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

(NASHVILLE, TN), June 10, 2010 -- The 106th General Assembly adjourned to become a part of Tennessee history in the early morning hours of June 10.   Although the state’s budget and the education reforms adopted during the Special Session highlighted this year’s action, the 2010 legislative session will also be remembered for passage of several other important measures.  This includes money-saving legislation overhauling the way the state contracts for goods and services, a new law to curb drunk driving by increasing the use of interlock devices, job creation initiatives and several measures continuing the state’s war against violent crime and child sex offenders.

“The budget was the overriding issue this session,” said Republican Caucus Chairman Diane Black (R-Gallatin).  “The budget we passed decreases spending, does not raise taxes and focuses on maintaining essential services.”

"Tennesseans asked us to reduce the size of government and make it more efficient and that's exactly what we accomplished," said Lt. Governor Ron Ramsey (R-Blountville).  "Republicans defeated the $128 million tax hike proposed by the Governor and balanced the budget by tightening the belt on spending."

"We strengthened Tennessee's position as a state that encourages job growth and implemented education reforms that will better prepare our students to fill those jobs," said Lt. Governor Ramsey.  "Education and job creation go hand in hand and this session showed those were our priorities." 

 “We also continued to make improvements in the war on crime during the 2010 legislative session despite adoption of a lean budget,” Black added.  “This includes approval of measures to crack down on sex offenders and the next phase of the “crooks with guns” legislation to attack violent crime.  In addition, we passed legislation addressing the concerns of small businesses regarding a new workers’ compensation law.  The new law finds common ground to address gaps in coverage for workers in the various construction fields without harming small business owners by providing a mechanism for exemption.”

“Certainly a highlight of the 2010 legislative year was the passage of the education reforms in January,” said Senate Education Chairman Dolores Gresham (R-Somerville).  “Everyone was focused on passage of these major reform bills and working toward the same goal.  The result was passage of landmark legislation to improve education in our state that will benefit Tennessee children for decades to come.”  

The first week of the two-week session on education focused on improving K-12 education and putting Tennessee in position to be a leader in the Race to the Top competition, which helped the state win approximately $500 million in federal funds.  The second week saw the legislature turn its attention to the goal of how to get more Tennesseans to pursue a post-secondary education that fits their academic and workplace needs.  It also included a focus on measures to help ensure that students are successful in completing their college degrees or post-secondary academic programs.

General Assembly approves legislation calling for jails to send information regarding prisoners who are in the U.S. illegally to ICE

In the last week of action on Capitol Hill, the Senate and House approved a conference committee report and sent to the governor legislation 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, sponsored by Senator Dolores Gresham (R-Somerville), requires the jail keeper to fax, email or send a copy of the booking information.

 “This legislation simply makes sure that ICE and Homeland Security are informed regarding anyone who has been booked into Tennessee jails who are in the U.S. illegally,” said Senator Gresham.  “I am very pleased this bill has been approved.”

Lawmakers worked out differences in the bill in a conference committee during the last two days of the session.  The House adopted the conference committee plan and approved the bill by a vote of 56 to 30.  The Senate then took up the matter, passing it by a vote of 24 to 7.

The legislation calls for statewide standards to be developed by the POST (Police Officers Standard Training) Commission.  This provision helps to ensure that Tennessee will not be open to lawsuits that have been problematic in other localities with similar laws.  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 or ICE concerning enforcement of federal immigration laws, which has more stringent standards.

“All counties should provide this information to protect our citizens,” said Gresham, who is a retired Lt. Colonel in the U.S. Marines.  “It is a matter of national security that must be addressed.”

Senate approves Health Freedom Act for second time this session but measure falls 6 votes short of passage in House of Representatives

The Tennessee Senate approved legislation this week sponsored by Senator Mae Beavers (R-Mt. Juliet) and Senator Diane Black (R-Gallatin) to protect the freedom of Tennessee patients to make their own health care choices, regardless of federal action taken in Washington.  The action marked the second time the Senate overwhelmingly approved the measure.  The bill, however, failed by six votes in the House of Representatives along party lines with Republicans voting in favor of the measure.

The Tennessee Health Freedom Act, Senate Bill 3498, was approved in the State Senate on February 18 by a vote of 26 to 1, with 5 members abstaining.  That bill was killed in a House Subcommittee last week. 

The content of that legislation, however, was attached as an amendment to another bill that was advancing through the House of Representatives.   That legislation, Senate Bill 2560, was approved by both the House and Senate on the last legislative day, but in different forms. 

A conference committee, made up of both House and Senate members, was appointed to work out the differences in the bill and came up with a solution acceptable to the Senate.  That version did not seek to “nullify” any federal law, as it would have still allowed individuals the option to participate in a federal program. However, it acknowledged the right of Tennesseans to refuse to participate in a government-run health insurance program.  It also called on the state’s Attorney General to take action in the defense or prosecution of rights protected under the legislation.

“The Tennessee Health Freedom Act would protect a citizen’s right to participate, or not participate, in any healthcare system, and would prohibit the federal government from imposing fines or penalties on that person’s decision,” said Senator Beavers.  “It was passed overwhelmingly by the Senate twice.”

“The health care law passed by Congress is ‘big brother’ at his worst and is Exhibit A in the people’s case against Washington’s abuse of power,” said Senator Black.  “The citizens of Tennessee believe they should be able to choose whether or not they want to participate in a federal health care plan.  That is what this bill sought to accomplish.”

