July 2nd, 2009
Tennesseans on this Independence Day are just as much in the forefront of the struggle for freedom as their Revolutionary War ancestors
As families across the state gather on this Independence Day to observe the founding of our nation’s freedom with picnics, fireworks, parades and other special events, may we all remember those who have fought and are still fighting for the cause of freedom. We have much to be proud of in Tennessee regarding our state’s rich heritage in protecting and defending the precious rights we enjoy as Americans.
As we look back on our nation’s struggles in the American Revolution, even before Tennessee became a state, our ancestors had already begun bravely to answer the call of freedom. It started at Kings Mountain, which was one of the most decisive Patriot victories of the Revolutionary War. Tennessee rebels left their homes, marched hundreds of miles over mountainous terrain and were victorious over British troops, forcing them into a series of maneuvers that eventually led to the surrender at Yorktown.
This early example of heroics set the path for Tennesseans, whom time and time again would show that, when our homes and our liberties are threatened, our volunteers will go forth to meet the threat head-on. For that reason, Tennesseans went to war again, marching off to New Orleans in 1812 to crush another British threat to the South and making a Tennessee General, Andrew Jackson, the only national hero to emerge from that war.
When Tennessee was called upon for 2,800 soldiers in the next major U.S. confrontation with Mexico in 1848, an overwhelming 30,000 came forward, and hence forth, Tennessee has been known as the Volunteer State.
In 1861 Union was torn with the War Between the States. Tennesseans became leaders for both sides of the struggle. Our state became a major battle ground of the war that followed, and not one of Tennessee’s citizens was left untouched.
When a united America once again called upon Tennessee during the war with Spain in the late 1800’s, the the Volunteer state rose to the occasion, filling the ranks of service from Cuba to the Philippines.
As the 20th century dawned, Tennesseans responded to freedom’s call in the first and second World Wars. Likewise, many young Tennesseans fought bravely in the jungles of Vietnam. The men and women who fought in these wars, like those stationed overseas today, are not just American heroes, but heroes to many nations.
In fact, it was a Tennessee artillery battalion that was among the first to reach the Euphrates River in Iraq during the Gulf War and the first flag to be raised over liberated Kuwait City was the flag of Tennessee.
In the current conflict in Iraq, more than 12,000 brave citizen soldiers and airmen from the Volunteer State have answered the call to active duty. Tennessee is the model state in the nation for the number of citizen soldiers, truly living up to our “Volunteer” name.
I’m proud of our service men and women. They are persons of character and conviction, and they are literally changing our world. Our prayers continue to go out to them for their safe return.
Tennesseans serving in Afghanistan and Iraq today are just as much in the forefront of the struggle for freedom as their ancestors were at Kings Mountain, whose victory we celebrate on this Independence Day. As long as America is blessed with such heroes, the efforts of the Founding Fathers will not have been in vain, and the fruits of their labors will be preserved for future generations.
Best regards,
Doug Overbey
State Senator
Posted in Featured News, In The News, Press Releases |
June 19th, 2009
Legislature passes budget and adjourns 2009 legislative session
The Tennessee General Assembly wrapped up the 2009 legislative session this week after passing a budget and approving a major new charter schools law. The $29.6 billion balanced budget comes after the unprecedented loss of over $1.2 billion in revenue in Tennessee due to the state’s declining economy.
The appropriations bill is fiscally responsible budget that plans for difficult economic times, borrows less, has protection for the Rainy Day (savings) Fund and is closer to balancing recurring and nonrecurring expenditures.
The budget as adopted is $40 million less than that proposed by the Governor and includes a provision calling for the impoundment of $55 million in case the state falls short of revenue estimates at the close of the 2008-2009 budget year. The provision calls for the governor to identify reductions if revenues fall short and utilize those impounded funds so the state can close the books without having to dig deeper into the Rainy Day Fund. The Rainy Day Fund will be essential next year if the economic conditions worsen and when federal stimulus money dries up.
Other budget provisions included in the final version of the bill adds back $5 million in support grants for mental health, $4.9 million in grants for the coordinated school health program and $4.5 million more for the Department of Children’s Services to help dependent and neglected children.
