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

 (NASHVILLE, TN), May 20, 2010 –  The Senate Finance Committee and its Budget Subcommittee met this week as members debated several bills that have a financial impact on Tennessee’s state budget.  The Budget Subcommittee was also presented a new plan from Senate Minority Leader Jim Kyle (D-Memphis) which recognizes the fact that the Democrat-proposed tax increases will not pass the Senate Republican majority, but adds pork projects to the bill and cuts the state’s Rainy Day Fund by $142 million to put it at a dangerously low level.

The state’s Rainy Day Fund is Tennessee’s savings account in the event of severe economic hardship.  The proposal to use state savings to provide for a vast array of new spending measures added this week comes after an unprecedented 22 consecutive months of negative collections until this month.  Republican lawmakers on the committee expressed concern about draining the state’s savings account which might be needed in case revenue collections do not meet expectations, the economy takes a turn for the worse, or in the event of a double dip recession.

 “We have worked very hard to ensure we have adequate savings to get us through a severe economic downfall,” said Senator Randy McNally (R-Oak Ridge), Chairman of the Senate Finance Committee.  “It is not the time to stop practicing responsible and conservative fiscal management and go on a spending spree.  We hope that the economy will turn around given the April revenue report; however, if I had a ball team that had lost 22 games and won one, I wouldn’t say we turned it around.  It is a significant gamble to spend more of our savings.” 

“Senate Republicans have put forward a responsible budget that reduces spending and shrinks the footprint of government,” said Lt. Governor Ron Ramsey (R-Blountville).  “Now is not the time to load up the budget with pork projects and new taxes.  Tennesseans want fiscal accountability in state government and that is what we have delivered.”

 “The shortfall we are currently facing is partly due to the administration using the high end of the Funding Board’s estimates regarding how well our revenues will perform,” added Senate Majority Leader Mark Norris (R-Collierville).  “This is a repeat of last year’s performance which also resulted in overestimating our state revenue collections.  The result is we have to circle back and face the same task of making the cuts needed to balance the budget or dip into our savings.  Unfortunately, this year the administration has also asked for tax increases at the worst time possible as Tennesseans struggle to recover from a recession.”

Kyle moved 39 separate requests for additional spending items on the budget bill, which were successfully resisted by Republicans.  The committee will meet again on Monday to continue discussions on the budget.

“Republicans want a reality-based budget that sticks with the four-year plan passed last year to phase in economic recovery through these tough times without raising taxes,” Norris added.  “We will not achieve this by raising taxes or adding more pork projects to the budget.  Hopefully, we can sit down to really work out the differences we face with this budget to achieve a realistic solution that can pass both houses.”

Disaster Relief Update

Four more Tennessee counties have been approved for federal assistance as a result of extreme weather and flooding that struck the state April 30-May 2.  Cannon, Giles, Pickett and Marshall Counties joined the forty-two other counties in the state that were previously approved for individual and public assistance

Residents and business owners in the affected counties can apply for assistance immediately by registering online at www.fema.gov or by calling 1-800-621-FEMA (3362).  In addition, Pickett County has been approved in the public assistance category.

The public assistance designation means local governments are eligible to apply for federal assistance for debris removal, emergency protective measures and repairing, restoring or replacing damaged public facilities.  For public assistance projects that are eventually approved, FEMA will pay 75 percent of the cost. The remaining 25 percent is split between the state and local government. 

Individual assistance can include grants to help pay for temporary housing, home repairs and other serious disaster-related expenses. Public assistance is also available to state and eligible local governments and certain private nonprofit organizations on a cost-sharing basis for debris removal and emergency protective measures only at this time. In addition, federal funding is available on a cost-sharing basis for hazard mitigation measures statewide.

Over $100 million in federal assistance has been approved for the survivors of Tennessee’s record-setting storms, with 34,300 people having registered with FEMA for Individual Assistance.  The amount includes $90.7 million in housing aid, such for rental assistance and home repairs, and $9.5 million for other needs such as personal property. 
Nearly $640,000 in loans from the U.S. Small Business Administration have also been approved.
 
Individuals can register with FEMA online at www.DisasterAssistance.gov anytime or by calling 800-621-FEMA (3362) or TTY 800-462-7585. The toll-free numbers are staffed seven days a week, 7 a.m. until 10 p.m. until further notice.

