Key Issues / 2013 legislative session

Key issues approved

1.) BUDGET — Food Tax Relief and Hall Tax Relief / Ban Income Tax

2.) JOBS — Workers’ Comp / LEAP / Cont. Unemployment Comp Reform / Trusts

3.) COURTS / AG — Founding Fathers’ Court Reform / AG

4.) CRIME — Gang Crimes / Human Trafficking Package / Prescription Drug Laws

5.) PUBLIC SAFETY / DUI – Ignition Interlock and DUI Restructure

6.) HEALTH CARE — Resisted Obamacare Expansion for TN Plan / New Funds

7.) K-12 EDUCATION — School Safety / Lifting Ban on Systems / New Funding

8.) HIGHER EDUCATION — Major Investment / Increasing Graduation Rates

9.) GOVERNMENT EFFICIENCY — EBT Fraud / Retirement System / Repealer

10.) HANDGUNS — Safe Commute / Publication / Reporting by Mental Health

1.) Budget / Tax Relief / Ban Income Tax

The budget is balanced / Tennessee’s Financial Management is among best in nation -In direct contrast to Washington, Tennessee’s budget is balanced. The General Assembly has worked diligently to manage state finances in a fiscally responsible manner. Tennessee is triple-A rated and the state’s most recent bond sale was done at the lowest interest rates in recorded history. The state is ranked 48^th lowest in the nation in per capita in debt and 47th in per capital tax burden, all while balancing the state budget.

The budget invests in K-12 education – The budget fully funds the Basic Education Program, invests $51 million to assist local governments in paying for technology transition upgrades in schools across the state, makes available $34 million to address ongoing capital needs that can be used for increased security measures to protect students, appropriates more than $35 million for K-12 teacher salary increases and provides $47 million above annual funding to help improve Tennessee’s lowest performing public schools.

Higher Education is a financial priority in the budget — The budget also provides $307.3 million to fund capital outlay projects in higher education, $35 million to fund the state’s new outcome-based formula adopted under the state’s Complete College Act, $5 million to provide assistance to 2,675 needy students and $16.5 million for equipment for Tennessee’s Technical Centers and Community Colleges. In addition, the budget establishes a partnership with WesternGovernorsUniversity to create an online, competency-based university that is geared to the 800,000 adult Tennesseans that have some college credit but didn’t graduate with an associate or four-year degree. The budget also establishes an endowment of $35 million using operational reserve funds from the Tennessee Student Assistance Corporation (TSAC) to provide nearly $2 million each year to support “last dollar” scholarship programs. These scholarships fill the gaps between students’ financial aid and the real costs of college, including books, supplies, room and board.

Higher Education Funding / Articulation Agreement — The budget contains $300,000 for implementing legislation passed last year to make it easier for students to transfer credits between community colleges, private colleges and state universities. That new law authorized community colleges within the Tennessee Board of Regents (TBR) to enter into reverse articulation or reverse transfer agreements with four year institutions within the TBR system and institutions within the University of Tennessee, as well as private colleges accredited by the Southern Association of College and Schools (SACS).

Articulation agreements, which were developed as part of the state’s Complete College America Act, are arrangements between higher education institutions that facilitate the transfer of course credits from one school to another. Agreements outline specific courses and letter grades completed at the community college that will transfer to a university or private college. They help students begin more defined curriculums so that students understand exactly which courses will and will not transfer as they move between colleges and keep them from taking repetitive courses that might lengthen their time to degree completion. The agreements could also work to give students attending a four-year college who do not complete their degree the opportunity to transfer their credits to a community college if they choose to earn an Associate’s Degree instead.

Last years law is PC 662

Other highlights of the budget include:

$104 million cost increase for a 1.5% pay raise salary market adjustment for state employees;
$46.3 million cost increase for state employee group health insurance;
continues the state 401 (K) match at $50 per month;
reduces state employee positions by 299 or .08%;
$350 million cost increase for TennCare inflation and related expenses;
$8.6 million cost increase for Cover Tennessee programs;
$7.5 million cost increase for Children’s Services;
$100 million to the Rainy Day Fund, bringing it to $456 million by June 30, 2014;
$79.6 million cost increase for local jail payments, a new prison in BledsoeCounty, medical contracts and other inflationary growth;
$3.9 million cost increase for mental health;
$4.3 million in capital outlay for the MontgomeryCounty veterans’ home;
$134 million in capital outlay for state building improvements through the Facilities Revolving Fund;
$8 million in one-time funds for tourism marketing;
$1 million in one-time funds for the College 529 Savings Plan;
$37.9 million for health and wellness initiatives;
$110 million for economic development; and
provides tax relief for low income seniors, veterans and the disabled by fully funding the growth of the property tax freeze program enacted in 2007

The budget assumes a general fund revenue growth of 3.89% during the 2013-14 fiscal year.

