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

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

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

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

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

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

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

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

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

Constitutional amendment prohibiting income tax passes Finance Committee

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

The amendment, Senate Joint Resolution 763, clarifies that the legislature as well as Tennessee counties and cities shall be prohibited from passing either an income tax or a payroll tax, which is a tax on employers measured by the wages they pay their workers.  The resolution authorizing the amendment must be read three times on three separate days on the Senate floor before members can cast their votes.   

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

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

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

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

There have been three cases before the Tennessee Supreme Court throughout the state’s history that have upheld that the income tax is unconstitutional.  The most recent case was decided in 1964, and this case has never been overturned.  However, in 1999 the State Attorney General issued an opinion saying an income tax was constitutional. 

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

If passed by a majority vote in the Senate, the resolution proposing the constitutional amendment would next need to be approved by a majority vote of the House.  It must then be approved by a two-thirds vote in each chamber during the next General Assembly in 2011-2012.  After that the amendment would be placed on the next gubernatorial ballot for ratification by the people in November 2014.  The amendment next will go to the Calendar Committee, which will schedule the bill for a floor debate in the full Senate, which could come as early as next week. 

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

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

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

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

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

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

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

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

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

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

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

Last month Overbey won passage of a new law to improve Tennessee’s Uniform Principal and Income Act, the Uniform Trust Code, and the Investment Services Act by adding a number of statues to upgrade to improve the state’s trust laws.  It also creates a new type of trust in Tennessee called the unitrust.  The bill now goes to the governor for his signature. 

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

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

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

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

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

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

Issues in Brief

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Tennessee Senate Republican Caucus unveils newly redesigned website

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

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

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

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

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

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

Issues in Brief

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

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

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

     Motorcycle Lemon Law – Legislation to add motorcycles to Tennessee’s “lemon law” regarding warranty protections is headed to the governor for his signature after passage in the House of Representatives.  The Senate passed the bill last week which requires motor vehicle manufacturers, or their authorized agent or dealers, to repair new vehicles that are under warranty and replace or accept the return of them if they cannot be repaired after a reasonable number of attempts.  The bill, Senate Bill 2649, is sponsored by Senator Tim Burchett (R-Knoxville).

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

    Eliminating government duplication -- The full Senate has approved a bill to eliminate the General Assembly’s Education Oversight Committee, a duplication of the efforts of the House and Senate Education Committees.  Passage of the bill, Senate Bill 2408 sponsored by Senator Dolores Gresham (R-Somerville), would save the state $28,300 in travel and per diem costs.  The Committee was created to oversee implementation of the Master Teacher Program, which has since been phased out.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Tennessee working hard to create jobs in challenging economic climate

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

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

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

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

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

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

Two Environmental Resolutions are Approved

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

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

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

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

Issues in Brief

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Constitutional amendment prohibiting income tax and payroll tax advances

     A resolution advanced through the Senate Judiciary Committee this week calling for a constitutional amendment to clarify prohibition of an income tax and a payroll tax in Tennessee.  The amendment, Senate Joint Resolution 763, specifies that the legislature as well as Tennessee counties and cities shall be prohibited from passing either an income tax or a payroll tax, which is a tax on employers that is measured by the wages they pay their workers.  A payroll tax has been proposed in recent years by elected officials in Shelby County and elsewhere as a way around an income tax. 

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

     There have been several cases before the Tennessee Supreme Court throughout the state’s history that have upheld that the income tax is unconstitutional.  The most recent case was decided in 1964, and this case has never been overturned.  However, elected officials in Tennessee have proposed both an income tax and a payroll tax in recent years.

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

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

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

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

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

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

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

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

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

Issues in Brief

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

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

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

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

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

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

Two Reports released this week provide grim state economic forecast

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

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

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

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

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

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

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

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

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

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

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

Bill would strengthen Tennessee’s small group health cooperatives

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Bills in Brief

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

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

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

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

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

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

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

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

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

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

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

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

Senate approves legislation to help protect children from Internet predators

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Higher Education working collaboratively to improve teacher quality

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

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

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

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

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

Issues in Brief

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

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

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

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

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

Capitol Hill Week

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

     (NASHVILLE, TN), January 28, 2010 –   The Tennessee General Assembly returned to Capitol Hill this week to close out the Special Session on Education and begin the work of the 2010 legislative session.  Although the budget deficit will be the predominant driver for legislative action this year, other issues that will headline the legislature’s agenda are unemployment, job creation, and preparing for Congressional action on health care that could have a huge negative impact on the state’s finances in the future.   

Resolution would ensure future generations have the right to hunt and fish in Tennessee

     Action on the Senate floor this week included several bills pending from the 2009 legislative session.  One such bill approved by the full Senate gives Tennessee voters the opportunity to decide if the state’s Constitution should be amended to recognize that citizens have the right to hunt and fish.  The resolution was approved after all members of the Senate were added as sponsors of the measure.   An identical resolution was approved during the 2007-2008 legislative sessions by a simple majority, however, the Constitution requires a two-thirds vote in the succeeding General Assembly before it can be placed on the ballot in November 2010.

     “This resolution is critically important to the long term preservation of both our wildlife preservation efforts and our state’s great hunting and fishing heritage,” said Speaker Pro Tempore Jamie Woodson.  “It will ensure that the state’s hunting traditions will be enjoyed by future generations of Tennesseans.”

     Tennessee, like most other states, predicates wildlife conservation efforts on a user pay system supported by sportsmen.  The sportsmen pay for all wildlife conservation efforts, not just game fish and animals, including the acquisition of protected land and preservation of endangered species.  Protection of the sportsmen’s right to hunt and fish make sure wildlife preservation efforts in Tennessee continue indefinitely.  In addition, sportsmen pump millions of dollars into Tennessee’s economy.   

     The resolution, Senate Joint Resolution 30, will give sportsmen a voice in court on any future action that would deny their right to hunt and fish if approved by the voters.  The ballot measure will be voted on in the same manner as the "Victim's Rights Amendment" in 1998, the “State Lottery Scholarship Amendment” of 2002, or the latest amendment to give property tax relief to the elderly.

 

     “A constitutional right to hunt and fish will afford some added level of protection, added Woodson.  “I am pleased that voters will have the opportunity to guarantee this right for generations to come.”

Senate overrides Governor’s veto on restaurant menu requirements

     The Senate voted 24 to 7 to override the governor’s veto of legislation approved last year to ban unelected local government regulatory agencies from imposing requirements on restaurants to post calories on menus.  The Senate passed the measure, Senate Bill 1092, last year after many small businesses raised concerns that some communities will impose different standards than those likely to be required at the federal level, which will significantly increase costs to small restaurant owners.   

