June 5, 2010

State Senators worked late hours and into the weekend, passing a state budget and approving several important bills as the 2010 legislative session moves closer to adjournment.  The $28.6 billion no tax budget, which funds state government for the 2010-2011 fiscal year beginning July 1,  prioritizes education, jobs, public health and safety, and makes provisions for recovering from one of the worst disasters in Tennessee history. 

The legislation follows the five-year plan passed last year to phase in economic recovery through these tough times without raising taxes.  Over the last three years, the state budget has been reduced by over $1.5 billion.  This budget reflects a 4.4 percent decrease in total spending. 

The budget allocates $100 million from the state’s Rainy Day Fund for flood relief to be used by cash-strapped county and city governments for recovery and to deter local tax hikes that might otherwise be proposed for that purpose.  It also provides $19.95 million in flood relief for sales tax rebates on major appliances, furniture and building materials purchased by victims certified by FEMA for federal assistance.  An additional $10 million was added to the state’s Agricultural Enhancement Grant funds to assist farmers who were especially hard it by flooding.

The budget increases benefits, contingent upon growth in state revenue, to state employees for health care and other increased costs.  The benefits are based on longevity at an additional $50 per year, capped at 25 years and $1,250.  It provides a baseline longevity payment of $150 for those employees who have been employed 1 to 3 years.

Other highlights of the budget, Senate Bill 3919, include:

• Provides funding for York Institute
• Keeps state trooper coverage in rural counties
• Maintains the Office of Children’s Care Coordination and perinatal outreach grants to address infant mortality and early childhood health
• Funds Development District grants which promotes the renewal and revitalization of both rural and urban communities
• Increases the Agricultural Enhancement grants to support farm development and Tennessee’s agricultural community
• Provides $120 million, contingent on receiving FMAP funds, for community colleges to give them the space they need after passage of the Complete College Act of 2010 earlier this session
• Maintains funding for career ladder teacher pay and fully funds BEP capital outlay 
• Restores real estate transfer tax funds to the purposes for which originally dedicated including the Agricultural Resources Conservation Fund, Local Parks Acquisition Fund, State Lands Acquisition Fund, and Wetlands Acquisition Fund
• Provides a combined Rainy Day Fund balance and TennCare Reserves of $429 million
• Anticipates balancing recurring v. non-recurring funds next year, as originally planned
• Cuts pork projects contained in the House budget bill, including a fish hatchery.

In Brief…..

State contracts -- The Senate voted 24 to 6 to approve major legislation overhauling the way state government contracts for the purchase of up to $25 billion in goods and services.  The legislation, Senate Bill 3598,is designed to implement cost saving strategies taken from the best practices implemented by procurement officials nationwide that could save Tennessee hundreds of millions of dollars over the long run. The legislation would combine procurement of goods and services for the state into one central office housed in a department to be chosen by the governor.  The new statewide system could also take advantage of the government’s clout as a volume-buyer to leverage more competitive bidding.  Other objectives of the legislation are to provide opportunity and fairness in state contracting and implementation of performance measures to make sure taxpayer dollars are used efficiently and effectively. 

Children in state custody -- Legislation was approved sponsored by all members of the State Senate expanding foster care services for young people age 18 to 21.  The measure, Senate Bill 3101, would authorize the Department of Children’s Services to help youth who were in the system on their 18th birthday, as long as they are continuing to work on their education or are engaged in seeking employment.  Studies show that some young people who age out of foster care continue to face joblessness and homelessness after leaving state custody.  This bill will give youth in state care more options and allow them to transition to independence rather than having to experience it abruptly and in a way that leads to a tragedy or a life of continued dependence on state services.

Military / Interstate Compact on Education Opportunity for Military Children – State Senators approved  SB 1997 that aims to help children of military personnel transition from school to school when moving out-of-state.  The legislation calls for Tennessee to join the Interstate Compact on Education Opportunity for Military Children which was implemented by the Council of State Governments (CSG) in partnership with the Department of Defense.  The four areas addressed by the compact are enrollment, placement, eligibility, and graduation requirements.  Most military children will be in six to nine different school systems during their lives from kindergarten through twelfth grade.  Because of the numerous moves, usually during a school year, there are often problems with the transfer of records, graduation requirements being different, being excluded from extra-curricular activities, redundant or missed entrance/exit testing, and kindergarten and first grade entrance age variations.  The Compact, which has already been adopted by 30 states, helps to address these issues. 

