FROM OUR STATE HOUSE STUDIO IN MONTGOMERY, I'M TODD STACY.
WELCOME TO CAPITOL JOURNAL'S WEEK IN REVIEW.
THE WEEK WAS A BUSY ONE IN THE STATE HOUSE, AS LAWMAKERS WRAPPED UP THEIR SPECIAL SESSION FOCUSED ON ALLOCATING MORE THAN A BILLION DOLLARS IN FEDERAL AMERICAN RESCUE PLAN ACT FUNDING.
THE PROCESS FOR PASSING THE APPROPRIATIONS LEGISLATION WAS FAIRLY SMOOTH AND BI-PARTISAN.
CAPITOL JOURNAL'S RANDY SCOTT FOLLOWED THE BILL'S JOURNEY IN THE HOUSE, WHERE MEMBERS POURED OVER THE DETAILS.
>> LAWMAKERS IN THE ALABAMA HOUSE WASTE NO TIME GETTING A BILL IN THE SENATE FOR HOW TO USE FROM THE AMERICAN REAL ESTATE CUE RESCUE ACT.
>> THERE IS A COUPLE OF AMENDMENTS CHAIRMAN REYNOLDS HAS TALKED TO ME.
HE FEELS COMFORTABLE WITH IT.
WE'RE CERTAINLY TO HAVE A CONVERSATION.
>> A FEW AMENDMENTS ADDRESSING INFRASTRUCTURE PROJECTS.
FOR THOSE SMALL CITIES AND MAYBE FOR SOME OF THE LARGER.
THAT THE LANGUAGE THAT THE STATE AND THE FEDERAL GOVERNMENT IS GIVEN HIM.
BUT IF WE CAN MAKE A CLEAR STATEMENT THAT IF YOU DO NOT HAVE THIS 35% MATCHING MONEYS OR WHATEVER MATCHING MONEYS YOU MIGHT NEED THERE ARE SOME OPTIONS FOR YOU TO CONTINUE TO DO YOUR PROJECTS.
>> I REPRESENT SIX RURAL COUNTIES AND THAT AMENDMENT THAT WOULD BE EFFICIENT TO THOSE COUNTIES THAT RELATES TO THE WATER RUNOFF, STORM HAS BEEN TAKEN OUT I WAS TOLD, AND THEN THE 35% MATCH FOR RURAL COUNTIES TO APPLY FOR THESE FUNDING, LEAVE THE COUNTY I TO HAVE THAT MATCHING FUNDING.
I'M CONCERNED ABOUT THAT.
>> MEMBERS AND REACHED COMMON GROUND FOR APPROVING HOUSE BILL 1.
>> ANYTIME ANY INFRASTRUCTURE ONE TIME MONEYS THAT LITERALLY LAST A LIFETIME THAT'S A VERY VALUABLE USE OF FEDERAL DOLLARS.
I THINK THAT'S GOING TO MAKE OUR COMMUNITY STRONGER FOR MANY YEARS TO COME BOTH ON THE BROADBAND SIDE AND THE WATER INFRASTRUCTURE SIDE.
FOR CAPITAL JOURNAL, RANDY SCOTT.
AFTER HOUSE PASSAGE, THE SENATE TOOK UP THE BILL THIS WEEK, FINALLY PASSING IT WITH A 30-4 VOTE.
THE BILL WAS AMENDED, THOUGH, SO IT HAD TO GO BACK TO THE HOUSE FOR THEIR FINAL APPROVAL.
THAT HAPPENED ON THURSDAY WITH A FINAL VOTE OF 96-0 WITH SIX ABSTENTIONS.
GOVERNOR KAY IVEY, WHO ORIGINALLY CALLED THE SPECIAL SESSION IN HER STATE OF THE STATE SPEECH, SIGNED THE BILL INTO LAW THURSDAY AFTERNOON.
AS I MENTIONED, THE BILL WAS AMENDED IN THE SENATE, ONCE IN COMMITTEE AND AGAIN ON THE FLOOR.
SENATOR CHRIS ELLIOTT OF BALDWIN COUNTY PROPOSED AN AMENDMENT TO SPECIFY THAT HALF OF THE $400 MILLION IN WATER AND SEWER DOLLARS BE DEDICATED TO STORMWATER PROJECTS.
SEPARATELY, $100 MILLION OF THOSE FUNDS WOULD BE DEDICATED TO LOCAL COMMUNITIES WHO PUT UP A 35% MATCH TO GET THE FEDERAL MONEY.
ELLIOTT HAS BEEN VOCALLY CRITICAL OF HOW THE FIRST ROUND OF ARPA WATER AND SEWER INFRASTRUCTURE FUNDS WERE SPENT, SPECIFICALLY NOTING THAT NONE WENT TO HIS FAST GROWING BALDWIN COUNTY DISTRICT.
THE STATE CHOSE TO PRIORITIZE PROJECTS BY DIRE NEEDS, WITH MANY GOING TO LOW INCOME COMMUNITIES IN THE BLACK BELT.
ELLIOT SAID THAT IT'S ONLY FAIR THAT FAST GROWING COMMUNITIES WITH INFRASTRUCTURE NEEDS BE ELIGIBLE FOR AT LEAST SOME OF THAT MONEY.
>> WE SPEND A LOT OF MONEY IN WATER ON SEWER.
OR ARE GOING TO BE IN THE FUTURE.
$400 MILLION OR CLOSE TO IT IN THE SECOND TRANCHE.
WHAT WE DID IN THE AMENDMENT SIMPLY SAY OF THE $400 MILLION OR SO $100 MILLION REQUIRES A SIGNIFICANT MATCH.
SO THAT THE LOCALS TO HAVE SOME SKIN IN THE GAME TO ACCESS THAT POT OF MONEY.
SO THAT MATCH AT 35% AND WHAT WE'RE TRYING TO DO MAKE SURE THAT THE MONEY IS GOES AS FAR AS IT CAN.
BALDWIN COUNTY ADDS 8,000 PEOPLE PER YEAR.
WITH THAT MANY MORE PEOPLE COMING THEY NEED THAT WATER AND SEWER INFRASTRUCTURE AS WELL.
I WAS FRUSTRATED WITH THE ADMINISTRATION, AND HOW THEY DISBURSED THE FIRST ROUND OF MONEY.
THAT SAW THAT PHYSICAL NEED IF YOU WILL FOR INCREASED INFRASTRUCTURE.
NOT JUST MY AREA BUT AROUND THE STATE.
AND "THE WAY WE WERE" ABLE TO DO WAS PRETTY REASONABLE WHICH WAS SAYING THOSE AREAS THAT CAN PARTICIPATE TYPICALLY THOSE GROWING AREAS WILL HAVE THIS POT OF MONEY WHERE THEY CAN ACCESS THOSE FUNDS BUT ARE REQUIRED TO PUT THAT MATCH.
>> ON THE FLOOR, SENATOR RODGER SMITHERMAN OF BIRMINGHAM SUCCESSFULLY ADDED AN AMENDMENT TO ALLOW APPLICANTS FOR THESE FEDERAL FUNDS TO AMEND THEIR APPLICATIONS TO CORRECT MISTAKES LEST THEY BE DISQUALIFIED FOR A TECHNICAL ERROR.
HE SPOKE ABOUT THE NEED FOR THIS PROVISION DURING DEBATE.
THIS IS SIMPLY TO BE ABLE TO HELP MANY, MANY OF OUR SMALL TOWNS WHERE THEY DON'T HAVE THE CAPACITY OF STAFF TO KNOW WHAT TO DO, AND IT GIVES THEM SOME ADVICE TO HELP THEM SO THAT THEY WON'T LOSE THE OPPORTUNITY TO GET THE GRANT.
