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

 (NASHVILLE, TN), April 22, 2010  --  Major legislation overhauling the way state government contracts for the purchase of up to $25 billion in goods and services has been approved by the Senate State and Local Government Committee.  The legislation, Senate Bill 3598, sponsored by Senator Bill Ketron (R-Murfreesboro), is designed to implement cost saving strategies taken from the best practices implemented by procurement officials nationwide that could save Tennessee hundreds of millions of dollars over the long run.
 
 “This bill streamlines the way we do business to help ensure Tennessee taxpayers get the best value for our dollars in state contracting,” said Senator Ketron, who is Chairman of the Fiscal Review Committee,  the legislature’s financial watchdog panel.  “We will save hundreds of millions of dollars for the taxpayers over the long run by applying best practices and modernizing how state government manages the procurement of goods and services.”

The bill uses information contained in a State of Tennessee Procurement Assessment showing state authority for contracting is divided with one path for procuring goods and routine services and another path for the purchase of professional services.  Each path has its own rules, players, decision makers, databases, technology, policies and staff.   Without a single entity in charge of or accountable for statewide procurement spending, there is currently no easy way to manage a coherent, comprehensive, statewide cost saving strategy for procurement.  The report also said it was confusing for vendors to do business with the state due to inefficient and redundant processes.

The proposed legislation would combine procurement of goods and services for the state into one central office housed in a department to be chosen by the governor.  The governor would also appoint a single Chief Procurement Officer who has extensive qualifications and experience in contract administration to head the agency.  The Chief Procurement officer would lead a staff of 88 well trained professionals to carryout the function of procurement management, contract management, contract compliance /quality assurance, and vendor customer relations. 
 
An Advisory Council for State Procurement would be established to provide counsel to the new agency, replacing the present Board of Standards and Review Committee.  It would consist of representatives from state agencies, the legislative branch and those with expertise from the vendor community.  A State Procurement Commission consisting of the State Comptroller, the Commissioner General Services and the Commissioner of Finance and Administration would be formed to examine and approve rules, regulations and procedures for the agency under the bill.  A Protest Committee consisting of the State Treasurer, the Commissioner of Finance and Administration and the Commissioner of General Services would hear protests regarding procurement of contracts as long as they have no direct conflict of interest on the matter.

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

“We are in very tough financial times right now and, if we are going to move forward, we must restructure state government from the way we know it,” added Ketron.  

The bill is similar to a new law implemented in Georgia and comes from the best practices obtained from the National Association of State Procurement Officials, the American Bar Association 2000 Model Procurement Code for State and Local Governments and reports from the Federal Government Accountability Office.  It now moves to the Senate Finance Committee for consideration.
 
In other action on state cost saving measures, the Senate State and Local Government Committee has approved legislation to provide more accurate and transparent information regarding the potential costs of legislation or state regulatory actions.  Senate Bill 3549, which is also sponsored by Senator Ketron, requires monetary estimates of all bills, ending the practice of fiscal notes classifying the impact of legislation as “not-significant.” 

Currently, fiscal notes reflect what a bill will cost over the duration of the next budget year, which runs from July 1 to June 30.  This legislation requires a three-year cost analysis and that state departments or agencies provide an estimate of the fiscal impact of proposed rules and regulations to the Secretary of State.  The Secretary of State would then post a table listing any estimated fiscal impact of all proposed regulations on its Website for transparency.

“We must take a longer-term look at the impact of legislation, given the current economic climate,” added Senator Ketron.  “This bill makes sure that all the facts are on the table about the potential cost of a bill before we vote to enact it.”
 
Long term care CHOICES Program working to provide seniors and the disabled with more health care options

The TennCare Oversight Committee heard an update this week regarding the progress of the state’s new CHOICES program for long-term care.  The program, which is a result of the “Long-Term Care Community Choices Act of 2008,” expands access to home and community-based services for seniors and the disabled to allow them to age in place in their homes. 

There were no alternatives to institutional nursing home care in Tennessee before 2003, with the state ranking last in the nation in home and community based services expenditures for the elderly and adults with disabilities.  Although home and community-based care services began in Tennessee in 2004, there was slow growth through 2006, with only 1,131 persons enrolled in the program in the first two years.  After implementation of the new law, home and community-based services make up 9.32 percent of all long term care funding, which is up from .74 percent in 1999. 

The CHOICES program integrates TennCare nursing facility services and home and community based services for the elderly and adults with physical disabilities into the existing managed care system.  The goal is a more balance long-term care system depending on the needs and preferences of people receiving long term care services. 

On March 1, the initial enrollment target for CHOICES was set at 7,500 for home- and community-based services.  The enrollment target will increase to 9,500 on July 1, 2010.  The state has the potential to serve as many as 11,000 members now that program slots can be refilled as soon as they become available, which will nearly double the number of people receiving home- and community-based services in the first year of the CHOICES program. 

The program is currently serving new enrollees in Middle Tennessee and is now looking ahead to the implementation of CHOICES to those in need of long term care services in East and West Tennessee. 

“This program restructured how long-term care is handled in the TennCare program by providing elderly and disabled Tennesseans with more choices and a simpler process for accessing them,” said Senator Diane Black, one of the sponsors of the 2008 legislation and a member of the Joint Committee on Long Term Care. “This will allow us to serve more people in their homes with the kinds of services that meet their needs in a way that makes better financial sense.”
 
In other action on health care, the TennCare Oversight Committee was updated on new federal health reform bill signed by the President on March 23.  TennCare officials said that the new federal law changes many aspects of health care in the U.S., including the required insurance coverage for all individuals, new rules for insurance providers, the creation of a health insurance exchange, and broad changes to state’s Medicaid and CHIP programs. 

Officials said that while the law provides an outline of the changes ahead, the federal government must release policies, regulations and guidelines before final details are known.  The Department continues to receive interpretation of the bill as passed using information from the Congressional Budget Office, the federal government, Kaiser, and other state Medicaid programs, as well as, from Tennessee’s own internal data.

Some changes impacting Medicaid programs will take place in the next few years; however, most do not take effect until 2014.  Among the immediate changes is the Maintenance of Effort (MOE) requirement that provides Medicaid agencies cannot change eligibility standards, methodologies or procedures to be more restrictive than they were when the federal bill was signed into law.  

