Senate Finance Committee approves legislation
to maintain Tennessee’s dedicated road fund

Tennessee’s road needs were debated on Capitol Hill this week in two key committees of the State Senate. The Senate Transportation Committee voted to send Governor Bredesen’s budget plan to incur $350 million in general obligation bond debt to the Finance Committee without recommendation for passage and with a request the Finance Committee look at other avenues for funding bridge repair needs. In the meantime, the Senate Finance Committee approved a bill that maintains Tennessee’s dedicated road fund by prohibiting the diversion of gas tax money through the state’s budget or appropriations bill.

The bill approved by the Finance Committee, SB 1309, would require authorization through separate legislation to divert gas tax revenues that are dedicated for road funds. The measure would put Tennessee back in the position it was prior to 2004 and restore the appropriate checks and balances to ensure that any diversion of the funds are fully meted out through the normal legislative process. Currently, the dedicated road fund can be diverted through a line in the appropriations bill.

The Department of Transportation only spends the funds that are available through its dedicated revenues, gas taxes and highway user fees, and federal funding.  Called “dedicated funding,” since users pay for the roads through gas taxes and fees, a portion of the gasoline tax also goes to cities and counties in Tennessee to fund local roads.  This dedicated revenue system was put into place when the gas tax was raised to fund the road program.  Over the last several years, $280 million in road funds have been funneled from the gas tax to meet other state government expenditures.

Governor Bredesen’s proposed budget calls for the state to incur $350 million in general obligation bond debt to repair structurally deficient bridges, a major departure from Tennessee’s current “pay-as-you go” system for building roads. The last road debt payment was paid in 1987 after Governor Lamar Alexander retired a mounting transportation debt and embarked on an aggressive road-building program. Tennessee has continued to build roads on a debt-free basis since that time.

Complicating the issue has been a shaky Federal Highway Trust Fund that has caused grave concerns about the state’s ability to keep up with transportation needs. According to Transportation Commissioner Gerald Nicely, the federal government has reneged on the amount of money promised to Tennessee over the past four years.

Many legislators are also concerned about the ability to contract with qualified builders for the road and bridge repairs due to influx of projects as a result of the stimulus funds. In fact, the Finance Committee signed off on an expansion request plans to contract the stimulus money coming into the state as a result of the American Recovery and Reinvestment Act which will be let on May 8th and June 12th.

The state receives $600 million each year in revenues from the gas tax. The request for $350 million in general obligation bonds is in addition to the $572 million the state will receive over the next two years in federal stimulus funds.

Texting while driving bill receives final Senate approval

The full Senate voted 22 to 6 on Thursday to approve legislation that would ban “texting while driving.” The bill, SB 393, prohibits sending or reading text messages on public roads and highways while the driver is operating a motor vehicle in motion.

Over two-thirds of those under the age of 24 who were polled have admitted to sending text messages while driving. Studies show that drivers of any age who text behind the wheel swerve out of their lane, with many running into head-on traffic.

Law enforcement officials say the bill specifically banning texting will give them the tools to enforce banning this form of distracted driving. Under the legislation, a violation would be a Class C misdemeanor punishable by a fine of $50.00.  The legislation also prohibits the Department of Safety from assigning a point value for the driver’s license suspension or revocation for violation under the proposed law.

Senate Judiciary Committee approves two bills protecting crime victims

The Senate Judiciary Committee approved two strong crime bills this week aiming to protect victims of crime. The first bill, SB 1531, would increase the minimum age of the Class D felony offense of child abuse and child neglect or endangerment from six to eight years or age or younger. Under present law, it is an enhancement to Tennessee’s child abuse and child neglect law if the victim is six years of age or less. This bill would enhance penalties against those who commit child abuse and child neglect in cases where the victim is eight year old or younger.

The second bill, SB 1684 creates the Statewide Automated Victim Information and Notification System to provide victims of crime with access to timely and reliable information about the custody status of offenders in county jails. This bill authorizes victims of crime and other concerned citizens to register for immediate notification of an offender’s release, transfer, or escape. The information kept in the notification system would be available 24 hours per day via telephone, Internet and electronic mail. The system would be funded by money collected from a $1.00 litigation tax on criminal charges. Additionally, this bill authorizes funding of the system by grants, donations, gifts, and appropriations.

Bills in Brief

Home health care — The Senate General Welfare, Health and Human Resources Committee has approved legislation to allow home health nurses or aides to accompany a recipient outside the home during the course of delivery of prior-approved services. The bill, SB 851 allows aides or nurses to accompany their patients to such places like the doctor’s office or church. Currently services are banned unless they are in a hospital or at home. Additional visits or hours of care would not be approved for coverage, and services would be limited to what the recipient would be entitled to if provided exclusively at the recipient’s place of residence.

Restaurant Menus – The Senate General Welfare, Health and Human Resources Committee also approved a bill, SB 1092, to ban local governments or their boards from imposing requirements on restaurants to provide nutritional information on menus. The concern is that some communities will impose different standards and significantly increase costs to small restaurant owners. Adopting a county-by-county approach to the disclosure of nutritional information increases costs to restaurants, many of whom are small business owners.

Utilities / Gas Companies — Members of the Commerce Committee have approved the Natural Gas, Conservation, and Annual Rate Review Act. The bill allows share- or investor-owned gas companies in Tennessee to implement a decoupling mechanism regarding the rate billed to customers that would separate their fixed cost from that which is passed through the product they sell. Currently when customers get their bill it is volumetrically priced, meaning the fixed price is incorporated in with the cost of the product. Decoupling would allow these companies to implement a conservation program to encourage energy efficiency with their customers. The bill also allows them to opt into an annual rate review mechanism which would be a streamlined rate review process.

Animal fighting – The full Senate voted 27 to 0 to increase the penalty for being a spectator at an animal fight. Under current law, the penalty for being a spectator at a dog fight is a Class B misdemeanor, and for other animals, it is a Class C misdemeanor, which only carries a $50 fine. This bill, SB 537, increases the penalty for spectators at all animal fights to a Class A misdemeanor. Animal fighting has other crime implications like gambling, drugs, and organized crime. Other states like North and South Carolina have driven animal fighting, like cock fighting, to Tennessee due to increased penalties imposed in their states.

Veterans / Education – A study of tuition relief program for veterans would be established under legislation meeting the approval of the Senate Education Committee this week. The bill, SB 1693, requires the Tennessee Higher Education Commission (THEC) with the assistance of the Tennessee Board of Regents (TBR), the University of Tennessee (UT), and the Tennessee Student Assistance Corporation (TSAC), to look at programs that have been enacted in other states and report back on the feasibility of establishing such programs in Tennessee.

Safe Haven / Infants – The full Senate has voted to add fire, police, and EMS stations to the list of locations that newborns can be taken by distressed mothers without fear of prosecution for abandonment. Currently, the infants must be taken to a hospital, 24-hour walk-in clinic, Health Department, or birthing center. This legislation, SB 1714 adds fire, police, and EMS stations as well. The goal of the safe haven legislation is to set up a system that focuses on saving the baby’s life rather than the mother’s liability.

# # #

This entry was posted on Friday, April 24th, 2009 at 9:07 am and is filed under Capitol Updates.
 Email This Post