On bonds, the governor had asked the legislature to authorize $350 million in bonds for bridge work and repair this year. The budget adopted by the Senate reflects a more cautious approach to the bond authorization as reflected in a provision to incur only one-forth of those bonds this year. The portion, which is $82.5 million, would only occur if there are not additional highway flex stimulus funds available. If stimulus money is available, the bond authorization would be canceled, under the bill. The General Assembly will take a year-to-year approach to phasing in the remainder of the four-year bond authorization to make sure the revenues are sufficient each year to pay for the bond plan.
The Senate also made sure that language was placed into the bill requiring legislative oversight of any budget expansion requests. This will assure federal expenditures of $5 billion in federal stimulus dollars coming into the state have the appropriate legislative checks and balances required by the state’s Constitution.
It has been the practice in recent years that, when the General Assembly is out of session expansion request, also called supplemental appropriations, are recognized and acknowledged through a signature of the Senate and House Finance Committee Chairmen and sent back to the administration which dispenses the funds. New language included in the bill takes the next step in the direction of clarifying a better procedure and is in accordance with the Constitutional requirement.
Another change implemented by the Senate requires the administration to notify each entity receiving non-recurring money in writing that their funds will expire in 2009-2010 or the subsequent year. The notification gives the appropriate notice to these entities receiving this non-recurring money that they need to seek alternative funding in future years.
The plan prioritizes education by fully funding the Basic Education Program, the state’s funding formula for K-12 education. Pre-K would be kept at the same level of funding under the plan. It also funds Tennessee’s higher education at the highest level of funding to draw down approximately $500 million in federal stimulus available through the American Recovery and Reinvestment Act. In addition, it fully funds lottery scholarships to provide students with the opportunity to receive a college education.
On job growth, the legislation fully funds the economic development projects set to establish manufacturing facilities in the state including Volkswagen, Hemlock and Wacker. The bill also fully funds the Haywood County megasite and Solar Farm in West Tennessee.
Other highlights of the budget, SB 2355, include:
- Keeping the employee pension fund actuarially sound
- Not accelerating the number of employee positions cut from the governor’s plan
- Keeping the state health insurance program fully funded
- Funding unemployment benefit increases and extended benefits
Public charter school bill approved as legislature closes 2009 session
Major education reform legislation that strengthens Tennessee’s public charter school law was among the final bills approved by the General Assembly as the 2009 session wrapped up this week in Nashville. The legislation widens eligibility, clarifies funding and addresses rules for renewal of the public charter schools.
Previously, Tennessee had one of the most restrictive public charter school laws in the nation. The bill also puts into place a process so the best practices gained from the “laboratories of learning” go into traditional school programs.
Charter schools are public schools that are given flexibility to operate without the constraints of some of the rules and regulations normally imposed on traditional schools. In exchange for this flexibility, they are held accountable for performance through a charter, which is an agreement between the local education agency (LEA) and the charter school. It requires a strenuous approval process by the LEA and an equally tough renewal process of the charter every five years.
The legislation, SB 2133, addresses four provisions in the current charter school law.
- Eligibility — Currently, public charter school enrollment is limited primarily to failing students and those from failing schools. This legislation permits “at-risk” children (as defined by free and reduced-price lunch) to attend charter schools in those systems that have 14,000 or more students and three or more schools which do not meet adequate yearly progress benchmarks. In addition, school boards can opt by a two-thirds vote to allow students who are “at risk” to be eligible to attend charter schools.
- Caps — Currently public charter schools are limited to 50 statewide, with a cap of 35 in Memphis and 20 in Nashville. This bill says that converted charter schools do not count against the cap, clarifying in law what the Attorney General has already opined. In addition the number of charter schools statewide would be limited to 90.
- Renewal process – Currently, the charter agreement between the LEA and the charter school is renewed every five years. This measure would change the renewal period from five to ten years, with an interim report every five years. It also establishes the required documentation needed during the renewal process.
- Funding – Currently a public charter school receives the per pupil expenditure of state and local dollars. Although it mentions appropriate federal dollars, interpretations vary from one LEA to the next. This legislation defines the state and local charter school facilities funding responsibilities and clarifies the LEAs must allocate all appropriate federal funds, including Title I and ESEA funds, to the charter schools.
