Week of July 1, 2009

Capitol Hill Week

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

Final Report on the 106th General Assembly
Budget highlights 2009 legislative session
Significant laws also passed this year on charter schools, job growth, and child protection

 (NASHVILLE, TN),  July 1, 2009  --   The 106th Tennessee General Assembly adjourned on June 18, 2009 to become a part of Tennessee history after passage of a $28.9 billion  budget in one of the toughest financial years in the state’s recent history.  By the end of the legislative session, the state had suffered a $1.2 billion loss in revenue and hit a 25-year high unemployment rate of 10.7 percent.  These were two of many factors making this year’s budget the most significant challenge of the 2009 legislative session, despite the influx of federal stimulus funds coming into Tennessee as a result of the American Recovery and Reinvestment Act. 

The General Assembly also passed a number of other significant bills before gaveling the 2009 session to a close, including a major charter schools bill, a revision of Tennessee’s judicial selection process, several job growth initiatives, a resolution giving voters a say in commonsense protections on abortion, legislation to restore Tennessean’s Second Amendment rights, numerous bills strengthening Tennessee’s child abuse laws and new laws cracking down on violent crime, to name a few.

Following is an alphabetical report on the issues acted upon during the 2009 legislative year:

   Abortion 

Abortion Resolution – The Senate voted 24 to 8 and the House voted 77 to 21 this year to give Tennesseans the opportunity to restore their voice in determining what state law should be regarding commonsense protections for abortions.  The resolution had passed the Senate for the last several years, but had been bottled up in a House Subcommittee until Republicans gained the majority.  The measure addresses a State Supreme Court decision in 2000 that struck down provisions in Tennessee law allowing women to receive “informed consent” information about the surgery and to wait 48 hours before they receive an abortion. The court also ruled against a state requirement that all abortions after the first trimester be performed in a hospital. That ruling made Tennessee more liberal than the U.S. Supreme Court required in Roe v. Wade and made the right to abortion a “fundamental right” in Tennessee.

The resolution would allow citizens to amend Tennessee's Constitution to say that the right to an abortion is only protected under the U.S. Constitution as interpreted by the U.S. Supreme Court.  It would give the people the right, through their elected state representatives and senators, to enact, amend, or repeal statutes regarding abortion, including circumstances of pregnancy resulting from rape, incest or life of the mother.  The practical effect of the legislation would be to bring Tennessee back into a position of neutrality so the people’s elected representatives can decide within the bounds of federal decisions what protections can be put into place.

The resolution must be approved again by a two-thirds majority in the next General Assembly before citizens could expect to see the resolution on the ballot in November 2014.  (STATUS:  SJR 127 / Passed and signed /  Sponsors:  Black, Gresham, Southerland, Crowe, Overbey, Faulk, Woodson, Yager, Stanley, Burchett, Beavers, Ketron, Tracy, Ramsey, Johnson, Norris, McNally, Watson, Henry, Bunch

Funds / Planned Parenthood – Legislation was also approved this year to ensure that family planning funds go to public women’s health service providers before private applicants are considered.  The bill comes after a video was released showing violation of state law by Planned Parenthood of Memphis, a private provider that receives public funds for family planning services.  The video showed a girl claiming to be 14 years old being advised by a Planned Parenthood employee to lie to court authorities regarding the alleged father of her child who the youth said was 31.  

Approximately $1.1 million in Title 10 funds are provided to Planned Parenthood for women’s health-related services like family planning, birth control, and exams.  Although current law bans the use of the money for abortion, the Title 10 funds supplement the organization’s operations, with Planned Parenthood being named in state law as a beneficiary, even though it is a private provider.  The legislation, which takes the name of Planned Parenthood out of Tennessee law, says you must exhaust other avenues in the public sector, like health departments, before moving to private providers for dispensing family planning money.  It is believed this action could bolster government-related health services like the public health departments or government-associated medical clinics that provide family planning services.  (STATUS:  SB 470 / HB 1756 / transmitted to gov. 6/22  /  DOE:  January 1, 2010)  Sponsors:  Johnson, Gresham, Beavers, Stanley and Norris

  Animals / Agriculture / Property Rights

Farmers / Limited Liability  – On farm legislation approved this year, the General Assembly voted to give limited immunity to farmers who participate in “agritourism.”  The legislation applies limited liability immunity for events like a “pumpkin patch” or “corn mazing” that farmers may want to have on their property.  The measure requires the farmer to post and maintain a sign that warns persons of this bill's limitation on liability.  (STATUS:  SB 2164 / HB 1931 / signed by gov 6/23  / DOE:  July 1, 2009)  Sponsor:  Tracy, Bunch, Burks, Gresham, Overbey, Ford, O., Crowe, Faulk, Southerland, Black    

Raw milk – Another bill that passed this year impacting farmers is one that allows owners’ use of raw milk for personal consumption.  (STATUS:   SB 1114, HB 720 /  PC 285 /DOE: UBL) Sponsor:  Faulk, Burks

Trespassing – Two bills dealing with landowners and their responsibility when trespassers come onto their property were approved this legislative session.  One bill amends Tennessee’s criminal trespass law to shift the burden from individual property owners to the alleged trespassers.  Before, Tennessee law required extensive posting and signage, putting the burden on the landowner.  This bill shifts that burden to the individual who will be required to know if he/she has permission to be on the land.  Farmland can prove to be especially difficult to post, and this bill will protect farmers to ensure that trespassers are held accountable for their actions.  (STATUS:  SB 679 / HB 714 / signed by gov 6/25 / DOE:  July 1, 2009) sponsor:  Woodson, Gresham, Burks, Berke, Stewart

The second bill addresses problems experienced by landowners and farmers where ATV riders or others have trespassed on private property.  Before, if a trespasser was harmed by a dangerous condition created by a force of nature, like a ditch produced by heavy rainfall, the landowner could be responsible regardless of whether or not the person harmed was invited.  This legislation seeks to remedy that action by protecting landowners when the condition is one created by natural forces.  (STATUS:  SB 2102 / HB 2109 / transmitted to gov 6/30 / DOE:  July 1, 2009)  sponsor:  Watson, Burks 

  Budget

With less than two weeks before the new fiscal year began, state lawmakers passed a $28.9 billion budget for 2009-2010, excluding bonds.   The budget initiates the first step in reducing over $1.2 billion in state funding from the budget by identifying over $750 million in reductions, but uses one-time funds to minimize the first year reduction to only $240 million.  The funds were available due to the American Recovery and Reinvestment Act (federal stimulus funds) which will send over $4.5 billion into Tennessee over a two-year period that began in February.    

Although the stimulus money helped to soften the blow of cuts by boosting spending in targeted state programs temporarily, some funds also came with mandates for change in Tennessee law in order to access the federal dollars.  About $1 billion of the money is being used to buffer the drastic drop in state revenues.  Most of the money will simply pass through the state as it is earmarked for increasing aid to such programs as food stamps, public housing, energy initiatives, education and road and bridge infrastructure.    

Senate Republicans worked diligently to help Tennessee chart a better course to balance the budget on a recurring basis after the stimulus money dries up in 2011.  Before adjourning, lawmakers amended the governor’s budget to pass one that better plans for difficult economic times, borrows less, has more protection for the Rainy Day (savings) Fund and is closer to balancing recurring and nonrecurring expenditures. 

Moving towards a fiscally sound budget -- Senate Republicans also worked to reduce the overall budget by $40 million and won passage of several other fiscally sound provisions adopted in the final version of the bill.  This includes calling for the impoundment of $55 million in case the state falls short of estimates at the close of the 2008-2009 budget year.  The provision calls for the governor to identify reductions if revenues fall short and to utilize those impounded funds so the state can close the books without having to dig deeper into the Rainy Day Fund.  The Rainy Day Fund will be essential next year after the federal stimulus money dries up and if economic conditions worsen. 

Bonds -- On bonds, the governor had asked the legislature to authorize $350 million in bonds for bridge work and repair this year.  Senate Republicans won approval of a much more cautious approach to the bond authorization as reflected in a provision to incur only one-forth of those bonds this year.  The portion, which is $87.5 million, would only occur if there are not additional highway flex stimulus funds available.  If stimulus money is available, the bond authorization would be cancelled under the bill.  The General Assembly will take a year-to-year approach to phasing in the remainder of the four-year bond authorization to make sure the revenues are sufficient each year to pay for the bond plan.  (STATUS:  Bond Bill / SB 2358 / HB 2390 / signed by gov 6/25 / DOE:  upon becoming law)  Sponsor:  Kyle

Senate Republicans also made sure that language was placed into the bill requiring legislative oversight of any budget expansion requests.  This will assure federal stimulus dollars coming into the state have the appropriate legislative checks and balances required by the state’s Constitution. 

It has been the practice in recent years that when the General Assembly is out of session expansion requests, also called supplemental appropriations, are recognized and acknowledged through a signature of the Senate and House Finance Committee Chairmen and sent back to the administration which dispenses the funds.  New language included in the bill takes the next step in the direction of clarifying a better procedure and is in accordance with the Constitutional requirement. 

Another change implemented by Senate Republicans requires the administration to notify each entity receiving non-recurring money in writing that their funds will expire in 2009-2010 or the subsequent year.  The notification gives the appropriate notice to those entities receiving non-recurring money that they need to seek alternative funding in future years.

Restoration of funds for vulnerable -- Other budget provisions included in the bill, as amended, adds back $5 million in support grants for mental health, $10 million for Mental Health Safety Net activities, $4.9 million in grants for the coordinated school health program and $4.5 million more for the Department of Children's Services to help dependent and neglected children. 

The 2009-10 budget prioritizes education by fully funding the Basic Education Program, the state’s funding formula for K-12 education.  Tennessee’s Pre-K program will be funded at its same level, under the plan.  It also funds Tennessee’s higher education at the highest level of funding to draw down approximately $500 million in federal stimulus available through the American Recovery and Reinvestment Act.  In addition, it funds lottery scholarships at the same level, despite the economic downturn, to provide students with the opportunity to receive a college education.
 
Key budget points -- On job growth, the legislation provides funds for economic development projects set to establish manufacturing facilities in the state including $262 million for Volkswagen and Hemlock, as well as $56.9 million for Wacker infrastructure.  It provides $27.3 million for the Haywood County megasite and Solar Farm in West Tennessee.

Other highlights and details of the budget include:

Taxes -- The total budget plan, as amended by Senate Republicans, cut several of the governor’s proposed tax hikes, including one on cable television boxes and a measure to increase taxes on business phone rates, as well as curtailing the impact of a tax on family-owned limited liability corporations (FONCEs).  These are certain family-owned limited liability corporations and partnerships that derive passive income through commercial property.   Senate Republicans fought to help small business owners by making sure these family-owned partnerships receiving rental income from residential rental property will continue to qualify for the FONCE exemption, provided the property has no more than four residential units (a quadplex). 

The governor’s budget included a plan that was approved this year to raise premium taxes on Health Maintenance Organizations (HMOs) to draw enough in federal matching funds to avoid a $300 million cut to TennCare.  Approximately 85 percent of income received by HMOs in Tennessee comes from TennCare.  The administration maintains that the $136.6 million raised by increasing the tax would benefit the HMOs due to increased TennCare funding that would be gained under federal matching funds.  (STATUS:  SB 2357 / HB 2389 / signed by gov 6/25 / DOE:  July 1, 2009)  sponsor:  Kyle  (STATUS:  SB 2318 / HB 2275 / signed by gov 6/25 / DOE:  upon becoming law)  sponsor:  Kyle

Finally, the Bredesen Administration won passage of legislation increasing unemployment insurance by raising the taxable wage base to $9,000 from $7,000 and adopting a 0.6 percent premium charge.   The law contains triggers for higher premiums when the state’s unemployment funds go down to insure solvency. 

With unemployment at 10.7 percent as of June, there is a tremendous increase in benefit claims that threaten the solvency of the state’s Unemployment Fund by the fourth quarter of 2009 if no action were taken.  Insolvency would have meant federal control of the state’s fund, meaning Washington could dictate future tax rates and wage base thresholds unless Tennessee took action to shore up the fund.  It would have also meant mandatory borrowing with interest from the federal government that could have cost businesses much more in the long run, according to the administration.

  Children

The 2009 legislative session included passage of some of the most significant legislation in recent years aimed at protecting children.  The bills approved this year ranged from boosting the state’s ability to provide a stable home environment for children in state custody to strengthening Tennessee’s child abuse laws, as well as tightening laws against child sexual predators.
 
Children in State Custody  / Post Adoption Services -- Legislation that aims to improve Tennessee’s success rate in adopting children who were previously in state custody was approved during the 2009 legislative session.  The bill clarifies state law to provide post-adoption services for child welfare adoptions.

The bill applies to adoptions when children have been taken into state custody for being unruly or delinquent and parental rights from the biological parents have been terminated.  These are some of the most difficult adoption placements for the Department of Children’s Services.  However, the rate of success improves if post-adoption services are offered.  A few of the services include crisis intervention, family and individual counseling, support groups for parents and children, case management services, and networking of families and community providers.

Tennessee beats the national average on child adoption placements.  This legislation makes sure that services are available to provide a healthier atmosphere for both the child and adoptive parents.  (STATUS:  SB 1702 / HB 1629 / signed by gov 6/25 /  Sponsors:  Overbey, Barnes, Beavers, Berke, Black, Bunch, Burchett, Burks, Crowe, Faulk, Finney L, Ford, O., Gresham, Harper, Haynes, Henry, Herron, Jackson, Johnson, Ketron, Kyle, Marrero B, McNally, Norris, Ramsey, Southerland, Stanley, Stewart, Tate, Tracy, Watson, Woodson, Yager / July 1, 2009

Relative Caregivers / temporary guardian – Legislation was approved this year that allows a relative caregiver to go to court and be named temporary guardian in cases where a child has been abandoned by their parents.  Previously, parents could come back and take a child from a relative caregiver regardless of whether or not the child had been abandoned repeatedly.  The bill is designed to give greater stability for a child whose parent has abandoned them to a relative caregiver, provided the court agrees that it is in the child’s best interests.  (STATUS:  SB 859 / HB 327 / PC 411 / DOE:  July 1, 2009) sponsor:  Black, Burks, Marrero

Foster parent’s rights – Legislation passed in 2009 to create a system in which foster parents can report failure of the Department of Children’s Services and its employees to abide by the tenants of the state’s Foster Parent Rights.  The bill establishes a grievance procedure so foster parents can give and receive information up the chain of command about children in their care, if they feel these rights are not adhered to.  STATUS:  SB 855 / HB 351 / PC 270 / DOE:  July 1, 2009)  sponsors:  Black, Marrero, Burks

  Children / Crime

Child Abuse and Neglect -- The Tennessee General Assembly has made improvements to the state’s child abuse laws over the last several years.  Legislation approved this year continues those efforts by giving prosecutors the tools they need successfully to prosecute this horrible crime and end what too often becomes a cycle of violence. 

Nationwide, four kids die everyday from child abuse, a reality which prompted child the legislature to declare April as Child Abuse Prevention month.  In Tennessee, the state’s Department of Children's Services responds to 37,000 reports of child abuse or neglect annually. This is one of the reasons that Tennessee ranked 42nd out of 50 states last year for overall well-being for children. 

Serious bodily injury – Legislation was approved in 2009 that adds specificity to what constitutes serious bodily injury in children, including second or third degree burns, a fracture of any bone, a concussion, subdural or subarachnoid bleeding, retinal hemorrhage, cerebral edema, brain contusion, injuries to the skin that involve severe bruising or the likelihood of permanent or protracted disfigurement sustained by whipping children with objects.  Previously, Tennessee’s law lacked a clear definition for the types of serious bodily injuries typically seen in child abuse, leaving it open to the same interpretation applied to cases involving adults.  Virtually all blunt head trauma to children, especially very young children, involves forces that have a high likelihood for causing permanent injury.  However, many times these injuries show up later as a result of no medical intervention being taken at the time of the abuse. 
Very young children often cannot describe pain associated with a child abuse injury.  For example, a child may have evidence of bleeding on the brain from being shaken but may not show serious neurological impairment upon a general medical evaluation.  Similarly, fracture injuries to children often result in no medical intervention.  Arguments have been made by the defense that such injuries do not constitute serious bodily injury because no treatment was required or that it did not affect the child’s mobility.  This bill addresses this situation to provide fairness for these young and vulnerable victims.   (STATUS:  SB 866 / HB 1142 / PC 88  / DOE:  July 1, 2009)  Sponsors:  Black, Marrero

Child abuse and neglect  / victim’s age – Legislation passed this year to increase the minimum age of the Class D felony offense of child abuse and child neglect or endangerment from six to eight years or age or younger.   Previously, it was an enhancement to Tennessee's child abuse and child neglect law if the victim is six years of age or less. This bill enhances penalties against those who commit child abuse and child neglect in cases where the victim is eight year old or younger.

This legislation protects children by making sure their abusers are kept behind bars for a longer period of time.  STATUS:  SB 1531 / HB 1261 / transmitted to gov 6/30 /  DOE:  July 1, 2009)  Sponsors:  Burchett, Black, Finney L, Marrero B, Yager

Child Mortality – The General Assembly has passed a new law which clarifies the meaning of “near fatality” to allow the state to track the number of serious or critical medical conditions that result from child abuse or child sexual abuse.  Federal legislation calls for the tracking of near fatalities in child abuse cases for reporting purposes.  This legislation adopts that language defining near fatality as a “serious medical condition or injury as reported by a physician” so that there is full disclosure.  (SB 810 / HB 326 / PC 86 / DOE:  July 1, 2009)  Sponsors:  Overbey, Black, Burks, Marrero

Child Abuse / Dangerous Instrumentality -- Another bill which was approved by the legislature this year seeks to strengthen Tennessee’s child abuse laws by adding definitions to give prosecutors more tools to put abusers in jail.    Previously, there was no definition for what constitutes a “dangerous instrumentality” in a child abuse case.  This left interpretation open to weapons generally used in adult cases like a gun or knife, despite the fact a young child can be seriously injured with objects like an extension cord.  The new law provides a definition for dangerous instrumentality that includes any item capable of producing serious bodily injury to a child.  (STATUS:  SB 867 / HB 1141 / PC 89 / DOE: July 1, 2009)  Sponsors:  Black, Marrero

Sex Offenders / areas frequented by children -- -- Legislation prohibiting sex offenders from being or remaining within 1,000 feet of certain places where children are likely to gather has passed.  The new law, which aims to strengthen Tennessee’s laws to protect Tennessee children from sex offenders, applies to schools, licensed day care centers, child care facilities, public parks, playgrounds, recreation centers or athletic fields when children under age 18 are present.  

Current law sets a parameter of 500 feet as the distance sex offenders are prohibited from going near school property.  This legislation expands that distance to 1,000 feet, and adds other places where children are likely to gather.   

The bill also removes an exception that previously allowed sex offenders to be present on school property during school hours if they are making deliveries.  (STATUS:  SB 511 / HB 1120 / transmitted to gov 6/30  / DOE:  July 1, 2009) Sponsor:  Woodson, Burchett, Black, Haynes, Burks

Child Abuse / Courts -- Another bill approved by state lawmakers this year addressing child abuse provides General Sessions, Circuit and Criminal Courts concurrent jurisdiction with Juvenile Courts over prosecutions of child abuse, neglect and endangerment offenses.  The legislation is designed to allow a court to act more swiftly to provide protection for endangered kids.

Before, exclusive jurisdiction in child abuse cases was vested in Juvenile Court.  This legislation retains jurisdiction in juvenile court, but allows the prosecutors the discretion to bring the case to another court which might be more appropriate to the crime or that might be able to hear the case quicker.    (STATUS:  SB 1530  / HB 1260  / PC 335  / DOE: July 1, 2009 )  Sponsor:  Burchett, Finney L, Ketron, Burks, Ford

Child Abuse / Videotaped Interviews -- In other action this year, the legislature gave final approval to a bill to allow videotaped interviews of abused children conducted by a forensic interviewer to be admissible in court.  Any time a charge of child sexual abuse comes up the child is brought to a Child Advocacy Center to be interviewed on videotape by a forensic interviewer, a licensed professional who is trained to interview children regarding the alleged abuse.  This bill defines forensic interviewer and the circumstances upon which those tapes would be admissible in a court of law.  (STATUS:  SB 312 / HB 619 /  PC 413 / DOE:  July 1, 2009)  Sponsors:  Black, Gresham, Burks, Finney 

Missing Children / Prompt Action -- The General Assembly has approved legislation requiring law enforcement agencies to enter information into the NCIC (National Crime Information Center) database within two hours of receipt of a report of a missing child.  The bill brings Tennessee into compliance with the Adam Walsh Act which was signed into law in 2006. 
 
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, that 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 made several changes to comply with the law last year.  The states must comply with provisions of the act by 2009 or risk facing a 10 percent cut to their share of funds in a congressional grant program used to fight crime.

The legislation makes sure that Tennessee is acting quickly to enter the needed information to alert law enforcement of a missing child.  It is hoped that this measure will help bring these children home quicker.

A report to the NCIC system does not automatically trigger an Amber Alert, which has a much higher standard of urgency before it is broadcast.  (STATUS:  SB 110  / HB 483 / PC 76 / DOE:  upon becoming law)  Sponsors:  Black, Burks, Ford

Sex Offenders / Violation of Parole -- The legislature has approved a measure to establish venue for a violation of supervision of a sex offender in the county where they were being supervised.  The bill makes sure that if a sex offender violates the conditions of their parole, that valuable time and money are not spent by sending law enforcement to another locality where the violation took place and that the violator can be returned back to where they were being supervised for further court action.   (STATUS:  SB 284 / HB 623 /  PC 115 / DOE:  July 1, 2009) Sponsor:  Black, Ford

  Consumers

Consumers benefited from several bills approved by the General Assembly this year on a wide variety of matters.  Following are some of the key bills passed during the 2009 legislative session. 
 
Consumer Protection / Pharmacy -- Legislation was approved by the General Assembly this year addressing two important problems related to patients understanding their pharmacy benefits and cost of their prescriptions.  Currently, pharmacies are often prohibited by language in provider contracts from telling patients what the pharmacy is being paid for their prescriptions, which prevents patients from knowing the real costs.  The legislation, called the “Patient’s Right to Prescription Transparency Act of 2009,” prevents a health plan or Pharmacy Benefit Management Company (PBM) from restricting or prohibiting a pharmacy from giving the patient information regarding actual reimbursement.  It also defines that percentage based co-pays be calculated based on the total prescription price the plan agrees to pay to the pharmacy.  (STATUS:  SB 774 / HB 110 / PC 355 )  Sponsor:  Overbey, Burks / DOE:  January 1, 2010

Auto Consumers / Dealers – Consumers and automobile dealers would be protected under legislation passed by the State Legislature this year.  The new law helps to ensure that monies paid or obligations owed are fulfilled in the event of a car manufacturer’s bankruptcy.  It also ensures there are uninterrupted warranty repairs or maintenance for Tennessee consumers in cases of manufacturer bankruptcy.  Finally, it protects consumer rights under the Tennessee Lemon Law and ensures obligations owed to dealers for customer rebates, employee buy-out vouchers, and warranty repair payments are paid.   (STATUS:  SB 516 / HB 1751 /  PC 322  / DOE:  upon becoming law May 28, 2009) / Sponsors:  Kyle, McNally, Overbey, Burchett, Bunch, Yager, Woodson, Berke, Marrero, Harper, Barnes, Crowe and Mr. Speaker Ramsey)

Debt Management Services – State lawmakers have approved comprehensive legislation benefitting Tennessee consumers who utilize the services of debt management specialists.  The legislation, named the Uniform Debt Management Services Act, provides guidance and regulation to the consumer debt management industry, while also providing fairer services to debtors. 

Congress passed bankruptcy reform legislation in 2005 mandating counseling by a private agency before an individual may enter into bankruptcy.  Debt settlement is the option that lies on the continuum between credit counseling and bankruptcy.  It is most often used by consumers who may not qualify for credit counseling or who do not qualify under the new rules of bankruptcy or prefer to honor their debts to the best of their ability, rather than declare bankruptcy.  Their services primarily include negotiating a reduction of the consumer’s non-secured consumer debts in exchange for a faster repayment plan.

The legislation requires a debt management company in Tennessee to obtain a license and supply information about their practices, fees, educational materials and employee qualifications.  A company must also post a surety bond or another security to safeguard any money that it receives from individuals for payment of creditors.  In addition, the debt management company must provide a disclosure to consumers that this may not be the best option for them and that it may affect their credit rating. 

The new act gives the Department of Commerce the right to take enforcement action against anyone who violates the act.  It also creates a consumer right of action and treble damages for certain circumstances involving abuse.  STATUS:  SB 812 / HB 1278 / PC 469  / DOE:  July 1, 2010) Sponsor:  Overbey, Marrero

Foreclosure scams  -- Legislation to protect consumers who are in danger of losing their homes from being scammed by an unscrupulous foreclosure rescue company has been approved this year.  The new law requires a written agreement between the homeowner and a for-profit mortgage rescue consultant and gives the consumer the right to cancel it within three business days after signing.  It also bans the collection of fees by a foreclosure rescue consultant until a written agreement between the parties has been fulfilled. 

The legislation seeks to ensure that people who are going through this very hard situation are not preyed upon by scam artists.   (STATUS:  SB 1763 / HB 2218 /  PC 198 /  DOE: upon becoming law)   sponsors:  Herron, Marrero, Harper, Barnes, Burks  

Market Regulation Act – A new law passed this year will modernize state telecommunications policy and promote more competition and choice for Tennessee consumers.  The measure allows existing traditional telephone providers to opt into “Market Regulation” so they will be treated on the same terms as their competitors in the cable, wireless and Internet telephone companies.

When Tennessee lawmakers rewrote the state’s telecommunications law in 1995, they retained regulations on existing telephone providers.  Since then, new telecommunications companies have emerged using technologies that did not exist when the law was written and that are not under the same regulations as traditional phone companies.   

Under this legislation, called the “Market Regulation Act of 2009,” the TRA will continue to regulate wholesale telecommunications in Tennessee for market regulated companies.  It also keeps in place government support programs such as the Lifeline to assist seniors and low income consumers.  Consumers would continue to have a variety of alternatives for resolving complaints regarding phone rates.  However, sponsors feel that the increased competition will keep companies from raising rates as they vie to attract and retain customers.  In addition, the legislation includes language to assure there will be no rate hikes in rural areas for at least one year.

