(NASHVILLE, Tenn.), February 10, 2022 – The Senate Education Committee this week passed a bill requiring all school employees to be trained to detect and prevent human trafficking of children.

Currently, only teachers are required to take the training. Senate Bill 1670 seeks to expand that requirement to all other personnel that aren’t contractors, including bus drivers, janitors or cafeteria workers, every three years.

“A lot of times these students who’ve been abused — a school nurse may see it or maybe a janitor may see what’s going on first,” said Sen. Todd Gardenhire (R-Chattanooga), the bill’s sponsor. “This bill ensures they know what to do if that happens.”

The training course would be online and last roughly 45 minutes to an hour, Gardenhire said.

Commerce and Labor Committee passes “New Markets Development Act”

The Commerce and Labor Committee unanimously approved legislation that would create a tax credit program to encourage economic growth in rural and low-income areas. The bill will be reviewed by the Senate Finance, Ways and Means Committee next.

The program created by the “New Markets Development Act” would fund small businesses located in Tennessee through insurance premium tax credits. Variations of the program have been implemented in 14 other states and on the federal level.

“We would see the benefits across the whole state potentially pretty quickly,” said Sen. John Stevens (R-Huntingdon). “In my district and others, we desperately need access to capital, which is difficult to get for businesses that want to expand. This legislation will help make that happen.”

Through the program, investment groups would receive tax breaks if they offer loans or invest in businesses or developments in low-income or rural areas. The program could raise and invest up to $100 million into Tennessee small businesses.

“This is an investment strategy that has been useful at the federal level and there have been a number of states that have been doing this for at least a decade with huge success,” said Sen. Bo Watson (R-Hixson), a co-sponsor of the bill. “The operational theory here is this will increase investment in Tennessee into areas that investors don’t always look to. I think it’s a good step forward.

Ranked choice voting ban advances to Senate

Legislation banning ranked choice or instant runoff voting in state and local elections was passed by the Senate State and Local Government Committee this week.

Ranked choice voting is a voting method in which voters rank candidates by preference. The candidate with a majority of first-preference votes wins. If no candidate wins a majority of first-preference votes, then the candidate with the lowest preference is eliminated and their votes are redistributed among the remaining candidates.

“Instant runoff voting has been proven to increase voter confusion, decrease voter turnout and confidence, and produce results that leave no candidate with a majority of total votes,” said Sen. Brian Kelsey (R-Germantown), the bill’s sponsor.

Senate Bill 1820 will next be considered by the full Senate.

Education Committee approves equal pay for Board of Education members

A bill that would make compensation for school board members equal to that of county and municipal legislators was approved by the Senate Education Committee this week.

According to Sen. Todd Gardenhire, who sponsored Senate Bill 1679, a majority of school boards members in Tennessee are paid less than the members of the local governing bodies, with about 80% of school board members paid below $3,000 a year to serve.

“Most school board members work the same amount of time and sometimes longer hours than their counterparts on the local governing bodies,” said Gardenhire. “They ought to be compensated the same amount.”

Gardenhire noted in Hamilton County, commissioners receive around $25,394 per year plus benefits while school board members are paid just $3,265 per year.

“I’ve never heard a person that’s running for the school board say gosh I’m going to increase my pay by being on the school board,” Gardenhire said. “But after one, two or three terms they say I just can’t afford to do this.”

Gov. Lee Appoints Butch Eley as Deputy Governor

This week, Tennessee Governor Bill Lee announced the appointment of Butch Eley as Deputy to the Governor. Eley will continue serving in his current role as Commissioner for the Tennessee Department of Finance and Administration (F&A) and as a member of Gov. Lee’s cabinet. The position of Deputy Governor was previously held by Lang Wiseman who has returned to the private sector.

“For the past three years, Butch has played a pivotal role in our strong economic recovery and in maintaining Tennessee’s reputation for conservative fiscal management,” said Gov. Lee. “His extensive public and private sector experience will continue to add enormous value as we invest strategically in infrastructure, education and other priorities to serve Tennesseans and support our state’s growth.”

Eley previously served as Chief Operating Officer in the Governor’s office from January 2019 to May 2020, where he led the state’s first four-year strategic planning process. In his subsequent appointment as Commissioner of Finance and Administration, he has developed multiple state budgets and works closely with legislative leaders of the Financial Stimulus Accountability Group (FSAG) to oversee and allocate the influx of federal relief funds provided to Tennessee over the past two years.

Prior to joining the Lee Administration, Eley was a founder and CEO of Infrastructure Corporation of America (ICA). Headquartered in Nashville, ICA was one of the nation’s leading infrastructure asset maintenance management companies with comprehensive asset management contracts throughout the country.

Eley earned his bachelor’s degree and MBA at Belmont University. He and his wife Ginger reside in Nashville.

Gov. Lee Issues Statement on CMS Vaccine Mandate Lawsuit

Tennessee Gov. Bill Lee late last week issued the following statement regarding the lawsuit filed in the United States District Court for the Western District of Louisiana by Tennessee and 15 other states to vacate the CMS vaccine mandate:

“We are renewing a challenge to the CMS vaccine mandate in court so Tennessee health care workers have the right to private health care decisions. While this mandate represents the worst of federal overreach, it also threatens our ability to staff facilities and provide care for the elderly, disabled and other high-priority populations.”

Tennessee Forestry Commission testifies before committee

The Tennessee Forestry Commission testified before the Senate Energy, Agriculture and Natural Resources Committee concerning their annual report.

Summarizing the past year, TN Forestry Commission Chair Johnny Heard said the commission identified the need for more engagement with the USDA Farm Service agency, expressed concern about the retention and recruitment of qualified personnel, endorsed the 2020 Forest Action Plan, and encouraged an increase in timber sales from the state forest.

Heard said the commission suppressed 709 wildfires over 6,910 acres; safely conducted 232 prescribed fires across 12,100 acres; and deployed 215 personnel across 13 states to help them deal with wildfires and natural disasters, resulting in $2.6 million in revenue.

The commission evaluated 38 logging operations with water quality complaints and found 22 with issues that affected water quality. It provided technical assistance to bring them into compliance with the Water Quality Control Act.

The commission completed 24 timber sales of a combined 10.7 million board feet, generating nearly $3.5 million in revenue.

In Brief

Internships — The Senate this week unanimously passed Senate Bill 520, which expands internship opportunities for high school students starting in the 2022-2023 school year.

High school students are currently allowed to enroll in college courses at community as well as Tennessee College of Applied Technology colleges, some of which offer or require internships. High school students are typically under the age covered by workers compensation insurance without additional expenses so only large companies have been willing to absorb the risk, according to Sen. Richard Briggs (R-Knoxville), who sponsored the bill.

“What this bill does is it allows the medium and small-sized companies to be able to hire interns without unreasonable workers compensation insurance risks,” said Sen. Briggs.

Redistricting — Gov. Lee on Monday signed into law new Senate, House and congressional redistricting maps. For more information about the maps visit here.

Travel Insurance: Passed by the Commerce and Labor Committee this week, Senate Bill 1868 clarifies existing law that regulates travel insurance, which protects against risk associated with travel. Adopted by 18 other states, the bill also includes provisions offering savings to the consumer, and prohibits the automatic addition of travel insurance to a booking.

Cemetery Trust: Senate Bill 1934 allows cemeteries with small trust funds to share banking and trustee costs with other cemetery trust funds, and also provide cemeteries with a more stable way to determine the amount allowed for dispersing earnings for maintenance expenses.

