosecuted beneath Alabama’s ethics laws.

Ought to the courtroom agree that enterprise executives aren’t principals, it might mean that lawmakers or their businesses might obtain hefty money injections just because the executives writing the checks don’t have individualized contracts with lobbyists.

Should the courtroom agree that the investments into Hubbard’s printing business have been “paid for at full value” regardless of Hubbard not paying for the loans with cash, that might open the door for any business leader to prop up a lawmakers’ failing business for political purposes by way of loans merely based mostly on the concept a loan offers a return on funding.

Should the courtroom agree that Hubbard’s $10,000-a-month work promoting sippy cups was separate and unrelated from his work for the same company using his state workplace, that may open the door to a wealth of similar arguments from lawmakers claiming to do a business an excellent as their elected consultant whereas receiving aspect cash for a narrowly tailored consulting contract.

“In Hubbard’s view, a principal can put any or all legislators on its payroll precisely because they are legislators and those arrangements would not be ‘related to public service’ unless the contract is for ‘a quid pro quo,’” the state wrote.

At the similar time Hubbard and the state are arguing their instances to the Supreme Court, lawmakers are considering an ethics invoice that might drastically rein in Alabama’s present ethics laws in comparable methods.

The proposed bill removes the section of code that governs using a public office for personal achieve.

It also allows for unlimited presents from lobbyists or principals to public officials, modifications the principles governing lobbyists and principals and extra, as APR reported Monday.

The brand new ethics regulation would permit a company to designate any member of the group because the principal. Even if the principal, in this case, say a secretary, was discovered guilty of committing a criminal offense. The individual can’t be held criminally liable.

The burden of the offense is placed on the corporation, simply as Hubbard and his attorneys argued it must be in their courtroom filings.

Current regulation bans any presents from lobbyists and principals to public officials over $25. Underneath SB230, that ban is lifted, allowing a lobbyist or a principal to offer unlimited presents, loans or different issues of worth to a public official or their household.

Lawyer Common Steve Marshall is opposing the invoice.

New ethics regulation: A quick evaluation

Hubbard will now be given 14 days to file a reply temporary, and the Alabama Supreme Court will determine whether or not to schedule oral argument or determine the case based mostly solely on the briefs.