Similar market regulation legislation has passed in other states, including Alabama, Mississippi, Indiana, Nevada and Missouri; and is currently pending in South Carolina, North Carolina, Georgia and Florida.   (STATUS:  SB 1965 / HB 1698 / PC 278 / DOE:  upon becoming law)  sponsors:  Stanley, Stewart, Beavers, Burchett, Ketron, Harper, Johnson, Tracy, Norris, Tate, Ford

Electric coops – Finally, the Legislature passed a new law this year to allow municipal and rural electric companies to join together to provide electric generating capacity to consumers.  Currently they can only provide those services separately.  The measure gives the localities the flexibility to form a cooperative so they can provide wholesale electric power and energy services to customers.  (STATUS:  SB 1089 / HB 1518 / PC 475 / DOE:  upon becoming law) sponsor:  McNally, Burks

  Court System

Judicial Selection – Legislation that revises the method for selecting the state’s appellate and Supreme Court Judges was approved this year after spirited debate on the matter.  The action came just before the Judicial Selection Commission, a component of Tennessee’s previous plan for appointing judges, was set to expire.  Under the previous system, the commission that nominates judges was selected from lists submitted by various legal organizations to the Speakers of the House and Senate and governor.

The new law sets up a new Nominating Commission with fewer attorney members and less special interest input.  It provides for a 17-member Judicial Nominating Commission that would have at least 10 attorney members, rather than the previous system that is dominated by legal profession.  In addition, it bans lobbyists or employers of lobbyists from serving on the Nominating Commission to curtail special interest input. 

After reviewing nominees, the Commission sends the governor a panel of three nominees for consideration.  The governor must then appoint one of the nominees or reject the panel and request a second panel.  After being appointed through this process, the judges will continue to stand for approval by the voters who will decide whether or not to "retain" or "replace" them.  Currently, citizens vote “yes” or “no” on the ballot regarding the retention of judges. 

If voters decide to replace a judge, an interim judge would be appointed by the governor until the next election.  At that point, the people could decide who will fill the slot through a popular election, which is the same process by which the state’s trial judges are currently selected. 

Finally, the legislation provides public access to every aspect of the nominating process.  

Tennessee’s Constitution says judges must be “elected by the qualified voters of the state.”  The debate on the bill this year focused on whether or not the selection process with a retention vote meets that test.  A separate bill failed to get out of committee that would have called for a Constitutional Convention to let the people decide whether or not they want to popularly elect the judges or opt to continue a nomination system process followed by a retention vote. (STATUS:  SB 1573 / HB 1448  / signed by gov 6/25)  Sponsors:  Woodson, Haynes, Overbey   

  Crime / Victims / Burglary / Domestic Violence

Victims of Crime / Notification -- Legislation to provide funding for a program that gives victims of crime notification regarding any change in status of the offender has become law as a result of action taken during the 2009 legislative session.   The bill creates the Statewide Automated Victim Information and Notification System Fund by adding a $1 litigation tax on all criminal charges.  The purpose of this statewide automated victims program is to increase the safety of victims of crime by providing access to timely and reliable information about the custody status of offenders in county jails.  This system is operable 24 hours a day over the telephone, through the Internet, or by email. 

Before, 56 counties in Tennessee participate in the Statewide Automated Victim’s Notification Program, known as VINE.  Another 19 counties were expected to join the program by the end of the year, to boost the total number of participating counties to 75.  However, federal grants that provided funding for the program are set to expire.  This legislation would raise the necessary funds to keep the program up and running and expand its scope to more Tennessee counties.

Victims of a crime or other concerned citizens can register to be notified immediately in the event of an offender’s release, transfer or escape through the program.   (STATUS:  SB 1684 / HB 1430 / PC 488  / DOE:  July 1, 2009)  Sponsor:  Ketron, Burks, Jackson, Ford, Harper, Herron, Norris, Marrero, Black

Victims of crime / Personal Identifying Information – Victims of crime are also the focus of another bill approved this year which keeps the personal contact information of crime victims participating in the Criminal Injuries Compensation Fund confidential.  The legislation keeps the address, telephone number, social security number and the criminal offense from which the victim is receiving compensation closed from public inspection to protect the victim from the perpetrator or others who might seek revenge.

The Victim’s Compensation Fund provides financial help in cases where a crime victim sustains bodily injury or death as a direct result of a violent crime.  (STATUS:  SB 880 / HB  1247 / PC 328 / DOE:  upon becoming law)  Sponsors:  Ketron, Burks

Crime / Shoplifters -- The General Assembly has approved a new law to create a new Class A misdemeanor criminal offense for possession of shoplifting tools used to disable store security systems.  The legislation comes after malls in Tennessee have seen a large increase in a product that is used to line shopping bags that allow criminals to take thousands of dollars of merchandise without setting off store alarm systems.  (STATUS:  SB 437  / HB 748 / PC 83 / DOE:  July 1, 2009)  Sponsor:  Overbey 

Escape from police custody -- Legislation that strengthens penalties against those who escape arrest has become law as a result of legislative action this session.  The bill provides that a person commits the offense of escape if they knowingly flee the lawful custody of a law enforcement officer. A violation of this bill would be a Class A misdemeanor regardless of whether the person was being held for a misdemeanor, civil offense, or felony.    (STATUS:  SB 388 / HB 522 / PC 241 /  DOE:  July 1, 2009)  Sponsors:  Gresham, Overbey

Strengthening Crooks with Guns law -- The final day of the legislative session included approval of major legislation cracking down on violent crime in Tennessee that builds on the “Crooks with Guns Law” passed during the last General Assembly.  The bill adds attempted first degree murder to the Crooks with Guns Law. 

Tennessee ranks second in the nation in the number of violent crimes.  The legislation would work to keep those offenders off the street where they are no longer a danger to the public.  Sixty-seven percent of those convicted of violent crimes are re-arrested within three years of being released from prison.  The recidivism rate increases to 80 percent when you move past that three-year marker.

The bill adds a minimum of three years to the sentence of a violator who possesses a firearm during the commission of attempted first-degree murder, to be served after the underlying offense.  If a violator possesses a firearm during the commission of the attempted first-degree murder and has a prior felony conviction, then a mandatory minimum of five years would be added to the sentence. 

In addition, if a violator possesses a firearm during the commission or an attempt to commit a dangerous felony or attempting to escape, then a mandatory minimum of six years is added to the sentence to be served after the underlying offense.  A prior felony conviction from this would add 10 years onto the sentence. 

The original “Crooks with Guns” legislation made it an additional offense to be armed with a firearm when committing a list of dangerous felonies like aggravated and especially aggravated kidnapping, burglary, stalking, carjacking, voluntary manslaughter, and certain drug crimes.   (STATUS:  SB 672 / HB 706 / transmitted to gov 6/30  /  DOE:  January 1, 2009)  Sponsors:  Norris, Overbey, Marrero, Burks, Black
 
Burglary -- Similarly, the General Assembly approved a bill aimed at keeping repeat violent criminals convicted of aggravated burglary behind bars longer by counting each felony committed within a 24-hour period as a separate offense.  

Before, with few exceptions, felonies committed within a 24-hour period constitute one conviction for the purpose of determining prior convictions by the court.  This bill requires all aggravated burglaries a defendant commits within a 24-hour period to be counted as separate prior convictions for purposes of determining whether the defendant is a multiple, persistent, or career offender under the Criminal Sentencing Reform Act.  (STATUS:  SB 2115 / HB 2193 / transmitted to gov 6/30   / DOE:  July 1, 2009), Sponsors:   Norris, Overbey, Burks, Black, Yager

Money laundering – Lawmakers have approved legislation that allows a court to take the ill-gotten gains of criminals who are convicted under Tennessee’s money laundering law.  The bill defines the term “proceeds” of the criminal activity as interpreted by the U.S. Supreme Court in the decision U.S. v. Santos.

Before, Tennessee law did not provide for a definition in accordance with the U.S. Supreme Court’s Santos decision that would allow for law enforcement to go after the gross proceeds of ill-gotten gains of criminals who are convicted of laundering money.  This bill cures that problem by defining the term “proceeds” and “gross proceeds” used under the law, so that criminals cannot keep assets gained by their illegal activities and can be prosecuted to the full extent of the law.  The legislation defines “proceeds” to include “gross proceeds” to make it a crime to engage in a financial transaction of certain specified unlawful activities with the intent to promote those activities or to conceal the proceeds.  The proceeds include any real, personal or intangible property of any kind connected to the illegal activity.

The Santos case involved the conviction in Indiana federal court of running an illegal gambling business and money laundering. Because Santos’s conviction was based on evidence that he used gross receipts, not profits, to promote his gambling ring, the District Court overturned his money laundering conviction, which was later upheld by the U.S. Supreme Court.  The court ruling meant that to prove money laundering, the government is required to show that profits from the underlying illegal activity were used to further promote or conceal that activity.  (STATUS:  SB 784 / HB  590 / PC 386 / DOE:  July 1, 2009) sponsor: Overbey

Domestic Violence – The State Senate approved two bills this year dealing with domestic violence.  One bill provides for a tenth court to hear domestic violence cases in Shelby County.  (STATUS:  SB 1094 / HB 1212 / PC 391 / DOE:  upon becoming law) sponsors:  Stanley, Marrero, Ford 

The second bill sets forth a process for surrender of a firearm in cases where an order of protection has been granted in domestic violence cases.   The legislation aims to prevent an act of violence by setting up a procedure for the person to hand the gun over to a third party.   The possession of a firearm while under an order of protection is an offense under federal law.  (STATUS:  SB 314 / HB 1225 / PC 455 / DOE:  July 1, 2009)  sponsors:  Black, Harper, Marerro, Burks, Finney

  Crime / DUI

Selling to intoxicated persons -- The State Senate approved legislation during the 2009 legislative session clarifying Tennessee law to make it easier for District Attorneys in the state to prosecute irresponsible businesses that serve alcohol to a person who is “visibly” intoxicated.  The new law will also make it easier for a person who is injured by a drunk driver to recover damages.

The legislation works in concert with another bill passed this year to clarify three different criminal statutes dealing with selling alcoholic beverages to intoxicated persons. 

The Alcoholic Beverage Commission already has a definition for “visibly intoxicated” that would be the standard under the two bills passed this year.  The Commission is responsible for providing the course needed before a server can serve alcohol.  (STATUS:  SB 1939 / HB 1579 / PC 492 / DOE:  upon becoming law)  sponsor:   Faulk    (STATUS:  SB 1947 / HB 1580 / PC 208  / DOE:  July 1, 2009)  sponsor:  Faulk

Similarly, adults who knowingly allow youths aged 18 to 21 to drink alcoholic beverages could be prosecuted under a law that was approved by State Senators in the 2009 legislative session.  The bill closes a loophole in the current law regarding underage drinking by applying it to all youths banned from consuming alcohol under Tennessee law.  (STATUS:  SB 38 / HB 250 / Transmitted to gov. 6/19 / DOE: July 1, 2009)  sponsors:  Tracy, Ketron, Faulk, Yager, Bunch, Burks

DUI –  Legislation was approved this year that requires the testing of a driver’s blood alcohol content level in cases where there is serious bodily injury to a victim or death.  The legislation calls for the test to be performed whether or not the driver consents.  Presently, only drivers where a death is involved are required to be tested.  This legislation extends that requirement in cases where a victim is seriously injured and the law enforcement official has probable cause to believe that the driver has committed the offense of vehicular assault. The test results may be offered into evidence, subject to the rules of evidence.  (STATUS:  SB 534 / HB 355 / PC 324 / DOE:  July 1, 2009) sponsors:  McNally, Faulk, Burks 

  Economic Development and Jobs

Economic Development / Hemlock  and Volkswagen – Legislation was approved early in the legislative session authorizing the state to issue $262 million in bonds to fund grants for infrastructure for Wacker and Volkswagen in Montgomery and Hamilton Counties.  Volkswagen is planning to make an initial $1 billion investment in Chattanooga, while Hemlock plans to invest $1.2 billion in Clarksville.  The new Volkswagen plant means more than 2,000 new jobs in Tennessee, just in the plant itself.  It is also expected to create more jobs in the region due to vendor businesses that will also locate here as a result of the plant.  Hemlock is expected to create 500 new jobs, with the potential of employing up to 900 people within five to seven years.    (STATUS:  SB 315 / HB 421 / PC 3 / DOE:  effective upon becoming law, March 2, 2009)  Sponsor:  Kyle, Watson, Barnes, Berke, Ford

Megasite / West Tennessee -- Legislation that enhances the prospects of bringing new industry to West Tennessee met approval in this year’s legislative session.  The bill makes numerous changes to the Tennessee Regional Megasite Authority Act of 2007, including the ability for authorities to purchase nearby property to be included in the megasite zone.  This provision means a Megasite authority could purchase land for critical infrastructure needs, like a highway ramp or rail spurs in non-contiguous acreage.  Currently, additional property within the megasite zone must be contiguous.  The legislation also deals with the make-up of the megasite authority, making it much like a local industrial development board to enhance success of the project

This measure is in addition to the allocation of more than $27 million in bonds slated for the project in the 2009-10 budget to allow authorities to buy land for the Haywood County megasite.  It is hoped that the measure will have the same impact on the area as the megasites in Clarksville and Chattanooga.  (STATUS:  SB 653 / HB 1115 / PC 153 / DOE:  Upon becoming law)  sponsors:  Finney L., Henry, Tate, Ford, O., Gresham, Norris, Berke, Marrero B, Tracy, Herron

TVA / ALCOA– A resolution was approved by the Legislature urging the Tennessee Valley Authority (TVA) Board of Directors to enter into a long-term contract with Aluminum Company of America (Alcoa).  The resolution sends a message to Congress and the TVA that Tennessee believes it is critical to finalize this contract.  Approximately 500 jobs are dependent on restarting the smelter at Alcoa which is, in turn, dependent upon completion of a competitive long-term power contract.  The resolution will be  delivered to TVA’s Board of Directors and each member of the Tennessee Congressional delegation.  (STATUS:  SJR 622 / signed by gov 6/25)  sponsors:  Overbey, Barnes, Beavers, Berke, Black, Bunch, Burchett, Burks, Crowe, Faulk, Finney L, Ford, O., Gresham, Harper, Haynes, Henry, Herron, Johnson, Ketron, Kyle, Marrero B, McNally, Norris, Ramsey, Southerland, Stanley, Stewart, Tate, Tracy, Watson, Woodson, Yager

Small business investment -- Before adjourning the 2009 legislative session, the General Assembly passed innovative legislation  designed to grow jobs through a program that would provide capital to small businesses.  The bill creates the TNINVESTCO Program to provide benefits to small, medium-sized, and start-up businesses that do not enjoy the same economic development incentives that have been provided to the larger companies that invest capital in Tennessee. 

The overwhelming majority of jobs in this state are created by small businesses.  The new law authorizes tax incentives for private investors to create a pool of capital totaling $120 million.  That money will be divided among professional investment firms.  These Tennessee-based firms will then invest the money in small businesses located and headquartered in Tennessee.  The money must remain invested in Tennessee for ten years.

Under the plan, investors receive a tax credit against insurance premium taxes that spread over years three through ten of the program.  Even though the capital will be available for small businesses immediately, there are no tax credits for investors until 2012.  Capital returned to the state must first go to the General Fund.  Once enough money has been repaid, the remaining funds will be deposited in the Rural Opportunity Fund.  (STATUS:  SB 1203 / HB 2085 / transmitted to gov 6/30   / DOE:  upon becoming law) Sponsors:  Ramsey, Stewart, Stanley, Tracy, Finney, Jackson, Bunch, Burks, Burchett, Ketron, Watson, Johnson, Berke, Black, Tate, Southerland, Crowe, Yager

  Education

Funding Education -- The budget, as it pertains to funding education, was a key issue this year as the legislature faced a dramatic downturn in state revenues.  As approved, the budget fully funded K-12 and the Pre-K programs, as well as the same level of funding for lottery scholarships.  Lottery proceeds for education are estimated to be $269 million for the 2009-10 fiscal year, while proceeds for after-school programs are expected to be approximately $13.2 million.   The budget also restores higher education funding to the highest level to draw down federal stimulus funds.  In addition, several higher education capital projects were approved through the bond legislation passed this year.

Charter Schools – Major education reform legislation that strengthens Tennessee’s public charter school law was among the final bills approved by the General Assembly as the 2009 session wrapped up this year.  The new law widens eligibility, clarifies funding and addresses rules for renewal of the public charter schools. 

Previously, Tennessee had one of the most restrictive public charter school laws in the nation.  The legislation also puts into place a process so the best practices gained from the “laboratories of learning” go into traditional school programs.

Charter schools are public schools that are given flexibility to operate without the constraints of some of the rules and regulations normally imposed on traditional schools.  In exchange for this flexibility, they are held accountable for performance through a charter, which is an agreement between the Local Education Agency (LEA) and the charter school.  It requires a strenuous approval process by the LEA and an equally tough renewal process of the charter every five years.

The legislation addresses four provisions in the current charter school law.

School buses -- State legislators have approved a new law authorizing local education agencies (LEAs) to extend the use of school buses for two more years as long as they do not exceed 200,000 miles and meet certain safety requirements.  The legislation gives school boards more tools to plan their transportation budget needs.

Previously, school systems could use a bus for 12 years, at which time the Commissioner of Education may grant waivers for an additional three years on a year-to-year basis upon meeting the requirements similar to those of conventional school buses.  Under the new law, LEAs would be authorized to ask for a waiver to use a bus up to 17 years, as long as it does not exceed the 200,000-mile cap and the bus is inspected at least twice annually.  The inspectors could mandate needed repairs. 

Any bus reaching the 200,000 limit would have to be replaced within 90 days.  The local agencies would be required to maintain records of all actions and safety inspections performed on the bus from its in-service date for the Tennessee Department of Safety.   (STATUS:  SB23 / HB 92 / PC 436  / DOE:  July 1, 2009), Sponsor:  Yager, Faulk, Barnes, Burks, Jackson

Bullying / Clean-up – Two anti-bullying laws were approved by Tennessee lawmakers this year expanding on the state’s model bullying law passed in 2005.  Technology has now given way to cyberbullying, which challenges the traditional schoolyard bullying.  New studies have found that approximately 30 percent of students in grades six through eight reported they recently had been cyberbullied or had cyberbullied another person at least once.

One new law passed this year requires each Local Education Agency to adopt a policy that prohibits harassment, intimidation, or bullying.  The new law makes the various policies implemented by local education agencies across the state under the 2005 bullying law more consistent and stronger by requiring 13 standards that must be included in each system’s anti-bullying policy.  (STATUS:  SB 283 / HB 451 / PC 153 / DOE:  July 1, 2009) Sponsors:  Black, Burks, Ford
 
The second law approved this year broadens the Class A misdemeanor offense for harassment to include maliciously intimidating a person by any means of communication and causing them to be frightened or emotionally harmed.  This includes bullying by e-mail or over the Internet.  Law enforcement maintained that the previous Tennessee law did not have enough teeth to tell the person doing the cyberbullying that it was against the law.       

The bill was brought to the legislature after several cases were reported of students outside school being harassed through Internet communications.  It also comes after the highly publicized 2006 death of a 14-year-old girl in Missouri who committed suicide after a former friend's mother created a fake profile of a fictional teen boy on a social networking website and used it to post humiliating lies about her. 

The bill was originally aimed at preventing Internet bullying of minors, but lawmakers removed its 18-year-old age limit so that it also applies to adult victims of malicious electronic communications as well.

Research indicates that approximately 160,000 students avoid school every day for fear of being bullied.   Almost 60 percent of boys who were classified by researchers as bullies in grades six through nine were convicted of at least one crime by age 24, at which time, 40 percent of them had three or more convictions.  In 2002, a report released by the U.S. Secret Service concluded that bullying played a significant role in many school shootings and that efforts should be made to eliminate bullying behavior.  (STATUS:  / SB 113 / HB 484 / PC 347 /  DOE:  July 1, 2009 ) sponsors:  Black, Burks

Home school diplomas – The General Assembly has approved legislation that requires home school diplomas to be recognized as a regular public high school diploma. Before, those graduating from a home school were treated unfairly in seeking jobs that, by statute, require a high school diploma - ranging from day care worker to law enforcement officer. The Department of Education has been "misinterpreting" those statutes by declaring that homeschool graduates do not meet the high school diploma requirement unless they also obtain a GED certificate.

This measure makes sure that graduated of church-related schools or home schools are recognized by all state and local governmental entities as having the same rights and privileges of those holding diplomas issued by public school systems.  (STATUS:  SB 433 / HB 431 / PC 329 / DOE:  Upon becoming law), sponsors:  Bunch, Gresham, Johnson, Beavers, Ketron, Woodson, Yager, Black, Faulk, Tracy, Burks

Education pays – State lawmakers have approved legislation that encourages local education agencies (LEAs) to develop “Education Pays” pilot programs for at-risk students. The idea is for the Pilot Program to provide monetary rewards or other rewards of value for academic achievement funded through private organizations. The measure also encourages the State Board of Education to study the effects of any such programs in Tennessee and other states and to report its findings to the General Assembly.  Several localities across the country have been successful in implementing such programs to ensure that the right incentives are in place to reward good behavior for high risk youth.  (STATUS:  SB 482 / HB 556 / PC 326 / Sponsor:  Bunch, Ford

Education / Troops to Teachers – The General Assembly approved legislation this year directing the Department of Education to develop an alternative program for former community college military instructors to obtain a license to teach in Tennessee schools.  The legislation, which is modeled after a Florida law, paves the way for those who have served their country to continue to serve their community by teaching in our schools. 
Tennessee already receives funding from the U.S. Department of Defense to help with coursework and financial needs for former military service employees to get their teaching credentials.  The Department of Education would utilize this legislation to assist with those efforts.  (STATUS:  SB 1703 / HB 1487 / PC 221 / DOE:  Upon becoming law)  Sponsor:  Overbey, Stewart, Berke, Watson

Education / Parental Consent for Mental Health Screening – State lawmakers have approved legislation that places restrictions on universal mental health testing or social/ emotional screening of juveniles.  The new law prevents the screening from being done without the parent’s consent.  It also prohibits a local education agency from using a parent’s refusal for medication or screening as grounds for not allowing the child to participate in class or other school activities.  (STATUS:  SB 850 / HB 1552 / PC 127 / DOE:   July 1, 2009)  Sponsors:  Black, Burks, Gresham, Beavers, Ketron, Crowe, McNally, Burchett, Tracy, Ramsey, Yager, Southerland, Stanley, Bunch, Norris, Johnson, Faulk, Watson 

  Elections / Ethics / Open Government

Election Appearance / Governor –  Among election bills approved this year, was a bill  that urges the executive committees of each statewide political party to jointly establish a calendar of appearances in each county in Tennessee that enables their respective gubernatorial candidates to appear together during the time between the primary and general elections. Each candidate would be provided an opportunity to speak at each appearance, under the bill.   Following each candidate's speech, time would be provided for a town hall forum.  If such a schedule is established, this new law  recommends that the schedules be posted on the parties' Web sites.  (STATUS:  SB 2186 / HB 1841 / PC 236 / DOE:  Upon becoming law)  Sponsor:  Faulk

Elections / Military -- Another bill regarding elections approved during the 2009 session honors the service of those in the military by making it easier for those overseas to access and return the necessary documents to vote absentee.   In the last election, many Tennesseans serving overseas requested that they be allowed to send their scanned documents by email because they did not have access to a fax in Iraq and Afghanistan. 

This legislation allows Tennesseans serving in the military overseas to scan an absentee request or change of address form and attach the document to an email to be sent to the their county election office to make it easier for them to vote.  Currently, only a fax is allowed. The local election office would still compare the signature of the voter before mailing the ballot.  (STATUS:  SB 1420 / HB 1421 / PC 218 /   DOE:  July 1, 2009)  Sponsors:  Ketron, Ramsey

State Election Commission – Legislation was approved in 2009 to update the political composition of the State Election Commission to reflect a Republican majority as a result of the 2008 election.  State law previously required that the political composition of the five-member State Election Commission be three members of the majority party and two members of the minority party.  Under the bill the new members will rotate off the Commission in two years when their terms of office expire.  The make-up of the board will consequently return to a five-member status after that time.  Two new Republican commissioners were added to the Tennessee Election Commission in June after the nominees were confirmed in a joint legislative session of the General Assembly, including Judy Blackburn, the first woman in Tennessee history to serve on the Commission.   (STATUS:  SB 547 / HB 845 / PC 376 /  DOE:  Upon becoming law)  Sponsors:  Norris, Black

Online Sunshine -- The Legislature gave final approval to legislation expanding a pilot program utilized in Knox County that brings sunshine online to the Internet.  The bill uses 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.  Under the new law, elected bodies could set up websites where they can post messages to one another.  These “conversations” would be available for the public and the media’s viewing.   (STATUS:  SB 832 / HB 533/ PC 175 / DOE:  upon becoming law)  sponsor:  McNally

  Employees

Unemployment Trust Fund -- Legislation to “shore up” Tennessee’s declining Unemployment Trust Fund was approved this year to enable the state to draw down $141 million in stimulus funds.  The state was required to enact three costly options from a menu of five expansions of benefits to receive stimulus funds under the American Recovery and Reinvestment Act (ARRA).  Following the requirement, the unemployment bill reduces the time period in which applicants must work to be determined eligible, changes the number of hours for eligibility for part-time workers from 32 to 20, and increases payments to applicants with dependents. 

The federal stimulus law does not allow states to automatically “sunset” the expansion of benefits when the stimulus money is exhausted.  The Tennessee Department of Labor has determined the bill will cost Tennessee approximately $30 million per year, when the stimulus funds dry up, which causes some to have future concerns for the solvency of the fund. 

In addition, the unemployment bill would increase unemployment insurance to maintain solvency of the fund by raising the taxable wage base to $9,000 from $7,000 triggered by the amount of money remaining in the fund and adopts a 0.6 percent premium charge. 

With unemployment at over 10 percent in Tennessee as of June, there is a tremendous increase in benefit claims.  Insolvency would have meant federal control of the state’s fund, meaning Washington could have dictated future tax rates and wage base thresholds.  It would have also meant mandatory borrowing with interest from the federal government that could cost businesses more in the long run according to the Bredesen administration.  The legislation generates $220 million in new revenues, a level which Labor Commissioner James Neely says would keep Tennessee from going “into the red” and borrowing from the federal government at interest rates of up to 25 percent.  (STATUS:  SB SB 2315 / HB 2324 / signed by gov 6/25 / DOE:  upon becoming law) sponsors:  Kyle, Henry, Marrero

  Energy / Environment / Ethanol

Green jobs and sustainable buildings -- Legislation that would enable local governments to promote energy efficiency and sustainability was approved by the General Assembly.  The new law expands local power of housing and development agencies to promote economic development through the use of tax increment financing.   The legislation creates incentives for local governments to use tax increment financing to pay for energy efficiency costs, encourages sustainable design by including Green Globes and LEED-certification costs within the financing package, and promotes local alternative energy projects that incorporate green design principles.  These organizations provide the nationally-recognized standards for energy efficiency.    STATUS:  SB 1919 / HB 1468 / PC 491 / DOE:  upon becoming law) sponsor:  Johnson, Overbey, Faulk, Marrero, Finney

Solar Institute / Solar Farm – The budget includes the use of $62.5 million in federal American Recovery and Reinvestment Act funds to “advance job creation, education, research, and renewable-power production in Tennessee.”  The Tennessee Solar Institute at the Oak Ridge National Laboratory in conjunction with Tennessee’s universities will focus on basic science and industry partnerships to improve the affordability and efficiency of solar products.  The development of a West Tennessee Solar Farm near Brownsville will involve a five-megawatt 20-acre power generation facility at the Haywood County industrial megasite that will be one of the largest installations in the Southeast.  That facility would also serve as a demonstration tool for educational, research and economic-development purposes.