     Last March, Davidson County’s Metro Board of Health, made up of unelected members, voted to require restaurants located in that county to post caloric information on menus even though Congress is considering the Federal LEAN Act.  That act would implement a national standard generally accepted by restaurant owners to provide standardized nutritional information to customers.  This year the same Metro Board voted to suspend its regulations until they can be reconciled with the federal legislation that is also included in the health care bill pending in Congress.   

     Small business owners, as well as the restaurant and hospitality associations, support the LEAN Act, which requires some restaurant chains to post calories on menus, as well as other information that is helpful like total fat, cholesterol, sodium, and sugars.  However, they want a consistent labeling system across all levels of government rather than having to comply with separate requirements from local, state and federal governments which would be costly to small business owners.

     “Our small businesses are struggling as it is to make ends meet in difficult financial times and must comply with red tape imposed on them by multi-levels of government,” said Senator Diane Black, sponsor of the bill.  “We are not against nutritional information being available to consumers.  This is about unelected regulatory agencies that should not have the power to impose their own mandates on what should be posted on menus, which will likely be in addition to what is required at the federal level upon passage of the LEAN Act.”

Senate Commerce Committee approves legislation to boost sale of “prime milk” by Tennessee dairy farmers

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

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

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

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

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

General Welfare, Health and Human Resources Committee hears strategies for improving health in Tennessee

     In Committee action this week, the General Welfare, Health and Human Resources Committee heard from Jeff Ockerman with Tennessee’s Division of Health Planning regarding strategies for improving health in the state.  Ockerman is charged with implementing an act passed by the General Assembly to develop a state health plan that will serve as a guide to improve the overall health care of Tennesseans.

     Tennessee has been called one of the least healthy states in America, ranking 47th in the nation.  In addition, the state’s health system performance has ranked below average as well at 39th in the nation.  According to Ockerman, once the plan is in place it will provide a vision for moving Tennessee’s current health care system to an integrated system of care, which is more efficient and effective.  It will also focus on the need for health promotion, health education, disease prevention, better nutrition, and chronic disease management.

     Ockerman said Tennessee has been successful in the state’s childhood immunization effort with 83.1 percent of children being immunized.  The national average is 80.1 percent.   The remainder of the indicators on the health status of Tennesseans, however, is grim.  Tennessee is the worst in the nation in infant mortality, with an 8.8 per 1000 birth death rate.  The national average for infant mortality is 6.6 per 1,000 births.  Adult diabetes is a major concern since the state is above the national 8 percent average, with 10.4 percent of Tennesseans having the disease.  In following, adult obesity is 31.2 percent in Tennessee, well above the 26.7 percent average.  Likewise, one of the most concerning indicators is childhood obesity.  Tennessee children are well above the 28.8 percent national average, with 35 percent overweight.

    Senator Rusty Crowe (R-Johnson City), Chairman of the Senate Health and Human Resources Committee said, “I have asked Jeff Ockerman to appear before the committee so that we may begin to better understand those areas needing improvement and so that we might develop strategies and provide solutions in those areas.  I thank the governor and Mr. Ockerman for their work on this project.  I have asked him to return at a later date when he has made progress on the plan to identify further how we might focus on these problem areas and improve our state health rankings.”

Open Records Counsel gives lawmakers an update on efforts to open government in Tennessee
 

     The Senate State and Local Government Committee heard an update from Elisha Hodge, Director of the Office of Open Records Counsel, regarding efforts to open government in Tennessee.  The office was created in 2008 as a division of the State Comptroller’s Office to resolve disputes regarding access to public records and promote education and awareness of Tennessee’s public records and open meetings law.  It also assists Tennesseans in obtaining public records from local governments by guiding them to the correct offices or officials.    

     Hodge said the Office of Open Records dealt with 898 inquiries in 2009, of which 456 were from government entities, 63 from media, and 379 from individual citizens.  The Office also dealt with 14 complaints of the open meetings act and was involved in 3 public records lawsuits.  The Office did 29 opinions dealing with a variety of subjects involving open records.   

     The Tennessee Public Records Act provides that Tennessee citizens have the right to receive copies of public records, further supporting transparency in government.  The Office of Open Records set a schedule of reasonable charges for photocopies at 15 cents for each black and white copy and 50 cents for color.   

     “Our open records law is working to make governments across Tennessee more transparent and accountable to the public,” said State and Local Government Committee Chairman Bill Ketron.  “I commend their work and look forward to seeing their continued efforts in opening up government to Tennessee citizens.”   

     Hodge also reported that two local government entities are taking advantage of the expansion of a pilot program utilized in Knox County that brings sunshine online to the Internet.  Blount County is now approved to use technology to set up an online forum for elected officials to communicate outside of public meetings; but within the bounds of the state’s Sunshine law, while Loudon County is close to finalizing a similar plan.   

     Under the law, elected bodies statewide can set up websites where they can post messages to one another after approval by the Office of Open Records Counsel.  These “conversations” would be available for the public and media’s viewing.  The technological sunshine bill is designed to make it easier for officials to conduct business, while balancing the public’s right to know.

     “I am very pleased that this new law is working to provide a new technological forum for our elected officials and their constituents,” said Senator Randy McNally, who sponsored the legislation.  “As technology and Internet capabilities continue to advance, I expect to see this program expand to other areas of the state.”  

Bills in Brief

     Tourism – Tourism Commissioner Susan Whitaker appeared before the Senate Conservation and Environment Committee this week to update lawmakers on efforts to promote travel to and within the state.  Whitaker said tourism is up from $14.2 billion to $14.4 billion over the last year, although some parts of the state have been hit hard by the recession.  The state is in the top ten in the U.S. in tourism and is doing very well compared to neighboring states, some of which are in double-digit decline.  Tennessee is promoting a scenic by-ways project to get tourists into the more rural areas of the state, which is already meeting with some success.   

     Using data to drive teacher instruction – Senate Education Committee members heard from Murfreesboro’s Scales Elementary teacher Pam East this week regarding her efforts to use student test data to drive individualized instruction.  East, who is the author of “The 5-Step Way to Raise Test Scores” outlined the basic steps of analyzing a variety of student data and then using that information to drive classroom instruction.  She said it was a way to target instruction exactly where it’s needed.  The veteran teacher looks at standardized test scores as a tool to bring student’s learning to new heights.

