Goat Hill Report- Week Ending April 18, 2025
This week the Alabama legislature completed Days 22 and 23 of the 2025 session. The legislature now has seven days remaining of the (maximum) 30-day session. The session is expected to wrap up in early-to-mid May. Details of this week’s notable action and news items are provided below.
Floor Action Intensifies In-House & Senate
Thursday proved to be the most intense day of session thus far, and the ripple effects are likely to impact the seven remaining legislative days.
In the Senate, a noncontroversial calendar was set for debate but was quickly shelved after a newly filed bill drew negative reaction from Sen. Rodger Smitherman (D-Birmingham). The bill, which relates to the governance of the Birmingham Water Works, quickly became a flashpoint on the Senate floor – with Sen. Smitherman suggesting the proposal represented a breach of local trust and confidence. Senate Republicans responded to these filibuster threats by retreating into a closed-door caucus meeting and emerging with a new six-bill calendar for consideration. The new bills related to major topics such as the protection of minors (through device monitoring and app store requirements), immigration and voting integrity. The majority quickly proceeded to move for cloture – a procedural move often utilized to limit debate from the minority party – on each of the bills prior to adjourning for the week. Such “cloture calendars” are not uncommon late in a legislative session, but the earlier than anticipated move by new Senate Pro Tem Garlan Gudger (R-Cullman) signified a defining moment for the leader of the chamber. In recent weeks, the Senate Democrats had been very effective in slowing down bill activity, which led to growing concerns about impacts to priority legislation due to lack of floor time.
On the House side, there was an expectation of closing debate on several controversial issues – including a measure to codify the Trump Administration’s renaming of the Gulf of Mexico (to the Gulf of America) and a requirement that K-12 schools display a copy of the Ten Commandments onsite. Speaker Nathaniel Ledbetter (R-Rainsville) and House leadership also prioritized high-profile bills that would ban drag shows in schools and instruction related to gender ideology. Cloture was only required on the first bill despite later claims from House Democrats that they were silenced throughout the day. The strategic move to dispense with the remaining social bills on a single calendar reflects Speaker Ledbetter’s operating style. Since assuming the office, he has not shied away from difficult issues and finds ways to prioritize the most conservative wing of the Republican caucus.
Status of Education and General Fund Budgets
The budget bills are due to be taken up the second chamber as soon as next week. The House is prepared to address changes to the Education Trust Fund package while the Senate will be tasked with considering the General Fund package; however, no schedule has been finalized as of this writing. Additionally, there has also been some sparring this week between the chambers about the number of total bills considered by the other – which is common at this point in the session. Coupled with frictions highlighted above, House and Senate leadership will have to be diligent in the planning of calendars and time management for the remainder of session.
ARPA Oversight Committee Updated on Environmental, Healthcare and Broadband Progress
The Legislative American Rescue Plan Act (ARPA) Oversight Committee met on Tuesday, and heard testimony that Alabama is on track to meet a federal deadline to spend its $2.12 billion share of ARPA funds – although concerns were raised about broadband connectivity projects. The federal government’s COVID relief funding initiative was created in 2021 and distributed a total of $1.9 trillion to provide states the funds to help provide economic and public health relief. ARPA guidelines included a mandate that states spend those dollars by December 31, 2026, or else they would be forfeited. As early as 2023, Alabama lawmakers expressed concerns about meeting that deadline, and those concerns were reiterated at this week’s Oversight Committee meeting. Alabama Department of Environmental Management Director Lance LeFleur offered assurances that ADEM was “clawback-proof” on the $400 million the agency was allocated largely for water and sewer projects. Committee members, including Sen. Chris Elliott (R-Josephine) and Sen. Greg Albritton (R-Range) commended ADEM for staying on schedule, and for doing so without increasing staff or using ARPA funds toward administrative costs.
However, in reviewing the $260 million of ARPA funds committed to broadband expansion, there were concerns about meeting the deadline – although it was noted the situation may be outside the control of the Alabama Department of Economic and Community Affairs (ADECA). ADECA has been charged with overseeing the state’s high-speed internet expansion efforts, and the $260 million in 2021 ARPA funds for Alabama have been supplemented with an additional $1.4 billion in federal funds that the state was awarded in 2023. ADECA Director Kenneth Boswell reported than an estimated 140,000 additional homes, businesses and public facilities will be connected via broadband under more than 200 individual projects approved by ADECA as of late 2024, with the agency well on track to dispense all ARPA funds by the late 2026 deadline. However, Sen. Bobby Singleton (D-Greensboro) pointed out that a number of internet service providers are concurrently applying for grants for broadband expansion projects directly from the federal government, and Boswell said that may lead to gaps in the state’s broadband expansion efforts. Specifically, the ADECA chief warned that some companies receiving funds from both state and federal entities were tying up areas of the state with only so many years to complete the projects. Sen. Singleton did comment after the committee meeting that despite the uncertainty, the state was still “on a good path” in terms of utilizing most, if not all, of the state’s ARPA funds allocated toward broadband expansion before the federal deadline.
Bills of Interest to the Concrete Industry this Week
House Bill 578 by Representative Debbie Wood would modify the permitting process for new aggregate quarries. The legislation would establish a local approval process prior to approval by ADEM. The legislation also creates a five person committee to provide local oversight of approved quarries. The legislation as drafted would not impact sand and gravel operations. The association along with other impacted industries met with Representative Wood last week to discuss the legislation.
House Bill 597 by Representative Steve Clouse would allow government agencies to utilize alternative design methods (ADM) for a certain percentage of projects instead of the traditional design – bid – build that is the standard practice in the state. Alabama is one of the few remaining states that does not allow ADM. The bill establishes a payment bond of 100% on ADM projects instead of the current 50% on design – bid – build. The association has worked with impacted parties to increase the payment bond on traditionally let projects, but the bill as introduced kept the percentage the same as in current law. Payment bonds are what the industry could pursue in case of non-payment for materials.
The Alabama Legislature will reconvene on Tuesday, April 22, 2025.