Gasoline / Ethanol -- Legislation that allows more Tennessee products to be used in the blending process of gasoline was approved by lawmakers.  The bill requires suppliers of gasoline products to make gasoline available to wholesalers in a condition that allows the wholesaler to blend it with ethanol.

The federal government has adopted policies which have encouraged the blending of ethanol and other agriculturally produced products with petroleum-based fuels.  Tennessee has also encouraged the agricultural production of crops for conversion into ethanol and biodiesel additives to expand the use of these products. 

In 2008, major oil company suppliers began to cut off wholesalers’ access to unblended product.  This refusal has prevented wholesalers from visiting ethanol terminals within the state and blending the product which might ultimately result in a drastic decrease in the consumption of Tennessee ethanol.

This legislation benefits the agricultural industry and further lessens our reliance upon foreign imported petroleum products.  (STATUS:  SB 1931 / HB 1517 / signed by gov 6/25 / DOE:  upon becoming law) sponsors:  Woodson, Burchett, Ketron, Overbey, Gresham, Herron, Ford, Marrero, Burks

Methane Gas – Another environmental bill passed this year encourages the development and use of refined and purified methane gas as a renewable green energy source.   Generating electricity from solid waste landfills is a relatively cost-effective way to provide new renewable energy generation capacity to help supply community power needs, while helping to create local jobs.

The legislation makes it clear that once refined, the extracted methane is a commercial equivalent to natural gas under Tennessee law.  It also says that it would be treated as such under any permits allowing burning or use of natural gas.  In addition, the legislation makes it clear that any prohibition in permits that bar use of burning of landfill gas refer only to the unrefined gases generated underground at a landfill and not the extracted and refined methane.

Experts maintain landfill gas emitted from decomposing garbage is a reliable and renewable fuel option that remains largely untapped at many landfills across the United States despite its many benefits. Generating energy from landfill methane gas creates a number of environmental benefits, including the reduction of greenhouse gas emissions and improving the air quality of the surrounding community by reducing landfill odors.  The purified extracted methane can be transported by pipeline.  (SB 2066 / HB 1912 / PC 73 / DOE:  July 1, 2009) sponsors:  Overbey, Burks

Environment / Coal Fly Ash –  Following one of the largest environmental disasters in Tennessee history with the coal ash spill in Kingston, legislators voted this year to prohibit the issuance of permits for the storage of coal fly ash in landfills unless they contain a liner for protection of groundwater and are capped properly.  The legislation requires the state’s Department of Environment and Conservation (TDEC) to issue a permit or request for expansion of an existing landfill only if it meets those requirements for the storage of the coal by-product.

The Roane County coal ash spill released more than 5.4 million cubic yards of ash into the river from an on-site lagoon, also referred to as a holding pond, at the Kingston Fossil Plant.  Fly ash is a fine, glass-like powder recovered from gases created by coal-fired electric power generation.   The ash contains arsenic, which means it must be treated as a “hazardous substance” as it is moved from the Kingston site to a landfill.  Earlier this year, officials reported the removal of the sludge from the Kingston spill is expected to cost TVA between $525 to $825 million.  (STATUS:  SB 1559, HB 1628 / PC 255 / DOE:  upon becoming law) sponsors:  Burchett, Yager, Marrero, Berke, Herron, Burks, Woodson, Ford  

Water law -- Legislation was approved this year allowing landowners who hire a scientific consultant to determine what qualifies as a stream on their property.  They could then rely on that determination if they develop the land, unless the state challenges them within 30 days.   The bill also calls for training for those who issue violations to make sure they are highly qualified to make determinations based on scientific results.   (STATUS:  SB 632 / HB 615 / PC 464  / DOE:  upon becoming law) sponsor:  Southerland 

  Health

Budget cuts  -- The administration’s proposed budget cuts to health was a key issue this year; especially those that would have effected some of Tennessee’s most vulnerable citizens.  Through the vigilance of the Senate General Welfare, Health and Human Services Committee members, the administration restored some of the most critical cuts.  These included adding back $5 million in support grants for mental health, $10 million for Mental Health Safety Net activities, $4.9 million in grants for the coordinated school health program and $4.5 million more for the Department of Children's Services to help dependent and neglected children.  It also included cuts made in the governor’s budget to group homes and children’s services statewide.

Long term care --Legislation was approved this year as a second step to last year’s efforts to provide additional choices to those who require long term care services.  The bill is a product of the legislature’s Long Term Care Study Committee.  Last year the General Assembly passed major legislation that set up the basic structure of long term care in Tennessee, which includes more options for senior citizens to receive home- and community-based services.  That legislation worked to give elderly and disabled Tennesseans more long term care options, including simplifying access to home and community-based services and increasing the number of people able to stay at home for long-term care needs through the state’s TennCare program. 

This “second step” legislation provides for the licensure of level two facilities, which are greatly needed in Tennessee.  Level two facilities are those with acute care needs, including services to patients that need ventilators or those with acute brain injuries.  The legislation starts the ball rolling for rules and regulations to be formulated on these level two facilities as soon as possible.  Next year, the General Assembly is expected to implement the level one facility licensure as the legislature continues to complete the structure of this plan to give senior citizens and the disabled more long term care options.  Before passage of last year’s long term care reform, Tennessee was 47th in the nation in providing home- and community-based services to these citizens. (STATUS:  SB 2275 / HB 2282 / transmitted to gov 6/19  / DOE:  for rulemaking July 1, 2009 / otherwise Jan. 1, 2010),  sponsors:  Kyle, Finney L, Burks, Yager, Faulk, Jackson, Crowe, Black

Medical Malpractice Reform – Significant legislation approved by the General Assembly this year provides clarification and improvements to Tennessee’s new Medical Malpractice Reform law passed in 2008.  The revisions make it clearer for plaintiff’s bringing suits and the health care providers in defending those claims.

One provision clarifies how the 60-day notice is given under the 2008 law.  This is the pre-filing notification given to each medical provider who may be named in a medical malpractice action. The new legislation also provides that the statutes of limitation and repose are extended by 120 days. In addition, the bill provides that the Certificate of Good Faith must be filed with the complaint. 

Tennessee’s new Medical Malpractice Reform law has been successful in reducing lawsuits according to the statistics released in May showing the number of actions filed since implementation of the law in 2008.  A comparison of the last quarter of 2008 with the same period in 2007 shows medical malpractice lawsuits have dropped from 143 to only 28.  The first quarter of 2009 compared to the previous year shows similar results with 130 cases in 2008 as compared to 56 cases in 2009.  Previously, Tennessee had been declared a medical liability "Crisis State" by the American Medical Association.  (STATUS:  SB 2109 / HB 2233 / PC 425  / DOE:  Most sections apply July 1, 2009) sponsors:  Overbey, Norris, Finney

Health / Mental Health / Crisis Services -- The full Senate and House has approved legislation seeking to ensure that crisis services continue to be available for mentally ill citizens.  The bill requires the Department of Mental Health and Developmental Disabilities to coordinate with other departments and agencies of state government to make sure that services for persons in psychiatric emergencies include a 24-hour, seven-day-a-week toll free telephone number, and walk-in triage screening, assessment, intervention and follow-up care.  It also calls for access to in-house crisis care. (STATUS:   SB 441 / HB 1669 /  PC 404 / DOE:  upon becoming law) sponsor:  Overbey, Herron, Tracy, Marrero, Burks

Safety Net for mentally ill -- Legislator approved a new law this year to clarify and help protect safety net services for Tennesseans with serious and persistent mental illness who have been disenrolled from TennCare.  The bill, which was endorsed by the Coalition for Mental Health and Substance Abuse Services, enables the state to provide safety net services to about 29,000 mentally ill adults who are uninsured and whose income level is at or below 100 percent of the federal poverty level. The legislation puts language into Tennessee law to clarify the benefits provided to serious and persistently mentally ill citizens and identify the population served with these minimal services to strengthen the program.  Such services include needed medication and follow-up medical care, among other services.  (STATUS:  SB 1538 / HB 1551 / PC 95 / DOE:  July 1, 2009) sponsor:  Burchett, Marrero, Burks

Division of Intellectual Disabilities – Legislation to rename the state’s Division of Mental Retardation Services the “Division of Intellectual Disabilities” has received final approval under legislation passed this year.  The initiative began with Special Olympics and other advocates for intellectually challenged individual leaders to change any derogatory use of the word “retardation” from the country’s vocabulary, beginning with references in government programs or services. The bill was supported by the Department of Mental Retardation Advisory Council which is made up of disability advocates, family members, providers, and consumers who voted in favor of supporting this initiative earlier this year.  Due to cost factors, the name of the Division will be changed as new volumes of Tennessee’s laws are replaced and supplements are published.   (STATUS:  SB 1121 / HB 1275 / PC 477 / DOE:  upon becoming law) sponsors:  Yager, Overbey, Black, Ketron, Marrero, Burks, Ford

Health / Home health care – The General Assembly approved legislation to allow home health nurses or aides to accompany a recipient outside the home during the course of delivery of prior-approved services.  The bill allows aides or nurses to accompany their patients to places like the doctor’s office or church.  Currently services are banned unless they are in a hospital or at home.  Additional visits or hours of care would not be approved for coverage, and services would be limited to what the recipient would be entitled to if provided exclusively at the recipient’s place of residence.  (STATUS:  SB 851 / HB 1114 / PC 471 / DOE:  July 1, 2009) sponsors:  Black, Johnson, Woodson, Ford, Gresham, Harper, Marrero, Tracy

Preferred Provider Organization Transparency Act – This year’s legislative action saw passage of the “Preferred Provider Organization Transparency Act.”  The bill makes sure that health care providers who contract with health insurance plans have full knowledge of any assignment of their contract to entities associated with the insurance company with whom they would be paid.  Under the bill, the third party would be required to inform the contracting health care provider of a Web site on which they may get information about any changes in the health plan status.  This includes to whom the third party has granted access to the provider's health care services and contractual discounts.  The bill will also help doctors know to whom they can address any problems.  (STATUS:  SB 693 / HB 1907 / PC 466  / DOE:  January 1, 2010  (shall apply to provider network contracts entered into, renewed or materially amended on or after that date) sponsor:  Southerland

Charitable Clinics – Charitable healthcare clinics that receive a nominal fee would receive protection from liability for civil damages under legislation approved this session.  The legislation seeks to help the clinics find volunteer healthcare providers at a time of high unemployment when these facilities are receiving an influx of new patients.  Currently only free clinics receive the immunity.  (STATUS:  SB 1907 / HB 1545 / transmitted to gov 6/19 / DOE:  upon becoming law) sponsor:  Norris, Marrero, Overbey, Tracy, Crowe, Southerland, Stanley, Woodson, Burchett, McNally, Yager, Watson, Burks

Protection for Community Action Agencies -- The full House and Senate approved legislation to add Community Action Agencies to the definition of a governmental entity under the Tennessee’s Governmental Tort Liability Act.  The measure recognizes Community Action Agencies in the same way it does Human Resources Agencies, which are also quasi-governmental agencies that perform the same type of function but do receive protection under Tennessee law.  There are 20 community action agencies and six non-profit organizations in Tennessee which served 23,000 families, or 300,000 individuals last year through the Community Service Block Grant Programs and the Head Start Programs in Tennessee.  (STATUS:  SB 1327  / HB 1409 / PC 206 / DOE:  upon becoming law) sponsor:  Yager Burks, Black

Drug abuse -- Lawmakers have approved legislation that requires all entities that dispense medications to have access to the controlled substance database by January 1, 2010.  The bill is designed to cut down on prescription drug abuse by providing information to those prescribing and dispensing the drugs.

The Tennessee Board of Pharmacy began accepting prescription information into the Controlled Substance Monitoring Database on December 1, 2006.  The database, which is maintained by the Department of Health, includes data on controlled substance prescriptions of schedule II-V drugs.  The database includes who the prescribing practitioner is, who filled the prescription, basic patient information, and the name and form of medication that the patient received.

Only those persons authorized by law can access the database to assist in determining treatment history and to ensure a patient is not fraudulently seeking controlled substances.  This bill makes sure that those prescribing and dispensing drugs have electronic access to the controlled substance database upon providing health care services to a patient potentially receiving a controlled substance.   (STATUS:  SB 224 / HB 151 / PC 228 / DOE:  January 1, 2010)  Sponsor:  Stanley, Burks

  Immigration

Immigration bills -- Several bills addressing illegal immigration were approved on the Senate floor and in committees this year.  Senate Republicans have a series of bills to continue the fight for common-sense illegal immigration reform in Tennessee.  This year’s efforts build on action taken by the 105th General Assembly, which included the Memorandum of Understanding law to help state and local police deport illegal aliens, a separate measure ensuring employers receive proper identification before hiring, and a new law cracking down on those who transport illegal aliens into the state. 
 
English Initiative – Legislation was adopted this year that calls for the Department of Labor and Workforce Development, in conjunction with the Department of Education, to establish and administer a grant program called the "We Want to Learn English Initiative." The initiative is designed to provide resources for immigrants and refugees in Tennessee to learn English.  (STATUS:  SB 1745 /  HB 1648 /  PC 366 / DOE:  upon becoming law) sponsor:  Ketron

Sanctuary Cities -- The General Assembly approved a bill this year aimed at preventing any city in Tennessee from becoming a “sanctuary city” for illegal aliens.  “Sanctuary city” is a term given to a city in the United States that follows certain practices to protect illegal aliens. Thirty-eight cities in the U.S. have been recognized as sanctuary cities, but many sources have identified over 200 city or county governments nationwide as having practiced such policies.

The measure prohibits local governments, or the head of such localities, from passing any ordinances or policies that allow for a sanctuary city to be located in Tennessee.   The bill is designed to be a pre-emptive strike to guard against the adoption of any policies to protect those who are in the United States illegally.  (STATUS:  SB 1310 / HB 1354 / PC 477 / DOE:  September 1, 2009) sponsor:  Tracy, Gresham, Johnson

Fake IDs -- Lawmakers also approved a measure that would make it a Class A misdemeanor offense to knowingly provide, transfer or submit a fake identification for the purpose of obtaining or maintaining employment.  The new law makes production or use of each false identification document a separate offense under Tennessee law if it is determined that any person in connection with the violation is not legally present in the United States and require the court to notify the U.S. Department of Homeland Security.  (STATUS:  SB 294 / HB 302 / PC 155 / DOE:  July 1, 2009) sponsors:  Johnson, Black

  Military / Veterans

Numerous bills were passed this year to honor veterans and those who serve our state and nation in the military.  Tennessee has the 6th largest National Guard in the U.S, with a 72 percent re-enlistment rate.  

Military / Personal Rights Protection Act -- Legislation designed to protect soldiers from having their names or likeness used in anti-war activities without permission was approved during the 2009 legislative session.  The new law allows individuals to recover three times the amount of damages plus attorneys fees, for knowingly using or infringing on the rights of an active member of the armed forces in violation of Tennessee’s “Personal Rights Protection Act.”

The legislation comes after several violations were reported, including T-shirts sold on the Internet using the names of about 1700 soldiers.  The T-shirts contained defaming information about the country with the name of soldiers on the back.    (STATUS:  SB 836 / HB 1707 / PC 359 / DOE:  upon becoming law) sponsors:  McNally, Burchett, Barnes, Beavers, Berke, Black, Bunch, Burks, Crowe, Faulk, Finney, Ford, Gresham, Harper, Haynes, Henry, Herron, Jackson, Johnson, Ketron, Kyle, Marrero, Norris, Overbey, Southerland, Stanley, Stewart, Tate, Tracy, Watson, Yager, Mr. Speaker Ramsey

Soldier Heroes – The General Assembly voted this year to send Congress a resolution asking that an initiative be adopted to honor the wishes of soldiers regarding the disposition of their remains if they die in service to their country.  The initiative, called the “Honor the Written Intent of our Soldier Heroes Act,” would amend a federal law that prohibits a service member from designating a person other than a surviving spouse, blood relative or adoptive relative to direct the disposal of the service member’s remains  (STATUS:  SJR 352 / signed by gov 6/25)  sponsors:  Woodson, Gresham, Marrero

Military / Honoring Heroes – Another measure approved this year will honor soldiers who die in the line of duty.  The legislation 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 legislation also requires that flags be flown at half-mast to honor these soldiers who make the ultimate sacrifice for their state and country.    (STATUS:  SB 1647 / HB / PC 169 / DOE:  upon becoming law) sponsor:  Gresham, Barnes, Overbey, Crowe, Marrero

Family law / soldiers  -- A bill allowing military personnel who have child visitation rights under a divorce decree to transfer those rights to a relative when he or she is sent overseas passed this year.   The bill authorizes a court to grant a parent's petition to assign visitation rights to a relative if the court finds that the visitation would be in the child's best interests.   (STATUS:  SB 1267 / HB 804 / PC 442 /  DOE:  July 1, 2009)  sponsor:  Bunch

Veterans / Education – A study of the tuition relief program for veterans will be established under a bill meeting the approval of the legislature.  The bill requires the Tennessee Higher Education Commission (THEC) with the assistance of the Tennessee Board of Regents (TBR), the University of Tennessee (UT), and the Tennessee Student Assistance Corporation (TSAC), to look at programs that have been enacted in other states and report back on the feasibility of establishing such programs in Tennessee.  (STATUS:  SB 1693 / HB 1219  / PC 220 / DOE:  upon becoming law) sponsors:  Southerland, Barnes, Burks
 
Education / Troops to Teachers – Legislation was approved this year directing the Department of Education to develop an alternative program for former community college military instructors to obtain a license to teach in Tennessee schools.  The legislation, which is modeled after a Florida law, paves the way for those who have served their country to continue to serve their community by teaching in our schools. 
Tennessee already receives funding from the U.S. Department of Defense to help with coursework and financial needs for former military service employees to get their teaching credentials.  The Department of Education will utilize this legislation to assist with those efforts.  (STATUS:  SB 1703 / HB 1487 / PC 221 / DOE:  Upon becoming law)  Sponsor:  Overbey, Stewart, Berke, Watson

Elections / Military – Finally, the General Assembly voted to make it easier for those serving overseas to access and return the necessary documents to vote absentee.   In the last election, many Tennesseans in the military serving overseas requested that they be allowed to send their scanned documents by email because they did not have access to a fax in Iraq and Afghanistan.  (STATUS:  SB 1420 / HB 1421 / PC 218 /   DOE:  July 1, 2009)  Sponsors:  Ketron, Ramsey

  Roads and Rules of the Road

Tennessee Transportation Infrastructure Fund -- Legislation that provides a vehicle for local governments to finance and complete local transportation projects was approved this year.  The bill gives local governments the option of applying for a low interest loan for eligible infrastructure projects with flexible repayment terms.  The State Transportation Infrastructure Fund also lets Tennessee apply for a portion of $200 million in stimulus funds recently made available through the American Recovery and Reinvestment Act.

The state formed an infrastructure bank in 1998 within the Department of Transportation to capitalize on funds available for pilot projects.  However, only one project has been financed by the bank since that time, even though there are about $2 million in funds available. 

The legislation places the Infrastructure Fund under the purview of the Tennessee Local Development Authority (TLDA).  Prior to reaching the TLDA, applications will be reviewed by the Commissioner of the Tennessee Department of Transportation. 

Thirty-three states have infrastructure banks, with two-thirds having a board which is responsible for project approval and oversight.  (STATUS:  SB 2120 / HB 2186 / signed by gov 6/25 / DOE:  July 1, 2009), Sponsors:  Norris, Tracy

Dedicated Road Fund --  The General Assembly has approved a bill that maintains Tennessee’s dedicated road fund by prohibiting the diversion of gas tax money through the state’s appropriations bill (budget).  Previously, the dedicated road fund could be diverted simply through a line in the appropriations bill, which is a much easier route to raid the funds.  Over the last several years, $280 million in road funds have been funneled from the gas tax to meet other state government expenditures, leading to some of the problems Tennessee has experienced with road funding needs.

The new law requires authorization through separate legislation to divert gas tax revenues that are dedicated for road funds.  The measure puts Tennessee back in the position it was prior to 2004 and restores the appropriate checks and balances to ensure that any diversion of the funds are fully meted out through the normal legislative process.  (STATUS:  SB 1309 / HB 1311 / PC 197 / DOE:  July 1, 2009) sponsor:  Tracy, Norris, Black 

Toll Road expansion – Legislation was approved that authorizes TDOT to adopt two new highway projects or two major bridge projects under the pilot program established by the Tennessee Tollway Act.  (STATUS:  SB 1 / HB 1 / PC 54) sponsor:  Watson

Texting while driving – In action on rules of the road this year, the legislature voted to ban “texting while driving.”  The bill prohibits sending or reading text messages on public roads and highways while the driver is operating a motor vehicle in motion.   

Over two-thirds of those under the age of 24 who were polled have admitted to sending text messages while driving. Studies show that drivers of any age who text behind the wheel swerve out of their lane, with many running into head-on traffic. 

Law enforcement officials say the bill specifically banning texting will give them the tools to enforce banning this form of distracted driving.  Under the legislation, a violation would be a Class C misdemeanor punishable by a fine of $50.00.  The legislation also prohibits the Department of Safety from assigning a point value for the driver’s license suspension or revocation for violation under the proposed law.

An amendment deletes certain emergency personnel from the ban.  (STATUS:  SB 393 / HB / PC 201 / DOE:  July 1, 2009) sponsors:  Tracy, Ketron, Ford

Rules of the Road – Legislation adding two dangerous traffic violations to the list of current violations which are penalized under Class A and Class B misdemeanors has been approved.  The violations include crossing a double yellow line to hit another vehicle head-on and cutting off a vehicle while passing.  The penalty is a Class A misdemeanor if another person is killed and a Class B misdemeanor if they are seriously injured.  (STATUS:  SB 289 / HB 253 / PC 342 / DOE:  July 1, 2009) sponsor:  Beavers

  Second Amendment Rights

This year, the General Assembly passed several bills that uphold the U.S. Constitution’s Second Amendment right to bear arms.  Second amendment rights advocates have worked for the past two decades for restoration of their rights.   Tennessee's Constitution also guarantees that “the citizens of this State have a right to keep and to bear arms.”  Following are some of the bill passed this year restoring the rights of law-abiding citizens to own and carry firearms.
 
Right to Carry / Restaurants – State lawmakers approved a bill, and reaffirmed that vote by overriding the governor’s veto, 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.  Those who are in possession of a handgun are already prohibited from consuming alcohol or face a Class A misdemeanor, which carries a $2,000 fine and up to 11 months and 29 days in jail.  There are 220,000 gun carry permit holders in Tennessee.  Thirty-seven states allow legal permit holders to carry into locations that serve alcohol.    (STATUS:  SB 1127 / HB 962 / PC 339   DOE:  June 1, 2009) sponsor:  Jackson, Norris, Gresham, Beavers

Parks – Legislation passed this session which will allow legal gun carry permit holders to possess a firearm in state or federal parks in Tennessee.  The bill also allows local government bodies to maintain control of concealed carry within local parks.  According to a report from the U.S. Department of Interior, there were 8 murders, 43 forcible rapes, 57 robberies and 274 instances of aggravated assault in parks nationwide in 2007.  In January, the federal government lifted a regulation that banned guns in national parks and wildlife refuges.  (STATUS:  SB 976 / HB 716 / PC 428  /  DOE: upon becoming law on state or federal government property and on September 1, 2009 for the purposes of municipalities or counties)  sponsors:  Beavers, Faulk, Crowe, Gresham

Similarly, the legislature approved a bill extending those privileges to carry into wildlife refuges, public hunting areas, wildlife management areas or national forest land.  (STATUS:  SB 1519 / HB 961 / transmitted to gov  6/30  / DOE:  upon becoming law) sponsors:  Burchett, Jackson, Johnson, Beavers, Tracy, Gresham

Confiscation of Weapons / Martial law -- In other action involving firearms, legislation limiting the power of the government to confiscate firearms and restrict the sale of ammunition during martial law was approved.  The bill prohibits the confiscation of weapons from law-abiding citizens or restricting the ability to purchase guns and ammunition during times of martial law.  The law already makes that provision in cases of a natural disaster or declared emergency.  (STATUS:  SB 1992 / HB 1778 / PC 288 / DOE:  upon becoming law) sponsors:  Johnson, Ketron, Gresham, Faulk, Yager, Norris, Beavers, Stanley, Tracy, Watson, Crowe, Southerland, Woodson, McNally, Bunch, Burchett

Thumbprint – Another bill approved this year regarding firearms deletes the current requirement for a gun buyer to provide a thumbprint as part of the background check process.  Tennessee is the only state in the nation that requires a thumbprint from gun permit applicants.  Since the 1998 enactment of Tennessee’s conceal and carry law, the Tennessee Bureau of Investigation has only asked for one thumbprint due to a challenge from a person who was denied the right to purchase a firearm and that print was smudged and unusable.  (STATUS:  SB 554 / HB 254 / PC 102 / DOE:  July 1, 2009) sponsors:  Norris, Crowe

Instructors -- Lawmakers also approved a measure to clarify that neither the state nor an instructor or employee of a department-approved handgun safety course is authorized to require an applicant for a handgun carry permit to furnish or reveal private identifying information.  This includes information regarding any handgun the applicant owns, possesses, or uses during the safety course, or the serial number of the weapon. 