On flood damage to state property, Finance Commissioner Dave Goetz told members of the Senate Finance Committee this week that Tennessee was in pretty good shape.  The state was insured for their losses against a $5 million deductible.  The state is also self-insured with coverage of up to $25 million for property damages.

Repairs to roads are eligible for 100 percent funding under the Federal Highway Emergency Fund. 

The appropriations bill would also transfer $17 million in funds to help the state access critical federal money.  The General Assembly will continue to work on emergency funding, particularly as it applies to helping cash-strapped counties with their share of matching funds, until the 2010 legislative session adjourns.

Resolution aims to prevent wide open U.S. Constitutional Convention by rescinding previous calls on limited matters
 
The Senate Finance Committee approved a resolution this week to rescind three previous state resolutions calling for a limited U.S. Constitutional Convention.  The action comes after many prestigious constitutional authorities say it is impossible for Congress or state applications to restrict what a Constitutional Convention does or to limit it to just one subject.  In addition, Congress has rejected proposals to establish rules or to limit a Constitutional Convention's purpose, procedure, agenda, or election of delegates, leaving such decisions open to congressional action. 

“Case law and the prevailing wisdom during the ensuing years focusing on whether states have the power under Article V to hold a limited U.S. Constitutional Convention have opined that this is not the case and that they could be open to other matters despite attempts to limit them,” said Senate Majority Leader Mark Norris (R-Collierville) who sponsored the resolution.   “In light of that, a number of states are reversing their previous calls for a limited convention.  About 12 states have repealed them, and this resolution would count us among them.” 

The Article V provision that authorizes the calling of a Constitutional Convention refers to considering "amendments" (note the plural).  The late Chief Justice Warren Burger, opined "There is no effective way to limit or muzzle the actions of a Constitutional Convention. . . . After a Convention is convened, it will be too late to stop the Convention if we don't like its agenda."

Other leading constitutional experts agree that even if Congress called a Constitutional Convention to consider only one issue, the Convention delegates have the authority to ignore that instruction, set their own agenda, and make their own rules.  This leads many to believe the Constitutional Convention process would be a prescription for political chaos, controversy, confrontation, litigation, and judicial activism.
 
The previous Tennessee resolutions called for limited Constitutional Amendments regarding terms of judges and judiciary, federal appropriations and revenues, and the power of president to veto appropriations.   

Governor vetoes Second Amendment rights bill

Governor Phil Bredesen has vetoed legislation to address any “vagueness” in the state’s new handgun carry law and to allow law-abiding citizens to carry their firearm in establishments that serve alcohol.  The legislation, as passed, allows law-abiding handgun permit holders to “carry” into establishments serving alcohol as long as the owners of the premises have not posted notification that they are banned. 

The bill clarifies language in the law passed last year, particularly as it applies to the posting of notices, and adds penalties for those who consume alcohol while carrying their gun in violation of the statute.  It was designed to address Davidson County Chancellor Claudia Bonnyman’s decision to strike down the law due to ambiguity.  It makes clear what signs qualify as a legal posting so there is no vagueness or ambiguity. The notification must be of appropriate dimensions. 

The bill also prescribes a Class A misdemeanor offense for those convicted of drinking alcohol in violation of the gun carry permit law.  In addition, those convicted of intoxication would be subject to losing their gun carry permit for three years.

The legislation, Senate Bill 3012, upholds the U.S. and Tennessee Constitution’s right to bear arms.  It also follows 13 years of experience with Tennessee’s handgun carry law that shows an outstanding record of safety among permit holders.  Sponsors will likely move to override the governor’s veto next week.

In Brief….

The governor signed a number of bills into law before departing for his economic development trip to China.  Following are some of the new laws that were signed. 

Children / Child Support Orders – Legislation allowing Tennessee to participate in the International Recovery of Child Support and Other Forms of Family Maintenance was signed into law.  The measure, Senate Bill 2818, is sponsored by Senator Mike Faulk (R-Church Hill). The 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.

Sex offenders / Physicians -- The governor has signed 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 measure, Senate Bill 3362 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 new law, which takes effect July 1, 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.

