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

 (NASHVILLE, TN), March 24, 2010 -- Fueled by the recent passage of  federal healthcare legislation in Congress, Lt. Governor Ron Ramsey (R-Blountville), Senator Mae Beavers (R-Mt. Juliet) and members of the Senate Republican Caucus held a press conference on Wednesday urging the state's House of Representatives to take immediate action to pass the Tennessee Health Freedom Act.  Passage of the bill, which is pending action in the House Industrial Impact Subcommittee, would put Tennessee into position to join the Virginia and Idaho legislatures on the front lines in filing legal action to support the rights of citizens within their boundaries not to participate in the massive federal government takeover of the nation's health care system.

The Tennessee Health Freedom Act was approved in the State Senate on February 18 by a vote of 26 to 1, with 5 members abstaining.  

“This legislation has become vital to challenge the massive unfunded mandate that has been passed down to the states,” said Senator Mae Beavers, R-Mt. Juliet, who is sponsor of the bill.  “Never in history has the federal government mandated that Tennesseans buy anything.  This is kind of equivalent to the federal government saying you have to buy a General Motors car because we bailed ‘em out and we have an interest in it. If the people of Tennessee don’t want federal health care, this will be the way for them to choose other avenues.”

The legislation, Senate Bill 3498, prohibits the federal government from imposing fines or penalties on a person’s decision not to participate in the federal plan.  Due to constitutional restraints, the bill does not “nullify” the federal law, as it would still allow individuals the option to participate in a federal program. However, it 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 this legislation.

Earlier this week Lt. Governor Ron Ramsey renewed his efforts to persuade Tennessee Attorney General Bob Cooper to join his colleagues in at least 13 other states in legal action on the matter.  Ramsey had already asked Cooper to make preparations for protective legal action when the federal health care bill was approved by the United States Senate in December.

“The United States Constitution does not give the federal government the authority for this massive power grab that will reduce individual liberty and strangle state government finances," Ramsey said. "Politicians in Washington may have temporarily lost their minds but we still have our sanity out here in the states and we need to take action to protect our citizens from these mandates.”

“The federal healthcare law is an unprecedented encroachment on the personal liberty of our citizens,” added Senate Majority Leader Mark Norris (R-Collierville).  “Tennessee cannot sit idly by and allow the rights of our citizens to be violated by this mandate.”

The federal action is expected to cost Tennessee more than $200 million annually.  It comes at a time when the state is in its 21st consecutive month in which sales tax revenues have recorded negative growth.  

“Tennessee is suffering great financial hardship in these economically challenging times,” added Norris.  “We cannot print money like the federal government.  This federal mandate will be devastating over the long run, consuming anticipated growth in revenues once the economy recovers in several years.  This means we will not be able to make any future improvements in critical state needs like education and public safety because Congress has tied our hands with their massive healthcare program.”

The Industrial Impact Committee amended the bill with a procedural amendment and delayed further action on the measure until next week. 

Bill would improve state’s “Silver Alert System”

The Senate voted this week to improve Tennessee’s “Silver Alert System” by removing the age requirement to include any citizen with Alzheimers, dementia, or a physical impairment to be covered under the act.  Previously, the law was limited to those 60 years of age or older. 

The “Silver Alert System,” which was passed into law last year, works similarly to the “Amber Alert System” to help locate missing individuals who have Alzheimer’s disease or related dementias.  The program calls for local law enforcement agencies to coordinate with non-profit organizations such as A Child is Missing or the Alzheimer’s Association to aid in their efforts. 

 “This legislation brings a community to their aid when a senior is missing to take advantage of the short window of time needed to bring these vulnerable citizens home and avert a tragedy,” said Senator Randy McNally (R-Oak Ridge) sponsor of the bill.  “There is a critical 24-hour time period in which to locate missing seniors.  This program is designed to disseminate quickly descriptive information about the missing person, so that citizens in the affected area can be on the lookout for the endangered person and notify local law enforcement with any relevant information.  I am very pleased that we have made improvements to this law to cover others who are impaired.”

Approximately 100,000 Tennesseans and as many as 5.2 million persons nationwide are living with Alzheimer’s disease, according to the Alzheimer’s Association.  The Silver Alert system is working in eight states and has resulted in the safe return of a majority of those reported.

The Alzheimer’s Foundation of America has reported that six in 10 of those with Alzheimer’s disease will wander away and become disoriented.  Half of those who wander are found within five miles of their home.  Of those not found within 24 hours, half will be seriously injured or die.

The legislation, Senate Bill 2903, now goes to the governor for his signature. 

Plan would help hospitals avoid devastating cuts

Members of the Senate General Welfare, Health and Human Services Committee voted this week to approve a plan sponsored by Senator Doug Overbey (R-Maryville) to help hospitals avoid almost $659 million in cuts proposed in Governor Phil Bredesen’s 2010-2011 budget.   Hospitals have asked the General Assembly to assess a coverage assessment on them in order to raise $230 million.  Money raised would be used to draw down $430 million in federal funds available through a temporary Medicaid match program. 

