Contact:  Darlene Schlicher (615) 741-6336 or email:  darlene.schlicher@legislature.state.tn.us

 (NASHVILLE, TN), June 5, 2010 – State Senator Ken Yager (R-Harriman) efforts to keep state troopers serving Scott County were successful with passage of the budget this week that contained funding for continuing rural coverage.   Earlier this year, Yager urged Department of Safety Commissioner Dave Mitchell to reconsider any budget plan that could potentially leave 13 small rural counties, including Scott County, without Tennessee Highway Patrol trooper coverage.  Yager then went to work behind the scenes with Senate Finance members on a plan to ensure trooper coverage in the rural areas previously slated for cuts unless several statewide tax increases were approved. 

 “Our smaller rural counties, like Scott, desperately need these state troopers,” said Senator Yager.  “These troopers are critical in the quick response to emergency situations in these areas.  We absolutely could not pass a budget without this provision.”

The Tennessee Highway Patrol provides significant support to rural counties in all types of response situations.  State troopers routinely assist local law enforcement authorities in crisis situation, including violent arrests.

Governor Phil Bredesen had asked Department of Safety and other departments of state government to cut their budgets by nine percent due to revenue shortfalls.  The contingent staff cutbacks in the Department of Safety totaled 85 Tennessee Highway Partrol employees, including 25 road troopers and 60 management and support positions. 
The administration’s proposal would have partially restored trooper positions based on passage of the technical corrections bill, which included tax increases, including $21.3 million proposed sales tax on cable and satellite television services; $2 million to tax cable boxes, and a $6.5 million increase in the rate charge on interstate and international business telecom service.

 “I am very pleased that we were able to restore the trooper positions without tax increases,” added Yager.  “The smaller rural counties are among those who need trooper coverage the most and I am just pleased that we were able to work this out to keep them serving the people of our rural communities.” 

(NASHVILLE, TN), June 3, 2010  -- The State Senate approved major anti-crime legislation today to strengthen penalties against armed robbers.  The bi-partisan legislation, co-sponsored by Senator Doug Henry (D-Nashville), Senate Majority Leader Mark Norris (R-Collierville) and Senate Republican Caucus Chairman Diane Black (R-Gallatin) would more than double the minimum amount of time served for aggravated robbery.

“This bill continues our ‘Crooks with Guns’ legislative efforts to crack down on violent crime,” said Leader Norris.  “The bill focuses our resources on keeping violent criminals behind bars longer to protect the public.”

Presently, armed robbers convicted on a first offense can receive up to eight years in jail, but the 30 percent requirement places the actual sentence at less than three years.  This legislation would increase the percentage of jail time for these armed offenders from 30 percent to 70 percent.  To ensure there is prison space, the bill would sentence non-violent property to community corrections, with more intensive supervision, instead of jail time. 

“The safety of our citizens should be a priority of state government,” added Norris.  “These are not petty criminals.  These are hardened criminals who use a firearm in the commission of a crime.  This bill aims to make our communities safer by keeping these violent offenders off the street where they are no longer a danger to the public.  I am very pleased this bill has been approved.”

Norris sponsored the original “Crooks with Guns” legislation that made it an additional offense to posses a firearm when committing a list of dangerous felonies like aggravated and especially aggravated kidnapping, burglary, stalking, carjacking, voluntary manslaughter, and certain drug crimes. 

Last year, the legislature passed the second phase sponsored by Norris by adding a minimum of three years to the sentence of a violator who possesses a firearm during the commission of attempted first-degree murder, to be served after the underlying offense.  Another “Crooks with Guns” law sponsored by Norris and passed last year requires all aggravated burglaries a defendant commits within a 24-hour period to be counted as separate prior convictions for purposes of determining whether the defendant is a multiple, persistent, or career offender under the Criminal Sentencing Reform Act.

This year’s legislation, Senate Bill 3431, now goes to the governor for his signature.  The bill is set to take effect on July 1. 