“Both reforms will help provide financial stability for smaller cemeteries throughout Tennessee,” said Sen. Ed Jackson (R-Jackson). The Commerce and Labor Committee voted in favor of the bill this week.

Law enforcement: Per a bill passed in 2014, peace officers who die in the line of duty or suffer a career-ending injury are presented the Three Stars of Tennessee Award in a ceremony on or around Sept. 11 each year. Senate Bill 1751, which cleared the Judiciary Committee this week, allows a representative of the agency at which the peace officer served to receive the award on his or her behalf if there are no available next of kin.

Receiver of Estate: Senate Bill 1680 authorizes the court to appoint a public receiver to make a recommendation on the need for a temporary or permanent receiver over an estate. A receiver is an appointed custodian of a person or entity’s assets.

In explaining the intent of the bill, Sen. Todd Gardenhire described a situation in which a business owner passes away without a succession plan, and that business falls apart and loses significant value by the time the estate reaches the courts.

“If a judge can appoint a receiver on the front-end of the estate it might salvage that most significant asset that doles off income to beneficiaries,” Gardenhire said. The bill was passed by the Judiciary Committee.

Child abuse: Advanced by the Judiciary Committee this week, Senate Bill 1793 would require a court to revoke bail for a defendant who is convicted of continuous sexual abuse of a child. “Continuous” is defined roughly as three or more acts of abuse within 90 days.

###

(NASHVILLE, Tenn.), February 3, 2022 – Tennessee Governor Bill Lee on Monday delivered his fourth State of the State address and presented budget and legislative priorities to a joint session of the General Assembly.

“Tennessee stands as a beacon to the rest of the country for how we can change lives when we control the size of government, prioritize efficiency, and make smart and responsible investments,” Lee said. “I am proud to propose a budget and America at Its Best policies that reinforce freedom, innovation, exceptionalism and optimism.”

The proposed $52.6 billion budget includes strategic investments in education, transportation infrastructure, law enforcement, rural communities, and more.

A detailed breakdown of the budget proposal can be found here. The State of the State address can be found here.

The proposed budget was the focus of a Senate Finance, Ways and Means Committee meeting Tuesday.

“What we’re proposing is a very fiscally conservative budget. It is also one that ensures that we do not get ahead of ourselves as we look forward into the future,” Department of Finance and Administration Commissioner Butch Eley said during the meeting. “This is a balanced budget, it’s a budget with no debt, it’s a budget that prioritizes one-time expenses to mitigate uncertainties. It targets programs that work and are evidence-based, and most of all it invests in Tennessee.”

Eley said Tennessee is among the states with the lowest debt in the country, and noted the Volunteer State is ranked number one in the nation for long-term fiscal responsibility by U.S. News and World Report.

Sen. Kerry Roberts, State Rep. Michael G. Curcio and State Rep. Mary Littleton introduce Joe Clyde Daniels Act at press conference

State Sen. Kerry Roberts, (R-Springfield), State Rep. Michael G. Curcio, (R–Dickson) and State Rep. Mary Littleton, (R-Dickson) this week at a press conference announced SB 2223, which makes it more difficult for a convicted murderer to be granted parole if they do not reveal the location of their victim’s remains.

The Joe Clyde Daniels Act requires the board of parole to consider “the extent to which the offender obstructed or continues to obstruct the ability of law enforcement to recover the remains of the victim” when deciding cases involving an offender convicted of homicide.

“The murder of Joe Clyde Daniels is an unspeakable tragedy that has devastated our entire community and state,” Curcio said. “Victims deserve justice as well as a proper burial and this legislation will help ensure that is possible.”

The bill was prompted by the disappearance of 5-year-old Joe Clyde Daniels from his home in Dickson on April 4, 2018. His father, Joseph Daniels, was convicted of murder in June. However, the child’s remains have never been found.

“It is absolutely heartbreaking that this precious child has not gotten the proper burial he deserves,” Littleton said. “I hope that the Joe Clyde Daniels Act will help other families across our state find the closure they so desperately need.”

A trial for Krystal Daniels, the boy’s mother, has been postponed until March. She is charged with aggravated child abuse and neglect.

If approved and signed into law, the Joe Clyde Daniels Act would take effect July 1.

For more information visit here.

1,241 Senate bills filed at Feb. 3 deadline

Senate members worked hard this week to finalize their legislative proposals before the Feb. 3 bill deadline. In all, 1,241 Senate bills were filed and received by the Senate Clerk’s Office since the conclusion of the legislative session last year. Senate committees continue to meet as bills were being introduced and referred to their respective committees.

Tennessee’s economic output is back to pre-pandemic levels, while the state leads the nation in economic recovery

Tennessee’s economic output is back to pre-pandemic levels in terms of goods and services and is among the top states leading the nation in economic recovery, according to Marianne Wanamaker, executive director of the Howard Baker Center for Public Policy. Wanamaker, who spoke to the Senate Commerce and Labor Committee this week, is also an associate professor of economics at the University of Tennessee and served as chief domestic economist and senior labor economist at the White House Council of Economic Advisors during the Trump administration.

“From an output perspective, the economy is operating as though COVID never happened,” said Wanamaker. “This is true in the State of Tennessee where GDP in the third quarter of 2021 was 3% larger than in the fourth quarter of 2019. The U.S. economy was 1.4% larger in the third quarter of 2021 than at the end of 2019.”

“What I am not sure is appreciated is just how uncommon the U.S. experience is in international perspective,” she continued. “There is no major developed country that has come out of the pandemic with the strength of output we are experiencing in the United States — not Korea, not Japan, not any country in Europe and probably not China, although it is difficult to know for sure.”

She attributes the strength of the recovery in part to efforts made by U.S. states in facilitating the unemployment insurance programs, a critical piece of the Trump administration’s national COVID relief strategy. “Given what we know today, it is hard to conclude anything other than that the U.S. policy apparatus succeeded in stabilizing income, output and employment to an extent not any other country was able to accomplish.”

On labor shortages, however, the pandemic worsened workforce participation, which was already struggling due to aging workers and a slowed rate of population growth. “The labor shortage and lack of population growth are going to be a challenge with 100% certainty,” she said.

Tennessee is 1.4% short of February 2020 and 3% short of where the state would have been had the pandemic never happened, for a shortage of 95,000 jobs. This means the level of output was generated beyond what was produced pre-pandemic with a labor force that is substantially smaller. Wanamaker attributes this to full time workers who spent more hours on the job.

“So, hours worked are up which may explain why working Americans expressed feeling burned out and exhausted,” she said. “American labor supply took a beating during COVID and is still struggling to recover.”

The shift to retirement began immediately upon the outbreak of the pandemic, accounting for about half of the country’s labor force shortage in 2020. Wanamaker feels it is unlikely that the 2.1 million workers who left their jobs will return to the workplace and that the participation rate will return to pre-pandemic levels.

In Tennessee there is one-half of an unemployed person for every job opening in Tennessee, one of the lowest rates in the country. This can be compared to California where there is one unemployed person for every job opening.

“It is not that labor supply is greater in California that it is here,” she said. “It’s that labor demand in the South is really much higher than it is in other parts of the country, in part due to a full COVID recovery here in the South.”

In looking towards Tennessee’s economic future, Wanamaker said prospects for future economic growth are dependent on population growth. Tennessee already has a significant jump on this challenge. The state leads the nation in attracting working-age persons to locate in Tennessee due to many amenities offered here that other states cannot currently pursue.