The bill was filed in response to an incident late last year, when the Department of Safety sent letters to all firearms instructors requiring them to complete and return a roster of students and to provide information on each student including the name of the firearm owner, the name of the student using the firearm, and the make, model, and serial number of firearms used.  (STATUS:  SB 32 / HB 46 / PC 101 / DOE:  upon becoming law) sponsors:  Tracy, Beavers, Stewart, Berke, Gresham, Burks, Crowe, Norris and Mr. Speaker Ramsey

Law enforcement -- Finally, the legislature approved a new law which allows retired full time commissioned police officers access to law enforcement shooting ranges when they are not being used by personnel.   (STATUS:  SB 275 / HB 234 /  PC 430 / DOE:  upon becoming law) sponsor:  Ketron

Tenth Amendment -- The Tennessee Firearms Freedom Act was passed this year stating that all firearms sold and contained in Tennessee are not subject to federal regulations.  This bill addresses the increasing threats to state sovereignty by the federal government through attempts to regulate intra-state commerce.  (STATUS:  SB 1610 / HB 1796 / PC 435 / DOE:  upon becoming law) sponsors:  Beavers, Jackson, Gresham, Norris and Mr. Speaker Ramsey 

  Wine

Wine / Shipping – Two bills passed this year regarding wine sales and shipping.  The first one allows consumers to ship wine from wineries to their homes.  Previously, it was a felony under Tennessee law to transport wine across state lines.  This legislation allows wineries to ship up to three cases of wine per year to Tennessee consumers provided they have license. 

The second new law regarding wine sales allows citizens in the state to purchase up to five cases of wine from out-of-state wineries who have a Tennessee license and transport them back across state lines.  The legislation corrects the constitutional issues set forth by a federal court case that threatens to end the sale of wine from Tennessee wineries.   Wineries are a significant agricultural industry in Tennessee with $139 million in sales in 2007.  (STATUS:  SB 166 / HB 1155 / PC 348 / DOE:  Rulemaking:  upon becoming law, otherwise July 1, 2009) sponsors:  Stanley, Ketron, Johnson;  (STATUS:  SB 944 / HB1549 / PC 273 / DOE:  upon becoming law) sponsors:  Overbey, Ketron, Faulk, Yager, Stanley 

  OTHER

Sovereignty – The Tennessee General Assembly joined 28 other states this year that, by June, had approved resolutions claiming sovereignty under the Tenth Amendment to the Constitution of the United States.”  The measure is designed to send Congress a message that the federal government has overstepped its Constitutional bounds by mandating a massive amount of federal policies upon the states in violation of the Bill of Rights.

The resolution states that the federal government was created by the states specifically to be an agent of the states, not vice-versa.   It was such an important point with the founders that they specifically provided for this sovereignty in our Constitution.”
The resolution also points out a 1992 U.S. Supreme Court ruling in New York v. United States, stating Congress may not commandeer the legislative and regulatory processes of the states.

The resolution concludes by providing that a “Committee of Conference and Correspondence” be appointed by the Speaker of the House and Senate charged with working jointly with other states to enumerate the abuses of authority by the federal government and to seek repeal of the assumption of powers and imposed mandates.    (STATUS:  HJR 108 /  signed by gov. 6/23) 

Autopsies -- Legislation aiming to protect families from having to deal with the unauthorized release or publication of autopsy pictures of a family member was passed during the session.  The bill strengthens penalties against those who violate the law by creating a new Class A misdemeanor offense for dissemination by any person of any autopsy materials without written consent of the deceased's next-of-kin or personal representative.

The legislation clarifies that the offense applies to the distribution of any "autopsy photographs, videotape or other visual image or any autopsy audio recording." The bill is designed to protect the rights of the deceased, and keep the family from additional suffering due to the insensitivity of those who would disseminate an autopsy.  (STATUS:  SB 1517 / HB 1527 /  PC 276 / DOE:  July 1, 2009)  Burchett, Ford, Marrero, Black, Burks

Silver Alert System -- Legislation creating a “Silver Alert System” that would work like the “Amber Alert System” to help locate missing individuals who have Alzheimer’s disease or related dementias was approved by the General Assembly in the last hours of the legislative session. The bill calls for local law enforcement agencies to coordinate with non-profit organizations such as “A Child is Missing” or the “Alzheimer’s Association” to aid in their efforts to put the program in place.  The Silver Alert would be triggered if that missing person is believed to be in danger because of environmental or weather conditions or is thought to be unable to return to safety without assistance.  (STATUS:  SB 532 / HB 346 / signed by H. Speaker 6/29 and S. Speaker 6/30  / DOE: July 1, 2009 ) sponsors:  McNally, Finney L, Yager, Faulk, Berke, Stewart, Henry, Burchett, Black, Haynes, Herron, Kyle, Norris, Overbey, Watson, Woodson, Ford, O., Burks

Safe Haven / Infants – State lawmakers voted to add fire stations and police stations to the list of locations that newborns can be taken by distressed mothers without fear of prosecution for abandonment.  Currently, the infants must be taken to a hospital or 24-hour emergency clinic.  This legislation adds fire stations and police stations as well.  The goal of the safe haven legislation is to set up a system that focuses on saving the baby's life, rather than the mother's liability.   (STATUS:  SB 1714 / HB 1714 /  PC 257  DOE:  upon becoming law) sponsors:  Overbey, Marrero, Finney, Burks, Harper

Vacancies / County Commissioners -- The General Assembly passed legislation to correct a problem arising from an interpretation of a 2008 law that revised procedures for filling vacancies on a county commission.  That law required a county commissioner to resign from office if they accept an appointment made by that governing body.  Some attorneys have interpreted this to include any appointments made by the county commission, including internal appointment to boards and committees, such as budget and finance committees, beer boards, ethics committees etc.  The legislation clarifies that it was not the intent of the 2008 law to prevent a county commissioner from serving on any board or commission if he or she could lawfully serve on that board prior to the act.  (STATUS:  SB 1712 / HB 1168 / PC 14  / DOE:  upon becoming law) sponsors:  Overbey, Yager

Publication / Cost Savings -- The House and Senate has, for many years, published a weekly “Legislative Record” that contains every bill number and a short summary of each piece of legislation, and made one available to all 99 members. Because the cost for producing the books is $90,000, and because the information is now available online, legislation was passed this year that ends the publication for cost-saving reasons.  (STATUS:  SB 2211  / HB 2357 / PC 225 ; DOE:  upon becoming law) sponsor:  Faulk

Restaurant Menus – The General Assembly voted this year to ban non-elected local government entitites or boards from imposing requirements on restaurants to provide nutritional information on menus.  The concern is that some communities will impose different standards and significantly increase costs to small restaurant owners.  In March, Davidson County’s Metro Board of Health voted to enact guidelines on providing nutritional information to customers for certain restaurants, even though Congress is considering the Federal LEAN Act.  That act would implement a national standard generally accepted by restaurant owners to provide nutritional information to customers.  Adopting a county-by-county approach to the disclosure of nutritional information increases costs to restaurants, many of whom are small business owners.  (STATUS:  SB 1092 / HB 950 / transmitted to gov 6/19 / DOE:  upon becoming law),  sponsors:  Stanley, Black

Dogs / outside cafes -- Dogs will be allowed in outside restaurants in Tennessee under legislation that passed this year. The measure allows cities with a population of at least 100,000 to establish an ordinance permitting dogs in outside dining areas.  (STATUS:  SB 605 / HB 1603 / signed by gov 6/25 / DOE:  July 1, 2009) sponsor:  Burchett, Woodson, Ford

Election of Secretary of State, Treasurer and Comptroller -- The opening week of the 106th General Assembly was marked by election of the state's constitutional officers, the secretary of state, treasurer and comptroller.  The state’s constitution provides that the legislature select the three offices in a joint session during the organization session of each General Assembly.   Republicans in the General Assembly have a 69 to 64 majority over Democrats after the November election, providing the first opportunity in 140 years to elect the officers.   Elected and sworn in were Tre Hargett as Secretary of State, David Lillard as State Treasurer, and Justin Wilson as Comptroller.  Hargett will serve a four-year term, while Lillard and Wilson will serve two-year terms as provided by the Constitution.

###

Week of June 18, 2009

Capitol Hill Week

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

Legislature passes budget and major charter schools bill
before adjourning 2009 legislative session

(NASHVILLE, TN), June 18, 2009 –    The Tennessee General Assembly wrapped up the 2009 legislative session this week after passing a budget and approving a major new charter schools law.  The $29.6 billion balanced budget comes after the unprecedented loss of over $1.2 billion in revenue in Tennessee due to the state’s declining economy. 

The appropriations bill amends the governor’s budget to reflect a more fiscally responsible budget that better plans for difficult economic times, borrows less, has more protection for the Rainy Day (savings) Fund and is closer to balancing recurring and nonrecurring expenditures.

“This was the most difficult year I have ever been through with the tremendous loss of revenue in our state this year due to the economic downturn,” said Finance Chairman Randy McNally (R-Oak Ridge).  McNally is a 30-year veteran legislator who has long been one of the state’s foremost authorities on the state budget.

Senate Republicans worked to reduce the overall budget by $40 million and won passage of several other fiscally sound provisions included in the bill like one calling for the impoundment of $55 million in case the state falls short of estimates at the close of the 2008-2009 budget year.  The provision calls for the governor to identify reductions if revenues fall short and to utilize those impounded funds so the state can close the books without having to dig deeper into the Rainy Day Fund.  The Rainy Day Fund will be essential next year if the economic conditions worsen and when federal stimulus money dries up. 

Other budget provisions included in the final version of the bill adds back $5 million in support grants for mental health, $4.9 million in grants for the coordinated school health program and $4.5 million more for the Department of Children's Services to help dependent and neglected children. 

On bonds, the governor had asked the legislature to authorize $350 million in bonds for bridge work and repair this year.  Senate Republicans won approval of a much more cautious approach to the bond authorization as reflected in a provision to incur only one-forth of those bonds this year.  The portion, which is $87.5 million, would only occur if there are not additional highway flex stimulus funds available.  If stimulus money is available the bond authorization would be cancelled, under the bill.  The General Assembly will take a year-to-year approach to phasing in the remainder of the four-year bond authorization to make sure the revenues are sufficient each year to pay for the bond plan.

Senate Republicans also made sure that language was placed into the bill requiring legislative oversight of any budget expansion requests.  This will assure federal expenditures of $5 billion in federal stimulus dollars coming into the state have the appropriate legislative checks and balances required by the state’s Constitution. 

It has been the practice in recent years that when the General Assembly is out of session expansion request, also called supplemental appropriations, are recognized and acknowledged through a signature of the Senate and House Finance Committee Chairmen and sent back to the administration who dispenses the funds.  New language included in the bill takes the next step in the direction of clarifying a better procedure and is in accordance with the Constitutional requirement. 

“We will continue to work on that process,” said Senate Majority Leader Mark Norris.  “I raise it to give the taxpaying public assurance that it is truly teamwork, the executive branch has a lot of discretion in this state, the legislative branch also has responsibilities and we will endeavor to exercise it appropriately.”

Another change implemented by Senate Republicans requires the administration to notify each entity receiving non-recurring money in writing that their funds will expire in 2009-2010 or the subsequent year. 

“The notification gives the appropriate notice to these entities receiving this non-recurring money that they need to seek alternative funding in future years,” added Norris.

The plan prioritizes education by fully funding the Basic Education Program, the state’s funding formula for K-12 education.  Pre-K would be kept at the same level of funding under the plan.  It also funds Tennessee’s higher education at the highest level of funding to draw down approximately $500 million in federal stimulus available through the American Recovery and Reinvestment Act.  In addition, it fully funds lottery scholarships to provide students with the opportunity to receive a college education.
 
On job growth, the legislation fully funds the economic development projects set to establish manufacturing facilities in the state including Volkswagen, Hemlock and Wacker.  The bill also fully funds the Haywood County megasite and Solar Farm in West Tennessee.

Other highlights of the budget, SB 2355, include:

• Keeping the employee pension fund actuarially sound

• Not accelerating the number of employee positions cut from the governor’s plan

• Keeping the state health insurance program fully funded

• Funding unemployment benefit increases and extended benefits

Public charter school bill approved as legislature closes 2009 session

Major education reform legislation that strengthens Tennessee’s public charter school law was among the final bills approved by the General Assembly as the 2009 session wrapped up this week in Nashville.  The legislation, sponsored by Speaker Pro Tempore Jamie Woodson (R-Knoxville) widens eligibility, clarifies funding and addresses rules for renewal of the public charter schools. 

Previously, Tennessee had one of the most restrictive public charter school laws in the nation.  The bill also puts into place a process so the best practices gained from the “laboratories of learning” go into traditional school programs.

“A one size fits all strategy for education shortchanges students and their families,” said Woodson.  “Effective and accountable public charter schools are a vital component to a broad strategy to offer excellent public education for the children of our great state.”
 
Charter schools are public schools that are given flexibility to operate without the constraints of some of the rules and regulations normally imposed on traditional schools.  In exchange for this flexibility, they are held accountable for performance through a charter, which is an agreement between the local education agency (LEA) and the charter school.  It requires a strenuous approval process by the LEA and an equally tough renewal process of the charter every five years.

The legislation, SB 2133, addresses four provisions in the current charter school law.

• Eligibility -- Currently, public charter school enrollment is limited primarily to failing students and those from failing schools.  This legislation permits “at-risk” children (as defined by free and reduced-price lunch) to attend charter schools in those systems that have 14,000 or more students and three or more schools which do not meet adequate yearly progress benchmarks.  In addition, school boards can opt by a two-thirds vote to allow students who are “at risk” to be eligible to attend charter schools.

• Caps -- Currently public charter schools are limited to 50 statewide, with a cap of 35 in Memphis and 20 in Nashville.  This bill says that converted charter schools do not count against the cap, clarifying in law what the Attorney General has already opined.  In addition the number of charter schools statewide would be limited to 90. 

• Renewal process – Currently, the charter agreement between the LEA and the charter school is renewed every five years.  This measure would change the renewal period from five to ten years, with an interim report every five years.  It also establishes the required documentation needed during the renewal process.

• Funding – Currently a public charter school receives the per pupil expenditure of state and local dollars.  Although it mentions appropriate federal dollars, interpretations vary from one LEA to the next.  This legislation defines the state and local charter school facilities funding responsibilities and clarifies the LEAs must allocate all appropriate federal funds, including Title I and ESEA funds, to the charter schools. 

“We now have a much improved public charter statue which provides on strong option in our portfolio of strong public choices for Tennesseans,” Woodson concluded.

General Assembly passes legislation strengthening Crooks with Guns Law

The final day of the legislative session also included approval of legislation cracking down on violent crime in Tennessee that builds on the “Crooks with Guns Law” passed during the last General Assembly.  The bill, sponsored by Senate Republican Leader Mark Norris (R-Collierville) and Senator Doug Overbey (R-Maryville) adds attempted first degree murder to the Crooks with Guns Law. 

“Tennessee ranks second in the nation in the number of violent crimes,” said Senator Norris.  “This legislation would work to keep those offenders off the street where they are no longer a danger to the public.” 

Sixty-seven percent of those convicted of violent crimes are re-arrested within three years of being released from prison.  The recidivism rate increases to 80 percent when you move past that three-year marker.

The original “Crooks with Guns” legislation made it an additional offense to be armed with a firearm when committing a list of dangerous felonies like aggravated and especially aggravated kidnapping, burglary, stalking, carjacking, voluntary manslaughter, and certain drug crimes. 

“Protection of our citizens should be one of our first priorities,” added Overbey.  “These are not petty criminals.  These are offenders that have no fear of using a firearm to kill their victim in commission of a crime.”
   
The bill, SB 672 , would add a minimum of three years to the sentence of a violator who possesses a firearm during the commission of attempted first-degree murder, to be served after the underlying offense.  If a violator possesses a firearm during the commission of the attempted first-degree murder and has a prior felony conviction, then a mandatory minimum of five years would be added to the sentence. 

In addition, if a violator possesses a firearm during the commission or an attempt to commit a dangerous felony or attempting to escape, then a mandatory minimum of six years is added to the sentence to be served after the underlying offense.  A prior felony conviction from this would add 10 years onto the sentence. 

The General Assembly also approved another bill aimed at keeping repeat violent criminals convicted of aggravated burglary behind bars longer by counting each felony committed within a 24-hour period as a separate offense.  

Under current law, with few exceptions, felonies committed within a 24-hour period constitute one conviction for the purpose of determining prior convictions by the court.  This bill, SB 2115 also sponsored by Norris and Overbey, requires all aggravated burglaries a defendant commits within a 24-hour period to be counted as separate prior convictions for purposes of determining whether the defendant is a multiple, persistent, or career offender under the Criminal Sentencing Reform Act.

Both of these bills aim to provide safety to our citizens by keeping these violent repeat offenders locked up,” Norris added.  “We must make public safety a priority of state government so our citizens feel secure in their own communities.”

Bills in Brief

Small business investment -- Legislation to establish “The Tennessee Small Business Investment Company Credit Act (TSBIA)” was approved during the final hours of the 2009 legislative session.  The bill is an effort to provide benefits to small, medium-sized, and start-up businesses that do not enjoy the same economic development incentives that have been provided to the larger companies that invest capital in Tennessee.  The proposal, SB 1203 sponsored by Senator Doug Overbey (R-Maryville), would channel $120 million to local businesses for expansion and working capital to increase jobs immediately.  Insurance companies have large pools of untapped capital.  The TSBIA is a mechanism to entice these companies to invest that capital in Tennessee small businesses.

Silver Alert System -- Legislation creating a “Silver Alert System” that would work like the “Amber Alert System” to help locate missing individuals who have Alzheimer’s disease or related dementias was approved by the General Assembly and sent to the governor for his signature. The bill, SB 532 sponsored by Senator Randy McNally (R-Oak Ridge), calls for local law enforcement agencies to coordinate with non-profit organizations such as “A Child is Missing” or the “Alzheimer’s Association” to aid in their efforts to put the program in place.  The Silver Alert would be triggered if that missing person is believed to be in danger because of environmental or weather conditions or is thought to be unable to return to safety without assistance.

Bureau of Ethics and Campaign Finance -- The General Assembly has voted to merge the Tennessee Ethics Commission and the Registry of Election Finance, keeping the boards independent but under one umbrella named the Bureau of Ethics and Campaign Finance.  The measure, SB 162 sponsored by Senator Bill Ketron (R-Murfreesboro), provides that all ethics provisions remain intact.  The Commission would have expired on July 1 unless other legislative action was taken.

Funds / Planned Parenthood – Legislation to ensure that family planning funds go to public women’s health services providers before private applicants was approved during the last week’s action.  The bill comes after a video was released showing violation of state law by Planned Parenthood of Memphis, a private provider that receives public funds for family planning services.  Approximately $1.1 million in Title 10 funds are provided to Planned Parenthood for women’s health-related services like family planning, birth control, and exams.  Although current law bans the use of the money for abortion, the Title 10 funds supplement the organization’s operations.  The legislation, SB 470 sponsored by Senator Jack Johnson (R-Franklin), says you must exhaust all other avenues in the public sector before moving to private providers. 

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Week of June 12, 2009

Capitol Hill Week

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

Senate Finance Committee passes fiscally responsible budget

(NASHVILLE, TN), June 12, 2009 –  The Senate Finance Committee has approved a fiscally responsible budget for the 2009-2010 budget year that borrows less, has more protection for the Rainy Day (savings) Fund and is closer to balancing recurring and nonrecurring expenditures.  The plan, as amended by Senate Republicans, also cuts several of the governor’s proposed tax hikes, including one on cable television boxes and a measure to increase taxes on business phone rates.

“Given the extraordinary difficulties and unpredictable economic times, this was a good effort towards balancing our budget without increasing taxes on our citizens,” said Senate Finance Committee Chairman Randy McNally (R-Oak Ridge).

The vote came after Finance Commissioner Dave Goetz told lawmakers that there was a continued decline in Tennessee’s revenues in May.  Goetz said sales taxes collected in May were 11 percent lower than the yearly average of 7 percent and franchise and excise tax collections were down 40 percent for the month.  Goetz said the revenues fall short of the governor’s revenue predictions for the budget, which were based on the most optimistic end of the state Funding Board’s predictions.  The Funding Board consists of the state’s top economic advisors.

“This is a ‘truth or consequences’ budget,” said Senate Majority Leader Mark Norris (R-Collierville).  “We must face the truth about our budget and the serious economic condition of our state or we will face even more serious consequences next year.  There is a big risk if the legislature acts as if there is not a problem.  This is painful.  We do not relish it but you cannot spend what you do don’t have.  You cannot borrow what you cannot afford to repay.”

The plan prioritizes education by fully funding the Basic Education Program, the state’s funding formula for K-12 education.  Pre-K would be kept at the same level of funding under the plan.  It also funds Tennessee’s higher education at the highest level of funding to draw down approximately $500 million in federal stimulus available through the American Recovery and Reinvestment Act.  In addition, it fully funds lottery scholarships to provide students with the opportunity to receive a college education.
 
On job growth, the legislation fully funds the economic development projects set to establish manufacturing facilities in the state including Volkswagen, Hemlock and Wacker.  The bill also fully funds the Haywood County megasite and Solar Farm in West Tennessee under action taken on the measure on Friday.

Republicans say a list of capital projects will be restored if state fiscal stabilization funds from the federal stimulus package are available or if other federal reimbursement match increases free up state dollars.  Last year, the legislature appropriated cash to fund the projects.  However, the governor held them after revenues plummeted.  This year, he proposed the $168 million in cash previously approved by the legislature for those projects be used to plug the gap in the state budget.   In turn, the governor recommended the state incur debt to fund the projects.

The action will keep Tennessee from putting these building projects on the state credit card at a time when economic conditions are unstable.   The plan uses the debt service on those bonds, at $23 million per year, for other critical budget purposes like helping the most vulnerable citizens in Tennessee, mentally ill and dependent and neglected children in need of services.

Other highlights of the budget, SB 2355, include:

• Keeping the employee pension fund actuarially sound

• Not accelerating the number of employee positions cut from the governor’s plan

• Keeping the state health insurance program fully funded

• Funding unemployment benefit increases and extended benefits

“Tennessee cannot act like Washington and just print more money,” Norris continued.  We must act responsibly as stewards of the people’s money.  We must take a fiscally responsible approach to make sure we can weather any further deterioration in our economy.”

Legislation advances in Senate Finance Committee to set up Silver Alert System to locate missing seniors with Alzheimer’s disease or related dementias

Legislation creating a “Silver Alert System” that would work like the “Amber Alert System” to help locate missing individuals who have Alzheimer’s disease or related dementias has advanced in the State Senate with approval by the Senate Finance Committee this week.  The bill, SB 532 sponsored by Senator Randy McNally (R-Oak Ridge), calls for local law enforcement agencies to coordinate with non-profit organizations such as “A Child is Missing” or the “Alzheimer’s Association” to aid in their efforts to put the program in place.

“We already have much of the framework through the Amber Alert Program to put a Silver Alert Program in place,” said Senator McNally.  “Like the national Amber Alert program, this bill calls on local law enforcement agencies to work in tandem with the media and transportation officials in alerting the public of a missing senior.”

The bill defines “missing senior citizen” as a person 60 years or older whose “whereabouts are unknown” and who has “an impaired mental condition as determined by a local law enforcement agency.”  The Silver Alert would be triggered if that missing person is believed to be in danger because of environmental or weather conditions or is thought to be unable to return to safety without assistance.

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

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

“There is a critical 24-hour time period in which to locate missing seniors,” added McNally.  “The Silver Alert program is designed to disseminate quickly descriptive information about the missing person so that citizens in the affected area can be on the lookout for the endangered person and notify local law enforcement with any relevant information.”

“This legislation brings a community to the aid of our seniors in such a crisis to take advantage of the short window of time needed to bring these vulnerable citizens home to avert a tragedy,” McNally concluded.

Senate Finance Committee approves legislation to form
Bureau of Ethics and Campaign Finance
Language in bill keeps Ethics Board independent

The Senate Finance Committee has voted to merge the Tennessee Ethics Commission and the Registry of Election Finance, keeping the boards independent but under one umbrella named the Bureau of Ethics and Campaign Finance.  The measure, if approved by the full Senate, continues the commission and provides that all ethics provisions remain in tact. 

A separate bill to continue the Commission in its current form was taken off notice in the House of Representatives.  The Commission will expire July 1 unless other legislative action is taken.

“The language of the bill provides that there will be two boards that are still independent,” said Senator Bill Ketron (R-Murfreesboro), who sponsored the legislation.  “Not one law or one rule is abolished or diluted under the bill.  This legislation allows the two boards to share resources, which will save the state money.”

The Bureau will be composed of two independent divisions, the Tennessee Registry of Election Finance and the Tennessee Ethics Commission.  It will be governed by a board of directors composed of six members of the Registry of Election Finance and six members of the Ethics Commission.  The Bureau will remain attached to the Secretary of State’s Office. 

Dick Williams, State Chairman of Common Cause, a watchdog agency for matter pertaining to open government and ethics, agreed with Ketron that the bill did not weaken current ethics legislation.  “This is a good way to handle a situation of concern to everybody,” said Williams.

Resolution sends message Tennessee does not want to house GITMO Detainees

The Tennessee State Senate voted this week to oppose bringing any detainees now housed at the Guantanamo Bay, Cuba detention facility into any Tennessee prisons.  The Resolution, SJR 381, is sponsored by Senator Jim Tracy (R-Shelbyville).

“This is just an action to prevent the transfer or release of known terrorists into our backyard in Tennessee,” said Senator Tracy.  “Our citizens are opposed to bringing these detainees into our state.”

The bill expresses opposition to the utilization of any local, state, federal or private jail, prison or detention facility in Tennessee.  A copy of the resolution will be sent to President Barak Obama and each member of Tennessee’s Congressional Delegation.

 “This resolution is meant to send Congress a message that we do not want them housed in our state,” Tracy added.  “I am pleased it received overwhelming approval in our State Senate.”

The resolution was approved by a vote of 29 to 1.  The bill is still pending action in the House of Representatives.

Senate passes and sends to governor legislation preventing any locality in Tennessee from becoming a “sanctuary city” for illegal aliens

State Senator Jim Tracy (R-Shelbyville) won passage this week of legislation preventing any city in Tennessee from becoming a “sanctuary city” for illegal aliens.  A “sanctuary city” is a term given to a city in the United States that follows certain practices to protect illegal aliens. Thirty-eight cities in the U.S. have been recognized as sanctuary cities, but many sources have identified over 200 city or county governments nationwide as having practiced such policies.

The measure prohibits local governments or the head of such localities from passing any ordinances or policies that allows for a sanctuary city to be located in Tennessee.   The bill is designed to be a pre-emptive strike to guard against the adoption of any policies to protect those who are in the United States illegally.  It also urges the State Attorney General and local governments to pursue any federal funds allocated to combat illegal immigration.

“This legislation will prevent any town from even considering becoming a sanctuary city,” said Senator Tracy.  “There is a high cost to illegal immigration for our cities, counties and state.  I am pleased this legislation was approved.”

The bill, SB 1310, now goes to the governor for his signature.

State Senate passes and sends to governor bill to extend service of school buses

The State Senate has approved legislation sponsored by Senator Ken Yager (R-Harriman) authorizing local education agencies (LEAs) to extend the use of school buses for two more years as long as they do not exceed 200,000 miles and meet certain safety requirements.  The legislation, SB 23, gives school boards more tools to plan their transportation budget needs.