THERE WAS SOME CONCERNS EXPRESSED ABOUT WHETHER IT WOULD INCREASE THE NECESSARY COSTS FOR THESE AGENCIES TO DO IT.
AND THAT'S WHY YOU SEE THE LAST LINE WHERE YOU SEE IT SAYS HAS THE CAPACITY AND THE EXPERTISE AVAILABLE TO DO IT.
IF YOU'RE IN A METROPOLITAN AREA YOU PROBABLY HAVE SOMEONE WHO WILL ADDRESS THAT.
BUT OUR SMALL TOWNS CANNOT AFFORD THAT.
>> WHAT I WOULD SUGGEST WHAT YOU HAVE IN YOUR AMENDMENT IT'S ALREADY BEEN DONE.
THAT WAS DONE IN ARPA 1.
WHENEVER THOSE DIFFICULTY OR QUESTIONS I THINK ADEM HELPED ASSISTED, GUIDED, ENTITIES SO THAT APPLICATIONS COULD BE ACHIEVED.
AND I BELIEVE AND KNOW THAT THEY WILL CONTINUE TO DO THAT.
I HESITATE TO PUT THAT LANGUAGE WHICH IS ALREADY OCCURRING INTO STATUTE.
AS PART OF THE SPECIAL SESSION, THE LEGISLATURE ALSO PASSED A BILL TO REPAY $59 MILLION TO THE ALABAMA TRUST FUND.
ABOUT 10 YEARS AGO DURING DIFFICULT FINANCIAL TIMES, THE LEGISLATURE AND STATE VOTERS CHOSE TO BORROW ABOUT $400 MILLION FROM THE ALABAMA TRUST FUND TO HELP FILL HOLES IN THE BUDGET AND AVOID CATASTROPHIC CUTS.
BUT THEY ALSO PROMISED TO PAY THE MONEY BACK WHEN REVENUES RETURNED, WHICH THEY HAVE DONE YEAR BY YEAR.
THIS MARKS THE FINAL PAYMENT BACK TO THE ALABAMA TRUST FUND.
THE BILL PASSED UNANIMOUSLY IN BOTH CHAMBERS, WHICH LAWMAKERS SAID SHOWED THAT THE STATE WILL ALWAYS PAY ITS DEBTS.
SENATOR CLYDE CHAMBLISS OF PRATTVILLE NOTED THAT BUDGET REFORMS HAVE BEEN PUT IN PLACE TO PREVENT THE NEED FOR SUCH BORROWING IN THE FUTURE.
THIS IS NOT A HISTORIC DAY YET, BUT THIS IS PART OF THE HISTORIC PROCESS THAT'S GOING TO GO TO FINALLY REPAY THE DEBT THAT WE OWE.
WE AS CITIZENS OF THE STATE OF ALABAMA, AND FORTUNATELY WE OWE IT TO OURSELVES THANKS TO THE FORETHOUGHT OF MANY, MANY PEOPLE THAT CAME BEFORE US, AND PUT IN THE TRUST FUNDS SO MANY YEARS AGO.
WE'RE BLESSED AS A STATE TO HAVE THAT AND WE SHOULD ALWAYS PROTECT THAT.
THIS IS A STEP IN OUR ACKNOWLEDGMENT THAT THAT IS A GOOD THING AND WE WANT TO PROTECT IT.
SO WHEN THIS BILL IS PASSED AND WHEN IT'S SIGNED INTO LAW IT WILL BE A CULMINATION OF A LOT OF THE SENATORS AND BARRAGE EXECUTORS THAT HAVE PUT TIME, MONEY AND EFFORT TO HAVE $60 MILLION.
IT WASN'T THAT LONG AGO THAT WE DIDN'T HAVE $60 MILLION.
WE WERE $250 MILLION IN THE HOLE TRYING TO FIND MONEY, TRYING TO FIND WAYS WE CAN BALANCE THE BUDGET.
AND THROUGH YOUR LEADERSHIP, OTHER LEADERS, SENATOR ORR AT A TIME.
SENATOR PITTMAN, AND SENATOR CLOUSE.
AND OUR WE'RE IN THIS POSITION.
THERE WAS BIG NEWS ON THE PRISON FRONT THIS WEEK.
WE'LL START WITH THE STATE'S ONGOING PLANS TO BUILD TWO NEW MEGA PRISONS TO REPLACE CURRENT OLD, UNSAFE FACILITIES.
THE COST FOR ONE OF THOSE PRISONS HAS INCREASED DRAMATICALLY.
THE ALABAMA PRISON FINANCE AUTHORITY VOTED TO INCREASE BY $300 MILLION WHAT THE STATE CAN SPEND ON BUILDING A NEW 4,000-INMATE PRISON IN ELMORE COUNTY.
THE AMOUNT WENT FROM $623 MILLION TO $975 MILLION.
ASKED ABOUT THE INCREASE, SENATE GENERAL FUND BUDGET CHAIRMAN GREG ALBRITTON POINTED TO INFLATION.
>> THAT'S WHAT INFLATION DOES.
IT'S NOT -- THE PRISON RECOGNIZE ARE A REFLECTION OF THAT IT'S A GREAT REFLECTION.
I DON'T MEAN GREAT IN GOOD BUT GREAT ENLARGE.
WE'RE SEEING THAT FROM EGGS, TO CARS TO GAS.
I DON'T KNOW HOW YOU DEAL WITH INFLATION.
THAT'S THE PLAGUE THAT WE HAVE UPON US.
THAT'S BEEN GIVEN TO US BY THE FEDS.
THAT'S THE GREATEST GIFT I GUESS.
BUT ANYWAY, IT'S HARMFUL.
IT'S HURTING US.
IT'S EATING AWAY AT OUR RESOURCES.
THE ALABAMA DEPARTMENT OF CORRECTIONS THIS WEEK ANNOUNCED A HEFTY PAY RAISE FOR PRISON GUARDS.
IT'S AN EFFORT TO RECRUIT MORE GUARDS AND OTHER PERSONNEL TO FILL A DIRE SHORTAGE.
KAREN GOLDSMITH HAS THAT STORY.
>> IT'S BEEN WELL DOCUMENTED THAT FEDERAL JUDGE MY RON THOMPSON HAS MANDATED ALABAMA'S DEPARTMENT OF CORRECTIONS TO HIRE MORE CORRECTIONS OFFICERS.
CORRECTIONS COMMISSIONER JOHN HAMM SAYS THEY HAVE FUNDING FOR 688 MORE BUT LABOR SHORTAGES AND THE DANGEROUS WORK CONDITIONS AND BETTER BENEFITS HAVE MADE MEETING THAT REQUIREMENT DIFFICULT.
WE DON'T COMPETE WITH OTHER STATE CORRECTIONAL DEPARTMENTS.
WE COMPETE WITH THE CITY POLICE DEPARTMENTS AND THE COUNTY SHERIFF'S OFFICES.
>> IN THIS CONVERSATION AND AT A RECENT BUDGET HEARING HAMM SHARED HE SEES LIGHT AT THE DARK TUNNEL.
WE WERE LOSING MORE PEOPLE THAN WE WERE BRINGING IN.
LAST QUARTER THAT NUMBER LEVELED OFF.
THAT IS A HUGE VICTORY FOR US.
>> AND A FEW DAYS AFTER THIS BRIEFING THE DEPARTMENT ANNOUNCED PAY INCREASES FOR ALL CORRECTIONS OFFICERS.
>> THIS IS AN ENTICEMENT AND WE FEEL IT WILL INCREASE OUR NUMBERS.
