May 22, 2003

Lottery scholarship bill passes House and Senate

Appropriations bill clears House

HJR 543 passes House

(Nashville) - Legislation creating lottery HOPE scholarships passed the House and Senate this week with a different requirement for receiving the awards. The new standard will increase the amount of students eligible for the award. However, it will increase the cost of the program by $200 million over four years, eliminating new funding for pre-K and K-12 programs.

Debate on the amendment that changed the requirements centered around the desire to keep the lottery fiscally responsible while allowing money for early childhood education and school construction. Under the adopted amendment students who have either a 3.0 grade point average or a score of 19 on the ACT college entrance exam will now be eligible for a scholarship. The original bill required students to have both.

The Governor also expressed concern over the matter because he has made clear his commitment to fund new pre-K initiatives. There were several differences between the House and Senate versions but today, the Senate adopted the House version. It now goes to the Governor for his signature.

I voted against the House lottery bill after it was amended for a variety of reasons. First, the lottery is only expected to generate 130 million for scholarships. This last minute amendment will cost an additional 50 million dollars per year on average. Since the minimum ACT score to be admitted into a state institution is a 19 virtually every student entering a state institution will receive a scholarship. Because of the vast number of students, its possible that the scholarship amounts will have to be reduced the very first year. Second, the House Republican Caucus had resolved that the lottery should maintain high standards for receiving a scholarship. A 3.0 or a 19 ACT relaxes the previous standard considerably. Third, it was my hope that funds would be generated for the three additional Constitutional expenditures that are permitted; capitol projects, early childhood education and after school programs. It does not appear that this will be possible with this bill.

The scholarship award is $3,000 for qualifying students attending four-year public or private institutions in Tennessee, $1,500 for those at two-year community colleges, and $1,250 for students attending technical schools. Students from families whose incomes are less than $36,000 per year and students who earn a 3.75 GPA and a 29 ACT would receive an additional $1,000. These two elements address the desire of lawmakers to include both a need-based component and a merit-based component.

Reduced scholarships would be awarded to students with family incomes of less than $36,000 who have a 2.75 GPA and 18 ACT score. They would receive half the amount of the full HOPE award. Home-schooled students would be eligible if they have a 23 ACT score, while those with general equivalency degrees could qualify with a 525 GED score and a 19 on the ACT.

The Senate plan had called for awards of $4,000 for four-year schools, $2,000 awards to two-year community colleges, and $1,500 to those attending technical schools. It required a 3.0 GPA and a 19 ACT.

Budget moves forward

The Senate passed the House version of Governor Bredesen's "omnibus" bill with minor changes this week. The current version cuts $37.2 million in state-shared taxes. The plan also includes 9 percent reductions in many departments, including $65 million from the Department of Transportation. The amount cities receive from the Hall income tax was also cut from 9 percent to 33 percent.

I voted for a defeated amendment that would have restored the state-shared taxes cut by Governor Bredesen's "omnibus" budget plan. The amendment would have carved $37 million out of the $327 million increase on TennCare spending. The amendment would have completely restored state-shared funds across the state. It was eventually defeated through parliamentary maneuvering. It would have returned tax dollars to the communities that contributed them. I did not want to vote for a omnibus budget plan that may force local government to raise property taxes.

I also voted for an amendment that would have made the cuts temporary, installing a sunset provision. Governor Bredesen's plan calls for making the cuts to cities and counties permanent. This amendment too was tabled by a party line vote.

Many of us ask how the state can justify seizing state-shared funds as the economy improves? I do not think we should expect our local governments, through a reduction of their funds to essentially fund part of the $327 million increase in TennCare spending. We have heard for years that reform is coming, but it's still rife with abuse and out-of-control costs per the recent audit. The Governor has said he expects to yield some savings in the TennCare program through his management. If that is so, why plan on continuing to take the locals dollars?

The House plan also contains an amendment prohibiting the use of tax dollars to pay for abortions.

Appropriations

The House also passed appropriations legislation this week. The total amount of appropriations is $21.4 billion, though the state pays $9.8 billion. The rest of the appropriations come from the federal government

and other sources.

Teachers receive an extra $27 million in an effort to equalize teacher salaries across the state. According to the Governor, those funds will help ward off action in a lawsuit filed by small schools in Tennessee who feel the pay gap between small and large school systems is too wide.

