It's that time of the year again at the Tennessee legislature-the time of the year when we contemplate how to save the state budget. All too often, "saving" the budget and balancing the checkbook come at the taxpayers' expense. As legislators, we are often told the budget includes "no new taxes." But if we take the time to read the fine print, that just isn't so. The truth is that there are multiple tax and fee increases, and many of them will hit your wallet.

One that I am particularly concerned about is a significant increase in the Health Maintenance Organization (HMO) tax. An HMO is a type of managed care organization that provides healthcare coverage with certain doctors, hospitals, and other providers with which the HMO has a contract. Some HMOs in this state primarily serve TennCare enrollees, our state's Medicaid program. HMOs are crucial to many folks who rely on them for their health insurance.

The legislature is faced with raising the HMO tax by $136.6 million this year, almost tripling the current tax. The argument in favor of doing this is that it will pull down badly needed federal funds. But as always, it is conditional, and the devil is in the details. The state will reimburse HMOs that contract with TennCare in order to keep premiums down, but others who are not contracted with TennCare will be subject to a higher tax, thus passing it along to enrollees who will have to pay higher premiums.

This couldn't come at a worse time for some families. As families in our communities are looking for jobs, trying to make ends meet, and hoping to keep food on the table, we are going to make something that is vital to their survival-healthcare-too expensive for them to manage.

The state is proposing to add these state funds to TennCare in order to drawdown additional federal matching funds to pay the HMO tax increase. The state will fund $41 million to get $114 million in federal match in return.

I made a promise to my constituents during the election that I would not vote for a tax increase while representing them in the legislature. Coupled with the economic storm we are currently facing, tax increases are not going to get the economy back on track.

The way to save these families from going broke is not to tax them to death, but to allow them to keep their own money in their own wallets. We need to ensure that the services for which they are paying are not subject to exorbitant tax increases that will eventually be passed down to the consumer. We need to ensure that people are able to keep their head above water, not drowning under a tax obligation that will do nothing for them in return. It simply doesn't make sense to tax health insurance for those who have made the decision to pay for coverage. While a smaller percentage of private employees utilize HMO policies than other types, setting a precedent of taxing health coverage should be a cause for concern for those who have other types of insurance. I make this promise to you, my district, that I will continue to keep a watchful eye on the fine print.

Representative Evans, a fiscal conservative, serves the 66th District in the Tennessee House of Representatives. His district encompasses all of Robertson County. He was elected in November of 2008, and is a member of the House Health and Human Resources and State and Local Government Committees. You can contact Evans by e-mail at Rep.Joshua.Evans@capitol.tn.gov or by phone at 741- 2860.

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The legislature wrapped up business this week, after several late nights and marathon sessions. Lawmakers reached a consensus on the budget, bonding legislation, and charter schools at the eleventh hour. After a long week, House leaders passed House Joint Resolution 700, declaring the House stand in recess until January 12, 2010 at noon.

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After several weeks of wrangling, the House passed a balanced budget late Wednesday evening. The budget process moved somewhat slower this year after the United States Congress passed a stimulus bill sending nearly $6 billion to Tennessee over two fiscal years. With a constitutional deadline of June 30th approaching, lawmakers reached a consensus that eliminated some previously proposed tax increases that were of concern to some members.

The state faced a $1.5 billion shortfall after state revenues continued to decline each month. Republican leaders said the final version of the budget was not perfect, but was a true compromise between conservatives who wanted more reductions and some lawmakers who wanted to spend more to further proposed state projects.

The budget proposal originally presented by the Governor included bonding for bridge building and repair that concerned some lawmakers due to the amount of debt the state would incur. In addition, the Governor proposed deep cuts to the Department of Mental Health and the Department of Children's Services. Under the plan passed on Wednesday, some of these cuts were restored including $5 million in family support grants for mental health, $4.9 million in grants for school health and $4.5 million for the Department of Children's Services. The plan left intact the Governor's original reductions of 717 state jobs, mostly in the Department of Mental Health, although 200 layoffs were delayed until 2010 under the legislature's final product.

It has been the practice in recent years that when the General Assembly is out of session the Administration may ask for an expansion request, also called supplemental appropriations, which are recognized and acknowledged through a signature of the Senate and House Finance Committee Chairmen and sent back to the Administration who dispenses the funds. New language included in the bill clarifies that the Administration cannot submit such a spending request while the legislature is actually in session, but must include the proposed appropriations in the budget submitted by the Governor.