Budget Contains Tax Relief for Citizens — The budget allows more senior citizens to qualify for Hall income tax relief, while continuing a reduction in the state sales tax on food from 5.25% to 5.0%. These proposals have been legislative priority of many Republican lawmakers for the past decade.

Since enactment of the Hall tax in 1929, the use of investment savings has grown as a primary source of retirement income. The legislation approved this year raises the Hall income tax exemption level for citizens age 65 and older from $26,200 to $33,000 for single filers and from $37,000 to $59,000 for joint filers.

This legislation builds on Hall tax relief efforts taken in 2011 that raised the exemption level for senior citizens from $16,200 to $26,200 for single filers and from $27,000 to $37,000 for joint filers. The food tax reduction legislation also builds on 2012 legislative action to reduce the state portion of the sales tax on grocery food from 5.5% to 5.25%.

The 2013-14 state budget legislation provides a total of almost $43 million which will go back to taxpayers through a combination of tax relief proposals. In addition to the Hall tax and food tax relief bills, the budget provides funds to raise the inheritance tax exemption level from $1.25 million to $2 million as authorized by a new law passed by the General Assembly last year. Finally, the budget proposal provides tax relief for low income seniors, veterans and the disabled by fully funding the growth of the property tax freeze program enacted in 2007.

Ban on State Income Tax — The “No State Income Tax” constitutional amendment is now set to go to voters in November 2014 as a result of a resolution passed by the General Assembly this year. The resolution would clarify a prohibition in the Tennessee Constitution against an income tax and a payroll tax, putting to rest future income tax debates.

The resolution specifies that the state legislature as well as Tennessee cities and counties shall be prohibited from passing either an income tax or a payroll tax, which is a tax on employers that is measured by the wages they pay their workers. A payroll tax has been proposed in recent years by elected officials in ShelbyCounty as a way around an income tax.

Budget Bills Senate Bills 501, 502, 503, and 504; Tax Relief Bills Senate Bill 198, Senate Bill 199; Ban on Income Tax Senate Joint Resolution 1

2.) Jobs

Workers’ Compensation — Legislation approved by the General Assembly this year reforms Tennessee’s workers’ compensation system to make the state more attractive to job creation, while protecting injured employees. Senate Bill 200 would cut costs to businesses, create more predictability, improve the efficiency of claims management, simplify the physician selection process for injured employees and reduce benefit delays to workers. The legislation comes as a result of two comprehensive studies tasked with identifying possible recommendations for improving the program.

Tennessee is one of only two states in which workers’ compensation cases are settled primarily in the courts. In following, the state’s workers’ compensation premium costs are higher in Tennessee than in bordering states.

Highlights of the bill include:

sends employee claims to a newly created Court of Workers’ Compensation Claims, rather than going to a trial court;
provides neutral application of the workers’ compensation law so that neither side has an unfair advantage;
gives a clearer standard for causation to require that the injury arose primarily out of employment rather than non-work-related activities;
provides disability benefits for injured workers based on a maximum of 450 weeks instead of the current 400 weeks;
modifies requirements for medical panels through development of advisory medical treatment guidelines by January 1, 2016 that are based on best practices in medical care for work-related injuries and / or illnesses; and
creates a new Ombudsman program to help employees and employers who are unrepresented get the assistance they need.

Senate Bill 200

Unemployment Compensation Reform – Legislation was approved this year that builds upon major unemployment compensation reforms passed in 2012. Before passage of that law, Tennessee did not have a good system in place to verify a claimant’s efforts of seeking employment while on unemployment benefits. It required the Department of Labor to conduct weekly audits to ensure that claimants were actively seeking work while on benefits. Those claimants who are audited under the 2012 law on average return to work five times faster than those who were not. This year’s legislation raises the number of audits to be conducted from 1,000 per week to 1,500 per week.

Last year’s legislation clarified the definition for misconduct as it affects unemployment insurance compensation so that a claimant who is consciously insubordinate, knowingly violates state regulations, has been caught stealing or is chronically absent could not receive benefits. This year’s bill continues those efforts to define misconduct by adding to that definition any conduct that is constituted as a criminal offense for which the employee seeking benefits. It applies to cases involving dishonesty that arises out of the claimant’s employment or that was committed while he or she was acting within their scope of employment. If an employee was fired for cause as a result of a conviction of a misdemeanor or felony, the bill removes the employee’s right to reconsideration of benefits currently in law.

The legislation also helps ensure the solvency of Tennessee’s Unemployment Trust Fund by returning the base period benefits from the current level to pre-2009 stimulus funding, which required Tennessee to expand benefits.

Senate Bill 783 / Last year’s law is PC 1050

LEAP / Jobs and Higher Education — Senate Bill 1330 passed the General Assembly this year to create the Labor Education Alignment Program (LEAP). The measure allows students at Tennessee’s technology centers and community colleges to combine occupational training in a high-skill or high-technology industry with academic credit and to apply that experience toward a degree. The legislation directs several state entities to work together in both establishing and carrying out the initiative.