Homeland Security efforts receive over $40 million in this year's budget, much of it from federal grants. A portion of those funds will go to three regional offices. The money is being distributed to local governments because homeland security requires a large allocation of resources at the local level. In the past two years, the President and Congress have nearly doubled the funding for homeland security, significantly strengthening America's protections against terrorism.

Bonds were authorized to build a Veterans Retirement Home in east Tennessee. Revenue from the federal government and local government will also be used. Four Veteran's Affairs field offices are funded in the

budget.

TennCare

Legislation setting up a preferred drug list (PDL) was passed by the House this week that will help lower TennCare pharmaceutical costs. I am a co-sponsor of this bill because it is a first step in controlling some costs. Currently, doctors dealing with TennCare patients have to deal with as many as 6-8 different drug formularies. The bill creates a state formulary committee that will be empowered to negotiate rebates with drug manufacturers, among other things. The measure is also expected to reduce drug interaction deaths, a category in which Tennessee leads the nation.

It is estimated that the move may save $150 million in TennCare's pharmacy program. TennCare receives a $327 million increase in this year's budget.

Legislation in the news

E-commerce legislation aimed at preventing theft of trade secrets, data or services via computer networks passed the House this week. It also contains a provision whereby a computer offense in connection with an act of terrorism is a Class A felony.

The Governor signed legislation this week that will protect volunteer firefighters from dismissal if they are late or absent from their job while responding to an emergency. The bill passed 96-0 in the Tennessee House of Representatives. Under the new law, employers have the right to ask for a written statement from the volunteer firefighter's supervisor that includes the time and date of the emergency. The employee is also required to use reasonable efforts to notify the employer if the employee is going to be late or absent from work.

A bill passed this week that allows a police officer to arrest a motorist who leaves the scene of an accident and is apprehended within four hours, if the officer believes the driver was under the influence of drugs or alcohol at the time of the accident. The measure cleared the House 86-1 with 2 abstentions.

The House approved legislation this week for a license plate honoring the Girl Scouts of Tennessee. Proceeds from sales of the plate would be split between the Girl Scouts, the Tennessee Arts Commission and the state highway fund.

My Resolution, HJR 543, passed the House today. This Resolution honors President George W. Bush and the men and women of the United States Armed Forces who served during Operation Iraqi Freedom. It is a beautiful Resolution that will be presented to the President at a yet to be determined date. The Resolution is below for you to read. As we head into this Memorial Day weekend I hope you will feel proud that Tennessee continues to Honor her service men and women for all of time and memorial with such Resolutions.

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*****************************

A RESOLUTION to honor President George W.

Bush and the men and women of the United States Armed Forces who served during Operation Iraqi Freedom.

WHEREAS, the Honorable George W. Bush, President of the United States and Commander-in-Chief of the Armed Forces of the United States forged the national will and joined by a "coalition of the willing" successfully conducted Operation Iraqi Freedom to assure the safety of free nations by eliminating weapons of mass destruction with their delivery means and to liberate the oppressed Iraqi people.

WHEREAS, the Iraqi regime of Saddam Hussein, following its unprovoked attack on the neighboring country of Kuwait, persisted for ten years in ignoring United Nations' sanctions, continued to host known terrorist operatives, thwarted the efforts of United Nation inspection teams to verify the destruction of chemical, biological and nuclear weapons of mass destruction, and demonstrated a well documented history of human rights atrocities, required that free nations act.

WHEREAS, after exhaustive efforts to diplomatically attain Iraqi government compliance with unanimously passed United Nations resolutions directing Iraq to disarm and destroy weapons of "mass destruction" and the Iraqi regime's determination to thwart United Nations weapons inspection teams, the United States joined by the United Kingdom, Australia, Poland and others, committed military forces to effect a regime change, eliminate weapons of mass destruction and return the government of Iraq to the Iraqi people.

WHEREAS, Operation Iraqi Freedom was prosecuted with unprecedented speed and boldness accomplishing one of the swiftest military advances by heavy arms in history while applying overwhelming combat power judiciously and with precision to attack the heart of the Iraqi regime without directing violence against civilian targets and resulting in fewer military and civilian casualties.

WHEREAS, the courageous men and woman of the United States Army, United States Navy, United States Air Force, United States Marine Corps, United States Coast Guard, and the mariners of the Military Sealift Command joined by 3400 members of the Tennessee Army and Air Force National Guard and Reserves and supported by their families, representing the very best of our nation, conducted themselves professionally and with courage while demonstrating compassion for the people of Iraq and the defeated soldiers of the Iraqi regime.