Republican lawmakers pushed to reduce the amount of bonding amid concerns that the debt service on the nearly $350 million would be problematic in the future. The bonding for bridges was instead spread out over four years, requiring reauthorization from the General Assembly each fiscal year.

Among the bonded projects are plans to purchase 1,700 acres for the development of a megasite in Haywood County in West Tennessee and a solar farm for a total of $40.3 million. The projects are intended to salvage a dire West Tennessee economy by bringing new industry to the area. Another $157 million in bonds will be issued to pay for several new buildings at state universities, including a new Education and Behavioral Science Building at Middle Tennessee State University and a new library at the University of Tennessee Chattanooga. Despite the increase in the amount of bonding the state has traditionally done, Tennessee will still have the distinction of having the lowest per capita debt in the nation.

House members also insisted a provision be included that directs the Governor to work with the commissioners of the various state departments to find another $55 million in reductions if tax receipts fall short for the month of June. Overall, the final product of the budget is $35 million less than what the Governor originally proposed.

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Major education reform that strengthens Tennessee's public charter school law and will expand educational opportunities to students statewide was among the final bills approved by the General Assembly as the 2009 session wrapped up this week in Nashville. The legislation widens eligibility, clarifies funding and addresses rules for renewal of the public charter schools. The Republican sponsor praised the General Assembly for the passage of the legislation, pointing out that some of the state's most successful schools are public charter schools.

Previously, Tennessee had one of the most restrictive public charter school laws in the nation. The bill also puts into place a process so the best practices gained from the "laboratories of learning" are shared with traditional school programs. The sponsor explained that a one-size fits all strategy for education shortchanges students and their families, adding that a public charter school this year graduated its first class with a 100 percent graduation rate, with every student headed to college.

Charter schools are public schools that are given flexibility to operate without the constraints of some of the rules and regulations normally imposed on traditional schools. In exchange for this flexibility, they are held accountable for performance through a charter, which is an agreement between the local education agency (LEA) and the charter school.

There are four main components of the new public charter school legislation:

• Eligibility - Currently, public charter school enrollment is limited to failing students and those from failing schools. The legislation permits "at-risk" children to attend public charter schools in those systems that have 14,000 or more students and three or more schools which do not meet adequate yearly progress benchmarks. In addition, school boards can opt by a two-thirds vote to allow students who are deemed "at-risk" to be eligible to attend.
• Caps - Currently, public charter schools are limited to 50 statewide, with a cap of 35 in Memphis and 20 in Metro Nashville. The bill clarifies that converted charter schools do not count against the cap. In addition, the number of charter schools allowed was raised to 90 statewide.
• Renewal process - Currently, the charter agreement between the local school system and the charter school is renewed every five years. This measure would change the renewal period from five to ten years, with an interim report every five years. It also establishes the required documentation needed during the renewal process.
• Funding - Currently, a public charter school receives the per pupil expenditure of state and local dollars. Although it mentions appropriate federal dollars, interpretations vary from one local school system to the next. This legislation defines the state and local charter school facilities' funding responsibilities and clarifies the local school systems must allocate all appropriate federal funds, including Title I funds to the charter schools.

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In the waning hours of session, House members passed two pieces of legislation that aim to toughen crime laws. With several current and retired law enforcement officers serving in the legislature, the General Assembly focused on legislation that toughen the state's DUI and meth laws.

House Bill 284 aims to make it significantly harder to acquire the necessary ingredients used to make methamphetamine. If more than 20 grams of certain items used to make meth are purchased during one month, the manufacture of meth is presumed.

In addition, House Bill 919 strengthens the state's DUI laws. Currently, state law provides a graduated series of punishments for DUIs based upon the number of prior convictions that an offender has. A person is not considered a repeat DUI offender if 10 or more years have elapsed between the conviction and any immediately preceding DUI conviction. If, however, an offender has been convicted of DUI within 10 years of the present violation, then they are considered a multiple offender.

Under House Bill 919, if a person is arrested nine years and eleven months after their first DUI-but doesn't go to trial until ten years and one month after the first DUI-the offender is still considered a multiple offender. The legislation clarifies that the 10 year period is based off of the arrest, and not the conviction.