Language in the legislation, Senate Bill 3528, also ensures that any assessment would not be passed along to patients.  In addition, hospitals have negotiated, contracted rates with payers that would prevent them from passing a fee to patients.   

“The proposed hospital coverage assessment will allow hospitals and the state to have some breathing room until the national and state economies recover,” said Senator Overbey.  “The assessment will not be passed on to patients, nor will the federal match affect the federal deficit.”

Hospital officials say the budget cuts, if not restored, would have a long-term impact on TennCare enrollees, hospitals and other providers and patients, particularly Level 1 trauma centers and hospitals in the most rural areas of the state.  It would also have severe ramification for high cost services, such as treatments needed for burn, perinatal and hemophilia patients.

The assessment would be based on 3.5 percent of a hospital’s net patient revenue according to its 2008 Medicare cost report.  The money would restore cuts made to such services as critical access hospitals, the Graduate Medical Education program, a $10,000 cap on inpatient and the 8-visit limit imposed on outpatient services, therapies, and office visits.  Money raised by the fee would also provide funds for the medically needy program, critical access hospitals and payments to reimburse hospitals for a portion of their uncompensated TennCare.  Governmental hospitals, critical access hospitals, freestanding rehabilitation hospitals, long term acute care hospitals and pediatric research hospitals are not included in the assessment, as well as state mental health institutes.

“While patients will be protected from this assessment being passed on to them, citizens all across the state will feel the effect if the General Assembly does nothing and the proposed $659 million in cuts take effect, forcing hospitals to restrict services and patient transfers,” Overbey added.

Twenty-six other states have a similar assessment plan to provide funding for their Medicaid programs and twelve additional states are currently considering such a plan.

Legislation educates women that coercion to have an abortion is a crime in Tennessee

Legislation that aims to educate women that coercion to have an abortion is a crime in Tennessee won approval this week in the Senate Judiciary Committee.  The bill, Senate Bill 3812, sponsored by Senator Jack Johnson (R-Franklin), would require a physician’s office, ambulatory surgical treatment center, or other clinics in which abortions are performed to post signs to provide women with this information about the state law and their option to receive help if they are being threatened. 

According to a survey published in the Medical Science Monitor, over 64 percent of women who received abortions said they felt pressured or coerced into having an abortion.  The sign would be posted in the waiting area and patient consultation rooms, but would not apply to clinics where an abortion is performed to prevent the death of a pregnant female.

“It is against the law to coerce a woman into having an abortion in Tennessee,” said Senator Johnson.  “This bill ensures that women are fully aware of this law and lets them know that they can seek help if they are physically threatened.”

Bill provides an educational approach to remove discarded mercury from landfills

The full Senate passed on final consideration legislation this week that provides an educational approach to keep toxic mercury-added consumer products from being improperly disposed in landfills.  The bill, Senate Bill 2403, sponsored by Senator Steve Southerland (R-Morristown), requires employers with 10 or more employees, tanning bed facilities, or businesses with 3,000 square feet or more to recycle mercury containing products, which are predominantly fluorescent light bulbs.  Other lighting products include high intensity discharge bulbs and projector lamps.

“Improper management and disposal of these bulbs will release mercury into the environment,” said Senator Southerland.  “This causes dangerous contamination of land and waterways which, in turn, destroys our food chain.”

Health problems associated with mercury exposure include digestive, cardiovascular, nervous system and kidney-related illness.  Experts maintain yearly usage of mercury containing lamps is in excess of one billion nationwide.

“Most businesses are already using responsible recycling measures to aid in efforts to keep mercury out of our landfills,” added Southerland.  “This legislation seeks to make sure other businesses are educated and informed of this requirement and the hazards it poses to our environment.”  
 
In Brief…

Government Efficiency -- State Senator Jim Tracy (R-Shelbyville) won passage of a bill this week to increase efficiency within state government departments. The legislation, Senate Bill 3013, encourages departments within state government to take comments and suggestions from both employees and the public on how to improve efficiency. Departments would be encouraged to add a public comment portal to their individual websites, under the bill, to facilitate suggestions from the general public. As departments implement the program, they will be required to report back to the General Assembly on the success of the plans during the annual budget hearings in Senate and House committees.

Government Fraud Hotline -- Similarly, the Senate State and Local Government Committee gave their approval to a bill to help ensure that government fraud and abuse is investigated by the Comptroller.  The Comptroller is presently required to investigate reports received from government employees and citizens through their hotline regarding fraud, abuse, or wrongdoing by state agencies and private corporations that contract with a state agency.  Senate Bill 3682, sponsored by Senator Randy McNally (R-Oak Ridge), expands that law to require state agency officials who have knowledge of a theft, forgery, credit card fraud, or any other act of unlawful or unauthorized taking or abuse of public money, property or services, report it to the Comptroller immediately.