WHEREAS, the ultimate sacrifice for liberation was given by some two hundred coalition soldiers which included two courageous Tennessee patriots in the service of their country, Lance Corporal Patrick R. Nixon, United States Marine Corps and Specialist Thomas A. Foley, III, United States Army, earning them a place in history among the most courageous of our nation who answered the "call to arms" to defend our country and to protect the innocent.

WHEREAS, the unflinching determination of President George W. Bush to remove the tyrannical regime of Saddam Hussein by building a "coalition of the willing" providing political leadership in the face of formidable international opposition, and serving as the Commander-in-Chief in both name and action, and placing trust in our country's military uniformed leadership to execute military operations, achieved unequaled success.

BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE ONE HUNDRED THIRD GENERAL ASSEMBLY OF THE STATE OF TENNESSEE, THE SENATE CONCURRING, that on behalf of the citizens of Tennessee, this General Assembly expresses its profound gratitude to the men and women of the United States Army, United States Navy, United States Air Force, United States Marine Corps, United States Coast Guard, Military Sealift Command, Army and Air Force National Guard and Reserves and their supporting families who have served during Operation Iraqi Freedom, thanking them for their great courage, high degree of professionalism and unselfish sacrifice in advancing the cause of freedom.

BE IT FURTHER RESOLVED that we express our deep sorrow to the family members of servicemen and servicewomen who lost their lives or suffered grievous injury while serving their country during Operation Iraqi Freedom and express our gratitude for their sacrifice in preserving liberty.

BE IT FURTHER RESOLVED that we honor President George W. Bush for his courageous political leadership and serving as Commander-in-Chief of the Armed Forces of the United States of America and thank him for his determination in seeing this dangerous but necessary military operation to its conclusion.

BE IT FURTHER RESOLVED that an appropriate copy of this resolution be prepared for presentation to the Honorable George W. Bush, President of the United States, the Chairman of the Joint Chief of Staff, General Richard Meyers, and General Tommy Franks, Commander-in-Chief, United States Central Command, with this final clause omitted from such copy.

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May 15, 2003

Budget plan passes House Floor

Lottery scholarship requirements still in doubt

(Nashville) - A new state budget proposal emerged from the crucial House Finance Committee this week and was passed on the House floor on Thursday. It eliminates $23.5 million in cuts that the Governor had asked for in state subsidies to city and county governments. I, together with the House Republicans, had been holding out for the Governor to give in on the state-shared funds.

The plan reduces the cuts in state-shared taxes from $60.7 million to $37.2 million, or 4.5%. County governments have more money restored than city governments, some of which would now lose more than under the Governor's original plan.

The original Bredesen budget called for a 9 percent cut in each of the various state-shared tax funds. The new proposal eliminates the $20.2 million cuts in gasoline tax dollars distributed to local governments as well as the $7.3 million in the local governments' share of TVA payments in lieu of taxes.

However, it increases the amount of money kept by the state from collections of the Hall income tax. Local governments would lose $16.7 million, instead of the $4.5 million mentioned under the first Bredesen plan. Hall receipts go to the local government that is home to the individuals who pay the Hall tax.

Wilson County had been scheduled to lose 307,200 but under the new proposal adopted yesterday Wilson County will only lose 50,500 in state shared taxes. Sumner County was scheduled to lose 352,100 under the former plan but this has been adjusted down to 64,400. The cities are now taking the brunt of the cuts; Hendersonville formerly 410,800/now 324,300; Lebanon 215,300/186,600; Mt. Juliet 125,800/109,200.

The plan was approved by both the House Finance Committee and the floor as an amendment to the Governor's omnibus bill, which makes many changes to current statutes in order to balance the budget. Many see it as an improvement over the original bill, but would prefer that the Governor not seize any of the state-shared taxes.

An amendment was proposed by Rep. Jason Mumpower that would have eliminated all of the state shared tax cuts and instead take the 37 million from the TennCare budget was defeated by a tabling motion. Under this amendment, TennCare would still receive 290,000,000 in new money. The Governor is working on proposals to find savings in the TennCare plan that would have potentially offset this loss of funds. The amendment was defeated in a dramatic 53/43 tabling vote. 41 Republicans and 2 Democrats voted to save the amendment from the tabling motion. Another important amendment that was defeated by a tabling vote was one to repeal the seizure of state shared taxes on July 1, 2004. Making the seizure of state shared funds temporary instead of permanent. This motion lost by a closer margin of 50/46 with 44 Republicans and 2 Democrats voting to save this amendment from a tabling motion.