General Assembly passes legislation
strengthening Crooks with Guns Law
The final day of the legislative session also included approval of legislation cracking down on violent crime in Tennessee that builds on the “Crooks with Guns Law” passed during the last General Assembly. The bill adds attempted first degree murder to the Crooks with Guns Law.
Tennessee ranks second in the nation in the number of violent crimes. This legislation would work to keep those offenders off the street where they are no longer a danger to the public.
Sixty-seven percent of those convicted of violent crimes are re-arrested within three years of being released from prison. The recidivism rate increases to 80 percent when you move past that three-year marker.
The original “Crooks with Guns” legislation made it an additional offense to be armed with a firearm when committing a list of dangerous felonies like aggravated and especially aggravated kidnapping, burglary, stalking, carjacking, voluntary manslaughter, and certain drug crimes.
The bill, SB 672, would add a minimum of three years to the sentence of a violator who possesses a firearm during the commission of attempted first-degree murder, to be served after the underlying offense. If a violator possesses a firearm during the commission of the attempted first-degree murder and has a prior felony conviction, then a mandatory minimum of five years would be added to the sentence.
In addition, if a violator possesses a firearm during the commission or an attempt to commit a dangerous felony or attempting to escape, then a mandatory minimum of six years is added to the sentence to be served after the underlying offense. A prior felony conviction from this would add 10 years onto the sentence.
The General Assembly also approved another bill aimed at keeping repeat violent criminals convicted of aggravated burglary behind bars longer by counting each felony committed within a 24-hour period as a separate offense.
Under current law, with few exceptions, felonies committed within a 24-hour period constitute one conviction for the purpose of determining prior convictions by the court. This bill, SB 2115, requires all aggravated burglaries a defendant commits within a 24-hour period to be counted as separate prior convictions for purposes of determining whether the defendant is a multiple, persistent, or career offender under the Criminal Sentencing Reform Act.
Bills in Brief
Small business investment — Legislation to establish “The Tennessee Small Business Investment Company Credit Act (TSBIA)” was approved during the final hours of the 2009 legislative session. The bill is an effort to provide benefits to small, medium-sized, and start-up businesses that do not enjoy the same economic development incentives that have been provided to the larger companies that invest capital in Tennessee. The proposal, SB 1203, would channel $120 million to local businesses for expansion and working capital to increase jobs immediately. Insurance companies have large pools of untapped capital. The TSBIA is a mechanism to entice these companies to invest that capital in Tennessee small businesses.
Silver Alert System — Legislation creating a “Silver Alert System” that would work like the “Amber Alert System” to help locate missing individuals who have Alzheimer’s disease or related dementias was approved by the General Assembly and sent to the governor for his signature. The bill, SB 532, calls for local law enforcement agencies to coordinate with non-profit organizations such as “A Child is Missing” or the “Alzheimer’s Association” to aid in their efforts to put the program in place. The Silver Alert would be triggered if that missing person is believed to be in danger because of environmental or weather conditions or is thought to be unable to return to safety without assistance.
Bureau of Ethics and Campaign Finance — The General Assembly has voted to merge the Tennessee Ethics Commission and the Registry of Election Finance, keeping the boards independent but under one umbrella named the Bureau of Ethics and Campaign Finance. The measure, SB 162, provides that all ethics provisions remain intact. The Commission would have expired on July 1 unless other legislative action was taken.
Posted in In The News, Press Releases |
June 18th, 2009
Contact: Darlene Schlicher (615) 741-6336 or email: darlene.schlicher@capitol.tn.gov
(NASHVILLE, TN), June 18, 2009 – The General Assembly has approved legislation cracking down on violent crime in Tennessee that builds on the “Crooks with Guns Law” passed by the legislature last year. The bill, sponsored by Senate Republican Leader Mark Norris (R-Collierville) and Senator Doug Overbey (R-Maryville), adds attempted first degree murder to the Crooks with Guns Law.
“Tennessee ranks second in the nation in the number of violent crimes,” said Senator Norris, who sponsored the original Crooks with Guns Law. “This legislation would work to keep those offenders off the street where they are no longer a danger to the public.”
