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May 2, 2008
Passage of historic legislation on competitive cable services, home care for elderly,
and open records highlight Capitol Hill Week
Funding Board meets to discuss declining revenue projections
The State Senate passed a number of key bills this week that will have a great impact on Tennessee’s future for generations to come. These include three separate bills to bring competitive cable television and video services to consumers; home- and community-based care to the elderly or disabled; and open records to citizens seeking information regarding their government.
Meanwhile, legislators continued to hear discouraging news this week regarding Tennessee’s finances, as the governor announced that his plan to cut the budget will likely include a reduction in the state’s workforce. The state’s Funding Board, a group of financial experts who forecast Tennessee’s economic future, met this week to revise downward the revenue estimates used in proposing the governor’s current budget bill. Their new estimates will be used as the guideline to determine how deep the budget must be cut.
The Funding Board also revised estimates for revenues derived from the state’s lottery fund. Originally, state senators had targeted $22 million in recurring lottery scholarship money to be used to expand scholarship opportunities for Tennessee students. The Board estimated available dollars for use in expanding the scholarships on a recurring basis should be adjusted downward to $12 to $15 million. This money is separate from the $460 million Lottery Access Reserve Account, which is one-time money that has accumulated over the Lottery Scholarship Program’s early years of implementation.
The governor is expected to bring the General Assembly a new budget plan on May 12 when he addresses the General Assembly in a joint session on the matter. He says the plan is likely to include $550 million in cuts from his original $27.88 billion budget proposal. The $28 billion budget for this fiscal year, which runs through June 30, is also expected to be cut as much as $380 million to balance and close out the year as required by the state constitution.
The state has approximately $1.5 billion dollars from various reserve accounts from departments, agencies, and other state government sources. The governor may use some of those funds to help bridge the budget gap. The state has $750 million in its rainy day fund, which is the state’s savings account. The remaining weeks of this legislative session will primarily focus on the budget.
Competitive Cable bill approved by State Senate
The State Senate voted 29 to 0 to approve legislation which will chart a positive course for the future of cable, video and broadband communication services in Tennessee. The bill, SB 1933, is the result of three years of work and much “communication and compromise” between members of the cable industry, representatives of local government, legislators, and other community and business leaders.
“This is a historic day,” said Senator Bill Ketron (R-Murfreesboro), who worked with Senator Jim Tracy (R-Shelbyville) and other lawmakers to pass the bill. “This legislation will bring more competition and choice to consumers. Truly, this bill will change the way citizens in Tennessee communicate. It will spur economic development for business and industry alike by bringing more broadband services to our state.”
Under the bill, new cable competitors could obtain a 10-year franchise certificate from the Tennessee Regulatory Authority (TRA) beginning July 1. Existing providers would continue to pay local franchise fees directly to local government. New competitors operating under a state franchise would also pay local governments franchise fees of five percent quarterly. It preserves the rights of local governments to continue to issue permits for right of ways for cable lines. In addition, the bill requires service providers to continue PEG access and support to protect public, education, and government programming.
On consumer protection, the bill specifically prohibits discrimination based on income or race with strong penalties for violation. Similarly, existing cable companies would be required to continue to serve unprofitable areas. New providers must demonstrate at the end of 3.5 years that 25 percent of households with access to the service are low income. All providers must also meet FCC mandated customer service standards and the TRA can require credits if a provider does not remedy service complaints.
“As we worked together, everyone came up with solutions,” added Senate Commerce Committee Chairman Steve Southerland. “This is a great bill that will bring telecommunications and technological businesses to Tennessee which will, in turn, help improve our economy.”
Ketron said the expansion of high speed broadband to unserved and underserved communities was one of the key provisions in the legislation to foster access to rural areas of the state. Video providers that deploy broadband in new areas would get a four to one credit against their video build-out requirements in unserved areas, and a two to one credit in underserved areas, under the proposal. Local governments may subsidize broadband deployment to underserved areas if a TRA review determines no private sector interest exists.
The bill now goes to the governor for his signature. It will take effect July 1, 2008.
Senate approves landmark legislation to give elderly and disabled Tennesseans more long term health care options
Legislation that would give elderly and disabled Tennesseans more long term care options was unanimously approved by the full Senate this week. The bill, SB 4181, simplifies access to home and community-based services and increases the number of people able to stay at home for long-term care needs through the state’s TennCare program. Presently, 98 percent of long-term care funding is spent on institutional care with limited utilization of lower cost home and community-based options.
