March 14, 2003

Budget Presented by Governor

Lottery Implementation Bill Advances

NASHVILLE--This week members of the Senate and the House of Representatives met in a Joint Convention on Monday evening to hear the governor's budget address.  The proposed budget for the 2003-2004 Fiscal Year that begins on July 1 contains $21.46 billion in total spending from all sources for all programs.  That is an $840 million increase in total spending over the estimated current year budget that ends on June 30.

Many departments will see 9% cuts this year as funds are reallocated virtually across the board in the budget.  The cuts include unfilled positions which have in recent decades provided flexibility for departmental and agency level managers.  By squeezing flexibility out of departmental budgets, the proposed budget would consolidate power in the chief manager rather than the managers of the bureaucracy, an approach strenuously avoided in the past.

          Some departments do well, however.  TennCare and K-12 Education have proposed spending increases.  TennCare will receive an additional $328 million increase in state spending which, with other monies, amounts to $1.2 billion in increased TennCare spending, if the budget is adopted in its present form.  K-12 will receive an additional $111 million increase which includes $26.7 million for the Small Schools Suit, Scene III.  There is also a dramatic jump of $114 million to a total of $143 million under Miscellaneous Appropriations. [Code 351]

Legislators finally received copies of the budget on Tuesday morning.  The Senate Finance, Ways and Means Committee received a brief broadbrush budget presentation Tuesday morning.  Members will spend the next few weeks poring over the budget document as more and more details unfold.  Committees began hearing the departmental and agency budgets on Tuesday.  Some budgets have already been passed forward to the Senate Finance Committee where the bulk of the budget work will take place this year on the Senate side. 

          Bottom line, the proposed $21.46 billion budget proposes almost $840 million more in additional combined spending over the current year's $20.62 billion estimated budget.  As stated on Page 12 of The Budget document, the state appropriation of $9.786 billion is $220 million more than last year's $9.566 billion.  There are no new taxes proposed to pay for the increased spending.  Reserve funds and the Rainy Day Fund, all one-time monies, will be depleted with no known provision to replenish them.

          One budget comparison in the presentation uses the State Taxpayers Budget that looks only at state taxpayer dollars, a nontraditional budget scheme advocated and advanced by the previous administration in the last couple of years and without a budget data history.  It purports to show that, if a certain line of the Estimated current year budget is bulked up by a $370 million supplemental TennCare appropriation, then the total $9.68 billion is $132 million higher than the $9.55 billion proposed for next year.  That figure is then portrayed as a proposed reduction in state appropriations.  State taxpayers are also federal taxpayers.  At any rate, any supplemental TennCare appropriation for the next budget year cannot now be known and is listed as N/A, which traditionally stands for not available and/or not applicable.

          This approach is in stark contrast to the approach eight years ago when traditional budget presentations of ALL taxpayer appropriations showed the "governor's proposed 1995-96 budget" totaled "$13 billion, which is $35.9 million less than this year [1994-1995]" and preserved the Rainy Day Fund, according to a March 1, 1995, Governor's Press Release.

Generally, the new administration's budget approach for Fiscal Year 2003-2004 was hailed by both sides of the aisle.  Many Republican lawmakers who had advocated cuts during the last four years felt vindicated by proof that the departmental budgets could be cut.  Among those vindicated were Senators Jeff Miller (R-Cleveland), David Fowler (R-Signal Mountain), and Mark Norris (R-Collierville).  All had been ridiculed for presenting proposals with cuts of less than 9 percent.

Senator Norris viewed the layoffs of filled positions in the currently proposed budget somberly and said he was reminded of a speech he made to the Senate two budgets back about how employee payraises included in a budget gimmick might ultimately become severance pay.  Under Senate Rule 61, the following was contained in a Statement of Senator Mark Norris that was entered into the record on July 12, 2001, explaining his vote against the appropriations bill. "They are not raises; they are severance pay, because Tennessee will not have the funds to make good on its commitment."  Senator Norris also voted against the veto override on August 7, 2001, preferring to stay and cut the budget at a time when the cuts would have been less painful.

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 Also in Senate action this week, Senate Bill 1/House Bill 1, the Tennessee Education Lottery Implementation Law, got some traction and advanced out of the Senate Government Operations Committee where it had languished for weeks.  Having cleared its first high hurdle in the Senate, the bill now goes before the Senate State and Local Government Committee for consideration in a committee where the Committee Chairman just happens to be the Senate sponsor.  Senator Jeff Miller (R-Cleveland), on the same committee, co-sponsors the bill.

Republican Senators voting in favor of the bill in Government Operations were Senators Mae Beavers (R-Mt. Juliet), Jim Bryson (R-Williamson County), Tim Burchett (R-Knoxville), Bill Ketron (R-Murfreesboro), and Steve Southerland (R-Hamblen County).