“This bill saves local governments money while enhancing safety for students riding the buses due to increased inspections for these vehicles,” said Senator Yager.  “It is a win-win situation for all concerned.”

Currently, education boards may use a school bus for 12 years, at which time the Commissioner of Education may grant waivers for an additional three years on a year-to-year basis upon meeting the requirements similar to those of conventional school buses.  Under the bill, LEAs would be authorized to ask for a waiver to use a bus up to 17 years, as long as it does not exceed the 200,000-mile cap and is inspected at least twice annually.  The inspectors could mandate needed repairs. 

Any bus reaching the 200,000 limit would have to be replaced within 90 days.  The local agencies would be required to maintain records of all actions and safety inspections performed on the bus from its in-service date for the Tennessee Department of Safety. 

“School buses are built to last a long time provided they are serviced regularly,” added Yager.  “I am pleased we came to a resolution on this legislation that will help our local governments in planning their transportation needs and makes sure we put safety first for our students.”

Bills in Brief

Election Commission -- Two new Republican commissioners were added to the Tennessee Election Commission after the nominees were confirmed in a joint legislative session of the General Assembly this week.   The move to place the two members, Kent Younce of LaFollette and Judy Blackburn of Morristown, on the Commission honors a long-standing state law to give the majority party in the Tennessee General Assembly a one vote edge on the State Election Commission.  Republicans took control of both houses of the State Legislature as a result of the vote last November.  Blackburn is the first woman in Tennessee history to serve on the State Election Commission. 

Tennessee Transportation Infrastructure Fund -- Legislation that would provide a vehicle for local governments to finance and complete local transportation projects was approved by the full Senate this week.  The bill would give local governments the option of applying for a low interest loan for eligible infrastructure projects with flexible repayment terms.  The State Transportation Infrastructure Fund would also let Tennessee make application for a portion of $200 million in stimulus funds recently made available through the American Recovery and Reinvestment Act.  The bill, SB 2120 sponsored by Senator Mark Norris (R-Collierville), now goes to the governor for his signature. 

Jobs / Climate Change -- The State Senate voted this week to approve a House Joint Resolution stating Tennessee should only combat global climate change and reduce the emission of greenhouse gases if a plan for doing so were structured in a manner to promote jobs; avoid imposing higher energy prices; reward early adopters of efficient practices and technologies; monitor and prevent "emissions leakage"; and champion and ensure the continued global competitiveness of American industry.  Tennessee has already lost 106,600 manufacturing jobs since 2000.  Manufacturing accounts for $40.9 billion of Tennessee gross state product.  The resolution, HJR 323, was sponsored in the Senate by Senator Steve Southerland (R-Morristown)

Family law / soldiers  -- A bill that would allow military personnel who have child visitation rights under a divorce decree to petition the court to transfer those rights to a relative when he or she is sent overseas cleared the full Senate this week.   The bill, SB 1267 sponsored by Senator Dewayne Bunch (R-Cleveland), authorizes a court to grant a parent's petition to assign visitation rights to a relative if the court finds that the visitation would be in the child's best interests.  The bill now goes to the governor for his signature.

Tennessee declares state’s sovereignty -- The full Senate voted to approve a resolution claiming Tennessee’s “sovereignty under the Tenth Amendment to the Constitution of the United States.”  The proposal, HJR 108, is designed to send Congress a message that the federal government has overstepped its Constitutional bounds by mandating a massive amount of federal policies upon the states in violation of the Amendment.  The language of the Tenth Amendment is clear and concise that the federal government’s powers are limited to a specific set of activities.  Twenty-eight states have approved similar resolutions. 

TVA / ALCOA-- Legislation was approved this week in the State Senate urging the Tennessee Valley Authority (TVA) Board of Directors to enter into a long-term contract with Aluminum Company of America (Alcoa).  The resolution, SJR 622 sponsored by Senator Doug Overbey (R-Maryville), sends a message to Congress and the TVA that Tennessee believes it is critical to finalize this contract.  Approximately 500 jobs are dependent on restarting the smelter at Alcoa, which is in turn, dependent upon completion of a competitive long-term power contract.  The bill calls for the resolution to be delivered to TVA’s Board of Directors and each member of the Tennessee Congressional delegation.

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Week of June 3, 2009

Capitol Hill Week

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

Legislature passes key bills as lawmakers look to close 2009 session next week

(NASHVILLE, TN), June 4, 2009 – The Tennessee State Senate passed several key bills this week, including anti-crime measures, second amendment rights bills, energy legislation and a major transportation bill as the 2009 session of the Tennessee General Assembly draws to a close.  The legislature has completed the vast majority of its business while awaiting Governor Phil Bredesen’s amended budget package.  That package includes the appropriations amendment, “omnibus budget bill” and “technical corrections bill.”  The General Assembly will also take up any remaining legislation that has a fiscal impact on the budget at the same time or directly after the financial package is considered. 

The appropriations bill is the legislation that proposes state government spending for the next fiscal year that begins on July 1.  The “omnibus bill” would put language into the law allowing the administration to transfer funds from specific state government programs to be used in the general fund to help fill budget shortfalls.  It also delays pay raises for certain employees that are mandated by state law, and contains some tax increases, like one proposed for Health Maintenance Organizations (HMOs).  The “technical corrections bill” is a mixed bag of financial proposals that often accompanies the budget.  Generally, it also contains any proposed tax increases, as well as any tax credits proposed in the budget, among other provisions.

The General Assembly will study the governor’s financial spending package next week and make any needed changes.  Expect the legislature to focus almost entirely on the budget during the remaining days of the 2009 legislative session.  

Tennessee Transportation Infrastructure Fund bill advances

Legislation that would provide a vehicle for local governments to finance and complete local transportation projects was approved in the Senate Finance Committee this week.  The bill would give local governments the option of applying for a low interest loan for eligible infrastructure projects with flexible repayment terms.  The State Transportation Infrastructure Fund would also let Tennessee make application for a portion of $200 million in stimulus funds recently made available through the American Recovery and Reinvestment Act.

"There are more projects that need funding than there is funding available," said Senate Majority Leader Norris (R-Collierville).  "One of the frustrations with stimulus money is that we can't put it in the bank, and that we have to spend it right now."

The state formed an infrastructure bank in 1998 within the Department of Transportation to capitalize on funds available for pilot projects.  However, only one project has been financed by the bank since that time, even though there are about $2 million in funds available. 

The legislation would place the Infrastructure Fund under the purview of the Tennessee Local Development Authority (TLDA).  Prior to reaching the TLDA, applications will be reviewed by the Commissioner of the Tennessee Department of Transportation. 

Thirty-three states have infrastructure banks, with two-thirds having a board which is responsible for project approval and oversight.  The bill, SB 2120, now goes to the full Senate Transportation for final approval. 

General Assembly overrides Governor’s veto /
Bill allows law-abiding handgun permit holders to “carry” into establishments serving alcohol provided they do not consume alcoholic beverages

The Senate voted 21 to 9 on Thursday to override Governor Phil Bredesen’s veto of legislation that would allow law-abiding handgun permit holders to “carry” into restaurants or other establishments serving alcohol.  The measure would apply as long as the owners of the premises have not posted notification that guns are banned and that the legal permit holder abides by current law which prohibits them from drinking alcoholic beverages while carrying their firearm.   

Those who are in possession of a handgun are already prohibited from consuming alcohol or face a Class A misdemeanor, which carries a $2,000 fine and up to 11 months and 29 days in jail.  The permit holders are screened through background checks conducted by the Tennessee Bureau of Investigation.

The bill upholds the Second Amendment rights of Tennesseeans to possess a firearm.  That right was upheld last year in the landmark case of Heller vs. U.S. in which the U.S. Supreme Court ruled that the Second Amendment to the U.S. Constitution protects an individual's right to possess a firearm for private use.

The vote to override the bill was taken as crime victim Nicki Goeser, who supported the action, looked on from the floor of the Senate.  Goeser’s husband Ben Goeser was shot and killed by Hank Calvin Wise in April in the Karaoke business he managed.  There were about 50 people inside the business when the shooting occurred.  Nicki Goeser and patrons who watched as the crime occurred were prevented from carrying a weapon in the establishment under current Tennessee law.  

The sponsor also read letters of support from chiefs of police and sheriffs, who support the legislation.  One of the reasons cited was the impeccable record of responsibility practiced by legal permit holders both in Tennessee and nationwide.

Thirty-six other states, including Tennessee’s neighbors, have a law that allows for legal permit holders to carry their firearms into restaurants or bars that serve alcohol.  There has been no move to repeal the law by any of those states due to responsible gun ownership by permit holders.   The bill is one of several proposals in the General Assembly being considered this year to allow citizens to exercise their Second Amendment rights.

The House of Representatives also voted 69 to 27 to override the veto this week.  The bill goes into effect 40 days from today, which is July 14.

Legislature passes “Tennessee Firearms Freedom Act”

The State Senate approved the “Tennessee Firearms Freedom Act” this week aimed at restoring states’ control of intra-state commerce and the regulation of firearms manufactured and sold within Tennessee.  The bill, SB 1610 sponsored by Senator Beavers (R-Mt. Juliet), was proposed to prevent a federal attempt to legislate beyond the Constitutional limits of Congress under the Tenth Amendment.

“Be it the federal government mandating changes in order for states to receive federal funds or telling us how to regulate commerce contained completely within this state – enough is enough,” said Judiciary Chairman Mae Beavers, sponsor of the bill. 

The Tennessee Firearms Freedom Act asserts that if a firearm or ammunition is made totally within the state of Tennessee and stamped “Made in Tennessee,” then the federal government has no jurisdiction over that item in any fashion so long as it remains in state and outside of interstate commerce.  All state regulations applying to the possession of firearms in Tennessee would still be applicable and must be complied with.

Legislation makes it easier to prosecute those selling alcohol to intoxicated patrons

The State Senate approved legislation this week to clarify Tennessee law to make it easier for District Attorneys in the state to prosecute irresponsible businesses that serve alcohol to a person who is “visibly” intoxicated.  The bill will also make it easier for a person who is injured by a drunk driver to recover damages.

The legislation, SB 1939 sponsored by Senator Mike Faulk (R-Church Hill), works in concert with SB 1947 which has already been signed into law to clarify three different criminal statutes dealing with selling alcoholic beverages to intoxicated persons. 

The Alcoholic Beverage Commission already has a definition for “visibly intoxicated” that would be the standard under the two bills passed this year.  The Commission is responsible for providing the course needed before a server can serve alcohol.

“These bills clear up any ambiguity about what defines a visibly intoxicated person under Tennessee law,” added Faulk.   “It should also help in deterring an irresponsible business from serving alcohol to someone who is intoxicated and could end up killing someone if the drunken patron drives an automobile.”

Similarly, adults who knowingly allow youths aged 18 to 21 to drink alcoholic beverages could be prosecuted under a law that was approved by State Senators this week.  The bill, SB 38, sponsored by Senator Jim Tracy (R-Shelbyville), closes a loophole in the current law regarding underage drinking by applying it to all youths banned from consuming alcohol under Tennessee law.

Legislation approved cracks down on money laundering

The Tennessee State Senate has approved legislation sponsored by Senator Doug Overbey (R-Maryville) that allows a court to take the ill-gotten gains of criminals who are convicted under Tennessee’s money laundering law.  The bill, SB 784, defines the term “proceeds” of the criminal activity as interpreted by the U.S. Supreme Court in the decision U.S. v. Santos.

“Currently, our state law does not provide for a definition in accordance with the U.S. Supreme Court’s Santos decision that would allow for law enforcement to go after the gross proceeds of ill-gotten gains of criminals who are convicted of laundering money,” said Senator Overbey.  “This bill cures that problem by defining the term “proceeds” and “gross proceeds” used under the law, so that criminals cannot keep assets gained by their illegal activities and can be prosecuted to the full extent of the law.”

The legislation defines “proceeds” to include “gross proceeds” to make it a crime to engage in a financial transaction of certain specified unlawful activities with the intent to promote those activities or to conceal the proceeds.  The proceeds include any real, personal or intangible property of any kind connected to the illegal activity.

The Santos case involved the conviction in Indiana federal court of running an illegal gambling business and money laundering. Because Santos’s conviction was based on evidence that he used gross receipts, not profits, to promote his gambling ring, the District Court overturned his money laundering conviction, which was later upheld by the U.S. Supreme Court.  The court ruling meant that to prove money laundering, the government is required to show that profits from the underlying illegal activity were used to further promote or conceal that activity.

“We cannot allow criminals to run a money laundering operation, shelter their profits, and get away with their crime,” said Senator Overbey.  “This bill cures a defect in Tennessee law and gives it the teeth it needs to crack down on these criminals.”

Education Committee recommends lottery scholarship language be added to Budget bill

The Senate Education Committee sent a report to members of the Senate Finance Committee on Monday regarding the direction of lottery scholarship funds.  The report provides language to be inserted into the budget, or appropriations bill, that requires Tennessee Student Assistance Corporation (TSAC) to give the General Assembly 90 days notice before drawing out any funds from the long term fixed investments. 

Approximately $321 million has been placed in the Lottery for Education long term investment account according to Tennessee State Treasurer David Lillard, with the interest obligated to support $17 million in scholarship awards.  There is approximately $101 million in Lottery for Education short term investment accounts.    

The Committee also recommended language be inserted into the budget bill to ban approval of bonuses for any Lottery Corporation employee in a year in which lottery revenues are flat or declining.   Gross sales for the lottery have totaled $902 million through April 30 as compared to $894 million last year.  Lottery executives told lawmakers on the committee they expect the revenues to “remain constant or flat.”

Finally, the report recommended the Funding Board make lottery revenue projections for the current and next four fiscal years.  Under the plan, the Funding Board would meet prior to December 15 to project the funding needs of the lottery scholarship and grant program for the current and succeeding four fiscal years.  This action would help the General Assembly plan any course of action needed during the following legislative session.  

Lottery proceeds for education are estimated to be $269 million for the 2009-10 fiscal year, while proceeds for after-school programs are expected to be approximately $13.2 million.

“In a time of economic contraction it is imperative that long range projections are used to keep the programs on track,” said Senate Education Chairman Dolores Gresham (R-Somerville), who sponsored the report. The members of the Education Committee were concerned that Tennessee take a fiscally conservative approach to the Lottery budget. The awards and scholarships made to our students are very important to all of us. We want to maintain a conservative and rational approach to the distributions of funds according to the priorities laid out in the Constitution.”

Senate passes legislation to “shore up” state’s declining Unemployment Fund

The full Senate has approved legislation to “shore up” Tennessee’s declining Unemployment Trust Fund and to enable the state to draw down $141 million in stimulus funds.  The state was required to enact three costly options from a menu of five expansions of benefits to receive stimulus funds under the American Recovery and Reinvestment Act (ARRA).  Following the requirement, the unemployment bill reduces the time period in which applicants must work to be determined eligible, changes the number of hours for eligibility for part-time workers from 32 to 20, and increases payments to applicants with dependents. 

The federal stimulus law does not allow states to automatically “sunset” the expansion of benefits when the stimulus money is exhausted.  The Department of Labor has determined the bill will cost Tennessee approximately $30 million per year, when the stimulus funds dry up, which causes some to have future concerns for the solvency of the fund. 

In addition, the unemployment bill would increase unemployment insurance to maintain solvency of the fund by raising the taxable wage base to $9,000 from $7,000 triggered by the amount of money remaining in the fund and adopts a 0.6 percent premium charge. 

The current Trust Fund stands at approximately $200 million.  With unemployment at 9.1 percent in Tennessee, there is a tremendous increase in benefit claims.  Insolvency would mean federal control of the state’s fund, meaning Washington could dictate future tax rates and wage base thresholds.  It would also mean mandatory borrowing with interest from the federal government that could cost businesses more in the long run according to the Bredesen administration.  The legislation would generate $220 million in new revenues, a level which Labor Commissioner James Neely says would keep Tennessee from going “into the red” and borrowing from the federal government at interest rates of up to 25 percent.

Bills in Brief

Abortion Resolution -- The Senate voted 24 to 9 to accept a minor House Amendment and send to the governor a resolution to give Tennesseans the opportunity to restore their voice in determining what state law should be regarding commonsense protections for abortions.  The resolution, SJR 127 sponsored by Senator Diane Black (R-Gallatin), would allow citizens to amend Tennessee's Constitution to say that the right to an abortion is only protected under the U.S. Constitution as interpreted by the U.S. Supreme Court.  The practical effect of the legislation would be to bring Tennessee back into a position of neutrality so the people’s elected representatives can decide within the bounds of federal decisions what protections can be put into place.

Domestic Violence – The State Senate approved two bills this week dealing with domestic violence.  One bill, SB 1094 sponsored by Senator Paul Stanley (R-Germantown), provides for a tenth court to hear domestic violence cases in Shelby County.  The second bill, SB 314 sponsored by Senator Diane Black (R-Gallatin), sets forth a process for surrender of a firearm in cases where an order of protection has been granted in domestic violence cases.   That bill came back to the Senate for approval of a House Amendment and now goes to the governor for his signature.  The legislation aims to prevent further violence by setting up a procedure for the person to hand the gun over to a third party.   The possession of a firearm while under an order of protection is an offense under federal law. 

Uniform Debt Management Services Act -- The State Senate approved an amendment and sent to the governor comprehensive legislation sponsored by Senator Doug Overbey (R-Maryville) to benefit Tennessee consumers who utilize the services of debt management specialists.  The legislation, SB 812, requires a debt management company in Tennessee to obtain a license and supply information about their practices, fees, educational materials and employee qualifications.  A company must also post a surety bond or another security to safeguard any money that it receives from individuals for payment of creditors.  In addition, the debt management company must provide a disclosure to consumers that this may not be the best option for them and that it may affect their credit rating. 

Trespassing – Two bills dealing with landowners and their responsibility when trespassers come onto their property were approved this week.  One bill, SB 679 sponsored by Speaker Pro Tempore Jamie Woodson (R-Knoxville), amends Tennessee’s criminal trespass law to shift the burden from individual property owners to the alleged trespassers.  Current statute requires extensive posting and signage, and this bill shifts that burden to the individual who will be required to know if he/she has permission to be on the land.  Farmland can prove to be especially difficult to post, and this bill will protect farmers to ensure that trespassers are held accountable for their actions.

The second bill, SB 2102 sponsored by Senator Bo Watson (R-Chattanooga), addresses problems experienced by landowners and farmers where ATV riders or others have trespassed on private property.  Under current law, if a trespasser is harmed by a dangerous condition created by a force of nature, like a ditch produced by heavy rainfall, the landowner could be responsible regardless of whether or not the person harmed was invited.  This legislation seeks to remedy that action by protecting landowners when the condition is one created by natural forces.

State Election Commission -- The full Senate has approved legislation to update the political composition of the State Election Commission to reflect a Republican majority as a result of the 2008 election.  State law currently requires that the political composition of the five-member State Election Commission be three members of the majority party and two members of the minority party.  Under the bill, SB 547 sponsored by Senate Majority Leader Mark Norris (R-Collierville), the new members would rotate off the Commission in two years when their terms of office expire.  The make-up of the board would consequently return to a five-member status after that time.  A Joint Convention will be held on Wednesday, June 10, to vote on the two new members of the Commission.
 
Cap and Trade -- A resolution expressing Tennessee’s opposition to a federal proposal that would establish a carbon cap-and-trade system has been approved on final consideration in the State Senate.  The measure, SJR 327 sponsored by Senator Jack Johnson (R-Franklin), comes after senior U.S. administration officials indicated that if Congress does not pass comprehensive legislation providing for a cap-and-trade system to regulate greenhouse gas emissions they will press ahead unilaterally with proposals using the Environmental Protection Agency’s (EPA) existing authority under the Clean Air Act.

Government transparency -- Legislation to provide oversight for Tennessee’s government transparency website has passed on the floor of the Senate.  The bill, SB 149 sponsored by Senator Bill Ketron (R-Murfreesboro), would make the website subject to audit by the State Comptroller’s office.  Republicans have pushed for years to implement an open government website where citizens can see how tax revenues are spent.  The website was finally implemented earlier this year.  This legislation will simply make sure there is oversight of the website.

Traffic Cameras -- The State Senate has voted to prohibit the use of surveillance cameras on federal interstate highways except for department of transportation designated work zones. The measure, SB 1502 sponsored by Senator Tim Burchett (R-Knoxville) does not apply to Smart Way cameras or other intelligent transportation system cameras operated by the Department of Transportation.

Energy initiative – The State Senate has approved legislation aimed at drawing down stimulus funds for energy efficiency in Tennessee.  Key components of the bill, SB 2300, include requiring state government to “lead by example” with improved energy management of its buildings and passenger motor vehicle fleet.  It also encourages job creation in the clean energy technology sector by making qualified businesses eligible for Tennessee’s existing emerging industry tax credit.  In addition it promotes energy efficiency in newly constructed homes with a limited statewide residential building code and expanding eligibility for federal funds used to “weatherize” existing homes in low-income areas.

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Week of May 28, 2009

Capitol Hill Week

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

New Budget Plan is unveiled

(NASHVILLE, TN), May 28, 2009 –  On Capitol Hill this week, the Bredesen administration presented lawmakers with a preview of its new budget amendment, which is expected to be filed on Friday.  A preliminary overview of the plan shows that the proposal acknowledges $111.7 million less in revenues from the revision presented earlier this year for the current fiscal year and $161 million less than the 2009-2010 budget year which will go into effect on July 1.

The new budget amendment comes after the State Funding Board adjusted downward its previous estimates for total state taxes over the next 14 months, due to a more dramatic decline in revenue collections than previously anticipated.  State Finance Commissioner Dave Goetz told members of the Senate Finance Committee in a briefing that the budget amendment was revised based on the most optimistic end of the new range estimated by the Funding Board. 

The reduction in revenue is needed to balance the state’s budget despite the influx of over $5 billion in federal stimulus funds over the next two years.  Most of those funds are required to be spent for specific purposes like energy-saving initiatives, road construction and education, with only a small portion available to help economically distressed states meet their budget needs.  Other stimulus funds have strings attached which require some states to spend additional money to access available stimulus dollars.  The stimulus funds will dry up by 2011, making next year’s state budget even more challenging to meet recurring state government expenses. 

The administration’s amendment includes abolishing 717 filled state government positions and 676 vacant jobs.  It also includes raising funds to fill the budget gap, with the most significant increase coming from allowing the Department of Revenue to assume collection of the business gross receipts tax now being collected by the counties.  The plan is expected to generate $21 million to the state and $25 million to local governments.  The new Bredesen amendment also proposes placing a sales tax on cable boxes, raising the long distance tax on businesses from 7.2 percent to 9.25 percent and making software maintenance and warranty agreements signed outside of Tennessee applicable to the sales tax.  Those three proposals would raise $2 million, $6 million and $9 million, respectively.

The reduction in state employees would save the state an estimated $30 million.  State employees cut under the plan would be offered a severance package that includes tuition assistance of up to $5,400 per year and a cash payment.  Goetz told committee members the affected employees could apply for assistance to help offset the costs of continuing their health insurance benefits through COBRA. 

The new budget plan reflects a significant increase in the amount of money Tennessee will receive from the federal America Recovery and Reinvestment Act (ARRA) in unemployment assistance.  The state unemployment rate increased in April to 9.9 percent.  The rate is the highest it has been in 25 years and almost four points higher than this time last year.  This qualifies Tennessee for the highest category of enhanced matching stimulus funds under the ARRA Act.  The funds are expected to free up $16 million in the fourth quarter of the current budget year and $59.5 million state dollars that will no longer be necessary to draw down stimulus funds next year. 

Other highlights of the plan include spending $162 million in Rainy Day Funds to bridge the gap in the current budget year and $42 million in the 2009-10 budget year.  Approximately $127 million in TennCare Reserves would also be used to plug the hole in the current fiscal year and $6 million next year.

The budget is typically among the last bills passed by the legislature before adjournment.  The General Assembly will carefully review language in the amendment in the Senate Finance Committee next week and make any needed changes before the bill goes to the full body for final consideration.

Senate approves new method for selecting the state’s appellate and Supreme Court Judges

The State Senate has approved legislation that provides a new method for selecting the state’s appellate and Supreme Court Judges after a spirited debate on the matter this legislative session.  The action comes as the Judicial Selection Commission, a component of Tennessee’s current plan for appointing judges, is set to expire next month.  Under that plan, called the Tennessee Plan, the commission that nominates judges is selected from lists submitted by various legal organizations to the Speakers of the House and Senate and governor.

The bill, SB 1573 sponsored by Senator Jamie Woodson (R-Knoxville) and Majority Leader Mark Norris (R-Collierville), sets up a new Nominating Commission with fewer attorney members and special interest input.  Norris said he will continue to pursue a separate measure that would call for a Constitutional Convention to let the people decide whether or not they want to elect popularly the judges or opt to continue a system of nomination by a commission, followed by a retention vote from voters.

Tennessee’s Constitution says judges must be “elected by the qualified voters of the state.”  The debate in the legislature has focused on whether or not the selection process with a retention vote meets that test.

“This legislation gets us from where we are to where we need to be for proper administration of justice,” said Norris.   “It represents an amalgamation or compromise of ideas.” 

The legislation provides for a 17-member Judicial Nominating Commission that would have at least 10 attorney members.  After being appointed through this process, the judges would stand for approval by the voters who could decide whether or not to "retain" or "replace" them.  Currently, citizens vote “yes” or “no” on the ballot regarding the retention of judges. 

If voters decide to replace a judge, an interim judge would be appointed by the governor until the next election.  At that point, the people could decide who would fill the slot through a popular election, which is the same process by which the state’s trial judges are currently selected. 

The bill also bans lobbyists or employers of lobbyists from serving on the Nominating Commission.  Finally, the legislation provides public access to every aspect of the nominating process.       

“Good Samaritan” legislation calling for witnesses to
report a violent crime against a child meets Senate Approval

The Senate has approved legislation to require a witness to report a crime against a child under the age of 13 where serious bodily harm or death concurs from a sexual assault. 

The bill, SB 520 sponsored by Senator Randy McNally (R-Oak Ridge), comes after several cases of unreported violent crime nationwide, with the most famous being one in Nevada where  Jeremy Strohmeyer followed a seven-year old girl to a Las Vegas building.   Strohmeyer played hide and seek with the girl, eventually following her into the restroom where he sexually assaulted and murdered her.  Strohmeyer’s friend, David Cash, saw the man pursue the girl and even followed them into the restroom where he saw the girl struggle. 

Cash, who failed to report the crime to anyone, was not charged by authorities since he did not take any affirmative action to cover up the crime. He later made public statements indicating he felt no remorse for failure to report the crime and, in fact, bragged about his notoriety in the case. 