ALL THESE OTHER THINGS WE WERE DOING IT WAS NOT MOVING THE NEEDLE.
SO THIS IS THE NEXT STEP.
THE $55,855.
AT THE MEDIUM SECURE FACILITIES $53,244 AND THE COMMUNITY RELEASE CENTERS IT'S $50,712.
THERE'S A 27% INCREASE AFTER 18 MONTHS.
THE LOWEST USED TO BE $33,381.
AND DOC SUPPORTS STAFF MEMBERS WHO WORK AT THE MEDIUM AND MAXIMUM SECURITY PRISONS WILL ALSO BE PAID MORE.
THE COMMISSIONER SAYS THAT THE TOTAL COST IS FOR THE PAY ESCALATIONS IS A $13 MILLION.
IT IS A GREAT OPPORTUNITY FOR SOMEONE TO GET IN TO PUBLIC SERVICE AND PUBLIC WORK.
IT IS A VERY COMPETITIVE WANING NOW.
IT'S A CAREER PROGRESSION UP TO THE WARDEN IS OUTSTANDING RIGHT NOW.
MOST PEOPLE WHEN THEY GET IN A CAREER THEY WANT TO GO UP TO THE LADDER.
FOR MORE INFORMATION GO TO DOC.STATE.U.S.
>> ALABAMA WON BIG AT THE ACADEMY AWARDS EARLIER THIS WEEK.
BIRMINGHAM NATIVE DANIEL SCHEINERT TOOK HOME THE OSCAR FOR BEST DIRECTING ALONGSIDE HIS CREATIVE PARTNER.
AND PAUL ROGERS, ALSO FROM BIRMINGHAM, WON THE OSCAR FOR BEST EDITING ALL FOR THE FILM "“EVERYTHING, EVERYWHERE, ALL AT ONCE"” AND WE HAVE TO ESPECIALLY BRAG ON PAUL ROGERS BECAUSE HE PREVIOUSLY WORKED HERE AT ALABAMA PUBLIC TELEVISION AS A DOCUMENTARY EDITOR.
HOW ABOUT THAT.
CONGRATS, FELLAS.
WE'LL BE RIGHT BACK WITH TONIGHT'S GUESTS.
>> JOINING ME NEXT IS A ATTORNEY GENERAL'S STEVE MARSHALL.
MR. MARSHALL THANKS FOR COMING ON THE SHOW.
>> GOOD TO BE HERE.
>> LOTS OF TOPICS AS WE WERE SHARING BEFORE WE WENT LIVE.
I WANT TO TALK ABOUT A PRISONER RELEASE SITUATION.
IT WAS A MONTH AGO WHERE THE SITUATION EMERGED FROM A LAW THAT WAS PASSED IN 2021 HUNDREDS OF ALMOST 500 I THINK PRISONERS GOT OUT OF PRISON BEFORE THEIR END OF SENTENCE WITH ANKLE MONITORS.
AND THE REASON WAS SAYING THAT -- WELL, IF WE MONITOR THEM MAYBE THEY'LL END UP BACK IN JAIL.
>> THIS BILL WAS PROPOSED BACK IN 2019 AND 2020 BY SENATOR WARD WHEN HE WAS THERE AND OBVIOUSLY WAS PLACED IN THE CALL BY THE GOVERNOR.
WE'VE BEEN VOCAL SINCE THE BEGINNING.
NUMBER ONE, THIS WAS GOING TO MAKE THE LAW THAT PASSED IN 2015 RETROACTIVE WHICH MEANS WE'RE GOING TO CAPTURE SIGNIFICANT NUMBERS COMING OUT COMPARED TO THE TRICKLE IF YOU WILL BEFORE.
MORE PRINCIPALLY IT WAS GOING TO CAPTURE VIOLENTLY OFFENDERS AND THE QUESTION WAS WHY DO WE WANT TO RELEASE THEM EARLY AS OPPOSED TO MORE OF A FEDERAL MODEL.
I DON'T HAVE A PROBLEM WITH THE SUPERVISION.
WHERE THAT SUPERVISION OCCURS.
UNDER THIS BILL THAT THIS PASSED IT WAS SHORTENING FOR TO GO TO SUPERVISION PUT TO A FEDERAL MODEL YOU SERVE YOUR MODEL AND YOU COME OUT TO SUPERVISION.
THAT WAS THE FIRST QUESTION.
SECOND, IS SIMPLY THE CAPACITY WE HAVE TO ABSORB THESE NUMBERS INTO THE SYSTEM YOU REFERENCED IT WAS 500.
AND THAT IS SIGNIFICANTLY MORE THAN WE'VE EVER SEEN.
IN MANY RESPECTS WHEN WE LOOK AT THIS LONG WHEN WE DISCUSS IT IT'S DRIVEN BIURET RICK AS OPPOSED TO FACTS.
NUMBER ONE ALABAMA HAS NEVER HAD TO SUPERVISOR VIOLENT OFFENDERS IN A WAY WE'RE DOING IT.
THERE'S NATIONAL DATA WHAT WERE THE RATIOS FOR VIOLENT OFFENDERS PER SUPERVISING OFFICER.
LAST FISCAL YEAR TO THIS FISCAL YEAR IT WAS ALMOST A 22% REDUCTION IN THE NUMBER OF PEOPLE DOING SUPERVISION.
WE HAVE LESS INDIVIDUALS ABLE TO DO MORE SUPERVISION WITH MANY MORE COMING OUT.
IF YOU SEE THEM COMING TO THE BIRMINGHAM DISPROPORTIONATE THAT HAD COMMITTED MURDERS, ROBBERIES OR RAPE.
AND THOSE WERE BEING INSERTED TO OUR SYSTEM.
WHILE I CAN RESPECT THAT THE LAW ITSELF DOESN'T SAY THEY'RE GOING TO BE UNDER AN ANKLE MONITOR THE FOR A LONG TIME.
BUT AN ANKLE MONITOR DOESN'T KEEP YOU FROM COMMITTING A CRIME.
IT JUST TELLS YOU WHERE THEY ARE MAYBE WHEN THEY COMMIT A NEW CRIME.
TO KNEE NEEDS TO BE WITHIN THE NARRATIVE WHAT'S OUR CAPACITY TO SUPERVISOR AND WHAT IS DOES THE DATA WHAT'S APPROPRIATE TO DO AND HOW TO KEEP THE COMMUNITY SAFE.
I KNOW IF THEY'RE IN PRISON I KNOW WHAT THEY'RE DOING, AND WHERE THEY ARE.
WHEN THEY'RE RELEASED INTO THE COMMUNITY WE DON'T ALWAYS KNOW THAT.
BUT FOR THE FIRST TIME AS A RESULT OF THIS BILL MANY OF THOSE ARE NOW INCLUDING VIOLENT OFFENDERS.
>> SO IF I HEAR YOU CORRECTLY DOES THAT MEAN CHANGING THE END OF SENTENCE POLICIES IN ALABAMA LAWS IN ALABAMA.
THAT'S WHAT I KEEP HEARING FROM CHAIRMAN HILL AND WARD.
MAYBE THE FEDERAL MODEL YOU'RE WOULD REQUIRE A CHANGE TO LAW WHEN YOU COMPLETE YOUR SENTENCE THEN YOU ARE STILL SUBJECT TO MONITORING MAYBE FOR THOSE VIOLENT OFFENDERS.
I WOULD US EXAMPLE SOUP TO NUTZ WHERE WE ARE WITH CRIMINAL JUSTICE.
THAT'S THE OVERLAY OF THESE ONE OFF BILLS.