Sixty-seven percent of those convicted of violent crimes are re-arrested within three years of being released from prison. The recidivism rate increases to 80 percent when you move past that three-year marker.
The original “Crooks with Guns” legislation made it an additional offense to be armed with a firearm when committing a list of dangerous felonies like aggravated and especially aggravated kidnapping, burglary, stalking, carjacking, voluntary manslaughter, and certain drug crimes.
“Protection of our citizens should be one of our first priorities,” added Overbey. “These are not petty criminals. These are offenders that have no fear of using a firearm to kill their victim in the commission of a crime.”
The bill, SB 672 , would add a minimum of three years to the sentence of a violator who possesses a firearm during the commission of attempted first-degree murder, to be served after the underlying offense. If a violator possesses a firearm during the commission of the attempted first-degree murder and has a prior felony conviction, then a mandatory minimum of five years would be added to the sentence.
In addition, if a violator possesses a firearm during the commission or an attempt to commit a dangerous felony or attempting to escape, then a mandatory minimum of six years is added to the sentence to be served after the underlying offense. A prior felony conviction from this would add 10 years onto the sentence.
The General Assembly also approved another bill aimed at keeping repeat violent criminals convicted of aggravated burglary behind bars longer by counting each felony committed within a 24-hour period as a separate offense.
Under current law, with few exceptions, felonies committed within a 24-hour period constitute one conviction for the purpose of determining prior convictions by the court. This bill, SB 2115 also sponsored by Norris and Overbey, requires all aggravated burglaries a defendant commits within a 24-hour period to be counted as separate prior convictions for purposes of determining whether the defendant is a multiple, persistent, or career offender under the Criminal Sentencing Reform Act.
Both of these bills aim to provide safety to our citizens by keeping these violent repeat offenders locked up,” Norris added. “We must make public safety a priority of state government so our citizens feel secure in their own communities.”
Posted in In The News, Press Releases |
June 12th, 2009
Senate Finance, Ways and Means Committee adopts budget
The Senate Finance Committee has amended the Administration’s proposed budget and approved a budget for the 2009-2010 fiscal year that borrows less, has more protection for the Rainy Day (savings) Fund, and is closer to balancing recurring and nonrecurring expenditures. The plan also cuts several of the governor’s proposed tax hikes, including one on cable television boxes and a measure to increase taxes on business phone rates.
The vote came after Finance Commissioner Dave Goetz told lawmakers that there was a continued decline in Tennessee’s revenues in May. Goetz said sales taxes collected in May were 11 percent lower than the yearly average of 7 percent and franchise and excise tax collections were down 40 percent for the month. Goetz said the revenues fall short of the governor’s revenue predictions for the budget, which were based on the most optimistic end of the state Funding Board’s predictions. The Funding Board consists of the state’s top economic advisors.
The plan prioritizes education by fully funding the Basic Education Program, the state’s funding formula for K-12 education. Pre-K would be kept at the same level of funding under the plan. It also funds Tennessee’s higher education at the highest level of funding to draw down approximately $500 million in federal stimulus available through the American Recovery and Reinvestment Act. In addition, it fully funds lottery scholarships to provide students with the opportunity to receive a college education.
On job growth, the legislation fully funds the economic development projects set to establish manufacturing facilities in the state including Volkswagen, Hemlock and Wacker. The bill also fully funds the Haywood County megasite and Solar Farm in West Tennessee under action taken on the measure on Friday.
The plan restores a list of capital projects provided state fiscal stabilization funds from the federal stimulus package are available or other federal reimbursement match increases free up state dollars. In previous years the legislature appropriated money to fund the projects. However, the governor held them after revenues plummeted. This year, he proposed the $168 million in cash previously approved by the legislature for those projects be used to plug the gap in the state budget. In turn, the governor recommended the state incur debt to fund the projects.
The committee’s action will keep Tennessee from putting these building projects on the state credit card at a time when economic conditions are unstable. The plan uses the debt service on those bonds, at $23 million per year, for other critical budget purposes like helping the most vulnerable citizens in Tennessee, mentally ill and dependent and neglected children in need of services.