Sex offenders -- The full Senate passed legislation sponsored by Senator Diane Black (R-Gallatin) to require the Board of Medical Examiners to deny or revoke the license of any physician convicted of an offense which requires registration as a sexual offender.  The bill, Senate Bill 3362, provides for communications between the Tennessee Bureau of Investigation’s (TBI) Sex Offender Registry and the Board of Medical Examiners to make sure that no existing physician is on the Registry.  The action comes after a mother in Middle Tennessee learned her child’s family practice physician was listed on the state’s Sex Offender Registry. 

Drivers License / English -- The Senate Transportation Committee has given approval to legislation, Senate Bill 63, sponsored by Senator Bill Ketron (R-Murfreesboro), to require that Tennessee drivers’ license exams are given in English.  The measure seeks to make sure that immigrants know how to read the road signs and can drive safely in Tennessee.  The bill does not apply to persons whose presence in the United States has been authorized by Homeland Security for work in companies located in Tennessee through the efforts of Tennessee’s Department of Economic and Community Development in order to accommodate those nationalities with manufacturing facilities in the state. 

Birth Certificates / Stillborns -- The full Senate has approved a proposal calling for the state to acknowledge the birth of a stillborn infant by issuing a birth certificate if the parents request one.  The legislation, SB 3189, sponsored by Senator Brian Kelsey (R-Germantown) calls for issuance of a birth certificate, upon the request of parents for stillborn infants if they are 20 weeks or more gestation or 350 grams.  The action comes after testimony from parents of stillborn infants talked to members of the General Assembly about the need for the state’s recognition that their baby had been born and its role in their healing process.  

Veterans / Professional Privilege Tax – Legislation was approved in the Senate Finance Committee that would ensure that physicians who are deployed overseas as commissioned officers in the Armed Forces are exempt from Tennessee’s $400 occupational privilege tax.  The bill, Senate Bill 2782, is sponsored by Senator Tim Burchett (R-Knoxville).

General Assembly / Mileage allowance – Members of the State and Local Government Committee voted to limit the reimbursement of in-state airline travel for members of the General Assembly to the mileage reimbursement they would have received if they had driven.  The proposal, Senate Bill 3300, is sponsored by Senator Brian Kelsey (R-Germantown),

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

(NASHVILLE, TN), March 11, 2010 -- The Senate and House Judiciary Committees approved legislation this week to attack a major source of illegal drug activity in Tennessee.  The bill, Senate Bill 3027 by Senator Steve Southerland (R-Morristown), would stiffen penalties against those who get prescriptions in another state and return to distribute the drugs illegally in Tennessee. 

Action on the bill follows a 96.6 percent increase in drug-related deaths according to a study conducted by the Centers for Disease Control (CDC). Some Tennessee law enforcement officers attribute the increase to the misuse of prescription drugs by those who obtain them legally from out-of-state “pill mills.”

“States across the South have seen an increase in crime stemming from the rise of pain clinics in Florida, where the laws are much looser than other states,” said Senator Southerland.  “These are often referred to as pill mills.  We have experienced major drug busts in several of my counties involving prescriptions obtained at these pill mills and sold illegally in Tennessee.”

The most common drugs found are OxyContin, Darvon, and Vicodin, but drug busts in Tennessee also have included Xanax and Roxicodones. The legislation would increase the penalties for the illegal trafficking of out-of-state drugs from a Class C misdemeanor, which carries a 30-day jail term and up to $50 in fines, to a Class D felony with a 2 to 12 years in prison sentence and up to $5,000 in fines. 

The lawmaker filed the bill after law enforcement officials in their East Tennessee counties brought the matter to their attention.  Tennessee law requires all entities that dispense medications to file information on controlled substances on a state database to monitor abuse.  That law has helped curb prescription drug abuse by providing information to those prescribing and dispensing the drugs to alert them of potential abusers. 

Although 40 states have laws establishing drug monitoring programs, Florida is among those which do not have a program.  That state now has one of the highest concentrations of pain clinics in the U.S., including those housed in shopping centers.  This has caused other states to pass laws cracking down on offenders who traffic these drugs within their boundaries. 

"The penalties are currently too low to serve as a deterrent,” added Southerland.  “This bill is a very good start in addressing illegal drug activity due to the purchase of out-of-state drugs.  Hopefully, this legislation will be approved so that we can curb this abuse.”

A copy of the report can be viewed at: 
http://www.comptroller1.state.tn.us/Repository/RE/SRGInterimReport2010.pdf

Constitutional amendment prohibiting income tax passes Finance Committee

A constitutional amendment to ban an income and payroll tax passed the Senate Finance Committee this week by a vote of 7 to 3 and was read for the first time on the Senate floor for consideration by the full Senate on Thursday.  The action marks the first time that such an amendment has ever passed a legislative committee in Tennessee.  

The amendment, Senate Joint Resolution 763, clarifies 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 measured by the wages they pay their workers.  The resolution authorizing the amendment must be read three times on three separate days on the Senate floor before members can cast their votes.   

"The last thing Tennesseans need to be worrying about in these difficult economic times is having to pay a state income tax or a payroll tax," said Senator Kelsey.  "I am very pleased this amendment will advance to the floor of the Senate for final consideration."