FOR EXAMPLE, GOOD TIME CREDIT COMES INTO PLAY AS IT RELATES TO RELEASE AND OBVIOUSLY THAT'S A LITTLE BIT OF A DISCUSSION.
SO A 15-YEAR SENTENCE WHEN SOMEONE MAXED OUT GOOD TIME CREDIT IT GOES DOWN TO 4 YEARS.
IT GETS REDUCED TO 3 YEARS AND MONTHS SEVEN MONTHS.
IS 3 YEARS AND 7 MONTHS TRULY WHAT SOMEBODY SHOULD SERVE BEHIND BARS.
THEY'RE GOING TO TELL YOU NO.
THAT'S NOT AN APPROPRIATE SENTENCE.
WHAT I WOULD LOVE US TO BE ABLE TO LOOK WHAT SHOULD SENTENCING BE IN ALABAMA.
WHAT DOES A SENTENCE ACTUALLY MEAN WHEN A JUDGE YOU'RE GOING TO SERVE X NUMBER OF YEARS AND HOW DO WE ALLOW FOR PUBLIC SAFETY TO BE ENHANCED CONSISTENT WITH THIS IDEA BEFORE SUPERVISION OCCURRING BUT OCCURRING ONCE SOMEONE HAS PAID THEIR DEBT.
AS WE CONTINUE TO DO THESE ISOLATED OR USE THAT EDUCATIONAL INCENTIVE TIME WHEN WE PUSHED BACK ON GIVING THAT THOSE SUBJECT TO RAPE OR ROBBERY.
THEY SHOULDN'T BE ABLE TO TAKE SOME ACADEMIC CREDIT AND REDUCE THE TIME THE TIME BEFORE THEY COME OUT FOR PAROLE.
LET'S TAKE A LOOK AT THE ENTIRE CRIMINAL JUSTICE SYSTEM AND HOW DO WE DO SENTENCING WELL.
>> I LOOK FORWARD TO THAT PANEL DISCUSSION.
MOVING ON I WANT TO TALK ABOUT GANG VIOLENCE.
IN ALABAMA AND HOW MAYBE OUR STATUTES AREN'T UP-TO-DATE TO MAYBE GIVE US THE TOOLS TO DEAL WITH GANG VIOLENCE.
WALK ME THROUGH WHAT YOU WANT TO SEE HAPPEN.
>> NUMBER ONE TO SEE WE SEE THE RISE IN VIOLENCE IN SOME OF OUR MAJOR CITIES AND SOME OF THE RURAL AREAS.
TELLING THE GANG MEMBERS TO STAND DOWN BECAUSE IT WAS DRIVING SOME OF THE VIOLENT ACTIVITY IN THEIR COMMUNITY.
>> WOW A PUBLIC CRY FOR GANG ACTIVITY.
AND LAW ENFORCEMENT KNOWS THAT'S GOING GOING WHY DON'T WE GIVE THAT TO LAW ENFORCEMENT.
THAT ALABAMA WOULD BECOME IN LINE WITH OTHER STATES.
TO DEFINE A GANG.
WE'RE NOT JUST BLOODS AND CRIPS, MS13.
IT'S 3 OR MORE PEOPLE TO COME TOGETHER TO COME TOGETHER FORBAD THING.
MANY OF US DON'T UNDERSTAND.
IT'S BASICALLY A GROUP OF PEOPLE COMING TOGETHER FOR A CORPORATE CRIMINAL ACTIVITY TO FURTHER THE INTEREST OF THE GANG, THE POWER OF THE GANG THEY'RE ENGAGING IN VIOLENT ACTS OR PROPERTY CRIMES AGAINST THEIR COMMUNITY.
WE DEFINE WHAT A GANG MEMBER IS AND WHILE THE COURT WHETHER YOU'RE IN A GANG OR WHETHER YOU'RE NOT.
IF YOU'RE A GANG MEMBER INVOLVED WITH A GANG COMMITTING CRIME.
SO THAT WE'RE RAISING A CLASS C TO CLASS B TO A CLASS A.
LET'S CREATE MANDATORY MINIMUMS.
IF YOU'RE GOING TO ENGAGE IN GANG ACTIVITY AND YOU'VE GOT A GUN AND MAKE SURE YOU SERVE A MINIMUM AMOUNT OF TIME.
IF YOU BRANDISH THAT GUN AND FIRE THAT GUN IN A COURSE OF ACTIVITY WE CREATE A HIGHER OFFENSE.
WE WANT TO DISINCENTIVE TO IN GAJRE IN THAT ACTIVITY.
THESE REVENGE CRIMES.
THE GANG FEELS DISRESPECTED OR ONE OF THEIRS GANG MEMBERS HAS BEEN HARMED AND THEY GO BACK FOR RETRIBUTION.
AND ALABAMA DOESN'T HAVE THAT TOOL CURRENTLY.
THIS IS A WAY TO GIVE PROSECUTORS AND LAW ENFORCEMENT AN OPPORTUNITY TO COMBAT THIS PROBLEM.
>> YOU THINK WE'RE GOING TO SEE LEGISLATION SOON.
>> YEAH.
>> WELL, THAT KIND OF BRINGS ME TO THE CRIME MORE GENERALLY.
KIND OF ZOOMING OUT A BIT.
STEVEN KLEIN WROTE THIS ARTICLE THE OTHER DAY.
IT KIND OF WENT THE GAMET OF THE CRIME ISSUE IN TERMS WHAT THE DATA SAYS.
DATA CAN BE TOUGH.
BUT VIOLENT CRIME HAS BEEN INCREASING.
BUT THE SORT OF THE PERCEPTION VERSUS REALITY.
JUST BECAUSE THE DATA SAYS ONE THING IT KIND OF FEELS LESS SAFE OUT THERE.
IT FEELS MORE VIOLENT TO THE POINT WHERE CONGRESS OVERTURNS THESE PENALTY DECREASES THAT THE D.C. CITY COUNCIL PASSED.
DEMOCRATIC SENATE, AND DEMOCRATIC PRESIDENT.
CAN YOU COMMENT ON THAT.
YEAH IT DOES FEEL SOMETIMES MORE VIOLENT MAYBE THE DATA ISN'T EXACTLY REFLECTING THAT.
>> IT'S THE PRINCIPLE ISSUE THAT PEOPLE STOP AND TALK TO ME TO ME ABOUT.
IS WHAT ARE WE DOING TO COMBAT CRIMINAL ACTIVITY.
THAT'S REAL.
THAT'S NOT DRIVEN BY SOME POLITICAL NARRATIVE.
THAT'S BASED ON WHAT THEIR PERCEPTION BASED ON THEIR COMMUNITIES.
WE NEED TO LOOK NO FURTHER WITH THE BIRMINGHAM WITH THE RECORD YEARS OF HOMICIDES.
BIRMINGHAM WITH A POPULATION THAT'S DECREASED.
AND EVEN IN SOME RESPECTS HOMICIDE DATA IS MISLEADING WE'VE GOT GREAT DOCTORS OUT THAT SAVE LIVES WHEN SOMEBODY GETS SHOT.
IT'S NOT JUST LOST THEIR LIVES.
WHO'S BEEN HARMED AS A RESULT OF VIOLENT ACTIVITY.
THOSE NUMBERS AREN'T DECREASING.
WE SAW A VERY SIGNIFICANT DOWNWARD TREND SINCE THE '80s.
BUT IT COINCIDED WHEN JEFF SESSIONS BECAME OUR ATTORNEY GENERAL DURING THE BEGINNING OF THE TRUMP ADMINISTRATION.
CRIME DATA LAGS BEHIND A LITTLE BIT.