Senate Judiciary Committee continues attack on crime

The Senate Judiciary Committee continued to make progress in attacking crime in the state with passage of several bills this week, including two measures sponsored by Senator Rusty Crowe (R-Johnson City) to address domestic violence.  One proposal, Senate Bill 2708, prohibits a respondent of an order of protection from telephoning, contacting, or otherwise communicating directly or indirectly with the petitioner.  The bill makes it clear that the person to whom the order is directed cannot contact the victim “for any purpose.”   The action would prevent excuses from being used in violation of the order.

“This just makes sure that there is a clear understanding that there is to be no communication when an order of protection is issued,” said Senator Crowe. 

The second domestic violence proposal, Senate Bill 2709, allows the court to order domestic abuse perpetrators to attend counseling programs.  The bill prescribes a list of counseling programs the judges can order from if they choose, including, intervention programs that are certified by Domestic Violence State Coordinating Council.  The bill increases the maximum penalty for those convicted of the crime from $200 to $225, with the proceeds going to grants for domestic violence shelter programs. 
Senator Crowe also guided to passage Senate Bill 2882 which aims to curb the number of deaths in work and school zones due to reckless driving.  The bill adds to the list of charges that can be considered under the state’s vehicular homicide law, cases where the cause was the driver’s knowing failure to exercise due care in a construction zone or a school safety zone. 
There were 12 fatal crashes in construction zones and three deaths in school safety zones last year.  The crime would be punishable as a Class D felony.
“We have had several tragic deaths recently in these zones where drivers know they are supposed to be taking extraordinary care,” said Senator Crowe.  “This bill allows district attorneys to look at these crimes and bring charges under Tennessee’s vehicular homicide law when the inattention is so reckless that it results in a death in one of these two safety zones.” 
In other Senate Judiciary Committee action, State Senator Tim Burchett (R-Knoxville) won passage of Senate Bill 3169 to add juvenile sex offenders to Tennessee’s DNA database after they are adjudicated.  The DNA database is the 21st century’s answer to the old fingerprinting method.  In 2007, the General Assembly passed the Johnia Berry law, sponsored by Lt. Governor Ron Ramsey (R-Blountville) to widen Tennessee’s DNA database to solve crimes.  This bill adds adjudicated juvenile sex offenders to the list of those who must submit DNA samples under that law.

State Senators approve Uniform Interstate Family Support Act

The State Senate voted and sent to the governor legislation that will allow Tennessee to participate in the International Recovery of Child Support and Other Forms of Family Maintenance.

With increasing frequency, U. S. and Tennessee citizens who live, work or are deployed in foreign countries begin families while they are in other countries and become subject to foreign country support orders. When either parent or the children come to Tennessee or the U. S. and need support or need to establish paternity, current law is limited.

“As more parents cross state borders it is difficult to enforce child support orders,” said Senator Mike Faulk (R-Church Hill) sponsor of the bill.  As they cross international borders it is almost impossible to enforce these orders.  This legislation contains procedures for processing child support orders across both state and international borders that are uniform, simple, efficient, and accessible.  Many of these provisions were taken from the experience within the U. S. from enforcing child support orders across state lines.” 

The Uniform Interstate Family Support Act (“UIFSA”) was drafted in 1992. Over the years, while the United States was developing its own method of uniform enforcement of child support, the rest of the world was participating in various forums, including the Hague Convention, an international event, to reach a similar end. In 2003, the United States joined the Hague Convention to engage in discussions of worldwide child support uniformity.

UIFSA was most recently modified in 2008 during the Hague Convention; however, these amendments have not yet been implemented. They are expected to become law in the near future after it is approved by the Senate and signed by the President. When implemented, Tennessee will be ready to participate under the legislation approved.

In Brief….

DUI / Interlock devices – The full Senate has approved legislation that would increase the use of ignition interlock devices to curb the number of alcohol-related car crashes in Tennessee.  Senate Bill 2965, sponsored by Senator Mae Beavers (R-Mt. Juliet), requires the use of the devices if the offender has a blood or breath alcohol concentration of .15 percent or higher; is accompanied by a person under 18 years of age; or, violates the present implied consent laws.  It also provides that those convicted of drunk driving under .15 with the option to install an interlock device instead of being geographically restricted by the court.  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 the ignition to start.  Studies show the devices have been very successful in curbing drunk driving. 

Abortion / federal healthcare law -- The State Senate has passed and sent to the governor legislation sponsored by Senator Diane Black (R-Gallatin) to prohibit taxpayer-funded coverage for abortion services in Tennessee associated with the federal healthcare law passed by Congress.  The bill, Senate Bill 2686, prohibits any health care plan established pursuant to federal health care reform legislation enacted by the 111th United States Congress from offering coverage for abortion services. 

Elected Attorney General -- The Senate voted 19 to 14 this week in favor of a resolution sponsored by Senator Mae Beavers (R-Mt. Juliet), calling for an elected State Attorney General (AG).  The resolution, Senate Joint Resolution 698, seeks to amend the state’s Constitution to allow a popular election every four years.  Tennessee is the only state in the nation that allows the State Supreme Court to select the attorney general.  The amendment resolution must be approved by both the 106th General Assembly, currently in session, and the 107th, which will take office in 2011, before going to voters in a statewide referendum in November 2014.

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 State Senate on Monday.  The bill, Senate Bill 2633, sponsored by Senator Jack Johnson (R-Franklin), gives employers the right to choose 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.  Under the bill, employees would not be charged for the debit card withdrawal if they choose to access an in-network ATM machine to receive the payment.

Veterans / fundraising -- A resolution seeking to amend Tennessee’s Constitution to allow tax exempt veterans groups to raise funds in the same manner as 501 (c)(3) charitable organizations was sent to a Summer Study Committee for further review and to refine the language of the proposal.  Veterans groups were left out of the Constitutional Amendment approved by voters in 2002, due to the way their organizations are generally structured as 501 (c) (19) or 501 (c) (4) organizations under the Internal Revenue Code.  The Committee will look at making the language as precise as possible to allow charitable fundraisers by veterans, without unintentionally opening a door to any unscrupulous gaming activities.  The resolution, SJR 982 is sponsored by  Lt. Governor Ron Ramsey (R-Blountville), and Senators Rusty Crowe (R-Johnson City), Bill Ketron (R-Murfreesboro) and Jim Tracy (R-Shelbyville).  

Highways / federal funds -- Legislation that calls for Tennessee to keep its own road money rather than participate in the Federal-Aid Highway Program was approved by the Senate Finance Committee.  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.  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 proposal, taxes retained by the state would be directed to the State Highway Fund instead.