     Education reforms signed – This week the governor signed legislation that passed during the Special Session on Education.  The legislation focused on improving K-12 education and putting Tennessee in position to be a leader in the Race to the Top competition.  If successful, the state could receive up to $500 million in federal funds.  A second bill focuses on Higher Education measures to help ensure that students are successful in completing their college degrees or post-secondary academic programs.  

###

General Assembly passes legislation to boost college graduation rates as Special Session comes to a close

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

     (NASHVILLE, TN), January 21, 2010 – The General Assembly passed major legislation this week designed to grow the number of college graduates in Tennessee as the work of the Special Session on Education comes to a close.  The legislature will come back on Monday before adjourning the Special Session to make sure that there are no unanticipated problems with the legalities of the reform measures.   

     The first week of the two-week session focused on improving K-12 education and putting Tennessee in position to be a leader in the Race to the Top competition, which could mean up to $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.  

     “I am very pleased with the education reforms approved by the General Assembly during the Special Session,” said Senate Education Chairman Dolores Gresham (R-Somerville), who helped craft the legislation.  “The status quo is unacceptable.  These bills will help move Tennessee students forward in educational attainment at both the K-12 and higher education levels. It will also help our students compete in a new global economy that puts a premium on a well-educated and trained workforce.  In turn, it will help Tennessee attract the kind of jobs we need to raise the standard of living for many generations to come.”

     The problem -- Tennessee ranks 40th in the nation in completion of bachelor’s degrees and 45th in associate degrees.  The average graduation rates in Tennessee range from 44 percent at four-year institutions to 12 percent at community colleges.  To achieve the national average of 38 percent of adults having an associate’s degree or higher by 2025, Tennessee will have to produce 20,000 more graduates annually.  If successful in meeting this goal, Tennesseans could earn an estimated $6 billion in additional wages and salaries each year as the state enhances the ability to lure new and better paying jobs to the state.

     The higher education bill, called the "Complete College Tennessee Act of 2010" revises 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.  State leaders have worked over the past several months to come up with legislation to achieve this goal with help from the National Center for Higher Education Management Systems and the Complete College America organization.   

     Performance-based funding -- The legislation puts the framework in place to retool the funding formula for higher education to make it substantially based on outcomes.  Currently the formula is based primarily on beginning of term enrollment.  The bill focuses on outcomes by calling for a funding formula that looks at end of term enrollment or student retention, as well as timely progress toward degree attainment and degree completion.  Community colleges will be engaged in the process of devising a formula that is fair, given the unique factors and the number of part-time and non-traditional students attending these schools.   

     Transferrable credits and establishment of a unified community college system --      The bill calls for a more cohesive system to be in place by Fall 2012 to unlock the potential of affordable and effective gateways to higher education through Tennessee’s community college system.  The legislation directs the Board of Regents to develop coordinated programs and services, including a 41-hour common course catalog to make credits earned at community colleges easily transferrable to the four-year college institutions.  This means that an associate of science or arts degree from a Tennessee community college will enable a student to transfer to a Tennessee public university as a junior.  Also, the 19 hours of pre-major courses will be transferrable as a block to meet the requirements of any Tennessee university offering that major.  This system will provide a clearly designated path for students to further their education after completion of an associate degree in the state’s community colleges.

     Dual enrollment / Remedial instruction -- The bill calls for dual admission and dual enrollment to community colleges and four year universities to be widely available for students intending to transfer.  The legislation, however, prohibits remedial or developmental instruction to be offered in a four-year Tennessee university, except when they coordinate with a community college to offer these courses to dually enrolled students.   

     Research Institutions -- The General Assembly has approved $6.2 million to establish a new world-class graduate energy sciences and engineering program at the University of Tennessee at Knoxville in partnership with Oak Ridge National Lab.  The premise is to make the university a top-25 public research institution by placing dramatically heightened levels of instruction in the nation’s premier national lab.  The move is expected to create 200 new faculty appointments among the existing researchers at Oak Ridge National Lab.   The partnership would be similar to one currently in place with the University of California at Berkeley and the Berkeley National Lab.  The bill, as amended, also allows any other four-year Tennessee university to establish an academic unit in collaboration with the Oak Ridge Lab.  It calls for keeping those entrepreneurial opportunities in Tennessee.     

     Similarly, the Memphis Research Consortium is recognized for inclusion under an amendment pushed by Senate Republican Leader Mark Norris (R-Collierville).  The Consortium includes 10 Memphis institutions, hospitals and businesses to collaborate on research, medicine and health care, computational and computer science, and engineering and learning technologies to promote long-term economic development and jobs in that area of the state.

     “The University of Memphis is Metropolitan Research University classified by the Carnegie Foundation for the Advancement of Teaching as a doctoral level high research university,” said Leader Norris. “This significant distinction enables collaborative research which leads to meaningful jobs and economic development.

     Tennessee Technology Centers -- On Tennessee’s Technology Centers, which have enjoyed a very high program completion rate, the bill calls for development of agreements between the technical centers and the community colleges to provide seamless transfer opportunities for students and reciprocal use of facilities and other resources.

     Accountability -- The bill has multiple accountability measures to better ensure implementation of the legislation.  Several provisions in the bill require date-specific reporting to legislative committees regarding the progress and plans for completion of the tasks laid out in the comprehensive measure.  

     “It is incumbent that we review the empowered agencies to make sure that those charged with implementation have fulfilled these reforms,” said Government Operations Chairman Bo Watson.  “The auspices fall to the Government Operations Committee who must be vigilant in making sure that we are on track and moving forward with the reform measures passed by the General Assembly.”  

     Upon adjourning the Special Session, the 106th General Assembly will meet immediately to take up the business of the regular 2010 legislative session.

Issues in Brief

     Parental Choice Scholarships -- The Senate Education Committee voted to create a pilot program in one persistently under-performing Memphis city high school to provide “Parental Choice Scholarships” for low income students who are eligible for free and reduced lunch.  The bill is sponsored by Senator Brian Kelsey (R-Germantwon).  However, action on the bill was deferred due to the time restraints for hearing the matter before the end of the Special Session.  The scholarships would be equal to the amount that state and local school systems would have spent on each child.  They can be used in the school of the parent’s choice, including charter schools, private schools, or other public schools if space is available.  The scholarship amount gradually decreases to 25% of the full amount as incomes rise up to two and a half times the eligible income for receiving free and reduced lunch.  Expect the legislation to come back before the General Assembly during the regular 2010 legislative session.