Other highlights of the budget, SB 2355, include:
- Keeping the employee pension fund actuarially sound
- Not accelerating the number of employee positions cut from the governor’s plan
- Keeping the state health insurance program fully funded
- Funding unemployment benefit increases and extended benefits
Legislation advances to establish Silver Alert System
Legislation creating a “Silver Alert System” that would work like the “Amber Alert System” to help locate missing individuals who have Alzheimer’s disease or related dementias has advanced in the State Senate with approval by the Senate Finance Committee this week. The bill, SB 532, calls for local law enforcement agencies to coordinate with non-profit organizations such as “A Child is Missing” or the “Alzheimer’s Association” to aid in their efforts to put the program in place.
The bill defines “missing senior citizen” as a person 60 years or older whose “whereabouts are unknown” and who has “an impaired mental condition as determined by a local law enforcement agency.” The Silver Alert would be triggered if that missing person is believed to be in danger because of environmental or weather conditions or is thought to be unable to return to safety without assistance.
Approximately 100,000 Tennesseans and as many as 5.2 million persons nationwide are living with Alzheimer’s disease, according to the Alzheimer’s Association. The Silver Alert system is working in eight states and has resulted in the safe return of a majority of those reported.
The Alzheimer’s Foundation of America has reported that six in 10 of those with Alzheimer’s disease will wander away and become disoriented. Half of those who wander are found within five miles of their home. Of those not found within 24 hours, half will be seriously injured or die.
Experts maintain there is a critical 24-hour time period in which to locate missing seniors. The Silver Alert program is designed to disseminate quickly descriptive information about the missing person so that citizens in the affected area can be on the lookout for the endangered person and notify local law enforcement with any relevant information. This legislation brings a community to the aid of our seniors in such a crisis to take advantage of the short window of time needed to bring these vulnerable citizens home to avert a tragedy.
Senate Finance Committee approves legislation to form Bureau of Ethics and Campaign Finance
The Senate Finance Committee has voted to merge the Tennessee Ethics Commission and the Registry of Election Finance, keeping the boards independent but under one umbrella named the “Bureau of Ethics and Campaign Finance.” The measure, if approved by the full Senate, continues the commission and provides that all ethics provisions remain intact.
The Bureau will be composed of two independent divisions, the Tennessee Registry of Election Finance and the Tennessee Ethics Commission. It will be governed by a board of directors composed of six members of the Registry of Election Finance and six members of the Ethics Commission. The Bureau will remain attached to the Secretary of State’s Office.
Dick Williams, State Chairman of Common Cause, a watchdog agency for matter pertaining to open government and ethics, told committee members the bill did not weaken current ethics legislation. “This is a good way to handle a situation of concern to everybody,” said Williams.
Senate passes legislation preventing any locality in Tennessee from becoming a “sanctuary city”
The State Senate gave final approval to legislation preventing any city in Tennessee from becoming a “sanctuary city” for illegal aliens. A “sanctuary city” is a term given to a city in the United States that follows certain practices to protect illegal aliens. Thirty-eight cities in the U.S. have been recognized as sanctuary cities, but many sources have identified over 200 city or county governments nationwide as having practiced such policies. The bill, SB 1310, now goes to the governor for his signature.
The measure prohibits local governments or the head of such localities from passing any ordinances or policies that allows for a sanctuary city to be located in Tennessee. The bill is designed to be a pre-emptive strike to guard against the adoption of any policies to protect those who are in the United States illegally. It also urges the State Attorney General and local governments to pursue any federal funds allocated to combat illegal immigration.
State Senate passes bill to extend service of school buses
The State Senate has approved legislation authorizing local education agencies (LEAs) to extend the use of school buses for two more years as long as they do not exceed 200,000 miles and meet certain safety requirements. The legislation, SB 23, gives school boards more tools to plan their transportation budget needs.
Currently, education boards may use a school bus for 12 years, at which time the Commissioner of Education may grant waivers for an additional three years on a year-to-year basis upon meeting the requirements similar to those of conventional school buses. Under the bill, LEAs would be authorized to ask for a waiver to use a bus up to 17 years, as long as it does not exceed the 200,000-mile cap and is inspected at least twice annually. The inspectors could mandate needed repairs.
Any bus reaching the 200,000 limit would have to be replaced within 90 days. The local agencies would be required to maintain records of all actions and safety inspections performed on the bus from its in-service date for the Tennessee Department of Safety.