Civics in High Schools -- State Senators voted this week to urge the teaching of civics classes in high schools in Tennessee.  The measure, Senate Bill 3432, sponsored by Senator Jim Tracy (R-Shelbyville), prescribes the goals of the class to include information regarding the three branches of government, the fundamental documents, an understanding of how laws are enacted, and ways that citizens can shape and influence their government.

False Allegations / Sexual Abuse -- The full Senate has approved a bill that allows the court to hold in contempt any person who makes false allegations of sexual abuse in furtherance of litigation.  The bill specifies that the court may hold the violator in "contempt" and could order them to pay all litigation expenses and court costs.  The measure, Senate Bill 1264, is sponsored by Senator Dewayne Bunch (R-Cleveland).

Meth labs – The State Senate voted this week to approve legislation designed to protect the public from being harmed by the ill effects of entering a house or building that has been used as a meth lab.  The bill makes it a Class B misdemeanor offense to knowingly inhabit a property quarantined by law enforcement due to the manufacture of methamphetamine within the structure, unless that person is part of the official police investigation.  The bill, Senate Bill 2969, is sponsored by Senator Diane Black (R-Gallatin).

Foreign defamation / Libel Tourism -- State Senator Bill Ketron (R-Murfreesboro) guided passage of Senate Bill 3589 through the State Senate this week.  The bill would help in the fight against a tactic known as “Libel Tourism” which results from defamation lawsuits filed against authors critical of individuals with known ties to terrorist organizations like al Qaeda and Hamas. The legislation ensures that Tennessee Courts have the ability not to recognize a foreign judgment, if that country’s laws protecting free speech and the free press are not as protective as freedoms provided in the constitutions of Tennessee and United States.  The measure relates to grounds for non-recognition of foreign defamation judgments, closely resembling similar laws passed by the New York, New Jersey, Illinois, California, Utah and Florida Legislatures on the matter.

###

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

 (NASHVILLE, TN), April 15, 2010  -- A flurry of bills began to move through the State Senate committee process this week, including legislation getting tough on crime.  Meanwhile, the Senate Finance Committee received an update on the state’s revenue collections and growth estimates in preparation for its work on the budget. 

For the 22nd consecutive month, Tennessee’s revenue collections continued to fall short of budgeted estimates in March, according to Finance Commissioner Dave Goetz who appeared before the Senate Finance Committee this week.  The overall March revenues were $776.5 million, which is $11.7 million less than the state budgeted.  Goetz told committee members that they see some improvement in major items, like automobile sales, but until they see clear signs that the economy is recovering, they will continue to make budget decisions based on what “we’re experiencing in Tennessee.”

Year-to-date collections for eight months were $244.1 million less than the budgeted estimate. The general fund was under collected by $205.0 million and the four other funds were under-collected by $39.1 million.  Goetz told the committee that Governor Bredesen will present a budget amendment to lawmakers within a week.

“I am very concerned about our state revenue collections,” said Finance Chairman Randy McNally.  “The best course of action would be to choose a conservative course.”

State Comptroller Justin Wilson also presented the state’s Funding Board estimates for the current and upcoming fiscal year to the Finance Committee.  For the fiscal year ending June 30, 2010, the Funding Board expects the revenue growth rates to be negative, ranging between -1.77 percent and -1.29 percent for total tax revenues and between -2.31 percent to -1.78 percent for the state’s general fund, the primary funding source for state government’s general operations.  However, the Board projects some improvement for the 2010-2011 fiscal year that will begin July 1 with projections for a positive growth rate ranging between 1.73 percent and 1.98 percent. The Funding Board also anticipates a positive growth rate for the general fund between 2.05 percent and 2.30 percent.
Lawmakers act on several anti-crime bills

DUI / Interlock devices – State Senators acted on several bills this week to get tougher on crime, including approval in the Finance Committee of legislation that would increase the use of ignition interlock devices to curb the number of alcohol-related car crashes in Tennessee.  Senate Bill 2965, sponsored by Senator Mae Beavers (R-Mt. Juliet), requires the use of the devices if the offender has a blood or breath alcohol concentration of .15 percent or higher; is accompanied by a person under 18 years of age; or, violates the present implied consent laws.  It also provides that those convicted of drunk driving from under .15 with the option to install an interlock device instead of being geographically restricted by the court. 

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 the ignition to start.  The current alcohol ignition interlock technology makes it easier for courts to require drunk drivers to utilize the device.  Studies show the devices have been very successful in curbing drunk driving. 

Courts often restrict those convicted of drunk driving to traveling only to work and home.  The restriction routes can be difficult for law enforcement officers to monitor.  Officers would easily be able to see if a convicted offender has a court-ordered interlock device, which would be installed at the offender’s 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.

Dogs used as weapons -- The Senate Judiciary Committee approved legislation to prohibit those convicted of a violent felony, a felony drug offense, or an animal cruelty offense from owning or being in control of a vicious or potentially vicious dog for ten years after completion of their sentence or parole supervision.  The bill, Senate Bill 555 sponsored by Senate Majority Leader Mark Norris (R-Collierville), also requires that any dog in their possession be spayed or neutered to reduce the use of the animal as a violent weapon. 

The bill is one of several measures proposed to attack gang and drug violence by providing law enforcement with another tool to combat crime.  Expert testimony confirmed that a majority of criminals involved with drugs and meth labs use vicious dogs to protect them from law enforcement.  About 80 percent of the dogs used by criminals are males that have not been neutered which makes them more aggressive.  The dogs often roam freely, posing a particular danger to children and the elderly.  

“We have made progress in addressing about 60 percent of these kinds of crimes,” said Norris, who sponsored two major ‘Crooks with Guns’ laws approved by the General Assembly over the past several years to get tough on crimes involving weapons.  “These dogs are trained to be weapons against law enforcement.  They can also come in contact with children and the elderly, who are particularly vulnerable to attack.  This legislation gives law enforcement another tool to combat violent crime.”

Armed Robbers -- Similarly, a bill to strengthen penalties against armed robbers was debated in the Senate Finance Committee this week.  The legislation, Senate Bill 3431,  would more than double the minimum amount of time served for aggravated robbery. 

Presently, armed robbers convicted on a first offense can receive up to eight years in jail, but the 30 percent requirement places the actual sentence at less than three years.  This legislation would increase the percentage of jail time for these armed offenders from 30 percent to 74 percent. 

To ensure there is prison space, the bill would sentence those convicted of non-violent property crimes under $1,000 to community corrections, with more intensive supervision instead of jail time.

“This allows us to that we use our limited jail space wisely to house the worst offenders who are a danger to the public,” added Norris.  “The non-violent offenders will still pay for their crime through intense supervision in community corrections.”