The legislation is drafted so that wages or other compensation received by students will not impact eligibility for state need-based financial assistance or grants. The legislation is modeled after “cooperative education” programs where students are paid to learn while applying what they learn at work for credit toward a degree. This program recognizes that an important outcome of a student’s education is job opportunity. Having employers work closely with state agencies creates increased collaboration and focus across the board, giving students the opportunity to attain credentials.

Senate Bill 1330

Trusts – Legislation was approved this year which is a continuation of Tennessee’s efforts to establish Tennessee as the most attractive legal environment in the nation for trust and trust services. Senate Bill 713 would bring Tennessee trust law to the forefront by demonstrating leadership in six, broad ranging areas. These areas are express, statutory authority for dynasty and purpose trusts, asset protection for self settled and third party settled trusts, protection of directed trustees and trust protectors; flexible trust administration and modification and well-developed and flexible bank regulatory law. The strength of the bill is that is strengthens trust law against court challenges which may overturn the settlor’s intent.

Senate Bill 713 / by Stevens, Bowling, Henry / Passed Senate / House Calendar / DOE: July 1, 2013

3.) Courts / AG

Courts / Founding Fathers Plus — Major legislation has been approved by the General Assembly that alters the way Tennessee’s appellate judges are chosen, mirroring the Founding Fathers plan in the U.S. Constitution. Named the “Founding Fathers Plan Plus,” the resolution would allow the governor to appoint judges for eight-year terms subject to confirmation by the legislature.

Approval by the 108^th General Assembly required a two-thirds plurality and is step two of a three-step process of amending the state constitution. Step one occurred when the resolution passed the Senate and the House with bipartisan support last year. Step three is a ratification vote by the people on the November 2014 ballot.

Article VI, Section 3 of Tennessee’s Constitution requires that Supreme Court justices “shall be elected by the qualified voters of the state,” which concerns many lawmakers who believe the current system does not fully satisfy that mandate.

Under the state’s current Tennessee Plan for selecting Supreme Court justices and other appellate judges, a 17-member Judicial Nominating Commission reviews applicants and 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 appellate judges must stand for approval by the voters after completion of their term, with the people deciding whether to “retain” or “replace” them.

The Founding Fathers Plan Plus improves upon the federal system by prohibiting legislative inaction, considered by some as the one flaw in the federal system. Tennessee lawmakers would be forced to vote on judicial nominees within sixty days or the nominees would be confirmed by default. The sixty-day clock runs from either the date of the appointment, if made during the annual legislative session, or the date of the convening of the annual legislative session, if made out of session. Unlike the federal plan, the Tennessee bill would also add confirmation by the House of Representatives, in addition to the Senate.

There are 29 appellate court positions in Tennessee that would be affected by the bill. The state’s 155 popularly elected trial court positions will not be affected by the legislation.

Senate Joint Resolution 2

Attorney General — The Senate voted 22 to 9 for a resolution calling for the State Attorney General (AG) to be selected by the General Assembly provided voters agree. Currently, the Tennessee Attorney General is selected by the state’s Supreme Court and serves until he or she resigns or are replaced by the five Justices. This resolution would give citizens the opportunity to vote on changing that process to provide that the Attorney General be selected in a joint convention of the legislature to a four-year term beginning in January 2019. The constitutional amendment process requires approval by both the 108th General Assembly currently in session, and the 109th, which will take office in 2015. If approved, the question would then go to voters in a statewide referendum in the 2018 general election.

Senate Joint Resolution 196

4.) Crime

Crime / Gangs – The General Assembly approved several bills to make Tennessee’s streets safer this year, including major legislation to combat gang crime in Tennessee. Gang related crime in Tennessee has risen steadily in the last four years, as incidents rose about 110 percent from 2005 through 2011 according to the Tennessee Bureau of Investigation (TBI). The TBI also reports that cities with fewer than 50,000 residents saw gang crimes rise 232 percent as members are migrating from urban areas to recruit new members, expand their drug distribution territories, form new alliances and collaborate with rival gangs and criminal organizations for profit and influence.

Last year, the General Assembly increased sentences for certain serious crimes committed by groups of three or more acting in concert. Lawmakers also approved tougher sentences for gun possession by criminals with prior violent or drug felony convictions. This year’s legislation continues those efforts by rewriting and simplifying the state’s Criminal Gang Enhancement statute, which prosecutors report is too difficult to interpret and navigate.

Currently, prosecutors must prove the group is a “criminal gang;” show the defendant is a “criminal gang member;” demonstrate the gang and/or an individual has committed a criminal gang offense, and establish the group has a pattern of “criminal gang activity.” The revised statute lists the specific offenses considered to be criminal gang offenses rather than asking prosecutors and courts to interpret today’s more vague definition.

According to 2012 data from the Tennessee Bureau of Investigation, gang members now outnumber law enforcement officers 2 to 1 in the state. This bill gives law enforcement another tool in their toolbox to fight the epidemic problem Tennessee is facing with criminal gangs.

