Capitol Hill Update 2/19/12

 Leading Lawmakers Usher Retailer Nexus Legislation through House

 
Bill Will Solidify Jobs Agreement Reached Between Governor Haslam, Legislative Leaders, and Amazon Officials
 
In an effort to codify the agreement reached last year between Governor Bill Haslam and officials from Amazon.com Inc., Representative Kevin Brooks (R—Cleveland) pushed legislation through the House today that will help Tennessee develop and maintain 3,500 jobs in the State.
 
The bill, House Bill 2370, is a Haslam Administration bill and was made a top priority by House Majority Leader Gerald McCormick (R—Chattanooga). Leader McCormick asked Brooks, who also serves as Assistant Majority Leader, to usher the legislation through the General Assembly.
 
HB 2370 simply establishes requirements for determining whether certain business affiliates have a physical presence in this State sufficient to establish nexus for sales and use tax purposes. Nexus is a legal term referring to connection or jurisdiction within a State.
 
In the case of Amazon, this legislation will ensure the online retail giant will pay Tennessee sales taxes if a national online sales tax law is not passed by the federal government by 2014. Under the bill, the new Amazon fulfillment centers located across the State will meet the requirement for establishing nexus in Tennessee.
 
“Simply put, this is a jobs bill for Tennessee,” stated Brooks. “It ensures a partner like Amazon and similar companies will participate in our system and it keeps all businesses on a level playing field. Most importantly, it ensures 3,500 positions are going to be created and remain here in Tennessee. I look forward to working with my colleagues in the Senate to get this to the Governor’s desk as soon as possible.”
 
McCormick added, “Representative Brooks has done a fine job getting this important bill through the House. Representative Watson has consistently fought for Amazon jobs. Obviously, it’s a priority for Governor Haslam and our Republican Majority. I believe it is vitally important we have consistency across the State and this bill does just that.”
 
The legislation awaits action in the Senate. The full text can be viewed here.
 
 
Legislators’ Effort to Fight Human Trafficking Scores First Legislative Victory
 
Bill to Create Civil Recourse for Victims of Human Trafficking Passes House
 
The effort to combat human trafficking received a major boost today with passage of an important bill in the Tennessee House of Representatives. If the bill becomes law, victims of human trafficking offenses would have a civil right of action for actual damages, compensatory damages, punitive damages, injunctive relief, any combination of these, or any other appropriate relief.
 
Representative Jim Coley (R—Bartlett), a strong advocate for the rights of victims, celebrated the passage of House Bill 2489—a personal priority for Coley. The legislation passed with unanimous, bipartisan support.
 
“This is a strong first step for what I expect will be several measures to battle human trafficking,” stated Coley. “I have laid out a robust agenda that focuses on ways to strengthen the hands of law enforcement and gives victims a better ability to prosecute those who would perpetrate such deplorable things.”
 
Under the legislation, "Trafficked person" is defined as a victim of a human trafficking offense, which is the commission of any act that constitutes the criminal offense of:

(1) Involuntary labor servitude;
(2) Trafficking persons for forced labor or services;
(3) Trafficking a person for sexual servitude; or
(4) Promoting the prostitution of a minor.
 
The bill also extends to loved ones of the victim. A legal guardian, family member, representative of the trafficked person or court appointee may represent the trafficked person or the trafficked person's estate if deceased. If the trafficked person dies as a result of a human trafficking offense, a surviving spouse of the trafficked person is eligible for restitution.
 
“Human trafficking is a scourge that affects all of Tennessee. We sit squarely in the middle of the United States and we are blessed to be a tourist destination because of our natural scenery and unique industries. But those attributes also attract some of the worst kinds of individuals who are essentially enslaving people for profit. That has to end. I believe, with this action today, we are on the road to doing just that,” concluded Coley.
 
The legislation can be accessed by clicking here.
 
Tennessee Achieves Remarkable Debt Service Savings
 
 
The State of Tennessee yesterday sold $449,070,000 of General Obligation Refunding Bonds. The goal of this refinancing was to achieve debt service savings over the life of the debt equal to 4% of the present value of the refunded bonds. The State surpassed this goal, achieving 7.46% present value savings totaling $34,031,900. The savings were realized proportionally over the life of the refinanced debt.
 