The General Assembly will continue to focus on providing an environment that will boost Tennessee’s economy in the 2022 legislative session. These efforts are aided by the state’s low tax and light regulatory status. Tennessee consistently ranks in the top three states in the U.S. for best business climate. The Volunteer State has also ranked first for site readiness programs and energy availability and has seen its biggest surge ever in new business launchings. In addition, Tennessee was recently ranked the second fastest growing state in the nation for foreign direct investment.

Tennessee Supreme Court nominee advances

Tennessee Supreme Court nominee Sarah Campbell received a unanimous recommendation from the Senate Judiciary Committee this week. The full Senate will cast a vote next Thursday.

A graduate of Duke Law School, Campbell was a law clerk for Supreme Court Justice Samuel Alito and Judge William Pryor Jr. of the Eleventh Circuit in Birmingham before joining the Tennessee Attorney General’s office in 2015. She currently serves in that office as Associate Solicitor General and Special Assistant to the Attorney General.

“The role of a judge in my view is to decide cases based on neutral objective principles that don’t lend themselves to any one particular outcome or another,” Campbell said during this week’s confirmation hearing. “My personal views on whether a law is good or bad will not matter if I’m confirmed to this position.”

Campbell said as judge she would adhere to the text of the law, but also consider context.

“My job as judge will be to interpret the laws that were enacted by the legislature. That will be where my inquiry begins and ends,” she said. “To determine the meaning of those words I will consider things like the context of the statutes so it’s not so restricted that you only look at the specific word or words that you’re being tasked with interpreting. You also look to the surrounding words in the statute and use that context to help determine what the meaning is.”

Campbell was also asked if she believes the U.S. and Tennessee constitutions are fixed principles or if they should be modified to fit modern issues.

“I believe that both The U.S. Constitution and Tennessee constitution should be interpreted and applied based on the plain meaning of those documents when they were enacted — how the public would have understood those documents at that time,” she said.

Sen. Kelsey, Rep. Gillespie announce bill allowing police to chase criminals

Senator Brian Kelsey (R-Germantown) and Rep. John Gillespie (R-Memphis) this week filed Senate Bill 2451 protecting police officers from liability for injuries to a third party caused during a police pursuit so long as the police officers’ conduct is not grossly negligent.

“This legislation will make our state a safer place to live. It will allow our police officers to do their jobs by protecting them from unjust lawsuits,” said Sen. Kelsey. “The current law discourages police officers from pursuing dangerous criminals. As we continue to experience record-breaking crime rates in Memphis, our officers should be able to protect our citizens as long as they are acting reasonably.”

“This legislation only protects law enforcement officers who follow the proper policies and procedures while pursuing a fleeing suspect,” said Rep. Gillespie. “It is important that officers and their departments still be held accountable for any third-party injuries caused by grossly negligent conduct.”

Corrections Commissioner updates lawmakers about efforts to improve public safety

Tennessee Department of Correction (TDOC) Interim Commissioner Lisa Helton spoke to the Senate State and Local Government Committee this week, providing a wide range of important information regarding their efforts to improve outcomes for prisoners and enhance public safety for Tennesseans. Tennessee has 10 state-operated and four privately-operated prisons which house 19,287 inmates. Another 4,875 state inmates are serving sentences in local jails.

In addition, there are 75,030 supervised offenders who are on probation or parole in the state’s 44 Community Supervision offices in Tennessee.

In 2021, the General Assembly passed major criminal justice reform legislation to reduce Tennessee’s high recidivism rate. TDOC has been working diligently to put those reforms into action. The department is “reentry focused” with a variety of education and workforce development programs to help offenders get on the right path after prison.

After doing an initial diagnostic assessment, TDOC officials develop a case management plan that includes treatment programs, education, vocational training, and employment. The vocational program includes a partnership with the Tennessee Colleges of Applied Technology (TCAT) and other workforce development partners to give inmates the skills they need to become productive citizens upon release to their communities.

Day Reporting Centers — About 283 of offenders on probation are in the state’s Day Reporting Centers (DRC), a supervised program that provides nonviolent offenders with substance use needs an alternative to incarceration. The successful DRC program provides an intensive nine to 12-month outpatient treatment program coupled with supervision. There are currently six centers in Tennessee located in Memphis, Jackson, Nashville, Murfreesboro, Knoxville, and Johnson City. Plans are in the works for additional centers in Columbia and Chattanooga.

The average daily cost of housing a prisoner is $74.51, while the same upkeep in a DRC is $47.74.  The fiscally responsible DRC program is based on best correctional practices and have been proven to enhance public safety. Since summer 2017, 250 participants have graduated across the state with another 283 currently enrolled in the program.

Correction Officers — Commissioner Helton also talked to committee members about efforts to recruit and retain correction officers at state prisons amid significant staffing challenges.  November 2021 hit a high mark of 47.5 percent in the number of officer vacancies in the state’s correction facilities. In December, Governor Lee announced a competitive 37% salary increase for new TDOC officers and a minimum of 15% pay increase for current employees. Since that time, the department fully hired more than 10 officers, with 110 others currently in the hiring process. Commissioner Helton said she is optimistic about the impact of the salary increases on turnover and recruitment.

“We have seen a 12% reduction in the statewide number of vacancies with five facilities exceeding a 16% reduction,” she said.

TDOC continues to work with the Governor’s office and other state agencies on recruitment and retention strategies for correctional officers. The budget proposal presented by Governor Lee on Monday continues the commitment to those salary increases. Committee members will continue to monitor the success of these efforts and work with state correction officials to help ensure Tennessee prisons are well staffed and safe.

Right On Crime — Finally, State and Local Government Committee members heard a presentation from Julie Warren from Right on Crime, a national campaign of the Texas Public Policy Foundation. Warren applauded the passage of Tennessee’s 2021 criminal justice legislation to improve inmate outcomes through evidenced-based sentencing alternative programs. She also talked about the tremendous success of Texas’ criminal justice efforts, which originated with former Governor Rick Perry. The Texas reform efforts have resulted in a significant decrease in inmate recidivism.

“I have looked several times at the Texas plan,” said State and Local Government Committee Chairman Richard Briggs (R-Knoxville). “It has been pretty incredible. Tennessee has as much potential to reduce recidivism, improve public safety, and reduce budgets in the Department of Corrections if we can implement something similar to the Texas plan. It really worked in a conservative state.”

In Brief

Standardized tests — The Senate Education Committee this week voted in favor of a bill that requires public universities to receive standardized test scores from incoming freshmen before they can enroll starting with the 2023-2024 academic year. In Tennessee, standardized testing requirements are currently the purview of the universities.

Sponsored by Sen. Brian Kelsey (R-Germantown), SB 1815 would require incoming freshman to submit a “nationally-recognized college admissions test” score, but would not require universities to use that score as part of its admissions process.

Veterans organizations — The Senate this week passed SB 1660, which extends protections that currently apply to various types of nonprofit organizations to nonprofit veterans organizations, technically classified as a 501(c)(19). Under this bill, the directors, trustees, or members of the governing body of 501(c)(19) nonprofit organizations will become immune from suit arising from the conduct of the affairs of the organization as long as that conduct does not constitute gross negligence.

Divorce — A bill authorizing a court to allow mediation between parties in a divorce proceeding to occur by video conference when appropriate was approved by the Senate on Monday.

Ear wax — Passed by the Senate this week, SB 665 requires certain coursework in order to administer ear-wax removal services to ensure the process is done safely.