Debate on the bill will continue in the Finance Committee next week.

Bail / Mental Health Crisis  -- The Senate Judiciary Committee approved legislation requiring law enforcement officers who believe a defendant arrested for an offense against a person poses a substantial likelihood of serious harm to request an examination of the defendant by a member of the Community Mental Health Crisis Response Service within 12 hours.  The bill, Senate Bill 3439, is sponsored by Senator Jim Tracy (R-Murfreesboro). 

“The bill arises from a Rutherford County tragedy last November, when a woman was beaten by her son after he had been arrested for assault,” said Senator Tracy.  “The son had a long history of mental illness.  This bill works to avert such tragedies from occurring again.”  

Meth labs -- In other Judiciary Committee action, members approved legislation designed to protect the public from being harmed by the ill effects of entering a house or building that has been used as a meth lab.  The bill makes it a Class B misdemeanor offense to knowingly inhabit a property quarantined by law enforcement due to the manufacture of methamphetamine within the structure, unless that person is part of the official police investigation.  The bill, Senate Bill 2969, is sponsored by Senator Diane Black (R-Gallatin).

Cruelty to Animals -- Legislation that would strengthen penalties against those who are convicted of animal cruelty was approved by the full Senate on final consideration this week.  The bill makes violation of a judge’s order connected with animal cruelty conviction a Class A misdemeanor, which carries up to a one-year jail sentence and a $2,500 fine.  It also provides that second and subsequent cruelty to animal convictions would be considered a Class E felony with a one- to six-year prison sentence and up to $3,000 in fines.

Currently, a judge in Tennessee can issue a special order that bans persons convicted of animal cruelty from owning an animal again.  However, the law does not prescribe penalties to allow prosecutors or judges to punish offenders.

“The current law does not have any teeth,” said Senator Bill Ketron (R-Murfreesboro), sponsor of the bill.  “There is nothing to punish those who commit this crime from abusing again.”

The link between animal cruelty and other forms of violence is a national concern. For example, the practice of dog fighting is commonly linked to illegal drug and weapons violations, gambling, aggravated assault and gang violence.

The bill, Senate Bill 3540, now goes to the governor for his signature before becoming law.

Sentencing / Juvenile offenders – Judges could consider serious felonies committed by a repeat offender as a juvenile upon sentencing under legislation passed by the full Senate this week.  The legislation, Senate Bill 3314 sponsored by Senator Brian Kelsey (R-Germantown) allows a judge to consider Class A and Class B felony convictions that the repeat offender committed as a juvenile which would be added to the presentencing report for consideration along with any other adult convictions.

“It's time to start locking up criminals who continue to commit serious crimes,” said Kelsey.  “That's the only way we can make our communities safer places to live.”

Sex Offenders / Physicians -- The full Senate approved a House Amendment and sent to the governor legislation to require the Board of Medical Examiners to deny the application for licensure or revoke the license of a physician convicted of an offense which requires registration as a violent sexual offender.  The bill, Senate Bill 3362 sponsored by Senator Diane Black (R-Gallatin), provides for communications between the Tennessee Bureau of Investigation’s (TBI) Sex Offender Registry and the Board of Medical Examiners within 30 days to assure notification is given.  It also requires the Medical Examiners make sure that no existing physician is currently listed on the Registry.  If a physician is on the Sex Offender Registry, but is not listed as a violent offender, they can still practice as long as there is no patient contact, under the amended bill.  The bill also gives due process to allow physicians the opportunity to contest a finding by giving evidence to the Board that they were not the person convicted.

Bill would protect Tennesseans from foreign defamation judgments by terrorists 

State Senator Bill Ketron (R-Murfreesboro) guided passage of Senate Bill 3589 through the Judiciary Committee this week.  The measure relates to grounds for non-recognition of foreign defamation judgments, closely resembling a similar law that was passed by the New York Legislature on the matter.

The bill would help in the fight against a tactic known as “Libel Tourism” which results from defamation lawsuits filed against authors critical of individuals with known ties to terrorist organizations like al Qaeda and Hamas. The lawsuits have been finding their way into foreign courts. Ketron’s legislation ensures that Tennessee Courts have the ability not to recognize a foreign judgment, if that country’s laws protecting free speech and the free press are not at least as protective as freedoms provided in the constitutions of Tennessee and United States.

“This bill protects all Tennesseans’ fundamental right to the freedom of speech and the press without fear of reprisal from foreign courts,” said Senator Ketron.

Senate passes legislation to help homeowners avoid foreclosure

The Senate has approved legislation sponsored by Senator Doug Overbey (R-Maryville) that would provide assistance to homeowners who are about to lose their home due to non-payment and gives them the opportunity to contact their lender in an effort to avoid foreclosure.  The bill, Senate Bill 3519, requires that a new simple and easy to understand notice be sent to homeowners when they fall behind or become delinquent in their mortgage payments to help them find a resolution or to see if there are any governmental programs available to avoid a foreclosure sale.

“The notice gives them the best advice anyone can get in this situation,” said Senator Overbey.  “This is to contact the lender who may have ways to mitigate the situation if they know the homeowner's situation.   The notice also points the borrower to the various federal loan modification programs which might be available to them.  It is a timely bill given where we are in the current state of the economy and the high number of foreclosures.”

Tennessee ranked 26th in the nation in February according to Realty Trac Inc.’s U.S. Foreclosure Market Report.  The state has consistently ranked among states with the highest number of foreclosures for the past decade.  

The legislation requires that a lender, trustee, or other creditor send the debtor a notice of the right to foreclose no less than 60 days prior to the first publication of a notice of a foreclosure sale of a deed of trust, mortgage, or other lien securing the payment on an owner-occupied residence. The notice must contain sufficient information to allow the debtor to contact the lender to discuss options available to the debtor. If the trustee determines at the time of the sale that notice of the right to foreclose was not sent to the debtor as required, the debtor may request postponement of the sale for 30 to 60 additional days to allow time needed to examine other possible resolutions. 

The bill now goes to Governor Phil Bredesen for his signature.

Legislation prohibiting taxpayer-funded coverage for abortion arising from federal healthcare bill wins unanimous approval in Senate Commerce Committee

The Senate Commerce Committee approved legislation sponsored by Senate Republican Caucus Chairman Diane Black (R-Gallatin) that would prohibit taxpayer-funded coverage for abortion services in Tennessee associated with the federal healthcare bill passed by Congress last month.  The bill, Senate Bill 2686, prohibits any health care plan established pursuant to federal health care reform legislation enacted by the 111th United States Congress from offering coverage for abortion services. 

