Governor Lee Signs Permitless Carry Legislation; Session To Enter “Budget Phase”  
 
With the Lee Administration’s budget amendment set to be unveiled early next week, and leadership targeting the first week in May for adjournment, the legislature is about to enter the phase of session when the state’s budget becomes the major focus.  The much-discussed federal coronavirus relief money that will be flowing to Tennessee is not expected be part of the budget, as states await guidance from the federal government as to how those funds are to be spent.  Along those lines, there has been talk of a special session sometime in the early fall to discuss allocation of the funds.  The increasing focus on the budget coincides with committee closures, as committees such as Senate Education, House Transportation, and House Agriculture and Natural Resources joined the ranks of closed committees this week.  By now, with most of the remaining non-finance committees on final calendars, any legislation that has not begun to move at this point is very likely shelved for the year. 

Governor Lee Signs Permitless Carry Legislation into Law

Yesterday, Governor Lee signed legislation into law to allow permitless carry for open and concealed carrying of handguns, making Tennessee the 19th state to become a “constitutional carry” state. The NRA-backed law will allow persons 21 and older and military members 18 and older to carry handguns without a permit, but it does not apply to long guns, which resulted in some gun rights activists criticizing the law as not going far enough. On the other side, some law enforcement officials expressed concerns of crime increasing as a result of the new law, and also argued that the law would make officers more vulnerable.  

The bill does expand the list of people that were not allowed to have a permit in the first place – such as felons and people with domestic violence offenses – and the new permitless carry right will not expand to persons with a stalking convictions, DUI convictions, or persons that have been committed by a court to a mental institution.   

The bill will take effect on July 1. While it is projected to cost the state $20 million, Republican leaders argue it could cost the state less.

Lee Voices Opposition to Vaccine Passports, Public Universities Will Not Require Vaccination 

This week Governor Bill Lee joined the quickly growing ranks of Republican officials that oppose the concept of “vaccine passports,” which in theory are a requirement of showing proof of vaccination to be able to travel or access businesses.  While no governmental entity in Tennessee has adopted the concept of a vaccine passport, the opposition to them has become a popular GOP policy position.  In a statement to reporters, Governor Lee said “I think vaccine passports are a bad idea. I do not believe governments should impose vaccine requirements or mandates in any way and I’m working with the Legislature to support legislation that backs that up.” The issue of vaccine passports arose too late in session to have legislation initially aimed at the topic, but the Lee administration and lawmakers have managed to amend existing legislation to address the concept.  SB858 (Bowling; R-Tullahoma) / HB 575 (Ragan; R-Oak Ridge), as amended by the Lee administration, provides that government cannot force private businesses to require vaccine passports as a condition to entry, leaving the decision on the issue of masks and proof of vaccine to the businesses themselves.  The legislation also reduces the power of county health boards by making them advisory only, as opposed to being allowed to act unilaterally.  The measure passed the House Health Subcommittee and Senate Commerce & Labor Committee this week. It will most likely be discussed on the Senate floor next week.

          The Governor also confirmed his opposition this week to the concept of public universities requiring students to receive the COVID-19 vaccine in order to attend classes.  While the University of Tennessee system initially indicated that it would require students to be vaccinated, it has since backed off of that position and now strongly encourages students to receive the vaccine, but nothing more.  Governor Lee also made it clear that while he opposed a vaccine mandate for public institutions, private universities – such as Vanderbilt, Belmont and Lipscomb — were free to make their own policies in that regard.   “I think that private institutions have decisions they make on their own. I think government agencies should not have vaccine requirements.”

Senate Committee Approves Legislation to Reform Life-Sentence Law

This week the Senate Judiciary Committee advanced bipartisan legislation that aims to dramatically reduce the time required of a person sentenced to life with the possibility of parole. Under current law, a person sentenced to life with the possibility of parole is not considered for release until they served 51 years in prison, which as proponents argue, essentially leads to life without parole. Moreover, Tennessee’s life-sentence law is double the national average. Bill sponsor Janice Bowling (R- Tullahoma), wants to reduce the sentence to 25 years, the same period of time that was used for this sentence prior to the 1994 Crime Bill. Senator Bowling noted those who received this sentencing were typically younger than 25 years old. Supporters of the legislation, who spoke in front of the committee, noted  that young people that receive this sentencing are prepared to return to society sooner rather than later, but due to the long period in jail, are unable to prove themselves as proper citizens. Although Governor Lee has touted goals of criminal justice reform, this legislation is not a part of his legislative package.

 Tax-Exemption Legislation Passes in House

Monday evening the House unanimously passed legislation to exempt certain COVID-19 related relief payments from the Tennessee excise tax. The deduction would exempt COVID-19 relief payments received between March 1, 2020, and Dec. 31, 2021, from the TN Business Relief Program, TN Supplemental Employer Recovery Grant Program, Coronavirus Agriculture and Forestry Business Fund, Hospital Staffing Assistance Program, Emergency Medical Services Ambulance Assistance Program, and the TN Small and Rural Hospital Readiness Grants Program.  This legislation is being proposed by Governor Lee in an effort to tackle the daunting economic impact the pandemic has had on the state, with proponents of the legislation arguing that businesses should not be taxed on the funds that they need to stay in operation. 

Looking Ahead  

Next week the Finance Committees will hear from the Department of Finance & Administration Commissioner Butch Eley, as he unveils Governor Lee’s proposed supplemental budget.  Meanwhile, back-room negotiations over potential budget issues are well underway, concerning potential changes to taxes such as the professional privilege tax on doctors, lawyers, financial advisors and other professions,  as well the aviation fuel tax. All of the final decisions on those and a myriad of other issues will emerge in the next few weeks. 

Have a great weekend.