Senate passes budget as legislature prepares to close 2012 Session/ Tax cut bills approved

This past week the State Senate passed a balanced state budget and major legislation this attacking prescription and synthetic drug abuse as the legislature prepared to close the 2012 legislative session. The legislation to curb drug abuse in Tennessee is among a list of key bills passed by the General Assembly this year.

The budget is typically among the last measures to be considered by the General Assembly before adjourning. The appropriations bill approved by the Senate spends $31.1 billion, nearly $1 billion less than the almost $32.1 billion budget estimated for the current budget year. The proposal also incorporates $50 million in tax cuts for Tennesseans.

The Senate and House of Representatives passed different versions of the appropriations bill, which placed the measure in a Conference Committee to work out the differences between the two versions. The full Senate will return on Monday to take up the conference committee report.

• The budget as adopted by the Senate includes:
• $60 million increase in the Rainy Day fund and over $50 million in reduced taxes
• $160 million in salary improvements, including a 2.5 percent raise for all employees, $30 million for salary market adjustments and $5 million for step raises
• $59 million for economic development
• $80 million for public safety and corrections programs
• $547 million for capital outlay, including $335 million for higher education, the first significant investment in 5 years
• Restores $125 million of the core services that were scheduled to go away July 1

Separate tax cut legislation also advanced through the Senate as members voted to phase out the state’s inheritance tax and reduce the sales tax on food. Senate Bill 3762 takes the first step in a four-year process to phase out the state’s inheritance tax, sometimes referred to as “the death tax.”

Similarly, Senate Bill 3763 would reduce the state portion of the sales tax on grocery food from 5.5 percent to 5.25 percent, with the goal of lowering it to 5.0 percent in three years.

Legislation to curb drug abuse lead list of major bills in 2012 session

Several bills to curb drug abuse passed the Senate this week. One key measure requires doctors or their designees to check Tennessee’s Controlled Substance Monitoring Database before initially prescribing an opioid or benzodiazepine substance or at every six months thereafter for the same episode of treatment. Senate Bill 2253 comes after a Tennessee Drug Diversion Task Force report showed 56 percent of patients who receive opioid prescriptions have filled another opioid prescription within the previous 30 days.

Currently, Tennessee’s database includes basic patient information, the identity of the prescribing practitioner, the pharmacy that filled the prescription, and the name, amount and form of medication that the patient received.  Although the database requires doctors, pharmacists or their designees to report, there is currently no requirement that they check the database before prescribing or dispensing scheduled drugs to patients.

This legislation requires pharmacies to collect a patient’s prescription information and report that information to the database within seven days. Currently it must be reported within 40 days. Finally, the bill enhances penalties for doctor shopping from a Class A misdemeanor to a Class E Felony when it involves 250 or more pills. The stiffer penalties allow law enforcement officials to go after dealers who distribute the drugs illegally.

Synthetic Drugs — Two key bills attacking the growing problem of synthetic or “designer” drug abuse are now on their way to Governor Bill Haslam for his signature after passage by State Senators this week. Senate Bill 3018 takes another approach to attack synthetic drug abuse by defining it to capture any analogues, which are chemical compounds having a similar structure to the banned drug. This legislation creates a new Class D felony offense for a person to knowingly manufacture, deliver, dispense or sell a controlled substance analogue. The proposal elevates penalties upon a second or subsequent violation to a Class C felony. If the violation involves the delivery, dispensing or sale of a controlled substance analogue to a minor, the offender will be punished one classification higher than the punishment for delivering, dispensing or selling to an adult. The bill also creates a new Class A misdemeanor offense for a person knowingly to possess or casually exchange under a gram of a controlled substance analogue.

Likewise, Senate Bill 2280 makes it a Class E felony to possess, use or sell synthetic substances intended to imitate controlled substances.  Synthetic drug products are sold under the guise of “bath salts” or “plant food” but are comprised of a class of chemicals perceived as mimics of cocaine, LSD and methamphetamine.  The effects of synthetic drugs include impaired perception, reduced motor control, disorientation, extreme paranoia and violent episodes.  Although the General Assembly has passed laws previously to ban the chemical compound used in synthetic drugs, unscrupulous chemists continue to modify molecules in the organic compound to avoid prosecution.  Law enforcement officials have testified that by the time a new synthetic drug is discovered and banned, another altered form of the compound has taken its place.

Prescription Drug Abuse / Hospital Employees — The State Senate approved a House amendment and sent to the Governor legislation to authorize the Controlled Substance Database Committee to provide a hospital or mental health facility an employee’s prescribing information. Under current law, a hospital’s Quality Improvement Committee exists to evaluate the safety and quality of care provided to patients as well as qualifications and competency of healthcare providers in a confidential and privileged environment. Senate Bill 2407 would give hospitals more information about any potential for prescription abuse by their own employees.

