Weekly Review

Capitol Hill Week: Legislative pace quickens / Senate Judiciary Committee debates bill to require drunk drivers with a high blood alcohol level to install ignition interlock devices

Thursday, February 25, 2010

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

     (NASHVILLE, TN), February 25, 2010  -- The pace quickened on Capitol Hill this week as committees considered a wide variety of bills and continued to review budget requests from departments and agencies of state governments.  Among bills considered was one debated in the Senate Judiciary Committee that would require extreme drunk drivers to install an ignition interlock device.  The proposal would apply to persons arrested with blood alcohol content (BAC) level of .15 or more, a level which is 385 times more likely to cause a crash. 

     Interlock devices are small pieces of equipment attached to the steering wheel of a car with a tube that the driver must breathe into in order to allow ignition to start.  The current alcohol ignition interlock technology makes it easier for courts to require drunk drivers to utilize the device. 

     “This bill aims squarely at those who drink, drive and kill,” said Senate Judiciary Chairman Mae Beavers (R-Mt. Juliet), who is sponsor of the bill.  “The record is clear that ignition interlock devices save lives.”

     According to the Department of Safety, 3877 restricted driver’s licenses were issued to people with DUI convictions in 2008, of which 1,163 were to offenders having a BAC level of .15 or higher.  The bill aims to strengthen Tennessee’s law against DUI offenders who register high levels of alcohol upon arrest.  State law already requires persons who are convicted and have a prior conviction within the past five years to install an interlock device for a six month period at their own expense. 

     As of January, 2,743 Tennessee driver’s license holders had an interlock restriction, while 580 license holders had an interlock device installed. Eight other states already have laws that require DUI offenders to install interlock devices if they register .15 or higher.

     The National Transportation Safety Board has urged Tennessee to pass a more uniform and mandatory system for installation of interlock devices for those convicted of drunk driving.  Action on the bill, Senate Bill 2965, was deferred until next week.

Government Operations Committee reviews objectives to loosen grip of special interest groups and lobbyists on state’s boards and commissions

     The Senate Government Operations Committee is currently considering action to loosen the grip of special interest groups and lobbyists over the various boards and commissions in Tennessee as they are reviewed by the panel in their normal sunset review process.  Committee Chairman Bo Watson (R-Chattanooga) is among several members on the committee that have serious concerns about repeated language in Tennessee law that requires appointing authorities to select a candidate from special interest organizations. 

     The governor, lieutenant governor, and speaker of the house are most commonly responsible for naming those who serve on the approximately 250 boards and commissions currently in operation in the state.  The boards cover a wide variety of matters and involve oversight for various professions in the state from real estate and health care to athletic training and funeral homes.  Special interest groups over the years have lobbied to make sure that their organizations are included in the language of the law by requiring that appointments are made from members of their group.

     “Many of us have been amazed at the fact that qualifications take a back seat under present law to being a dues paying member of a special interest organization in order to be appointed to a board or commission in Tennessee,” said Chairman Watson.  “It leaves many qualified citizens out of consideration.  Being active in an organization could be helpful as part of qualification factors, but without a compelling reason why an appointment should be required to be from members of a particular special interest organization, the appointing authority should be able to choose any citizen who is qualified.”

      “Qualifications are very important and no one wants to eliminate that,” added Senator Dewayne Bunch (R-Cleveland).  “There are a lot of qualified citizens that can serve on these boards and do the same things that are currently being done who do not belong to special interest groups.  Our citizens should have equal opportunity and equal footing as special interest groups and lobbyists.” 

     “There is a tremendous amount of inconsistency on our boards and commissions,” added Senator Jack Johnson (R-Franklin) in speaking about the various state laws regarding appointments.  “Some require specific organizations, while others just ask for recommendations from a particular group.”

     Watson said the Government Operations Committee is considering two other objectives in deliberations regarding board and commission members’ appointments, besides removing the special interest designation.  One would require board members to be Tennessee citizens, while the other would better define a conflict of interest exclusion, including a one-year buffer period before lobbyists can be on a board if they have represented clients within that profession or subject matter.

     “The person left out of the room when the law requires selection from a special interest group, is the average citizen,” said Senator Brian Kelsey (R-Memphis).  “We must do everything we can to protect all Tennesseans.”

      “These objectives will result in a fundamental change that will loosen the grip of special interests and lobbyists on our boards,” Watson added.  “This will also strengthen the public’s faith in state government.”  

Tennessee working hard to create jobs in challenging economic climate

     Officials from the state’s Department of Economic and Community Development told Senate Commerce Committee members this week that Tennessee is working hard in a challenging economic climate to create new jobs.  The Department came before the committee for consideration of its budget request, which includes expansion of an innovative new program sponsored by Republicans last session called TNInvestco.

          Two key components of fostering higher-paying jobs to recruit new industries is developing a highly skilled work force and investing in new infrastructure.   In the midst of the worst recession and highest unemployment rate in recent history, the state has brought in $6 billion in new capital investment in fiscal year 2008-09.  This includes the location of two major plants, Volkswagen in Chattanooga and Hemlock in Clarksville.  

     Recruitment of major new industries is a primary objective of the Department.  However, approximately 84 percent of Tennessee companies are small businesses, generating $23 billion in annual personal income.  According to Senate Commerce Committee Chairman Jack Johnson (R-Franklin), this fact shows the importance of creating a good business climate for small companies and means lawmakers must be vigilant to resist efforts to erode that status by increasing taxes or implementing new “job killer” mandates.
 
     “We are pro-growth and pro-business and we must work to keep it that way,” said Johnson.   “Our overall statewide business climate is hospitable for businesses of almost any size or type.  However, the threat of erosion of our business friendly climate is real.  We must strive to keep our taxes as low as possible and our business climate friendly, so we can compete in a 21st Century economy where there is much competition and many challenges, especially during an economic downturn.”

     The editors of Site Selection magazine, one of the nation’s premier economic development publications, have ranked Tennessee among the five best states in the U.S. for best business climate.  This is in addition to being named one of the best states for jobs and business growth.  This is mainly due to the fact Tennessee is a right to work state, lacks a personal income tax, has comparatively low business tax rates, and the natural advantages of a good location. 
 
     Tennessee is also one of the top three states in the U.S. for clean energy jobs according to the Pew Center for the States.  Recent legislation passed by the General Assembly has raised the state’s profile in sustainable energy.