Opposition to the resolution in the committee centered on the possible need to impose an income tax during hard times like during the Depression, when the first income tax was proposed in Tennessee.

“The income tax is a very real problem facing Tennesseans today," said Senator Kelsey.  Currently, eight state lawmakers have filed “The Tennessee Income Tax Law of 2010,” House Bill 3597.

“Tennesseans need the assurance that they will not have to face an income tax, especially in these difficult economic times.  If this resolution passes, the people will be able to vote on the issue, and we will never have to face another income tax battle again,” said Sen. Kelsey.

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, in 1999 the State Attorney General issued an opinion saying an income tax was constitutional. 

A payroll tax has been proposed in recent years by elected officials as a way around an income tax.  This includes a 2.5 percent payroll tax withheld from each employee’s paycheck in Shelby County.

If passed by a majority vote in the Senate, the resolution proposing the constitutional amendment would next need to be approved by a majority vote of the House.  It must then 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.  The amendment next will go to the Calendar Committee, which will schedule the bill for a floor debate in the full Senate, which could come as early as next week. 

Pre-K study conducted by independent research group continues to show disappointing results

This week lawmakers received the third in a series of reports assessing the effectiveness of Tennessee’s Pre-Kindergarten program with disappointing results.  The study, conducted by Strategic Research group, continues to confirm earlier reports showing any gains made from Pre-K are short-term and do nothing after second grade to bridge the achievement gap between children who are at-risk those from a higher socio-economic background.

The series was commissioned by the Tennessee Comptroller of the Treasury’s Offices of Research and Education Accountability (OREA). The reports have been conducted under former Democrat Comptroller John Morgan, who now serves as Deputy Governor, and Republican Comptroller Justin Wilson.  The purpose of the study was to assess whether children who attended a Tennessee-funded Pre-K program perform better academically than a comparable group of peers who did not attend.  The disappointing report mirrors similar Pre-K study results that have been conducted in other states. 
 
“As previous reports in this series have found, there are positive effects on these outcomes associated with participation in Pre-K, although they are for the most part limited to economically disadvantaged students (those who received free or reduced-price lunch) and are evident primarily in Kindergarten and First Grade,” the report said.  “Among students who completed the Second Grade in 2007-2008, there were no significant effects for any assessment associated with Pre-K participation.  This general pattern of results is consistent with any pattern of convergence noted in previous reports, such that effect associated with Pre-K participation tend to diminish over time.”

The State of Tennessee has been funding early childhood education since 1996 when a pilot program was established for economically disadvantaged three- and four-year-olds. In the 1998, Governor Don Sundquist pushed the creation of 30 Pilot Pre-K classrooms, serving approximately 600 students.  Since then the program has grown to over 934 classrooms under Governor Bredesen, serving approximately 17,000 children at a cost of $83 million.

Senate passes legislation to set up optimal community property trust to help state compete for investment in trusts

Legislation was approved by the full Senate this week continuing efforts to make Tennessee a desirable state to establish a trust.  The bill, Senate Bill 3529, allows married couples to create and transfer property to a community property trust to help Tennessee create an optional community property system in the state. 

“This legislation continues our efforts to improve our trust laws to make Tennessee more competitive as a desirable location for trust investments,” said Senator Overbey.  “The more trusts we have in Tennessee, the more opportunities we have for investment.  This is important as we continue to make our state more competitive.”

There are two types of benefits which a community property trust would provide couples who “elect in” to the system partially or completely, including a significant tax advantage. At the death of the first spouse to die, both spouse's interests in the community property receive a full basis adjustment.  As a result, there will be no capital gain payable if the property is sold for its value at the date of the first spouse's death. Further, the increased basis will allow for increased depreciation deductions for business and investment depreciable property.  In a separate property state, if the property was jointly owned between husband and wife, only one-half of the property would receive such an adjustment in basis.

Secondly, community property is a property ownership system which generally provides for equal ownership of property by husband and wife. This general involves a sharing in the appreciation and income from the property. Likewise, there is often an equal sharing in the management of the property. This bill would provide an option for couples who find this equality and sharing arrangement the preferred form of property ownership.

“This system provides more flexibility in cases where a spouse dies and it may be necessary for the surviving spouse to sell some of the assets, added Overbey.  “Assets may need to be sold for the survivor to continue to meet the family’s needs.  This can help reduce or eliminate capital gain taxes if a full basis adjustment has been obtained.”

The community property trust can be added to existing estate planning, including revocable trusts or sophisticated wills.  If a couple had not yet accomplished estate planning, then a new joint revocable trust could be formed that would hold their community property, the husband's separate property, and the wife's separate property.  Residents outside Tennessee could form a trust in the state as long as they obtain an in-state qualified trustee.

Last month Overbey won passage of a new law to improve 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 bill now goes to the governor for his signature. 