False Allegations / Sexual Abuse – A new law that allows the court to hold in contempt any person who makes false allegations of sexual abuse in furtherance of litigation has been signed.  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 by Senator Dewayne Bunch (R-Cleveland), will take effect on July 1. 

Meth labs – 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 was signed by the governor.  The measure 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 new law, Senate Bill 2969, is sponsored by Senator Diane Black (R-Gallatin) and will go into effect on July 1.

Citizen’s constitutional rights in foreign judgments / Libel Tourism – Another bill signed by the governor is aimed at helping in the fight against a tactic known as “Libel Tourism.”  The practice is used in defamation lawsuits filed against authors critical of individuals with known ties to terrorist organizations like al Qaeda and Hamas. The legislation, Senate Bill 3589 sponsored by Senator Bill Ketron (R-Murfreesboro), 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 new law, which takes effect on July 1, 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.

College Savings / BEST – The governor has signed a bill approved by the General Assembly 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 legislation 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.  The new law, Senate Bill 1142, sponsored by Senator Dolores Gresham (R-Somerville) became law upon the governor’s signature.

Hospital assessment – The governor signed legislation designed 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.  The new law, Senate Bill 3528 sponsored by Senator Doug Overbey (R-Maryville), was effective upon being signed. 

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

 (NASHVILLE, TN), May 13, 2010 -- The State Senate passed several key immigration and crime bills this week; however, it was the budget that was front and center with the presentation of Governor Phil Bredesen’s amended budget package to the Senate Finance Committee.  Afterwards, Senate Finance Chairman Randy McNally (R-Oak Ridge) presented an alternative Republican proposal designed to offset the governor’s tax increases with cuts in spending.

“This is not a final budget,” said Chairman McNally.  “It is simply a schedule that helps us, rather than to just say no, to recommend cuts that could be made to address the shortfalls created by not passing the administration’s proposed tax increases.”  

The larger items in the administration bill include tax increases that would impact small businesses by raising the single article cap on sales tax, increase taxes on cable television customers, and raise the fee for Tennessee driver’s licenses.  The Republican plan addresses those tax hikes by cutting state government spending by $133 million instead.   

Both budget plans acknowledge $78 million less in revenues from the revision presented earlier this year for the current fiscal year and $76 million less than the 2010-2011 budget year which will go into effect on July 1, for a shortfall of about $150 million in the governor’s original budget proposal.  The new budget amendment comes after the State Funding Board adjusted downward its previous estimates for total state taxes due to a more dramatic decline in revenue collections than previously anticipated.  The board’s consensus recommendation in March was to recognize lower growth rates than those adopted December 18, 2009, from which the original budget was constructed.

The revised ranges reflect growth rates ranging from negative 1.77% to negative 1.29% for total taxes and negative 2.31% to negative 1.78% in general fund taxes.  Based upon the funding board’s March recommendation, the revised estimates for 2009-2010 now assume an under collection in total taxes in the amount of $258.9 million and an under collection of $231.0 million in general fund taxes. 

The budget is typically among the last bills passed by the legislature before adjournment.  The General Assembly will carefully review language in the both amendments in the Senate Finance Committee next week and make any needed changes before the bill goes to the full body for final consideration.  Expect the legislature to focus almost entirely on the budget during the remaining days of the 2010 legislative session.  

Tennessee Disaster Update / Contingency Funds -- On disaster relief funds, Finance Commissioner Dave Goetz told Committee members the state presently has about $17 million in funds that have been held to assist with the costs of the storms and draw down federal relief.    Commissioner Goetz said the state would then rely on contingency funds that could be available to the state soon from enhanced Federal Medical Assistance Percentages (FMAP) legislation to assist them. 

FMAP is used in determining the amount of federal matching funds available to assist states with payments for certain social services and state medical and medical insurance.  If approved, the move could provide the state with an additional $341.6 million with the state using a portion of that money to assist counties with major damage that cannot meet their 12.5 percent match. 

The governor proposed several new spending items to the budget contingent on the state receiving the federal FMAP funds.  The largest expenditure would be $100 million as a special allocation to help community colleges get ready for an influx of new students as a result of legislation passed during the Special Session on Education.  He has also proposed  $16.1 million for a fish hatchery in Carter County.  Goetz said both of these allocations could go to disaster relief, depending on the need.  Several counties are suffering major devastation in their infrastructure and are struggling to find matching funds to draw down relief. 