This bill would make it a Class B misdemeanor for persons not to report this serious crime involving a child to law enforcement authorities if they witness such an act that results in serious bodily injury.   If the child dies, it would be a Class A misdemeanor.

In other action this week, the State Senate gave final approval to a bill to allow videotaped interviews of abused children conducted by a forensic interviewer to be admissible in court.  Currently any time a charge of child sexual abuse comes up, the child is brought to a Child Advocacy Center to be interviewed on videotape by a forensic interviewer, a licensed professional who is trained to interview children regarding the alleged abuse.  This bill defines forensic interviewer and the circumstances upon which those tapes would be admissible in a court of law.  The bill, SB 312, is sponsored by Senator Diane Black (R-Gallatin).

Bill aims to prevent “Sanctuary Cities” for illegal aliens in Tennessee

The Senate State and Local Government Committee approved a bill this week aimed at preventing any city in Tennessee from becoming a “sanctuary city” for illegal aliens.  A “sanctuary city” is a term given to a city in the United States that follows certain practices to protect illegal aliens. Thirty-eight cities in the U.S. have been recognized as sanctuary cities, but many sources have identified over 200 city or county governments nationwide as having practiced such policies.

The measure, SB 1310 sponsored by Senator Jim Tracy (R-Shelbyville), prohibits local governments, or the head of such localities, from passing any ordinances or policies that allows for a sanctuary city to be located in Tennessee.   The bill is designed to be a pre-emptive strike to guard against the adoptions of any policies to protect those who are in the United States illegally.

“This legislation will prevent any city from even considering becoming a sanctuary city,” said Senator Tracy.  “There is a high cost to illegal immigration for our cities, counties and state.”

House approves bill to give Republicans majority on State Election Commission

Republicans won a significant victory this week with passage of legislation in the House of Representatives that honors Tennessee’s current law to give the majority party in the Tennessee General Assembly a one vote edge on the State Election Commission.  The action comes as a result of the November elections when Republicans took control of both houses of the State Legislature.

“The Democrat majority put the state law into place and had no problem abiding by it until Republicans took control,” said Senate Majority Leader Mark Norris (R-Collierville), who is the sponsor of the legislation.  “They wanted to maintain their control despite the fact that it is clearly in violation of state law and does not recognize the fact that the people of Tennessee voted for new representation in our State Legislature.”

The bill, which has already been approved in the Senate, temporarily adds two Republicans to the State Election Commission to provide a four to three Republican majority. The Commission currently has a three to two Democratic majority.  The bill contains a provision to automatically give the majority party the one-vote advantage if the power shifts in the future.   Current Tennessee law also provides that the majority party shall have control of all 95 election commissions at the county level.  

House Democrats had threatened to bottle up the bill in House committees where there is an even number of Democrats and Republicans.  Legislation must receive a majority vote to advance to the floor of the House, where it was approved today along party lines.  Norris had declared that, if House Democrats continued to hold up approval of the bill, Senate Republicans would not vote to continue the existence of the Election Commission, which was up for sunset review.    

“This was a simple matter which should have been taken care of months ago in accordance with state law,” Norris continued.  “I am pleased that it has passed the House and expect the Senate to take it up for adoption of a House amendment next week.  Hopefully, the two new members can be seated on the Election Commission before we adjourn our 2009 legislative session.”

Bills in Brief

Auto Consumers / Dealers -- The full Senate has approved legislation to help ensure that monies paid or obligations owed are fulfilled in the event of a manufacturer bankruptcy. The legislation, SB 516, works to help ensure there are uninterrupted warranty repairs or maintenance for Tennessee consumers in the event of a manufacturer bankruptcy.  It also protects consumer rights under the Tennessee Lemon Law and ensures obligations owed to dealers for customer rebates, employee buy-out vouchers, and warranty repair payments are paid. 
 
Family law / soldiers  -- A bill that would allow military personnel who have child visitation rights under a divorce decree to transfer those rights to a relative when he or she is sent overseas cleared the Senate Judiciary Committee this week this week.   The bill, SB 1267 sponsored by Senator Dewayne Bunch (R-Cleveland), authorizes a court to grant a parent's petition to assign visitation rights to a relative if the court finds that the visitation would be in the child's best interests.

Preferred Provider Organization Transparency Act -- The Senate Finance and Commerce Committee has approved legislation this week named the “Preferred Provider Organization Transparency Act.”  The bill makes sure that health care providers who contract with health insurance plans have full knowledge of any assignment of their contract to entities associated with the insurance company with whom they would be paid.  Under the bill, SB 693, sponsored by Senator Steve Southerland (R-Morristown), the third party would be required to inform the contracting health care provider of a Web site on which they may get information about any changes in the health plan status.  This includes to whom the third party has granted access to the provider's health care services and contractual discounts.  The bill will also help doctors know to whom they can address any problems.

Ethics / Government Contracts – The State and Local Government Committee has approved an ethics bill this week which would make sure officials negotiating contracts are not receiving employment with that firm as a “payback.”   The legislation, SB 1505 sponsored by Senator Tim Burchett (R-Knoxville), prohibits members of the General Assembly, state constitutional officers, the Governor, or officials in the executive branch of government who have negotiated with a vendor on the state’s behalf on a contract valued at $5 million or more from seeking employment with that vendor for a year upon leaving state employment.

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Week of May 21, 2009

Capitol Hill Week

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

Senate continues to work on tough issues facing 2009 legislative session

(NASHVILLE, TN), May 21, 2009 – Tennessee lawmakers continued to make progress on Capitol Hill this week on some of the toughest issues facing the legislature in the 2009 legislative session, including judicial selection and the state’s unemployment compensation fund.  However, the biggest legislative hurdle before adjournment is the state’s budget, which is currently being revised by Governor Phil Bredesen to reflect the loss of another $160 to $300 million in anticipated revenues.

Funding Board lowers estimates -- Senate Finance Committee members were briefed by State Comptroller Justin Wilson regarding the latest figures from the state’s Funding Board, which lowered its estimates last week on what the state can expect to receive in revenues for current budget year and the one set to begin on July 1.  The Board revised its estimates after April revenues showed a six to seven percent shortfall in sales tax collections and a 23 percent decline in the state’s franchise taxes.

The Funding Board, comprised of the state’s top economists, said Tennessee has continued to experience a major decline in big ticket sales, which has negatively impacted the state’s sales and privilege tax collections.  The economists do not expect to see improvement in revenues until the first quarter of the next fiscal year and forecasted a continued decline until that time.

Wilson said that Board’s new estimates for total state taxes show a range of decrease in revenues as low as -9.0 percent, to a high of -8.50 percent for the current budget year.  The Board expects only a slight improvement in total state taxes from a low of -.75 percent to a high of .45 percent in the 2009-2010 fiscal year.

The new estimates mean the state’s budget shortfall has now grown by an additional $300 million from the Board’s previous forecast to reach a total gap of approximately $1.4 billion in the current budget year.  It also means the governor must go back to work on a plan to cut $160 to $300 million from his state spending plan to meet Tennessee’s Constitutional requirement of a balanced budget.  Lawmakers expect a new plan to adjust the budgeting needs by at least $200 million accordingly by May 29. 

The Funding Board could not predict the effects of a federal stimulus package on Tennessee’s economy over the next 14 months.  Economic experts nationwide have also shown little confidence in predicting a turnaround in the immediate future as a result of the federal American Recovery and Reinvestment Act.

Unemployment legislation advances -- Most of the federal stimulus funds contain strings that require states to use the money for mandated purposes.  It can also demand passage of legislation not enacted by state legislatures previously as a condition for receiving the stimulus money.   An example of such mandates was visible this week with passage of legislation in the Senate Finance Committee on an unemployment compensation bill designed to draw down stimulus funds. 

The unemployment bill reduces the time period in which applicants must work to be determined eligible, changes the number of hours for eligibility for part-time workers from 32 to 20, and increases payments to applicants with dependents.  The federal stimulus law does not allow states to automatically “sunset” the expansion of benefits when the stimulus money is exhausted.  The Department of Labor has determined the bill will cost Tennessee approximately $25 million per year, when the stimulus funds dry up, which causes some to have future concerns for the solvency of the fund. 

“In a sense this is the Unemployment Compensation Modernization Act that was unsuccessfully moved through Congress that has now been incorporated in the American Recovery and Reinvestment Act,” said Senator Bo Watson (R-Chattanooga).  “Once those changes have been in place, the ability to change our law back is going to be near impossible.”

In addition, the unemployment bill proposes increasing unemployment insurance to maintain solvency of the fund by raising the taxable wage base to $9,000 from $7,000 and adopting a 0.6 percent premium charge.  The legislation would also allow for 20 weeks of extended benefits utilizing stimulus funds.  

The current Trust Fund stands at just over $200 million.  Insolvency would mean federal control of the state’s fund, allowing Washington to dictate future tax rates and wage base thresholds.  It would also mean mandatory borrowing with interest from the federal government that could cost businesses more in the long run according to the Bredesen administration.  The legislation would generate $220 million in new revenues, a level which Labor Commissioner James Neely says would keep Tennessee from going “into the red” and borrowing from the federal government at interest rates of up to 25 percent.    

Judicial Nominating Commission – Several bills advanced in Senate Committees this week to revise the current method for selecting the state’s appellate and Supreme Court judges.  The action comes as the Judicial Selection Commission, a component of Tennessee’s current plan for appointing judges, is set to expire next month.  Under that plan, called the Tennessee Plan, the commission that nominates judges is selected from lists submitted by various legal organizations to the Speakers of the House and Senate and governor.

Both SB 2114 sponsored by Senate Majority Leader Mark Norris (R-Collierville), and SB 1573 sponsored by Speaker Pro-Tempore Jamie Woodson (R-Knoxville) and Norris,  provides for a 17-member Judicial Nominating Commission that would be limited to 10 attorney members.  After being appointed through this process, the judge would stand for approval by the voters who could decide whether or not to "retain" or "replace" them.  Currently, citizens vote “yes” or “no” on the ballot regarding the retention of judges. 

If voters decide to replace a judge, an interim judge would be appointed by the governor until the next election.  At that point, the people could decide who would fill the slot through a popular election, which is the same process by which the state’s trial judges are currently selected. 

Another bill, SB 1715 sponsored by Senator Doug Overbey (R-Maryville), contains the same provisions, except there is no contested elections and the governor must choose from the six nominees who come from the Nominating Commission.

All three bills provide public access to every aspect of the nominating process.  They also ban lobbyists or employers of lobbyists from serving on the Nominating Commission.     

There was an additional amendment placed on SB 2114 that allows several choices regarding the judicial process to be heard on the Senate floor.  The amendment would abolish a nominating commission and allow the governor to choose a judge, who would then stand for election by popular vote.  That amendment also contains a provision calling for citizens to vote on a limited Constitutional Convention on whether or not they want to keep the judicial selection process or elect judges through popular election.

Tennessee’s Constitution says judges must be “elected by the qualified voters of the state.”  The debate in the legislature has focused on whether or not the selection process with a retention vote meets that test.  All three bills will be heard in the Senate Finance Committee on Tuesday.  If approved there, the legislation could be on the floor as early as Thursday of next week.

Also advancing this week is legislation, SB 2168, sponsored by Senator Dewayne Bunch (R-Cleveland), that is a stop gap plan to allow the governor to fill court vacancies until an election could be held in the event legislation on the matter is not passed this year.  The back-up plan would restore selection of judges to the method that was used previous to changes made in the system in the 1970s.

Two bills advance to protect children from abuse

Two bills sponsored by Senator Tim Burchett (R-Knoxville) to protect children advanced in the State Senate this week, including one measure approved by the Senate Judiciary Committee to set up a Tennessee Second Look Commission to review cases and procedures related to child sexual abuse.

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

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

The bill, SB 1534, is one of a series of proposals promoted by actor and child protection activist David Keith, spokesman for the National Association to Protect Children.  Last week, Keith told Senate Judiciary Committee members that only two percent of the 750,000 pedophiles identified by computer in the United States have been investigated.  He said hundreds of thousands of children are being raped, tortured, filmed and traced through Internet and computer technology.

The 17-member Commission would be administered through the state’s Administrative Office of the Courts (AOC) and would submit a final report by January 1, 2011.

The second bill sponsored by Burchett and approved by the full Senate this week provides General Sessions, Circuit and Criminal Courts concurrent jurisdiction with Juvenile Courts over prosecutions of child abuse, neglect and endangerment offenses.  The legislation aims to allow a court to act more swiftly to provide protection for endangered kids.

“This gives prosecutors more flexibility to hear the case regarding an endangered child in another court,” added Burchett.   “The goal is to put the child’s welfare first.”

Currently, exclusive jurisdiction in child abuse cases is vested in Juvenile Court.  This legislation retains jurisdiction in juvenile court, but allows the prosecutors the discretion to bring the case to another court which might be more appropriate to the crime or that might be able to hear the case quicker.   

The bill, SB 1530,  now goes to the governor for his signature.

Legislation aims to provide benefits to small and medium size businesses

Legislation to establish “The Tennessee Small Business Investment Company Credit Act (TSBIA)” overcame its first hurdle with passage by the Senate Commerce Committee this week.  The bill is an effort to provide benefits to small, medium-sized, and start-up businesses that do not enjoy the same economic development incentives that have been provided to the larger companies that invest capital in Tennessee.  The bill, SB 1203, is sponsored by Senator Doug Overbey (R-Maryville).

Overbey said the bill is a proven economic development tool that will channel $120 million to local businesses for expansion and working capital to increase jobs immediately.  Insurance companies have large pools of untapped capital.  The TSBIA is a mechanism to entice these companies to invest that capital in Tennessee small businesses. 

“The TSBIA is a forward-looking economic development tool for the future growth and prosperity of a state that focuses on promising small companies and stimulates dynamic economic growth, creating new jobs and generating tax revenues,” said Sen. Overbey. “The economic impact of a TSBIA would begin almost immediately.”

Legislation encourages creation of green jobs and sustainable buildings

Legislation that would enable local governments to promote energy efficiency and sustainability was approved by the full Senate this week.  The bill, SB 1919 sponsored by Senator Jack Johnson (R-Franklin), expands local power of housing and development agencies to promote economic development through the use of tax increment financing.

“As we rebuild our economy, we should build for the future as well as the present,” said Senator Johnson.  “Real economic growth is sustainable growth, and green jobs are an important part of our future.” 

The legislation creates incentives for local governments to use tax increment financing to pay for energy efficiency costs, encourages sustainable design by including Green Globes and LEED-certification costs within the financing package, and promotes local alternative energy projects that incorporate green design principles.  These organizations provide the nationally-recognized standards for energy efficiency.  

“This bill will ensure that economic re-development will continue and that it is environmentally friendly to our communities,” Johnson concluded.  “I am pleased the State Senate has approved this legislation.”

Bills in Brief

Courts / “Good faith exception” -- The full Senate approved legislation this week that allows a judge to give a jury access to evidence or facts obtained as a result of a search or seizure which contains a minor technical error.  Many states, as well as the federal courts, have enacted what is known as the “common sense” or “good faith exception” to the exclusionary rule regarding suppression of evidence in violation to the Fourth Amendment’s unreasonable search and seizure provision.  The bill, SB 518,attempts to balance the scales of justice to a standard embraced by the U.S. Supreme Court in United States v. Leon and Herring v. United States, which was the law in Tennessee prior to 1979.  This standard allows the judge and jury to weigh all the facts and still administer justice in an objective manner.  

Abortion Resolution – The House of Representatives has passed  Senate Joint Resolution 127, which aims to restore to the people of Tennessee their rightful authority to regulate abortion through their elected representatives with an overwhelming 77-21 vote.  The constitutional amendment is in response to the 2001 Tennessee Supreme Court decision in Planned Parenthood vs Sundquist, when the court created a right to unregulated abortion. The decision also prohibited the Tennessee legislature from enacting regulations governing abortions, arguably making Tennessee the most liberal in the nation with regards to abortion laws.  The resolution had passed the Senate for the last several years, but had never cleared the hurdle of the Public Health Subcommittee in the House of Representatives until a Republican majority was elected.  The Democrat leadership in the House kept the resolution bottled up in a subcommittee, even though the measure had bi-partisan support.

Victims of Crime -- Legislation to provide funding for a program that gives victims of crime notification regarding any change in status of the offender was approved by the Senate Finance Committee this week.  The bill, SB 1684  sponsored by Senator Bill Ketron (R-Murfreesboro), creates the Statewide Automated Victim Information and Notification System Fund by adding a $1 litigation tax on all criminal charges.  This legislation would raise the necessary funds to keep the program up and running and expand its scope to more Tennessee counties.

Education pays – The full Senate has approved legislation that encourages local education agencies (LEAs) to develop “Education Pays” pilot programs for at-risk students. The idea is for the Pilot Program to provide monetary or other rewards of value for academic achievement funded through private organizations. The measure, SB 482 sponsored by Senator Dewayne Bunch (R-Cleveland), also encourages the State Board of Education to study the effects of any such programs in Tennessee and from other states and report its findings to the General Assembly.  Several localities across the country have been successful in implementing such programs to ensure that the right incentives are in place to reward good behavior for high risk youth. 

Second Amendment Rights / Parks – Legislation met the final approval of the Senate this week to allow legal gun carry permit holders to posses a firearm in state or federal parks in Tennessee.  The legislation also allows local government bodies to maintain control of concealed carry within local parks.  According to a report from the U.S. Department of Interior, there were 8 murders, 43 forcible rapes, 57 robberies and 274 instances of aggravated assault in parks nationwide in 2007.  In January, the federal government lifted a regulation that banned guns in national parks and wildlife refuges.  The measure, SB 976, is sponsored by Senator Mae Beavers (R-Mt. Juliet).

Division of Intellectual Disabilities -- State Senator Ken Yager (R-Harriman) gained unanimous approval in the State Senate this week for legislation he is sponsoring to rename the state’s Division of Mental Retardation Services the “Division of Intellectual Disabilities.”  The initiative began with Special Olympics and other advocates for intellectually challenged individuals to change any derogatory use of the word “retardation” from the country’s vocabulary, beginning with references in government programs or services. The bill, SB 1121, was supported by the Department of Mental Retardation Advisory Council which is made up of disability advocates, family members, providers, and consumers who voted in favor of supporting this initiative earlier this year.  Due to cost factors, the name of the Division will be changed as new volumes of Tennessee’s laws are replaced and supplements are published. 

Micro-stamping – The Judiciary Committee has approved SB 1908 to prohibit the sale of “micro-stamped” firearms or ammunition in Tennessee.  Although micro-stamping legislation supporters claim it will help police solve crimes, many believe their real purpose is to price handguns beyond the reach of many Americans, by requiring firearms to be made with the gadgetry necessary to create the markings or to ban handguns by requiring that they "micro-stamp" more consistently than is technologically possible.

Real ID – The State Senate voted this week to make Tennessee the 12th state in the U.S. prohibiting the issuance of a REAL ID card.  The bill, SB 1934 sponsored by Senator Tim Burchett (R-Knoxville), directs the Tennessee Department of Safety not to implement the provisions of the federal REAL ID program.  The REAL ID Act was signed into law in 2005.  The federal initiative forces states to standardize driver’s licenses cards across the nation into a single national identity card and database.  It does this by stipulating that state driver’s licenses and state ID cards will not be accepted for “federal purposes” unless they are in compliance with the Act.  If implemented, it would cost the state $30 million.

Government transparency -- Legislation to provide oversight for Tennessee’s government transparency website advanced in the Senate Finance Committee this week.  The bill, SB 149 sponsored by Senator Bill Ketron (R-Murfreesboro), would make the website subject to audit by the State Comptroller’s office.  Ketron and other Republicans have pushed for years to implement an open government website where citizens can see how tax revenues are spent.  The website was finally implemented earlier this year.  This legislation will simply make sure there is oversight of the website.

Preferred Provider Organization Transparency Act -- -- The Senate Finance and Commerce Committee has approved legislation this week named the “Preferred Provider Organization Transparency Act.”  The bill makes sure that health care providers who contract with health insurance plans have full knowledge of any assignment of their contract to entities associated with the insurance company with whom they would be paid.  Under the bill, SB 693 sponsored by Senator Steve Southerland, the third party would be required to inform the contracting health care provider of a Web site on which they may get information about any changes in the health plan status.  This includes to whom the third party has granted access to the provider's health care services and contractual discounts.  The bill will help doctors know who is paying and to whom they can address any problems.

Rules of the Road – Legislation adding two dangerous traffic violations to the list of current violations which are penalized under a Class A and Class B misdemeanors has been approved by the full Senate this week.  The violations include crossing a double yellow line to hit another vehicle head-on and cutting off a vehicle while passing.  The penalty would be a Class A misdemeanor if another person is killed and a Class B misdemeanor if they are seriously injured.  The bill, SB 289, is sponsored by Senator Mae Beavers (R-Mt. Juliet).

ICE – The Senate Judiciary Committee has approved legislation calling for Tennessee jails to send information to the federal Immigration and Customs Enforcement office (ICE) regarding prisoners who do not have documentation that they are in the U.S. legally.  The bill requires the jail keeper to fax, email or send a copy of the booking information within three business days of the person’s arrest.  The bill, SB 1141, is sponsored by Senator Dolores Gresham (R-Somerville)    

Opposition to housing prisoners from Guantanamo Bay in Tennessee – Members of the Senate Finance Committee voted this week to expresses Tennessee’s opposition to the utilization of any local, state, federal or private jail, prison or detention facility in the state to confine prisoners from the United States detention facility at Guantanamo Bay, Cuba.  The bill, SJR 381, is sponsored by Senator Jim Tracy (R-Shelbyville). 

Wine / Shipping – The full Senate approved a House amendment and sent to the governor legislation to allow consumers to ship wine from wineries to their homes.  Currently, it is a felony under Tennessee law to transport wine across state lines.  This legislation allows wineries to ship up to three cases of wine per year to Tennessee consumers provided they have license.  The bill, SB 166, is sponsored by Senator Paul Stanley (R-Germantown).

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Week of May 14, 2009

Capitol Hill Week

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

Law and order legislation dominates Senate Debate on Capitol Hill this week

(NASHVILLE, TN), May 14, 2009 -- Law and order legislation dominated debate in the State Senate this week as several key bills advanced, including legislation to revise the current method for selection of appellate judges, two proposals providing aid to victims of crime, a measure protecting children from Internet predators, and a bill to help deter abuse of prescription drugs.

Judicial Nominating Commission -- The legislation to revise the current method for selecting the state’s appellate and Supreme Court judges comes as the Judicial Selection Commission, a key component of Tennessee’s plan for appointing judges, is set to expire next month.  Under that plan, called the Tennessee Plan, the commission that nominates these judges is selected by the Speakers of the House and Senate and the Governor from a list controlled by various legal organizations.  Lt. Governor Ron Ramsey (R-Blountville)  has said a fairer and more open process should be put into place which also allows for appointment of citizens outside these special interest groups. 

The legislation approved by the Judiciary Committee sets up a new 17-member Judicial Nominating Commission which would recommend a panel of three nominees to the governor for appointment to the state’s appellate and Supreme Courts.  The governor would then appoint one of the nominees, or reject the panel and request a second panel.  If the governor rejects both panels, he or she can select another person vetted by the Commission. 

The bill, SB 2114 sponsored by Senate Majority Leader Mark Norris (R-Collierville), would provide public access to every aspect of the nominating process.  The 17-member Commission would be limited to 10 attorney members.  The bill also would ban lobbyists and their employers from serving on the Nominating Commission. 

After being appointed through this process, the judge would stand for approval by the voters who could decide whether or not to "replace" or "retain" them.  Currently, citizens vote “yes” or “no” on the ballot regarding the retention of judges.  If voters decide to replace a judge, an interim judge would be appointed by the governor until the next election.  At that point, the people could decide who would fill the slot through a popular election, which is the same process that the state’s trial judges are currently selected.  

Next week the Judiciary Committee will consider a resolution, which is also sponsored by Senator Norris to allow Tennesseans to vote through a Constitutional Convention or referendum on whether or not they want to keep the judicial selection process if it passes the full General Assembly, or elect judges through popular election.  Several lawmakers on the Committee said they see the revised judicial selection process as a bridge to buy time until a constitutional convention or referendum on the matter can be held in 2014.  Before that can occur, however, the General Assembly must pass a Resolution to authorize a Constitutional referendum or convention by a simple majority in the current General Assembly and by 2/3 vote in either the 2011 or 2012 session.  It would then be placed on the ballot where it must receive a majority of votes in the gubernatorial election.

Tennessee’s Constitution says judges must be “elected by the qualified voters of the state.”  The debate in the legislature has focused on whether or not the selection process with a retention vote meets that test. 

"I’ve heard very eloquent arguments on both sides of the constitutional issue and I suspect will continue to hear arguments and discussions on both sides of the constitutional issue,” said Leader Norris.  “And I for one continue to believe that at the end of the process we have a mechanism by which I believe the constitutional issues need to be addressed whether it’s by a referendum or a convention."

Victims of Crime -- Legislation to provide funding for a program that gives victims of crime notification regarding any change in status of the offender was approved by the Senate Finance Committee this week.  The bill, SB 1684  sponsored by Senator Bill Ketron (R-Murfreesboro), creates the Statewide Automated Victim Information and Notification System Fund by adding a $1 litigation tax on all criminal charges. 

“The purpose of this statewide automated victims program is to increase the safety of victims of crime by providing access to timely and reliable information about the custody status of offenders in our county jails,” said Senator Bill Ketron (R-Murfreesboro).  “This system is operable 24 hours a day over the telephone, through the Internet, or by email.” 

Currently 56 counties in Tennessee participate in the Statewide Automated Victim’s Notification Program, known as VINE.  Another 19 counties are expected to join the program by the end of the year, to boost the total number of participating counties to 75.  However, federal grants that provided funding for the program are set to expire.  This legislation would raise the necessary funds to keep the program up and running and expand its scope to more Tennessee counties.

Victims of a crime or other concerned citizens can register to be notified immediately in the event of an offender’s release, transfer or escape through the program. 

Victims of crime were also the focus of another bill which advanced in the Senate State and Local Government Committee this week.  The bill, SB 880, also sponsored by Senator Ketron, keeps the personal contact information of crime victims participating in the Criminal Injuries Compensation Fund confidential.  The legislation keeps the address, telephone number, social security number and the criminal offense from which the victims is receiving compensation closed from public to protect the victim from the perpetrator or others who might seek revenge.

The Victim’s Compensation provides financial help in cases where a crime victim sustains bodily injury or death as a direct result of a violent crime.

Child Sexual Predators -- The Senate Judiciary Committee acted this week on legislation designed to let law enforcement act more quickly to protect children from sexual predators using the Internet. The bill, SB 1529, 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.  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 child sexual predators,” said State Senator Tim Burchett, sponsor of the bill.   “This legislation speeds up the process to let us get to endangered kids faster.”