Senate Bill 202, Senate Bill 291

Human Trafficking – A package of legislation was approved this year that builds on the legislature’s ongoing efforts to attack the problem of child prostitution and human trafficking in Tennessee. The legislation is part of a series of bills designed to enhance penalties against those who patronize or promote the illegal act.

According to a 2011 Tennessee Bureau of Investigation (TBI) study, human sex trafficking is a widespread problem in Tennessee, with 78 of the 95 counties reporting the crime has occurred within their boundaries during the last 24 months. The study showed that sixty-two counties reported the presence of minor human sex trafficking.

The package includes:

Senate Bill 446 which adds aggravated sexual exploitation of a minor, trafficking for commercial sex acts, patronizing prostitution and promoting prostitution, to the list of offenses for which a minor or a law enforcement officer posing as a minor might be solicited. According to the Tennessee Department of Corrections, there has been an average of almost 15 admissions each year over the past 10 years for trafficking for commercial sex acts, patronizing prostitution, promoting prostitution, and aggravated sexual exploitation of a minor.
Senate Bill 1027 which allows children who are victims of trafficking for commercial sex acts and patronizing prostitution the opportunity to testify outside of the courtroom by using a two-way closed circuit television. Currently, the same courtesy is afforded to victims of aggravated sexual battery, rape, incest, aggravated child abuse, kidnapping, aggravated kidnapping, especially aggravated kidnapping and criminal intent to commit any of the offenses above.
Senate Bill 1028 which extends the statute of limitations for commercial sex acts and soliciting the sexual exploitation of a minor to ten years after the victim turns 18, and patronizing and promoting prostitution of minor to 15 years after the victim has turned 18. In many instances, victims are unaware of the fact they are victims at the time of their 18^th birthday. This legislation would allow them more time and maturity to make that realization.
Senate Bill 1029 which adds trafficking for commercial sex acts to the list of gang related offenses.
Senate Bill 1030 which prohibits defendants from using consent as a defense in the cases of soliciting, sexual exploitation of a minor, aggravated sexual exploitation of a minor and especially aggravated sexual exploitation of a minor.

Senate Bill 1031 which would prohibit the lack of knowledge of a person’s age as a defense against the charges of patronizing prostitution or soliciting the sexual exploitation of a minor. The legislation does provide an exception to this prohibition in instances where the defendant and victim are within four years of age of each other.
Senate Bill 1032 which increases the charge of promoting the prostitution of a minor from a Class E felony to a Class A or B felony.
Senate Bill 1033 which creates a new Class D felony offense for promoting travel for prostitution. The bill also deletes the definition of “sexual servitude” and changes it to “commercial sex act” and ensures that the purchase is an offense punishable under Tennessee law.
Senate Bill 1034 which would create grounds for the termination of parental rights when a parent or guardian is convicted of trafficking for commercial sex acts.
Senate Bill 1035 which provides defendants or victims of sex trafficking restitution of special damages which include medical- and counseling-related expenses the victim incurred as a result of sex trafficking and other offenses.
Senate Bill 1036 which would create a Human Trafficking Task Force. The group would be composed of 19 members and would be charged with the duty of creating a plan for the prevention of Human Trafficking within the state. The chairman of the committee would be appointed by the governor and the remaining members by various departments.
Senate Bill 1038, which adds trafficking for commercial sex acts, promoting prostitution, patronizing prostitution, solicitation of a minor, soliciting the sexual exploitation of a minor and exploitation of a minor by electronic means to the list of criminal acts that can constitute a charge of unlawful debts.
Senate Bill 1390 which broadens the definition of custodian to include anyone who physically possesses or controls a child. This proposal would enable Child Protective Services to remove a child from the care of a trafficker in cases in which the trafficker is not a parent, guardian or legal custodian, which, under current law, are the only people considered custodians.

Prescription Drugs / Addison Sharp Prescription Regulatory Act — Legislation that is designed to curb the abuse of prescription drugs in Tennessee won approval during the 2013 legislative session. The bill is named the Addison Sharp Prescription Regulatory Act of 2013. Addison Sharp was a resident of Knoxville, Tennessee whose young life was tragically cut short in 2012 by an overdose of prescription medication. Since this tragedy, his family has been working with legislators, law enforcement and medical professionals to attempt to decrease the number of lives being taken by this growing epidemic. This legislation stemmed from that tragedy and is a result of the comprehensive and collaborative effort by citizens, legislators, law enforcement and medical professionals to enhance and tighten the regulations on prescribers and pain management clinics.

