Legislative Update 4-1-25

Bills Targeting English Proficiency Fail in House and Senate Committees

On Tuesday March 18, the House Transportation Subcommittee voted down a measure that would require driver’s license exams to be taken only in English.  HB556/SB1373, sponsored by Rep. Kip Capley (R-Summertown) and Sen. Bo Watson (R-Hixson), would require driver’s license written exams be taken in only English and ban any use of translation dictionaries or interpreters for individuals taking the test.  Currently, the Tennessee Department of Safety offers the exam in five languages—English, German, Japanese, Korean, and Spanish.

Committee members raised concerns about the potential negative impact on Tennessee businesses that rely on a workforce of drivers, many of whom are immigrants or not fluent in English. The bill ultimately failed on a 3-5 vote.

On Wednesday March 19, similar legislation was heard in the Senate Transportation Committee. Sen. Janice Bowling (R-Tullahoma) presented SB492, which would essentially give officers the authority to assess the English language skills of truck drivers. Specifically, the bill authorized officers to issue an out-of-service order to a driver with a CDL—temporarily prohibiting the driver from operating on public roadways—if the officer determined that the driver is unable to read or speak English. After lengthy deliberation, the Senate committee failed to advance by receiving only three votes in favor in the nine-member committee. Opposition to the bill echoed the concerns raised by House committee members regarding Rep. Capley’s legislation. Sen. Paul Bailey (R-Sparta) spoke out in opposition of the bill, noting that many drivers in the trucking industry come from diverse backgrounds and may speak broken English. Bailey emphasized that passing the legislation could result in the removal of many drivers from their positions, which would significantly harm the country’s workforce.

The MOTION Act Clean-Up Bans Booting Entirely in Tennessee

SB1068/HB972 is the MOTION Act clean up that deals specifically with the management of towing and vehicle immobilization in Tennessee. The legislation makes it clear how abandoned vehicles, parking enforcement, towing, and related penalties should be handled. The bill extends booting prohibitions to all vehicles in addition to tractor trailers. It also tightens up the notice requirements for towing companies. Additionally, the legislation requires the Department of Revenue to create an electronic motor vehicle portal for storing and accessing information related to abandoned and immobile vehicles. This portal will allow law enforcement agencies and garagekeepers to input data about such vehicles for public access.

There has been some pushback from pro-booting individuals and companies, but the bill has made its way through many House committees with little opposition from members and has passed the Senate 31-0.

Governor Lee Unveils Budget Amendment

As the legislative session enters its final weeks, the first major signal of adjournment arrived with the release of Governor Bill Lee’s 2025–2026 budget amendment—a key step in the three-part budget process. (1) The Governor unveils his initial proposed budget in conjunction with the State of the State address in early February; (2) The administration unveils the Budget Amendment in late March/early April, which complements and makes adjustments to the initial budget; and (3) Legislative leadership works in conjunction with the administration to finalize the budget—often a complicated negotiation—the result of which is then presented to the General Assembly for approval. This year, there is a $343 million update to the Governor’s original proposal of a $58.4 billion budget, marking the second phase in Tennessee’s three-part budget process. The amendment introduces new allocations, adjustments, and clarifications that set the stage for final negotiations in the coming weeks. The legislature’s one constitutionally required task is to pass a balanced budget, and the final passage of the budget often signals that adjournment is just days away.

Finance and Administration Commissioner Jim Bryson presented the amendment to the House and Senate Finance, Ways, and Means Committees on Tuesday, March 25th, describing it as one of the simplest amendments to understand. He referred to it as “plain vanilla,” emphasizing that it is straightforward with few surprises. In his opening statements, he pointed out one key difference in this year’s budget: the inclusion of line items passed during the special session. These special session expenditures account for $495,519,700 of the $59.76 billion total proposed budget amendment.

In the past, the state has used bonds to expedite projects, though it has been some time since this method was utilized. This year, the Lee Administration decided to put bonds back on the table to fast-track major initiatives, such as infrastructure projects. The budget includes nearly $1 billion in general obligation bonds, increasing debt service payments from 1.36% to 1.76%. This approach allows the state to fund large-scale infrastructure projects while committing to repay the funds over time.

Education funding continues to be a major line-item, with more than $600 million allocated to K–12 education this year. This includes $278 million from this year’s special session, plus $244 million in new Tennessee Investment in Student Achievement (TISA) allocations. The proposal also includes $20 million in new school safety grants and $20 million for charter school facilities. However, the amendment also reflects nearly $40 million in reductions to public school funding. These cuts stem from two factors: a $15.9 million reduction based on updated enrollment data from school districts and a $23.7 million decrease tied to the expiration of a three-year “hold harmless” provision in the Education Savings Account (ESA) program, which previously reimbursed districts for students transferring to private schools.

Also included in the budget amendment is funding for a new statewide Indigent Representation Program that is described to be a completely new way of looking at attorney compensation moving away from the outdated hourly rate model that has long caused challenges in providing legal services to those who cannot afford them. This new initiative, funded at $17 million ($13 million recurring and $4 million nonrecurring), seeks to improve efficiency, enhance legal outcomes, and has the potential to save the state money in the long run. Under this model, the Administrative Office of the Courts would contract directly with local attorneys, especially for complex cases, rather than paying hourly rates. This change also includes a more objective process for determining indigency and expands support for both criminal defense and civil representation, such as guardian ad litem and juvenile cases. As Sen. Ken Yager (R- Kingston) noted during the Senate Finance, Ways, and Means Committee, “the new approach is expected to provide better legal services and create a more equitable payment system for attorneys.”

Other highlights in the budget amendment include the introduction of Artificial Intelligence (AI) into state services, with $10 million allocated to implement AI capabilities. On the infrastructure front, $25 million is allocated for general aviation, while $100 million is earmarked for a regional water project linking the Cumberland River to the Columbia area, helping to ease pressure on the Duck River.

The budget must now run the legislative gauntlet over the next few weeks, including being subject to considerable negotiations and refinement.