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The House of Representatives considered this week legislation that would require international building codes be met for new home construction. The legislation would not affect every county in the state, as some counties already have more stringent requirements than what is stipulated in the bill. In addition to traditional building codes, the legislation also includes required energy conservation standards that would apply to new home construction.

Lawmakers debated the bill at length on the House floor, where they shared concerns ranging from increasing the cost of new homes to taking away from the autonomy of local governments. Proponents of the measure said the legislation would make homes safer and more energy efficient, which ultimately result in cost savings.

After several hours of debate, the legislation was amended to allow for local governments to opt out of the requirements. Each time a new county commission is installed the body will have to pass a resolution by two-thirds in order to opt out. The final version of Senate Bill 2300 passed with an 82 to 12 vote.

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House Joint Resolution 149 was read for the third time last week in the House, meaning it is ready for final consideration by the House, likely to happen early in the 2010 session. If passed by a 2/3 majority of the General Assembly, the constitutional amendment will appear on the ballot in a 2010 voter referendum. The constitutional amendment gives Tennesseans the right to hunt and fish.

The resolution states that, "hunting and fishing are a vital part of this state's heritage and economy and should be preserved and protected." The sponsor has said that Tennessee has always enjoyed hunting and fishing as a leisure activity, and the amendment was necessary to clarify that Tennesseans have a constitutional right to pursue wild game that cannot be infringed upon the legislature, courts, or local authorities.

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A bill that would bar some local entities from requiring nutritional labeling on menus has passed both the House and Senate. The legislation comes as other states, municipalities and cities are passing or considering laws that mandate chain restaurants put calories and other nutritional information on menus.

Lawmakers arguing in favor of the bill said that mandating chain restaurants to put certain nutritional information on menus places an unnecessary burden on restaurant owners in an already struggling economy and creates an atmosphere that is unfriendly to business owners. They also said that often, the laws are selective, targeting only large restaurant chains.

The legislation was amended to prohibit non-elected bodies from making the decision to require nutritional information on menus. It also specifies that if the federal government passes legislation requiring menu labeling and the federal action specifically authorizes state departments to enforce such action, then the Tennessee Department of Health will be the department that is primarily responsible for the implementation and supervision of the new requirements.

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House members successfully passed an immigration measure in the House that the caucus has been working on for several years. House Bill 1354, co-sponsored by Representative Joshua Evans, aims to curb illegal immigration by prohibiting local governments from enacting "sanctuary" policies, or policies that make it difficult for law enforcement and other local government employees to comply with federal immigration law.

After the legislation passed with an overwhelming 80- 8 vote, House leaders announced that they were pleased with the passage of the bill, which they said was a pre-emptive strike to guard against the adoption of sanctuary policies by cities in the state, and curb policies that protect illegal immigrants.

A "sanctuary city" is a term given to a city in the United States that follows certain practices to protect illegal aliens. Thirty-eight cities in the U.S. have been recognized as sanctuary cities, but many sources have identified over 200 city or county governments nationwide as having practiced such policies.

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Legislation that aims to give home schoolers equal footing with public school students was signed into law by the Governor late last week. Senate Bill 433 requires the state, along with local governments, to recognize home school and church-related diplomas, giving them the same rights and privileges extended to those who earn public school diplomas.

Having long been advocates for home schoolers, many lawmakers felt the move was needed to put home schoolers on equal footing with public school students. The sponsor of the legislation argued throughout the process that earning a home school diploma should not be diminished simply because the mode of teaching is different than that of a traditional public school.

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Lawmakers were notified of the Governor's veto of House Bill 962, which would allow legal carry permit holders to carry firearms into restaurants, provided they did not drink alcohol. The bill had originally passed by over two-thirds in both chambers of the legislature.

The Governor stated in his veto message that "guns and alcohol do not mix." The House sponsor fired back, responding that the bill prohibited carry permit holders from drinking alcohol and carrying a firearm, much as it was illegal to drink and drive. The sponsor said the legal carry permit holders of this state had proven themselves to be responsible individuals, and the bill was simply an attempt to expand their Second Amendment rights.

Thirty-six states have some form of restaurant carry, including seven of the eight states that border Tennessee. The General Assembly exhaustively debated the subject, with a supermajority determining that legal carry permit holders were responsible individuals who should be able to protect themselves. With both chambers having overridden the Governor's veto, the bill will now become law on July 14, 2009.