In addition, U.S. Senator Lamar Alexander said this week that he has been assured the  Supplemental Appropriations bill pending in Congress will include emergency funds to address the unprecedented flooding in Tennessee.  Alexander is working with other senators in the U.S. Senate Appropriations Committee on the final numbers.  The Supplemental Appropriations bill includes funding for Iraq, Afghanistan and disaster relief.  The Federal Emergency Management Agency (FEMA) announced this week that over $28 million in disaster assistance has been approved to help with recovery efforts of those who were impacted by the severe storms and flooding.

Disaster Relief / Property taxes – Disaster relief legislation was also approved in the Tennessee Senate this week to authorize local governing bodies, by a two-thirds vote, to prorate a homeowner’s or business owner’s property tax assessment when the structure cannot be occupied for more than 30 days as a result of a disaster certified by the Federal Emergency Management Agency (FEMA). The proposal was added as an amendment to Senate Bill 3687, sponsored by Senator Randy McNally (R-Oak Ridge), who stepped aside to let other senators whose districts were impacted take the lead on the measure.  The legislation would provide tax relief on properties that are not inhabitable during the time it takes to rebuild.  Those severely impacted by the recent storms would need to apply for property tax relief prior to September 1, 2010 under the bill. 

Lawmakers continue to work with state and federal officials in the aftermath of one of the worst natural disasters in the state’s history. 

Revenues improving -- In good news this week regarding the state’s finances, Tennessee’s revenue collections improved in April with a net positive growth of 2.23 percent over April collections one year ago.  April revenues were $1.243 billion, which is $43.4 million more than the state budgeted for the month, representing the first positive sales tax growth month in almost two years. 

Sales tax collections started their downward spiral starting in January 2008.  Beginning in June 2008, Tennessee has recorded an unprecedented 22 consecutive months of negative collections until now.

Tennessee sales tax revenues for the past nine months are still under collected by $201.8 million. The year-to-date growth rate for nine months is negative 4.11 percent.  The general fund is under collected by $153.6 million and the four other funds are under collected by $47.1 million.

State Senate debates immigration, voter registration, and driver’s license bills

ICE / Prisoners – In action on immigration legislation, the Senate debated a measure calling for Tennessee jails to send information to the federal Immigration and Customs Enforcement office (ICE) regarding prisoners who do not have documentation that they are in the U.S. legally.  The bill, Senate Bill 1141, requires the jail keeper to fax, email or send a copy of the booking information within three business days of the person’s arrest.

The bill does not apply to any county or municipality that enters into a memorandum of understanding with the United States Department of Homeland Security concerning enforcement of federal immigration laws.  Davidson and Shelby Counties already have programs which share information.  Knox County is also currently negotiating with federal authorities regarding a memorandum of understanding. 

“This bill simply provides for information sharing with local law enforcement and federal authorities and protects citizens from criminals who are not in the country legally,” said Senator Dolores Gresham (R-Somerville), sponsor of the bill.  “This is important to our national security.”

Debate will continue on the bill in the next floor session of the Senate scheduled for May 24. 

Drivers License / English – Similarly, the full Senate gave approval to legislation to require that Tennessee drivers’ license exams are given in English.  The bill, however, was defeated in the House Budget Subcommittee on the following day.  The measure sought to make sure that immigrants know how to read the road signs and can drive safely in Tennessee.  Senate Bill 63, sponsored by Senator Bill Ketron (R-Murfreesboro), would not have applied 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. 

Similar measures have passed the Senate for the last two years, but did not gain passage in the House of Representatives.  Nine other states have “English only” laws.

Voter Registration --  The full Senate approved legislation on final consideration aiming to strengthen the integrity of elections in Tennessee.  The proposal, Senate Bill 194, sponsored by Senator Dewayne Bunch (R-Cleveland) and Senate Majority Leader Mark Norris (R-Collierville), requires that voter registration forms contain a disclaimer that clarifies giving false information to register to vote carries a criminal penalty.  The legislation also requires that applicants affirm that they are lawfully in the United States.