Prescription drug abuse – The full Senate has approved legislation that requires all entities that dispense medications to have access to the controlled substance database by January 1, 2010.  The bill, SB 224, is designed to cut down on prescription drug abuse by providing information to those prescribing and dispensing the drugs.

"Tennessee has experienced problems with individuals obtaining multiple prescriptions for controlled substances from multiple health care providers,” said Senator Paul Stanley (R-Germantown), sponsor of the bill.  “This bill will give us another tool to fight this abuse."

The Tennessee Board of Pharmacy began accepting prescription information into the Controlled Substance Monitoring Database on December 1, 2006.  The database, which is maintained by the Department of Health, includes data on controlled substance prescriptions of schedule II-V drugs.  The database includes who the prescribing practitioner is; who filled the prescription; basic patient information; and the name and form of medication that the patient received.

Only those persons authorized by law can access the database to assist in determining treatment history and to ensure a patient is not fraudulently seeking controlled substances.  This bill makes sure that those prescribing and dispensing drugs have electronic access to the controlled substance database upon providing health care services to a patient potentially receiving a controlled substance.

Resolution expresses Tennessee’s opposition to federal cap-and-trade proposal

A resolution expressing Tennessee’s opposition to a federal proposal that would establish a carbon cap-and-trade system is on its way to the Senate floor after approval by the Senate Finance Committee this week.  The measure, SJR 327, comes after senior U.S. administration officials indicated that if Congress does not pass comprehensive legislation providing for a cap-and-trade system to regulate greenhouse gas emissions they will press ahead unilaterally with proposals using the Environmental Protection Agency (EPA)’s existing authority under the Clean Air Act.

 “The cap-and-trade system is going to be very regressive tax,” said Senator Johnson.  “Putting a fee on carbon being emitted into the atmosphere is a cost that is going to affect Tennessee consumers on a wide variety of things, from driving cars to burning coal to make electricity.”

Under the federal proposal, government would set a cap on the amount of pollutant that can be emitted by a business.  Any company that emits carbon more than the allowable level of emissions would subsequently be taxed.  The business might be able to buy credits, or trade, with a company that is under the allowable limit, thus the term cap and trade.  The practice has been implemented in some localities in the U.S., but is more commonly used in other nations, with the largest being the European Union Emission Trading Scheme which applies to emission of greenhouse gases.

“The cap-and-trade system enacted in Europe has proven to be a dismal failure,” said Senator Johnson.  “The initial cap was set so high that the polluters fell under it without making any reductions in emissions at all.  Similarly, the voluntary cap-and-trade system in NewYork has already been criticized for questionable offsets that have produced huge profits, but little environmental benefit”

“Our citizens and businesses are already suffering from the current economic climate.  Hopefully this resolution will send a message to Congress that Tennesseans don’t want this system implemented in our state,” Johnson concluded.

Bill provides transparency to consumers on pharmacy benefits

The State Senate has unanimously approved legislation sponsored by Senator Doug Overbey (R-Maryville) that provides transparency to consumers on their pharmacy benefits.  Overbey said the bill, SB 774, addresses two important problems related to patients understanding their pharmacy benefits and cost of their prescriptions. 

“Currently, pharmacies are often prohibited by language in their provider contracts from telling patients what the pharmacy is being paid for their prescriptions, which prevents patients from knowing the costs,” said Senator Overbey.  “This legislation prevents that practice and allows pharmacists to give consumers more information regarding what their health plan pays in reimbursement costs.” 

The legislation, called the “Patient’s Right to Prescription Transparency Act of 2009,” would prevent a health plan or Pharmacy Benefit Management Company (PBM) from restricting or prohibiting a pharmacy from giving the patient information regarding actual reimbursement.  The legislation would also define that percentage based co-pays be calculated based on the total prescription price the plan agrees to pay to the pharmacy. 

“Consumers have every right to know what their health plan pays,” added Overbey. “I am very pleased this legislation has received final approval in the State Senate.”

The bill is scheduled for a vote in the House of Representatives on Monday.

Legislation approved by the Senate Finance Committee says NO to Federal Real ID Program

Tennessee would be the 12th state in the U.S. prohibiting the issuance of a REAL ID card under legislation approved by the Senate Finance Committee this week.  The bill, SB 1934 sponsored by Senator Tim Burchett (R-Knoxville), directs the Tennessee Department of Safety not to implement the provisions of the federal REAL ID program.  

“This bill sends a message to Washington that they need to back off plans to implement a national identification card,” said Senator Burchett.  “REAL ID is an encroachment on our freedoms that we must not tolerate.”

The REAL ID Act was signed into law in 2005.  The federal initiative forces states to standardize driver’s licenses cards across the nation into a single national identity card and database.  It does this by stipulating that state driver’s licenses and state ID cards will not be accepted for “federal purposes” unless they are in compliance with the Act.  Those purposes include boarding an aircraft or entering a federal facility unless the state issuing the identification meets all of the law’s numerous conditions, like standardizing data element and security features on the IDs, a machine readable zone that allows for easy capture of data, and the construction of a interstate-linked database that makes information in each person’s file available to the government.

To date, 21 states have enacted anti-REAL ID bills or resolutions.  However, Maine, Montana, New Hampshire, Oklahoma, South Carolina, Washington, Alaska, Arizona, Idaho, and Louisiana have enacted binding legislation prohibiting participation in the federal program. 

“The federal legislation, if imposed by states, turns the states driver’s licenses into an invasive national ID as it imposes numerous new burdens on taxpayers and state governments,” added Burchett.  “It will cost Tennesseans millions of dollars, as well as encroaching upon the lives of our citizens.”
   
Although the Act was passed by Congress, Real ID cannot go into effect without a legislative action by states.  State legislatures must also appropriate money to remake or build administrative machinery required to comply with an extensive document storage system.  In addition, millions of Americans who do not have driver’s licenses would be required to receive a REAL ID card. 

“Real ID is way over the line as far in invading our citizen’s privacy,” Burchett concluded.  “I am pleased this bill was approved and hopeful that we will have the support needed to pass it on the floor of the Senate.”

The Department of Homeland Security, which is responsible for implementation of the federal program, has granted extensions to all states which are good through December 31, 2009.  In addition, States that meet certain benchmarks for the security of their credentials and licensing processes will automatically be granted a second extension until May 11, 2011 to complete full implementation of REAL ID. 

Bills in Brief

Second Amendment Rights / Restaurants – The State Senate approved a Conference Committee Report on SB 962 and sent to the governor the legislation allowing law-abiding handgun permit holders to “carry” into restaurants or other establishments serving alcohol as long as the owners of the premises have not posted notification that they are banned.  Those who are in possession of a handgun are already prohibited from consuming alcohol or face a Class A misdemeanor, which carries a $2,000 fine and up to 11 months and 29 days in jail.  The Conference Committee report, as adopted, deleted provisions for a “gun free zone” tied to age or time restrictions.  There are 220,000 gun carry permit holders in Tennessee.  Thirty-seven states allow legal permit holders to carry into locations that serve alcohol.       

Second Amendment Rights / Parks – Legislation advanced in the Senate Finance Committee this week to allow legal gun carry permit holders to posses a firearm in state or federal parks in Tennessee.  The legislation also allows local government bodies to maintain control of concealed carry within local parks.  According to a report from the U.S. Department of Interior, there were 8 murders, 43 forcible rapes, 57 robberies and 274 instances of aggravated assault in parks nationwide in 2007.  In January, the federal government lifted a regulation that banned guns in national parks and wildlife refuges.  The measure, SB 976, is sponsored by Senator Mae Beavers (R-Mt. Juliet).

Second Amendment Rights / Judges – The full Senate has approved legislation authorizing judges who possess handgun carry permits to carry a firearm during judicial proceedings.  The bill, SB 19, is sponsored by Senator Dolores Gresham (R-Somerville).

Developmentally Disabled Citizens -- The Senate General Welfare, Health and Human Services Committee approved a resolution this week supporting the development of an array of cost-effective home- and community-based programs to support people with developmental disabilities.   Last year the General Assembly passed comprehensive legislation to give elderly and disabled Tennesseans more long term care options, including a comprehensive measure that simplifies access to home and community-based services and increases the number of people able to stay at home for long-term care needs through the state’s TennCare program.  The Family Support Program administered by the Division of Mental Retardation Services, which is the only state program for people of all ages with any type of developmental disability, has a waiting list exceeding 6,000 persons.  The resolution, SJR 72, is sponsored by Senator Jim Tracy (R-Shelbyville).

Soldier Heroes – The Senate Finance Committee voted this week to send Congress a resolution asking that an initiative be adopted to honor the wishes of soldiers regarding the disposition of their remains if they die in service to their country.  The initiative, called the “Honor the Written Intent of our Soldier Heroes Act,” would amend a federal law that prohibits a service member from designating a person other than a surviving spouse, blood relative or adoptive relative to direct the disposal of the service member’s remains  The resolution, SJR 352, is sponsored by Senate Speaker Pro Tempore Jamie Woodson (R-Knoxville).

Restaurant Menus – The full Senate has approved legislation to ban local governments or their boards from imposing requirements on restaurants to provide nutritional information on menus.  The concern is that some communities will impose different standards and significantly increase costs to small restaurant owners.  In March, Davidson County’s Metro Board of Health voted to enact guidelines on providing nutritional information to customers for certain restaurants, even though Congress is considering the Federal LEAN Act.  That act would implement a national standard generally accepted by restaurant owners to provide nutritional information to customers.  Adopting a county-by-county approach to the disclosure of nutritional information increases costs to restaurants, many of whom are small business owners.  The bill, SB 1092, is sponsored by Senator Paul Stanley (R-Germantown). 

DUI –  Legislation was approved this week in the Senate Judiciary Committee that would require the testing of a driver’s blood alcohol content level in cases where there is serious bodily injury to a victim or death.  The proposal calls for the test to be performed whether or not the driver consents.  Presently, only drivers where a death is involved are required to be tested.  This legislation would extend that requirement in cases where a victim is seriously injured and the law enforcement official has probable cause to believe that the driver has committed the offense of vehicular assault. The test results may be offered into evidence, subject to the rules of evidence under the bill, SB 534, which is sponsored by Senator Randy McNally (R-Oak Ridge).

Cyber-schools – The full Senate has approved a measure that directs the Select Oversight Committee on Education to study the authorization of cyber-based charter schools in Tennessee and to report back to the General Assembly by January 15, 2010.  Cyber schools have gained in popularity over the last several years as yet another educational option.  Cyber schools primarily use a computer-based curriculum and accountability methods via internet access.  The public cyber charter option is an attractive alternative for untraditional students or those with home-based needs.  The bill, SB 621, is sponsored by Senator Steve Southerland (R-Morristown).

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Week of May 7, 2009

Capitol Hill Week

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

Tennessee’s economy worsens as lawmakers get ready to consider 2009-10 budget

(NASHVILLE, TN), May 7, 2009 –   The State Senate tackled a number of important issues this week as several more committees closed for the 2009 legislative session. Several important issues still remain on the General Assembly’s agenda before it adjourns, including the state’s budget, which received a grim forecast this past week.

The State’s Funding Board, comprised of Tennessee’s top economists, met on Thursday to re-evaluate the state’s revenue picture.  The meeting is held each year after receipt of the state’s April revenues.  April is a key month in projecting the health of the state’s franchise and excise taxes.  The board then gives lawmakers and the governor their forecast on both how much Tennessee will need to close out the current fiscal year, and what to expect as far as revising projections for the 2009-10 budget year.

Although April’s outlook on franchise and excise taxes fared better than anticipated, the state’s sales tax collections have deteriorated at a greater rate than expected, deepening the gap in how much is needed to close out the current fiscal year.  Sales taxes make up about 60 percent of the state’s money.  The preliminary sales tax numbers from April showed a 10.5 percent drop in collections, causing the state’s economic prognosticators to predict a $99 million to $122 million shortfall. 

Finance Commissioner Dave Goetz says the administration plans to propose reaching into the state’s reserves to fill this gap.  The state has $750 million in its Rainy Day Fund and approximately $500 million in TennCare Reserves, for a total of over $1.2 billion.  The state would tap into about $290 million from these reserve accounts, including the earlier budget proposal that called for utilizing $190 million to balance the budget for the current fiscal year.  Unlike Congress, Tennessee must balance the state’s budget under a Constitutional Amendment passed in 1977. 

The forecast for the 2009-10 year which will start in July is also grim.  The state will start out with a $1.1 billion base reduction due to adjustments made in the 2008-09 budget year.  The economic experts presented predictions to the Funding Board that collections will continue to deteriorate into the next budget year, adding on an additional loss in revenues of between $130 to $273 million.  This means the state could be looking at a $1.3 billion reduction in the state budget over the current budget year.

Adding to the state’s budget woes is deterioration in Tennessee’s net lottery proceeds.  Lottery proceeds fund the state's Hope Scholarship and other education-related programs.  The General Assembly’s chief economist has predicted a shortfall for the current year of at least $8 million, in addition to the $5 million already budgeted.  He predicted that next year the shortfall could be up to $13 million, in addition to the $14 million shortfall already recognized in the budget.  The state has a Lottery Reserve Fund of approximately $381 million to protect students from losing their scholarships. 

The downturn in the state’s economy has also given lawmakers more concerns about meeting the interest payments on Governor Phil Bredesen’s plans to incur $701 million in general bond obligation debt. This is in addition to the $262 million in bond indebtedness authorized earlier this year for infrastructure for the Volkswagen and Hemlock plants, pushing the total bond authorization request to $963.1 million.

Interest on the $701 million of general obligation debt, under SB 2358, is $76.6 million for the first year of debt service and $438.2 million in interest over the life of the bonds. 

The state expects to receive over $5 billion in federal stimulus money coming into Tennessee over the next two years as a result of the American Recovery and Reinvestment Act passed by Congress in February.  Although the funds will soften the blow of cuts by boosting spending in targeted state programs temporarily, Tennessee must chart a course to balance the budget by paying for programs on a recurring to recurring basis after the stimulus money dries up in 2011.

These are a few of the budget challenges that legislators will discuss in the remaining weeks of the legislative session.

Firearms bills advance in State Senate

Several bills involving firearms met approval this week, including one bill that sets forth a process for surrender of a firearm in cases where an order of protection has been granted in domestic violence cases.   The legislation, SB 314, sponsored by Senator Diane Black (R-Gallatin), aims to prevent further violence by setting up a procedure for the person to hand the gun over to a third party. 

“The possession of a firearm while under an order of protection is an offense under federal law,” said Black.  “However, currently there is no procedure for the respondent to surrender a firearm while the order is in effect.”

Under the bill, the respondent must terminate physical possession of firearms by any lawful means within 48 hours or face a Class A misdemeanor offense.  They would then complete an “Affidavit of Firearms Dispossession” form and return it to the court.  The legislation allows the respondent to lawfully regain possession of the firearms without going back to court when the Order of Protection is lifted.

In other Senate floor action involving firearms this week, legislation limiting the power of government to confiscate firearms and restrict the sale of ammunition during martial law was approved on Thursday.  The bill, SB 1992 sponsored by Senator Jack Johnson (R-Franklin), prohibits the confiscation of weapons from law-abiding citizens or restricting the ability to purchase guns and ammunition during times of martial law.  The law already makes that provision in cases of a natural disaster or declared emergency under a law passed in the last General Assembly, sponsored by Senator Mark Norris (R-Collierville).

Several firearms bills advanced in the Senate Judiciary Committee this week, including a measure to allow legal gun carry permit holders to posses a firearm in state or federal parks in Tennessee.  The legislation, SB 976 sponsored by Senator Mae Beavers (R-Mt. Juliet), also allows local government bodies to maintain control of concealed carry within local parks.

According to a report from the U.S. Department of Interior, there were 8 murders, 43 forcible rapes, 57 robberies and 274 instances of aggravated assault in parks nationwide in 2007.  In January, the federal government lifted a regulation that banned guns in national parks and wildlife refuges.  Previously, guns were only allowed if they were unloaded and inaccessible.  The new federal rule applies to legal permit holders in the 48 states that have a process for issuance of licenses to allow law-abiding citizens legally to carry firearms for self-defense, including Tennessee.

Similarly, the Judiciary Committee approved a bill, SB 1519 sponsored by Senator Tim Burchett (R-Knoxville), extending those privileges to carry into wildlife refuges, public hunting areas, wildlife management areas or national forest land.

Finally, the Judiciary Committee approved legislation, SB 19 sponsored by Senator Dolores Gresham (R-Somerville), authorizing judges who possess handgun carry permits to carry a firearm during judicial proceedings.

Legislation benefits consumers who utilize the services of debt management specialists

The State Senate approved comprehensive legislation sponsored by Senator Doug Overbey (R-Maryville) on Monday that would benefit Tennessee consumers who utilize the services of debt management specialists.  The legislation, named the Uniform Debt Management Services Act, provides guidance and regulation to the consumer debt management industry, while also providing fairer services to debtors. 

“As the recession has deepened, we are finding more and more consumers turning to debt management companies which have tripled over the past few years,” said Senator Overbey.   “There have been frequent instances or accusations of abuse by consumers who utilize these services.  This legislation regulates the industry in uniformity with other states, while protecting consumers.”
 
Congress passed bankruptcy reform legislation in 2005 mandating counseling by a private agency before an individual may enter into bankruptcy.  Debt Settlement is the option that lies on the continuum between credit counseling and bankruptcy.  It is most often used by consumers who may not qualify for credit counseling, or who do not qualify under the new rules of bankruptcy or prefer to honor their debts to the best of their ability, rather than declare bankruptcy.  Their services primarily include negotiating a reduction of the consumer’s non-secured consumer debts in exchange for a faster repayment plan.

The legislation, SB 812, requires a debt management company in Tennessee to obtain a license and supply information about their practices, fees, educational materials and employee qualifications.  A company must also post a surety bond or another security to safeguard any money that it receives from individuals for payment of creditors.  In addition, the debt management company must provide a disclosure to consumers that this may not be the best option for them and that it may affect their credit rating. 

“We need credible counseling services for those facing massive debt,” added Overbey.  “However, we don’t need an unregulated industry that might prey on those who are already in deep financial trouble.”
 
The new act gives the Department of Commerce the right to take enforcement action against anyone who violates the act.  It also creates a consumer right of action and treble damages for certain circumstances involving abuse.

“When consumers turn to these companies for help, they need greater assurance that they will receive the appropriate debt counseling and assistance.  I am pleased that our State Senate has approved this legislation and hope that we will have full reciprocal participation from all states in the near future,” Overbey concluded.

 Senate approves legislation protecting soldiers from having their names used in anti-war demonstrations or fundraisers

Legislation designed to protect soldiers from having their names or likeness used in anti-war activities without permission, was approved in the Tennessee State Senate on Monday by a vote of 32 to 0.  The bill, SB 836 sponsored by Senator Randy McNally (R-Oak Ridge), allows individuals to recover damages plus attorneys fees against those who knowingly use or infringe on the rights of an active member of the armed forces in violation of Tennessee’s “Personal Rights Protection Act.”

“Many families of deceased soldiers have unfortunately had to face the use of their loved one’s name or likeness in anti-American or anti-war fundraising campaigns or advertisements,” said Senator McNally.  “This is a slap in the face of our brave soldiers’ sacrifices for their country that their loved ones should not have to endure.”
The legislation comes after several violations were reported, including T-shirts sold on the Internet using the names of about 1700 soldiers.  The T-shirts contained defaming information about their country with the names of soldiers on the back. 
“This legislation would make such use a violation under Tennessee’s ‘Personal Rights Protection Act’ with treble damages for those who abuse the name or likeness of our nation’s heroes,” added McNally.  “Hopefully, it will serve as a deterrent for any abuse of the personal rights of our soldiers in the future.”

Full Senate approves public charter school bill

Legislation that strengthens Tennessee’s public charter school law was approved by the full Senate upon final consideration on Thursday.  The legislation, described by sponsor, Speaker Pro Tempore Jamie Woodson as a “conservative next step,” widens eligibility, clarifies funding and addresses rules for renewal of the public charter schools.  Tennessee currently has one of the most restrictive public charter school laws in the nation.  The bill also puts into place a process so the best practices gained from the “laboratories of learning” go into traditional school programs.
 
“Charter schools are public schools that are given flexibility to operate without the constraints of some of the rules and regulations normally imposed on traditional schools,” said Woodson.  “In exchange for this flexibility, they are held accountable for performance through a charter, which is an agreement between the local education agency (LEA) and the charter school.  It requires a strenuous approval process by the LEA and an equally tough renewal process of the charter every five years.”

The legislation, SB 2133, addresses four provisions in the current charter school law.

• Eligibility -- Currently, public charter school enrollment is limited primarily to failing students and those from failing schools.  This legislation permits “at-risk” children (as defined by free and reduced-price lunch) to attend charter schools in those systems that have 12,000 or more students.

• Caps -- Currently public charter schools are limited to 50 statewide, with a cap of 20 in Memphis.  This bill says that converted charter schools do not count against the cap, clarifying in law what the Attorney General has already opined. 

• Renewal process – Currently, the charter agreement between the LEA and the charter school is renewed every five years.  This measure would change the renewal period from five to ten years, as well as establishes the required documentation needed during the renewal process.

• Funding – Currently a public charter school receives the per pupil expenditure of state and local dollars.  Although it mentions appropriate federal dollars, interpretations vary from one LEA to the next.  This legislation defines the state and local charter school facilities funding responsibilities and clarifies the LEAs must allocate all appropriate federal funds, including Title I and ESEA funds, to the charter schools. 

Tennessee now has 15 public charter schools, with six more opening in the fall.  Overall, the schools have shown success. 

“This bill provides flexibility to give our schools one more tool in the toolbox to help students succeed,” Woodson concluded.

Bills in Brief

Tornado shelters – Legislation that authorizes the Tennessee Emergency Management Agency (TEMA) to establish and administer a grant program to assist in the partial reimbursement of installation costs for safe rooms and in-ground shelters has been approved in the Senate State and Local Government Committee.  The bill, SB 697 sponsored by Senator Dolores Gresham (R-Somerville), is modeled after a successful grant program in Arkansas that assists citizens in building shelters.  There have been 120 deaths in Tennessee since 1999 as a result of tornadoes.

Tennessee declares state’s sovereignty -- The full Senate voted unanimously on Monday to approve a resolution claiming Tennessee’s “sovereignty under the Tenth Amendment to the Constitution of the United States.”  The proposal, SJR 311 sponsored by Senator Randy McNally (R-Oak Ridge), is designed to send Congress a message that the federal government has overstepped its Constitutional bounds by mandating a massive amount of federal policies upon the states in violation of the Amendment.  The language of the Tenth Amendment is clear and concise that the federal government’s powers are limited to a specific set of activities.  Twenty-eight states have approved similar resolutions

Secret Ballot Protection Act -- Legislation designed to protect the rights of employees to vote on whether or not they want to unionize by a secret ballot was approved in the Senate Commerce and Labor Committee this week.  The “Secret Ballot Protection Act” is a counter measure to dangerous federal card check legislation pending in Congress, which would subject employees to intimidation by allowing unions to organize simply by persuading a majority of employees to sign a union representation card.  This petitioning would take place outside the workplace, in front of union organizers and other employees who support the union.  The legislation, SB 1674 sponsored by Senator Jack Johnson (R-Franklin), defines the denial of secret-ballot elections as an unfair labor practice. 

Home school diplomas – State Senators have given final approval to legislation that requires home school diplomas to be recognized as a regular public high school diploma.    The measure, SB 433 sponsored by Senator Dewayne Bunch (R-Cleveland), makes sure that church related schools or home schools be recognized by all state and local governmental entities as having the same rights and privileges of diplomas issued by public school systems.

Ethics / General Assembly -- Legislation that would end the rights of a member of the General Assembly to receive healthcare benefits if convicted of a felony was approved by the full Senate on Monday.  The bill, SB 2205 sponsored by Senator Jack Johnson (R-Franklin), would require the state to end the benefits upon conviction or upon a plea of guilty, if the charges are in relation to the member’s official capacity as a legislator. The family members eligible for benefits are not included under the bill.  The General Assembly has already passed similar legislation ending legislative pensions for those convicted of a crime in relation to their official capacity as a member of the General Assembly.  The bill would go into effect after the 2010 election. 

Education pays – The Senate Education Committee has approved legislation that encourages local education agencies (LEAs) to develop “Education Pays” pilot programs for at-risk students. The idea is for the Pilot Program to provide monetary rewards for academic achievement funded through private organizations. The measure, SB 482 sponsored by Senator Dewayne Bunch (R-Cleveland), also encourages the State Board of Education to study the effects of any such programs in Tennessee and from other states and report its findings to the General Assembly.  Several localities across the country have been successful in implementing such programs to ensure that the right incentives are in place to reward good behavior for high risk youth.

English Initiative – Legislation has been adopted by the full Senate that calls for the Department of Labor and Workforce Development, in conjunction with the Department of Education, to establish and administer a grant program called the "We Want to Learn English Initiative." The initiative, SB 1745 sponsored by Senator Bill Ketron (R-Murfreesboro), is designed to provide resources for immigrants and refugees in Tennessee to learn English. 

Cyber-schools – Legislation that calls on the Select Oversight Committee on Education to study the authorization of cyber-based charter schools in Tennessee and to report back to the General Assembly by January 15, 2010.  The measure, SB 621, is sponsored by Senator Steve Southerland (R-Morristown). Cyber schools have gained in popularity over the last several years as yet another educational option.  Cyber schools primarily use a computer-based curriculum and accountability methods via internet access.  The public cyber charter option is an attractive alternative for untraditional students or those with home-based needs.

Election Appearance / Governor – The full Senate has approved legislation that urges the state executive committees of each statewide political party to jointly establish a calendar of appearances in each county in Tennessee that enables their respective gubernatorial candidates to appear together during the time between the primary and general elections. Each candidate would be provided an opportunity to speak at each appearance, under the bill.   Following each candidate’s speeches, time would be provided for a town hall forum.  If such a schedule is established, this bill recommends that the schedules be posted on the parties’ Web sites.  The bill, SB 2186, is sponsored by Senator Mike Faulk (R-Church Hill).

Wine sales – The Senate approved a minor amendment and sent to the governor legislation that would allow citizens in the state to purchase up to five cases of wine from out-of-state wineries that have a Tennessee license and transport them back across state lines.  The legislation, SB 944 sponsored by Senator Doug Overbey (R-Maryville), would correct the constitutional issues set forth by the federal court case that threatens to end the sale of wine from Tennessee wineries.   Wineries are a significant agricultural industry in Tennessee with $139 million in sales in 2007. 