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Contact:  Darlene Schlicher (615) 741-6336 or email:  darlene.schlicher@capitol.tn.gov

(NASHVILLE, TN), June 3, 2010 -- The full Senate unanimously approved legislation sponsored by Senator Bill Ketron (R-Murfreesboro) today that creates a procedure for sole proprietors, partners, officers of corporations, and members of limited liability companies engaged in the construction industry to file for an exemption from obtaining workers’ compensation insurance to cover themselves.  The legislation, Senate Bill 3591, comes after the General Assembly voted earlier this year to suspend a new law requiring sole proprietors and partners engaged in the construction industry carry workers’ compensation coverage on themselves. 

“This legislation represents a consensus of all parties after several months of negotiations between those impacted by this matter,” said Senator Ketron.  “The legislation works to address concerns over gaps in coverage, but provides exemptions so that small businesses will not be harmed.  It also addresses provability, verifiability and accountability in our worker’s compensation law.” 

The proposal aims to address gaps in coverage for workers in the various construction fields without harming small business owners.  The bill reinstates the requirement that sole proprietors and partners engaged in the construction industry carry workers’ compensation insurance on themselves but provides a mechanism for exemption. 

Those eligible for the exemption, include:  Up to three officers of a corporation; certain members of a  limited liability company, if they own at least 30 percent of the company; partners that own at least 30 percent of a limited partnership; sole proprietors; and up to three members of a family-owned business

The bill requires any construction services provider requesting exemption, who has not been issued a valid license from the Board of Licensing Contractors, to obtain first a construction services provider registration from the Secretary of State.  They may then apply for an exemption to the Secretary of State’s office either in person or online.  No more than three persons on any one commercial job are eligible for an exemption.  The bill also requires the provider requesting an exemption be current in paying all taxes. 

The cost, under the bill, would total $200 every two years for a construction service provider registration and exemption.  A construction service provider that has been issued a license by the Board of Licensing Contractors would pay $100 every two years for an exemption.  Costs incurred by a construction service provider would be significantly less than a worker’s compensation insurance premium based on the construction service provider’s payroll.  The bill also increases the penalties against an employer engaged in the construction industry who fails to comply with the law.

Finally, the bill creates an offense for an employer knowingly to coerce a job applicant to obtain a worker’s compensation exemption or to fire an employee due to failure to receive an exemption.  The proposal establishes a task force that will study the effects of employee misclassification in the construction industry.

The bill is supported by the National Federation of Independent Businessmen and the Homebuilders Association of Tennessee.  “I am very pleased that we were able to come to an agreement with all parties concerned,” added Ketron. 

Contact:  Darlene Schlicher (615) 741-6336 or email:  darlene.schlicher@capitol.tn.gov

(NASHVILLE, TN), June 3, 2010 -- The Senate voted 24 to 6 today to approve major legislation overhauling the way state government contracts for the purchase of up to $25 billion in goods and services.  The action came as the General Assembly worked into the evening on Thursday in an effort to conclude the business of the 106th General Assembly by this weekend.

The legislation, Senate Bill 3598, sponsored by Senator Bill Ketron (R-Murfreesboro), is designed to implement cost saving strategies taken from the best practices implemented by procurement officials nationwide that could save Tennessee hundreds of millions of dollars over the long run.
 
The bill uses information contained in a State of Tennessee Procurement Assessment showing state authority for contracting is divided with one path for procuring goods and routine services and another path for the purchase of professional services.  Each path has its own rules, players, decision makers, databases, technology, policies and staff.   Without a single entity in charge of or accountable for statewide procurement spending, there is currently no easy way to manage a coherent, comprehensive, statewide cost saving strategy for procurement.  The report also said it was confusing for vendors to do business with the state due to inefficient and redundant processes.

"The legislation would combine procurement of goods and services for the state into one central office housed in a department to be chosen by the governor," said Senator Ketron.  "The governor would also appoint a single Chief Procurement Officer who has extensive qualifications and experience in contract administration to head the agency."