“This is an issue whose time has come,” said Republican Caucus Chairman Diane Black (R-Gallatin), a registered nurse. “We have set forward in this bill our guiding principles of what a long term care system in Tennessee should look like,” “It shows a commitment to a continuum of care, whereby an individual can enter the system in the least restrictive setting and receive services to make it a seamless system.”
Currently, the state’s long term care system is very fragmented, providing funds for only a small amount of home- and community-based services and nursing home care. The legislation will allow for many other options including adult day care and assisted care living.
“We are trying to get a system where you can enter on one end and it will be seamless as the needs of the individual changes. This makes the single entry point, where citizens can come into the long term care system at one place, a very important component of this legislation,” Black continued.
The comprehensive bill, called the “Long-Term Care Community Choices Act of 2008,” includes the following key provisions:
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creates consumer-directed care options, including the ability to hire non-traditional family members, friends, and neighbors with accountability for taxpayer funds
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broadens residential care choices in the community beyond nursing facilities, including new options such as companion care, family care homes, and providing improved access to assisted care living facilities
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streamlines the eligibility process for faster service delivery and the enrollment process for new providers
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maintains a single point of entry for people who are not on TennCare today and need access to long-term care services through Medicaid or other available programs
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use existing Medicaid funds to serve more people in cost-effective home and community settings
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Designates one entity to coordinate all of the care a TennCare member needs including medical, behavioral, and long-term care
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implements active transition and diversion programs for people who can be safely and effectively cared for at home or in another community setting outside the nursing home
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installs an electronic visit verification system to monitor home care quality
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creates a Long Term Care Oversight Committee to review the program during its first few years of implementation.
“Long term care became very personal to me in 1998 due to my dad’s illness,” said Senator Jamie Woodson (R-Knoxville). “Senator Black was working on this issue in the House at that time and became the champion for change. I want to thank her for her steadfast and patient work, and for never giving up.”
Senator Dewayne Bunch (R-Cleveland) echoed Woodson’s statement saying, “We know Senator Black’s passion and dedication on this issue. We want to express our gratitude for her efforts.”
Open Government bill approved in State Senate
In other action this week, the full Senate voted to approve major legislation opening records in Tennessee. The bill, SB 3280, comes after the work of an Open Government Study Committee that looked at the issue last year.
Senator Randy McNally (R-Oak Ridge), sponsor of the bill, told state senators that the legislation would move Tennessee from being rated the 4th lowest to 10th best in the nation by open government watchdog groups.
The bill:
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creates the Office of Open Records Council to deal with open records issues for local government
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requires open records requests to be available within five days or a denial must be sent with explanation
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clarifies that violations may be considered in circuit or chancery court
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mandates certain boards and utilities to develop training programs on open meeting laws.
The legislation is pending action in the Finance, Ways and Means Committee in the House of Representatives.
Legislation banning open containers of alcohol in vehicle approved by full Senate
The full Senate has approved legislation to ban open containers of alcohol in vehicles in Tennessee. The bill, sponsored by Senator Mae Beavers (R-Mt. Juliet), would allow the state to have control over $12 million in federal highway funds due to the state not being in compliance with federal safety laws.
“The law presently on the books is merely an invitation for someone to drink and drive as long as there’s a passenger that they can ‘pass the bottle’ to if they get pulled over by law enforcement,” said Beavers. “This legislation will provide safety for our citizens and help us access needed road funds.”
The bill would bring the state into compliance with the Transportation Equity Act for the 21st Century. If a state does not achieve compliance with the Federal program requirement, a portion of that state’s federal-aid highway construction funds will be redirected. Transferred funds may be used only for alcohol-impaired driving countermeasures, enforcement of drunk driving laws, or hazard elimination programs.
There were 1,287 fatalities on Tennessee roads with 509 due to alcohol-related crashes, a 7.6 percent increase from the previous year. Motor vehicle crashes are the leading cause of death among persons between the ages of 3 and 33, with 50% of the victims being in alcohol-related crashes. It is estimated that alcohol-related crashes in the U.S. have an annual cost of more than $50 million.
The bill, SB 3042, is set to be heard next week in the House of Representative’s Budget Subcommittee.
Legislation makes step towards divesting Tennessee’s pension fund from any investment tied to state-sponsored terrorism
The Senate approved and sent to the governor, legislation to begin the process for divesting Tennessee’s pension fund from having any holdings with companies that have substantial operations in nations determined by the U.S. State Department to be state-sponsors of terrorism. The bill, SB 3277, requires the state’s Treasurer to compile a list of the investments with ties to terrorist countries. Sponsors say it is a step towards implementing a policy to instruct the executive director to divest of those holdings.
