SB1692/HB1731 the “MOTION” Act is the TTA 2024 legislative package that continues to move through the legislature.  The legislation sponsored by Senator Jack Johnson and Representative Jake McCalmon modernizes the current towing laws and addresses storage fees, notices, creates a state portal, etc.  It also addresses the predatory booting practices in Tennessee. The booting of trucks and trailers with USDOT numbers and plates will be illegal. Other major changes are included. 

Tennessee Franchise Tax Passes the Senate Floor, Set for House Debate Next Week

Last week, the Senate heard discussions on the $1.9 billion dollar franchise tax break, a bill aimed at providing refunds and tax breaks to certain businesses within Tennessee. SB2103, also known as the Tennessee franchise tax bill, sparked extensive deliberation during the floor session. Senators Ken Yager (R-Kingston) and Bo Watson (R-Hixson) passionately advocated for the bill’s approval, while Senators Jeff Yarbro (D-Nashville) and Heidi Campbell (D-Nashville) voiced strong opposition. Following extensive debate, SB2103 passed the Senate, receiving  party-line-votes of Aye-25 and No-6.

On the other hand, progress on the House side has been limited. HB1893 is currently scheduled to be heard in the House Finance Ways and Means Subcommittee on Tuesday, April 2^nd.

Bill to Bar Local Governments from Reappointing Expelled Lawmakers Passes House Floor

A bill aimed at preventing a local legislative body from reappointing lawmakers who were expelled from the legislature due to disorderly conduct successfully passed the House Floor. This legislation, sponsored by Representative Johnny Garrett (R-Goodlettsville) in the House and Senator Ferrell Haile (R-Gallatin) in the Senate, was filed in response to the prompt reappointments the Nashville and Memphis City Councils made last April of Reps. Justin Jones (D-Nashville) and Justin Pearson (D-Memphis) following House expulsion proceedings. Jones and Pearson, who became known nationwide as two members of the “Tennessee Three,” were expelled from the House for disorderly conduct in a largely party-line vote, only to be promptly reappointed to their House seats by their respective city councils. On Monday night, Democrats proposed four separate amendments on the floor, but all failed to pass.

Although House Republicans showed their support with a 69-22 party-line vote on Monday night, testimony from legal counsel during the State Government Committee indicated potential constitutional concerns with the bill. Lt. Governor Randy McNally (R-Oak Ridge) has also expressed reservations about the bill, citing possible constitutional issues. Earlier this month, McNally stated, “while I am aware of the serious issues the bill attempts to solve, I may have concerns about the constitutional questions the legislation presents.” He commented that he will be able to make a better assessment of the bill once the bill starts moving through the Senate committee process. Despite the bill’s success in the House, it was deferred to Summer Study in the Senate, which means the upper chamber will not take up the measure this year.

 Gov. Lee’s School Choice Initiative Advances in House and Senate

Governor Lee’s plan to expand the Education Savings Account (ESA) Program continued its advance this month in both the House and Senate, although the versions differ widely due to amendments attached to the bills in the respective chambers. Both versions of the bills passed out of the Education Committees. The Senate amendment was added to the bill and passed on a 7-1 party-line vote. The bill includes highlights such as allowing students to attend school in any district that has available space even if they are not zoned for it, as well as new testing requirements. The Senate bill moves on to the Finance, Ways & Means Committee.

Meanwhile, the House Education Administration Committee deliberated the House version of the bill for nearly five hours. Throughout the hearing, lawmakers questioned Education Commissioner Lizzette Reynolds — a proponent of school choice — primarily to address budgetary and financial concerns. Eventually, the committee voted to advance the House bill with the recommendation of two amendments, by a 12-7 margin. On March 18, the bill passed out of the House Government Operations Committee with a positive recommendation and now moves on the House Finance, Ways & Means Subcommittee.

Despite lengthy and intense debates in both chambers, disagreement persists regarding the final version of the bill. Currently, neither the Senate nor the House seems willing to compromise on their respective versions of the legislation. However, the Senate proposal, with a fiscal impact of $95 million this year and $333 million at full capacity, and the House proposal, with a fiscal impact starting at $398 million and jumping to $425 million in the program’s second year, will have different implications for the State of Tennessee’s budget depending on which version is ultimately adopted.

Wagner Confirmed to Tennessee Supreme Court

Governor Lee’s nomination of Shelby County Circuit Court Judge, Mary L. Wagner, to the state Supreme Court was confirmed Monday, March 11th by the General Assembly in an overwhelming fashion, with the House vote of 94-3 and the Senate 32-0.  Wagner, 39, fills the seat soon to be vacated by retiring Justice Roger A. Page in August.