Senate Tax Subcommittee calls for Tennessee, not the feds, to fund state’s highway program

Legislation that calls for Tennessee to keep its own road money rather than participate in the Federal-Aid Highway Program has cleared its first hurdle in the legislative process with passage in the Senate Finance Committee’s Tax Subcommittee.  The bill, Senate Bill 3678 sponsored by Senator Tim Burchett (R-Knoxville), provides for Tennessee to opt out of the federal program subject to enabling action by Congress.  The state could then elect to retain the state’s contributions to the federal Highway Trust Fund for transportation purposes. 

 “Tennessee is a donor state as far as the Federal-Aid Highway Program is concerned,” said Senator Burchett.  “We send more road money to Washington than we receive.  Unfortunately, those states who do not manage their money as well as Tennessee have reaped the benefits of these funds and have received road money paid for by Tennessee taxpayers.  This bill will bring those dollars back home to Tennessee in the future, upon authorization by Congress.”

The legislation would result in an increase in the highway fund of over $67 million upon implementation of the measure.  In the 2008-2009, Tennessee remitted $740.6 million in taxes collected from fuel, batteries and diesel to the federal highway trust fun and received $673.4 million in allocations.  Under the bill, taxes retained by the state would be directed to the State Highway Fund instead.

Last week, the Senate Transportation Committee heard testimony showing the federal government has rescinded $686 million in Tennessee’s highway funding since 2005 and officials expect another $80 million to be rescinded in the upcoming budget year.  The funds were part of the Safe, Accountable, Flexible, Efficient Transportation Equity Act (SAFETEA-LU) which is the federal government’s surface transportation program for the states’ highway, highway safety and transit needs.

“I am very pleased that this bill is moving in the Senate,” added Burchett.   “Congress has shown it is out of control and states need more stability in planning road projects.  We don’t need to be building a bridge in California or a highway in New York with Tennessee tax dollars.  I have more confidence that our state road officials can appropriately manage these funds than Congress.”

Issues in Brief

Revenue Collections -- State revenue collections once again fell short of budgeted estimates last month. Overall February revenues were $638.9 million, which is $47.1 million less than the state budgeted.  February was the 21st consecutive month of negative growth in sales tax collections since January 2008, when the downward economic spiral began.  February is the seventh month of the 2009-2010 fiscal year.  The general fund was under collected by $43.8 million and the four other funds were under collected by $3.3 million.

Drive-through beer sales -- Legislation was approved in the full Senate this week that requires anyone selling beer through a drive-through window, curb service or drive-through to be certified under Tennessee’s responsible vendor law.  The bill, Senate Bill 2486 sponsored by Senator Mike Faulk (R-Church Hill) aims to assure that clerks selling alcohol would be trained to identify fake or altered identification to prevent under-age sales or to recognize the effects of alcohol to prevent drunk driving.   The responsible vendor act, approved in 2006, requires clerks to attend a certified training course within 61 days of employment, with a follow up renewal each year and has been successful in curbing the sale of alcohol to minors. 

Children in State Custody -- The Senate Finance Committee has approved legislation to help Tennessee get a handle on counties that were committing kids into state custody at a rate three times higher than the statewide average.  The legislation, Senate Bill 2974 by Senator Diane Black (R-Gallatin) strengthens the collaborative planning process put into place last year to help families stay together, but repeals the cost-sharing provision with counties that costs them $3.5 million last year.

Illegal Drugs -- The full Senate has passed legislation to create a Class A misdemeanor offense for offenders who produce, manufacture, distribute to possess the hallucinogenic plant salvia divinorum, which is also known by its “street drug” name spice.  The drug, which was popular in Europe before spreading to the U.S., is sold primarily on the Internet.  The bill, Senate Bill 2982 sponsored by Senator Reginald Tate (D-Memphis) and Senator Diane Black (R-Gallatin), is pending action in the House Judiciary Committee.

Multiple birth siblings / School -- Schools and boards of education would be prohibited from separating twins, triplets or other multiple-birth children into different classrooms solely due to the fact they are siblings, under legislation approved by the Senate on final consideration this week.  The bill, Senate Bill 2480 sponsored by Senator Dolores Gresham (R-Somerville), allows parents to have a say in classroom placement if school officials have separated the children only because they are multiple birth siblings. 

Ocoee River Rafting -- The Senate Environment, Conservation, and Tourism Committee voted this week to change the caps that limit the daily commercial carrying capacity on the lower Ocoee River Recreational area from 4,000 to 4,500, with the cap to be lifted the following year if the customer count falls to 4,050. The bill, Senate Bill 3789 sponsored by Senator Dewayne Bunch (R-Cleveland), also authorizes the Hiwassee/Ocoee Scenic River State Park management to decrease the daily commercial carrying capacity as long as it does not go below 4,000 customers.  An annual study is also authorized by the legislation that would analyze the effect of the increased carrying capacity to be sure the river and infrastructure are functioning to meet any increased demand.  The Ocoee River was the site for white water rafting in the 1996 Summer Olympic Games.

Military / Exempt Professional Privilege Tax -- Legislation has been approved by the Senate Tax Subcommittee to exempt servicemen and women from paying the professional privilege tax when serving as a commissioned member of the medical corps of the army, the navy, the air force, or the public health service of the U.S.  The bill, Senate Bill 2782, is sponsored by Senator Tim Burchett (R-Knoxville).