Growing concern over genocide in Sudan and countries that sponsor terrorism has prompted state legislatures across the nation to consider actions to limit or eliminate state investments in firms doing business with such countries. Twenty-four states have already adopted policies of divestment from Sudan. Tennessee has a $32 billion pension fund which serves state employees, public school teachers, and many local government employees.
“This bill will give us a good start to begin this process of divesting from any countries that sponsor terrorism,” said Senator Randy McNally (R-Oak Ridge), who is sponsoring the bill with Senator Tim Burchett (R-Knoxville). “The federal government is also taking action on this matter. This legislation will help us progress towards complete divestiture of any questionable funds that have links to state-sponsored terrorism.”
“Divestiture empowers Tennessee to join the War on Terror as we stand up and say ‘not with our money,’” said Senator Burchett, who is also sponsoring the measure. “We should not tie our retirement fund to those nations who are committing genocide.”
The bill, which passed by a vote of 32 to 0, is also sponsored by Senator Jamie Woodson (R-Knoxville), Senator Beverly Marrero (D-Memphis), Senator Diane Black (R-Gallatin) and Senator Jim Tracy (R-Shelbyville).
Virtual Schools bill will provide educational resources and opportunities to many Tennessee students
The State Senate has passed the “Virtual Schools Act” to provide educational resources and opportunities to students by way of the Internet in a “virtual” classroom setting. The bill is sponsored by Senator Steve Southerland (R-Morristown) who said Tennessee is one of the last two Southeastern states to enact a virtual schools program. Southerland said the legislation will help local schools tap into funds available through grants and donations to provide start-up money for a virtual education program.
Under the bill, SB 2008, the State Board of Education would be responsible for developing policies and guidelines for the operation of virtual education programs. Local education agencies would be authorized to use BEP funds for implementation of a program in their schools. The proposal contains a reporting provision so that the governor and lawmakers can review progress made in the operation of the program.
“Virtual schools have many advantages and have the potential to affect a large number of students in a positive way,” said Senator Southerland. “It permits students in small, rural, or low-wealth school districts to take specialized courses that would ordinarily not be available to them. It meets the needs of those in special circumstances, like those in hospitals or recovering at home, dropouts who would like to get back in school, expelled students, or single parents, to name a few. It makes sense in our technological age to reach out to these students through this program. I am pleased this bill is advancing.”
The bill is pending action in the House Education Committee next week.
Bills in Brief
Tech Ed / troubled teens -- The creation of a program to help troubled students, age 14 and older, have access to valuable work experience and career exploration programs was passed by the full Senate and sent to the governor this week. The bill, HB 3233, permits minors under a juvenile court’s jurisdiction to be eligible for enrollment in a charter school and to participate in such a program at the court’s direction. The bill, sponsored by Chairman Woodson would allow for a “last chance” program for juveniles who have been in trouble with law, but who might be helped to find a new direction through innovative technological education.
Use of restraints – The full Senate has given final approval to a bill, SB 2609, that comes from the Joint Committee on Children and Youth addressing restraints of Special Education students. The bill makes it clear that if restraints are used, they are done so in a consistent manner and in very limited situations to calm the student or to lead them to safety. The measure, sponsored by Senator Diane Black (R-Gallatin), calls for local Special Education Associations to develop and provide training for the proper use of the restraints. The bill is pending action in the House Government Operations Committee next week.
Multi-Modal Transportation – Senator Jim Tracy (R-Shelbyville) pushed legislation through the full Senate this week to provide for greater coordination of transportation services through the Department of Transportation’s multi-modal transportation system. The measure, SB 2835, aims to provide efficiency between the various departments utilizing transportation services to stop duplication of efforts. “In these times of gas price increases, we need to sit down and work to bring efficient and effective service,” Tracy said. The bill is pending action on the House floor next week.
DUI fines -- Legislation that would increase DUI fines by $250 has been approved by State Senators this week. Part of the money would be kept in the local communities where the crime occurred for housing offenders, while the other half would be used for alcohol or drug addiction treatment. Senator Raymond Finney (R-Maryville), sponsor of the bill, said the increase in fines should act as a deterrent and provide funding needed to make “headway” in combating drunk driving. The bill, SB 85, is expected to provide $1.5 million to the state and $1.5 million to local governments. It is in the House Budget Subcommittee in the House of Representatives.
Workbooks / Home Schools – Senator Rusty Crowe (R-Johnson City) guided legislation, SB 2543, through the State Senate this week to exempt from state and local sales tax the retail sale of compact disks or digital video disks that are bound with or otherwise packaged with a textbook or workbook by the publisher. Currently, home school students who purchase a workbook with a disk are charged sales tax, even though current law exempts school books from the tax. The bill is pending action in the House Budget Subcommittee.
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