     “This provides poor kids with hope and real choices in what school they want to attend,” added Senator Kelsey.  “Children from wealthier families are more empowered to move to another school district or to afford a private school.  However, many students from low income families and who are zoned to a persistently failing school do not have another recourse.  Kids shouldn’t be victims of their own geography.”

     Race to the Top application submitted --   Tennessee has submitted the state’s application to compete with other states to receive up to $501.8 million in funds under the federal Race to the Top program.  The application was submitted on the same day the president called for adding $1.3 billion to the budget for the program.  The program currently has $4.3 billion allocated to it to reward states which are implementing significant reforms in four education areas: enhancing standards and assessments; improving the collection and use of data; increasing teacher effectiveness and achieving equity in teacher distribution; and, turning around struggling schools.  The grants are expected to be announced in April to be followed by a second round of competition later in the year.

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Capitol Hill Week

Tennessee General Assembly passes bold initiatives to transform education

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

     (NASHVILLE, TN), January 15, 2010 -- The Tennessee General Assembly returned to Capitol Hill this week in a Special Session to pass bold initiatives designed to transform education and place the state in position to be a top competitor to receive up to $485 million in federal funds.  The legislation, entitled the Tennessee First to the Top Act of 2010, was the result of the collaborative efforts of lawmakers, the governor, and numerous education stakeholders, including an education reform panel headed by former U.S. Senator Bill Frist called the State Collaborative on Reforming Education (SCORE).  Senate Education Chairman Dolores Gresham (R-Somerville) and Senate Speaker Pro Tempore Jamie Woodson (R-Knoxville) were also members of the SCORE panel.

     “I am very pleased this legislation has been approved by our General Assembly,” said Chairman Gresham.  “It gives Tennessee students across the state many more opportunities to succeed and improve their quality of life.  It also enables the state to provide our students with the kind of skills needed to draw new and better paying jobs to our state.”

     “I see this legislation as an opportunity to rethink education policy, to rebuild the box,” said Speaker Pro Tempore Jamie Woodson.  “It’s potentially transformational.  We have the obligation to prepare our students for a global economy.  This legislation provides meaningful reform to provide multiple opportunities to prepare our students for a brighter future.”

     The governor called the Special Session after recognizing that Tennessee has an opportunity to receive a large portion of the $4.3 billion federal “Race to the Top” dollars if the General Assembly acts promptly with certain education reforms.  Gresham was among many legislators who expressed their support for the legislation apart from the opportunity to apply for federal stimulus funds.  

     “To think we might have done this just for the money is inconceivable,” added Gresham.  “The receipt of federal funds is an added bonus to needed education changes that should be passed with or without federal intervention.”   

     Race to the Top is authorized under the American Recovery and Reinvestment Act of 2009 (ARRA) and is a competitive grant program to encourage and reward states who are implementing significant reforms in four education areas: enhancing standards and assessments; improving the collection and use of data; increasing teacher effectiveness and achieving equity in teacher distribution; and turning around struggling schools.

     These goals are also in line with recommendations from SCORE.  That panel held numerous public meetings last year seeking real, meaningful improvements in Tennessee’s education system. Their work has served as a compass for the General Assembly to understand the substantive changes needed to boost student achievement with seven of the panel’s key recommendations included in the innovative legislation.

     The state had to adopt legislation to conform to the Race to the Top requirements by January 19, 2010, to qualify for priority status for receiving funds.  Priority is given in the first round of awards to states that have already adopted an innovative and cohesive plan to improve education.  If Tennessee is successful, the funds would be split with half used for statewide efforts and half going to local education agencies if they agree to participate.  

     Teachers – “The legislation focuses on the belief that great teachers and school leaders make the biggest difference in student performance,” said Chairman Gresham.  “This legislation demonstrates our commitment to teachers and their professional development, recognizing their critical influence on Tennessee children.”  

     The bill capitalizes on Tennessee’s two decades of experience with the Tennessee Value-Added Assessment System (TVAAS) in evaluating student achievement on a year-to-year basis.  Currently, state law bans utilizing the value-added data for making decisions regarding teachers, including the granting of tenure.  The ability to use student achievement and teacher effect data is one of the linchpin issues for receiving Race to the Top funds.  Some of the details of the teacher and principal evaluation process included in the bill are:

    * Creates a Teacher Evaluation Advisory Committee composed of 15 members, including five K-12 teachers, two principals and one director of schools for a total of eight professional educators to recommend evaluation guidelines.
    * Requires annual evaluations using teacher effect data in teacher and principal evaluations.
    * Allows student achievement data to be a component of all teacher evaluations.
    * Thirty-five percent of a teacher’s evaluation would be based on the TVAAS teacher-effect data with another 15 percent based on other measurements agreed upon by the teacher and their evaluator, such as the end of year TCAP tests, ACT or Advanced Placement scores.
    * Requires tenure decisions to be based in part on teacher evaluations.
    * Grants tenured teachers the right to a hearing before an impartial hearing officer selected by the local board of education prior to any termination.
    * Provides that local school systems can create a local salary schedule for teachers and principals to allow local education agencies to reward professional excellence.
    * Gives teacher training programs access to non-identifying TVAAS data on their graduates to help identify the strengths and weaknesses of their programs.

 

     Under-performing schools -- On the issue of providing help for under-performing schools, the legislation focuses on early intervention so the state can take action sooner to get them back on track.  The bill allows the Commissioner of Education to move any public school or local education agency into a newly created “Achievement School District” if the school is in the fifth year of improvement status or at any time a Title I school meets the federal definition of “persistently lowest achieving schools.”  The school would then remain in that District until it achieves adequate yearly progress for three consecutive years, at which time it would transition back.   

     In the meantime, the bill allows for the Commissioner to contract with outside entities to manage the day-to-day operation of any or all schools or local education agencies within the Achievement School District.  Those who contract would report to the local education agency how the money is spent to increase accountability.

     STEM -- In addition to the legislation, the state plans to enhance its Science, Technology, Engineering, and Math (STEM) program, which will be included in the Race to the Top application.  The state is partnering with Battelle, which manages the Oak Ridge National Laboratory, to provide an extensive network of STEM programs across the state.  This includes building new science labs, adding new technology, and creating new curricula to inspire and create new interest in science and math.  Tennessee students must be proficient in these subject areas to compete in a changing global economy.

     Tennessee has compelling criteria to place it at the top of the list for Race to the Top funds.  Finalists in the competition will be invited to Washington to present their plans to the U.S. Department of Education in March.  The winners will be announced in April.  If successful, Tennessee can expect to begin receiving funds in September 2010 which will continue in equal increments over four years.  