Administration officials said they could accept the budget plan passed today, though officials representing the State's cities were unhappy that the new plan would impact cities more than counties. Under the first Bredesen plan, cities would have lost $36.4 million in state-shared taxes while counties would lose $24.6 million. The bill that passed the House will take $32 million from cities and $4.9 million from counties.

Other changes that help balance the budget include revising the way businesses make quarterly payments of franchise and excise taxes. This will produce $18 million for the current fiscal year and $21 million in the coming fiscal year. The state will also receive a $7.2 million payment as its share of the Recognize Investor lawsuit settlement and a revised projection that the state will get an additional $7.7 million in revenue instead of $4.4 million from closing a bank tax loophole. The loophole allows profits to be shifted out of state to avoid Tennessee business taxes.

During debate on the bill, the House passed an amendment by voice vote that prohibits using state funds for abortions. Many in the House have long-sought the prohibition but it has been voted down in the past using parliamentary maneuvers. Rep. Bill Dunn proposed this amendment with a large number of representatives signing on including myself.

Lottery

The battle over lottery scholarship requirements continued this week with the Senate sponsor of the lottery agreeing with House and Senate Republicans that the scholarship standards be known before final passage of the implementation bill. Republicans feel the public should know how lottery proceeds will be used before tickets are sold.

The scholarship bill passed the House Finance Committee this week, allowing a vote in the full House. The Committee approved the bill unanimously after several hours of debate. House Democrats refused to hear the bill on the House floor this week because they feel the scholarship requirements are too high. Groups in the Memphis newspapers are calling for no scholarship standards. They believe that any student who meets the criteria for admittance to an institution of higher learning should be eligible for a lottery scholarship.

In the House, students with a 3.0 high school GPA and a 19 ACT score would be eligible for $3,000 scholarships to public or private four-year institutions or $1,500 awards for those attending two-year community colleges. Those students attending state technical schools would not have to meet any academic requirements to receive scholarships of $1,250.

Another aspect of the plan is a $1,000 bonus for students from families with annual incomes of less than $36,000 or those with 3.75 GPAs and 29 ACT scores. The former component addresses the desire of some legislators to have a need-based element in the plan, while the latter is a form of merit-based scholarship designed to keep the best students in Tennessee. Students who score a 525 on the GED exam and a 19 on the ACT will also qualify.

Ethics

A bill to authorize the Registry of Election Finance to put campaign financial disclosure reports online passed the Senate State and Local Committee this week. I co-sponsored this bill in the House and it has already been approved. The House version pays for the process by instituting a $150 filing fee charged to PACs and increasing the cost of lobbyist registration from $25 to $100.

Currently, a citizen must go to the office of the Registry of Election Finance to view a disclosure. He or she must then fill out a card requiring name, home and work phone number, driver's license number and employer to see the disclosure. That information is then mailed to the legislator whose form was inspected. Many in the House have long-pushed to end this intimidating procedure.

Legislation in the news

Legislation passed on the House Floor this week that would require notification of school principals if a student with a criminal past is placed in that school. The law would require parents, guardians and courts to reveal the criminal record of the student if it involved offenses such as murder, rape, robbery, kidnapping or assault.

A bill allowing Tennessee to have a handgun permit "reciprocity" agreement with other states passed the House Floor this week. I was a co-sponsor of this bill and am happy to tell you that this means that a valid handgun permit issued in another state is valid in this state if the issuing state also recognizes the validity of Tennessee handgun permits. Many permit holders feel it is unfair that they are not allowed to carry handguns for self-defense and the protection of their families when they are out of state.

A bill to increase the efficiency of purchasing by local education associations (LEAs) cleared the House this week. The bill would allow LEAs to purchase materials from vendors according to contracts negotiated by other LEAs. This means that individual LEAs across the state no longer have to negotiate separate contracts for purchases. They may become part of duplicate contracts used by other LEAs, saving time and money.

Another piece of LEA-related legislation passed the House chamber this week. The measure will prevent parents from enrolling their children in out-of-district schools. Under this bill, a parent who enrolls a student in an out-of-district school and fraudulently misrepresents the address of the student would be liable to the school district for restitution of the per pupil expenditure by the school district. Restitution would be cumulative for each year of fraudulent misrepresentation and payable to the school district. Additionally, when litigation is necessary to recover restitution, the parent would also be liable to the district for costs and fees, including attorney fees.