Bills in Brief
Resolution / GITMO — The Tennessee State Senate voted this week to oppose bringing any detainees now housed at the Guantanamo Bay, Cuba, detention facility into any Tennessee prisons. The Resolution, SJR 381, expresses opposition to the utilization of any local, state, federal or private jail, prison or detention facility in Tennessee. A copy of the resolution will be sent to President Barak Obama and each member of Tennessee’s Congressional Delegation.
Tennessee Transportation Infrastructure Fund — Legislation that would provide a vehicle for local governments to finance and complete local transportation projects was approved by the full Senate this week. The bill would give local governments the option of applying for a low interest loan for eligible infrastructure projects with flexible repayment terms. The State Transportation Infrastructure Fund would also let Tennessee make application for a portion of $200 million in stimulus funds recently made available through the American Recovery and Reinvestment Act. The bill, SB 2120, now goes to the governor for his signature.
Jobs / Climate Change — The State Senate voted this week to approve a House Joint Resolution, HJR 323, stating Tennessee should only combat global climate change and reduce the emission of greenhouse gases if a plan for doing so were structured in a manner to promote jobs; avoid imposing higher energy prices; reward early adopters of efficient practices and technologies; monitor and prevent “emissions leakage”; and champion and ensure the continued global competitiveness of American industry. Tennessee has already lost 106,600 manufacturing jobs since 2000. Manufacturing accounts for $40.9 billion of Tennessee gross state product.
Family law / soldiers — A bill that would allow military personnel who have child visitation rights under a divorce decree to petition the court to transfer those rights to a relative when he or she is sent overseas cleared the full Senate this week. The bill, SB 1267, authorizes a court to grant a parent’s petition to assign visitation rights to a relative if the court finds that the visitation would be in the child’s best interests. The bill now goes to the governor for his signature.
Tennessee declares state’s sovereignty — The full Senate voted to approve a resolution claiming Tennessee’s “sovereignty under the Tenth Amendment to the Constitution of the United States.” The proposal, HJR 108, is designed to send Congress a message that the federal government has overstepped its Constitutional bounds by mandating a massive amount of federal policies upon the states in violation of the Amendment. The language of the Tenth Amendment is clear and concise that the federal government’s powers are limited to a specific set of activities. Twenty-eight states have approved similar resolutions.
TVA / ALCOA — Legislation was approved this week in the State Senate urging the Tennessee Valley Authority (TVA) Board of Directors to enter into a long-term contract with Aluminum Company of America (Alcoa). The resolution, SJR 622, sends a message to Congress and the TVA that Tennessee believes it is critical to finalize this contract. Approximately 500 jobs are dependent on restarting the smelter at Alcoa, which is in turn, dependent upon completion of a competitive long-term power contract. The bill calls for the resolution to be delivered to TVA’s Board of Directors and each member of the Tennessee Congressional delegation.
Posted in In The News, Press Releases |
June 11th, 2009
(NASHVILLE, TN), June 10, 2009 — Legislation sponsored by State Senator Doug Overbey (R-Maryville) was approved today in the State Senate urging the Tennessee Valley Authority (TVA) Board of Directors to enter into a long-term contract with Aluminum Company of America (Alcoa). The resolution, SJR 622, was approved unanimously after all members of the State Senate signed on to co-sponsor the measure.
“I was very pleased at the overwhelming bi-partisan support of our State Senate on this Resolution,” said Senator Overbey. “Approximately 500 jobs are dependent on restarting the smelter which, in turn, is dependent upon completing this contract. This Resolution sends a message to Congress and the TVA that Tennessee believes it is critical to finalize this contract.”
Alcoa has been in operation in Blount County since 1913, nearly three decades before the TVA was established. Currently its Tennessee Operations, which involve the manufacture of primary aluminum and aluminum can sheet, employs approximately 1,600 persons. The company has an economic impact of more than $3 billion dollars annually in Blount County and East Tennessee.
In March, Alcoa announced a temporary curtailment of its Primary Metals facility and employee layoffs due to economic condition. According to Alcoa officials, a key driver in their ability to restart the plant is whether or not they have a competitive long-term power contract with the Tennessee Valley Authority. Alcoa and the Board of Directors of the Tennessee Valley Authority are currently in good faith negotiations regarding the contract.