Financial experts predict that the federal healthcare plan will consume any anticipated growth in Tennessee’s revenues once the economy recovers, crippling the state’s ability to make future improvements in critical needs like education, job investment and public safety. 

The federal health care law will also penalize citizens beginning in 2014 if they do not buy insurance. 

Two bills advance in final legislative hours to protect children
 
Two bills sponsored by Senator Tim Burchett (R-Knoxville) to protect children from sex offenders were approved in the final hours of the 2010 legislative session, including one measure to set up a Tennessee Second Look Commission to review cases and procedures related to child sexual abuse.

The Commission would review cases from the initial report of alleged abuse through to a finding or criminal conviction of abuse.  Burchett said it is an important first step in understanding how the system fails endangered kids. 

“The facts show that our present court system fails kids, even after the abuse has been reported,” said Senator Burchett.  “We must find a better way to protect these kids which is the purpose of the study.”

The Commission will review cases and procedures related to severe child sexual abuse to determine if they were handled in a manner that provides adequate protection to the children. Only two percent of the 750,000 pedophiles identified by computer in the United States have been investigated according to expert testimony provided to the legislature last year.  The Commission would be administratively attached to the Tennessee Commission on Children and Youth.

The legislation, Senate Bill 2701, now goes to the governor and would be effective upon his signature.

The second bill sponsored by Burchett and approved by the full legislature before adjournment, prohibits any sexual or violent sexual offender who is required to be on the Sexual Offender Registry from establishing a primary or secondary residence with two or more other such offenders. Similarly, no person, corporation or other entity may knowingly permit more than three such sexual or violent sexual offenders to establish a residence in any house, apartment or other residence. 

The legislation, Senate Bill 3290, comes after a residence of multiple child sex offenders was established in Nashville.  Parents of children in the neighborhood expressed great concern that such a residence could be located in a family-oriented community.

“Parents in residential neighborhoods should not have to worry about establishment of a residence to house multiple child sex offenders,” Burchett added.  “I am very pleased both of these child protections bills were approved during our 2010 legislative session.”

In Brief…

Advocating for small business – State lawmakers approved and sent to the governor legislation this week to create a small business advocate within the Office of the Comptroller of the Treasury, utilizing existing personnel.  The measure, Senate Bill 3484, sponsored by Lt. Governor Ron Ramsey (R-Blountville), 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 for transmission to the governor, members of the General Assembly and the heads of the affected departments and agencies to make sure officials are notified about any problems or concerns.

Domestic Violence / Counseling – Legislation that would allow the court to order domestic abuse perpetrators to attend counseling programs was passed by the General Assembly this week.  The legislation prescribes counseling programs the judges can order, if they choose, including intervention programs that are certified by the 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 measure, Senate Bill 2709, is sponsored by Senator Rusty Crowe (R-Johnson City) and if signed by the governor will take effect on July 1, 2010.

Elections / Felons pay court costs – State lawmakers gave final approval to legislation requiring that convicted felons must pay all court costs imposed before being eligible to have their voting rights restored.  Currently, a person convicted of a felony must be pardoned, discharged from custody or supervision, and have paid all restitution to the victim of the offense to have his or her rights of suffrage restored.  This legislation,  Senate Bill 440, sponsored by Senator Doug Overbey (R-Maryville), would add the payment of court costs as well.   The House added an amendment to provide that, if the felon is found indigent by court officials, they can be excused from the requirement.

Regular Session / K-12 / Students in extracurricular activities / random drug tests -- Legislation authorizing local schools to adopt a policy to use random drug testing on a student participating in voluntary extracurricular activities was approved.  Parents or guardians of the students must be notified about the random drug tests and must give written consent before the student can participate.  The results of the test shall remain confidential in the student’s records.  If the child tests positive for illegal drugs, the school system may not suspend or expel the child.  It, rather, requires the school provide information on inpatient, outpatient and community-based drug and alcohol programs to the child and his or her parents if the test is positive.  The legislation, Senate Bill 2621, sponsored by Senator Jim Tracy (R-Murfreesboro), is designed to get these students the help they need to address drug use before it is too late.

Regular Session / K-12 / JROTC -- The General Assembly approved a military-related bill in the last week of the legislative session to ensure that military personnel who have taught as JROTC instructors for at least two years and are licensed to teach another subject are credited with their years of service in JROTC instruction for the purpose of salary rating.   The legislation, Senate Bill 942, is sponsored by Senator Bo Watson (R-Hixson).

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).

###

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.

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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.  ###

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

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

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

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

The legislation, Senate Bill 3498, prohibits the federal government from imposing fines or penalties on a person’s decision not to participate in the federal plan.  Due to constitutional restraints, the bill does not “nullify” the federal law, as it would still allow individuals the option to participate in a federal program. However, it acknowledges the right of Tennesseans to refuse to participate in a government-run health insurance program.  It also calls on the state’s Attorney General to take action in the defense or prosecution of rights protected under this legislation.

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

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

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

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

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

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

Bill would improve state’s “Silver Alert System”

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

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

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

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

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

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

Plan would help hospitals avoid devastating cuts

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

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

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

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

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

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

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

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

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

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

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

Bill provides an educational approach to remove discarded mercury from landfills

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

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

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

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

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

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

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

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

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

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

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