     On TNInvestco, Economic and Community Development Commissioner Matt Kisber said the program is now looked at as model legislation for other states.  TNInvestco helps to make investment capital available to small, medium and start up businesses in Tennessee.   The goal is to develop Tennessee’s entrepreneurial infrastructure, to bring additional capital into the state, to diversify the state’s economy and to create “anchors” or “clusters” of business innovation which can result in new companies being created in Tennessee.  Expansion of the program would allow the state to include two more firms, currently listed as alternates, to provide investment potential to more Tennessee businesses which qualify.

     “The state’s economic downturn and the rise in unemployment provide legislators with serious financial challenges, but job creation is a top priority as we look toward economic recovery,” said Senator Doug Overbey (R-Maryville), sponsor of the TNInvestco legislation.  Small businesses provide 67 percent of first jobs and produce 55 percent of innovations.  This legislation helps us to tap into this vast potential to encourage job growth in the state.” 

Two Environmental Resolutions are Approved

     Two environmental resolutions were approved this week, including one calling for a report on the progress of TVA to comply with the federal Information Management System (NIMS), which directs emergency preparedness and response in accordance to guidelines established by the Department of Homeland Security.  The resolution comes after a report released by the Tennessee Department of Environment and Conservation noted the TVA Inspector General said the agency had not complied with NIMS and that emergency planning and preparedness are critical aspects for the safe management and operation of coal-fired plants operating in the state.

     Tennessee has six other coal-fired plants with wet coal ash storage, besides the Kingston plant where the December 2008 spill resulted in one of the worst man-caused ecological disasters in state history.  The resolution, Senate Resolution 784, calls for a report on TVA’s progress to implement emergency preparedness, including a risk assessment of all TVA-owned and operated facilities in Tennessee.  It also called for the annual reporting of TVA’s progress to transition to dry coal ash storage at each of its coal plants in the state.

     “It is outrageous to think that the appropriate action was not taken to respond to this disaster adequately,” said Senator Tim Burchett (R-Knoxville), sponsor of the resolution.  “Hopefully, we can avert any similar lack of preparedness in other facilities.”

     The second resolution, Senate Resolution 176 sponsored by Conservation and Environment Chairman Steve Southerland (R-Morristown), urges Congress to provide states with the greatest authority possible to manage solid waste.  Authorization would include allowing states to restrict the importing and exporting of waste, including imposing differential fees. 

Issues in Brief

     Online Driver Safety Class – The Senate and House have approved and sent to the governor legislation that would allow senior drivers in the state to take an online driving course in order to receive a discount on their automobile insurance premiums.  The bill, Senate Bill 2570 sponsored by Senator Mike Faulk (R-Church Hill), would allow the discount to citizens over 55 years of age if they complete an online driver safety course approved by the State Department of Safety.  Currently, only seniors who take courses in a classroom are eligible to receive the discounts.

     Snow Days – School superintendents would have more flexibility in making up missed days due to snow or other weather-related problems under legislation that was approved by the full Senate this week.  The bill, Senate Bill 3031 sponsored by Senator Mike Faulk (R-Church Hill), authorizes the Commissioner of Education to approve directly proportional variations from half-hour extension of the school days and the corresponding accumulation of 13 days of adjustments to the instructional time requirements.  Currently, schools that exceed the mandatory six and one-half hours of daily instructional time by one-half hour daily are credited with additional instruction time, not to exceed 13 instructional days each year. 

     Motorcycle Lemon Law – The full Senate has approved legislation this week to add motorcycles to Tennessee’s “lemon law” regarding warranty protections.  The lemon law requires that motor vehicle manufacturers, or their authorized agent or dealers, must repair new vehicles that are under warranty and replace or accept the return of them if they cannot be repaired after a reasonable number of attempts.  The bill, Senate Bill 2649, is sponsored by Senator Tim Burchett (R-Knoxville).

     Trust laws -- The State Senate has approved legislation to update and improve Tennessee’s trust laws to keep the state competitive as a prime location for investments.   The bill, Senate Bill 3522 sponsored by Senator Doug Overbey (R-Knoxville), improves Tennessee’s Uniform Principal and Income Act, the Uniform Trust Code, and the Investment Services Act by adding a number of statues to upgrade to improve the state’s trust laws.  It also creates a new type of trust in Tennessee called the unitrust.  The legislation employs the top features of trust laws in other states and best practices in trust administration to put Tennessee ahead of other states in desirability for trust administration.

     Troops / Voting -- Legislation making it easier for troops who are deployed overseas to vote received final approval in the State Senate this week. The bill, Senate Bill 2681 sponsored by Senator Bill Ketron (R-Murfreesboro), authorizes a county Election Commission to e-mail a ballot to each member of the armed forces, as well as citizens temporarily outside the United States, who are entitled to vote and who have submitted a valid application for a ballot.  The move would expedite the process so the voter would have more time to make a decision and return their ballot so they will be counted. According to the Pew Center on the States, about half of overseas voters fail to vote or to have their votes counted because of current voting rules. 

     Honoring fallen heroes – The State Senate took time this week to honor two fallen Tennessee heroes who lost their life this week in a helicopter accident in Iraq.  The soldiers, Capt. Marcus Ray Alford of Knoxville and Chief Warrant Officer Billie Jean Grinder of Gallatin,  were with Louisville's 1/230th Air Cavalry.  Public Chapter 169, sponsored by Senator Dolores Gresham (R-Somerville) and approved last year, requires that if members of the Tennessee National Guard die in the line of duty, the Governor shall proclaim a day or mourning in their honor and the names of the deceased members of the armed forces shall be recorded in the journal of the Senate and House of Representatives.  The new law also requires that flags be flown at half-mast to honor these soldiers who make the ultimate sacrifice for their state and country.

     Tennessee State Parks – Tennessee State Parks have a very significant impact on Tennessee’s economy and create thousands of jobs in many rural areas of the state where jobs are needed most according to officials of the Department of Environment and Conservation.  The officials, who testified before the Conservation and Environment Committee, do not anticipate the closing of any state parks this year despite budget cuts.  In 2008-2009, an estimated 16.9 million people visited Tennessee State Parks, resulting in $725.2 million in direct expenditures by State Park visitors.  For every dollar spent on trips to Tennessee State Parks, an additional $1.11 of economic activity is generated throughout the state for a total impact to the state’s economy of $1.5 billion.