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Norris Nudges TennCare & Education to Submit

Plan to CMS so State Won't Lose More Money

Senate Resolution 13 by Senator Mark Norris (R-Collierville) passed out of the Senate Finance Committee to urge the TennCare Bureau and the state Department of Education to submit a Medicaid Administrative Claim Program Implementation Plan to the Center for Medicare and Medicaid Services (CMS).  The state is losing at least $18 million a year in federal funds if the plan is not submitted.  In the last two years, at least $23 million has been lost.  The federal government only allows looking back for adjustments for a two-year period.

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Williams Moves Cost-saving Measure

SB 588/HB 900 by Senate Transportation Committee Chairman Micheal Williams (R-Maynardville) passed out of Senate Transportation Committee and went behind the budget in Senate Finance, Ways and Means Committee with a major amendment to revise the law regarding utility relocation during construction of transportation projects.  The sponsor stated that it was a very important bill and he was backed up by his Democratic co-sponsor.  It is an administration bill that helps both rural and urban areas on an issue that has not been dealt with in the past.  It costs about $12.5 million and then saves about the same in the first year and is expected to save money in the future by preventing construction delays.

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Bills, Bills, Bills

All things considered: As of 11:40 a.m. (CST) Thursday, March 13, the Senate has 1,995 Senate bills filed, while the House has 2,075 bills filed.  Senate Joint Resolutions now number 178; House Joint Resolutions 157; Senate Resolutions 20; and House Resolutions 79.  The Senate has used 18 days and the House has used 17 days of the 90 regular session days allowed every two years under Article II, Section 23 of the Constitution for a regular session. The Senate and the House recessed Thursday and plan to convene in regular session on Monday, March 17, at 5 p.m.

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Senate Floor Actions

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SB 53/HB 292 by Senator Norris received the unanimous consent of the full Senate Monday to require the Commissioner of Financial Institutions to report to the governor annually within 60 days after the end of each calendar year rather than within 60 days after the end of each fiscal year.

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SB 202/HB 1475 by Senator Ron Ramsey (R-Blountville) received the unanimous consent of the full Senate Monday to rewrite the residency requirements and fee schedule for lifetime sportsmen licenses.

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SB 383/HB 575 received the unanimous consent of the full Senate Monday to clarify that no provision of the Electronic Transaction Act limits, modifies or supercedes the federal E-Sign Act unless otherwise permitted.

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SB 508/HB 673 received the unanimous consent of the full Senate Monday to require hearing aids to be marked with the name of the manufacturer, distributor, or model name or number, serial number, and year of manufacture.  Senator Tim Burchett (R-Knoxville) co-sponsors the bill.

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SB 546/1018 by Senator Fowler received the unanimous consent of the full Senate Monday to revise the Educational Records as Evidence Act to include postsecondary institutions and to comply with the provisions of the Family Educational Rights and Privacy Act.

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SB 688/HB 1095 received the unanimous consent of the full Senate Monday to require the reporting of medical instruments and other foreign objects left in a patient after surgery as unusual events.  The bill summary states that, under present law, every licensed health facility must report unusual events, and certain other defined incidents, to the Department of Health.  Any such unusual event or other defined incident must be reported to the department by the facility within seven business days from the facility's identification of the event or incident.  Present law enumerates a number of circumstances that could result in an unusual event that is an unexpected occurrence or accident resulting in death or life-threatening or serious injury to a patient, not related to a natural course of the patient's illness or underlying condition. Among such circumstances are procedure-related incidents, regardless of setting and within 30 days of the procedure, which includes "an unintentionally retained foreign body." This bill would specify that "foreign body" includes but is not limited to medical instruments.

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SB 495/HB 933 by Senator Norris received the unanimous approval of the full Senate Monday to prohibit the unauthorized use of a financial institution's logo or name and to prevent false representations of a financial institution's endorsement of products and services in advertising or solicitation.  As amended, the measure would make violations a Class B misdemeanor and a violation of the Unfair Competition Act, as well as violations under home improvement contractor law.  This will cut down on unsolicited junk mail and eliminate some predatory lending.

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SB 476/HB 750 received approval in an 18-13 vote of the full Senate Wednesday to authorize a judge to sentence first-time DUI offenders to remove litter from highways for 48 hours in lieu of 48 hours of incarceration.

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SB 708/HB 660 by Senator Burchett received unanimous approval of the full Senate Wednesday to revise the language in present law by deleting the word "unlawful" in a specific statute to clarify that a violation of failing to yield the right of way or interfering with a properly identified funeral procession which is the enabling statute for a county or municipal action is clearly a civil violation and not a criminal act.