Issues in Brief

     Worker’s Compensation -- The General Assembly approved legislation calling for immediate suspension of a new law to require sole proprietors and partners engaged in the construction industry carry workers’ compensation coverage on themselves due to unintended effects with the act.  The legislature will discuss alternative ways to address gaps in coverage for workers in companies of all sizes in the various construction fields in order to address the problem without harming small business owners.  Senator Bill Ketron (R-Murfreesboro) was sponsor of the bill, which now suspends the law until March 28, 2010.

     Voting machines -- The Tennessee Senate approved legislation to delay a law that would have required cash-strapped Tennessee counties to spend $30 million to replace their voting machines.  The legislation was easily approved by a vote of 70 to 23 in the House of Representatives last year with bi-partisan sponsors and support.   The vote in the Senate came after both Democrat and Republican county mayors from across the state expressed strong support in delaying the law due to the costs to taxpayers, absence of availability for up-to-date federally certified machines, and the fact that the machines will have to be replaced again in the immediate future to comply with new standards from Washington.  Those standards include over 100 new requirements, with many of these focused on allowing physically impaired voters to vote independent of assistance.  Senator Bill Ketron (R-Murfreesboro) is sponsor of the legislation.    

     State revenues continue negative trend – The state’s Department of Finance and Administration released Tennessee’s latest revenue collections this week.  The report showed a continued trend of negative tax revenue growth, with tax collections falling below budgeted estimates again in December. It was the 19th consecutive month of negative sales tax growth, with the general fund under collected by $50.8 million and the four other funds were under collected by $3.4 million.

   

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A Preview of the 2010 Legislative Session

Budget and jobs headline 2010 legislative agenda /

Special Session on Education is set to enable Tennessee to draw down federal funds for states with significant reforms  

     (NASHVILLE, TN), January 2010 –  The state budget tops the list of issues that will be debated as lawmakers return to Nashville to begin the second half of the 106th General Assembly.  Although the budget deficit will be the predominant driver for legislative action this year, other issues expected to be on lawmaker’s agenda in 2010 are unemployment and job creation, worker’s compensation, and preparing for Congressional action on health care that could negatively impact the state’s finances in the future.

     However, before the General Assembly begins the work of the regular 2010 legislative session, legislators are meeting in a Special Session on Education to consider legislative changes required to draw down federal “Race to the Top” dollars available to states. The governor called the Special Session after recognizing that Tennessee has an opportunity to receive these funds if the General Assembly acts promptly with certain education reforms.  Race to the Top is authorized under the American Recovery and Reinvestment Act of 2009 (ARRA) and is a competitive grant program to encourage and reward states who are implementing significant reforms in the four education areas: enhancing standards and assessments; improving the collection and use of data; increasing teacher effectiveness and achieving equity in teacher distribution; and turning around struggling schools.  

     The state must adopt legislation to conform to the Race to the Top requirements by January 19, 2010, to qualify for priority status for receiving the funds.  Priority is given to states that have already adopted an innovative and cohesive plan to improve education.  Such action could enable Tennessee to receive as much as $400 million of the $ 4.3 billion in federal funds set aside for states that meet reform guidelines. If Tennessee is successful, the funds would be split with half used for statewide efforts, and with the other half going to local education agencies if they agree to participate.

 

     The General Assembly is expected to consider the K-12 reform proposals first, followed by proposed changes to higher education in Tennessee.
 
     K-12 Education -- Some of the legislative topics expected to be debated regarding compliance with Race to the Top requirements include:

    * Requiring the use of teacher effect data in teacher and principal evaluations
    * Requiring tenure decisions to be based in part on teacher evaluations
    * Requiring annual teacher evaluations
    * Establishing a statewide recovery district for failing schools and school systems

 
     Expect legislation to focus on changing the way Tennessee evaluates teachers. The state already has one of the best evaluation databases in the nation to measures student’s achievements from year to year. Lawmakers will discuss tying this data to teacher evaluation, tenure, and performance pay. The SCORE (State Collaborative on Reforming Education) report, which stemmed from an initiative headed by former U.S. Senator Bill Frist, will serve as a compass in guiding legislators in their reform efforts.  The SCORE report recommended directly linking tenure decisions to teacher effectiveness.  It also recommended allowing student achievement gains to be included as one component of the teacher effectiveness measure before a final tenure decision is reached.  
 
     On the issue of providing help for failing schools, expect the legislative focus to be on early intervention.  If a school is low-performing, the state would be ready to take action sooner.  Several years ago, the legislature changed accountability measures to put Tennessee more in sync with No Child Left Behind standards. Proposals could also include new parameters by which schools will be classified as “failing,” and affix new accountability standards to the plan.

     Another area that could be addressed is the effectiveness of any statewide efforts to enhance Science, Technology, Engineering, and Math.  Tennessee students must be proficient in these subject areas to compete in a changing global economy.   

 
     On improving high school graduation rates, the legislature will consider proposals to place more emphasis on preparing students for college. This includes preparing students for community college and technical schools, in addition to the state’s four-year higher education institutions.  Some lawmakers favor greater utilization of the state’s two-year colleges as a preferred point of entry for incoming freshman.  Similarly, the General Assembly will likely consider making it easier to transfer credits between institutions to make post-secondary work flexible enough to meet the needs of more graduating seniors.   

     Higher Education -- On higher education, the General Assembly will look at a proposal to tie some funding to performance, which would be measured by the number of students who complete their degree program. Among other higher education issues proposed are changing the credit transferring process to establish a statewide transfer agreement between all two- and four year colleges and universities; eliminating remedial education in four-year institutions, and allowing students to dual-enroll in two and four-year institutions. The goal is to direct more students to post-secondary work that fits their academic and workplace needs. The plan would include streamlining and simplifying the process for students to  transfer, enroll, or dual-enroll.
 

     Worker’s Compensation --  The governor also broadened the call for the General Assembly to immediately suspend a new law in the Special Session which requires certain construction subcontractors and independent contractors to carry workers’ compensation insurance on themselves due to unintended consequences.  That law, Public Chapter 1041, took effect on December 31.

     A Joint Workers Compensation Committee heard testimony on the unintended effects of the new law in Nashville last October.  Those most impacted by the legislation are independent contractors and sole proprietors.   

     Recommendations for alternatives have been collected from consumers and affected industries and are being examined.   