     Theft of Information / BCBS – Legislators on the Senate State and Local Government Committee heard from Clay Phillips with Blue Cross – Blue Shield (BCBS) this week about the recent theft of information from that company’s hard drive.  BCBS is the insurance provider for many state and local government employees, as well as other Tennessee customers.  Phillips assured lawmakers that they are doing everything they can to mitigate the theft of 52 hard drives from their Customer Call Center, some of which contained personal identifying information.  BCBS is notifying those consumers affected with details of the hard drive theft and remediation services to mitigate the potential for misuse of information.

Capitol Hill Week: Legislation advances to make it easier for troops deployed overseas to vote

Thursday, February 18, 2010

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

     (NASHVILLE, TN), February 18, 2010 – Legislation making it easier for troops who are deployed overseas to vote is advancing in the State Senate after approval by the State and Local Government Committee this week.  The bill, Senate Bill 2681, could be on the Senate floor for final consideration as early as Monday. ¬¬¬¬¬
 
     The bill authorizes a county Election Commission to e-mail a ballot to each member of the armed forces, as well as citizens temporarily outside the United States, who are entitled to vote and who have submitted a valid application for a ballot.  The move would expedite the process so the voter would have more time to make a decision and return their ballot on time. It will also require Tennessee to develop a database that voters overseas can use to see if their ballot has been received by their county election commission to help ensure that their votes are counted.

     The legislation helps the state comply with the federal Military and Overseas Voter Empowerment (MOVE) Act, which took effect in October.  That law requires the Department of the Army and Postal Service to expedite the return of ballots by using express mail, since they cannot be returned electronically due to election security concerns.  To assist soldiers and citizens who are living outside the U.S. for work, school or other reasons, the Federal Voting Assistance Program has set up a website where service members can access valuable information and documents to expedite the voting process.  
 
     According to the Pew Center on the States, about half of overseas voters fail to vote or to have their votes counted because of current voting rules.  Tennessee had approximately 18,686 overseas voters who participated in the November 2008 election.

      “It is outrageous to even think that only half the men and women who serve us ‘in harm’s way’ have their votes counted,” said Senate State and Local Government Committee Chairman Bill Ketron (R-Murfreesboro) who is prime sponsor of the bill.  “The biggest problem attributed to this is that service members’ ballots did not get back to the U.S. in time to be tallied. We need to do everything in our power to make it easier for our soldiers, who are defending our freedoms overseas, to have the opportunity to vote and to have that vote counted.  That is what this legislation would accomplish.”

     According to Tennessee Adjutant General Max Haston, 5,615 airmen and soldiers are deployed, including Tennessee’s 278th Armored Cavalry Regiment which deployed from Camp Shelby, Mississippi last week to Kuwait.  The Regiment will be stationed in Iraq.

Tennessee’s New Adjutant General testifies before Senate State and Local Government Committee

     Tennessee’s new Adjutant General Max Haston testified before the Senate State and Local Government Committee this week about his department’s budget request.  The State Senate will be reviewing the appropriations requests of every department and agency of state government through March 17 in preparation for passage of the 2010-2011 budget, which begins on July 1.  Haston was chosen to succeed former Adjutant General Gus Hargett, who retired in December.

     The Military Department has jurisdiction over the state’s Army National Guard and Tennessee Air National Guard.  The Governor asked the Military Department to cut nine  percent from their budget, which Haston said causes concerns in three areas:  the college tuition assistance program for members of the Air Guard, adequate response to a catastrophic event should one occur,  and keeping up with utility costs for the state’s armories. 

     Haston said the college tuition assistance is an important tool to continue to recruit soldiers into the Air Guard.  The federal government provides $3.7 million in tuition assistance to Army Guard members, but the Air Guard is subsidized by $751,789 in state funds to help about 220 recipients.  The Department recruited 233 airmen and soldier last year. 

     On the need to keep up with rising utility costs for the state’s armories, State and Local Government Chairman Bill Ketron appointed a subcommittee to look for ways to find funds to fill that need.  Federal funds used to assist the state’s Military Department for this purpose have dried up, leaving Tennessee without help to ‘keep the lights on’ in the 83 armories across the state.

     The Military Department also oversees operations for the Tennessee Emergency Management Agency, which is responsible for managing the state’s response to emergencies and disasters that affect the citizens of Tennessee.  Tennessee had four weather-related presidential declarations of disaster last year involving 20 counties, with $28.3 million in damages.   

Tennessee Senate approves Health Freedom Act to protect rights of citizens to choose whether or not to participate in any future federally mandated health care program

     The Tennessee Senate approved legislation this week by a vote of 26-1-5 to protect the freedom of Tennessee patients to make their own health care choices, regardless of any future federal action.  The bill, called the Tennessee Health Freedom Act is sponsored by Senator Mae Beavers (R-Mt. Juliet), Senator Jim Tracy (R-Shelbyville), Senator Dolores Gresham (R-Somerville), Senate Republican Caucus Chairman Diane Black (R-Gallatin), Senator Rusty Crowe (R-Johnson City), Senate Majority Leader Mark Norris (R-Collierville), Senator Jack Johnson (R-Franklin), Senator Bo Watson (R-Hixson) and Lt. Governor Ron Ramsey (R-Blountville). 

     “Never in our history has the U.S. government required its citizens, as a condition of residency, to purchase a particular product from a private company or government entity,” said Senator Beavers.  “This act seeks to protect the rights of Tennesseans to choose what type and quantity of health insurance to purchase.”
 
     Beavers said the legislation, Senate Bill 3498, would protect a citizen’s right to participate, or not participate, in any healthcare system, and would prohibit the federal government from imposing fines or penalties on that person’s decision.  She said it does not seek to “nullify” any federal law, as it would still allow individuals the option to participate in a federal program. However, the bill acknowledges the right of Tennesseans to refuse to participate in a government-run health insurance program.  It also calls on the state’s Attorney General to take action in the defense or prosecution of rights protected under the legislation.

      “The mandate to buy health insurance does not regulate the health care insurance markets -- it regulates the doing of nothing,” added Beavers.  “If Congress really had the power to regulate such an activity, there would be no limits to its power.  They could mandate the purchase of anything, yet the Supreme Court recently made it clear it will strike down federal statutes based on such an unlimited assertion of power.  It is not inconceivable if they can do this, they could mandate that each of us buy a Chevrolet every year so we can help pay off the loans that were made to that industry.” 

     Action on the bill will now move to the House of Representatives, where it is sponsored by Representative Beth Harwell (R-Nashville).