PARTICULARLY OUR ASSESSMENT OF PROPERTY CRIMES AND NONVIOLENT OFFENSES AND SO WHEN YOU'RE LOOKING AT CRIME DATA OUT THERE YOU'RE LOOK AT A SNAPSHOT 18 MONTHS AGO.
IF FOLKS REMEMBER THERE WAS A THIS LITTLE THING WAS COVID.
COVID ITSELF WAS A RESPONSIBLE FOR REDUCTION IN PROPERTY CRIMES.
WHAT I CAN TELL YOU THERE'S A TAN JULY PERCEPTION OF THE PEOPLE OF THE STATE AND THE NATION THAT BELIEVE WE'VE GOT TO DO SOMETHING ABOUT OUR CRIME PROBLEM.
THAT'S WHY I'M HAVING THESE DISCUSSIONS WE CAN'T RETREAT FROM THINGS THAT HAVE WORKED OR GIVING TOOLS TO PROSECUTORS AND LAW ENFORCEMENT TO BE ABLE TO COMBAT THIS ISSUE.
>> CERTAINLY NOT -- OBVIOUSLY THEY'RE TALKING ABOUT REDUCING PENALTIES FOR CARJACKINGS.
CERTAINLY THERE'S A PERCEPTION THEY DON'T WANT TO RETREAT FROM THESE PENALTIES AND THINGS LIKE THAT.
>> WE SAW LAX POLICIES OF PROSECUTORS.
THINK OF ABOUT SAN FRANCISCO.
IN CHICAGO.
IN NEW YORK WHERE NOW WE'VE HAD RECALLING OF PROSECUTORS.
WE'VE HAD PROSECUTORS THAT ELECTED INTO REFORM THE SYSTEM.
I'M A BIG BELIEVER IN THE BROKEN WINDOWS NEW YORK YOU SO SUCCESSFULLY REDUCED CRIME YEARS AGO.
I THINK PEOPLE ARE SEEING THERE'S VALUE IN MAKING WE HOLD PEOPLE ACCOUNTABLE AND WE DO THAT IN A SIGNIFICANT WAY.
>> WHILE I'VE GOT YOU I WANTED TO HIT ON THIS ESG.
BASICALLY COMPANIES CHOOSING TO FOCUS ON CLIMATE CHANGE FOR EXAMPLE OR SOCIAL JUSTICE OR WHAT HAVE YOU KIND OF POLITICAL IDEOLOGIES WITH THE IDEA THAT WHEN THEY DO THAT IT WILL APPEAL TO THEIR CUSTOMERS OR INVESTORS.
BUT IT'S TAKEN A LIFE OF ITS OWN EVEN TO THE PUBLIC RETIREMENT REALM.
I KNOW YOU'VE INJECTED IN THAT ISSUE.
CAN YOU TALK ABOUT THE ESG AND YOUR POSITION.
>> THERE'S BEEN A MULTI-PRONGED ATTACK.
WE SAW THAT VERY TANGIBLY HERE IN ALABAMA THE MOST RECENT BOND ISSUE TO BUILD THE NEW PRISON.
WE WEREN'T ABLE TO ACQUIRE ALL OF THE CREDIT RATING TO GET BECAUSE ON THE LEFT PUSHED AGAINST ALABAMA'S EFFORT UNDER THIS GUISE OF OVERINCARCERATION OR SOMEHOW OR OTHER WE WEREN'T CRIMINAL JUSTICE RIGHT.
ESG IS ACCESS TO THE MARKET FOR FINANCING.
WE SEE THAT FOR US IN ALABAMA IT WAS VERY MUCH AN ADVERSE RESPONSE WHAT SHOULD HAVE BEEN TRADITIONAL FINANCING ISSUES A VERY EASY BOND ISSUE TO EXECUTE.
WE SEE IT ON ALL LEVELS.
BUT OUR WORK NUMBER ONE HAS BEEN AROUND PROTECTING HARDWORKING ALABAMIANS AND INVESTMENT ACCOUNTS.
WE HAVE A BIDEN THAT WANTS TO GIVE PROTECTION TO INVESTOR TO INVEST IN ESG WHEN THEY MAY NOT HAVE THE BEST RETURN.
>> AND SO MY EFFORT AND MY WORK IS TO MAKE SURE WE PRESERVE THIS CONCEPT WHAT A FIDUCIARY IS.
FIDUCIARY DESIGNED TO ADVANCE THEY THE FINANCIAL INTEREST OF WHOM THEY REPRESENT.
WE DON'T ALLOW FOR THESE SUBJECTIVE CRITERIA TO BE APPLIED TO CITIES AND COUNTIES WITH REGARD TO THEIR CREDIT RATING TO IMPOSE CERTAIN REQUIREMENTS ON CITIES AND COUNTIES THAT AREN'T A PART OF THE ALABAMA LAW.
BEYOND THAT AT THE NATIONAL LEVEL IS THE ANTITRUST WORK TO SEE WHETHER THERE'S A COMBINING TO CONTROL TRILLIONS OF DOLLARS OF ASSETS TO IMPOSE AN AGENDA IS OTHERWISE IS INCONSISTENT WITH THE LAW.
I THINK IT'S AN ISSUE YOU'RE GOING TO SEE A LOT ABOUT.
>> I HEAR YOU.
THE ONE PLACE I'M NOT REALLY SURE ABOUT IS LIKE IF IT INVOLVES GOVERNMENT IF THERE'S ANY KIND OF GOVERNMENT PRESSURE IT SHOULDN'T BE INVOLVED.
BUT IF I HAVE A COMPANY AND I WANT TO BE INVOLVED IN ESG AND BE SOCIALLY WOKE AS A COMPANY.
WHERE ARE THE LIMITS OF WHAT YOU OR OTHER ATTORNEY GENERAL'S OR THE STATE CAN DO IN ADVANTAGING WHAT YOU WANT IN LIMITING BUT NOT ENCROACHING ON PRIVATE RIGHTS.
I THINK THAT THE MARKET OUGHT TO WORK.
IF YOU'RE A PRIVATE INVESTOR YOU CAN INVEST IN ALL OF THE ESG INVESTMENTS THAT YOU WANT.
>> THAT'S YOUR CALL.
>> BUT THE ISSUE BECOMES I SAY THAT THE SAFE HARBOR RULE.
>> THIS IS LABOR DEPARTMENT.
>> SO SAFE HAIR BURR INSTANCES LATES SOMEBODY FROM LIABILITY.
IF YOU'RE AN AVERAGE ALABAMIAN THAT'S TRUSTING THAT INVESTMENT FIRM TO INVEST YOUR MONEY YOUR DESIRE IS TO MAKE SURE YOU'VE GOT THE MOST RETURN FOR YOUR RETIREMENT.
IF THAT INVESTMENT ADVISOR HAS A DIFFERENT AGENDA SAY CLIMATE CHANGE AND THEY WANT TO INVEST IN ESG INVESTMENTS THAT ADVANCE THEIR VERSION OF WHAT CLIMATE CHANGE IS.
THEN THAT SHOULDN'T BE ALLOWED.
BUT THAT INVESTMENT ADVISOR SHOULD BE NOT TO CREATE SOME OTHER SOCIETAL CHANGE THAT THEY THINK WOULD BE GOOD FOR THE GREATER GOOD.
OUR GOAL TO INDIVIDUAL INVESTORS HAVE FULL DISCLOSURE WHAT'S GOING ON.
SECOND, WE MAKE THAT SURE THERE'S NOT SOME GOVERNMENT MANDATE THAT IS INCONSISTENT WITH THE RETURN THE FIDUCIARY OBLIGATION DIRECTLY TO THE INVESTOR.
I THINK YOU'RE GOING TO HEAR THIS FLESHED OUT IN LOTS OF WAYS AND LOTS OF AREAS.