     Budget -- The state is facing a budget gap that could go over $1 billion, making the 2010-11 budget the most challenging in recent history.  Unlike Congress, the Tennessee General Assembly is constitutionally bound to balance the budget.   Revenues have fallen short of the weak one percent growth projection assumed for the current budget year which started in July.  The weakening economic condition means lawmakers must be vigilant to make sure that taxpayer dollars are spent in the most efficient and effective manner.   

     As of December, the state was in its 18th consecutive month of revenue declines in an unprecedented economic downturn.  Although the state is in its deepest "fiscal downturn" in modern history, some of the cuts' potentially harmful effects, possible layoffs and reductions, have been greatly abated so far by some of the $5 billion in federal stimulus money for Tennessee, concealing what’s been going on in terms of revenues.  The General Assembly made $753 million in cuts (12 percent) last year, but approximately $526 million was added back with one-time funding, minimizing the first year appropriation reduction to only $227 million.  Now the state must look at making these cuts without money to backfill.   

     The administration asked Tennessee’s various state departments for 6% to 9% more in reductions on top of the $753 million already identified in the current budget year.  Hearings were conducted in late November regarding the reduction plans submitted to the governor from state agencies.  The various departments presented grim pictures under their spending reduction plans, including the Department of Mental Health which placed on the table what they termed “draconian” cuts in core services like alcohol and drug treatment, the behavioral health safety net and community mental health support services.  In TennCare, departmental officials said everyone on the program except pregnant women and children will be affected by the plan they offered.  The officials said they might also have to impose a $10,000 annual cap on hospital coverage, an action that must have approval from the federal government.   

     Other departments and agencies of state government echoed similar lists of painful cuts for consideration to help balance the budget.  

     Economists predict the state's tax base won't return to 2008 levels until at least 2014.

    

        Unemployment -- One of the most significant factors attributing to the state’s budget gap is the high unemployment rate.  Job losses are at 10.3 percent statewide, as of December, a level not seen since the early 1980s.     

   The prolonged unemployment rate has greatly stressed the state’s Unemployment Compensation Fund.  The fund is expected to be very close to broke by the end of 2009 and could possibly dip into the red in the first quarter of 2010.   Expect the solvency of the fund to be a topic for discussion again this session, as the governor has already indicated that the administration may bring a proposal to broaden the wage base during the upcoming legislative session.  

     Bredesen won approval of legislation last session to broaden the taxable wage base to $9,000 from $7,000 and adopted a 0.6 percent premium charge.   Although the state can borrow money to keep the fund solvent without interest until December 2010, any additional funds would require interest from the federal government that could cost businesses more in the long run according to the administration.  Federal control of the state’s fund would mean Washington could dictate future tax rates and wage base thresholds.  Twenty-four states have already borrowed money from the federal government to keep their unemployment funds solvent.   

     The nation has lost 8 million jobs during this recession, which is more than the last four recessions combined.  Tennessee has shared evenly in this loss with a 5 percent decline.  However, Tennessee had the 17th largest private sector loss.  The stimulus package passed into law by Congress has not made any notable improvements in private sector job recovery in the state.   

   Rural Tennessee communities have been hardest hit by the recession, due to the loss of non-durable manufacturing plants located in these communities.  The cities have a more diverse workforce, many of which are service-oriented, a sector of the job market that has not taken as hard a hit as manufacturing and other jobs found in rural areas.  Every industry in Tennessee is in decline, except health care and education.  The hardest hit industries are construction, which has suffered at a 20 percent loss and non-durable manufacturing, at a 10 percent decline.   

   One of Tennessee’s key state economic advisors, Dr. William Fox of the University of Tennessee, does not predict state revenues will start growing again until employment begins to move in the right direction.   

     Congressional Action -- As Tennessee struggles to make ends meet in our state budget, the state is also bracing for the health care proposal currently pending in Congress.  The proposal could cost the state anywhere from over $800 million to $1.4 billion from 2014 to 2019, depending on which version is passed.  The decision from Washington could have dire effects on the state’s budget and the ability of Tennessee to control its own health care program.

     In the wake of Senator Ben Nelson’s “cornhusker kickback,” Lt. Governor Ron Ramsey has already asked Tennessee’s Attorney General to offer preliminary legal options to the Tennessee General Assembly as to how we may best protect our citizens from this unfair and quite possibly unconstitutional federal action.  Senate Majority Leader Harry Reid has publicly acknowledged the critical sixtieth vote in favor of passage was cast by Nebraska Senator Ben Nelson in exchange for inclusion of a provision within the health care legislation to hold the State of Nebraska harmless from increased costs arising from the proposed Medicaid expansion. Taxpayers in all other states will be required to annually pay millions of dollars to offset increased Medicaid costs, without any rational basis for favoring Nebraska taxpayers over taxpayers in Tennessee or any other state.

     Expect legislation to be introduced this session called the "Health Care Choice Act" to allow Tennessee to join a reciprocal compact with other states so that citizens can purchase health insurance plans from companies in other states, a practice that is currently prohibited.  The Health Care Choice Act will expand the number of health care plans available for purchase from 127 in Tennessee to potentially more than 5,000 plans nationwide.  At least 5 other states have introduced similar legislation, including New Jersey, Colorado, West Virginia, Pennsylvania, and Washington. A bill introduced on the federal level also aims to allow states to enter into an interstate compact to sell health insurance over state lines.  

     There may also be a proposal to limit, alter or oppose selected state or federal actions, including single payer provisions and mandates that would require purchase of insurance.  At least 11 states have already seen legislation filed in opposition to certain health reforms associated with the plans pending in Congress.   

     Another bill pending in Congress that could have dire effects on both Tennessee consumers and the state’s ability to attract or retain jobs is the “Cap and Trade” bill.  Placing a fee on carbon being emitted into the atmosphere would effect Tennessee consumers in a wide variety of ways, from driving cars to burning coal to generate electricity.  Legislation was approved by the State Senate last year, but still awaits action in the House of Representatives expressing Tennessee’s opposition to the proposed federal carbon cap-and-trade system.   

     Over one-third of Tennessee’s manufacturing jobs have been lost to China and India, who are unlikely to join a global cap and trade agreement.  U.S. plants are three times more environmentally efficient than Asian manufacturing.  The cap and trade bill would cause the loss of Tennessee jobs and investment, while increasing greenhouse gases in countries that do not have the same restrictions.

 

      Jobs and economic development -- Most lawmakers agree that Tennessee must be aggressive in bringing new jobs to the state to weather the economic storm.  This includes making Tennessee a business-friendly state by holding down taxes and government red tape.  Senate Republicans have worked diligently to resist efforts to erode Tennessee’s business friendly status.  Expect Republican lawmakers to continue to defend the rights of small business owners against any further efforts to place government mandates on companies within our state boundaries.  