Judiciary Committee approves legislation to ensure law enforcement can prosecute sex offenders who use electronic communications to solicit minors/
Separate bill approved by full Senate aims to stop child pornography

     The Senate Judiciary Committee has approved legislation closing a loophole in state law that has allowed sexual predators to escape prosecution on a technicality.  The bill, sponsored by Senator Doug Overbey (R-Maryville) adds wording to Tennessee law to ensure that law enforcement posing as minors can be used to prosecute cases where sexual predators use electronic means to solicit those under the age of 18.

     “Law enforcement should have the ability to conduct an operation to catch sexual predators who prey on Tennessee children,” said Senator Overbey.  “This bill, Senate Bill 2721, closes the loophole in state law to ensure these predators are prosecuted regardless of the mode of communication they use to solicit a child.”

     Currently it is a Class E felony for a person, 18 years of age or older, to intentionally persuade a minor to engage in sexual activity by electronic communication, mail or Internet service, or to display pornographic material through these means.  If the minor is less than 13 years of age, a violation is a Class C felony.

     “Our laws must keep up with the new technology used by sexual predators every day in America to victimize children,” added Overbey.  “This legislation closes the loophole so our law enforcement officers can successfully prosecute offenders of this terrible crime.”

     In separate action, the full Senate approved legislation sponsored by Senator Tim Burchett (R-Knoxville) aimed at preventing child pornography by adding unauthorized “covered file-sharing program” as an unfair or deceptive act under Tennessee’s Consumer Protection Act.  The practice, also known as Peer to Peer File Sharing (P2P) can be used for legitimate purposes, but is predominately used to illegally copy millions of copyrighted works and has served as a massive distribution system for pornography, including child pornography. 

     Last year, Congress passed legislation to require P2P programs to provide consumers with notice as to which of their files will be shared publicly and requiring the user to activate the function that would share their files.  However, it is the state’s responsibility to protect its consumers.  This legislation, Senate Bill 3407, amends Tennessee’s deceptive trade practices law so that the state will have the authority to take action to inform and protect citizens.  It would also alert the developers and distributors of file sharing programs that if they want to do business in Tennessee, consumers must be informed first.

Constitutional amendment prohibiting income tax and payroll tax advances

     A resolution advanced through the Senate Judiciary Committee this week calling for a constitutional amendment to clarify prohibition of an income tax and a payroll tax in Tennessee.  The amendment, Senate Joint Resolution 763, specifies that the legislature as well as Tennessee counties and cities shall be 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. 

     “I hope to clarify once and for all that Tennessee is an anti-income tax state,” said Senator Brian Kelsey (R-Germantown), prime sponsor of the bill.  “If this amendment passes, the people will be able to vote on the issue, and we will never have to face another income tax battle again.”

     There have been several 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, elected officials in Tennessee have proposed both an income tax and a payroll tax in recent years.

     “In these difficult economic times, the last thing Tennesseans need to be worrying about is having to pay a state income tax or a payroll tax,” Kelsey continued.  “We have enough taxes already, and state government must learn to live within its means.”

     In order for a constitutional amendment to pass, it must first be approved by a simple majority in both the House and the Senate this year.  Then, it must be approved by a two-thirds vote in each chamber during the next General Assembly in 2011-2012.  After that the amendment would be placed on the next gubernatorial ballot for ratification by the people in November 2014.

     Co-sponsors of the bill are Senator Doug Jackson (D-Dickson), Senator Randy McNally (R-Oak Ridge), Senator Diane Black (R-Gallatin), Senator Mae Beavers (R-Mt. Juliet), Lt. Governor Ron Ramsey (R-Blountville), Senator Dolores Gresham (R-Somerville), Senator Dewayne Bunch (R-Cleveland), Senator Bill Ketron (R-Murfreesboro), Senator Mike Faulk (R-Church Hill), Senator Tim Burchett (R-Knoxville), Senator Steve Southerland (R-Morristown) and Senator Jim Tracy (R-Shelbyville).

TVA updates lawmakers on their efforts to clean up Coal Ash Spill in Kingston

     Officials from the Tennessee Valley Authority and the Tennessee Department of Environment and Conservation appeared before a joint meeting of the House and Senate Conservation and Environment Committees this week to update state lawmakers on their efforts to clean up the coal ash spill.  The December 22, 2008 coal ash spill released more than 5.4 million cubic yards of ash into the Emery River from an on-site lagoon, also referred to as a holding pond, at the Kingston Fossil Plant.  Fly ash is a fine, glass-like powder recovered from gases created by coal-fired electric power generation.   The ash contains arsenic, which means it must be treated as a “hazardous substance” as it is removed. 

     TVA General Manager Steve McCracken reported that their main goals are to restore services, stabilize and contain the spill, and to clean up the ash.   Approximately 15,000 yards are being cleaned up every day, with a priority on removal of the ash from the river.  Ash recovered is going to a landfill in Alabama, which has already received 2.5 million cubic yards from the Tennessee spill.  Approximately 1.4 million tons of ash have been removed by 149 trains, which must meet all the state and federal requirements for transferring hazardous materials. 

     McCracken said that another priority is monitoring the effects of the ash on humans and the environment.  Water and air samples are being monitored to make sure the public is safe.  Officials claim there are no air or water emissions that are affecting the health of anyone on or off the site and that the agency will continue to monitor the area after the cleanup.

     “Progress on the short-term goals is being made. TVA has done considerable work to clean up the actual spill,” said Senator Ken Yager (R-Harriman), who represents the area affected.  “However, there is still much work to be done to meet the long-term goals: economic reparations and assurance to our citizens that the air and water are clean.”

     Five other TVA plants in Tennessee also store coal ash.  These sites have been inspected since the Kingston spill, with more extensive work forthcoming.  TVA has paid $43 million to local communities in reparations for the damages incurred in the spill.  The total cleanup is estimated to cost up to $1.2 billion.

Issues in Brief

Small group cooperatives -- The full Senate gave final approval this week to legislation, Senate Bill 2836 sponsored by Senator Steve Southerland (R-Morristown), reducing the time in which participants must commit to purchasing coverage through small group health cooperatives from five to three years. The bill amends a law passed by the General Assembly in 2008 to provide more flexibility for small business owners who may choose to form these pools.  The time reduction still ensures pool stability, while working to attract more interest from small businesses and the insurance industry to participate in the cooperatives.