 “I am very pleased that we received unanimous support for this bill in the Commerce Committee today,” said Senator Black.  “We have worked for years to ensure that taxpayer money is not used for abortion services in Tennessee.  We must fight back against this overreach of federal power.”

Black maintains an Executive Order signed by President Obama as part of an agreement to gain the votes of a key block of anti-abortion Democrats as the price for the massive federal health care law, will not stop federal funding of the procedure.
 
“We are not comfortable that the Executive Order will stand up to protect the life of the unborn,” added Black.  “It does not fix the fact that this federal health care law clearly allows for the funding of elective abortions. Therefore, we must take every action possible to protect Tennessee from being a part of a plan that allows for funding abortions.”

The bill was approved in the House of Representatives on final consideration on Monday by a vote of 70 to 23.  It now goes to the Senate floor for final consideration before going to the governor for his signature. 

In Brief…..

TNInvestco – Legislation sponsored by Senator Doug Overbey (R-Maryville) was approved by the Senate Commerce Committee to expand the TNInvestco tax credit program by $80 million to include four additional participants already selected as alternates in the new program.  The Committee also added further improvements to the bill, Senate Bill 3049, to increase transparency and accountability in the program.  Small businesses provide 67 percent of first jobs and produce 55 percent of innovations.  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.  Individual businesses interested in applying for the program may go to www.tninvestco.gov and complete an application form which will be submitted to each of the TNInvestco funds. 

English in the workplace – The Senate Commerce Committee has approved a bill to clarify that Tennessee employers have a right to institute an English-in-the-workplace policy.  The bill, SB 2753 sponsored by Senator Jack Johnson (R-Franklin), clarifies that employers can require that English be spoken on the job as long as it is posted.  The Republican sponsor said requiring English is often a safety precaution. Businesses where employees are continuously handling toxic products or food containers have a need to require English.

Holocaust Remembrance – The State Senate on Monday remembered those who died in the Holocaust as part of the International Holocaust Remembrance Day each spring, which is observed near the Days of Yom Hashoah. The event was organized by Senator Andy Berke (D-Chattanooga) and Senator Tim Burchett (R-Knoxville).  Each year the General Assembly invites the Holocaust Survivors and US Army Camp Liberators to join in a Commemoration hosted by the Tennessee Holocaust Commission.

Overreaching by Congress -- The State Senate gave final approval to Senate Joint Resolution 897 sponsored by Lt. Governor Ron Ramsey (R-Blountville) which urges Tennessee’s Attorney General to join 19 other states in challenging the unconstitutional provisions in the federal government takeover of the nation’s health care system.  The resolution states the General Assembly shares the concern of other states that mandated insurance coverage for citizens within their boundaries violates the Commerce Clause and the Tenth Amendment of the U.S. Constitution.

Elected Attorney General -- The Senate heard two readings this week of a resolution sponsored by Senator Mae Beavers (R-Mt. Juliet), calling for an elected State Attorney General (AG).  The resolution, Senate Joint Resolution 698, seeks to amend the state’s Constitution to allow a popular election every four years.  Tennessee is the only state in the nation that allows the State Supreme Court to select the attorney general.  The amendment process requires three readings before a vote is taken on the resolution.  It must be approved by both the 106th General Assembly, currently in session, and the 107th, which will take office in 2011, before going to voters in a statewide referendum in November 2014.

College Savings -- The Senate Finance Committee has approved legislation to increase the number of college graduates by providing essential education to parents and students about how to save for college.  The proposal, Senate Bill 3234 sponsored by Senate Education Committee Chairman Dolores Gresham (R-Somerville), would create an 11-member Tennessee Financial Literacy Commission to establish a state clearinghouse of information, resources, and assistance for improving financial literacy in the area of college savings.

Similarly, a separate measure was approved by the full Senate that authorizes the Board of Trustees of the Tennessee Baccalaureate Education System Trust (BEST) to establish an incentive plan to encourage citizens to participate in any 529 college savings program that the Board has contracted with to assist in these efforts.  The proposal, Senate Bill 1142, also sponsored by Gresham, helps citizens take advantage of the incentive plans, grants and scholarships that could be available to them through individual savings accounts established by or on behalf of residents through BEST.

Hospitals -- Members of the Senate Finance Committee voted this week to approve a plan 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 sponsored by Senator Doug Overbey (R-Maryville), 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 the fee on to patients.   

Report / Coal ash storage -- A resolution calling for the Tennessee Department of Environment and Conservation to file an annual report regarding TVA’s progress in transition to dry coal ash storage at coal plants in Tennessee has received approval on final consideration in the State Senate.  The measure, Senate Joint Resolution 784 sponsored by Senator Tim Burchett (R-Knoxville), specifies that the report should also contain information known to the department arising from the continued environmental restoration activities at the Kingston power plant and the affected lands and rivers, and the department's records arising from solid waste, air quality, and water pollution control or other permitting of TVA facilities and facilities which are used for the disposition or storage of coal ash produced from TVA power plants.  The Roane County coal ash spill released more than 5.4 million cubic yards of ash into the 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.

Child Abductions -- Lawmakers gave final approval to legislation sponsored by Speaker Pro Tempore Jamie Woodson (R-Knoxville) that aims to reduce the risk of child abduction in Tennessee.  The bill, Senate Bill 3065, would provide courts with guidelines to follow regarding potential child abductions and to provide courts with appropriate measures to prevent these crimes. 

Education / MRSA – The General Assembly has approved Senate Bill 3828 sponsored by Senator Diane Black (R-Gallatin) to provide more information to schools regarding MRSA, a potentially deadly staff infection.  The bill requires the Department of Health to issue an advisory to K-12 schools and early education centers to explain the medical condition and give them guidance on steps they can take to protect their students.  The legislation comes from a case in Sumner County where an 11-year old girl died from the condition, pointing to the need for additional information on MRSA in schools.

Medal Program – The full Senate approved Senate Bill 2488 sponsored by Lt. Governor Ron Ramsey (R-Blountville) that would create the Veterans' Honor Medal program to recognize and honor distinguished service by Tennessee veterans.  The Department of Veterans’ Affairs, under the bill, would commission the design of a medal for the program.

Teacher appreciation -- State Senators gave final approval to a resolution expressing support for Tennessee teachers and acknowledging the role they play in the future of the state.  Senate Joint Resolution 798, sponsored by Senator Dolores Gresham (R-Somerville), also recognizes the challenges before teachers as a result of the Race to the Top Act, as well as the commitment it will take on the part of parents and students to make strides in improving education attainment in Tennessee.

