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Nashville Area Chamber of Commerce

Legislative Update

May 19, 2006


The General Assembly plans to attempt to wrap up the session by May 25, one week behind schedule. Several bills are still scheduled to be discussed next week, in addition to the passage of the budget. Both houses made progress this week by passing Cover Tennessee, which is expected to be signed by the Governor in a matter of days.

 

SB 1116 / HB 2035

The Professional Fire Department Employees Negotiation Act

This bill  passed out of House Finance Budget Subcommittee on Thursday and went to the full House Finance, Ways and Means Committee to be discussed on Monday, May 22, at 9 a.m. This bill is strongly opposed by the Chamber and the greater business community and your legislators need to hear your voice. The vote on Monday will determine whether this bill moves on to the House floor. 

 

This is a poorly drafted bill that is anti-government employee, anti-local government and anti-taxpayer. It essentially gives employees of fire departments the right to self-organization, requiring local governments to recognize a union as the exclusive representative of all firefighters and fire service personnel within a department and extends the right of collective bargaining to such employees.

 

The result would be a landmark philosophical shift in Tennessee's laws governing employee/employer relationships. More time should be spent studying and comprehending the scope of the effects of the bill on firefighters and taxpayers alike. It will change the ways in which our local governments do business, change costs of local government, and have an impact on the delivery of services and the employment culture of our communities.

 

The Chamber must work to ensure we maintain the business-friendly environment that gives Tennessee a competitive advantage in business recruitment and retention. The increased and real likelihood of disruption of government services would do serious damage to that advantage.  We are requesting that you contact your member of the House Finance, Ways and Means Committee.   We need to continue to emphasize that this bill must be defeated. 

 

House Finance Way & Means Committee

Joe Armstrong, Stratton Bone, Rob Briley, Tommie Brown, Kent Coleman, Charles Curtiss, Eugene E. Davidson, Bill Dunn, Tre Hargett, Jere L. Hargrove, Michael Harrison, Beth Harwell, John Hood, Mark Maddox, Steve McDaniel, Mike McDonald, Bob McKee, Kim McMillan, Larry Miller, Doug Overbey, Phillip Pinion, Randy Rinks, Dennis Roach, Charles Sargent, Janis Sontany, Nathan Vaughn

SB 3120 / HB 3402

Tennessee Minimum Wage Act

The Tennessee Minimum Wage Act continues to move.  The anti-business bill  will enact a state minimum wage of $6.15 with penalties. It is scheduled to be on both the House and Senate Floor on Tuesday, May 23. 

 

The Chamber is opposed to this bill and we encourage you to contact your legislators in both the House and the Senate and ask them to oppose this "jobs killer" bill today.

 

Rumors circulated freely during the week that a deal was attempted that would have resulted in Republicans withdrawing an amendment (to the Cover Tennessee bill) dealing with medical liability limits in the Senate and Democrats would withdraw their minimum wage bill.

 

SB 3296 / HB 3450 

Eminent Domain

The eminent domain bill passed by the Senate 31-0 last week and is rescheduled for House consideration on May 23.  This compromise bill from the Senate is believed to have the support of most stakeholders and protects Tennessee from the impact of the U.S. Supreme Court Kelo decision without limiting the use of eminent domain for clear economic development uses.

 

Cover Tennessee

Cover Tennessee, Governor Bredesen's healthcare plan for the working poor, passed both houses on Wednesday, and is expected to land on the Governors desk in a matter of days. Bredesen introduced the plan in March that includes programs to help the working poor, children and people who cannot get insurance elsewhere. Its total cost comes to $300 million. This is a victory for Bredesen, as the republican controlled Senate showed some resistance and several amendments. Among those passed with the bill: An amendment limiting the plan to U.S. citizens, and an amendment offering tax incentives for small businesses who use the plan. An amendment that was designed to incorporate medical malpractice liability limits failed 16-13.

 

Music City Center

This week the General Assembly passed legislation that if signed by Governor Bredesen will help Nashville pay for the proposed new convention center, Music City Center.  The Chamber believes that a new convention center is essential if Nashville wants to stay competitive in the convention and tourism industries.  If signed into law, Metro would be able to collect most of the sales tax generated by the new facility and any connected hotels, parking lots, restaurants and retail developments that would not exist otherwise.  In addition, Metro would get to keep the difference in sales tax growth between a three square mile "tourism development zone" around the convention center and countywide growth average.

 

Music City Star

The Music City Star, Nashville's first commuter rail line, is set to launch on time in late summer this year carrying commuters from Lebanon to downtown Nashville.  The actual start date is expected to be announced within three weeks, now that transit officials have resolved a problem obtaining liability insurance, said W.T. Farquhar, the Regional Transportation Authority's Director.  RTA approved the resolution promising to raise the fees it charges Metro and other member governments, such as those in Mt. Juliet and Lebanon, if an accident occurs and a credit line must be drawn upon to pay insurance costs.  The Chamber continues to support the successful start up of the Music City Star as an important transit option as our region continues to grow.

 

Budget Amendement

The General Assembly is getting closer to reaching an agreement on its amendment to the Governor's proposed Budget for the next fiscal year. One component of the budget amendment would increase the original proposed budget to about $25.7 billion, making it the largest budget in state history. 

 

Neither House has agreed on how much to increase state employee salaries. There appears to be bipartisan support for raising the across-the-board pay increase for all state employees to 3%.  

Naifeh said Thursday  that the two houses are "extremely close" in agreeing on a budget."

 

There is a joint senate and house finance meeting on Sunday at 2:00 pm where it is speculated that all the disparities will be worked out.

 

Supreme Court Decision

On Monday the Supreme Court dismissed the plaintiff's challenge of Ohio's investment tax credit for lack of standing in the Cuno case. The original ruling by the 6th Circuit Court of Appeals in Cuno vs. DaimlerChrysler did tremendous damage to Tennessee and the rest of the 6th circuit's ability to fashion effective and competitive economic development incentives for new and expanding businesses.

 

James Weaver, Chamber Vice-Chairman of Government Relations, stated ""We are pleased that the 6th Circuit's decision was reversed and that state and local governments can continue to undertake economic development incentives based on what they believe is in the best interest of their communities. The Nashville Area Chamber of Commerce along with Chamber's of Commerce from across America spoke with one voice to the Supreme Court about the significant problems with the 6th Circuit decision and it seems our voice was heard."

 

Master Plan Released

The Nashville Sounds and developer Streuver Bros., Eccles & Rouse will present a master plan today (Friday) for the ballpark site and mixed use development on the Cumberland river, between the Shelby Street and Gateway bridges. The meeting, at the downtown public library, will be the public's first chance to view the plan and offer input. The Chamber has long supported this development and will share details as they are unveiled.

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