Drug Test / Welfare Recipients — In similar action to prevent drug abuse, State Senators voted 24 to 9 favor of legislation which calls for drug testing for welfare applicants. The bill would apply to testing for illegal use of marijuana, cocaine, methamphetamine, amphetamine and opiates, such as morphine, with the possibility that other drugs could be added later by rules set forth under the bill. Senate Bill 2580 applies to adult recipients of the Temporary Assistance to Needy Families (TANF) program.

The drug testing plan includes a referral process for any applicant who tests positive to be referred to an appropriate treatment resource for drug abuse. If the applicant is otherwise eligible during the treatment period, he or she can receive TANF benefits during the treatment period for up to six months. If the applicant refuses treatment, he or she would be disqualified. After six months of disqualification, the applicant can reapply, but upon testing positive again he or she would become ineligible for one year.

Under the federal Welfare Reform Act passed in 1996, states were authorized to conduct drug testing for TANF recipients. The implementation would occur in phases over a two-year period under the bill. The Department of Human Services would develop appropriate screening techniques and processes to establish reasonable cause that an applicant for TANF is using a drug illegally. The applicant could then be required to undergo a urine-based drug test to be conducted by a drug testing agency. If the applicant tests positive, the drug test would have to be verified by a confirmation test before TANF benefits could be denied. No drug for which an applicant has a current valid prescription could be used as a basis for denial of benefits.

State Senate approves and sends to Governor Haslam legislation strengthening penalties against repeat domestic violence offenders

Legislation which strengthens penalties against those convicted of domestic violence was approved on final consideration today, sending the bill to Governor Haslam for his signature. The “Repeat Domestic Violence Offender” bill creates a new offense for repeat domestic violence offenders and prescribes mandatory jail time and enhanced fines for those who have committed serious bodily injury.

Senate Bill 2251 provides at least 30 days in jail and a fine ranging from $350 to $3,500 for those convicted of a second offense for domestic violence when bodily injury occurs. Upon a third or a subsequent conviction, the mandatory jail time would increase to 90 days and a fine ranging from $1,000 to $5,000. In counting prior convictions, the bill provides for a ten-year look back provision for domestic violence due to serious bodily injury similar to the one used in the state’s drunk driving law.

The bill is part of a public safety package presented to the legislature by Governor Haslam. It was recommended by a Public Safety Subcabinet Working Group composed of more than 10 government agencies which held meetings with over 300 law enforcement leaders.

Unemployment Insurance Accountability Act of 2012 passes Senate

The Senate unanimously passed the Unemployment Insurance Accountability Act of 2012 (Senate Bill 3658) this past week.

The Unemployment Insurance Accountability Act of 2012 strengthens the definition of employee misconduct to ensure that those who have been fired for cause no longer receive benefits. The act also enacts new work search requirements for unemployment beneficiaries. Those collecting unemployment benefits must provide detailed information regarding contact with at least three employers per week or must access services at a career center. The act also provides for random audits to ensure the integrity of beneficiaries’ job searches.

Governor Haslam signs TEAM ACT into Law

This past week Governor Haslam signed the TEAM Act (Tennessee Excellence Accountability and Management Act) into law. The purpose of the bill is to establish a system that will attract, select, retain and promote the best applicants and employees in Tennessee state government. It also aims to give agencies greater flexibility in personnel management and would increase customer-focused effectiveness for citizens who access a wide variety of state government services.

A report released by the Comptroller’s Division of State Audit suggested Tennessee’s civil service system was inefficient, unfair and outdated. The system was also identified as cumbersome and inefficient by all departments in the Top to Bottom Review report ordered by Governor Bill Haslam.

The TEAM Act calls for two divisions of state service: preferred service and executive service.  Executive service employees remain “at-will” as they currently serve.  Preferred service replaces the traditional “career service” designation and preserves a streamlined appeals process along with other considerations.

Some of the changes to the state employment system made by the legislation include:

• A new hiring system that requires agencies to define minimum qualifications and to identify specific knowledge, skills, abilities and competencies required for each position.
• Veterans and their spouses will receive interview preference for both appointments and promotions, and if there are two candidates with equal qualifications, knowledge, skills, etc., preference will be given to the veteran.
• An overhaul of the state’s performance evaluation system to provide for performance standards and expected outcomes that are Specific, Measurable, Achievable, Relevant and Time sensitive (SMART goals).
• In the event of a layoff, job performance becomes the primary consideration followed by seniority, abilities and disciplinary record, which also must be considered.
• A new nine-member board of appeals to conduct a streamlined, three-step appeals process.
• And a mediation process will also be established by the Department of Human Resources through rules.

Senate passes legislation reworking state’s Cyberbullying Law

The Senate has approved legislation that revises legislation passed last year regarding cyberbullying through the use of electronic devices. Senate Bill 2556 removes the words “frighten, intimidate, or cause emotional distress” as applied to a victim in the state’s current cyberbullying law and replaces them with the word “threaten.” Those who are found guilty under the cyberbullying law would be subject to 30 days of public service work.