     Senate Republicans will be on the offense to address job growth in the state.  The state’s economic downturn and the rise in unemployment, provides legislators with serious financial challenges, but economic development and job creation will be a top priority of the upcoming legislative session.  Look for legislation to be introduced in the 2010 legislative session to expand an innovative new program sponsored by Republicans last session called TNInvestco.   

     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.

     In October, six investment firms were chosen to receive an allocation of $20 million dollars in gross premiums tax credits which will be marketed to insurance companies to create a pool of venture capital funds for investment in start-up and mid-stage companies in Tennessee.  Capital returned to the state through the program must first go to the General Fund.  Once enough money has been repaid, the remaining funds will be deposited in the Rural Opportunity Fund.  Two alternate investment firms are ready to participate in the program upon expansion.  

     The overwhelming majority of jobs in this state are created by small businesses.  That is why it is so important to encourage the growth of small businesses.  This new program provides a viable alternative for many companies to get the capital needed to grow and create jobs.  

Education reforms on front burner in 2010 legislative session

     Education reform will be on the front burner in the upcoming 2010 legislative session with a number of legislative recommendations coming from a blue ribbon panel studying ways to make Tennessee’s K-12 schools number one in the Southeast within five years.  The group, State Collaborative on Reforming Education (SCORE), was headed by former U.S. Senate Majority Leader Bill Frist and enlisted educational experts from selected think tanks, colleges and universities, as well as key government officials, business leaders, and representatives of the Tennessee Teacher Education Association.  Their report, entitled “A Roadmap to Success” lists 63 measurable steps to reform education in the state, some of which will need legislative approval this session.

     SCORE -- Tennessee currently ranks 41st in student achievement.  Only 63 of every 100 Tennessee ninth graders will graduate from high school, and only 17 will complete their college education within six years after graduating.  This is at a time when Tennessee students will not only have to compete against students in the Southeast region, but with those in China and India.

     Some of SCORE’s key recommendations will be taken up in the Special Session on Education.  Legislative recommendations coming from the SCORE Report will not to be “budget-breaker” initiatives that will cost the state tens upon millions of dollars.  It can begin by utilizing the resources the state already has and taps into private funding, like the Gates Foundation, to implement innovative new teaching strategies.

     The SCORE report recommendations are based on four key strategies:

    * Embrace High Standards
    * Cultivate Strong School Leaders
    * Ensure Excellent Teachers
    * Utilize Data to Enhance Student Learning

 

     The report calls for more rigorous assessments and higher academic standards to create a culture of high expectations.  It prescribes additional teacher support to elevate classroom instruction to meet those expectations, including the creation of professional learning communities where teachers can learn best practices.  In addition, the report recommends focusing on recruiting the best and brightest into teaching through teacher preparation programs and by expanding high-quality alternative licensure programs.   

     In order to retain the best teachers, the report recommended fundamentally rethinking our compensation systems to reward excellence. Similarly, to promote excellence in school leadership, the SCORE report calls for creation of a statewide leadership initiative focused on enhancing the scope and quality of existing leadership training programs.    

     The report recommends greater use of data, which it says should be used on a continual basis and managed in a way that allows educators to differentiate instruction and provide low-performing students with more time on task.   Technology is also the impetus behind the recommendation that the state identify low-cost ways to expand e-learning, dual enrollment, dual credit, early college high schools, advanced placement, and International Baccalaureate courses.  This will provide high school graduates more pathways for transitioning into the workplace or postsecondary education.

     These are just some of the concepts embraced in the recommendations presented in the report and that could be under legislative consideration in 2010.  SCORE is designed to jumpstart long-term educational change in Tennessee to ensure that every child graduates from high school prepared for college or a career.

     Education Budget – Keeping Tennessee’s education improvements moving forward will be a key concern this year as Tennessee struggles to make ends meet in the toughest economic year in recent history.  About $82 million would be needed to fund inflationary growth to the state’s $3.9 billion Basic Education Program, the state’s funding formula for K-12 schools.  The Basic Education Plan (BEP) received a major overhaul in 2007 in the way it disperses money to local governments.  The first year was a substantial down payment on the reformulation of the BEP at $290 to $295 million.  The Tennessee General Assembly intended to implement the second of several phases of BEP 2.0, Tennessee’s formula for funding K-12 schools in 2008 before the state finances began to decline.  It is unknown as to when the next installment will take place.

     In a budget proposal where deep cuts will be made in critical services, it will be very difficult for education to go unscathed.  Those programs singled out by Department of Education officials as possible areas for cuts are the Coordinated School Health Program and contracts paid to teachers under the Career Ladder program.

     Higher Education – Expect to see attention in higher education shift to improving graduation rates and student performance at the state’s colleges and universities, most of which will be discussed in the Special Session on Education.  Some lawmakers favor greater utilization of the state’s two-year colleges as a preferred point of entry for incoming freshman.  Enhancing the lottery scholarship funds received by students enrolling in these two-year colleges may be proposed to accomplish this task.  Expect efforts to remain on keeping the lottery scholarships promises already made to recipients of the grants.   

     Meanwhile, there has been some discussion regarding enhancement of the University of Tennessee at Knoxville’s status as the state’s “flagship” research institution.  All Tennessee’s colleges and universities have benefitted by the stimulus funds made available under the education provisions of the federal American Recovery and Reinvestment Act. However, that money, is set to expire in 2011 when the state’s colleges and university systems will be forced to cut about $250 million from their budgets.   

Anti-crime bills, DUI, immigration and Second Amendment rights bills set for discussion when General Assembly reconvenes

     Several anti-crime, drunk driving and immigration bills are set for discussion when the General Assembly reconvenes.  However, many of the measures will face very strict fiscal scrutiny based on the state’s weakened financial condition.  The state faces substantial budget cuts for the 2010-11 budget year, including a Bredesen Administration proposal to possibly release over 3,000 non-violent felons from the state’s prisons or county jails.   

     Sex Offender Registry -- Among issues still on the table from the last legislative session is one to place violent juvenile offenders on Tennessee’s Sex Offender Registry as required under the federal Adam Walsh Act.  This legislation, which would place offenders between the ages of 14 and 18 years of age on the Registry, would save governments across the state from losing millions of dollars in federal Byrnes grants.  The bill would apply to those 14 years old and older who are convicted of rape, aggravated rape, aggravated sexual battery, rape of a child and aggravated rape of a child.    