International Drivers -- Members of the Senate Commerce Committee voted this week to make it a violation under the Tennessee Consumer Protection Act of 1977, to advertise, promote, or sell an international driver’s license. Drivers from other countries can purchase an official license that translates their language to English, which is valid in Tennessee.  However, unscrupulous vendors have sold documents that report to be driver’s licenses to unassuming customers for up to $500.  Violations, under the bill, would be punishable by a civil penalty of a minimum of $1,000 up to a maximum of $3,000 per violation in addition to a court ordered civil penalty of up to $1,000 for each violation.  The bill, Senate Bill 2712, is sponsored by Senator Brian Kelsey (R-Germantown).

Honoring the late Lt. Governor John Wilder -- The full Senate has approved a resolution urging the State Capitol Commission to place a bust of former Lt. Governor John Wilder in the State Capitol.  Wilder was first elected to the State Senate in 1958, but did not seek re-election in 1960. He was elected to the Senate again in 1966, becoming lieutenant governor in 1971 until January 2007.  He died on January 1, 2010 at age 88 and is listed as having served longer than any other Lieutenant Governor in the history of the United States.  Senator Dolores Gresham (R-Somerville) is the sponsor of Senate Joint Resolution 765, with all other Senate members joining as sponsors.
 
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    (NASHVILLE, TN), March 4, 2010 -- The State Senate continued to spend the majority of its time this week hearing budget proposals from various agencies and departments of state government, amid news that Tennessee continues to fall short of budget projections for the current fiscal year.  Budget Director Bill Bradley of the Department of Finance and Administration told Senate Finance Committee members on Tuesday that February revenues were worse than expected and that the administration will likely bring recommendations for further reductions in the budget presented to the General Assembly on February 1.

     The budget proposal assumed the state would fall $153 million short of the budgeted tax estimates in the general fund for the current 2009-2010 fiscal year.  As of January, the state was already under collected by $152 million.  There was also an assumption that the budget collections would improve in the second half of the fiscal year, which began on January 1. 

     “I would certainly think that the collections when we close for February are likely to be worse than we had hoped for,” said Bradley.  “I think there is a good prospect that we may have to lower our revenue estimates some more.  I would think there is the prospect that we would have to bring you some recommendations on further reductions but I can’t be very precise at this point.”

     "We have long advocated adoption of a reality-based budget,” said Senate Majority Leader Mark Norris (R-Collierville).  “Now, the reality is setting in, and timely adjustments must be made. To do otherwise merely builds a house of cards."  

     Reductions would not only effect this year’s budget, but have a ripple effect to lower the recurring base for the 2010-2011 fiscal year, meaning further reductions for the upcoming budget year.  Bradley said the shortfall is also likely to alter the state funding board projections.  Among other duties, the Funding Board is responsible for providing the Governor and the General Assembly estimates of state revenue for the current and upcoming fiscal year.  The governor’s budget proposal is crafted from the high end of the revenue figures adopted by the Funding Board at the 1.9 percent growth rate.  The Board is scheduled to meet on March 31. 

         "We continue to see unstable revenue collections," said Senate Finance Committee Chairman Randy McNally (R-Oak Ridge).  "Due to this fact, we need to be cautious in the use of our reserves."'

          Clawback payments -- On a more positive note, officials from the Bureau of TennCare told lawmakers this week that the Centers of Medicare and Medicaid Services have announced that Tennessee could keep approximately $120 million of the “clawback payments” associated with prescription drug coverage. The change will help soften the blow of Governor Phil Bredesen’s proposed $200 million in reductions from TennCare.

     Some Tennesseans who are Medicaid-waiver enrollees are also enrolled in Medicare. The federal government requires the state to contribute some of its TennCare funds in lieu of paying twice for the benefits that both programs cover, called “clawback payments.” Temporarily, the federal government will be forgiving those payments, thus saving the $120 million.

     Tennessee joined several other states in asking the federal government to suspend
the payments, because the federal stimulus aid for Medicaid meant the state
would have paid less for prescription drugs in the next two budgets.  The Centers for Medicare & Medicaid Services recently agreed, leading them to temporarily suspend the payments.

     Transportation funds -- Budget hearings in the Senate Transportation Committee included testimony this week showing the federal government has rescinded $686 million in Tennessee’s highway funding since 2005 and officials expect another $80 million to be rescinded in the upcoming budget year.  The funds were part of the Safe, Accountable, Flexible, Efficient Transportation Equity Act (SAFETEA-LU) which is the federal government’s surface transportation program for the states’ highway, highway safety and transit needs.

     “When they took away our planned expenditures, we now have zero flexibility,” said Tennessee Department of Transportation (TDOT) Chief Engineer Paul Degges.  “As of September 30, 2009, we have spent every single available dollar of apportionment in our regular work program.”
  