Wagner, a graduate of the University of Colorado and the University of Memphis Cecil C. Humphreys School of Law, was appointed in 2016 and has served in her position as Shelby County Circuit Court judge since 2018.  Prior to her current position, Wagner worked for the Memphis law firm Rice, Amundsen and Caperton.

Wagner received widespread praise throughout the vetting process, and – as was the case with Justice Sarah Campbell – some insiders believe that she bears watching as a potential future nominee to the United States Supreme Court.  Indeed, the vote to confirm Wagner was nearly unanimous.

Wagner is Governor Lee’s third Supreme Court appointment and is one of five on the five-member court. She received a standing ovation from the joint chamber following the vote.  

TTA Day on the Hill and legislative reception will take place on Wednesday, April 10. We looking forward to TTA members visiting with members of the General Assembly to address concerns of the industry but to also thank them for supporting our legislative initiatives this year. 

State of the State Recap: Governor Lee Emphasizes Education Freedom, Maintaining Foundation of Past Accomplishments

Governor Bill Lee delivered his sixth State of the State address to a packed House Chamber on February 5th. As is customary, the Governor used the speech as a vehicle to set out his legislative priorities and spending proposals for the year, signaling what will be the front-burner issues for the 2024 session. Unlike recent years where the state’s revenues greatly exceeded budgeted projections, this year the state’s revenue is lagging substantially behind projections; thus, with the exception of an educational freedom bill to expand the use of educational vouchers across the state and a handful of other proposals, several new initiatives were either comparatively low cost, or utilized savings realized in prior years. 

The Governor reiterated that he has three years remaining in office and emphasized that there is much still to be done. He also stated his belief that Tennessee’s job is to “fortify that which has been built over the years, and to remember the work it took to get here.” Along those lines, the Governor said the state’s firm foundation is possible due to its legacy of fiscal responsibility. And while he described the state’s revenue growth as returning to normal, Governor Lee stated that the “new normal” is still 40% higher than three years ago.

The speech was also memorable for its distractions, as a number of protestors and hecklers in the gallery often made it difficult to deliver the speech in a normal rhythm. The hecklers seemed to argue with every point that the Governor made, but despite the distraction, no one was removed from the gallery. At one point the Governor indirectly addressed the protestors, stating that “civility is not a weakness.” That line drew a lengthy standing ovation from most of the General Assembly.

Governor Touts Tennessee’s Economic Production, Rural Recovery, and Justice Reforms

Governor Lee provided some noteworthy statistics that underscored Tennessee’s recent accomplishments. Among other things, he noted that Tennessee is one of six states in the Southeast that are contributing more to America’s GDP than the entire northeast, including New York, New Jersey, Massachusetts and Pennsylvania. He also argued that the emphasis on rural Tennessee is paying off, noting that Tennessee has gone from 15 distressed counties down to eight in just five years, and Haywood County now leads the state in capital investment – most of which is directly attributable to Blue Oval City, a massive new Ford plant that is being built in Stanton. Taken together, Tennessee’s poverty rate is now below the national rate. Lee also proudly noted that Tennessee now has the lowest recidivism rate in state history, crediting criminal justice reforms in the process.

Specific Highlights and Proposals

Perhaps the biggest highlight of any State of the State is the Governor’s specific legislative and budget proposals. Those included the following:  

1. Education Freedom: A plan to expand school choice by allowing more parents to determine what is best for their child’s education – thus allowing parents to decide where their children go to school and what they learn – by expanding the Educational Savings Account program that was instituted during Lee’s first term. While the specifics of the plan have yet to be unveiled, the concept has already proven controversial among many public-school advocates. Governor Lee reiterated that public schools are invaluable – noting the historic investments in public education to the tune of more than $1.8 billion during his term as Governor – and promised another significant investment in the school funding formula this year, as well as a plan to help public schools retain the best and brightest teachers in their districts. Over the shouts of protestors, Governor Lee stated that “our responsibility is to the student and to the family, not to the status quo.” That line drew a standing ovation from most in the chamber.
2. Franchise Tax Overhaul: A necessary simplification to Tennessee’s franchise tax, which has been in place for 90 years. The administration recently became aware of a need to change the law – and a strong risk of engaging in litigation where the state would likely be unsuccessful – and opted to resolve the issue now to allow the state to move forward. The total price tag of the overhaul is expected to be approximately $1.2 billion in immediate one-time costs and an additional $410 million in recurring funds over the next few years. 
3. Fiscal Responsibility/Rainy Day Fund: As an indication of his administration’s continued commitment to fiscal responsibility, Governor Lee announced a $20 million investment in Tennessee’s Rainy Day fund. While the investment reflects a significant reduction from investments made in recent years, the deposit will increase the state’s reserves to over $2 billion.
4. Protecting Tennessee’s Music and Artists from AI Impersonation: Legislation to combat AI technology that allows users to impersonate musical artists and create fake works, appropriately entitled the “Elvis Act,” will be the first of its kind in the United States, and perhaps a blueprint for other states.
5. Children and Social Media: A proposal to give parents tools to oversee their child’s social media activity and require social media companies to get parental consent for minors to create their own accounts in Tennessee.
6. Rural Health: Building off recommendations from the Rural Health Task Force that was commissioned in 2021, a $208 million investment in rural healthcare over the next five years – the single largest investment in rural healthcare in state history – but to come at no added cost to Tennessee taxpayers due to savings realized from Tennessee’s TennCare waiver.
7. Mental Health Support: Also from the shared savings from the TennCare waiver, investing more than $100 million over five years in behavioral health and substance abuse support.
8. Statewide Permitting Reform: A proposal to institute statewide permitting reform to accelerate building times and streamline construction.
9. Safety: Funding to hire 60 new state troopers, on top of the 200 new troopers that were previously funded.
10. Conservation: The establishment of a Farmland Conservation Fund, to partner with Tennessee farmers who voluntarily place a conservation easement on their land, giving farm families the ability to protect their farmland for future generations.