The bill requires each Local Education Agency (LEA), at the beginning of the school year, to provide teachers and school counselors with a copy of the bullying policy and its implementation process, information on prevention and strategies to address bullying and harassment when it happens, as well as relevant training on the issue. Teachers and parents would also be given information relative to bullying prevention and programs to promote awareness of its harmful effects. Finally, the bill requires annual reports regarding the number of bullying cases brought to the attention of school officials and the manner in which they were resolved or the reason they are pending.

Issues in Brief

Tennessee Business Corporation Act — Final approval was given to a measure that updates and modernizes the Tennessee Business Corporation Act modeled after changes made to the Model Business Corporation Act (MBCA). The MBCA template is used by many states when compiling their own statutes governing corporations and has been adopted in 31 other states. The legislation passed this week makes several conforming changes to rules that govern the formation, operation and termination of corporations in Tennessee, including the rights of directors, electronic notification, annual corporate shareholder meetings and requirements regarding officers. The changes in Senate Bill 3070 modernize the act and help Tennessee maintain a competitive business environment that will draw new jobs to the state.

Resolutions / Appellate Judges — The State Senate voted to approve on third and final reading Senate Joint Resolution 710, which calls for appointment of state appellate judges in a manner similar to the federal model by allowing Tennessee’s Governor to appoint judges to the Supreme Court and state appellate courts for eight year terms subject to confirmation by the General Assembly. The resolution must was subject to approval by a simple majority of the legislature this year after three readings but must receive a two-thirds majority of both chambers in the following General Assembly. Then it would go to a vote of the people in 2014.

Severe Child Abuse / Parents — State Senators voted in favor of Senate Bill 2741 that would allow a parent to file a petition with the court to terminate the parental rights of the other parent if he/she has been found by a criminal court to have committed severe abuse of a child. Currently, a child’s parent is not allowed to petition for termination of parental rights under any circumstances. This legislation would provide a new ground that in the case of commission of incest, aggravated sexual exploitation or severe or aggravated child sexual abuse, rape, or sexual battery that termination of parental rights can be initiated.

Domestic Violence / 911 — Legislation passed this week that would make it a Class A misdemeanor offense for an individual to interfere with or prevent another person from placing a telephone call to 911 to request emergency assistance. Senate Bill 2836 aims to help victims of domestic violence who try to receive emergency assistance but are blocked in those efforts. The measure applies to those who block a person from requesting assistance from law enforcement, medical facilities or other agencies or entities that provide assistance to that individual. It also makes it a Class A misdemeanor to intentionally render unusable a telephone that would be used for the purposes of obtaining aid.

Dual Credit Courses — A bill to ensure students will receive college credit for dual credit courses that they complete successfully in high school was approved by the State Senate this week. Senate Bill 2809 would require public postsecondary institutions to accept for credit any dual credit course developed by another public postsecondary institution in collaboration with a high school if the student passes the course and a college proficiency test. The legislation specifies credit would only be provided when the student enrolls in college.

Scrap Metal — The Senate passed legislation this week giving the Department of Commerce and Insurance more enforcement authority over its scrap dealer registration program. The legislation makes it a misdemeanor for a seller to sell the metal in violation of Tennessee law unless the metal is in its original and undamaged condition. If the value of the metal, in addition to any costs for repairs, exceeds $500, it is a felony punishable only by a fine. Senate Bill 2895 also makes it a misdemeanor for the dealer to knowingly or intentionally violate the law, unless the metal is in its original and undamaged condition. If the value of the metal, in addition to any costs for repairs exceeds $500, it is a felony punishable only by fine. Finally, the bill will make it an offense for someone to engage in the business of buying scrap metal without being registered. The bill is designed to reduce the problem of scrap metal theft, which has skyrocketed in recent years. These metals have value when sold to a scrap metal dealer who arranges for the metal to be melted and reshaped for other uses. The bill is sponsored by Senator Jim Tracy (R-Shelbyville).

Storm Victims — Legislation which would help storm victims who received damage due to the March storms was approved by the State Senate on final consideration. Senate Bill 2701 allows for citizens who suffered damages between March 23, 2011, and May 12, 2012, and who qualify for Federal Emergency Management Agency (FEMA) assistance to apply for tax rebates on household appliances and furnishings of up to $3,200 per item and on building materials up to $500 per item. The rebates are capped at $2,500 per household.

Abortion — Legislation was passed this week, which, according to proponents, will create a safer medical climate for women after an abortion by requiring that physicians performing them have hospital admitting privileges in the same or adjoining county of the locality in which it was conducted. Proponents say the bill would help women who have complications following an abortion to receive better post-abortion care if they have an emergency and need to be hospitalized and ensure the physician responsible and knowledgeable of the woman’s specific condition and health history can attend her after she is admitted to the hospital. Senate Bill 3323 follows testimony that patients have been left to fend for themselves for emergency follow-up care following complications.

Embryo / Fetal Homicide — A bill has been approved to broaden the offenses for assault and criminal homicide committed against pregnant women to include an embryo. The embryo would be in addition to a fetus which was included as a separate offense and passed in 2011. Senate Bill 3412 ensures that perpetrators are punished, regardless of the viability of the victim.