I THINK SOME OF THE INVESTIGATIONS WE'RE OPERATING WILL ILLUSTRATE THE ISSUE FOR THE PEOPLE OF THIS STATE.
WE'RE GOING TO TALK TO SCOTT LATHAM ABOUT THE SILICON VALLEY BANK.
>> EXHIBIT A OF THE DISCUSSION.
>> WE'RE OVER TIME.
BUT I APPRECIATE YOU COMING ON THE SHOW.
>> ATTORNEY GENERAL STEVE MARSHALL.
WE'LL BE RIGHT BACK.
>> JOINING ME NEXT IS DR. SCOTT HARRIS PUBLIC HEALTH OFFICER FOR THE STATE OF ALABAMA.
>> THANKS FOR COMING ON THE SHOW.
>> THANKS FOR HAVING ME.
>> WE USED TO DO IT EVERY WEEK.
>> WELL WE'LL GET TO SOME COVID STUFF IN A MINUTE.
BUT I WANTED TO HAVE YOU ON BECAUSE THE DEPARTMENT OF PUBLIC HEALTH IS PART OF THIS PROGRAM MOVEMENT TALKING ABOUT FENTANYL AND GETTING OUT THE WORD ABOUT THE DANGERS OF FENTANYL AND IT'S CALLED ODDS ARE.
MEANING THE ODDS ARE THAT THIS DRUG THAT YOU'VE ACQUIRED FROM THE BLACK MARKET IS PROBABLY LACED WITH FENTANYL WHICH IS A SCARY CONCEPT.
CAN YOU TALK ABOUT THIS ISSUE AND WHY PUBLIC HEALTH DECIDED TO GET INVOLVED.
>> ODDS ARE IS A CAMPAIGN DONE BY SEVERAL GROUPS.
BUT ALSO SOME OTHER MEDICAL SOCIETIES, ASSOCIATIONS THE HOSPITALS ASSOCIATIONS PLAYED A BIG ROLE AND MENTAL HEALTH DEPARTMENT OF MENTAL HEALTH AS WELL.
WHAT WE WANT PEOPLE TO BE IN THE PUBLIC TO BE AWARE HOW MUCH FENTANYL THERE IS.
IT'S AN INCREDIBLY DANGEROUS DRUG.
AND IT'S VERY DANGEROUS IN SMALL QUANTITIES.
YET WE'RE SEEING IT ALL OVER THE PLACE.
IT'S MAYBE 50 TIMES MORE POTENT THAN HEROIN.
MORE THAN 100 TIMES MORE POTENT THAN MORPHINE.
PEOPLE BUY A PILL OFF THE INTERNET TO KEEP THEM AWAKE.
OR IT'S SOME OTHER TO ALTER THEIR CONSCIOUS.
BUT THESE THINGS TURN OUT TO BE LACED WITH FENTANYL IN A LOT OF CASES.
IT'S REALLY RESULTED IN TERRIBLE OUTCOMES.
>> OVERDOSES AND DEATHS.
>> SINCE 2018 WE'VE HAD A 3,000% INCREASE IN EMERGENCY ROOM VISITS RELATED TO FENTANYL.
200% FOLD INCREASE IN DEATHS.
IT'S NOT JUST IN ALABAMA IT'S ALL OVER THE COUNTRY.
YOU KNOW THERE'S NO QUALITY CONTROL WHEN YOU'RE MAKING ILLEGAL DRUGS IN YOUR BASEMENT.
THEY PUT SOME OF THIS IN THERE BECAUSE IT MAY GIVE THEM A LITTLE BIT MORE ADACKETED OR GIVE THEM A LITTLE BIT MORE BUZZ.
OBVIOUSLY THEY DON'T CARE ABOUT PEOPLE'S SAFETY.
PEOPLE ARE DYING.
AND PEOPLE THAT ARE EXPERIMENT BE WITH THESE THINGS AND/OR PEOPLE USING DRUGS FOR THE FIRST TIME.
IT'S BEEN A TRAGIC SITUATION.
>> WE HAD THIS WHOLE EPISODE DEAD CADE TO PREVENTION AND TREATMENT FOR OPIOIDS.
I REMEMBER SOME OF THE DOCTORS IN LAW ENFORCEMENT TALKING ABOUT IT'S LIKE IF A STUDENT OUT THERE IS TRYING TO GET A AN ADDERALL PILL OR XANAX.
IT CAN BE LACED WITH FENTANYL AND JUST ONE PILL THAT COULD BE IT.
>> THAT'S EXACTLY RIGHT.
NOW THESE PRESCRIPTIONS DRUGS ARE WELL-KNOWN PRESCRIPTION DRUGS.
PEOPLE MANUFACTURE THINGS TO LOOK EXACTLY LIKE THEM.
THEY MAKE IT IN THE MANUFACTURING TO BE A COUNTERFEIT VERSION SO YOU CAN FOOL PEOPLE INTO THINKING IT'S THE REAL DRUG.
UNFORTUNATELY MANY TIMES IT'S FENTANYL.
>> SWITCHING GEARS I WANT TO TALK ABOUT COVID AND I HAVE THE TIME HOP ON MY PHONE.
RIGHT AROUND NOW BACK IN 2020 WHEN WE WERE STARTING THE COVID -- THE EFFECTS OF IT AND IT BECAME REAL.
IT'S BEEN THREE YEARS.
THE PUBLIC HEALTH EMERGENCY IS ABOUT TO EXPIRE.
THE FEDERAL ONE.
WHAT HAPPENS WHEN THAT OCCURS?
>> THAT'S RIGHT.
IT BEEN THREE YEARS AGO THIS WEEK WE HAD OUR FIRST CASE IN ALABAMA.
BUT THE FEDERAL PUBLIC HEALTH EMERGENCY HAS BEEN IN PLACE BEFORE WE HAD OUR FIRST CASE HERE IN ALABAMA.
IT'S ALLOWED FEDERAL GOVERNMENT TO GO OUT AND BUY BUY VACCINES AND MONOCLONAL ANTIBODIES TO GIVE THEM AWAY FOR FREE TO THE PUBLIC WHO USES THEM.
THAT'S GOING TO EXPIRE THE SECOND WEEK OF MAY.
THE PUBLIC HEALTH EMERGENCY.
AND WHAT THAT MEANS ALL OF THOSE THINGS THAT PEOPLE HAVE BEEN ACCESS FOR FREE FOR THE LAST THREE WEEKS.
SO IF YOU WANT TO GET A VACCINE YOU DO IT LIKE ANY OTHER VACCINE.
YOU DO TO A DOCTOR'S OFFICE OR PHARMACY AND GET YOUR VACCINE.
OR WHAT WE'RE CONCERNED ABOUT ARE AT HOME TESTS.
RIGHT NOW YOU CAN GET AT HOME FREE TESTS.
REQUIRED TO PAY FOR THOSE AT THE MOMENT.
WHEN THE PUBLIC HEALTH EMERGENCY GOES AWAY YOU'RE NOT LIKELY TO GET FREE AT HOME TESTS ANYMORE.
IF THERE'S LESS AVAILABILITY OF TESTING THERE'S GOING TO BE LESS TESTING.
>> WELL I WAS I SAW A COMMERCIAL FOR PAXLOVID.
I WAS WATCHING THE TOURNAMENT AND A COVID MEDICATION.
THIS IS GOING COMMERCIAL.
THAT'S REALLY INTERESTING.
NOW THAT WE ARE WE CAN SAY WE'RE THROUGH THE PANDEMIC.