###

The Tennessee State Senate this week unanimously passed legislation that ends the practice of surprise or unexpected medical billing in Tennessee, also called balanced billing.

Balanced billing occurs when providers bill a patient for the difference between the amount they charge and the amount the patient’s insurance covers. The amount that insurers pay providers is almost always less than the providers’ “retail price.” Some providers will bill the patient for the difference or balance, thus it’s called balanced billing.

Sponsored by Sen. Bo Watson (R-Hixson), Senate Bill 1 ensures patients are not held responsible for balanced bills. Consumers will no longer get balanced bills when they seek emergency care or when they receive non-emergency care in an in-network hospital, but are unknowingly treated by an out-of-network physician or laboratory.

“This is a patient protection piece of legislation,” said Sen. Watson. “The patient should not be held responsible for bills that they’re not aware of.”

Under the bill, patients will pay only the deductibles and co-payment amounts that they would pay under the in-network terms of their insurance plans. The bill also creates an independent dispute resolution process between insurers and providers.

“I know that one of the problems Tennesseans worry about the most, especially from a patient perspective, is the problem of being able to afford an unexpected medical bill,” said Sen. Rusty Crowe (R-Johnson City), who co-sponsored the bill. “Sen. Watson and myself have been working on this legislation for the past six years. I am very proud of this piece of legislation as it fundamentally protects patients from getting a bill for which they didn’t know they’d be responsible.”

The bill mirrors the federal “No Surprises Act,” which took effect earlier this year.

Senate Finance Committee hears report regarding infrastructure needs and requests

The Senate Finance, Ways and Means Committee received a report from the Tennessee Advisory Commission on Intergovernmental Relations (TACIR) on Tuesday regarding the state’s infrastructure needs and requests. The General Assembly passed legislation in 1996 requiring TACIR to compile and maintain an inventory of infrastructure requests and present them to lawmakers each year. The inventory, by law, is designed to support the development by state and local officials of goals, strategies and programs that could improve the quality of life for Tennesseans and enhance economic development statewide.

TACIR staff work with Tennessee’s nine developmental districts to gather information from state and local officials of both public infrastructure needs and other projects that reflect the hopes and desires of communities. This year’s report for 2020-2025 reflects about $61.9 billion in projects that fall into both of these categories. That’s an increase of $3.4 billion from the report delivered by TACIR last year.

“The State of Tennessee gets really high reviews all across the country due to the fact that we are one of the few states that actually takes time to do an inventory like this,” said Senate Finance, Ways and Means Committee Chairman Bo Watson (R-Hixson). “Most states have no idea of what their capital needs may be infrastructure-wise.”

Transportation, utilities, and education account for the 89 percent of the projected $3.4 billion increase in conceptual projects which were in the inventory. Transportation and utilities are always the largest categories of infrastructure inventoried and account for $2 billion in this report. The education inventory increased by $987 million, mainly attributable to post-secondary education needs and reflects the building or renovation requests for K-12 schools. The next largest increase was in the health, safety, and welfare category at $575 million. TACIR officials explained the bulk of these requests were for law enforcement and fire protection. In addition, TACIR has projected an increase of $7 million for recreational projects.

TACIR’s staff is reviewing the currently available federal funding for public infrastructure to see how it might meet some of these needs. They estimate the American Rescue Plan (ARP) will provide Tennessee state government with $3.9 billion and Tennessee local governments with $2.3 billion; while they project the Infrastructure Investment and Jobs Act (IIJA) could provide $8 billion for infrastructure projects. In August 2021, Tennessee’s Financial Stimulus Accountability Group dedicated $1.35 billion of the state’s fiscal ARP recovery funds for water, wastewater and stormwater infrastructure. The IIJA funds are still being reviewed but can be used for roads, bridges, broadband and other specific infrastructure needs.

Committee approves report on refugee issues

The Joint Study Committee on Refugee Issues on Thursday approved a report that includes a series of recommendations related to refugee issues in Tennessee that could become the basis for future legislation.

The committee was formed by Lt. Gov. Randy McNally (R-Oak Ridge) and House Speaker Cameron Sexton (R-Crossville) in May of 2021 to investigate the federal government’s immigration program within Tennessee.

The committee heard testimony regarding immigration in Tennessee during four meetings held between June and November of that year. Those meetings culminated in the report, which includes a summary of committee activity as well as a series of policy recommendations. The report will be published in the coming days.

Gov. Lee issues statement regarding public education funding review

Gov. Bill Lee released the following statement on Jan. 26 regarding the full review of Tennessee public education funding:

“Since last fall, thousands of Tennesseans have engaged with us to share how public school funding can better serve our students, teachers and families. We have completed 16 townhalls and meetings across the state hosted by the Department of Education and Tennessee General Assembly, provided more than 1,000 opportunities for public comment, and this week, the work of 18 subcommittees will come to a close. I commend the work of these dedicated Tennesseans and look forward to reviewing their recommendations. I encourage Tennesseans to join me in reviewing their work as we navigate what the future of K-12 public school funding can look like in Tennessee.”

Details about public education funding can be viewed here.

Testimony in Senate Transportation and Safety Committee Focuses on Airport Funding Needs

The Senate Transportation and Safety Committee heard testimony this week on airport funding needs from a group of officials representing the state’s five commercial services airports. The airports have been working since 2015 to find solutions to these needs as the Transportation Equity Trust Fund has decreased significantly since then.

When comparing collections to the Tennessee Transportation Equity Trust Fund from the state’s Fiscal Year (FY) 2014 to FY 2021, collections are down 59 percent due to legislative changes and market conditions. This fund provides the Tennessee Department of Transportation’s (TDOT) Aeronautics Division grant funds that are used by 78 public-use airports for planning, development, construction, and operations throughout the state.  Metro Nashville Airport Authority CEO Doug Kreulen told legislators that the current dwindling jet fuel tax is a key factor in the decline. In addition, he said the airports are challenged by stagnate federal infrastructure funds and passenger facility charges. He said Tennessee currently ranks fifth among its eight neighbor states in airport aid programs.

The group provided several recommendations to improve airport funding, including replacing the current funding model to make Tennessee more competitive with surrounding states. Kruelen said the new model should provide recurring funds; prioritize funds based on statewide impact and tax generation; support future infrastructure requirements critical to economic, community and tourism development; and ensure existing infrastructure is maintained.

The state’s five commercial airports generate approximately $19.5 billion in economic activity in Tennessee. They provide about 131,843 jobs with a total payroll of approximately $7.3 billion.

Tennessee General Assembly Veterans Caucus

The veterans caucus during a regular meeting Jan. 26 took in a presentation on the upcoming renovation of the Military Branch of the Tennessee State Museum, previewed upcoming legislation relating to veterans, and expressed interest in continued funding for an organization that treats veterans suffering from mental illness.

Home to the Military Branch of the Tennessee State Museum, the War Memorial and Legislative Plaza buildings are set to be renovated within the next four to five years. As part of the renovation, the museum will see new and updated exhibits, oral histories of veterans, and interactive programming, said Ashley Howell, executive director of the Tennessee State Museum.

Later in the meeting, caucus members briefly summarized legislation in the works. Expect to see a bill offering a $5,000 tax credit to veterans for purchasing automobiles every five years, another bill restoring the opportunity for disabled veterans to get two license plates rather than one, a veterans tuition bill, and another one that allows for increased tax relief on home purchases by disabled persons.