Prescription drug abuse is at epidemic levels in Tennessee. It not only adversely affects the public health, but the public safety and economy. This legislation provides additional and useful tools to fight this problem. Provisions of the bill would:

Provisions of the Senate Bill 676 would:

Directs the Commissioner of Health to develop a standard of care on prescribing the most commonly abused prescription medications and provide this information to the various licensing boards who oversee prescribers;
Requires two hours of training for medical professionals every two years on these guidelines and other pertinent requirements such as medicine addiction and risk management;
Limits the dispensing of opioids and benzodiazepine to 30 days. (The prescription may still be issued for 90 days, but this will limit it to a 30-day supply at a time);
Requires reporting to the Controlled Substance Monitoring Database by all prescribers who dispense at their offices;
Clarifies the definition of manufacturer and wholesaler of drugs and require the reporting of the drug distribution to the State of Tennessee as they do to the DEA;
Strengthens the definition of pain management clinics by closing a loophole in the law that has allowed some operators to avoid registration;
Requires a patient of pain management clinics to have a current and valid government-issued identification or health insurance card for monitoring purposes;
Limits the medical director at pain management clinics to four clinics total;
No longer authorizes money order payments as method to reimburse pain management clinics for services essentially putting an end to cash business; and
Enhances the fine for violations on unregistered clinics to between $1,000 – $5,000 per day to substantially impact those who choose to operate illegally.

Senate Bill 676

Prescription Drugs / TennCare Fraud – The House and Senate has passed legislation which clarifies Tennessee’s TennCare’s anti-fraud law to prevent prescription drug abuse in the program. The legislation makes it easier to prosecute in the jurisdiction where law enforcement authorities made the arrest. The proposal also changes the phrasing in state law prohibiting “doctor shopping” to provide that a violation occurs when the TennCare benefits are used instead of when TennCare pays for the clinical visit or for the controlled substances. Written to stop fraudulent use of TennCare benefits, especially in the case of controlled substances, this law ensures that a person who knowingly sells, delivers or aids and abets fraud will face a Class E Felony, which includes mandatory jail time.

Prescription Drugs / Licensing Boards – Approval was given to a bill requiring any podiatrist, dentist, medical doctor, nurse, optometrist, osteopathic physician or physician assistant who is indicted in this state for an offense involving the sale or dispensing of controlled substances, to report to the appropriate licensing board within seven days of such indictment. The legislation encourages the district attorneys general and appropriate federal attorneys to alert the appropriate licensing board when an indictment regarding the sale or dispensing of a controlled substance takes place so they can take appropriate corrective action to revoke the license of an abuser.

Prescription Drug Fraud – Legislation that would create the criminal offense of prescription drug fraud in cases of identity theft has passed the Senate. The bill defines this offense as using fraud or forgery to obtain a controlled substance. It also adds the theft of identifying information of a prescriber used to obtain a controlled substance to the charge of identity theft.

Prescription Drugs / Pharmacists Discretion – The General Assembly passed another measure aimed at fighting drug abuse in Tennessee by giving pharmacists the right to deny a patient medication if they believe the drug is not being used for a legitimate purpose. Moreover, pharmacy owners and / or managers not interfere with a pharmacist’s acting on their professional opinion in denying the medication under such circumstances, and pharmacists may not be penalized.

Prescription Drugs / Pain Management Clinics – Legislation has passed prohibiting pain management clinics from dispensing controlled substances, striking a compromise between making sure proper medication is available to law-abiding citizens and keeping addictive substances out of the hands of abusers. Pain clinics have become common businesses in the state and have been tied in the past to Tennessee’s high level of substance abuse. According to the Department of Health, prescription opioids, specifically hydrocodone, alprazolam, and oxycodone, are the top three prescribed drugs in the state and are used frequently to treat pain. This bill makes sure that patients go through the necessary channels to receive potentially dangerous medication. That means making sure they see a doctor, receive a valid prescription, and then visit a certified pharmacist, instead of just receiving their medication at the clinic.

Prescription Drugs / Mid-level Practitioners — Legislation was passed this year that requires a mid-level practitioner to only prescribe controlled substances that are on an approved formulary, or if not, mandates that they consult a supervising physician to receive his or her authorization on an individual patient basis. The bill also limits the episode of treatment of Schedule II and Schedule III narcotics in which advance practice nurses and physician assistants can prescribe to a 30-day course of treatment unless the supervising physician is consulted. In addition, the Department of Health would be required to send correspondence to the top 50 prescribers of controlled substances requesting them to justify the need for prescribing that many narcotics.

Senate Bill 676, Senate Bill 500 , Senate Bill 955, Senate Bill 1363, Senate Bill 962, Senate Bill 705 , Senate Bill 529

5.) Public Safety on Roads / DUI

DUI / Interlock Devices — The General Assembly has approved key legislation to curb drunk driving which requires the use of ignition interlocks for all convicted drunk drivers. In 2011, 257 people were killed in Tennessee in alcohol-related crashes, which is approximately 27% of all traffic fatalities in the state.

The interlock legislation decreases, from 0.15 percent to 0.08 percent, the breath or blood alcohol concentration (BAC) that is considered an enhanced offense for purposes of issuing a restricted driver license. The bill also requires the interlock device be capable of taking a photo, to ensure that another person does not provide the sample for a convicted offender.