Mammograms -- Senator Mae Beavers (R-Mt. Juliet) pushed passage of Senate Joint Resolution 890 through the full Senate this week encouraging women to consult with their doctors and organizations such as the American Cancer Society when choosing to have annual mammograms.  Beavers, a breast cancer survivor, credits screening and early intervention as a reason for her success in defeating the disease.  The resolution takes issue with the U.S. Department of Health and Human Services’ new guidelines increasing the age for baseline mammograms to age 50, and changing the recommendation for annual screenings to having the exams every other year.  The resolution instead urges Tennessee women to use the American Cancer Society’s recommended standard for annual screenings beginning at age 40.

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

 (NASHVILLE, TN), April 8, 2010  -- Senate Committees approved several important bills this week as they prepare to close for the 2010 legislative session.  The focus will shift next week to the state budget as the State Legislature plans to conclude the 106th General Assembly within three to four weeks.

Among legislation approved this week were two resolutions designed to fight back against the overreach of power from Congress, which includes the passage of the massive federal healthcare bill last month.  Senate Joint Resolution 897, sponsored by Lt. Governor Ron Ramsey (R-Blountville) and approved by the Senate Judiciary Committee, urges Tennessee’s Attorney General to join a growing number of other states in challenging the unconstitutional provisions in the federal government takeover of the nation’s health care system.  The resolution states the General Assembly shares the concern with these other states that mandated insurance coverage for citizens within their boundaries violates the Commerce Clause and the Tenth Amendment of the U.S. Constitution.

Lt. Governor Ron Ramsey asked Tennessee Attorney General Robert Cooper to make preparations for protective legal action last December after the federal bill was approved by the U.S. Senate.   He has continued to call upon the Attorney General to join other states in their efforts to oppose the unconstitutional provisions of the measure since the final passage by the U.S. House of Representatives on March 21.

“Eighteen states – over one-third of the United States - are pushing back on this unconstitutional federal healthcare mandate,” said Lt. Governor Ramsey.  “Not only is it unconstitutional, it will destroy state budgets across the nation.  It is time for Tennessee to join other states in saying ‘no’ to this budget-busting disaster.  We can’t print money like they do in Washington, D.C.  We have to live within our means.”

“Congress has attempted to justify its power to adopt the national healthcare law through the Commerce Clause of the U. S. Constitution,” said Senator Mike Faulk (R- Church Hill).  “As I understand our national healthcare regulations, today, we can’t buy healthcare insurance from outside Tennessee.  There is nothing sold across state lines now.  What Congress seems to be saying is the power to regulate commerce across state lines includes the power to regulate commerce within a state.  I don't think that's what the Commerce Clause of the Constitution says and I'm convinced it's not what the founding fathers meant.”

Similarly, the Senate State and Local Government Committee and the full Senate approved Senate Joint Resolution 715, which asks Congress to submit to the states for ratification an amendment to stop the practice of passing unfunded mandates and programs to the states, except in a situation of financial emergency as declared by a two-thirds vote of their membership. 

“The most recent act by Congress on healthcare could cost the state as much as $200 million annually,” said Senator McNally, who is Chairman of the Senate Finance Committee.  “This is at a time when we are already struggling.  Also, one other part of that bill, which the state’s insurance plan is reviewing, is how much it would cost in additional insurance premiums, so we expect that the cost will increase.”
 
The proposed amendment would prohibit the federal government from authorizing state participation in federal programs or services unless funding is guaranteed by the federal government for the full duration of the programs or services. If federal funds are not appropriated for the program or service, the law enacted or regulation promulgated would become null and void. 

Senate Judiciary Committee approves Resolution to let citizens decide whether the state’s Attorney General should be elected

The Senate Judiciary Committee has approved a resolution sponsored by Senator Mae Beavers (R-Mt. Juliet), calling for an elected State Attorney General (AG).  The resolution, Senate Joint Resolution 698, would amend the state’s Constitution to allow a popular election every four years. 

“Tennessee is the only state in the nation that allows the State Supreme Court to select the attorney general,” said Senator Beavers, who is Chairman of the Judiciary Committee.  “Forty-three states already select their attorney generals through popular election and it is time for this General Assembly to also show their confidence in the collective wisdom of the people of Tennessee.”

In six other states, the Attorney General is selected by either the popularly elected Governor or the popularly elected state legislature.  Beavers said that when Tennessee’s Constitution was written calling for nomination by the Supreme Court Justices, the court was popularly elected. 

 “Tennessee is the only state in the nation in which the people have neither a direct nor indirect voice in the selection of their Attorney General,” Beavers added.  “Someone has to be accountable to the people, and yesterday’s AG opinion on the Health Freedom Act shows once again, the importance of having an Attorney General who represents the will of the people of this state.”

The amendment process would require approval by both the 106th General Assembly currently in session and the 107th, which will take office in 2011.  If approved, the question would then go to voters in a statewide referendum in the year 2014.

 “Along with the overwhelming majority of Tennesseans and 96% of the rest of this nation, I feel that the citizens of this state ought to have a ‘say so’ in the highest legal office in Tennessee,” she concluded.

Legislation aims to reduce risk of child abduction

The Senate Judiciary Committee has approved legislation, sponsored by Speaker Pro Tempore Jamie Woodson (R-Knoxville), that aims to reduce the risk of child abduction in Tennessee.  The bill, Senate Bill 3065, would provide courts with guidelines to follow regarding potential child abductions and to provide courts with appropriate measures to prevent these crimes. 
“Child abduction is a serious problem,” said Speaker Woodson.  “In 2002, over 260,000 children were abducted.  Certainly, having open communications between courts and a clear set of guidelines will be very helpful to our Tennessee courts in reducing these terrible crimes." 
According to the National Center for Missing and Exploited Children, 78% of these children were abducted by a family member.  The Center claims families going through custody disputes and divorce proceedings are the highest risk group for potential abduction.
The legislation would provide judges with information about abduction risk factors so that they can place appropriate restrictions to prevent abductions.  Among factors included are whether the respondent has previously abducted or attempted to abduct the child; has threatened to abduct the child; has engaged in domestic violence; has refused to follow a child-custody determination; has strong family or cultural ties to another state or country; or other related factors.  Using these guidelines the court must determine that there is a credible risk of child abduction, and then the court may consider preventative measures.
“There are a wide variety of factors that will be considered by the court,” added Woodson.  “ While courts currently have discretion to take many of these steps, some courts are not particularly familiar with the wide variety of both domestic and international abduction signs.  This bill lays out a list of factors that should be considered to determine whether there is a credible risk that a child will be abducted in order to reduce this crime on the front end before great emotional or physical harm occurs to the child.”
In Brief…

Unemployment -- Tennessee's seasonally adjusted unemployment rate for February 2010 was 10.7 percent, unchanged from the January rate of 10.7 percent according to newly released statistics. The United States unemployment rate for the month of February was 9.7 percent.  County non-seasonally adjusted unemployment rates for February 2010 show that the rate decreased in 78 counties, increased in 10 counties and remained the same in seven counties.