The U.S. Constitution already requires citizenship to vote.  In addition, federal law makes it a crime to knowingly make a false statement or claim regarding citizenship upon registering to vote. 

The legislation, under an amendment sponsored by Norris, also gives election officials guidance and clarifies what they can ask for if they question whether a voter is qualified.  The bill calls for verification by providing one of the following:  a driver’s license, U.S. naturalization documents, birth certificate, passport, Federal Bureau of Indian Affairs card or other documents or methods of proof that are established pursuant to the federal Immigration Reform and Control Act.

English in the workplace – The Senate has voted to clarify that Tennessee employers have a right to institute an English-in-the-workplace policy.  State Senators refused to recede from their version of Senate Bill  2753 in describing what circumstances are covered and sent the matter back to the House to begin the process of working out the differences on the legislation.  The Senate version relies on EEOC (Equal Employment Opportunity Commission) guidelines to clarify that employers can require that English be spoken on in the workplace as long as it is posted and deemed a necessity for safety on the job.   The bill is sponsored by Senator Jack Johnson (R-Franklin).

State Senate continues efforts to wage war on crime

Armed Robbers – The legislature approved numerous anti-crime bills this week, including a measure approved by the Senate Finance Committee to strengthen penalties against armed robbers.  The legislation 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 non-violent property to community corrections, with more intensive supervision, instead of jail time.  The legislation, Senate Bill 3431, now goes to the Senate floor for a final vote.  The bill is co-sponsored by Senate Majority Leader Mark Norris (R-Collierville) who has sponsored a series of bills, including “Crooks with Guns” legislation, to crack down on violent crime.

Criminals / Escape – State Senators gave final approval to legislation that creates a Class A misdemeanor offense for a person knowingly to aid a criminal who is fleeing law enforcement by intercepting police transmissions and relaying that information to the offender to help them escape.  The legislation, Senate Bill 2545, sponsored by Senator Dewayne Bunch (R-Cleveland), was filed at the suggestion of law enforcement authorities. 

Crack tax reimposed – The full Senate acted this week to reimpose a state law taxing the sale of illegal drugs that the state Supreme Court declared unconstitutional last year in a case involving Steven Waters.  The legislation, commonly known as the “crack tax,” targets the sale of illegal drugs.  The bill, Senate Bill 3134, is sponsored by Senator Randy McNally (R-Oak Ridge).

Used by law enforcement for several years, the tax has raised several million dollars for Tennessee.  Last year, the Tennessee Supreme Court in a split 3-2 decision overturned the state’s crack tax.  This legislation fixes any perceived ambiguities under the statute regarding the constitutional authority to tax those peddling illegal substances.  It takes the suggested findings from the Water’s decision to make sure it is clearly defined that the tax applies to items being held for sale by drug dealers. 

The purpose of the legislation is to reinstate the unauthorized substance tax and satisfy the issues identified in the court’s ruling.   Sponsors say the tax is a means to offset the cost drug dealers impose on the criminal justice system.

Crime / Domestic Violence / Orders of Protection – The Senate acted on two separate measures to address domestic violence this week.  One proposal, which was approved on final consideration, 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.  The measure, Senate Bill 2708, sponsored by Senator Rusty Crowe (R-Johnson City), now goes to the governor for his signature.

Crime / Domestic Violence / Counseling -- The second domestic violence proposal acted on this week would allow the court to order domestic abuse perpetrators to attend counseling programs.  The bill, which was approved by the Senate Finance Committee, prescribes a list of counseling programs the judges can order 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.  The proposal, Senate Bill 2709, is also sponsored by Senator Crowe.

Juvenile Sex Offenders / DNA -- The full Senate approved a bill sponsored by Senator Tim Burchett (R-Knoxville) to add juvenile sex offenders to Tennessee’s DNA database after they are adjudicated.  The DNA database is the 21st century’s answer to fingerprinting.  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 legislation, Senate Bill 3169, adds adjudicated juvenile sex offenders to the list of those who must submit DNA samples under that law.

DUI / Broadens definition  – The definition of driving under the influence (DUI) would be broadened under legislation sponsored by Senator Diane Black (R-Gallatin) and approved by the Senate Finance Committee this week.  The bill, Senate Bill 2970,
prohibits any person from driving while under the influence of any intoxicant, marijuana, controlled substance, drug, substance affecting the central nervous system or combination that impairs the driver’s ability to operate a motor vehicle.  The bill aims to allow for the prosecution under the state’s DUI laws of those who use other substances that impairs their driving, including huffing.