Interlock devices are small pieces of equipment attached to the steering wheel of a car with a tube that the driver must breathe into in order to allow the ignition to start. The newest ignition interlock technology makes it easier for courts to require DUI offenders to utilize the device, including cameras to ensure that the person tested is the correct driver.

Ignition interlocks are critical to eliminating drunk driving, as 50% to 75% of convicted drunk drivers will continue to drive on a suspended license. According to the Centers for Disease Control and Prevention (CDC), requiring interlocks for all convicted drunk drivers saves lives and is effective in reducing drunk driving recidivism by 67%.

In December, the National Transportation Safety Board (NTSB) and American Automobile Association (AAA) came out in support of requiring ignition interlocks for all convicted drunk drivers. The NTSB’s recommendations follow the July 2012 enactment of Surface Transportation Reauthorization legislation, known as MAP–21, which includes a number of drunk driving reforms, including providing incentive grants to states that adopt all-offender ignition interlock laws.

The average first offender has been on the road 80 times drunk before their first arrest. Currently, 17 states require interlocks for all convicted drunk drivers.

DUI / Restructure Drunk Driving laws — The General Assembly also approved legislation rewriting Tennessee’s DUI laws to make them more understandable by prosecutors, defense lawyers and citizens. The state’s DUI laws have received so many additions (58 pages worth) over the years that they have become very complicated and were in need of streamlining.

Senate Bill 670, Senate Bill 186

6.) Health Care

Health Care — Governor Bill Haslam’s announced on March 27 that he will not expand TennCare rolls under the federal Affordable Care Act. The Governor, instead, said he is working on a “Tennessee Plan” to reform health care that leverages federal dollars to purchase private health insurance for Tennesseans without access to coverage.
Haslam’s plan, which takes on the critical issue of aligning incentives among users, payers and healthcare providers would:

Leverage available federal dollars to purchase private health insurance for Tennesseans up to 138% of the federal poverty level who don’t have access to health insurance, which would translate to 175,000 more insured Tennesseans;
Allow co-pays for those who can afford to pay something;
Include a definitive circuit-breaker or sunset of the plan that could only be renewed with the General Assembly’s approval; and
Reform the payment structure for providers so they are compensated for health outcomes, not just based on services performed.

A report issued by the Kaiser Family Foundation’s Commission on Medicaid said that Tennessee will see an increase of 331,000 on its rolls by 2019, or 29.9 percent, with 246,000 of those being previously uninsured under this level of expansion. The report projects new spending for the state would be $716 million on the low side and $1.5 billion on the high side.

Each year, Tennessee spends about a third of the state’s budget, $9 billion, on Medicaid.

Last year, 77 Tennessee lawmakers joined the State of Florida, 25 other states and the National Federation of Independent Business in filing as amicus parties (friends of the court), challenging the constitutionality of the individual mandate in the Patient Protection and Affordable Care Act (PPACA). Although the Court upheld the “individual mandate” requiring citizens to purchase health insurance, it struck down the portion that would have punished states for not expanding eligibility for their Medicaid rolls. As a result of that decision, Congress can deny expansion funds to the states, but cannot cut Medicaid for states which do not increase their rolls.

Exchanges – The Governor’s March announcement follows one he made on December 10 that the state would not establish a state-based health care exchange under the Affordable Care Act. Originally, it was thought that only states with small populations like Delaware or Montana would rely on the federal government to build their exchanges. However, only 18 states submitted a state-based exchange blue print to the Obama administration for approval, with the remaining either choosing not to set up an exchange or opting for a federal-state partnership.

Healthcare funding — The budget included $5.2 million in additional revenue from the tobacco settlement for a total of $43.1 million to support Healthy Tennessee and

$1.37 million restored for the Department of Mental Health and SubstanceAbuseServicesPeerSupportCenters. This funding is in addition to the continued approval of the Hospital Coverage Assessment to prevent potentially catastrophic cuts to Tennessee hospitals. The assessment is used to draw down federal funds available through a Medicaid match program approved by the Centers for Medicare and Medicaid Services (CMS). It will continue to provide the critical dollars necessary to help with the hospitals unreimbursed TennCare costs.

Amendments were added to the budget to include $1.86 million in additional funding for the mentally ill, $2.3 million to continue grants for adolescents recovering from alcohol and substance abuse, $2 million to increase reimbursement paid to providers for services to citizens with intellectual and developmental disabilities and $400,000 to help veterans who suffer from post traumatic stress disorder (PTSD).

In addition, the budget included cost increases of $350 million for TennCare inflation and other health care costs and $3.9 million for mental health.

7.) K-12 Education

K-12 Education Funding (Repeat from Section 1 on the Budget)

The budget Invests in K-12 Education – The budget fully funds the Basic Education Program, invests $51 million to assist local governments in paying for technology transition upgrades in schools across the state, makes available $34 million to address ongoing capital needs that can be used for increased security measures to protect students, appropriates more than $35 million for K-12 teacher salary increases and provides $47 million above annual funding to help improve Tennessee’s lowest performing public schools.

