In Latin, the phrase “sine die” literally means “without day.” Normally, when the Alabama Legislature adjourns, it returns the following day or the following week for the next legislative day. But when the Legislature adjourns “sine die,” the session is over and the legislative books are, in effect, closed.
Under Alabama law, a regular session can last no more than 105 calendar days or no more than 30 legislative days. Ironically, when the legislature adjourned “sine die” last week, they weren’t “without day.” In fact, they had one more legislative day, not to mention 11 calendar days, remaining on the schedule. Nevertheless, at about 8 p.m. last Thursday night, the 2015 Regular Session gaveled to a close.
In the waning hours of the 29th legislative day, the FY2016 State General Fund budget was finally transmitted to Gov. Bentley, whereupon the governor promptly vetoed it. That left the Legislature with two options: override the veto, meaning the budget would become law, or fail to override the veto, meaning the budget was dead. Upon receiving the veto message, the House quickly, and overwhelmingly, voted to override the veto. Under normal circumstances, the House would have transmitted its override vote to the Senate. But that wasn’t an option at the time, since the Senate had already adjourned – you guessed it, “sine die” – earlier that afternoon. Technically speaking, that left the FY 2016 State General Fund budget in the Senate “basket,” meaning the governor’s veto had withstood the Legislature and the budget had not become law.
As the dust settles from the session, one thing is clear: it won’t be the last time the Legislature convenes in 2015. By failing to enact the budget, the governor and the Legislature have ensured that a special session will be called in time for the Legislature to pass a budget before Oct. 1, the first day of fiscal year 2016. Though the governor has full discretion when a session can be called, many are predicting that the special session will be called in August, just after the beginning of the school year. Special sessions can last no more than 30 calendar days and no more than 12 legislative days.
The topics of discussion during the special session could run the gamut. More than likely, the major items of interest will be measures aimed at bringing more revenue to the State General Fund. What those measures will look like is anyone’s guess, as legislators failed to coalesce around any of the several ideas proposed during the regular session. Incidentally, Gov. Bentley, whose revenue-raising plan was not given serious consideration during the regular session, could have some extra ammunition for his plan during a special session. Under Alabama law, when calling for a special session, the governor can designate certain items that are to be the Legislature’s priority. Legislation covering items that are not considered a priority can still be passed, but only by a super-majority of the Legislature. So, if Gov. Bentley’s list of special session priorities is a very specific set of revenue enhancements, any other ideas for fixing the State General Fund will be more difficult to pass, giving his ideas an additional “leg up” on the competition.
Several key legislators have been tasked with researching various revenue proposals over the summer. The association plans to communicate with those legislators during the interim because, in any discussion involving taxes, it is important for these elected officials to understand the similarities and differences in how banks are taxed versus how other corporations are taxed. Thank you in advance for helping us spread the word.
As of the end of the 29th legislative day, 700 bills had been introduced in the House of Representatives and 509 bills had been introduced in the Senate. Counting resolutions, a total of 2,147 measures were introduced for consideration during the session.
As of June 8, a total of 342 measures had been enacted into law since the start of the session, including several joint legislative resolutions. This number does not reflect measures that were passed in the last few days of the session that could become law in the near future. Under Alabama law, bills and resolutions passed by the Legislature less than five days before the end of the session must be signed by the governor within 10 days after the session’s adjournment in order to become law. Bills not signed by the governor are considered to have been “pocket vetoed.”
Once this pocket veto period has ended, a Capitol Notes publication will outline in more detail all of the enacted measures that impact Alabama’s banking industry.
Stay tuned!
Questions or comments? Contact Jason Isbell, vice president of legal and governmental affairs, at jisbell@alabamabankers.com.