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SB 957/HB 1250 received unanimous approval of the full Senate Wednesday to change the designation of the members of Tennessee Regulatory Authority from "director" to "commissioner."  The title "director" came about when the old Public Service Commission was abolished in 1995-1996 at which time the new TRA came into existence.  Other states usually have directors as a subordinate position to their utility or regulatory commissioners in comparable agencies and the title deviation has led to some confusion.

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SB 1190/HB 1487 by Senator Ketron received unanimous approval of the full Senate Wednesday to clarify that an out-of-state learner's permit is acceptable for the intermediate driver license requirements.

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HB 297/SB 326 received unanimous approval of the full Senate Wednesday to allow a reduction of up to five days in the 2002-2003 school year due to severe weather conditions in local education agencies located in declared federal disaster areas.  Killer tornadoes struck several Cumberland Plateau counties in November 2002 and disrupted schools for several days.  Senator Williams is a co-sponsor of the bill.

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SB 47/HB 264 received unanimous approval of the full Senate Wednesday with a compromise amendment to exclude from the home care organization licensing requirements any person licensed by the Board of Occupational and Physical Therapy Examiners or the Board of Communication Disorders and Sciences who provides services to people in their homes.

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SB 1067/HB 1745 received unanimous approval of the full Senate Wednesday to extend the Predatory Lending Committee work to Feb. 28, 2004.  Senators Southerland and Norris co-sponsor the bill.

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SB 479/HB 1322 received the unanimous approval of the Senate Thursday to add a member of the Senate and a member of the House to the Victims of Crime State Coordinating Council with the two new members to be appointed by the respective speakers.

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SB 115/HB 248 by Senator Ben Atchley (R-Knoxville), a housekeeping bill, passed out of the Senate Finance Committee and then received the approval of the full Senate Thursday to revise various provisions of the Tennessee Consolidated Retirement System (TCRS), such as a filing deadline for lump sum payments, requirements for political subdivisions to withdraw from TCRS, and eligibility requirements for city judges and attorneys.

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SB 677/HB 714 by Senator McNally passed out of the Senate Finance Committee and then received the unanimous approval of the full Senate on Thursday to permit the State Board of Equalization to allow a county to extend its reappraisal cycle longer than six years for the purpose of synchronizing that county's cycle with a contiguous county's cycle when a city lies partly in each county.

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SB 541/HB 887 passed out of the Senate Finance Committee and then received the unanimous approval of the full Senate on Thursday to define an energy resource recovery facility to clarify that energy produced in such facilities should not be subject to local sales and use tax in counties with a metropolitan form of government.  The Thermal Plant facility in Nashville will no longer qualify under the definition because it burns fuel instead of waste.  A number of downtown office buildings, including many state buildings, use the Thermal Plant.

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SB 1528/HB 1468 passed out of the Senate Finance Committee and then received the unanimous approval of the full Senate on Thursday to revise provisions governing the advertisement and sale of bonds.  The bill gives more flexibility to the state during an erratic economic period.

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SB 523/HB 824 passed out of the Senate State and Local Government Committee and then received the approval of the full Senate on Thursday to establish that special rates and terms are valid when reached through negotiation between a public utility and a business customer.  A Tennessee Regulatory Authority (TRA) proposed amendment on the bill states that notwithstanding any other provision of state law, special rates and terms negotiated between public utilities that are telecommunications providers and business customers shall not constitute price discrimination.  Such rates and terms shall be presumed valid.  The presumption of validity of such special rates and terms shall not be set aside except by complaint or by action of the TRA directors, which TRA action or complaint is supported by substantial evidence showing that such rates and terms violate applicable legal requirements other than the prohibition against price discrimination. Such special rates and terms shall be filed with the authority.

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SB 1691/HB 930 passed out of the Senate State and Local Government Committee and then received the unanimous approval of the full Senate on Thursday to authorize municipal electric systems to accept contributions from customers through voluntary round-up-utility-bill-to-next-dollar programs and distribute such contributions for bona fide economic development or community assistance purposes approved by the board or supervisory body.

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SB 762/HB 1458 passed out of State and Local Government Committee and then received the unanimous approval of the full Senate on Thursday to require a plan of services to address the impact of proposed annexation upon the delivery of educational services.  According to the summary, under present law, a municipality may, by ordinance, extend its corporate limits by annexation of such territory adjoining its existing boundaries as may be deemed necessary for the welfare of the residents and property owners of the affected territory as well as the municipality as a whole. The municipality may annex when petitioned by a majority of the residents and property owners of the affected territory, or upon its own initiative when it appears that the prosperity of such municipality and territory will be materially retarded and the safety and welfare of the inhabitants and property endangered. Before any such territorial annexation by a municipality, the governing body must adopt a plan of services establishing the minimum services to be delivered and the projected timing of the services. The plan of services must be reasonable with respect to the scope of services to be provided and the timing of the services. The plan of services must include: police protection, fire protection, water service, electrical service, sanitary sewer service, solid waste collection, road and street construction and repair, recreational facilities and programs, street lighting, and zoning services. This bill would include schools within the required plan of services as well as specific provisions addressing the impact, if any, of annexation on school attendance zones.