“The smelter’s power cost is in the top 15 percent of all smelters in North America,” added Overbey. “It is vital that TVA realize the economic impact Alcoa has on Blount County and all East Tennessee.”
The bill calls for the resolution to be delivered to TVA’s Board of Directors and each member of the Tennessee Congressional delegation.
Posted in Featured News, In The News, Press Releases |
May 6th, 2009
(NASHVILLE, TN), May 5, 2009 — The State Senate approved comprehensive legislation sponsored by Senator Doug Overbey (R-Maryville) on Monday that would benefit Tennessee consumers who utilize the services of debt management specialists. The legislation, named the “Uniform Debt Management Services Act,” provides guidance and regulation to the consumer debt management industry while also providing fairer services to debtors.
“As the recession has deepened, we are finding more and more consumers turning to debt management companies, which have tripled in number over the past few years,” said Senator Overbey. “There have been frequent instances or accusations of abuse by consumers who utilize these services. This legislation regulates the industry in uniformity with other states, while protecting consumers.”
Congress passed bankruptcy reform legislation in 2005 mandating counseling by a private agency before an individual may enter into bankruptcy. Debt settlement is the option that lies on the continuum between credit counseling and bankruptcy. It is most often used by consumers who may not qualify for credit counseling or who do not qualify under the new rules of bankruptcy or prefer to honor their debts to the best of their ability rather than declare bankruptcy. Debt management services primarily include negotiating a reduction of the consumer’s non-secured consumer debts in exchange for a faster repayment plan.
The legislation, HYPERLINK “http://wapp.capitol.tn.gov/apps/BillInfo/Default.aspx?BillNumber=SB0812″ SB 812, requires a debt management company operating in Tennessee to obtain a license and supply information about their practices, fees, educational materials and employee qualifications. A company must also post a surety bond or another security to safeguard any money that it receives from individuals for payment of creditors. In addition, the debt management company must provide a disclosure to consumers that this may not be the best option for them and that it may affect their credit rating.
“We need credible counseling services for those facing massive debt,” added Overbey. “However, we don’t need an unregulated industry that might prey on those who are already in deep financial trouble.”
The new act gives the Department of Commerce the right to take enforcement action against anyone who violates the act. It also creates a consumer right of action and treble damages for certain circumstances involving abuse.
“When consumers turn to these companies for help, they need greater assurance that they will receive the appropriate debt counseling and assistance. I am pleased that our State Senate has approved this legislation and hope that we will have full reciprocal participation from all states in the near future,” Overbey concluded.
Contact: Darlene Schlicher (615) 741-6336
Posted in Featured News, Press Releases |
January 23rd, 2009
State Senate
State of Tennessee
Here are highlights from the past week in the Tennessee State Senate. Please feel free to contact me if you have any questions or concerns about matters being considered by the General Assembly. You can also get information about the General Assembly, including the text of bills and floor and committee calendars, by accessing the legislative web site at www.capitol.tn.gov. Please bear in mind that this update is principally related to actions of the State Senate. Contact information;
Telephone: 615-741-0981
Facsimile: 615-253-0224
Email: Sen.Doug.Overbey@capitol.tn.gov
State Senate organizes business as
106th General Assembly convenes
(NASHVILLE, TN), January 15, 2009 — The 106th General Assembly was gaveled to order this week in Nashville as the state’s 132 lawmakers took the oath of office, elected officers and organized to begin the business of the 2009-2010 legislative sessions.
Families and friends crowded the Senate chamber and watched as the sixteen newly elected or re-elected members of the State Senate took the oath of office, which was the first order of business during the organizational session.
On a personal note, I was honored to have my wife, Kay; daughter and son-in-law, Kathleen and Ryan Thomas; and, many friends from Sevier and Blount Counties present in the Senate Chamber and gallery for the event.
The second order of business was the re-election of Senator Ron Ramsey as Lt. Governor. Ramsey, who also serves as Speaker of the Senate, is serving his second term as Lt. Governor.