Finally, the caucus heard a presentation by Centerstone Military Services, which treats veterans suffering from mental illness at no out-of-pocket cost to them. The organization specializes in providing high-quality military, culturally-competent mental health services for veterans, military families, active duty personnel and veterans from all eras throughout the state of Tennessee, said Chief Executive Officer Blas Villalobos. The organization is based in Nashville, operates a clinic in Clarksville and has an additional 248 community-based providers throughout the state.

Villalobos said 20 veterans die by suicide every day in the United States while in Tennessee, three veterans on average take their own lives every week. He noted 95% of Centerstone clients have reported no longer experiencing suicidal ideations 120 days into treatment.

Centerstone currently receives $700,000 a year from the state and is asking lawmakers to increase that appropriation to $1.5 million annually so it can expand and serve even more veterans.

“I’ve seen this operation and all I can tell you is it’s sorely needed in and around the military community,” said Sen. Bill Powers (R-Clarksville). “I’d urge everyone here to please get on board with this.”

Education Recovery and Innovation Commission make recommendations to modernize education and mitigate impact of pandemic on student learning

The Senate Education Committee heard testimony this week from officials with the Education Recovery and Innovation Commission to modernize education in Tennessee and mitigate the impact of the pandemic on student learning. In 2020, the Tennessee General Assembly formed the Commission through Public Chapter 792 to examine the short- and long-term effects of the COVID-19 pandemic on education in the state.  The group was charged with addressing learning gaps and modernizing the state’s education system from kindergarten through career.

In their second of two reports, the Commission listed a wide variety of recommendations to improve outcomes for students. The Commission has identified nine priority areas where improvements could be made to address learning losses, student well-being, postsecondary and career preparedness, and technology gaps. A menu of options are listed to support each of their recommendations.

The recommendations include policies ensuring students master literacy and numeracy skills; addressing learning remediation and acceleration needs; and strengthening, retaining, expanding, and diversifying the state’s education professionals. They also recommend equipping Tennessee schools and districts to address students’ well-being; optimizing capacity for flexible, high-quality school options; and incentivizing locally-led innovation. In addition, the Commission recommends that schools be redesigned to ensure students have access to flexible pathways to college and careers and that the state’s postsecondary systems be streamlined to facilitate lifelong learning.

Commission member, Dr. Joey Vaughn, expanded on the recommendation to support the well-being of students by calling for more nurses, school counselors and social workers.   “I can tell you that this year’s second graders are the students that are really beginning to show the gaps in their learning because of the pandemic,” he said.  “I can also say when we are looking at students who are having social emotional issues, that is across the gamut.  That is from pre-school all the way to the 19-year-old I talked to two weeks ago.”

The Commission’s report states that impacts of COVID-19 and other disruptions to schooling in the past two years extend far beyond academics, negatively impacting students’ social development, as well as their mental, emotional, and physical health. The report states: “These domains not only affect students’ academic achievement but also underlie the development of skills such as critical thinking and analysis, problem-solving, self-management, and working with people — all of which are skills increasingly prioritized by employers.”

Many of the Commission’s recommendations will be considered through legislation during the 2022 legislative session.

In Brief:

Redistricting — The Senate this week approved the House redistricting map after approving new Senate and Congressional maps last week. Drawn by the House, the new House map has an overall population range of 9.9%, and splits 30 counties: nine in West Tennessee, nine in Middle Tennessee and 12 in East Tennessee. It includes six districts with no incumbents, and maintains the current number of majority-minority districts, which is 13. Six districts in the map remain exactly as they are today.   

Registers of deeds — A bill seeking to transfer approximately $11.3 million in mortgage and transfer tax collections annually from the state to the counties was unanimously recommended for passage by the State and Local Government Committee this week. SB 1663 will next be considered by the Senate Finance, Ways, and Means Committee.

County Register of Deeds currently contain 2.4% of mortgage and transfer tax collected and this bill would increase that number to 5%.

“This bill would provide additional revenue to the counties, further supporting smaller counties who struggle to meet their budgets,” said Sen. Todd Gardenhire (R-Chattanooga), who sponsored the bill. He noted the rate was lowered to 2.4% roughly 16 years ago to address a state budget deficit.

Sen. Ken Yager (R-Kingston) said the bill is “long overdue” and will be a benefit to taxpayers.

“This will be a benefit to your local property tax payers as well,” he said. “In many counties, the county general fund was subsidizing those offices at the expense of the county property tax payers.”

Confirmation hearing — The Judiciary Committee this week held a confirmation hearing for Judge John W. Campbell for the Court of Criminal Appeals. With 40 years of criminal practice in Shelby County, Judge Campbell is currently serving as a criminal court judge to Criminal Court Division VI.

Asked which U.S, Supreme Court judges in recent history he admires most, Judge Campbell answered Justice Clarence Thomas and Justice Samuel Alito. He was also asked about his constitutional theory.

“I strongly believe in following what’s on the paper,” he said, referring to the U.S. and Tennessee constitutions. “I don’t feel like I should be going in there and substituting my interpretation. … I feel very strongly that we should follow the law as its written.”

The committee voted in favor of sending a confirmation resolution for Judge Campbell to the Senate.

Election rules — The Senate this week approved SB 515, which expands the period of time political or campaign signs can be posted to “60 days before voting begins.”

On the same topic, the State and Local Government Committee has agreed to remove a provision in a bill related to election laws because that provisions will run separately in a parallel bill. The committee amended SB 1664 so that it now simply prohibits a political party from requiring a person to pay a fee in order to run as that political party’s candidate for public office.

Previously, the bill also sought to require nonpartisan elections for chancellors, circuit court judges, criminal court judges, and judges of any other state trial court of record. That provision will run in a separate, stand-alone bill.

Veterans Organizations — Currently, the directors, trustees, or members of the governing body of various types of nonprofit organizations are immune from certain types of lawsuits in Tennessee. SB 1660, which was approved by the Senate Commerce and Labor Committee this week, extends that immunity to 510(c)(19) nonprofits, which are veterans organizations.

Firefighters — The Senate Commerce and Labor Committee this week also advanced legislation that amends the “Barry Brady Act,” which provides compensation to firefighters for certain types of cancers. SB 1569 adds testicular cancer and leukemia to the list of cancers covered under the law.

New jobs in Maury County — The composite decking, railing and cladding company Fiberon this week announced it will establish new manufacturing and distribution operations in Columbia, Tennessee, creating 310 new jobs over the next five years.

Founded in North Carolina in 1997, Fiberon is a leading U.S. manufacturer of wood-alternative decking, railing and cladding, and prides itself on serving customers with high-quality, eco-friendly products. Today, the company employs more than 600 people across the U.S. through its bicoastal manufacturing and distribution operations in New London, North Carolina and Meridian, Idaho.

In the last five years, the Tennessee Department of Economic & Community Development has supported nearly 20 economic development projects in Maury County resulting in roughly 3,700 job commitments and $4.3 billion in capital investment.

“We congratulate Fiberon on their decision to locate this new facility in Maury County and create 310 new jobs,” said Sen. Joey Hensley (R-Hohenwald). “Helping to foster job creation is a key part of our efforts, and we are proud to partner with Governor Lee, TNECD and our local officials to help further that mission.”

###

The Tennessee State Senate on Jan. 20 voted in favor of new Senate and Congressional redistricting maps for Tennessee. The votes followed a lengthy and transparent process of gathering and considering input from stakeholders throughout the state.