State’s financial institutions are sound – Tennessee’s state banking industry is “challenged but remains sound” according to state Commissioner of Financial Institutions Greg Gonzales.  The Commissioner appeared before the Senate Commerce Committee this week to present his department’s budget recommendations.  The Department regulates 12,000 institutions with 153 staff members.  Gonzales said non-bank mortgage institutions have declined by 50 percent since the recession began.  He said the state has still not experienced the issues that are seen in other states due to good management practices by banks in Tennessee.

Second Amendment Rights -- The full Senate has approved a bill that allows individuals without a handgun carry permit to transport an unloaded rifle or shotgun in a privately-owned motor vehicle.  The bill, Senate Bill 2390, would apply as long as the rifle or shotgun does not have ammunition in the chamber or cylinder, and no clip or magazine containing ammunition is inserted in the rifle or shotgun or is in close proximity to the weapon.  A separate bill, Senate Bill 842, was approved by the Senate Judiciary Committee that authorizes persons with a handgun carry permit to carry their gun while bow hunting during the archery-only deer season.

Recognizing victims of crime – Victims of crime were recognized under a resolution receiving approval in the State and Local Government Committee this week.  The resolution
acknowledges all of those who work to lessen the trauma of crime victims and assist in their personal recoveries including volunteers, law enforcement officers, prosecutors, victim service providers, corrections officers, parole and probation officers, counselors, physicians, and health care professionals.  Senate Joint Resolution 778 also expresses admiration and appreciation “for those victims and survivors of crime who have turned personal tragedy into a motivating force, not only to improve the rights and treatment of other victims of crime, but also to build a better, more just community.”

Capitol Hill Week: Jobs, The Econmy and Health Care The Focus On Capitol Hill

Thursday, February 11, 2010

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

     (NASHVILLE, TN),  February 11, 2010  --  Jobs, the economy, and health care in Tennessee were recurring topics for discussion on Capitol Hill as lawmakers completed the third week of the regular 2010 legislative session.  While Senate committees are beginning to move a number of bills to the floor for final consideration, they continue to be updated on a wide variety of important matters facing Tennessee.  These subjects range from what Tennessee is doing to battle cancer to how we can better use technological advances to help struggling students succeed.

Two Reports released this week provide grim state economic forecast

     Two separate reports were released this week, providing a grim forecast for Tennessee’s immediate economic recovery.  The first, which is the state’s January revenue report, showed Tennessee is in its 20th consecutive month in which sales taxes have recorded negative growth.  The revenue report tracks Tennessee’s tax collections on a month to month basis and is an important guide to help lawmakers construct the budget.  The news was particularly disappointing because it contained the December holiday sales tax collections which had showed a slight improvement at the national level. 

     Tennessee’s sales tax collections continue to be a concern for the state’s general fund.
Year-to-date collections for the first six months of the fiscal year, which began July 1, are $185 million less than the budgeted estimate.  They also performed worse than the national average in the third quarter of 2009.  If the trend continues to show under collection, it could mean the state’s Funding Board will have to adjust the budget estimates for the 2010-11 budget year when it meets on March 31.  The budget presented by Governor Bredesen last week is crafted from the high end of the revenue figures adopted by the Funding Board at a 1.9 percent growth rate. 

     The second report, prepared by the University of Tennessee’s Center for Business and Economic Research, focuses on Tennessee’s economic outlook over the next several years.  The study claims it will take “well over two years” for the state’s economy to rebound fully mainly due to Tennessee’s high unemployment rate. 

     Revenues are not expected to surpass their pre-recession peak until 2012-13, when the state’s unemployment rate is predicted to improve.  The state’s unemployment rate stood at 5.3 percent in 2007 and has more than doubled to 10.9 percent as of January.  The report projects that the rate will remain “stubbornly high for several years to come, not falling below 7 percent until 2016.”

     “It is more critical than ever that we keep our low tax, pro-growth business climate in Tennessee,” said Senate Commerce and Labor Chairman Jack Johnson (R-Franklin).  “We are very focused on improving Tennessee’s business climate so the private sector will have the confidence to create new jobs in the state.”

     The report showed the state’s automobile industry is a double-edged sword in looking at Tennessee’s job outlook.  While employment in the state’s transportation sector has declined during the recession, Tennessee will benefit from the Volkswagen and Nissan Leaf production facilities which will soon begin to operate.  The report points to the need for educational improvements, stating Tennessee “will need to offer a highly skilled workforce to maintain and support the automobile industry cluster.”
      
Commerce Committee approves Tennessee Health Freedom Act

     Several health issues were debated on Capitol Hill this week, including legislation approved by the Senate Commerce and Labor Committee to protect the freedom of Tennessee patients to make their own health care choices, regardless of any future federal action.  The bill, called the Tennessee Health Freedom Act, mirrors legislation currently being considered in over thirty other state legislatures.  It is sponsored by Senator Mae Beavers (R-Mt. Juliet), Senator Jim Tracy (R-Shelbyville), Senator Dolores Gresham (R-Somerville) and Senator Diane Black (R-Gallatin).  

      “Never in our history has the U.S. government required its citizens – simply because they are citizens – to purchase a particular product from a private company or government entity,” said Senator Beavers.  “This act seeks to protect the rights of Tennesseans to choose what type and quantity of health insurance to purchase.”

     The legislation, Senate Bill 3498, would protect a citizen’s right to participate, or not participate, in any healthcare system, and would prohibit the federal government from imposing fines or penalties on that person’s decision.  It does not seek to “nullify” any federal law, as it would still allow individuals the option to participate in a federal program; however, it would also acknowledge the right of individuals to refuse to participate in a government-run health insurance program.  The bill also calls on the state’s Attorney General to take action in the defense or prosecution of rights protected under the legislation.

     “No matter what legislation eventually passes through Congress, as state legislators, we need to stand up for the citizens of this state, our fantastic doctors and hospitals, and stand up against unconstitutional and unprecedented federal mandates,” Beavers added.   

     The Tennessee Health Freedom Act will now move to the Senate floor in the coming weeks to be voted on by the entire Senate, and then the measure must be approved by the House of Representatives before it going to the Governor for his signature.

Bill would strengthen Tennessee’s small group health cooperatives

     The Senate Commerce Committee has approved legislation reducing from five to three years the time in which participants must commit to purchasing coverage through small group health cooperatives. The bill amends a law passed by the General Assembly in 2008 to provide more flexibility for small business owners who may choose to form these pools.  That law defined a health group cooperative as a private purchasing cooperative that contains at least 1,000 employees or has a minimum of 10 participating employers.  Membership is voluntary, but participants must commit to purchasing coverage of fully funded plans through the cooperative for five years. 