THIS HAS BEEN YOUR FOCUS INTENSE FOCUS AT THE DEPARTMENT OF PUBLIC HEALTH FOR A LONG TIME.
WHAT HAPPENS POST COVID.
DO YOU GET TO WORK ON THINGS THAT HAPPEN TO BE SHELVED BEFORE.
NOBODY KNOWS WE DO OTHER THINGS I GUESS.
>> YOU'VE BEEN IN THE PUBLIC EYE.
MAYBE IT WOULD BE GOOD TO EXPLAIN THE OTHER ROLES OF PUBLIC HEALTH.
>> WE'RE INVOLVED IN OTHER PUBLIC HEALTH.
WE'RE THE SILENT GUARDIANS OF PUBLIC HEALTH.
BUT WE'RE A VERY LARGE PROVIDER FOR MANY DIFFERENT SERVICES IN THE COMMUNITY ESPECIALLY FOR PEOPLE WHO HAVE NOWHERE ELSE TO GO.
WE DO A LOT OF CHILDHOOD VACCINATIONS AND BIRTH CONTROL.
WE INVESTIGATE INFECTIONS LIKE S.T.D.s OR TUBERCULOSIS.
SO WE CONTINUED TO DO THOSE THROUGH THE PANDEMIC.
WE KNOW THAT KIDS IN GENERAL DIDN'T GET AS VACCINATED AS MUCH EVEN FOR THEIR ROUTINE VACCINATIONS.
WE KNOW A LOT OF PEOPLE DIDN'T GET THEIR ROUTINE MEDICAL SCREENING CARE.
CANCER SCREENING.
MAYBE THEIR PRIMARY CARE PHYSICIAN WASN'T SEEING PEOPLE IN THE OFFICE.
MAMMOGRAM NUMBERS WENT WAY DOWN.
AND I THINK WE REALLY WORRY ABOUT THAT.
IF YOU STOP SCREENING FOR CANCER FOR TWO OR THREE YEARS YOU'RE PROBABLY GOING TO SEE MORE CANCER.
WE EXPECT THOSE ARE THINGS WE'RE GOING TO SEE.
>> IT'S THE LEGISLATIVE SESSION.
WE'RE GETTING INTO BUDGETS NEXT WEEK.
WERE THERE ANY SPECIFIC FUNDING REQUESTS THAT YOU MADE TO LEGISLATIVE.
WE ASKED FOR LEVEL FUNDING.
BUT WHAT THAT MONEY WILL ALLOW US TO PUT ENVIRONMENTALISTS IN OUR HEALTH DEPARTMENT WHO'RE RESTAURANT INSPECTIONS FOR DOING SEPTIC TANK PERMITTING.
THEY INVESTIGATE ANIMAL BITES.
THEY DEAL WITH SOLID WASTE ISSUES IN SOME CASES.
IN SOME COUNTIES THEY ARE INVOLVED WITH MOSQUITO SPRAYING AND VECTOR CONTROL.
THERE ARE A LOT OF THINGS THAT OUR ENVIRONMENTALIST DO IN THE COUNTY HEALTH DEPARTMENT.
WE'VE HAD A LOT OF ATTRITION OVER THE YEARS.
WE'RE LOOKING TO GET BACK TO NORMAL STRENGTH.
>> IT'S THOSE THINGS THAT YOU COUNT TO WORK.
YOU JUST SORT OF DEPEND ON IT.
>> WHEN YOU GO TO EAT IN A RESTAURANT YOU DON'T UP USUALLY AM I GOING TO GET SICK OR NOT.
YOU JUST ASSUME IT'S GOING TO BE SAFE.
OUR ENVIRONMENTALISTS ARE THE ONES LOOKING INTO AND MAKING SURE THAT'S THE CASE.
THEY'VE BEEN CONTINUED TO DO THAT THROUGH THE COVID.
WE'RE LOOKING FORWARD.
>> WELL WE'RE OUT OF TIME.
I WANT TO HAVE YOU HAVE YOU BACK FOR NON-COVID, NON-PANDEMIC THINGS.
DR. SCOTT HARRIS THANK YOU FOR COMING ON.
WE'LL BE RIGHT BACK.
JOINING ME IS SCOTT LEYTEM PRESIDENT AND C.E.O.
OF THE ALABAMA BANKERS ASSOCIATION.
>> TODD, THANK YOU.
CONGRATULATIONS ON ANCHORING SUCH A GREAT SHOW.
WE LIKE TO STAY TOPICAL ON THIS SHOW.
IN THE NEWS FOR THE LAST WEEK OR SO HAS BEEN THIS BANK SITUATION.
SILICON VALLEY BANK IS THE BIG EXAMPLE OF IT THERE WAS A RUN IT AND THE FEDERAL GOVERNMENT THE FED STEPPING IN.
THERE HAVE BEEN COME OTHER BANKS FAIL.
I WANTED TO HAVE YOU TO PLAIN TO VIEWERS HOW SOMETHING LIKE THIS HAPPENS.
>> TODD, THANK YOU FOR.
THAT'S A GREAT QUESTION.
IT'S CERTAINLY BEEN ON THE MINDS OF LOTS OF PEOPLE THIS LAST WEEK.
DAYS PRIOR TO THE BANKS THE FDIC MARTY GRUENBERG AND DESCRIBED THEM AS SAFE, HIGHLY LIQUID AND IN VERY GOOD SHAPE.
I DIDN'T KNOW ANYTHING ABOUT THE SILICON VALLEY BANK.
IT IS BANK BASED IN CALIFORNIA.
THE LARGE MAJORITY OF ITS BUSINESS AND CUSTOMERS IN THE SILICON VALLEY IN THAT BUSINESS WERE TECHNOLOGY BASED BUSINESSES.
AND KIND OF AN ALABAMA LANGUAGE THEY HAD A LOT OF EGGS IN ONE BASKETS.
LOTS OF THEIR DEPOSIT CUSTOMERS AND LOTS OF THEIR LOANS WERE IN ONE INDUSTRIAL.
THAT INDUSTRY CAME UNDER PRESSURE.
THE BANK ITSELF BECAUSE OF A LACK OF APPROPRIATE MANAGEMENT OF INTEREST RATE RISK WHEN RATES ROSE DURING INFLATION AND CERTAINLY AN INAPPROPRIATE GOVERNANCE I SUPPOSE OF ITS DEPOSIT CONCENTRATION THAT PARTICULAR BANK FOUND ITSELF NEEDING TO RAISE SOME MONEY.
IT SPOOKED INVESTORS AND AN OLD-FASHIONEDED RUN ON THE BANK OCCURRED.
THAT'S HOW WE WOUND UP WHERE WE DID.
>> I'M THINKING OF A "IT'S A WONDERFUL LIFE".
BUT A RUN ON BANK IS LIKE A STOCK OPTION KIND OF THING.
>> IT'S ALMOST UNHEARD OF.
A RUN ON A BANK PARTICULARLY WITH THE TECHNOLOGY AND THE AMOUNT OF REGULATION WE HAVE AND CERTAINLY JUST THE WAY THAT BANKS OPERATE NOW.
IT'S SOMETHING I NEVER WE'D SEE.
A LOT OF PEOPLE EITHER NEITHER.
>> THAT'S OUT IN CALIFORNIA.
MAYBE THERE'S SOME DISTANCE TO HAVE SOME PEACE OF MIND.
CAN YOU TELL ME CAN WE ASSURED OF BANKS IN ALABAMA SHOULD PEOPLE FEEL COMFORTABLE AND SAFE.
>> YES, SIR.
PEOPLE SHOULD FEEL COMFORTABLE AND SAFE.
99% OF OUR BANKS ARE HIGHLY CAPITALIZED AND VERY SAFE BANKS.
