Tennessee lawmakers opened this election year legislative session Tuesday with the hot-button topic of an anti-abortion constitutional amendment as well as grappling with a tight state budget. The last two legislative sessions have begun with a closely watched special session on ethics in response to the Tennessee Waltz sting and the election of the first Republican lieutenant governor in 140 years.
On the budget, state Finance Commissioner Dave Goetz briefed House Finance Committee members on the state’s expected $150 million to $240 million budget shortfall this year. To partially address that shortfall, Goetz announced that the Bredesen administration was asking all state agencies except higher education institutions to save an additional $44 million this year. Goetz said he would leave the decision-making on how to save funds to individual department heads. The state’s budget shortfall has begun to surface as the economy has slowed down and volatile franchise and excise tax growth, which has driven record tax revenue growth in recent years, has declined.
As mentioned last week, the Senate is evenly divided 16-16 between Republicans and Democrats, along with one Independent. Spurred, however, by the mysterious illness of state Sen. Ophelia Ford, D-Memphis, which has caused long absences, some legislators want to pass a law to allow for a temporary replacement to be appointed. Under the bill being pushed by Democratic Leader Jim Kyle, D-Memphis, the absent lawmaker would file a request to appoint a temporary replacement. As expected, the Republican leadership has not warmed up to this idea, which in essence would give them control of the Senate in her absence.
Lottery scholarships may be used for more this year than just getting Tennesseans into college as Democrats in the state Senate want to make lottery scholarships an election year issue against Republicans if the GOP doesn’t follow their lead. The debate on scholarships will center on the requirements to obtain a lottery scholarship for higher education, currently a 21 on the ACT or a 3.0 GPA for a $4,000 HOPE scholarship, as well as the 3.0 GPA required to keep the scholarship after a student’s freshman year in school. Last session, state lawmakers discussed making serious changes to the state’s lottery scholarship program. On the last day of session, however, the House passed a lottery bill, but the Senate balked and did not vote on a proposal, leaving some Democrats angry.
Tennessee Legislation Service (c) 2008 M. Lee Smith Publishers
Friday, January 11, 2008 |
ALCOHOLIC BEVERAGES |
SB 0634*
HB 1750
(Full Text) |
Allows sale of alcohol on Sundays that are certain holidays. Allows retailers to sell alcoholic beverages on Sundays between the hours of noon and eleven p.m. and on Labor Day, the Fourth of July, and New Year's Day. (S: Marrero; H: Jones U.)
Senate Status: Failed in Senate State & Local Government 03/13/2007 for lack of a second.
House Status: Referred to House Local Government Subcommittee. |
SB 0680*
HB 0787
(Full Text) |
Cannot sell beer or alcohol near drug treatment facility. Authorizes counties and cities to adopt ordinance or resolution that prohibits sale of beer and alcoholic beverages within 2,000 feet of a drug or alcohol treatment facility. (S: Bunch; H: Campfield)
Senate Status: Referred to Senate State & Local Government.
House Status: Referred to House Local Government Subcommittee. |
SB 0795*
HB 1324
(Full Text) |
ID tags on beer kegs. Requires retailers to place identification tag on kegs containing beer that identifies the seller. Requires purchaser to pay a minimum deposit of $75 and to sign a registration form. Directs department of revenue to prescribe and supply forms for keg identification so that buyers and sellers can be held accountable for unlawful purchases. Violation is a Class C misdemeanor. (S: Burchett; H: Briley)
Senate Status: Referred to Senate State & Local Government.
House Status: Taken off notice in House Local Government Subcommittee 04/18/2007. |
SB 1221*
HB 1194
(Full Text)
Public Chapter (PDF) |
Special occasion license for certain events. Allows charitable, nonprofit, or political organization to obtain special occasion license for event in political subdivision that has approved sale of alcoholic beverages for consumption on the premises. Clarifies current law that specifies approval only of the sale of alcoholic beverages at retail on the premises. (S: Cooper J.; H: Harmon)
Senate Co-Sponsor: Haynes House amendment 1 rewrites the bill to authorize the Swiss Colony in Gruetli-Lager to give samples of homemade wine at its annual festival.
Senate Status: Senate passed 05/07/2007.
House Status: House 04/09/2007 passed with amendment 1.
Other Status: Enacted as Public Chapter 0203 (effective 05/22/2007). |
SB 1223*
HB 1529
(Full Text)
Public Chapter (PDF) |
Special occasion license for charitable organization. Permits alcoholic beverage commission to issue a special occasion license to certain 501(c)(3) organizations for selling wine in closed containers for consumption on or off premises. Allows any resident of Tennessee to donate wine to such organizations. (S: Cooper J.; H: Odom)
Senate Co-Sponsors: Haynes; Kyle; Norris; Marrero Senate amendment 1 requires organization to have $1,000,000 annual budget. Also requires donated bottles of wine to be properly registered with the department of revenue.
Senate Status: Senate 05/07/2007 passed with amendment 1.
House Status: House passed 05/24/2007.
Other Status: Enacted as Public Chapter 0342 (effective 06/05/2007). |
SB 1224*
HB 1755
(Full Text) |
Retail license holder may offer free samples of wine. Permits entities holding a retail license or a winery license to provide free samples of wine to consumers on the premises under certain circumstances. Subjects those who violate specified requirements while providing samples to suspension of license or a fine of up to $3,000. (S: Cooper J.; H: Jones U.)