     The legislation approved this week, Senate Bill 2836, simply reduces the number of years in which participant must commit to three years.  The time reduction still ensures pool stability, while working to attract more interest from small businesses and the insurance industry to participate in the cooperatives. 

     “Health insurance market reform continues to be a high priority for small businesses in order to attempt to address rising costs to maintain coverage for employees,” said Senator Steve Southerland (R-Morristown), sponsor of the bill.  “The cooperatives allow more small business owners to join together to negotiate lower health insurance rates. It not only encourages more small employers to purchase health insurance, it also gives them predictability and stability in health-insurance rates.”

Tennessee’s Comprehensive Cancer Control Coalition working to fight state’s high cancer rates

     The Senate General Welfare, Health and Human Resources Committee heard testimony this week from Bruce Behringer, Associate Vice President for East Tennessee State University’s Division of Health Services; Robert Clark, St. Jude Hospital’s Government Affairs Representative, and Cancer Surgeon, Dr. Ingrid M. Mazoi of Tennessee’s Comprehensive Cancer Control Coalition regarding their efforts to fight the state’s high cancer rate.  The group told lawmakers that Tennessee has the 4th highest incidence rate in the nation for new cases of cancer. 

     Cancer remains the second leading cause of death in Tennessee, impacting every individual, family and community.  The problem is particularly acute among African Americans, as Tennessee ranks 1st in the nation in breast cancer mortality among black women in the state.  Similarly, new case rates for African American men in Tennessee are at least 50 percent higher than national rates in all but one health region, while colorectal cancer among black females in Tennessee have the 3rd highest incidence rate nationwide. 

     Lung cancer rates are also elevated, with Tennessee having the 4th highest rate in the U.S.  The Coalition leaders said that lung cancer is the most important reason why Tennessee’s overall cancer mortality rate is so high compared to national rates.

     The Coalition provided the committee with a comprehensive plan for action to guide member’s efforts and promote collaborations to fight the disease.  Using a state leadership structure, as well as standing and resource committees, more than 400 volunteers are working with the Coalition to battle cancer across Tennessee.  A cancer registry was established in 2005 to track the disease by gender, type, and other factors to provide valuable information to help direct treatment and education efforts. 

     The group said one of the biggest battles to help combat the disease is to get people to change behaviors to reduce their risks and prevent cancer.  The prevention efforts include reducing tobacco use, making good food choices and exercise to maintain a healthy weight.  The U.S. Department of Health and Human Services estimates that 50 percent of all cancer deaths could be prevented through eliminating or reducing unhealthy behaviors.

     “I thank the members of the Comprehensive Cancer Control Coalition for the very important work it is doing,” said Senate General Welfare, Health and Human Services Chairman Rusty Crowe (R-Johnson City).  “We must find ways to begin reducing Tennessee’s high cancer rate.  I look forward to seeing their plan in action and hearing from them again as we address this important health issue.”

Education Committee hears testimony regarding use of technology to help students succeed

     The Senate Education Committee heard testimony from two separate groups regarding the use of technology to help students in Tennessee succeed.  Representatives from the Tennessee Board of Regent’s talked to committee members about their Virtual Dual Enrollment Lap Top Pilot Project, which has assisted 300 high school juniors and seniors through the use of computer technology to be “college- and work-ready.” 

     The project was designed for high school students who are eligible for the lottery dual enrollment scholarship and enrolled in post secondary courses that require a computer to access classes.  Officials say the project has provided students in rural counties an opportunity to be involved in a dual enrollment program that might not have been available otherwise.  With an 86 percent retention rate, the program has boosted the interest of high school students in becoming dually enrolled.  In Community Colleges, where dual enrollment was already working, the program provided assistance to keep students moving forward in their studies. 

     Lawmakers also heard testimony from a representative of the Education Program for Gifted Youth, a program offered by Stanford University and operating in the Memphis area.  That program, which also uses the Internet for distance learning, helps underperforming students close the achievement gap by focusing on individual needs.   Officials say students enrolled in the program increased their test TCAP test scores by an average of 20.5 points.

Bills in Brief

Black fly suppression -- The Senate Commerce Committee has approved a bill to allow the black fly suppression program to continue for another year.  The bill, Senate Bill 2498 sponsored by Senator Steve Southerland (R-Morristown), addresses the problem experienced by residents and tourists along the Pigeon and Little Pigeon Rivers in the Great Smoky Mountain area where the black flies attach their larvae to rocks in the flowing waters.  The suppression program includes an EPA approved chemical which can be placed in the river to reduce the larvae before the flies hatch without causing harm to humans or the environment.  The flies, also referred to as gnats, are attracted to carbon dioxide breathed by humans and livestock.

Carbon monoxide alarms – Legislation, Senate Bill 3581 sponsored by Senator Bill Ketron (R-Murfreesboro), was approved by Senate Commerce Committee members this week to require new residential construction to contain a carbon monoxide alarm detector.  The detectors can be combined with smoke detectors.  Carbon monoxide cannot be detected through normal human senses as it is odorless and invisible.  Each year in the U.S., 400 people die and 20,000 seek hospital treatment due to carbon monoxide poisoning.  The cost of the detectors is as low as $20.00. 

Capitol Hill Week: Governor presents budget proposal

Thursday, February 04, 2010

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

(NASHVILLE, TN),  February 4, 2010  -- The focus on Capitol Hill this week turned to the budget as Governor Phil Bredesen unveiled his proposal to fund state government for the 2010-2011 fiscal year that begins July 1.  The governor said the $28.42 billion plan was the most difficult budget he has faced as he laid out his recommendations to cut permanent funding for 1,363 filled jobs and eliminate 456 vacant positions.  In addition, the governor is asking the legislature to approve $71.7 million in tax and fee increases.

      “Unlike Congress, the Tennessee General Assembly is constitutionally bound to balance the budget and we are not going to do it on the backs of the taxpayers,” said Senate Republican Leader Mark Norris (R-Collierville).   “The legislature will closely examine the budget over the next two months as the various agencies and departments are called before Senate committees to further explain the details.  The weakened economy means lawmakers must be vigilant to make sure that taxpayer dollars are spent in the most efficient and effective manner.”

     Tennessee’s revenue collections have continued to underperform at unprecedented levels as the national economy has declined.  December tax collections represent the 19th consecutive month of negative sales tax growth. 