     “Additionally, there were funds in the recision that were actual cash taken from us,” Degges added.  “The discussion you hear in Washington is that really doesn’t effect the states, but I will tell you that is one hundred percent wrong.  It has a direct impact on projects that we have currently under design and development and so the recision has taken away our ability to deliver projects in the state of Tennessee.”

     SAFETEA-LU expired on September 30 and Congress has failed to pass new legislation, opting to patch through a series of continuing resolutions which do not give states and local governments the ability to plan for needed road projects.  States and local governments across the nation maintain a long-term authorization bill is needed to provide the financial stability and funding predictability that is necessary for transit systems and businesses to plan for the future and develop major capital projects.  Most states prefer a multi-modal, multi-year transportation authorization bill that focuses on all modes of travel to improve the nation’s transportation infrastructure, which will in turn, creates new jobs. 

     “A sound transportation system is vital to creating jobs,” said Senate Majority Leader Mark Norris (R-Collierville).   States must have a stable source of funding transportation needs to plan our budget, rather than the multiple month-to-month extensions or short-term approaches.  This is vitally important since most states, like Tennessee, require balanced budgets.  Unlike Congress, Tennessee must be fiscally responsible instead of mounting trillions in debt.”

     The Tennessee General Assembly didn't authorize all the transportation bonds the governor asked for in his budget due to the uncertainty of this Fund under an amendment that was placed on the bill by Senate Republicans.  This has proved to be a fiscally prudent action since the federal funds needed to pay interest on these bonds may not be available.  Last year, Governor Bredesen had requested authority for about $340 million in bonded indebtedness.  Under the Senate Republican amendment, the state took a year-to-year approach to make sure that federal funds are available to pay for the bonds.

Tennessee chosen as finalist in 1st round of Race to the Top Funds

       Tennessee is one of 16 states that were chosen as first round finalists for “Race for the Top” funds.  Forty states and the District of Columbia submitted applications in January to compete in the program, which will provide $4.35 billion to qualifying states.  The announcement was made in Washington DC on Thursday by U.S. Secretary of Education Arne Duncan.

    The premise is to reward states that show the greatest willingness to push innovative ideas to improve student achievement through greater testing standards, improved data collection and better teacher training.  In January, the General Assembly passed legislation in a Special Session on Education designed to put Tennessee in position to be a leader in the Race to the Top competition.  That action could help the state secure up to $500 million in federal funds for education in Tennessee. 

     “I am very pleased we have been chosen as a finalist,” said Senate Education Chairman Dolores Gresham (R-Somerville).  “This demonstrates our state's commitment to provide our students with the kinds of skills they need to succeed.  The reforms passed by the legislature in January will help Tennessee students across the state receive many more opportunities to succeed and improve their quality of life.”

     “This announcement is great news for Tennessee and further recognition that the state is taking bold steps to improve our education system,” said Speaker Pro Tempore Jamie Woodson (R-Knoxville).  “The significant, bipartisan reform efforts we have taken over the last few years have put Tennessee in an excellent position to make the final round of the Race to the Top.”

     Chairman Gresham and Speaker Pro Tempore Woodson were members of the State Collaborative on Education (SCORE) which helped guide the legislation approved to compete in the program.

     In the next step of the competition, Tennessee will send a team of up to five people to make a presentation to defend the state’s applications to the Department of Education later this month.  A panel of outside judges is assisting the U.S. Department of Education in choosing the winners.  First round winners will be announced in early April, while second round winners will be revealed in early September.

Senate General Welfare, Health and Human Services Committee approves legislation calling for state to acknowledge birth of a stillborn infant with birth certificate

     The Senate General Welfare, Health and Human Services Committee approved legislation this week calling for the state to acknowledge the birth of a stillborn infant by issuing a birth certificate if the parents request one.  The action followed testimony from parents of a stillborn infant who talked to committee members about the need for the state’s recognition that their baby had been born. 

     “This is to acknowledge for basically psychological reasons, you know, and grieving and that sort of thing,” said Beth Barnett of Cordova.  “But it’s also like a kick from the state when you find out you’re going to walk out of the hospital with almost nothing; and then you find out that the state doesn’t even recognize that you even gave birth, period.”

     Barnett said present law calls for a birth certificate if the infant lives for at least one minute.  If they do not, there is only a fetal death report which is for research gathering purposes.  The legislation, SB 3189, calls for issuance of a birth certificate, upon the request of parents for stillborn infants if they are 20 weeks or more gestation or 350 grams.

     “This legislation is a step in recognizing that there was a significant event in the lives of these parents and acknowledges that an infant was stillborn,” said Senator Brian Kelsey (R-Germantown) who sponsored the bill.  “I am very pleased that this legislation was overwhelmingly approved by committee members.”
Bill addresses responsible sale of beer at drive-through establishments

     Legislation was approved in the Senate State and Local Government Committee this week that requires anyone selling beer through a drive-through window, curb service or  drive-through to be certified under Tennessee’s responsible vendor law.  The move aims to assure that clerks selling alcohol would be trained to identify fake or altered identification to prevent under-age sales or to recognize the effects of alcohol to prevent drunk driving. 

