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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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211 Commerce Street, Suite 100 | Nashville, TN 37201
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