      Bredesen’s proposed budget would make $394.2 million in recurring reductions in state dollars for a wide variety of programs and services, including $200.7 million in the state’s TennCare program, $64.3 million in higher education, $15.9 million in Children’s Services and $20 million in non-BEP K-12 funds.  The governor’s proposal would stave off further reductions for two more years for about 40 programs by asking the General Assembly to tap into $202 million from the state’s Rainy Day Fund and TennCare reserves to keep them afloat.  Some of the programs slated to be continued for two years are the Coordinated School Health Program, Exemplary Educators programs, Family Resource Centers, Minority Health Initiative, HIV rapid testing, Behavioral Health Safety Nets and Family Support Services, to name a few.

      The Rainy Day Fund is the state’s savings account to be used in cases of severe economic hardship.  The fund will be essential if the economy worsens.   The TennCare Reserve Fund was put into place to make sure the state had money to address the fluctuations in costs in the program, which were particularly prevalent in the early years.  The reduction will leave about $550-$600 million in the two reserves combined.

    “The cuts are tough and there is going to be much pressure to restore funding from reserves,” said Finance Chairman Randy McNally (R-Oak Ridge).  “However, we don’t know how far in the future it will be before the economy turns around.  We need to maintain adequate reserves in order to deal with future shortfalls, as well as other things that could impact the state, like natural disasters or unfunded mandates from Washington,” he added in referring to the health care bill pending in Congress.  McNally said passage of the federal bill could add billions of dollars in costs to state governments across the nation in what Bredesen has termed “the mother of all unfunded mandates.”

     The governor’s tax proposals include a $21.3 million proposed sales tax on cable and satellite television services; $2 million to tax cable boxes, a $6.5 million increase in the rate charge on interstate and international business telecom service; $10 million to clarify ‘sale for resale’ provisions, and $10 million to repeal the dividend paid deduction on real estate investment trusts (REITs).

     In addition, the governor proposed that $21.9 million would be raised from a $2 per year increase for the cost of a Tennessee driver’s license.  The measure, however, would extend the driver’s license renewal time from 5 to 8 years.  The governor said the driver’s license fee has not been increased since 1988.  The fee increase would allow the Department of Safety to maintain 85 trooper positions in 13 rural counties that had been slated for reduction and 56 driver’s license positions. In addition, the Department of Safety would use the proceeds to purchase new radio equipment to digitally enhance emergency communications.

     Improvements to the budget include $47 million in growth money for the state’s Basic Education Program; $82 million to shore up the Tennessee Consolidated Retirement System; $164.7 million to provide a one-time 3 percent bonus to state employees and teachers; $23.5 million for an economic development package; $10.9 million to restore land and soil conservation funds; $2.3 million in perinatal grants; and, $7.6 million to keep prisoners in local jails.
 
         The budget is crafted from the high end of the revenue figures adopted by the Funding Board at the 1.9 percent growth rate.  Under the proposal, 24 percent of the budget will go to TennCare, 19 percent to Pre-K-12 education, 13 percent to higher education, 6 percent to transportation, with the remaining 38 percent going to other state government needs.  Approximately $12.44 billion of the budget is derived from state funds, with $11.2 coming from taxpayer dollars being returned to the state from the federal government.  The remainder, which totals $4.8 billion, comes from departmental revenues and fees. 

Senate approves legislation to help protect children from Internet predators

     Legislation was approved by the State Senate this week to allow law enforcement to act more quickly to protect children from sexual predators. The bill, Senate Bill 1529 sponsored by Senator Tim Burchett (R-Knoxville), authorizes district attorneys general or assistant district attorneys general to issue a subpoena for the Internet Protocol (IP) address of a suspected child sexual predator.  The bill mirrors federal law on the matter. 

     “We must do more to stop children from being victimized,” added Burchett.   “This legislation speeds up the process to let us get to endangered kids faster.”

     An IP address can be used to identify the region or country from which a computer is connecting to the Internet. It can also show the user's general physical location.

     Last Spring, actor and child protection activist David Keith, who is the spokesman for the National Association to Protect Children, testified before legislative committees in favor of the bill.  He told lawmakers that since 2005 more than 750,000 pedophiles have been identified by computer in the United States, with only two percent of those being investigated.  He said hundreds of thousands of children are being raped, tortured, filmed and traced on the Internet, and law enforcement agencies don't have the resources to investigate the crime. 

     “We must keep up with the technology used by these sexual predators to prey on children,” said Senator Burchett.  “This bill allows the prosecutor to subpoena this information to get the physical address of suspected predators before harm is done to their victims.” 

     The legislation, which has already been approved by the House of Representatives, now goes to the governor for his signature. 

Legislation approved by full Senate to boost sale of “prime milk” by Tennessee dairy farmers

     The full Senate has approved a bill sponsored by Senator Mike Faulk (R-Church Hill) to help Tennessee’s dairy farmers by establishing a category of milk to be called "Tennessee Prime Milk.”  The voluntary milk labeling category is designed to promote Tennessee's new official state drink: milk!

     The bill, Senate Bill 1899, aims to help Tennessee's dairy farmers which have declined from 10,000 active farms at the height of the business to 500 today.  The measure allows marketing and sale of a "home grown" milk product with solid non-fat content that will likely be priced below organic milk categories. 

     "We need to do everything we can to help our local dairy farmers who are struggling in a tough economic climate," said Senator Faulk.  "This bill provides them a platform to launch a product to boost sales of milk from Tennessee dairy farms."

     The voluntary program calls for the milk to be certified by the state’s Department of Agriculture for sale at retail stores as “Tennessee Prime Milk” if it meets higher standards.  Bottling plants can label their milk as "Tennessee Prime Milk", as long as 80% of the milk is produced in Tennessee.  Reduced fat Tennessee prime milk sold at retail must contain at least 10 percent milk solids not fat (SNF); non-fat or skim Tennessee prime milk must contain at least 9 percent SNF; and whole Tennessee prime milk must contain at least 8.5 percent SNF.

     "Only 50 percent of milk consumed in the state is from Tennessee dairies," added Faulk.  "Hopefully this legislation will give consumers an optimal Tennessee product, while helping our farmers."

     The bill now goes to the House of Representatives for approval of an amendment before going to the governor for his signature.

AAA tells committee that Tennessee has made significant progress in road safety

     Tennessee has made significant progress in road safety according to three representatives of the AAA Auto Clubs of Tennessee who testified in the Senate Transportation Committee this week.  Tim Wright, Don Lindsey and Kevin Bakewell of the AAA Auto Club South and AAA East Tennessee, said “Volunteer State leaders have done some remarkable things in the past ten years to make Tennessee a leader in enacting policies to keep motorists safe.”