Voter Registration --  The Senate State and Local Government Committee has approved Senate Bill 194, which would require voter registration forms to carry a disclaimer that clarifies giving false information to register to vote carries a criminal penalty.  The legislation, sponsored by Senator Dewayne Bunch (R-Cleveland), also requires that the applicant affirm that they are lawfully in the United States.

Veterans / State Parks – The full Senate has passed legislation to instruct the Division of Parks and Recreation to designate one day per year during which access to and use of all state parks would be free of charge for all veterans.  The bill, Senate Bill 3212, includes use of campgrounds, and golf courses, as long as the veteran shows proof of their status.

Manhattan Project  Historical Site / Oak Ridge -- The full Senate voted this week to urge Congress to include Oak Ridge in any new national park unit being considered in conjunction with the Manhattan Project Sites. The proposal, Senate Joint Resolution 761, is sponsored by Senator Randy McNally.  The National Park Service recently proposed a Manhattan Project National Historical Park at Los Alamos, New Mexico, even though more than 60% of the Manhattan Project budget was spent at Oak Ridge. Currently, there are no national parks that preserve Manhattan Project resources or tell the story of the top-secret World War II project that created the world’s first atomic bombs.  

Finance Group upgrades state’s credit rating -- Tennessee’s credit rating has been upgraded by Fitch Ratings from a AA to a AAA rating, according to Senate Finance Committee Chairman Randy McNally (R-Oak Ridge).  Fitch is a leading global rating agency which provides the world's credit markets with independent credit opinions.  Fitch, together with Moody’s and Standard and Poor’s, are the three nationally recognized statistical rating organizations designated by the U.S. Securities and Exchange Commission. 

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

 (NASHVILLE, TN), April 1, 2010 – Education headlined action on Capitol Hill this week with the announcement that Tennessee was the big winner in the federal “Race to the Top” competition.  Tennessee will receive approximately $500 million and Delaware $100 million over the next four years to implement a bold plan that will improve public education.  The two states beat out 14 other finalists who qualified to win the first round in the competition, after applications were initially received from 40 states and the District of Columbia.

"We received many strong proposals from states all across America, but two applications stood out above all others: Delaware and Tennessee," said U.S. Secretary of Education Anne Duncan in announcing the winners. "Both states have statewide buy-in for comprehensive plans to reform their schools. They have written new laws to support their policies. And they have demonstrated the courage, capacity, and commitment to turn their ideas into practices that can improve outcomes for students."

 “I am very grateful for the collaborative and cooperative efforts of legislators, Governor Phil Bredesen and other education stakeholders to help us win this competition for Race to the Top Funds,” said Chairman Gresham.  “I especially appreciate the efforts of our Senate Education Committee and the support of Lt. Governor Ramsey for giving us the latitude to work on this legislation.  The funds will help us implement bold new action that will improve education for all Tennessee students.”

“This is great news for Tennessee," said Senate Speaker Pro Tempore Jamie Woodson (R-Knoxville) who was part of the state’s five-member presentation team.  The team travelled to Washington to make the case that Tennessee had adopted significant education reforms and deserved to be one of the winning states.  “It recognizes the bold steps that we have taken over the past several years and during our Special Session on Education to improve student achievement in Tennessee.  These reforms will ensure Tennessee students are prepared for success in an increasingly global marketplace.”

Woodson and Gresham are members of the State Collaborative on Reforming Education (SCORE), an education reform panel headed by former U.S. Senator Bill Frist, whose work served as a compass to initiate many of the reform measures approved during the Special Session on Education held this year in January.

The premise of the Race to the Top Competition 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.  Tennessee met all of the criteria, especially in the area of data collection as the state has the oldest and most robust student achievement data system in the nation.

Tennessee submitted an application with bi-partisan and statewide political support, including pledges by all candidates for governor to implement the plan.  It was also supported by 100 percent of the school districts and 93 percent of unions.  In addition, the plan has received strong multi-sector leadership from other key stakeholders, such as business and philanthropies.

Some of the factors important to winning the competition included Tennessee’s annual full funding of the Basic Education Program, the state’s longstanding investment in data collection, passage of public charter school reform legislation, implementation of the Tennessee Diploma Project and approval of the “First to the Top Act” passed during the Special Session.

The First to the Top law enacted a comprehensive roadmap for transformation reform in Tennessee for educators, schools, and postsecondary education.  This includes setting up a framework for teacher and principal evaluation with 50 percent being based upon student achievement data and creating an Achievement School District to clarify and provide authority for state takeover of the lowest-performing schools.  It also set in place a college completion agenda that includes performance-based funding, among other key initiatives.

According to Assistant Commissioner of Education Bruce Opie, who appeared before the Senate Education Committee, Race to the Top money could be available to schools as soon as July.  Opie said the state Department of Education will soon be providing school systems with guidance and samples of the “scope of work” that can be performed under the guidelines of the program.  He said that school systems will also benefit from professional development programs being put into place on a statewide basis.

The U.S. Department of Education will have about $3.4 billion available for the second phase of the Race to the Top competition.

 Bill helps students and parents save for college

In other action this week, the Senate State and Local Government Committee approved legislation to increase the number of college graduates by providing essential education to parents and students about how to save for college.  The bill, Senate Bill 3234 sponsored by Senate Education Committee Chairman Dolores Gresham (R-Somerville), would create an 11-member Tennessee Financial Literacy Commission to establish a state clearinghouse of information, resources, and assistance for improving financial literacy in the area of college savings.

“This legislation follows on the heels of the “Complete College Act” passed during the Special Session on Education in January,” said Chairman Gresham.  “If we are going to increase the number of college graduates in Tennessee, we must also concentrate on helping prepare parents and students for the financial challenges they will face upon entering post-secondary education.  This bill would work to accomplish that purpose.”