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Senate Joint Resolution 64 passed out of the Senate Finance, Ways and Means Committee and then was unanimously adopted by the full Senate Thursday to urge Congress to require, when applicable, that government uniforms and equipment be manufactured in the United States.  The textile and garment industry used to be prominent in the southeastern states.

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Senate Committee Actions

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SB 1452/HB 1344 by Senator Bill Clabough (R-Maryville) passed out of the Senate Commerce, Labor and Agriculture Committee to remove the requirement for Tennessee registration for motor vehicles covered under the Lemon Law which would allow vehicles purchased in Tennessee, but registered in another state with  similar title provisions, to be covered under the Lemon Law.  It would also remove antique vehicles from the Lemon Law and add definitions of "motor vehicle" and "person."

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SB 1690/HB 882 passed out of the Senate Commerce Committee to add International Building and International Fire codes to the lists of building construction and fire prevention codes which may be adopted by local governments as part of building construction safety standards.  Senators Ketron and McNally are co-sponsors on the measure.

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SB 280/HB 251 -- a Honey of a Bill -- by Senator Micheal Williams (R-Maynardville) passed out of the Senate Commerce Committee to exempt any person who makes infrequent casual sales of honey or who sells less than 150 gallons of honey per year from the regulations applicable to other food service establishments, specifically inspection by the Agriculture Department and an annual permit fee that is $40 this year and which rises to $50 as of July 2003.  An amendment sweetened the bill for opponents by clarifying that this bill was for mom-and-pop beekeeping operations and not for commercial ventures by specifically excluding retail food stores from the exemption.  The buzz is that it then passed unanimously.

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SB 662/HB 1066 passed out of the Senate Commerce Committee to extend the period of time for disposing of repossessed personal property from six months to one year, to delete the restriction on check cashing charges held invalid by federal district court, to eliminate safe deposit notice requirement, and to reduce the period of time for acquiring a new bank branch from five years to three years.

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SB 1580/HB 1699 passed out of the Senate Commerce Committee to permit chiropractors and physicians to form and own shares in the same professional corporation or same professional limited liability company so long as such persons conform their practice to the profession's ethical standards and accurately state their professional credentials in any public advertising.

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SB 838/HB 1769 passed out of the Senate General Welfare, Health and Human Services Committee to revise the health related clinical activities or services which may be practiced by a psychological examiner or senior psychological examiner to be psychotherapy behavior analysis techniques instead of psychotherapy techniques.

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SB 991/HB 678 by Senator Williams passed out of the Senate General Welfare Committee to authorize a physician serving as a U.S. Public Health Service Commissioned Officer who is trained as National Health Service Corps Ready Responder to practice medicine at federally qualified health centers while pursuing licensure to practice medicine in Tennessee.

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SB 1047/HB 1383 by Senator Fowler passed out of the Senate General Welfare Committee to subject hospitals that fail to file a timely and adequate joint annual report with the Department of Health to a deficiency that requires a corrective action plan or additional possible disciplinary action.

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SB 176/HB 591 by Senator Norris passed out of the Senate Transportation Committee to prohibit the exhibition of an obscene or patently offensive movie on or within a motor vehicle if it is visible to other drivers and to impose a fine from $2 to $50 for a violation.

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SB 565/HB 719 by Senate Transportation Committee Chairman Williams passed out of the Senate Transportation Committee to revise the requirements for speeding violations occurring within highway construction zones.  The bill would establish that the fine for speeding in a construction zone would apply whether or not construction was occurring.  Senator Southerland co-sponsors the bill.

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SB 579/HB 804 by Senate Transportation Committee Chairman Williams passed out of the committee to repeal obsolete or federally pre-empted statutes governing railroads, such as the authority for the Department of Transportation to set the location of freight and passenger train depots, taking the conditions of the road, safety of freight, and public comfort or convenience into consideration.  Additionally it deletes the provisions governing streetcars and interurban railroads.  Streetcars have not been in use here for about 5 decades or so.  For those who desire more information about streetcars, see The Tennessean Online at http://www.tennessean.com/learn-nashville/archives/03/03/29714682.shtml?Element_ID=29714682

and

http://www.tennessean.com/learn-nashville/archives/03/03/30069082.shtml?Element_ID=30069082

for two recent nostalgia pieces on streetcars in Nashville.

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SB 578/HB 802 by Senate Transportation Committee Chairman Williams passed out of the Senate Transportation Committee to clarify the circumstances under which a driver is required to stop at a railroad crossing.