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The House has approved legislation, after a lengthy debate, that reforms the selection process for the state's appellate and Tennessee Supreme Court judges. Legislators have debated the issue for nearly 16 weeks in the committee system, hearing testimony from dozens of attorneys, former judges, current judges, and scholars. The Judicial Selection Commission, a component of Tennessee's current plan for appointing judges, is set to expire next month.

The bill, Senate Bill 1753, sets up a new nominating commission with fewer attorney members and less special interest input. Lawmakers indicated they would still pursue a separate measure that would call for a Constitutional Convention to let the people decide whether or not they want to elect the judges or opt to continue a system of nomination by a commission, followed by a retention vote from voters.

Tennessee's Constitution says judges must be "elected by the qualified voters of the state." The lengthy debate in the legislature has focused on whether or not the selection process with a retention vote meets that test, with detractors saying that it blatantly violates the constitution.

The legislation provides for a 17-member Judicial Nominating Commission that would have at least 10 attorney members. After being appointed through this process, the judges would stand for approval by the voters who could decide whether or not to "retain" or "replace" them, a move that proponents say is more clean than the current 'yes' or 'no' on the ballot regarding the retention of judges.

If voters decide to replace a judge, an interim judge would be appointed by the governor until the next election. At that point, the people could decide who would fill the slot through a popular election, which is the same process by which the state's trial judges are currently selected.

The bill also bans lobbyists or employers of lobbyists from serving on the Nominating Commission. Finally, the legislation provides public access to every aspect of the nominating process, making the process more transparent than ever before.

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• Two new Republican nominees to the State Election Commission were confirmed last Wednesday in a joint legislative session of the General Assembly. The move to place the two members, Kent Younce of LaFollette and Judy Blackburn of Morristown, on the Commission honors a long-standing state law to give the majority party in the Tennessee General Assembly a one vote edge on the State Election Commission.
• House Bill 250, co-sponsored by Rep. Evans, passed the House last week, and creates an offense for any owner, occupant, or other person having a lawful right to the exclusive use of property to knowingly allow an underage adult to consume alcoholic beverages, wine or beer on such property.
• House Bill 804 seeks to allow a parent that has been granted court-ordered visitation with their minor child or children who has been called to active duty military service, to petition the court for the temporary assignment of that parent's visitation rights to a legal or biological relative or relatives. The petition must state the relative that the parent is requesting to maintain contact with the child during the parent's absence and shall include a proposed visitation schedule with such relative. The bill, having now passed both the Senate and the House, is now on its way to the Governor for his signature.

Tennessee Facts...

• When Tennessee became a state in 1796, the total population was 77,000.
• Andrew Johnson, who hailed from Greeneville, held every elective office at the local, state, and federal level, including President of the United States. He was elected alderman, mayor, state representative, and state senator in Greeneville. He served as Governor of Tennessee, Military Governor of Tennessee, and was elected to Congress and then to the U.S. Senate. He served as Vice-President of the United States until the assassination of President Lincoln, which elevated him to the Presidency.
• Hattie Caraway (1878-1950) was born in Bakersville, Tennessee (Humphreys County) and became the first woman United States Senator when her husband died and the seat was passed to her. She won re-election several times, before losing a primary and being appointed to the Employees' Compensation Commission by President Franklin D. Roosevelt.
• Nashville's Grand Ole Opry is the longest continuously running live radio program in the world. It has broadcast every Friday and Saturday night since 1925.
• Coca-Cola was first bottled in 1899 at a plant on Patten Parkway in downtown Chattanooga after two locals purchased the bottling rights to the drink for $1.00.
• Cumberland University, located in Lebanon, lost a football game to Georgia Tech on October 7, 1916, by a score of 222-0. The Georgia Tech coach was George Heisman-the man for whom the Heisman Trophy is named.

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The House stands in recess until January 12, 2010.

Click to View - Upcoming Committee Meetings Will Be Posted Here

207 War Memorial Building
Nashville, TN 37243

rep.joshua.evans@capitol.tn.gov

Phone: 615.741.2860

513 Memorial Blvd, #312
Springfield, TN 37172

joshua@repjoshuaevans.com

Phone: 615.948.1376