     Tennessee was awarded over $50 million in Byrne Grant funding last year, 10 percent of which could be in jeopardy unless the state adheres to these requirements.  The Walsh Act requirements had been scheduled to go into effect in 2009.  In June, U.S. Attorney General Anthony Holder signed a one year agreement to extend the deadline for states to comply with the Sex Offender Registration and Notification Act.  Only Ohio has complied with the law thus far.

     The Adam Walsh Act is the sweeping federal law, named after the murdered 6-year-old son of “America’s Most Wanted” host John Walsh, required states to adopt strict new standards for registering sex offenders and providing public information about their crimes and whereabouts. This included publishing photos and addresses of sex offenders online and toughening criminal penalties for those who fail to register, among other provisions.   

     Tennessee has made substantial progress at protecting children against child sexual predators over the past three years with passage of sweeping reforms of the state’s child sexual predator laws, exceeding the Walsh requirements in some areas effecting child sexual predators.  The Juvenile Registry is the final hurdle to bring the state into compliance with the Adam Walsh Act.  

     Protecting children – Several other bills protecting children are still pending action from last year.  One such bill would let law enforcement act more quickly to protect children from sexual predators using the Internet. The bill authorizes district attorneys general or assistant district attorneys general to issue a subpoena to require production of records related to the Internet or computer use in cases of sexual exploitation of a minor.  The bill would allow the prosecutor to subpoena the name, address, local and long distance connection records, length and types of service utilized, telephone number, and means of payment for the service.   

     Actor and child protection activists David Keith, spokesman for the National Association to Protect Children, told lawmakers the United States consumes more than 50 percent of the world market of that multi-billion dollar global industry.  Since 2005, more than 750,000 pedophiles have been identified by computer in the United States, with only two percent of those being investigated.   

     Second Look Commission – Another bill associated with the National Association to Protect Children that will be debated this year would 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.  Proponents say the bill is an important first step in understanding how the system fails endangered kids. The Commission would be administered through the state’s Administrative Office of the Courts (AOC).   

DUI legislation pending action in 2010 legislative session

     The legislature will come back this year to debate two key DUI bills that are pending action from the last legislative session.  One bill would ban open containers of alcohol in vehicles, while the other would require ignition interlock devices to be installed in automobiles driven by DUI offenders.     

     There were 3,356 drunk drivers arrested for drunk driving statewide in 2008 and 327 alcohol-related fatalities. About 37% of all traffic fatalities are DUI-related. It is the leading cause of death for people from 2 to 33 years old.

     Open Container Bill -- The open container bill addresses a loophole in Tennessee’s current law that allows drinking drivers to “pass the bottle” to a passenger if they get pulled over by law enforcement.  The full Senate approved the legislation in 2009, but the bill failed in a subcommittee in the House of Representatives, even though the bill contains language that exempts taxis, limos, and party buses.   

     The bill would have allowed the state to have control over $12 million in federal highway funds, which have been redirected due to non-compliance with federal safety requirements that includes a ban on open containers of alcohol in vehicles.  The transferred funds may be used only for alcohol-impaired driving countermeasures, enforcement of drunk driving laws, or hazard elimination programs.    

     The National Highway Safety Administration (NTSB) claims open container laws reduce the number of alcohol-related traffic fatalities by 5.1 percent.  Tennessee is one of only eleven states without an open container law.

     Ignition Interlock -- The NTSB has also urged passage of a more uniform and mandatory system for installation of interlock in Tennessee, which will likely garner continued legislative debate this year. Interlock devices are small pieces of equipment attached to the steering wheel of a car with a tube that the driver must breathe into in order to allow ignition to start. About one-third of all drivers arrested or convicted of driving while intoxicated are repeat offenders.

 
     The current alcohol ignition interlock technology makes it easier for courts to require drunk drivers to utilize the device.  The legislation is designed to help curb repeat offenses and get drunk drivers off Tennessee roads.

    

     DUI / Impact to Victims – Expect legislation to be debated this year calling for courts statewide to utilize a program providing that drunk drivers hear from victims of crime regarding the tragic negative consequences they have experienced due to a DUI or alcohol-related crash. The goal is to provide offenders with a clearer picture of the direct results of his/her choice to drink and drive.  

     Under such a program, the offender would be assigned to a local program upon being sentenced. It would then be up to the courts to take action against those who did not comply.

     According to the John Howard Society, some studies have shown that permitting victims to make statements and to give testimony is psychologically beneficial to them and aids in their recovery.  Several Tennessee counties already utilize a DUI program involving crime victims.  The legislation would expand such efforts statewide.

 

General Assembly will revisit Second Amendment rights bills

     Clarification / Restaurant Carry -- The General Assembly passed several bills during the 2009 legislative session that uphold the U.S. and Tennessee’s Constitutional right to bear arms.  Among Second Amendment rights bills approved in the last session of the General Assembly was a new law to allow law-abiding handgun permit holders to “carry” into restaurants serving alcohol as long as the owners of the premises have not posted notification that they are banned.  That bill, however, was struck down by Davidson County Chancellor Claudia Bonnyman, who said the law was ambiguous.  The state plans to appeal the decision which could take up to a year reach the court.

     In the meantime, legislation will be filed this year to address any “vagueness” in the new law as the Judge’s decision centered on that issue.  Look for the new legislation to have clarifying language, particularly as it applies to the posting of notices.   

     Privacy of information / permit holder database – Another gun bill which could come again before State Senators aims to protect the confidential information of handgun permit holders.  The proposal, SB 1126, would protect the confidential information by removing the handgun permit holders’ database from provisions of the state’s open records law.  Many citizens have been offended by the publication of the database by newspapers and media websites.  Permit holders fear criminals will use the information to target their homes to steal weapons, while those who do not own guns are worried about the risk of being identified as a home without a firearm.

 

Lawmakers to consider traffic camera proposals

     Lawmakers will consider several traffic camera proposals in the 2010 legislative session. The use of automated systems for surveillance of intersections and roadways is growing as more communities across the state are utilizing the devices.  

     Despite the testimony from law enforcement officials regarding the public safety aspect of utilizing the cameras, lawmakers say they receive regular complaints from constituents regarding their use. This includes violation of rights and that the motivation behind the cameras is money instead of safety.  Expect several bills regarding this issue to be debated this year in the General Assembly, from a direct ban on the cameras to restrictions on how the fines must be utilized.  Legislation has also been discussed forcing communities to display clearer signage and mandating that only companies headquartered in Tennessee be allowed to operate or process cameras or citations.

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