School Safety — Legislation that aims to help keep students safe at school won final approval this session which empowers a local director of schools, in conjunction with the school principal, to hire retired law enforcement officers to provide security. The bill comes in the wake of the shooting in Newtown, Connecticut in December, which pointed to the need to increase school safety. POST certification requires extensive law enforcement training, including the handling of firearms The legislation also allows a teacher to possess a gun at school if they are a retired law enforcement officer that is Peace Officer Standards and Training (POST) certified. However, all decisions regarding the carrying of firearms would be made at the local district and school level.

The School Security Act of 2013 would give school superintendents the option to hire retired police officers, highway patrol officers, federal agents, game wardens and other personnel with extensive weapons or law enforcement training and who have a handgun carry permit to serve as security at schools upon receiving 40 additional hours of specialized training. The 40-hour training would include education in crisis management and hostile situations in the school setting. Teachers who are authorized to carry guns as result of their law enforcement background would also have to go through the specialized training. The bill also requires the chief of the local law enforcement agency to be notified that the employee has been authorized to carry a gun.

The Sandy HookElementary School shooting was also the impetus behind legislation requesting the state’s BEP Review Committee to make a recommendation in its annual report this year as to whether the state’s school funding formula should be modified to include a component regarding school safety and security.

Governor Bill Haslam, state law enforcement officials and homeland security experts met with education leaders from more than 120 school systems earlier this year to discuss school safety. Mental health specialists and emergency management officials also joined the group to think through additional measures that school districts can put into place to avoid a tragedy like the one which occurred in Newtown. The group reviewed best practices and new ideas on school safety, noting that the right plan would likely vary district by district. Both of these proposals fit into that plan.

Senate Bill 570, Senate Resolution 30

Education Reform / Municipal School Districts — As part of a continuing effort to reform education in Tennessee, the State Senate passed Senate Bill 1353 on Monday, lifting the ban on municipal school districts implemented in 1998. The bill gives citizens in municipalities with at least 1500 students permission to vote on whether to create a municipal district and whether they are willing to raise taxes to pay for it.

Municipal school districts in place prior to the 1998 ban statistically contain higher performing schools, with 88% of those districts currently maintaining above average TCAP or ACT scores. Under new law, 29 more municipalities might qualify to apply for a special school district. In recent years, the General Assembly has authorized the creation of other new types of schools that did not exist when the municipal ban was imposed, including charter schools, achievement schools and virtual schools.

The Senate, likewise, approved a bill which effectively authorizes an unlimited number of municipal districts in any county provided the requirements of state law and the rules of the State Board of Education are met.

Senate Bill 1353, Senate Bill 1354

Alternative Diploma Act – State lawmakers voted to approve the Tennessee Alternative Diploma Act on final consideration this week. There are over 930,000 individuals over age 18 that do not have a high school diploma or a GED. The bill provides an alternative to the current GED diploma due to increased cost for the test and the new mandatory online format. The legislation is the result of work done by a Task Force consisting of the Department of Education, the Department of Labor and Work Force Development, the State Board of Education, the Tennessee Higher Education Commission and the Board of Regents. The group came up with a viable alternative that meets current requirements but is “portable, affordable and accessible.” The implementation of the “Lois DeBerry Alternative Diploma Act” will provide a means to improve economic development to have as many adults as possible qualify to pursue better employment opportunities.

Senate Bill 105

8.) Higher Education

FUNDING (REPEAT FROM SECTION 1 ON BUDGET)

Higher Education is a financial priority in the budget — The budget also provides $307.3 million to fund capital outlay projects in higher education, $35 million to fund the state’s new outcome-based formula adopted under the state’s Complete College Act, $5 million to provide assistance to 2,675 needy students and $16.5 million for equipment for Tennessee’s Technical Centers and Community Colleges. The budget also establishes an endowment of $35 million using operational reserve funds from the Tennessee Student Assistance Corporation (TSAC) to provide nearly $2 million each year to support “last dollar” scholarship programs. These scholarships fill the gaps between students’ financial aid and the real costs of college, including books, supplies, room and board.

Higher Education Funding / Articulation Agreement – In addition, the budget contains $300,000 for implementing legislation passed last year to make it easier for students to transfer credits between community colleges, private colleges and state universities. That new law authorized community colleges within the Tennessee Board of Regents (TBR) to enter into reverse articulation or reverse transfer agreements with four year institutions within the TBR system and institutions within the University of Tennessee, as well as private colleges accredited by the Southern Association of College and Schools (SACS).

Increasing College Graduates — Legislation that would provide affordable access to quality post-secondary programs for working adults has been approved by the full Senate. According to the most recent data, 20.8% of Tennesseans age 25 and over have some college credits but no degree. The bill enables the state to partner with Western Governors University (WGU) to create an online, competency-based university that is geared to the 800,000 adult Tennesseans that have some college credit but didn’t graduate with an associate or four-year degree. After a one-time investment in WGU Tennessee, the University will provide an effective means to address workforce needs in Tennessee without any ongoing cost to the state. The Governor has set the goal of increasing the percentage of Tennesseans with a postsecondary credential from 32% to 55% by 2025. WGU Tennessee fills a critical gap in the state’s postsecondary landscape to help achieve that goal.