DUI / Ignition interlock – The House of Representatives approved major DUI legislation already passed by the State Senate to increase the use of ignition interlock devices to curb the number of alcohol-related car crashes in Tennessee.   The bill 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.   The legislation, Senate Bill 2965, sponsored by Senator Mae Beavers (R-Mt. Juliet) now goes to the governor for his signature.

Terrorism / Resolution – Finally, the State Senate voted to approve Senate Joint Resolution 860, which encourages the President and the U.S. Attorney General to take steps necessary to try foreign terrorists by a military commission.  The resolution states the sense of the General Assembly is that Umar Farouk Abdulmutallab and all other enemy combatants or “alien unprivileged belligerents” should be tried by a military commission.  The measure, which is sponsored by Senator Tim Burchett (R-Knoxville), directs copies of the resolution to be transmitted to the President, Attorney General, and each member of the Tennessee Congressional delegation.

In Brief…

TNInvestco – Legislation sponsored by Senator Doug Overbey (R-Maryville) was approved by the Senate Finance 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 by approving two amendments 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.

Transportation / Drivers / International Drivers – The Senate accepted a House amendment on Senate Bill 2712 sponsored by Senator Brian Kelsey (R-Germantown) to make it a violation of 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 now goes to the governor for his signature. 

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 full Senate this week.  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.  The legislature’s financial analyst reported passage of the bill would result in an increase in the highway fund of over $67 million upon implementation. 

Citizen’s constitutional rights in foreign judgments / Uniform Unsworn Declarations Act -- Legislation addressing how Tennessee courts should be required to deal with foreign judgments was approved on final consideration this week.  The bill deals with the application of foreign laws, if and when they violate a citizen’s protections under the state and federal Constitutions.   Senate Bill 3740 , sponsored by Senator Dewayne Bunch (R-Cleveland), calls on Tennessee courts to consider that the primary factor in decisions regarding whether to enforce decisions from foreign countries should be the protection of constitutional liberties and protections afforded to individuals under the U.S. and Tennessee Constitutions. 

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

 (NASHVILLE, TN), May 6, 2010  --  This week’s action on Capitol Hill was overshadowed by Tennessee’s “state of emergency” due to severe storms, tornadoes and flooding that resulted in one of the worst natural disasters in the state’s history.  There have been 21 confirmed fatalities in the weekend storms. 

"Words cannot describe the devastation and loss that so many Tennesseans have suffered,” said Senate Majority Leader Mark Norris (R-Collierville).  Our thoughts and prayers are with them"

Prayers for those devastated by the storms were also lifted in the chamber of the State Senate on Thursday led by Senator Jack Johnson (R- Franklin) whose district suffered widespread damage.  Senators commended state and local emergency personnel who performed above the call of duty during the disaster.  They also stopped to express appreciation for the heroic efforts of citizens who participated in the rescue and stopped to remember those who must rebuild in the aftermath of the storms.

The Coast Guard rescued 250 people, while the Tennessee Wildlife Resources Agency (TWRA) helped 351 persons to safety from the flood waters.  Twenty-eight shelters opened their doors to assist those who needed a place to stay due to evacuations or destruction of their homes.  The American Red Cross and other charitable organizations are working with federal and state partners in the relief effort.  In addition, the Tennessee Emergency Management Agency (TEMA) has activated the Tennessee Emergency Donations Hotline to accept contributions to support state flood victims.  Volunteers will be answering calls at 8:00 a.m. to 8:00 p.m. CDT daily at the toll free number (866) 586-4483.

“We have certainly seen the citizens of this state live up to the ‘Tennessee Volunteer’ name,” added Johnson.  “There has been tremendous volunteer assistance in trying to help our neighbors through the rescue and recovery process.”    

Federal officials are working with state and local emergency responders throughout the region. Federal Emergency Management Administration (FEMA) staff and resources have been dispatched to assess the damage and assist with the recovery.  