General Assembly elects new
Secretary of State, Treasurer, and Comptroller
The opening week of the 106th General Assembly was also marked by election of the state’s constitutional officers, the secretary of state, treasurer and comptroller. The state’s constitution provides that the legislature selects the three offices in a joint session during the organization session of each General Assembly, which occurred on Thursday.
Elected and sworn in were Tre Hargett as Secretary of State, David Lillard as State Treasurer, and Justin Wilson as Comptroller. Hargett will serve a four-year term, while Lillard and Wilson will serve two-year terms as provided by the Constitution.
The secretary of state has oversight over elections and businesses in the state. The comptroller audits state agencies and county governments to ensure they are run well. The treasurer keeps track of the state’s coffers, its investments and its pension funds. The three officers also serve on several key boards together, such as the State Building Commission, which maintains all state-owned public buildings; the Funding Board, which helps guide budgeting; and the Tennessee Housing Development Agency, which builds affordable housing.
Hargett is a former State Representative and served as House Minority Leader before becoming Director of the Tennessee Regulatory Authority. Lillard, an attorney and past president of the Tennessee County Commissioners Association, has extensive experience in municipal finance issues, securities and bonds, and investment oversight. Wilson is former Deputy Governor of Tennessee and has vast experience with fiduciary matters in law, business and charitable organizations.
Preview of the 2009 Legislative Session —
Financial issues to dominate legislative session
With organizational tasks out of the way, the 106th General Assembly can now get to work on the important issues facing Tennessee as we start this new legislative session.
Topping this year’s agenda will be consideration of a balanced budget in one of the worst financial years faced by lawmakers in a long time. Tennessee’s year-to-date collections for five months are currently $407.8 million below the budgeted estimate. The state could be left to deal with as much as $780 million to a $1 billion shortfall by the end of the budget year in June.
There are still many unknown factors regarding finances remaining for the year ahead, including the level of financial aid that might be forthcoming to the states from the federal government. Such aid would provide the state with a “softer landing” in light of the cuts needed to bridge the gap in revenue shortfalls for the 2008-09 fiscal year.
One comparison for aid that could be sent to states is a stimulus package disbursed in 2003 which included increased matching rates in federal programs that were stretched out over a two-year period. President Obama has also indicated he will put forth an infrastructure-building program to states to stimulate job growth. The Tennessee Department of Transportation has a backlog of projects that are in need of construction.
Tennessee could benefit from more than $268 million in federal money from such an economic stimulus bill. The plan under discussion has a total package of $12.8 billion to go to states for the infrastructure-building program. Such an infusion could stave off other efforts to raise road money. It is estimated that almost $12 billion is needed for road projects in Tennessee for the next decade. Presently, the state’s Department of Transportation only spends the funds that are available through its dedicated revenues derived from gas taxes, highway user fees, and federal funding.
Similarly, one of the most concerning trends affecting our state’s budget is the rising unemployment rate. Most lawmakers agree that Tennessee must be aggressive in bringing new jobs to better weather the economic storm. This makes economic development and job creation a top priority of the upcoming legislative session. Job losses have accelerated to around 7 percent. That number could rise to 8.5 percent to 9 percent before the economy turns around according to the state’s leading economists. Almost all sectors of jobs are in decline, bringing forward the issue of how the state’s unemployment fund will fare if the economy does not turn around.
Expect the solvency of the fund to be a topic for discussion this session when the General Assembly convenes. Tennessee’s unemployment fund had a balance of about $517 million as of November. Experts say a drop below the $400 million level would cause great concern.
Finally, legislation is expected to be introduced again this year to provide a two-thirds majority to override Tennessee’s constitutional amendment that requires state spending to stay within the rate of growth of Tennessee’s economy. Called the “Copeland Cap,” this amendment to the state’s constitution was approved by Tennessee voters in 1978. It stipulates that state spending cannot grow faster than the rate of growth of the state’s economy, measured by the growth of incomes of Tennesseans. The goal is to keep spending growth at a level where the people’s income growth can afford it without a tax increase. Currently the cap can be overridden with a simple majority vote.
The state’s economic downturn and the rise in unemployment provide legislators with serious challenges. The General Assembly has adjourned until February 9, 2009, to assign offices and await budget details. The governor is expected to deliver his budget address at that time.
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