The new Senate map balances the federal mandate of “one person, one vote” with the state constitutional mandate not to split counties. In the new Senate map, there are just nine county splits, and a historically low deviation among districts of 6.1%. That’s lower than the 7.7% deviation in the alternative map presented in committee by the Democratic Caucus. No incumbents are paired together, and current district boundaries were disturbed as little as possible.

The new Senate map presents opportunity for minority representation in the State Senate and is superior in that regard to the map presented by the Democratic Caucus. Ours includes four districts with voting age populations that are majority African-American: the 19^th, 29^th, 30^th and 33^rd districts. That’s compared to just three majority African-American districts in the map presented by the Democratic Caucus.

“This map redrawing the state Senate districts for Tennessee meets our constitutional obligation to ensure fair and equal representation for all Tennesseans,” said Senate Majority Leader Jack Johnson (R-Franklin).

The new Congressional map has zero deviation among districts as prescribed in federal case law; all districts contain exactly 767,871 people, with the exception of the 4^th District, which has 767,872 people. The map splits just 10 counties among the nine districts and it honors the three Grand Divisions of Tennessee: The 1^st, 2^nd, and 3^rd districts are wholly within East Tennessee, the 8^th and ninth districts are wholly within West Tennessee, and growing Middle Tennessee gets four districts.

Population increases in and around Davidson County have made splitting the county a logical move to manage growth. There is also precedence for doing so. The last two Democrat-drawn maps in 2002 and 1992 split Davidson County in two. In the 1990s, Congressman Bart Gordon represented a portion of Davidson County, and in the 2000s, Congressman Blackburn represented a portion of the county. Democrats have also split both Shelby County and Knox County three ways at various points in history.

“This map is legal, it is logical, and it is fair,” said Sen. Johnson. “It recognizes the regional differences among our three Grand Divisions, and it will give Tennesseans a strong voice in Washington.”

Find the maps here. The House redistricting map will be considered next week.

Gov. Lee to Deliver Fourth State of the State Address on January 31

Tennessee Gov. Bill Lee is set to deliver his fourth State of the State address to the General Assembly and fellow Tennesseans on Monday, January 31 at 6 p.m. CT. The joint session will take place in the House Chamber of the Tennessee State Capitol.

“I look forward to sharing my vision for Tennessee, including my budget and legislative priorities for the year,” said Gov. Lee. “Tennessee shows the rest of the country that America hasn’t lost her way, and with the support of the General Assembly, we’ll continue to ensure Tennessee is a national leader for opportunity and freedom.”

Tennessee is in the best financial condition in recent history, having seen $1.2 billion in excess revenue from the 2020-2021 fiscal year, as well as $1.112 billion in revenue over budgeted estimates in the first four months of the 2021-2022 fiscal year.

Tennessee has a proud tradition of being a fiscally conservative and well managed state with the lowest possible tax burden to residents. The AAA-rated Volunteer State is among the five least indebted states in the nation per capita, ranks third for best-funded pension plans and is one of only five states without road debt. The high ranking is also boosted by the state’s low unemployment, rising educational achievement, and robust job growth.

The address can be found on Gov. Lee’s Facebook and YouTube channels and will be aired statewide.

Press conference on the Colonel Thomas G. Bowden Memorial Act

Sen. Shane Reeves (R-Murfreesboro) and Rep. Ryan Williams (R-Cookeville) held a news conference this week about SB 1749/HB 1686, the Colonel Thomas G. Bowden Memorial Act. The bill seeks to create a three-year pilot program called the Alzheimer’s and Dementia Respite Care Program, which would provide respite care services for families caring for a loved one with Alzheimer’s disease or dementia, as well as those living with Alzheimer’s disease.

“I’m honored to carry this important piece of legislation to support those with Alzheimer’s and their caregivers,” said Sen. Reeves. “We’re going to get this passed.”

Reeves noted the following statistics:

• Tennessee has the fourth highest Alzheimer’s death rate in the United States.
• More than 120,000 Tennesseans are currently living with Alzheimer’s today.
• More than 375,000 Tennesseans are providing unpaid care for a loved one with Alzheimer’s.
• Currently the cost of Alzheimer’s and dementia care in Tennessee is about $1.1 billion.

The bill is named in memoriam of Retired Colonel Thomas G. Bowden, a Tullahoma native who dedicated 26 years of service to the United States Army and received the Distinguished Service Medal, among other awards. Colonel Bowden lost his life to Alzheimer’s at age 68. This act serves as testament to Colonel Bowden’s life as well as a tribute to the loving care provided by his wife of 46 years, Barbara Bowden.

Barbara Bowden; Dawn Bunn, executive director of the Alzheimer’s Association; and Rachel Blackhust, director of public policy and advocacy at Alzheimer’s Association also spoke at the press conference.

State’s unemployment hit pre-pandemic low — Tennessee’s unemployment rate is back to the pre-pandemic level of 4.0 percent according to Department of Labor and Workforce Development Commissioner Jeff McCord who appeared before the Senate Commerce and Labor Committee this week. He said the rate could dip even lower in the future, reaching the 3 percent range. This is the lowest unemployment has been since March 2020, which was the last month before COVID-19 business closures impacted Tennessee’s economy. The rate, which fares better than the national average of 4.2 percent, is among the lowest in the Southeast.

McCord said that with unemployment rates back to record low levels, Tennessee needs to focus on the state’s workforce labor percentage to address the supply and demand issues we face. While Tennessee has the highest rate in the Southeast at over 60 percent, it is still too low to meet labor demands. “If we are going to solve the supply/demand issue that we have, we are going to have more supply,” McCord said regarding workforce needs. “One of the ways you turn that around is that you introduce work at an early age and the work-based learning programs in education and what they are doing to introduce 16 and 17 year-olds to work while we have them is part of an overall strategy to help with that.”

As a result of Tennessee’s falling unemployment, McCord said the state’s Unemployment Trust Fund is now taking in more money than the state pays out in unemployment benefits. Reaching a level of over $1 billion, the trust fund is solvent. Keeping the Unemployment Trust Fund on solid financial ground, without raising taxes, will continue to be a priority for the General Assembly.

Tennessee Waterways / Barges — Tennessee’s waterways are underutilized according to Ingram Barge Company official, Andrew Brown, who spoke to lawmakers about the importance of the barge industry to the state’s economy. Brown said that in 2018, approximately 30.8 million tons of freight, valued at $5.2 billion, moved on Tennessee’s inland waterways.

Tennessee is home to over 20,600 domestic maritime jobs, making the state number eighth in the nation despite being inland. Those jobs represent over $1.2 billion in direct worker income and over $4.9 billion in economic impact annually within the state. In addition, the annual shipyard economic impact in Tennessee is over $400 million per year.

Brown supports improving the lock and dam infrastructure in Tennessee to enhance utilization of barge traffic on the state’s waterways. With these improvements and a modest increase in investment, he believes the amount of cargo moved on the state’s waterways could be doubled in the next five to ten years.

Brown is also calling for state-level support of the U.S. Merchant Marine Act of 1920, also known as the Jones Act, by acknowledging its importance to Tennesseans through a resolution from the State of Tennessee. The federal act requires that vessels carrying cargo between locations in the United States be owned by American companies, crewed by American mariners, and built in American shipyards. “You can see the national security implications of this law,” he said.

Brown said the Chinese are building ocean-going vessels at an unprecedent rate with the goal of being the dominant player in water-borne international commerce. He said without the Jones Act, the Chinese could have similar aspirations for the inland market in the U.S.