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Week of April 30, 2009

Capitol Hill Week

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

Legislation strengthens Tennessee’s Public Charter School Law

NASHVILLE, TN), April 30, 2009 – Legislation that strengthens Tennessee’s public charter school law was approved by the Senate Education Committee this week.  The legislation widens eligibility, clarifies funding and addresses rules for renewal of the public charter schools.  Tennessee currently has one of the most restrictive public charter school laws in the nation. 

“Charter schools are public schools that are given flexibility to operate without the constraints of some of the rules and regulations normally imposed on traditional schools,” said Speaker Pro Tempore Jamie Woodson (R-Knoxville), sponsor of the bill.   “In exchange for this flexibility, they are held accountable for performance through a charter, which is an agreement between the local education agency (LEA) and the charter school.  It requires a strenuous approval process by the LEA and an equally tough renewal process of the charter every five years.”

A report released last year by Tennessee’s Comptroller’s Office, titled “Tennessee’s Charter Schools: Issues of Innovation and Sustainability,” found student eligibility restrictions and limited facilities funding may compromise the long-term viability of individual charter schools and recommended many of the changes included in the bill.  The report recommended that the General Assembly consider making eligibility for charter school enrollment less restrictive and consider more precisely defining state and local charter school facilities funding responsibilities. In addition, the report recommended that the state should also identify charter schools’ best practices and implement a system for disseminating that information to traditional schools.

The legislation, SB 2133, addresses four provisions in the current charter school law.

• Eligibility -- Currently, public charter school enrollment is limited primarily to failing students and those from failing schools.  This legislation permits “at-risk” children (as defined by free and reduced-price lunch) to attend charter schools in those systems that have 12,000 or more students.
• Caps -- Currently public charter schools are limited to 50 statewide, with a cap of 20 in Memphis.  This bill says that converted charter schools do not count against the cap, clarifying in law what the Attorney General has already opined. 
• Renewal process – Currently, the charter agreement between the LEA and the charter school is renewed every five years.  This measure would change the renewal period from five to ten years, as well as establishes the required documentation needed during the renewal process.
• Funding – Currently a public charter school receives the per pupil expenditure of state and local dollars.  Although it mentions appropriate federal dollars, interpretations vary from one LEA to the next.  This legislation defines the state and local charter school facilities funding responsibilities and clarifies the LEAs must allocate all appropriate federal funds, including Title I and ESEA funds, to the charter schools. 

Tennessee now has 15 public charter schools, with six more opening in the fall.  Of those 22 schools, Nashville will have five, Chattanooga will have two, and Memphis will have 15.  The Memphis City School System also is converting four schools to charters this fall.

“We have seen considerable progress in our public charter schools,” said Speaker Pro Tempore Jamie Woodson (R-Knoxville).  “In just five short years our public charter schools are a compliment to the traditional public schools, providing opportunity for innovations and choice for students and their families.”

Woodson said the Memphis Academy of Science and Engineering is graduating the first charter school class of seniors this spring with a 100 percent graduation rate and all of these students have been accepted to college.  Two other successful Memphis schools, Star Academy and Circles of Success were named “Title I School of the Year” in 2007 and 2008, respectively.  At Soulsville Academy, half of the eighth grade took ninth grade Algebra, and all passed, with 76 percent attaining advanced scoring

Government Operations Committee approves legislation to change judicial process

Legislation that would change Tennessee’s current process for selection of state’s Supreme Court judges was approved by the Senate Government Operations Committee this week.  Sponsors say the bill reflects the intent of the constitution that judges are to stand for contested elections.  The legislation, sponsored by Senate Majority Leader Mark Norris (R-Collierville) advanced out of the committee after Lt. Governor Ron Ramsey broke a tie vote in favor of the bill, which ran along party lines.   
“The state’s constitution requires that judges be “elected by the qualified voters of the state,” said Senator Dewayne Bunch (R-Cleveland) who sponsored the amendment that would put the plan in place.  “The day when we ignore the constitution is the day we really spit in the eye of our citizens and say to them, you’re no longer necessary.  You gave us the power on the front end and now we’re going to ignore the plain language of the document that you’ve given us.”

The legislation provides for the governor to select Supreme Court justices without being filtered and narrowed down to a panel of three selected by the Judicial Selection Commission.  The Judicial Selection Commission is made up of members of special interest groups.  The legislation also envisions passage of a Constitutional resolution that would allow the people to decide on how judges should be selected in the future, by retention or by popular vote. 

"There are plenty of folks who feel that direct elections are not only what the (state) constitution calls for, but would be best," said Norris.

The action comes as a result of last year’s vote not to continue the Judicial Selection Commission, the central provision of the state’s current “Tennessee Plan” for selection of Supreme Court and appellate judges.  Under the Tennessee Plan, which was adopted in 1994, the governor must choose from three candidates for the state’s appellate and Supreme Court from a list presented by the Judicial Selection Commission.  After appointment, the judges then stand for yes-no retention votes at the end of their terms. 
 
Under the bill approved this week, once the current Tennessee Plan process expires in June, the governor would be allowed to make the appointment solely at his discretion until 2014 when the judges could face challengers at the end of their terms.  The next step would be the referendum vote to allow Tennesseans to decide whether to amend the constitution to restore the current system of retention elections for Supreme Court justices.  However the earliest that vote could take place is 2014 due to the requirement that the Constitutional Resolutions be approved by two general assemblies before it is placed on the ballot where it must receive a majority of votes in the gubernatorial election.  This bill would bridge that time gap by giving the governor the authority to select and appoint vacancies on the high court in the meantime.

Legislation approved by the Senate Transportation says NO to Federal REAL ID Program

Tennessee would be the 12th state in the U.S. prohibiting the issuance of a REAL ID card if legislation approved by the Senate Transportation Committee this week becomes law.  The bill, SB 1934 sponsored by Senator Tim Burchett (R-Knoxville), directs the Tennessee Department of Safety not to implement the provisions of the federal REAL ID program.  

“This bill sends a message to Washington that they need to back off plans to implement a national identification card,” said Senator Burchett.  “REAL ID is an encroachment on our freedoms that we must not tolerate.”

The REAL ID Act was signed into law in 2005.  The federal initiative forces states to standardize driver’s licenses cards across the nation into a single national identity card and database.  It does this by stipulating that state driver’s licenses and state ID cards will not be accepted for “federal purposes” unless they are in compliance with the Act.  Those purposes include boarding an aircraft or entering a federal facility unless the state issuing the identification meets all of the law’s numerous conditions, like standardizing data element and security features on the IDs, a machine readable zone that allows for easy capture of data, and the construction of a interstate-linked database that makes information in each person’s file available to the government.

To date, 21 states have enacted anti-REAL ID bills or resolutions.  However, Maine, Montana, New Hampshire, Oklahoma, South Carolina, Washington, Alaska, Arizona, Idaho, and Louisiana have enacted binding legislation prohibiting participation in the federal program, with several other states considering similar action. 

“The federal legislation, if imposed by states, turns the states driver’s licenses into an invasive national ID as it imposes numerous new burdens on taxpayers and state governments,” added Burchett.  “It will cost Tennesseans millions of dollars, as well as encroaching upon the lives of our citizens.”
   
Although the Act was passed by Congress, Real ID cannot go into effect without a legislative action by states.  State legislatures must also appropriate money to remake or build administrative machinery required to comply with an extensive document storage system.  In addition, millions of Americans who do not have driver’s licenses would be required to receive a REAL ID card. 

“Real ID is way over the line as far in invading our citizen’s privacy,” Burchett concluded.  “I am pleased this bill was approved today and hopeful that we will have the support needed to pass it on the floor of the Senate.”

The Department of Homeland Security, which is responsible for implementation of the federal program, has granted extensions to all states which is good through December 31, 2009.  In addition, States that meet certain benchmarks for the security of their credentials and licensing processes will automatically be granted a second extension until May 11, 2011, to complete full implementation of REAL ID. 

General Welfare, Health and Human Services Committee briefed on Novel “Swine” Flu

Tennessee Health Commissioner Susan Cooper briefed the Senate General Welfare, Health and Human Services Committee on Wednesday about the worldwide Novel “swine” flu pandemic.  The action came just before the state announced reports of the first probable cases in Williamson and Shelby Counties in Tennessee.

On April 26, the Department of Health and Human Services (DHHS) declared a public health emergency to manage the cases of swine flu emanating from an outbreak in Mexico.  Cooper told lawmakers that there is currently no vaccine for the Novel Flu due to the fact that this new virus has not been seen anywhere in the world before this outbreak. 

The Department of Health is working closely with federal, state and local governments to prepare to respond to the outbreak.  She said the Department of Health has stepped up its level of activity, referred to as conducting surveillance.   The Department has also requested Tennessee’s portion of antiviral drugs and supplies from the strategic national stockpile, which is being distributed with a priority for states with confirmed cases and along U.S. borders.

Cooper said that although this situation is naturally a source of concern, it should not be cause for panic. As public health officials utilize the comprehensive planning and training that’s been done to prepare for public health threats of this nature, there are steps citizens can take to protect their health and prevent the spread of the virus.  These include covering your nose and mouth while sneezing, thoroughly washing hands throughout the day, and staying at home if you are sick. 

Influenza is thought to spread mainly person-to-person through coughing or sneezing of infected people.

Tennessee Resolution declares state’s sovereignty
under the Tenth Amendment of the U.S. Constitution

The Senate Judiciary Committee has approved a resolution claiming Tennessee’s “sovereignty under the Tenth Amendment to the Constitution of the United States.”  The proposal, SJR 311 sponsored by Senator Randy McNally (R-Oak Ridge), is designed to send Congress a message that the federal government has overstepped its Constitutional bounds by mandating a massive amount of federal policies upon the states in violation of the Amendment.

 “The language of the Tenth Amendment is clear and concise that the federal government’s powers are limited to a specific set of activities,” said Senator McNally.  “The federal government was created by the states specifically to be an agent of the states, not vice-versa.   It was such an important point with the founders that they specifically provided for this sovereignty in our Constitution.”

The resolution also points out that Article IV, Section 4 says, "The United States shall guarantee to every State in this Union a Republican Form of Government.”  In 1992, the United States Supreme Court ruled in New York v. United States, that Congress may not commandeer the legislative and regulatory processes of the states.

“States are demonstrably treated as agents of the federal government,” added McNally.  “This means that many federal laws are directly in violation of the Constitution of the United States.”

The resolution concludes by giving “notice and demand to the federal government, as our agent, to cease and desist, effective immediately, mandates that are beyond the scope of these constitutionally delegated powers.”  Upon passage, the resolution will be sent to
The President of the United States, Congressional leaders and the Tennessee Congressional delegation.

Twenty-eight states have approved similar resolutions.

Bills in Brief

Dedicated Road Funds -- Legislation that would make it harder for the Governor and General Assembly to raid Tennessee’s dedicated road fund has been approved by the full State Senate.  The bill, SB 1309 sponsored by Senator Jim Tracy (R-Shelbyville), would require authorization through separate legislation to divert gas tax revenues that are dedicated for transportation.  The measure would put Tennessee back in the position it was prior to 2004 and restore the appropriate checks and balances to ensure that any diversion of the funds are fully meted out through the normal legislative process.  Currently, the dedicated road fund can be diverted through a line in the appropriations bill, which is a much easier route to raid the funds.  

Mental Health -- The full Senate has approved legislation on Monday that seeks to ensure that crisis services continue to be available for mentally ill citizens.  The bill, SB 441 sponsored by Senator Doug Overbey (R-Maryville), requires the Department of Mental Health and Developmental Disabilities to coordinate with other departments and agencies of state government to make sure that services for persons in psychiatric emergencies include a 24-hour, seven-day-a-week toll free telephone number, and walk-in triage screening, assessment, intervention and follow-up care.  It also calls for access to in-house crisis care.

Texting while driving -- The Senate agreed to a minor amendment to legislation that would ban “texting while driving,” sending the measure to the governor for his signature.  The bill, SB 393 sponsored by Senator Jim Tracy (R-Shelbyville), prohibits sending or reading text messages or emails on a hand-held mobile phone or personal digital assistant while a driver is operating a motor vehicle in motion.  The amendment deletes certain emergency personnel from the ban.
Pending Rules and Regulations – Secretary of State Tre Hargett has added a new tool to his office’s web site to make it easier for people to track pending rules and regulations issued by the state's regulatory agencies, according to officials testifying in the Joint Government Operations Committee. It's now possible to get updates on pending rules and regulations by subscribing to the Pending Rules and Regulations RSS Feed. This new tool complements the current Pending Rules and Regulations Online Database.  The new service allows citizens to stay updated on rules that have been filed with the Secretary to give business owners advance notice of pending rules. 
Home health care -- The full Senate has approved legislation to allow home health nurses or aides to accompany a recipient outside the home during the course of delivery of prior-approved services.  The bill, SB 851 sponsored by Senator Diane Black (R-Gallatin), allows aides or nurses to accompany their patients to places like the doctor’s office or church.  Currently services are banned unless they are in a hospital or at home.  Additional visits or hours of care would not be approved for coverage, and services would be limited to what the recipient would be entitled to if provided exclusively at the recipient’s place of residence. 

Ethics / General Assembly -- Legislation that would end the rights of a member of the General Assembly to receive healthcare benefits if convicted of a felony was approved by the Finance, Ways and Means Committee this week.  The bill, SB 2205 sponsored by Senator Jack Johnson (R-Franklin), would require the state to end the benefits upon conviction or upon a plea of guilty, if the charges are in relation to the member’s official capacity as a legislator. The family members eligible for benefits are not included under the bill.  The General Assembly has already passed similar legislation ending legislative pensions for those convicted of a crime in relation to their official capacity as a member of the General Assembly.  The bill would go into effect after the 2010 election. 

Good Faith Exception to the “Exclusionary Rule” – The Senate Judiciary Committee has approved legislation that allows a judge to give a jury access to evidence or facts obtained as a result of a search or seizure which contains a minor technical error.  Many states, as well as the federal courts, have enacted what is known as the “common sense” or “good faith exception” to the exclusionary rule regarding suppression of evidence in violation to the fourth amendment, or unreasonable search and seizure.  The bill, SB 518 sponsored by Senator Randy McNally (R-Oak Ridge), attempts to balance the scales of justice to a standard embraced by the U.S. Supreme Court in United States v. Leon and Herring v. United States, which was the law in Tennessee prior to 1979.  This standard allows the judge and jury to weigh all the facts and still administer justice in an objective manner. 

Confiscation of Weapons / Martial law – Legislation limiting the power of government to confiscate firearms and restrict the sale of ammunition during martial law was approved this week in the Senate Judiciary Committee.  The bill, SB 1992 by Senator Jack Johnson (R-Franklin), prohibits the confiscation of weapons from law-abiding citizens or restricting the ability to purchase guns and ammunition during times of martial law.  The law already makes that provision in cases of a natural disaster or declared emergency.

Escape from police custody – Legislation that strengthens penalties against those who escape arrest was approved by the Senate Judiciary Committee this week.  The bill, SB 388 sponsored by Senator Dolores Gresham (R-Somerville), provides that a person commits the offense of escape if they knowingly escapes the lawful custody of a law enforcement officer. A violation of this bill would be a Class A misdemeanor regardless of whether the person was being held for a misdemeanor, civil offense, or felony. 

Aggravated Robbery – Legislation was approved by members of the Senate Judiciary Committee would make offenders who commit aggravated robbery ineligible for parole or early release.  The bill, SB 241 sponsored by Senator Dolores Gresham (R-Somerville), requires the offender to serve 100 percent of the person’s sentence if, on or after July 1, 2009, the person commits aggravated robbery with a deadly weapon, regardless of whether the person has a prior conviction for aggravated robbery.

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Week of April 23, 2009

Capitol Hill Week

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

Senate Finance Committee approves legislation
to maintain Tennessee’s dedicated road fund

(NASHVILLE, TN), April 23, 2009 –   Tennessee’s road needs were debated on Capitol Hill this week in two key committees of the State Senate.  The Senate Transportation Committee voted to send Governor Bredesen’s budget plan to incur $350 million in general obligation bond debt to the Finance Committee without recommendation for passage and with a request the Finance Committee look at other avenues for funding bridge repair needs.  In the meantime, the Senate Finance Committee approved a bill that maintains Tennessee’s dedicated road fund by prohibiting the diversion of gas tax money through the state’s budget or appropriations bill.

The bill approved by the Finance Committee, SB 1309, would require authorization through separate legislation to divert gas tax revenues that are dedicated for road funds.  The measure would put Tennessee back in the position it was prior to 2004 and restore the appropriate checks and balances to ensure that any diversion of the funds are fully meted out through the normal legislative process.  Currently, the dedicated road fund can be diverted through a line in the appropriations bill, which is a much easier route to raid the funds.  

“People need to know that when they fill up their gas tanks that the 21.4 cents they have been told is going to go for transportation will be used for the purpose that is intended,” said Transportation Committee Chairman Jim Tracy (R-Shelbyville), who is sponsoring the bill.  “It is very important that we keep our dedicated road fund intact in order to maintain our road system without the need for incurring debt or increasing the gas tax.”

The Department of Transportation only spends the funds that are available through its dedicated revenues, gas taxes and highway user fees, and federal funding.  Called “dedicated funding,” since users pay for the roads through gas taxes and fees, a portion of the gasoline tax also goes to cities and counties in Tennessee to fund local roads.  This dedicated revenue system was put into place when the gas tax was raised to fund the road program.  Over the last several years, however, $280 million in road funds have been funneled from the gas tax to meet other state government expenditures. 

“We have a covenant with our citizens that the gas tax charged by the state at the pump is dedicated to transportation-related purposes and not something totally unrelated,” said Senate Majority Leader Mark Norris (R-Collierville).   “It is such an important principle in some states that it is provided for in their Constitutions.  If we hadn’t taken that money, we probably wouldn’t have the administration today proposing to go out and borrow $350 million more for bridges that could presumably been paid for with funds that were diverted for other things.” 

Governor Bredesen’s budget calls for the state to incur $350 million in general obligation bond debt to repair structurally deficient bridges, a major departure from Tennessee’s current “pay-as-you go” system for building roads.  The last road debt payment was paid in 1987 after Governor Lamar Alexander retired a mounting transportation debt and embarked on an aggressive road-building program.  Tennessee has continued to build roads on a debt-free basis since that time. 

Complicating the issue has been a shaky Federal Highway Trust Fund that has caused grave concerns about the state’s ability to keep up with transportation needs.  According to Transportation Commissioner Gerald Nicely, the federal government has reneged on the amount of money promised to Tennessee over the past four years.

“The federal government has not exactly had a good track record of sending us what they told us they would send,” said Lt. Governor Ron Ramsey at last week’s meeting of the Transportation Committee.  “They have rescinded several different times.  It concerns me that we sell these bonds based on the fact we are suppose to get $40 million from the federal government and then three years down the road that either drops down or completely goes away.  Then we will be responsible at that time to take the money out of the general fund to pay for the debt.”

Many legislators are also concerned about the ability to contract with builders for the road and bridge repairs due to influx of projects as a result of the stimulus funds.  In fact, the Finance Committee signed off on an expansion request plans to contract the stimulus money coming into the state as a result of the American Recovery and Reinvestment Act which will be let on May 8th and June 12th. 

The state receives $600 million each year in revenues from the gas tax.  The request for $350 million in general obligation bonds is in addition to the $572 million the state will receive over the next two years in federal stimulus funds. 

Texting while driving bill receives final Senate approval

The full Senate voted 22 to 6 on Thursday to approve legislation that would ban “texting while driving.”  The bill, SB 393 sponsored by Senator Jim Tracy (R-Shelbyville), prohibits sending or reading text messages on public roads and highways while the driver is operating a motor vehicle in motion. 

 “Over two-thirds of those under the age of 24 who were polled have admitted to sending text messages while driving,” said Senator Jim Tracy (R-Shelbyville), sponsor of the bill. “That is a very scary proposition for the safety of our roads.  Studies show that drivers of any age who text behind the wheel swerve out of their lane, with many running into head-on traffic.  This is a basic safety measure that aims to protect the drivers and all others who travel our roads.”

Law enforcement officials say the bill specifically banning texting will give them the tools to enforce banning this form of distracted driving.  Under the legislation, a violation would be a Class C misdemeanor punishable by a fine of $50.00.  The legislation also prohibits the Department of Safety from assigning a point value for the driver’s license suspension or revocation for violation under the proposed law.

“Texting is an extremely dangerous form of distracted driving,” Tracy added.  “When drivers take their eyes off the road to read or send messages, they pose a great danger to all who cross their path.  Hopefully, this measure will provide the warning needed to help stop this practice and in turn, it will make our roads safer.”

Video prompts legislators to push legislation to divert family planning
funds from Planned Parenthood to public clinics

Several State Senators held a press conference this week to announce plans to pursue legislation ensuring that family planning funds go to public women’s health services providers before private applicants are considered.  The action comes after a video was released showing violation of state law by Planned Parenthood of Memphis, a private provider that receives public funds for family planning services.

The video shows a 14-year old girl being advised by a Planned Parenthood employee to lie to court authorities regarding the alleged father of her child who the youth said was 31.   The court can approve an abortion for a minor without consulting a parent.
The video tape shows the likelihood that the Planned Parenthood employee obviously understood that the age difference between the minor and the alleged father would constitute the crime of rape in Tennessee. 

“It is amazing that this organization had an employee that advised this 14-year old to break the law,” said Senator Jack Johnson (R-Franklin), sponsor of the bill.  “She was encouraged to commit perjury.”

“Our intent was to bring this up next year,” said Lt. Governor Ron Ramsey.  “But because of what’s happened here, now is the time to bring this measure forward.”

Approximately $1.1 million in Title 10 funds are provided to Planned Parenthood for women’s health-related services like family planning, birth control, and exams.  Although current law bans the use of the money for abortion, the Title 10 funds supplement the organization’s operations.  The lawmakers believe other government-related health services like the public health departments, or government-associated medical clinics could provide these services.

“The legislation says you must exhaust all other avenues in the public sector before moving to private providers,” said Senator Diane Black, co-sponsor of the bill.  “This makes sure that public money goes to enhance services in our public health departments and public hospitals.”

The proposal, SB 470, will be heard in House and Senate Committees next week.

Senate Judiciary Committee approves two bills protecting crime victims

The Senate Judiciary Committee approved two strong crime bills this week aiming to protect victims of crime.  The first bill, SB 1531, would increase the minimum age of the Class D felony offense of child abuse and child neglect or endangerment from six to eight years or age or younger.   Under present law, it is an enhancement to Tennessee's child abuse and child neglect law if the victim is six years of age or less. This bill would enhance penalties against those who commit child abuse and child neglect in cases where the victim is eight year old or younger.

“Eight-year olds are no match for adults who wants to overpower them,” said Senator Tim Burchett, sponsor of the bill.  “This legislation protects children by making sure their abusers are kept behind bars for a longer period of time.”
The second bill, SB 1684 sponsored by Senator Bill Ketron (R-Murfreesboro), creates the Statewide Automated Victim Information and Notification System to provide victims of crime with access to timely and reliable information about the custody status of offenders in county jails.

This bill authorizes victims of crime and other concerned citizens to register for immediate notification of an offender's release, transfer, or escape.  The information kept in the notification system would be available 24 hours per day via telephone, Internet and electronic mail.

The system would be funded by money collected from a $1.00 litigation tax on criminal charges. Additionally, this bill authorizes funding of the system by grants, donations, gifts, and appropriations.

Bills in Brief

Home health care -- The Senate General Welfare, Health and Human Resources Committee has approved legislation to allow home health nurses or aides to accompany a recipient outside the home during the course of delivery of prior-approved services.  The bill, SB 851 sponsored by Senator Diane Black (R-Gallatin), allows aides or nurses to accompany their patients to such places like the doctor’s office or church.  Currently services are banned unless they are in a hospital or at home.  Additional visits or hours of care would not be approved for coverage, and services would be limited to what the recipient would be entitled to if provided exclusively at the recipient’s place of residence. 

Restaurant Menus – The Senate General Welfare, Health and Human Resources Committee also approved a bill, SB 1092 sponsored by Senator Paul Stanley (R-Germantown), to ban local governments or their boards from imposing requirements on restaurants to provide nutritional information on menus.  The concern is that some communities will impose different standards and significantly increase costs to small restaurant owners.  In March, Davidson County’s Metro Board of Health voted to enact guidelines on providing nutritional information to customers for certain restaurants, even though Congress is considering the Federal LEAN Act.  That act would implement a national standard generally accepted by restaurant owners to provide nutritional information to customers.  Adopting a county-by-county approach to the disclosure of nutritional information increases costs to restaurants, many of whom are small business owners. 

Utilities / Gas Companies -- Members of the Commerce Committee have approved the Natural Gas, Conservation, and Annual Rate Review Act.  The bill allows share- or investor-owned gas companies in Tennessee to implement a decoupling mechanism regarding the rate billed to customers that would separate their fixed cost from that which is passed through the product they sell.   Currently when customers get their bill it is volumetrically priced, meaning the fixed price is incorporated in with the cost of the product.  Decoupling would allow these companies to implement a conservation program to encourage energy efficiency with their customers. The bill, SB 1375 sponsored by Senator Jack Johnson (R-Franklin), also allows them to opt into an annual rate review mechanism which would be a streamlined rate review process.    

Animal fighting – The full Senate voted 27 to 0 to increase the penalty for being a spectator at an animal fight. Under current law, the penalty for being a spectator at a dog fight is a Class B misdemeanor, and for other animals, it is a Class C misdemeanor, which only carries a $50 fine.  This bill, SB 537 sponsored by Senator Bill Ketron (R-Murfreesboro), increases the penalty for spectators at all animal fights to a Class A misdemeanor.   Animal fighting has other crime implications like gambling, drugs, and organized crime.   Other states like North and South Carolina have driven animal fighting, like cock fighting, to Tennessee due to increased penalties imposed in their states.

Veterans / Education – A study of tuition relief program for veterans would be established under legislation meeting the approval of the Senate Education Committee this week.  The bill, SB 1693 sponsored by Senator Steve Southerland (R-Morristown)  requires the Tennessee Higher Education Commission (THEC) with the assistance of the Tennessee Board of Regents (TBR), the University of Tennessee (UT), and the Tennessee Student Assistance Corporation (TSAC), to look at programs that have been enacted in other states and report back on the feasibility of establishing such programs in Tennessee.

Safe Haven / Infants – The full Senate has voted to add fire stations and police stations to the list of locations that newborns can be taken by distressed mothers without fear of prosecution for abandonment.  Currently, the infants must be taken to a hospital or 24-hour emergency clinic.  This legislation, SB 1714 sponsored by Senator Doug Overbey (R-Maryville), adds fire stations and police stations as well.  The goal of the safe haven legislation is to set up a system that focuses on saving the baby's life, rather than the mother's liability.

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