ALABAMA BANKS ARE NO EXCEPTION TO THAT.
IF YOU COMPARE THE SILICON VALLEY BANK AND OTHER IS BANK IN THE NAME.
OUR BANKS ARE DIVERSIFIED WHETHER A SMALL COMMUNITY BANK IN A VERY RURAL PART OF THE STATE.
OUR BANKS HAVE APPROPRIATE DISTRIBUTION OF THE CONCENTRATION OF DEPOSITS, OF LOAN CUSTOMERS, VARIOUS SEGMENTS OF BUSINESS THEY DO WHICH BY AND LARGE IS WHAT YOU WANT IN YOUR BANK.
SO ALABAMA BANKS ARE VERY HIGHLY CAPITALIZED OUR INDUSTRY IS HIGHLY REGULATED.
WHILE PEOPLE CERTAINLY LIKE TO TALK ABOUT REGULATION THEY APPRECIATE AND VALUE GOOD AND APPROPRIATE LEVELS OF REGULATION.
THE OFFICE OF THE COMPTROLLER OR THE ALABAMA BANKS ARE IN ALABAMA ARE REGULATED.
THEY ARE STRONG.
THEY ARE SAFE.
AND I'LL MAKE THIS POINT TOO.
I'M VERY PROUD OF NOT ONLY THE MANAGEMENT TEAMS IN OUR BANKS ACROSS THE STATE BUT ALSO OUR BOARD OF DIRECTORS.
THE ALABAMA BANKERS ASSOCIATION HAS THE LARGEST BANK DURING THE COURSE TER TRAINING EVENT IN THE NATION.
WE PARTNER WITH THE FDIC.
AND OUR BANKS BRING DIRECTORS FROM ACROSS THE STATE TO MAKE SURE THEY'RE WELL VERSED IN THE REGULATIONS.
I DON'T KNOW ONE DIRECTORS IN THE CALIFORNIA BANK.
>> LET'S TALK ABOUT THAT REGULATION BECAUSE PEOPLE ARE BLAMING REGULATION.
SOME ARE BLAMING THE LAW AND YOU AALL ARE INVOLVED IN THIS EFFORT TO REFORM BANKING REGULATIONS BACK IN 2017, AND 2018.
IT WAS A BIPARTISAN BILL KIND OF REMOVING A LOT OF RED TAPE UNNECESSARY, AND THAT THRESHOLD GOT MOVED TO $250 BILLION FOR EXTRA REGULATION.
YOU'VE GOT TO BE A PRETTY GIANT BANK TO BE UNDER THAT.
THERE'S TALK OF WALKING SOME OF THOSE REFORMS BACK.
GOVERNMENT HAS GOT TO DO SOMETHING.
ARE YOU CONCERNED.
WHAT ARE YOU HEARING FROM YOUR COLLEAGUES FROM FROM AROUND THE COUNTRY WHETHER CONGRESS WILL TAKE A LOOK AT THAT LAW.
>> IN TIMES OF CRISIS OR UNANTICIPATED EVENT WE'VE GOT TO CHANGE THIS.
THE INK ISN'T DRY ON THIS DEAL YET.
SO MY COLLEAGUES AROUND THE COUNTRY AND I WHO HAVE BEEN ON MORE ZOOM CALLS THAN YOU CAN IMAGINE.
>> I BET.
>> BELIEVE AND HAVE INDICATED WE WANT THE DUST TO SETTLE TO SEE EXACTLY WHAT WENT HERE.
MUCH OF THE REGULATION THAT YOU IS PLACE IS WORKING AND HAS WORKED.
AND SO WE WANT TO MAKE SURE THAT THE RESPONSE THAT FOLLOWS THE FAILURE OF THE BANK IN CALIFORNIA AND IN NEW YORK ARE RESPONSES THAT ARE APPROPRIATE FOR WHAT NEEDS TO HAPPEN.
>> I'VE READ A LOT ABOUT THIS.
I'M FASCINATED ABOUT THIS ISSUE.
THERE WAS SOME TALK ABOUT WHAT THIS LEADS TO?
DOES THIS LEAD TO MORE GIANT BANKS BUYING UP SMALLER BANKS EVEN REGIONAL BANKS.
YOU COME FROM THE COMMUNITY BANK.
>> ABSOLUTELY.
>> BACKGROUND.
IS THERE CONCERN OUT THERE I DON'T THINK WE WANT A COUNTRY WHERE FOUR OR FIVE BANKS OWN THE INDUSTRY.
>> YOU KNOW, YOU CAN JUMP ON ANY OF THE 24 HOURS NEWS CYCLES AND HEAR SOME TALKING HEADS INDICATING WE SHOULD DO THIS AND WE SHOULDN'T DO THAT.
THIS COUNTRY WAS FOUNDED ON LOCAL COMMUNITIES AND HARD WORK, AND MAIN STREET.
AND WE HAVE BANKS ACROSS THIS COUNTRY AND IN CROSSROADS AND RURAL AREAS AND IN SOME CASES THAT MAY BE THE ONLY THING STANDING.
I DON'T SEE A FOR A MINUTE ABOUT US MOVING IN THE DIRECTION OF FOUR OR FIVE OR SIX BANKS IN OUR LIFETIME AT ALL.
THE BANKS IN ALABAMA WE HAVE LARGE BANKS AND SMALL BANKS.
ALL OF THOSE BANKS HAVE A PLACE AND ROLE.
ALL ARE VERY SUCCESSFUL, AND APPRECIATED WITHIN THE COMMUNITIES THAT THEY SERVE.
AND I THINK WHAT WE HAVE TO REMEMBER IS THAT WHAT WORKS FOR ONE, MAY NOT WORK AS WELL FOR THE OTHER.
SO THE DIVERSITY THAT WE HAVE IN THE SIZE OF THE BANKS IN THE STATE AND THEIR ABILITY TO RESPOND TO THE NEEDS OF THEIR CUSTOMERS WHEREVER THEY'RE DOING THEIR BUSINESS IS REALLY IS IMPORTANT.
WE HAVE BEEN IN CLOSE TOUCH WITH OUR BANKS THIS WEEK AND HAVE MONITORED CLOSELY THE CONVERSATIONS THAT THEY'RE HAVING WITH CUSTOMERS.
I WAS TELLING YOU ON THE WAY TO THE STUDIO I'M SUPER PLEASED EACH OF THE BANKS YOU KNOW WHAT IT'S BEEN GOOD.
OUR CUSTOMERS COME IN AND THERE HAVE BEEN QUESTIONS AS IT SHOULD BE.
BUT WE'VE BEEN ABLE TO REASSURE THEM.
NONE OF THE BANKS HAVE REPORTED SIGNIFICANT IN FLOWS OR OUT FLOWS.
I THINK THAT HAS A LOT TO DO WHERE WE ARE.
I CAN SAY FOR EVERY STATE I'M IN CONTACT WITH REALLY ALL 50 STATES THIS WEEK MOST COMMUNITIES ARE REPORTING THAT SAME THING.
>> THAT IS REASSURING TO ME AND A LOT OF OUR AUDIENCE.
SCOTT LATHAM OF THE ALABAMA BANKERS ASSOCIATION.
WE'LL BE RIGHT BACK.
>> THAT'S OUR SHOW FOR TONIGHT.
THANKS FOR WATCHING.
WE'LL BE BACK MONDAY NIGHT AT 10:30 WITH REGULAR COVERAGE OF THE ALABAMA LEGISLATURE RIGHT HERE ON ALABAMA PUBLIC TELEVISION.
FOR OUR "CAPITOL JOURNAL" TEAM I'M TODD STACEY.