“In times of need we need U.S. ships and to have U.S. ships we need U.S. shipyards. The Jones Act makes all that possible.”

Sen. Janice Bowling (R-Tullahoma) is drafting a resolution in support of the Jones Act and acknowledging its importance to national security and the economic well-being of Tennessee.

Electric Aircraft — Tennessee should ride the wave of electric vehicles with a new generation of electric aircraft according to Whisper Aero CEO Mark Moore who testified before the Senate Transportation and Safety Committee this week. Whisper Aero is developing a nine-passenger electric aircraft which Moore expects to be flying within five years. Moore said new technologies help these electric aircraft be more energy efficient, faster and quieter. The vehicles will go up to 300 miles per hour for a 300-mile range at a $0.50 per seat mile cost.

“What we are especially excited about is that we are part of a wave that has not been seen since the Wright brothers in terms of how quickly and how encompassing the aviation industry is changing,” Moore said. “There is an opportunity not only to create great jobs, like engineering jobs and manufacturing jobs to build these vehicles, but to leverage the incredible opportunity that these new vehicles offer,” he continued.

In order to capitalize on electric aviation, Moore said Tennessee should leverage its 77 existing small airports into a statewide aviation network.

Moore also spoke about how the new aircraft could connect larger cities to the smaller, more rural areas of the state to stimulate their economies and help provide more accessible transportation.  He said there is more than $4 billion going into the building of electric aircraft today by both large aerospace companies and automotive companies like Ford, General Motors, Hyundai.

Truck Driver Shortage — Tennessee Trucking Association Chairman Donna England spoke to members of the Senate Transportation and Safety Committee this week regarding their efforts to address a shortage of drivers within their industry. England said that a shortage of 80,000 drivers exists nationwide partially attributed to an aging truck driver workforce, some of whom retired early due to the COVID pandemic. She also attributed it to industry regulations like electronic login requirements, parking shortages, and drivers being pushed out due to traffic violations like speeding.

The trucking industry is looking to recruit new drivers by educating high schoolers about the advantages of a career as a truck driver. England said the average salary of truck drivers is $48,500 but that there is potential for these wages to increase significantly. Some industry officials are also looking at training former prisoners who want to start a new life by being gainfully employed as a truck driver.

Approximately 93.8 percent of manufactured tonnage is transported by trucks in Tennessee, showing the importance of the trucking industry to businesses and jobs throughout the state. About 90.5 percent of the state’s communities depend exclusively on trucks to move their goods, illustrating the importance of the industry in supplying Tennesseans with needed products.

Education committee advances bill — The Senate Education Committee this week advanced SB 1674 after making an amendment.

The bill extends eligibility for an education savings account to students zoned to attend a school in a Local Education Authority that, at any time during the three-year period immediately preceding Sept. 1, 2025, or thereafter, did not offer students 180 days of in-person learning each year due to COVID-19.

“We’re doing this because we know in-person learning is the most effective way to educate a child,” said Sen. Mike Bell, (R-Riceville), who sponsored the bill. “We’re doing this to make sure our public schools, which are tasked with educating the vast majority of students in our state, take that job seriously.”

During this week’s meeting, the committee agreed to amend the bill so that it would no longer apply to Local Education Authorities that voluntarily refused to allow parents and guardians to opt their students out of the mask mandate.

Doctors request increase in trauma center funding in Tennessee — Trauma care in Tennessee is robust, but funding is on the decline as demand for trauma care continues to increase in the state. That’s according to a presentation before the Senate Health and Welfare Committee this week by Dr. Brian Daley, Program Director, Chief Division of Trauma and Critical Care at the University of Tennessee Medical Center at Knoxville; Dr. Brad Dennis, Trauma Medical Director at Vanderbilt University; and Dr. Bracken Burns, Professor of Surgery at East Tennessee State University.

The doctors are requesting the committee and General Assembly at large stabilize Tennessee’s Trauma System Fund, and ensure a sustainable funding source for the statewide trauma system.

The Trauma Fund Law was established in 2007 to provide funding to support and maintain the state’s trauma system. Since then, the fund has decreased by over $2 million annually, while Tennessee has seen 7% population growth and a two-fold increase in trauma patients treated across the state between 2010 and 2019, said Dennis. The trauma fund has diminished because it comes from the statewide cigarette tax, which has generated less and less revenue as the use of cigarettes continues to decline in Tennessee.

Sen. Shane Reeves (R-Murfreesboro) noted that while smoking has decreased, vaping has increased in the state. Tax revenue associated with vaping does not currently fund the trauma system, but could be a potential future funding source, he suggested.

Asked what is needed to keep Tennessee’s trauma system afloat, Daley pointed to the state of Georgia, where a state fund provides about $30 million a year to the trauma system.

“That doesn’t compensate for all the uncompensated care and it doesn’t come close to providing all the resources for 24/7-365 care at all the trauma centers,” he said. “But it’s a robust number that allows them to really develop their system and to encourage additional hospitals to participate.”

Tennessee winegrowers call for relaxed regulations — Wineries and grape growers in Tennessee are being held back by onerous regulations in need of reform, according to a TN Farm Winegrowers Alliance presentation to the Senate Energy, Agriculture and Natural Resources Committee this week.

Currently, growers are restricted from growing more than 50,000 gallons annually, said Rhonda Moody, president of the Alliance. He also noted a Tennessee winery can only sell five cases of wine to a customer in one day, but liquor and grocery stores can sell an unlimited amount of wine, to name a couple of examples of restrictions he’d like to see change.

“Tennessee is probably the only state and grapes is probably the only crop that has caps built into the law to stop us from prospering,” Moody said.

Moody said Tennessee never recovered from Prohibition, noting there were roughly 128,000 acres of vineyards in the state in the late 1800s and just 1,000 acres today.

Moody urged lawmakers to pass legislation modeling that of North Carolina. In 2002, Tennessee was home to 21 wineries and North Carolina was home to 31 wineries. North Carolina since eased regulations on the industry and today is home to 200 wineries compared to just 68 in Tennessee, Moody said, adding the acreage and yields of North Carolina wineries are ten times that of Tennessee’s.

Committee members were sympathetic to Moody’s request.

“I think we have some work to do” said Sen. Janice Bowling (R-Tullahoma).

###

The 112^th General Assembly reconvened on Tuesday to kick off the 2022 legislative session. Redistricting, the state budget, tax relief, education funding, access to quality healthcare and mental health services, labor shortages and continuing the state’s robust job growth are among the wide variety of issues expected to be on the agenda this year. The following is a summary of the first week of session:

Redistricting maps clear committee

The Senate Ad Hoc Committee on Redistricting voted on Thursday to recommend both State Senate and Congressional redistricting maps to the Senate Judiciary Committee. The maps are expected to be voted on by the General Assembly next week.

“We worked very hard with this committee to make this process very transparent and I think we’ve ended up with fair and legal maps,” said Senate Majority Leader Jack Johnson (R-Franklin), who is also Chairman of the Ad Hoc Committee on Redistricting. “The public input was a critical component of what we did with this committee. We asked for public input, it was received, and we considered that input. … We also obviously consulted with all members of the General Assembly.”

Redistricting occurs every 10 years following the census. The purpose of redistricting is to ensure Tennesseans have equal representation. This right is rooted in both the federal and state constitutions and has been ruled upon by the courts numerous times. The most famous case is the landmark U.S. Supreme Court decision in Tennessee’s Baker v. Carr, which led to the “one man – one vote” standard used in redistricting nationwide.