Senate Bill 195,

9.) Government Efficiency

Government Efficiency / Banning Abuse of Welfare Benefits — Legislation to curb abuse of purchases made through Electronic Benefit Transaction (EBT) cards used by recipients of the Temporary Assistance to Needy Families (TANF) program passed during the 2013 legislative session. The bill prohibits use of a welfare recipient’s EBT card in liquor stores, adult cabarets, casinos and other gambling facilities.

Under the bill, welfare recipients who use EBT benefits at liquor stores, adult cabarets or gambling establishments would be subject to disqualification from the program as permitted by federal law. The measure also calls for those misused benefits to be recouped by the Tennessee Department of Human Services.

In addition, the legislation prescribes civil penalties to businesses that sell those products and accept EBT benefits as payment in violation of the law. The fine for a violation by the seller would be $1000 for the first offense, $2500 for the second offense within five years and $5000 for a third or subsequent offense within five years.

The bill also bans the use of EBT benefits at an ATM located inside a liquor store, adult cabaret, casino or gambling establishment.

State Employees / New Hires – The General Assembly approved legislation to reform the state’s Tennessee Consolidated Retirement System (TCRS) pension plan for new hires beginning July 1, 2014. The proposed changes were brought to the legislature to ensure future generations of state employees, higher education employees and K-12 teachers will receive the benefits promised to them during their time as state employees. It does not affect current employees. The measure would change the current defined-benefits system for new employees hired after June 2014 to a hybrid plan that includes elements of defined-benefits and defined-contribution programs. A defined-benefit plan guarantees retirees a fixed pension benefit based on their years of service and earnings, while defined-contribution plans do not have guaranteed payment levels but rather specified contribution levels by the employer.

Cutting the Size of Government — Legislation aimed at cutting the size of Tennessee government has been approved on final consideration to repeal unnecessary laws. The bill focuses on making recommendations to the legislature in areas of government waste, duplication, and out-of-date regulations that should be removed from the law books. The Office of the Repealer will be housed in the General Assembly’s Legal Services Division. Three bills were passed this year that already eliminate dozens of unnecessary Tennessee laws have been approved by the Tennessee General Assembly relating to transportation, finance, and commerce. Specifically, the bills delete references to programs that have since been abolished by the federal government, reports that were assigned to come from entities that no longer exist, and several instances of repetitive language. Efforts under the bill would be to streamline state law and make it easier to interpret for all interested parties.

Senate Bill 244, Senate Bill 1005, Senate Bill 595, Senate Bills 521, 511 and 1290

10.) Handguns

Safe Commute — The Governor has signed legislation that protects the Second Amendment rights of legal gun permit holders while traveling to and from their workplace. Action on the bill this year comes after Lt. Governor Ron Ramsey worked with property rights advocates and Second Amendment rights groups last fall to forge a compromise on the matter.

The legislation clarifies that an employer may require employees who have a permit to keep their weapon out-of-sight and securely locked in their automobile while their vehicle is in their employer’s parking lot. The bill allows business owners to continue to post prohibitions against firearms on their property, but gun permit holders who keep their firearms in their locked car would be exempt. Additionally, the bill grants property owners broad premise liability against damage or injury caused by firearms properly stored.

Approximately 5% of Tennesseans have a handgun permit.

Handgun Permit Holders / Publication of Names — Legislation to prevent the publication of a list of handgun carry permit holders in the news media or on the Internet has received final passage in the General Assembly. The measure allows for the media to inquire and the Safety Department to confirm whether someone who had run afoul of the law was a permit holder but only upon providing a legal document or other record that “indicates that the person is not eligible to possess a handgun carry permit.” The bill also provides for exceptions in cases where law enforcement may have to visit a home or when a court order allows viewing.

The bill protects both the handgun permit carriers by preventing criminals looking for guns to steal from having a mapped list of permit holders with names and addresses. At the same time, it protects citizens who do not have a permit by preventing criminals from identifying specific homes that perhaps that home has no protection.

Handgun Permits / Mental Health — Legislation has passed the General Assembly this year to help ensure that those who suffer mental illness do not receive a handgun permit and harm themselves or others. Currently, mental health professionals are already required to provide notification about a potentially dangerous patient, but they have the option of telling the person’s family, those against whom threats are made or law enforcement officers. This bill requires mental health professionals to report to law enforcement officers patients they deem could seriously harm or kill “reasonably identifiable victims.” It also requires court clerks to notify the state within three days about involuntary commitments instead of once every three months. The intent is to focus on the mentally ill while leaving the law-abiding gun owner free to exercise their Second Amendment rights.

Senate Bill 142, Senate Bill 108, Senate Bill 789