     “Drive-up windows are a problem,” said Senator Mike Faulk (R-Church Hill), sponsor of the bill.  “A clerk is removed from a purchaser.   They can't smell their breath, it's harder to see their eyes, and you can't tell how they are walking.”

     The responsible vendor act, approved in 2006, requires clerks to attend a certified training course within 61 days of employment, with a follow up renewal each year.  It is currently a volunteer program with 459 participants.  The program has helped to reduce the sale of beer to minors in Tennessee by 30 percent, according to Danielle Elks, Director of the Alcoholic Beverages Commission.

Tennessee Senate Republican Caucus unveils newly redesigned website

     The Tennessee Senate Republican Caucus this week unveiled a newly redesigned website to keep citizens more up-to-date, including a variety of social media. The new website features the latest breaking news on Capitol Hill, as well as giving citizens the opportunity to sign up for Caucus updates through email, Facebook and Twitter. 
     “Over the last few months, the Senate Republican Caucus has upgraded through technology which allows better communication between citizens and their Republican State Senators in Nashville,” said Senate Majority Leader Mark Norris (R-Collierville).  “This improves public access to information and news on Capitol Hill in a convenient and user-friendly format.”
     “Tennesseans can use the Senate Republican Website to find contact information for their State Senator, sign up to receive newsletters and connect with their legislators,” added Senate Republican Chairman Diane Black (R-Gallatin.  “We look forward to hearing from citizens to gain their input on the issues we face.”

     The public can access the website at www.tnsenate.com.

Bill calls for collaboration to help curb the number of children submitted to state custody

     The Senate General Welfare, Health and Human Services Committee has approved legislation to help Tennessee get a handle on counties that were committing kids into state custody at a rate three times higher than the statewide average.  Children come into state custody for a wide variety of reasons, including delinquency, abandonment, and lack of basic needs, to name a few.  The legislation strengthens the collaborative planning process put into place last year to help families stay together, but repeals the cost-sharing provision with counties that costs counties $3.5 million last year.

     The state and counties have been working closely over the past several months with county courts to examine issues that can lead to higher commitment rates.  This bill deletes the cost sharing provision for counties which exceed 300 percent of the statewide average; permits the state to initiative a collaborative planning process with counties nearing 200 percent of that average; requires regular progress reports on this process; and, encourages continuation of proactive communication between the Department of Children’s Services and county courts.

     “Research shows that children are much better off if they can remain in their homes, provided that home is a safe place,” said Senator Diane Black (R-Gallatin), sponsor of the bill.  “This collaboration helps counties to work with the Department of Children’s Services to assure appropriate efforts are made before children are taken into state custody.  It also gives counties relief by deleting the cost sharing provision for counties that exceed the limit.”

Issues in Brief

  York Institute -- The Senate Education Committee voted this week to restore state funding for York Institute, a 700-student high school located in Fentress County.  The action came after Senator Ken Yager (R-Harriman), who represents Fentress County in the State Senate, urged committee members to keep the commitment made 85 years ago to World War I hero Sargent Alvin York to fund the school he struggled to build.  The York Institute funding was cut by Governor Phil Bredesen’s 2010-2011 budget, which was presented to the General Assembly on February 1. 

    Teacher Code of Ethics – Legislation was approved by the State Senate on Wednesday to place a specific code of ethics for all K-12 public education teachers into law.  The code mirrors current law, but deletes language which refers to the Tennessee Education Association's code of ethics. The bill, Senate Bill 2416, is sponsored by Senator Dolores Gresham (R-Somerville).

     Inmate relations coordinators -- The State Senate has given final approval to Senate Bill 565 sponsored by Senator Ken Yager (R-Harriman) to give inmate relations coordinators the same gun carrying privileges as correctional and certain other law enforcement officers have under Tennessee law.  The bill came to the legislature after the Attorney General issued an opinion that inmate relations coordinators were not covered under the same law that provides the right to carry firearms to these correctional officers due to an ambiguity in the law.
 
     Private higher education institutions -- The full Senate has approved a bill authorizing any private non-profit college or university that is chartered in Tennessee to purchase and contract for the purchase of any materials, supplies, and equipment through the Department of General Services in the same manner as all departments, institutions, and agencies of state government.  The measure, Senate Bill 3512 sponsored by Senator Ken Yager (R-Harriman), gives the 35 non-profit higher education schools serving 39,000 Tennessee students the use of the state purchasing plan to help them realize savings. 

     Motorcycle Lemon Law – Legislation to add motorcycles to Tennessee’s “lemon law” regarding warranty protections is headed to the governor for his signature after passage in the House of Representatives.  The Senate passed the bill last week which requires motor vehicle manufacturers, or their authorized agent or dealers, to 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).

     Troops / Voting – Another bill on its way to the governor for his signature makes 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 voters 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. 

    Eliminating government duplication -- The full Senate 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 sponsored by Senator Dolores Gresham (R-Somerville), would save the state $28,300 in travel and per diem costs.  The Committee was created to oversee implementation of the Master Teacher Program, which has since been phased out.

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