The new Senate map balances the federal mandate of “one person, one vote” with the state constitutional mandate not to split counties. The map has a historically low deviation among districts — 6.17% — with only nine county splits. No incumbents are paired together, and current district boundaries were disturbed as little as possible.

The new Congressional map adheres to the constitutional mandate of “one person, one vote” and splits just nine counties. In accordance with the Voting Rights Act, the map preserves the 9^th District as a majority-minority district, and no incumbents are paired together.

Population increases in and around Davidson County have made splitting the county a logical move to manage growth. There is also precedence for doing so. The last two Democrat-drawn maps in 2002 and 1992 split Davidson County in two. In the 1990s, Congressman Bart Gordon represented a portion of Davidson County, and in the 2000s, Congressman Blackburn represented a portion of the county. Democrats have also split both Shelby County and Knox County three ways at various points in history.

“I am proud of the work the Senate Ad-Hoc Committee on Redistricting has done. Despite a compressed timeframe due to the late release of census data, the committee conducted an open and transparent process that solicited and considered input from all Senators and the general public,” said Lt. Governor Randy McNally (R-Oak Ridge). “The recommended maps are fair and legal, disturb no currently serving legislator and preserve, as much as possible, current district composition. Despite challenging and contradictory state and federal mandates, this committee managed to keep both population deviation and county splits to historic lows. An excellent work product to hand off to the Senate Judiciary Committee as this process continues.”

Tennessee expected to see higher than budgeted revenues this fiscal year

Tax revenue is expected to continue growing in Tennessee to $3.18 billion over budgeted estimates this fiscal year, according to the Fiscal Review Committee. It presented on the state’s fiscal outlook before the Senate Finance, Ways and Means Committee Tuesday.

In the first four months of the current fiscal year, collections have increased over the same period last year by 21.8%, and have exceeded current budgeted targets by over 25% or $1.2 billion, said Fiscal Review Committee Director Bojan Savic.

The Fiscal Review Committee is estimating total current year growth of 8.8%, and fiscal year 2023 growth of 4.85%.

Savic noted inflation continues to be a concern as supply chain issues and energy costs have contributed to higher prices, but pent-up demand and business and population growth continue to drive growth in tax collection.

Chief Economist Joe Wegenka said the state has seen improving employment numbers, but noted total employment remains relatively low due to labor force participation.

“Most sectors have improved to pre-pandemic levels,” he said. “Education and health services are still down slightly, leisure and hospitality has recovered quite a bit, but there are still about 32,000 jobs fewer than before the pandemic.”

In Brief…

Highway Safety — The Senate Transportation and Safety Committee heard testimony from Tennessee Highway Patrol Colonel Matt Perry this week regarding their efforts to make the state’s roads safer. Perry said the department is focusing on getting more troopers on the roads as they increase visibility after an escalation in fatal crashes in 2021. Perry said speed, failure to yield the right of way, distracted and impaired driving were the primary reasons for the increase. The department is actively recruiting new highway troopers, including experienced officers from other states that will be in the field more quickly. After a basic training program and on-the-job field training, the troopers will be prepared to protect the public as they travel on Tennessee’s roads.

Alternative Fuel Corridors – Tennessee is making significant progress in the identification, planning and designation of alternative fuel corridors in Tennessee, according to Department of Transportation Deputy Commissioner Preston Elliott. He told lawmakers this week that the Volunteer State is ranked first in the Southeast for alternative fuels or electric vehicle (EV) projects and investments with four automotive manufacturers in the state. The Tennessee Department of Transportation has been working collaboratively within and outside the state to provide a diversity of alternative fuel options for the traveling public. This includes partnering with the Tennessee Department of Environment and Conservation, Tennessee Valley Authority (TVA) and surrounding states to move forward with this initiative. The designation of alternative fuel corridors positions Tennessee to acquire significant federal funding, which is available for this purpose. In addition to electric vehicles, alternative fuels include liquid petroleum gas (LPG), compressed natural gas (CNG), liquid natural gas (LNG) and hydrogen (HYD).

Road Safety / Snow and Ice — The Tennessee Department of Transportation (TDOT) remains ready to meet the challenges of snow and ice on state roads as winter weather threatens safe travel. TDOT’s statewide 2021-2022 winter weather budget is $25.6 million, according to Deputy Commissioner and Chief Engineer Paul Degges, who testified before the Senate Transportation and Safety Committee. He said there are salt bins in all 95 Tennessee counties to meet future needs as the department works closely with other state agencies to complement emergency services in inclement weather.  TDOT can also procure the services of local contractors to help clear roads and keep the public safe. TDOT is looking at improving shift work, as well as utilizing other resources like technology to detect road surface temperatures to expedite the cleaning of roads.

Federal Transportation Infrastructure Bill – The Senate Transportation and Safety Committee heard testimony on Wednesday that the new Infrastructure Investment and Jobs Act (IIJA) authorized by Congress will appropriate about $1.7 billion more than the previous federal transportation bill for Tennessee over a five-year period.  This includes $1 billion for Tennessee’s core road and bridge programs, and $0.7 billion in new programs such as carbon/green initiatives and electric vehicle infrastructure. TDOT Interim Commissioner and Chief Financial Officer Joe Galbato said there are many unknowns regarding set asides or how these funds can be used.

The funds are substantially less than the additional $6.2 billion being touted by IIJA supporters. Tennessee already receives $4.5 billion under the previous Fast Act highway funding program.

The five-year IIJA required a transfer of $118 billion to keep the highway transportation fund (HTF) solvent. Congress did not take action to address a long-term sustainable solution for revenue shortfall.  According to the Congressional Budget Office, the IIJA will add $256 billion to projected deficits over the 2021-2031 period, thus likely contributing to inflation.

As further guidance from the federal government is released, the responsible use of these federal dollars will be a top issue for the Transportation and Safety Committee as well the Finance, Ways and Means Committee this year.

Tennessee higher education funding formula — Tennessee remains the only state that funds its public higher education institutions based solely on outcomes. That’s according to a presentation by Dr. Emily House, executive director of the Tennessee Higher Education Commission, who appeared before the Senate Education Committee Wednesday.

Funds are allocated based on a formula that is thoroughly reviewed every five years by the Tennessee Higher Education Commission. For 2021-2025, the commission is recommending the following changes:

• Inclusion of a focus population premium for undergraduate awards in high-need fields
• Remove activities provided by trainers who received their training at the reporting college
• Reduce the influence of fixed costs (e.g., M&O, rent, equipment) on the outcomes-based funding formula
• Recognize out-of-state, low-income students as we recognize out-of-state students in all other outcomes/focus populations

Biosimilars — The Senate Health and Welfare Committee on Wednesday took in a presentation about biosimilars and their savings potential in Tennessee. According to the FDA, a biosimilar product is a biological product that is highly similar to and has no clinically meaningful differences from an existing FDA-approved reference product. In the simplest terms, biosimilars are a generic of a biologic drug, which are medicines made from living organisms, said Fran Gregory, executive director of the pharmaceutical company Sandoz. There are currently just 33 FDA-approved biosimilars in the United States, but that number is growing every month, she added.

In her presentation, Gregory said biosimilars, if widely adopted, could save the United States healthcare system $183 billion over the next five years. In Tennessee, if the biosimilars that are currently on the market were utilized 70% of the time over the reference product, the state would save an estimated $390 million per year, she said.

###