The Chief Procurement officer would lead a staff of well-trained professionals to carryout the function of procurement management, contract management, contract compliance /quality assurance, and vendor customer relations.  An Advisory Council for State Procurement would be established to provide counsel to the new agency, replacing the present Board of Standards and Review Committee.  It would consist of representatives from state agencies, the legislative branch and the vendor community.  A State Procurement Commission consisting of the State Comptroller, the Commissioner General Services and the Commissioner of Finance and Administration would be formed to examine and approve rules, regulations and procedures for the agency under the bill.  A Protest Committee consisting of the State Treasurer, the Commissioner of Finance and Administration and the Commissioner of General Services would hear protests regarding procurement of contracts as long as they have no direct conflict of interest on the matter.

"The new statewide system could also take advantage of the government’s clout as a volume-buyer to leverage more competitive bidding," Ketron added.  "Other objectives of the legislation are to provide opportunity and fairness in state contracting and implementation of performance measures to make sure taxpayer dollars are used efficiently and effectively." 

Ketron said the bill is similar to a new law implemented in Georgia and comes from the best practices obtained from the National Association of State Procurement Officials, the American Bar Association 2000 Model Procurement Code for State and Local Governments and reports from the Federal Government Accountability Office. 

The bill now goes to the governor for his signature.

(NASHVILLE, TN), June 2, 2010 -- State Senator Brian Kelsey (R-Germantown) said today he was very disappointed by the inaction in the House Budget Subcommittee to approve his constitutional amendment  that would have clarified the state’s prohibition of a state income tax or payroll tax in Tennessee.  Kelsey, who easily won approval of the measure in the Senate by a vote of 25 to 7 earlier this year, made the statement after the House Budget Subcommittee took the amendment off notice without objection from any of the members.  The amendment was #65 on the final committee calendar.  Representative Tony Shipley (R-Kingsport) failed to present the amendment to the subcomittee before the committee took the bill off notice and adjourned for the year.

“Tennesseans must still live under the threat of the state income tax due to the inaction of the House to move this amendment forward,” said Senator Kelsey.  “The income tax debate is not over.  Legislators continue to introduce bills that would impose an income tax every year.  This constitutional amendment would have allowed the people of Tennessee to vote to put this issue to rest permanently.  Instead, it is a good bet that another income tax bill will be introduced next year just like the one introduced this year.”  The “Tennessee Income Tax Law of 2010,” HB 3597, was introduced earlier this year by eight legislators to avoid spending cuts.
  
The resolution would have specified that the legislature as well as Tennessee counties and cities are prohibited from passing either an income tax or a payroll tax, which is a tax on employers that is measured by the wages they pay their workers.  A payroll tax has been proposed in recent years by elected officials in Shelby County and elsewhere as a way around an income tax.  A state income tax proposal has repeatedly come before state lawmakers over the last several decades, including failure by only five votes in the House of Representatives in 2002.  

There have been three cases before the Tennessee Supreme Court throughout the state’s history that have upheld that the income tax is unconstitutional.  The most recent case was decided in 1964, and this case has never been overturned.  However, an attorney general opinion in 1999 opined that the tax is legal.  The opinion has prompted elected officials in Tennessee to continue to propose both an income tax and a payroll tax in recent years.

“As the stimulus funds dry up, you will see more tax increase proposals pushed, including an income tax,” Kelsey added.  “I am very disappointed that this amendment  was defeated by the House, given its overwhelming, bipartisan support in the Senate.”

Kelsey’s amendment would have published the constitutional amendment on the Secretary of State website.  Kelsey received a commitment from private citizens to pay for publishing the amendment in newspapers, as well.  Rep. Shipley circulated a letter confirming this commitment to members of the House Budget Subcommittee prior to today’s meeting, but the House Subcommittee failed to acknowledge the letter in its meeting.