Illegal immigrants / Arizona law – The Senate joined the House of Representatives this week in passing House Joint Resolution 1253, commending Arizona for their bold move on immigration policies. Arizona recently passed a law that allows law enforcement officials to require citizenship documentation on any citizen that is detained or arrested.  The recent immigration policy adopted by Arizona has received national attention. In a poll conducted by MSNBC, NBC, and Telemundo, 61 percent of Americans support Arizona's actions. Lawmakers have defended the law’s importance from both an immigration and economic standpoint.  Arizona spends over $2.7 billion every year on illegal immigrants. Individual states and municipalities across the country have implemented many illegal immigration laws in the last few years following inaction by the federal government. 

English in the workplace – The State Legislature has voted to clarify that Tennessee employers have a right to institute an English-in-the-workplace policy.  The measure, SB 2753, clarifies that employers can require that English be spoken on the job as long as it is a "legitimate business necessity" and ensures "safe and efficient operations.”   

DUI / repeat offenders – The General Assembly has approved Senate Bill 844 which seeks to prevent the incentive for offenders to delay their trials so that they fall outside of the 10-year DUI toll period that is in current law.  Presently, the state calculates the time period for a drunk driver to be charged with a repeat offense from the date of conviction to the day the offender is convicted of the repeat offense.  This bill adjust that calculation to make the 10-year period run from the date the offense was committed to the date of the commission of a repeated offense.  The change prevents repeat offenders from delaying their trial to avoid stiffer penalties imposed upon a second DUI conviction.  

Domestic Violence / Counseling – Courts would be allowed to order domestic abuse perpetrators to attend counseling programs under legislation passed this week.  The measure, Senate Bill 2709,prescribes a list of counseling programs the judges can order if they choose, including, intervention programs that are certified by Domestic Violence State Coordinating Council.  The bill increases the maximum penalty for those convicted of the crime from $200 to $225, with the proceeds going to grants for domestic violence shelter programs. 

Worker’s compensation -- The full Senate unanimously approved legislation that creates a procedure for sole proprietors, partners, officers of corporations, and members of limited liability companies engaged in the construction industry to file for an exemption from obtaining workers’ compensation insurance to cover themselves.  The legislation, Senate Bill 3591, reinstates the requirement that sole proprietors and partners engaged in the construction industry carry workers’ compensation insurance on themselves, but provides a mechanism for exemption.  The bill is supported by the National Federation of Independent Businessmen and the Homebuilders Association of Tennessee. 

Construction Zones – Lawmakers voted to approve legislation which aims to curb the number of deaths in work zones due to reckless driving.  The measure, Senate Bill 2882, adds to the list of charges that can be considered under the state’s vehicular homicide law, cases where the cause was the driver’s knowing failure to exercise due care resulted in the death of a construction worker or an employee of the Tennessee Department of Transportation in a work zone.  There were 12 fatal crashes in construction zones last year.  The crime would be punishable as a Class D felony. 

Medical School Authority -- The General Assembly has approved legislation that would allow a combination of government entities to collaboratively establish a Medical School Authority.  The legislation, Senate Bill 131, would give the Authority the ability, after a study is conducted by the Tennessee Higher Education Commission, to finance the construction of buildings for a school.  If public funds are involved, THEC must approve the establishment of the school.  THEC would be tasked with studying the impact that a proposed medical school would have on surrounding universities, the community, as well as looking at how it meshes with their Master Plan mission for higher education in the state. 

Sex Offenders – The General Assembly has adopted a bill adding kidnapping of a minor and exploitation of a minor by electronic means to the definitions of sexual offenses.  The measure, Senate Bill 2724, also includes aggravated prostitution and trafficking for sexual servitude within the definition for violent sexual offenders requiring registration on the Sexual Offender Registry.   The bill adds other provisions to clean up the Sexual Offender and Violent Sexual Offender Registration, Verification and Tracking Act, including requiring all offenders to provide proof of identification to their registering agency no later than 60 days from the date on which an offender is required to register.  It requires a person convicted of an offense not classified as a violent sexual offense before July 1, 2010, that is now classified as a violent sexual offense who is not currently on the Sex Offender Registry to comply with registration, verification and trafficking requirements for life.