Fob James Era Constitutional Amendment Playing Major Role in Current Session

In 1984, Alabama voters approved Amendment 448 known as the Budget Isolation Amendment. The amendment states that in order for either chamber of the legislature to take up a bill on the floor prior to the budgets having been passed, they have to pass a resolution preceding the bill called a Budget Isolation Resolution.

The idea for this amendment was hatched by Gov. Fob James and, in short, it simply allows a bill to come to the floor for debate prior to the passage of the budgets as long as 3/5 (60%) of the chamber votes in favor of the resolution which is commonly referred to as a “B.I.R.”

Now before we get too deep into the minutia that IS state government, I want to make sure all of the Yellowhammer faithful understand the role the BIR plays and point out an important current example of its impact on the legislative process.

The Alabama Senate has 35 members: 22 Republicans, 12 Democrats and 1 Independent. Currently, according the Budget Isolation Amendment, 21 members of the Senate (60%) must vote in favor of a BIR before a bill can come to the floor for debate and a vote.

Republicans hold a super majority in the Senate (side note: and the House). However, they can only afford for one member of the Senate GOP caucus to break ranks before the Democrats can block a BIR, thereby preventing a bill from coming to the floor.

Now let’s consider the Alabama Job Creation and Retention Act which was passed by the House back in mid February and is currently awaiting consideration by the Senate.

Here’s a little bit about the Act to refresh your memory:

· This constitutional amendment (HB 159, passed the House by a vote of 66-22) would allow voters to give the Governor and the Alabama Development Office more flexibility in offering tax incentives to land major economic development projects and retain companies that might otherwise relocate outside Alabama without having to call a special session of the Legislature.

· The corresponding enabling bill (HB 160, passed the House by a vote of 69-19) sets strict parameters for how incentives can be used to ensure return on investment. Bi-partisan amendments to the bill strengthened investment and job creation requirements, as well as accountability and transparency safeguards.

Unless the GOP unites behind this proposal, Senate Democrats (who often take their cues from the AEA) will be able to block the BIR and prevent Alabama from gaining a valuable tool in attracting and retaining companies and putting folks back to work.

This really illustrates the importance of the GOP super-majority. Being able to defeat a BIR is just as effective as defeating a bill itself — because the bill will never even make it to the floor without it.

We’ll continue to watch how things are playing out behind-the-scenes.