On Monday, Governor Bredesen asked President Obama to declare 52 counties federal disaster areas.  The President had declared 21 counties as disaster areas by Thursday.  The state expects more counties to be added over the next several days.  That designation enables local governments and individuals to access the critical federal grants and/or loans needed to help them recover from the damages sustained due to the high winds and floods.  The aid also helps citizens and local and state governments with costs for damage to roads, bridges, emergency protective measures and debris removal.  In addition, an expedited declaration has been requested that provides federal reimbursement for 100 percent of all eligible costs for 72 hours from the declaration.   

Businesses located in a declared disaster area and that have incurred damage during the disaster may apply for funds to help repair or replace damaged property to its pre-disaster condition. The Small Business Administration makes physical disaster loans of up to $2 million to qualified businesses. Physical Disaster Loans are for permanent rebuilding and replacement of uninsured or underinsured disaster-damaged property. SBA’s physical disaster loans are available to businesses of all sizes and private, non-profit organizations.  Businesses can learn more about these funds and apply by visiting the website https://disasterloan.sba.gov/ela/ or by calling (800) 659-2955.

Additionally, there are federal funds available through the Disaster Unemployment Assistance program for workers who have lost work as a direct result of the storms and flooding.  The Tennessee Department of Labor and Workforce Development facilitates this program for the Federal Government, and those individuals eligible should call the Tennessee Unemployment Insurance Claims Center at (877) 813-0950 extension 7599.

“Hopefully, our citizens will take immediate action to report their damages to local authorities in order for our  counties to make the appropriate assessments needed to be designated as a disaster area,” added Senate Republican Caucus Chairman Diane Black (R-Gallatin).  “This will allow us to start the clean up process so that we can rebuild and restore our communities.”

Individuals are encouraged to call their county Emergency Management Agencies (EMAs) to report their damages so the agency can make the appropriate assessments.  Citizens should contact FEMA by either Internet at www.disasterassistance.gov or call 1-800 621- FEMA (3362) to make application for grants or loan approval for loss of personal property if they do not have insurance. 

Legislation continues existence of boards and commissions but loosens special interest grip on appointments

The full Senate debated legislation this week that continues 18 boards and agencies that are subject to periodic review to determine whether they are effective and necessary.  Several of them, however, contain language to improve public participation and help to ensure that lobbyists, or special interest groups, are not solely in control of who serves on these boards and commissions.  The measure addresses serious concerns about repeated language in Tennessee law, that in effect, allows private entities to select members. 

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

“There are inconsistencies on our boards and commissions,” said Senator Bo Watson (R-Hixson) in speaking about the various state laws regarding appointments.  “Some require selection from specific organizations, while others just ask for recommendations from a particular group.  Our goal has been to allow any citizen of the state who meets the qualifications to be considered for service.” 

The language included in the proposals, as amended, would ensure that appointing authorities consider an organization named in the law’s recommendations.  However, it also provides that they also have the ability to select other qualified citizens that previously have not been allowed due to restrictions that the candidate be selected from a specific special interest organization.  In addition, the amended bill requires Tennessee residency as a condition of appointment. 

Further debate on the bills will continue on the Senate floor on Monday.

Voter Identification legislation debated on Senate Floor

The full Senate debated legislation on final consideration this week aiming to strengthen the integrity of elections in Tennessee.  The bill requires that voter registration forms contain a disclaimer that clarifies giving false information to register to vote carries a criminal penalty.  The legislation, Senate Bill 194 sponsored by Senator Dewayne Bunch (R-Cleveland), also requires that the applicant affirm that they are lawfully in the United States.

The U.S. Constitution already requires citizenship to vote.  In addition, federal law makes it a crime to knowingly make a false statement or claim regarding citizenship upon registering to vote. 

Currently, election officials in the field may have questions about what they can ask for to substantiate that assertion when an applicant checks the box that they are a U.S. citizen.  These officials don’t want to bring it up if they are not authorized to ask for certain identification.  This legislation, as amended by the Senate, gives them guidance and clarifies what they can ask for if an election official chooses to put that person to the test.  This includes a drivers license, U.S. naturalization documents, birth certificate, passport, Federal Bureau of Indian Affairs card or other documents or methods of proof that are established pursuant to the federal Immigration Reform and Control Act.