The "Complete College Tennessee Act of 2010" revised the Tennessee Higher Education Commission’s master planning responsibility to increase college completion, address economic development needs and differentiate institutional missions to increase collaboration and efficiency between Tennessee’s post-secondary schools.  Lawmakers believe the new law and other reform measures for K-12 education passed during the Special Session will boost the number of college-bound students. 

Provisions in the financial literacy bill include:
• Creating and implementing education programs to improve financial literacy with a focus on elementary school parents and students
• Establishing a website for financial literacy and college-saving resources
• Making grants and award to programs for financial literacy education
• Initiating education programs and campaigns to promote financial literacy education.

“I am very pleased this bill is progressing through our committee system,” added Gresham.  “This will help students and their families make a huge investment in their future by helping them find the best resources available to save for college.”

Worker’s Comp bill aims to address gaps in coverage without harming small business owners

The Senate Commerce Committee approved legislation to create a procedure for sole proprietors, partners, officers of corporations, and members of limited liability companies engaged in the construction industry to file for an exemption from obtaining workers’ compensation insurance to cover themselves.  The bill comes after the General Assembly voted earlier this year to approve legislation sponsored by Senator Bill Ketron (R-Murfreesboro) to suspend a new law to require sole proprietors and partners engaged in the construction industry carry workers’ compensation coverage on themselves.  The new law was suspended due to unintended effects of the measure. 

The proposal, Senate Bill 3591, also sponsored by Senator Ketron, aims to address gaps in coverage for workers in the various construction fields, without harming small business owners.  The bill reinstates the requirement that sole proprietors and partners engaged in the construction industry carry workers’ compensation insurance on themselves, but provides a mechanism for exemption. 

Those eligible for the exemption, include:
• Up to five officers of a corporation
• Certain members of a  limited liability company, if they own at least 30 percent of the company
• Partners in a limited partnership if they own at least 30 percent
• Sole proprietors
• Up to five members of a family-owned business

The bill requires any construction services provider requesting exemption to first obtain from the board for licensing contractors either a valid license or a construction services provider registration.  The construction services provider must then request an exemption from the Secretary of State’s in person, by mail, or online.  The cost, under the bill, would be $200 every two years for both registrations, which is less cost to the contractor than the charge being based on their payroll.  The proposal also establishes a task force that will study the effects of employee misclassification on workers’ compensation.

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

Senate Republicans vote to let people ban income tax through Constitutional Amendment

The State Senate approved 25 to 7, a major resolution this week that would allow Tennesseans to vote on a constitutional amendment to clarify the state’s prohibition of an income tax and a payroll tax in Tennessee, with all 18 Republicans present voting in favor of the measure.  The amendment, Senate Joint Resolution 763, sponsored by Senator Brian Kelsey (R-Germantown), 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.   

“If you want less of something, tax it,” said Kelsey paraphrasing President Ronald Reagan.  “If you want more of something, don’t tax it.  We all want more income in Tennessee, so let’s make sure we never tax it.”

A payroll tax has been proposed in recent years by elected officials in Shelby County and elsewhere as a way around an income tax.  A state income tax proposal has repeatedly come before state lawmakers over the last several decades, including failure by only five votes in the House of Representatives in 2002.   In January, eight state lawmakers, seven of whom represent Shelby County, filed legislation, House Bill 3597, to implement a state income tax.  

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

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.

“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,” said Senator Kelsey.  “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.  This measure would put that issue to rest.”

In Brief:

Additional revenue shortfalls – The State Funding Board met this week to update their revenue estimates for both the current and next fiscal year's general fund.  The Board estimates revenues will be at a -1.78 to -2.31 percent loss for the current budget year, and are projected to grow at 2.05 to 2.3 percent in the 2010-2011 fiscal year.  The new estimates mean Tennessee will need to make up at least $75 million more to cover the estimated revenue shortfalls to the proposed 2010-2011 budget.  Finance officials anticipate an additional $28 million shortfall will occur as a result of losses in the cigarette tax, bringing the total shortfall to over $100 million. 

Abortion / Coercion – Legislation to educate women that coercion to have an abortion is a crime in Tennessee passed the full Senate by a vote of 29-2-1.  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 other than to save the life of the mother 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 areas and patient consultation rooms, and would not apply to clinics where an abortion is performed to prevent the death of a pregnant female.

Defibrillators in school gyms – State Senators voted this week to pass legislation to help ensure that school gyms are equipped with automatic external defibrillators (AED).  The legislation, Senate Bill 2505, sponsored by Senator Doug Overbey (R-Maryville) is named in memory of Tanner Lee Jameson, recognizing his life and the efforts his parents have made to save others by placing defibrillators in schools across the region.   Jameson died on June 26, 2009 when he collapsed during his middle school basketball game.  According the American Heart Association “when CPR is performed correctly and an AED is used, survival chances almost triple compared to those who do not receive CPR or an AED.”  The bill requires that gyms are the first place a school would place an automated external defibrillator (AED) device, since they are the most common gathering place for events, particularly involving athletics. 

Tennessee Health Freedom Act – The Tennessee Health Freedom Act, Senate Bill 3498, sponsored by Senator Mae Beavers (R-Mt. Juliet), overcame a major hurdle this week with approval by the House Industrial Impact Committee.  The Senate Republican Caucus held a press conference last week urging the state’s House of Representatives to pass the bill, which was approved by a vote of 26-1-5 in the Senate in February.  The bill would prohibit the federal government from imposing fines or penalties on a person’s decision for deciding not to participate in the federal plan.  It also calls on the state’s Attorney General to take action in the defense or prosecution of rights protected under this legislation.  Last 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.

Advocating for small business -- The Senate Commerce Labor and Agriculture Committee has voted to create a small business advocate within the Office of the Comptroller of the Treasury, utilizing existing personnel.  Senate Bill 3484 sponsored by Lt. Governor Ron Ramsey (R-Blountville) and Senator Bill Ketron (R-Murfreesboro), calls for the advocate to mediate and assist with resolution of issues concerning small business owners and state departments and agencies.  The bill also requires the small business advocate to prepare an annual report on their office’s activities, findings and recommendations to the governor, members of the General Assembly and the heads of the affected departments and agencies.

Tax Freedom Day – Tennessee is ahead of other states in tax burden as April 1 has been recognized as “Tax Freedom Day” for the state.  Tax Freedom Day is the first day of the year in which the state or nation, as a whole, has theoretically earned enough income to fund its annual tax burden, at all levels of government.  It is annually calculated in the United States by the Tax Foundation, a Washington-based organization. The national average for Tax Freedom Day is April 9.  ###