Following the gubernatorial address, on Feb. 6 the House and Senate Finance Committee hearings featured Finance and Administration Commissioner Jim Bryson, who provided more granular detail on the Lee administration’s $52.6 billion budget, including specific spending proposals and the cost involved. A few of the budget highlights that did not make it into the Governor’s speech include a $207 million proposal that will create eight new state parks, improve water quality and grow Tennessee’s outdoors industry; a $24 million investment to address aviation infrastructure needs; and a $500 million investment in capital maintenance and infrastructure.

A 2024-25 fiscal year budget overview can be found here. 

U.S. Congressman Mark Green Will Not Seek Reelection

U.S. Representative Mark Green, from Ashland City, has recently announced his decision to not seek a fourth term. While Green’s decision marks a significant turning point in his career, there have been a few indicators suggesting retirement as a possibility, hence speculations about a potential gubernatorial run in 2026 by Green.

Prior to Green’s political career he was a doctor and a retired U.S. Army Major. He embarked on his political journey at the Tennessee General Assembly, where he served as a State Senator from 2012 to 2018. He then transitioned to the U.S. Congress in 2018 to represent Tennessee’s 7th Congressional District. Currently, Green holds the position of Chairman for the House Homeland Security Committee, a testament to his rapid ascension through the ranks during his three terms in Washington D.C.

Emphasizing his commitment to his constituents, Green has focused on passing legislation aimed at enhancing border security and ensuring accountability within the Department of Homeland Security under Secretary Mayorkas, both of which he has successfully accomplished during his term. Reflecting on these achievements, Green believes that now is an appropriate time to transition back to his local community. He stated, “I have come to realize that our fight is not here within Washington; rather, our fight is with Washington’s bureaucracy.”

Memphis Judge Tapped to Fill Upcoming Tennessee Supreme Court Vacancy

Earlier this month, Governor Bill Lee announced the appointment of Mary L. Wagner to fill an upcoming vacancy on the Tennessee Supreme Court. Wagner, a graduate of the University of Colorado and the University of Memphis School of Law, currently serves as a circuit court judge for Shelby County in the 30th Judicial District. She was appointed circuit judge in 2016 by then-Governor Bill Haslam and won election in 2018 and 2022. Prior to becoming a judge, Wagner was an associate attorney at Rice, Amundsen & Caperton, PLLC and taught as an adjunct professor at the University of Memphis School of Law.

Wagner was amongst two other Memphis judges that were selected as finalists for the upcoming Supreme Court vacancy—the other two were Court of Criminal Appeals Judges, Camille McMullen (52) and J. Ross Dyer (51). Wagner pointed out in an interview that while she may be relatively young at 39 years old, she has a wide variety of experiences and skills, maintaining that age was not a relevant variable of her ability to fulfill the position.

With the retirement of Justice Roger A. Page, if confirmed by the Tennessee Legislature, Wagner will fill Page’s seat after his retirement on August 31, 2024. 

Potential Candidates to fill 7th Congressional District Seat

Congressman Mark Green (R-TN7) made national headlines when he surprisingly announced that he would not seek re-election to his congressional seat this fall. Green, a physician from Ashland City and a prominent member of Congress, ignited a firestorm of speculation about who would succeed him in representing the district, which also includes parts of Nashville. Previous state Rep. Brandon Ogles (R-Franklin) is the only person who has confirmed their intentions to run for the seat thus far. However, Republican activist Mark Moore, from Cheatham County, expressed his interest in a bid via social media. When questioned about the possibility of running for Green’s vacant seat, one likely favorite – State Sen. Bill Powers (R-Clarksville) — responded through social media that he is “honored to serve as state senator and currently has no plans to run for Congress.”