Senate Co-Sponsor: Haynes
House Co-Sponsor: Tindell
Senate Status: Taken off notice in Senate State & Local Government 05/01/2007.
House Status: Taken off notice in House Local Government Subcommittee 05/09/2007. |
SB 1807*
HB 2120
(Full Text)
Public Chapter (PDF) |
Any wine made from 50 percent TN fruit - unlimited sale. Allows any winery selling wine made from 50 percent of any Tennessee fruit to sell it on premises without restriction on number of gallons sold where grapes were previously the only fruit under this provision. (S: Ketron; H: Litz) Senate amendment 1 allows any winery selling wine made from 50 percent of any Tennessee agricultural product to sell it on premises without restriction on number of gallons sold. Clarifies that bill's provision apply to Tennessee fruit only. House amendment 1 substitutes the word "grapes" for "agricultural products" and provides that gift, tourism, or wine related items may be sold on the premises of a licensed winery.
Senate Status: Senate 06/06/2007 concurred in House amendment 1.
House Status: House 05/29/2007 passed with amendment 1.
Other Status: Enacted as Public Chapter 0433 (effective 06/18/2007). |
SB 1821*
HB 1658
(Full Text) |
Registration period for beer manufacturers, distributors. Increases time period from 20 to 25 days for manufacturer or distributor of beer to register at the office of the commissioner of revenue. Broadly captioned. (S: Bunch; H: Mumpower)
Senate Status: Referred to Senate State & Local Government.
House Status: Caption bill held on House clerk's desk. |
SB 1879
HB 1119
(Full Text) |
Beer distributors' registration. Increases time period during which beer distributors must register with commissioner of revenue from 20 to 25 days. (S: Jackson; H: Buck)
Senate Status: Referred to Senate State & Local Government.
House Status: Caption bill held on House clerk's desk. |
SB 1977*
HB 1850
(Full Text) |
Wine direct shipper license. Creates wine direct shipper license to be issued through the alcoholic beverage commission that would allow an in-state or out-of-state entity to ship wine directly to consumers age 21 years or older in this state for personal use. (S: Stanley; H: Todd)
Senate Status: Senate State & Local Government deferred to 2008.
House Status: House Local Government Subcommittee deferred to 02/06/2008. |
SB 2072
HB 1899*
(Full Text) |
Sales of wine by certain retail food stores. Prescribes the creation of an additional class of licenses allowing the sale of wine at retail food stores. (S: Marrero; H: Kernell)
Senate Status: Failed in Senate State & Local Government 03/13/2007 for lack of a motion.
House Status: Referred to House Local Government Subcommittee. |
SB 2289
HB 1825*
(Full Text) |
Wholesaler's license expansion. Allows wholesaler's licenses to be granted in any municipality that has approved the sale of alcoholic beverages rather than only those with a minimum population of 100,000. (S: Burchett; H: Lundberg)
Senate Status: Referred to Senate State & Local Government.
House Status: House Local Government Subcommittee deferred to 01/30/2008. |
COMMERCIAL LAW |
SB 0850*
HB 1019
(Full Text) |
Processing fees charged for use of debit or credit card. Prohibits card issuer from charging a processing fee to retail merchants for the use of credit or debit cards that is more than seventy-five hundredths of one percent (0.75 percent) per transaction for all processing fees involving the use of a credit or debit card. (S: Kilby; H: Ferguson)
Senate Status: Senate Commerce, Labor & Agriculture deferred to 05/01/2007.
House Status: Taken off notice in House Utilities, Banking & Small Business Subcommittee 04/10/2007. |
TAXES BUSINESS |
SB 1394*
HB 1193
(Full Text) |
Increased tax on cigarettes and wine. Increases tax on spirits from $4.40 per gallon to $4.50 per gallon. Also increases tax on wine from $1.21 per gallon to $1.31 per gallon. Increases tax on cigarettes from 10 mills per cigarette to 1.5 cents per cigarette. (S: Crutchfield; H: Harmon)
Senate Status: Taken off notice in Senate Finance Tax Subcommittee 03/20/2007.
House Status: Referred to House Finance Budget Subcommittee. |
TAXES SALES |
SB 1802*
HB 1296
(Full Text) |
Exemptions for certain licensed wholesalers and retailers. Exempts certain sales of tangible personal property and services made by licensed wholesalers and retailers from a central warehouse or distribution point other than its principal place of business from sales and use tax. (S: Ketron; H: Sargent)
Senate Status: Referred to Senate Finance, Ways & Means.
House Status: Referred to House Finance Budget Subcommittee. |
SB 1974*
HB 2158
(Full Text) |
Alcoholic beverages sold for consumption on premises. Specifies that the burden of proving that a taxpayer's records are inaccurate for the purpose of projecting taxpayer sales of alcoholic beverages for on-premises consumption from the taxpayer's wholesale purchases shall be on the department of revenue, (S: Haynes; H: Briley)
Senate Status: Senate Finance, Ways & Means 06/11/2007 recommended. Sent to Calendar Committee. Set for Senate consent calendar 06/11/2007. Senate passed 06/11/2007.
House Status: Set for House Finance Budget Subcommittee 06/11/2007. Taken off notice in House Finance Budget Subcommittee 06/11/2007. |