With this refinancing, the total savings generated this fiscal year are $37,319,500 (including the refinancing that was sold last fall that generated $3,287,600.)
 
Some highlights about this sale are:
 
  • The bonds were rated Aaa, AA+, AAA by Moody’s Investors Service, Standard and Poor’s and Fitch respectively.
  • The bond issue was the third largest deal this week in the nation and the largest General Obligation Bond financing calendared for this week.
  • The bonds were sold at a negotiated sale led by JP Morgan Securities.  Two additional firms with public finance offices in Tennessee participated as co-managers.  Six firms with public finance offices in Tennessee participated in the Selling Group.
  • Over $100,000,000 in orders were taken from retail customers with Tennessee retail customers receiving the highest priority.
  • In several maturities our bonds were in such demand that the yield on the bonds was reduced prior to accepting the pricing
  • The savings will occur in fiscal years 2015 – 2027.
 
Equal Access to Public Property Act Passes House
 
Bill Protects Freedom of Assembly Rights for All Tennesseans, On Its Way to Senate
 
A bill designed to allow for equal access to all publicly-owned property for all Tennesseans is on its way to the Tennessee Senate.
 
House Bill 2638, authored by Representative Eric Watson (R—Cleveland), easily passed the House of Representatives today by a vote of 70-26. The legislation prevents people from living on publicly-owned property not designated for residential use. Additionally, it prohibits individuals using publicly-owned property from posing a health hazard or threat to the safety and welfare of others. The bill now awaits consideration in the Senate which is expected as early as next week.
Upon passage of the bill, Watson remarked, “This bill is important because it restores the entire public’s right to utilize all public property around the State—not just a single group. It ensures the property paid for by all Tennesseans is able to be utilized by all Tennesseans.”
Some critics contend the bill targets only one group and does not affect all Tennesseans. Watson, who serves as the Chairman of the House Judiciary Committee, is quick to counter those assertions.
“On the contrary, I’d say this bill relates to the rights of every Tennessean. Every parcel of State property belongs to every Tennessean, not just a select group who want to commandeer it for themselves,” he said. “I believe, with the passage of this legislation, public property will be fully restored for the use of every member of the public.”
 
Watson concluded, “Simply put, this bill restores the free speech and assembly rights of all Tennesseans and it is my job to protect those precious constitutional rights.”
 
The text of the legislation can be accessed by clicking here.
 
 
In Brief
 
Additional Tort Reform Measure Passes House—On Thursday, legislation to add an additional exception to the limitations on noneconomic, punitive, and exemplary damages that were passed as part of the Tennessee Civil Justice Act of 2011 passed the House. Under present law, compensation for any noneconomic damages suffered by an injured plaintiff may not exceed $750,000 for all injuries and occurrences that were or could have been asserted, unless the injury or loss is catastrophic in nature, in which case the amount of noneconomic damages awarded may not exceed $1 million. Additionally, punitive or exemplary damages in a civil action may not exceed an amount equal to the greater of two times the total amount of compensatory damages awarded or $500,000. The measure is sponsored by Rep. Vance Dennis (R—Savannah).
 
“Jaclyn’s Law” Receives Bipartisan Support—Rep. Glen Casada (R—Franklin) authored legislation that provides immunity for first responders.  Termed “Jaclyn’s Law” after a victim lost her life in a similar instance, the bill applies first responders use forcible entry to enter premises to render emergency medical assistance when responding to 911 calls. The legislation passed with a bipartisan, unanimous vote.
 
TEAM Act Moving through Committees—The bill to revise Tennessee’s current civil service law is advancing in the Legislature. There has been much focus given to the main provisions of the bill that allow for on-the-job performance to be given more weight than seniority as it pertains to promotion of State employees. The Majority Leader has indicated there will be an amendment to revise the legislative language. Additional Committee action is expected in the next two weeks.
 
Voter ID Measure Quickly Moving in House—Legislation to allow persons age 60 and older to vote absentee upon request, instead of age 65 and older, was sent to the House Finance Ways and Means Committee this week. The bill gives senior voters more flexibility and voting opportunities at the ballot box.