In Brief…

Grandparent visitation – The State Senate has approved legislation to allow the courts to grant grandparent visitation in cases where one of the child’s parents has died and the surviving parent has terminated the relationship between the child and grandparent.  Absent proof to the contrary, the death alone of the parent is sufficient to establish substantial harm. Currently, Tennessee law provides court standing for grandparents to petition visitation rights in certain circumstances.  However, the court must first determine whether cessation of visitation between a grandparent and grandchild constitutes a substantial threat of harm to the child.  The measure, Senate Bill 3036, is sponsored by Senator Mike Faulk (R-Church Hill).

Ethics and Education / Utility Boards -- The full Senate voted 31 to 0 to approve legislation strengthening the professional and ethical requirements for utility boards across Tennessee.  The bill requires 12 hours of continuing education for commissioners during a three-year period.  This provision would not apply to members of gas utility district boards who receive extensive annual training as reviewed by the Comptroller.  It also requires that if a utility board commissioner is indicted on a matter related to their duties, they would have to step until the indictment is cleared.  If they are subsequently convicted, they would be suspended from the board.  The measure, Senate Bill 3513, is sponsored by Senator Ken Yager (R-Harriman).

Background checks / beer permit holders – The Senate Finance Committee approved a bill this week that would authorize local governments to conduct criminal background checks and fingerprint analysis with the cooperation of the Tennessee Bureau of Investigation (TBI) and Federal Bureau of Investigation (FBI) for beer permit holder applicants.  Currently, local officials can only access local and state law enforcement records to see if an applicant has a criminal history.  However, some communities want the authority to do a broader search to ensure permit holders do not have a criminal background in other states.  This bill gives local governments the authority under Tennessee law for the TBI to access FBI databases to do the check.  The legislation, Senate Bill 3330, is sponsored by Senator Randy McNally (R-Oak Ridge). 

Unemployment Compensation Fund / Direct Deposit – The Senate Finance Committee has approved a bill that allows a person drawing unemployment compensation to request that their weekly benefit be paid by direct deposit into a financial institution that the claimant selects.  It requires that the full Social Security number be omitted from the unemployment check and check stubs.  The move would also result in a $3 million decrease in state expense over time for the state’s Unemployment Compensation Fund.  The measure, Senate Bill 3518, is sponsored by Senator Doug Overbey (R-Maryville)

Employer options for payment of wages – Similarly, the governor has signed a bill that allows  Tennessee employers to have the right to issue payment of wages through either an electronic automated fund transfer or a prepaid debit card under legislation approved this year.  The bill, which is permissive, aims to help employers lower expenses by giving them the right to use these payment methods as an alternative.  The move is expected to save employers, who choose to utilize fund transfer, an estimated 75 percent from the costs of issuing payment by check.  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.  The new law, Senate Bill 2633, is sponsored by Senator Jack Johnson (R-Franklin).

Purple Heart Memorial Plate – The full Senate voted unanimously to authorize widows and widowers of persons entitled to receive holders of Purple Heart memorial plate to obtain a plate upon such person's death.  The legislation, Senate Bill 2382, is sponsored by Senator Ken Yager (R-Harriman).

Banks / Consumers – The governor signed legislation this past week 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 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 also points the borrower to the various federal loan modification programs which might be available to them.  The measure, Senate Bill Senate Bill 3519, is sponsored by Senator Doug Overbey (R-Maryville). 

Child abductions -- Legislation that aims to reduce the risk of child abduction in Tennessee was signed by the governor this past week.  The bill provides courts with guidelines to follow regarding potential child abductions and to provide courts with appropriate measures to prevent these crimes.  This includes information about abduction risk factors so that they can place appropriate restrictions to prevent abductions.  Using these guidelines the court must determine that there is a credible risk of child abduction, and then the court may consider preventative measures.  The legislation, Senate Bill 3065 sponsored by Speaker Pro Tempore Jamie Woodson (R-Knoxville), will take effect July 1.

Abortion / Federal health care bill – The governor, however, returned without his signature legislation to prohibit taxpayer-funded coverage for abortion services in Tennessee associated with the federal healthcare bill passed by Congress in March.  The bill, which becomes law without his signature, 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.   The measure, Senate Bill 2686, is sponsored by Senator Diane Black (R-Gallatin).

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