Capitol Update – April 8, 2010
Legislation aims to reduce risk of child abduction
The Senate Judiciary Committee has approved legislation that aims to reduce the risk of child abduction in Tennessee. The bill, Senate Bill 3065, would provide courts with guidelines to follow regarding potential child abductions and to provide courts with appropriate measures to prevent these crimes.
In 2002, over 260,000 children were abducted. According to the National Center for Missing and Exploited Children, 78% of these children were abducted by a family member. The Center claims families going through custody disputes and divorce proceedings are the highest risk group for potential abduction.
The legislation would provide judges with information about abduction risk factors so that they can place appropriate restrictions to prevent abductions. Among factors included are whether the respondent has previously abducted or attempted to abduct the child; has threatened to abduct the child; has engaged in domestic violence; has refused to follow a child-custody determination; has strong family or cultural ties to another state or country; or other related factors. Using these guidelines the court must determine that there is a credible risk of child abduction, and then the court may consider preventative measures.
While courts currently have discretion to take many of these steps, some courts are not particularly familiar with the wide variety of both domestic and international abduction signs. This bill lays out a list of factors that should be considered to determine whether there is a credible risk that a child will be abducted in order to reduce this crime on the front end before great emotional or physical damage occurs to the child.
Legislation would be amended to expand state’s new TNInvestco Program
An amendment to legislation that would expand the state’s new TNInvestco Program was completed and filed this week, clearing the way for debate on the measure in the Senate Commerce Committee on Wednesday. The bill would expand the program by $40 million to include two additional participants in the innovative new program, who were selected last fall as alternatives if additional funds become available.
Small businesses provide 67 percent of first jobs and produce 55 percent of innovations. TNInvestco helps to make investment capital available to small, medium and start up businesses in Tennessee. The goal is to develop Tennessee’s entrepreneurial infrastructure, to bring additional capital into the state, to diversify the state’s economy and to create “anchors” or “clusters” of business innovation which can result in new companies being created in Tennessee.
In October, six investment firms were chosen to receive an allocation of $20 million dollars in gross premiums tax credits which are then marketed to insurance companies to create a pool of venture capital funds for investment in start-up and mid-stage companies in Tennessee. Under the plan, investors receive a tax credit against insurance premiums taxes that spread over years three through ten of the program. Even though the capital will be available for small businesses immediately, there are no tax credits for investors until 2012. Capital returned to the state through the program must first go to the General Fund, with any remaining funds to be deposited in the Rural Opportunity Fund which helps economically distressed counties grow jobs.
Tennessee Revenue Commissioner Regan Farr said he expects the program will pay for itself and provide additional money for the Rural Opportunity Fund. Farr said that Tennessee’s program is now a model for other states. “Every other state is a dollar for dollar subsidy program,” said Farr. “Our program pays for itself and puts money into the Rural Opportunity Fund. It also has more taxpayer protections.”
The Executive Director of the National Coalition for Capital has also called the program, “Truly one-of-a-kind model that directly addresses two critical economic development issues – growing small business and creating jobs. . . . and with this legislation, Tennessee has jumped ahead of the pack.”
Individual businesses interested in applying for the program may go to www.tninvestco.gov and complete an application form which will be submitted to each of the TNInvestco funds. In addition, businesses applying for the program will receive information about available help through the U.S. Small Business Administration, the Tennessee Department of Economic and Community Development’s Business Enterprise Resource Office for small and disadvantaged businesses and the Tennessee Technology Development Corporation.
Committees approve two resolutions concerning federal government
Two resolutions addressing matters coming before the U.S. Congress, including the passage of the federal healthcare bill last month, were approved this week in Senate committees. Senate Joint Resolution 897, which was approved by the Senate Judiciary Committee, urges Tennessee’s Attorney General to join a growing number of other states in challenging the unconstitutional provisions in the federal government takeover of the nation’s health care system. The resolution states the General Assembly shares the concern with other states that mandated insurance coverage for citizens within their boundaries violates the Commerce Clause and the Tenth Amendment of the U.S. Constitution.
Eighteen states likewise have pushed back against this federal healthcare mandate. Stateline.org, published by the Pew Center on the States, this week said, “The health care overhaul uses states as a vehicle for approaching universal health coverage, and what’s most important is the law’s Medicaid expansion. Requiring states to enhance Medicaid coverage will cost them $20 billion, according to the Congressional Budget Office, and cost the federal government hundreds of billions, in the next decade.”
Similarly, the Senate State and Local Government Committee and full Senate approved Senate Joint Resolution 715, which asks Congress to submit to the states for ratification an amendment to stop the practice of passing unfunded mandates and programs to the states, except in a situation of financial emergency as declared by a two-thirds vote of their membership.
The proposed amendment would prohibit the federal government from authorizing state participation in federal programs or services unless funding is guaranteed by the federal government for the full duration of the programs or services. If federal funds are not appropriated for the program or service, the law enacted or regulation promulgated would become null and void.
Senate Judiciary Committee approves Resolution
concerning election of the state’s Attorney General
By a narrow vote, Senate Judiciary Committee approved a resolution calling for an elected State Attorney General. Tennessee is the only state in the nation where the State Supreme Court selects the Attorney General. In six other states, the Attorney General is selected by either the Governor or the legislature.
The resolution, Senate Joint Resolution 698, would amend the state’s Constitution to provide for an election every four years. The amendment process requires approval by both the 106th General Assembly, currently in session, and the 107th, which will take office in 2011. If approved, the question would then go to voters in a statewide referendum in the year 2014.
In Brief
Unemployment – Tennessee’s seasonally adjusted unemployment rate for February 2010 was 10.7 percent, unchanged from the January rate according to newly released statistics. The United States unemployment rate for the month of February was 9.7 percent. County non-seasonally adjusted unemployment rates for February 2010 show that the rate decreased in 78 counties, increased in 10 counties and remained the same in seven counties.
Voter Registration – The Senate State and Local Government Committee has approved Senate Bill 194, which would require voter registration forms to carry a disclaimer that clarifies giving false information to register to vote carries a criminal penalty. The legislation also requires that the applicant affirm that he or she is lawfully in the United States.
Veterans / State Parks – The Senate has passed legislation to instruct the Division of Parks and Recreation to designate one day per year during which access to and use of all state parks would be free of charge for all veterans. The bill, Senate Bill 3212, includes use of campgrounds, and golf courses, as long as the veteran shows proof of their status.
Manhattan Project Historical Site / Oak Ridge – The full Senate voted this week to approve Senate Joint Resolution 761 urging Congress to include Oak Ridge in any new national park unit being considered in conjunction with the Manhattan Project Sites. The National Park Service recently proposed a Manhattan Project National Historical Park at Los Alamos, New Mexico, even though more than 60% of the Manhattan Project budget was spent at Oak Ridge. Currently, there are no national parks that preserve Manhattan Project resources or tell the story of the top-secret World War II project that created the world’s first atomic bombs.
Finance Group upgrades state’s credit rating – Tennessee’s credit rating has been upgraded from AA to AAA, according to a leading credit rating agency. Fitch Ratings, which made the upgrade, is a leading global rating agency which provides the world’s credit markets with independent credit opinions. Fitch, together with Moody’s and Standard and Poor’s, are the three nationally recognized statistical rating organizations designated by the U.S. Securities and Exchange Commission.
General Assembly / Mileage allowance – The full Senate has voted to approve Senate Bill 3300 to limit the reimbursement of in-state airline travel for members of the General Assembly to the mileage reimbursement they would have received if they had driven.