     The officials praised the law passed by the General Assembly in 2000 to implement graduated licenses for teen drivers.  Lindsey said that, from the law’s effective date in 2001 through 2008, the rate of teen driver deaths per 100,000 licensed teen drivers dropped 20 percent.  Similarly, they cited the passage of a primary seat belt law in 2004 as having improved the number of Tennesseans who “buckle-up” by 9.5 percent to reach 82.5 percent compliance.  In addition, Lindsey said the 2004 law requiring child passenger booster seats have reduced the five- to nine-year-old child passenger fatality rate by 48 percent in deaths per 100 million vehicle miles traveled.

     On the state’s new law banning texting while driving, the group cited a study showing a similar law banning texting while driving in California cut out the dangerous practice by 70 percent.  Research shows that although 82 percent of Americans surveyed say distracted driving is a serious problem, 14 percent admitted to reading or sending text messages while driving. 

     “Texting is just a quantum leap above (cell phones) in how much it distracts a driver,” said Lindsey, who is Director of Public Affairs at AAA.  “It takes your eyes off the roads for at least four to five seconds at a time.  All it takes is two seconds to have a crash.”

     Senate Transportation Chairman Jim Tracy (R-Shelbyville) pushed passage of the legislation after a constituent lost her grandson due to texting while driving.  The new law prohibits sending or reading text messages on public roads and highways while the driver is operating a motor vehicle in motion.  

     “I am very pleased that we continue to see that legislation banning texting while driving has been successful,” said Senator Tracy.  “I think we will continue to see improvements as we educate drivers about the dangers that texting behind the wheel of a vehicle poses.  As more studies are conducted we will continue to see that this new law is saving lives.”

     “It is good to hear that we are moving in the right direction in keeping our citizens safe,” added Tracy.  “We still have much work to do, particularly in getting drunk drivers off our roads, but I am very pleased that the safety measures implemented are working to make our streets safer.”

Higher Education working collaboratively to improve teacher quality

     Tennessee’s colleges and universities are working collaboratively to improve teacher quality according to officials of the state’s Teaching Quality Initiative who testified before the Education Committee this week.  Co-chairs Dr. Hal Knight, Dean of the College of Education at East Tennessee State University, and Dr. Bob Rider, Dean of the College of Education at the University of Tennessee at Knoxville, told lawmakers the group is working on both the teacher quality and teacher supply issues facing Tennessee.

     The collaboration was formed to bring a shared vision among Tennessee higher education institutions to assure that teachers graduating from those institutions demonstrate higher levels of knowledge, competence and personal characteristics to bring student learning to new heights.  It will also ensure programs in the state’s colleges and universities are accountable for their graduates. 

     Dr. Knight thanked the Education panel for passing legislation last month to allow colleges and universities to receive feedback on how teachers who graduate from their colleges are performing.  The legislation gives teacher training programs access to non-identifying TVAAS data on their graduates to help identify the strengths and weaknesses of their programs.
 
     One of the group’s goals is to actively recruit science and mathematics majors to teach in Tennessee schools.  To accomplish this there has been a collaborative effort between the colleges of sciences and education.  This effort will help the state’s plan to enhance its Science, Technology, Engineering, and Math (STEM) program.  The state is partnering with Battelle, which manages the Oak Ridge National Laboratory, to provide an extensive network of STEM programs across the state.  This includes building new science labs, adding new technology, and creating new curricula to inspire and create new interest in science and math.

     The group is also focusing on teacher mentoring programs to help provide the support system needed to establish those who are new to the profession.  The premise is that new teachers need a robust program of mentoring that begins early in their preparation programs and continues through their early years in the profession.  Induction and mentoring for beginning teachers have been shown to have multiple benefits for both teachers and the systems in which they work. 

     “I am pleased that our collaborative efforts are charting a course for a strong teacher recruitment and support system,” said Senate Education Chairman Dolores Gresham (R-Somerville).  “Our teachers have been the mainstay of Tennessee public education.  We must continue to look for ways to give them the tools they need to help boost student achievement.”

Issues in Brief

     Soldiers honored – Tennessee’s soldiers serving in Iraq and Afghanistan were honored this week by Governor Phil Bredesen and the General Assembly.  In the State of the State Address, Bredesen recognized several soldiers who were deployed, some who have served multiple missions.  Lawmakers stood in silence to recognize the 11 Tennesseans who lost their lives in the War on Terror over the past year and the 114 who have made the ultimate sacrifice since 2001.

     Encouraging children to engage in outdoor physical activities -- The Senate passed Senate Joint Resolution 705 this week to encourage Tennessee children to engage in physical activities outdoors.  The bill, which is sponsored by Speaker Pro Tempore Jamie Woodson (R-Knoxville), comes from the “Every Child Outdoors-Tennessee” coalition of more than 100 supporting organizations.  Studies document that “children who engage in outdoor physical activities are healthier, perform better in school, have better social skills and self-image and lead more fulfilled lives.”  They also show the average child spends 6.5 hours per day in front of the television, on the computer or texting

     Unemployment Fund -- Tennessee Finance Commissioner Dave Goetz told the Senate Finance Committee on Tuesday that the state would have to borrow money by the end of the month to keep the fund solvent.  He also predicted a deficit could occur next year.  The money borrowed is interest-free until December, at which time the federal government will begin to charge if the funds are not paid back.  

    Eliminating government duplication -- The Senate Education Committee has approved a bill to eliminate the General Assembly’s Education Oversight Committee, a duplication of the efforts of the House and Senate Education Committees.  Passage of the bill, Senate Bill 2408 by Senator Dolores Gresham (R-Somerville), would save the state $25,200 in travel and per diem costs.  The Committee was created to oversee implementation of the Master Teacher Program which has since been phased out.

     Employer options for payment of wages -- Tennessee employers would have the right to issue payment of wages through either an electronic automated fund transfer or a prepaid debit card under legislation approved by the Senate Commerce Committee this week.  The bill, which is permissive, aims to help employers lower expenses by giving them the right to use these payment methods as an alternative.  The move is expected to save employers, who choose to utilize fund transfer, an estimated 75 percent from the costs of issuing payment by check.  Employees would not be charged for debit card withdrawal if they choose to access an in-network ATM machine to receive the payment.  The legislation, Senate Bill 2633, is sponsored by Senate Commerce Committee Chairman Jack Johnson (R-Franklin).