The state's adoption laws were revised this week. The measures include making it easier for Tennesseans to adopt foreign-born children as well as cutting through much of the bureaucratic red tape involved in the adoption process. The bill also allows adopted children to gain access to certain religious, medical and psychological information about their parents. It has the support of Tennessee's Council of Juvenile Court Judges.

Legislation to exempt churches from certain state health inspection requirements cleared the House 94-0 this week. The bill gives churches that prepare food for the homeless and other needy individuals more leeway in complying with state requirements meant for restaurants and for-profit food services.

###

Dear friends, I am happy to send you this first newsletter as one of

> many to follow. I have recapped for you the past week in Nashville.

> I thank you for your support and I appreciate your e-mails, letters

> and faxes very much. Please keep them coming. Your comments and

> expertise on legislation are vital to the process.

>

> I am pleased to report that my bill 1211 passed the house floor this

> week. This bill ensures clarity on referendum ballots. I also

> sponsored HB 1257, HB 434, HB 1397, HB 673 all of which passed this

> week and last. HB 1257 requires registry of election finance to create

> electronic filing system; requires registry to provide public access

> to list of campaign contributions and expenses made to candidates

> through Internet. The contributions and expenses will be available to

> the public on line. HB 434 requires organizations/persons or entities  

> acquiring automated external defibrillator to register within 30 days,

> instead of encouraging registration, existence and location of

> defibrillator with emergency communications district or ambulance

> dispatch center. There is no penalty for not registering however it is

> anticipated that such registration will saves lives in an emergency.

> Emergency personnel will be able to instruct individuals as to the

> location of a defibrillator to assist in an emergency. HB 1397

> requires insurer, upon request, to provide insured or producer of

> record copy of insured's prior three year loss run history. This

> applies to workers comp insurance and should make it much easier for

> businesses to re-quote their insurance. HB 673 requires hearing aids

> to be marked with name of manufacturer, distributor, or model name or

> number, serial number, and year of manufacture.

>

> And now the wrap...

> House Subcommittee passes lottery

>

> (Nashville) - The House Higher Education Subcommittee approved the

> lottery scholarship bill this week which means it will be heard by the

> full Education Committee next week. The bill reflects the wishes of

> most House Republicans in that it calls for equal scholarships of

> $3,000 to students regardless of whether they attend public or private

> colleges or universities.

>

> The bill has no income cap and will cost approximately $106 million.

> If there is money from the lottery available after the scholarships

> are paid for, it will go to early childhood education and to

> underwrite school bonds for K-12 education. A couple of more

> controversial aspects of the legislation is that it allows an extra

> $1,000 to go to the poorest children and the students with the highest

> grades and ACT scores. A question was raised this week about giving

> 1000.00 checks to students to spend as they wish. Comments were also

> made that those with the highest GPA's and ACT scores will receive

> many other scholarship offers anyway so why give them the extra money.

>

> The Subcommittee also passed several amendments that may receive

> scrutiny in the Education Committee. One very complicated amendment

> would allow students to receive credit towards a scholarship beginning

> in middle school by assigning a dollar amount to grade point averages.

> Another would give a half scholarship to students from low-income

> families who did not meet the bill's current academic credentials.

> Under this plan, high school students with a 2.75 GPA and an 18 ACT from families that make

> below $36,000 annually will be eligible for assistance.

>

> I have submitted three amendments to the Education Committee which

> will be presented next week by Committee members Rep. Dolores Greshem

> and Rep. Beth Harwell. The amendments deal with ensuring home schooled

> children are eligible for lottery merit scholarships, ensuring that

> surplus monies are spent equally on capital projects, pre-school

> programs and after school care. The third amendment changes language

> in the bill for clarification.

>

>

> One House amendment I am particularly excited about was written by

> Rep. Jim Vincent. It allocates unclaimed prize money to K-12 schools

> in stead of marketing programs by the lottery corporation. This will

> ensure that our K-12 schools get a share of the lottery dollars.

>

> Legislation in the news

>

> A bill that will require government to apply the same time limits to

> itself that it demands of businesses and individuals passed out of a

> House subcommittee this week. The "Efficiency in Government Act of

> 2003" says that if a governmental entity asks a citizen or business to

> reply to a request within a set time limit, then the government agency

> must also respond in that same time limit. The legislation expresses

> the will of many legislators who feel that state government should not

> ask of its citizens what itself is not willing to do.

>

> For example, if the government asks a business owner or private

> citizen to respond to a request in 15 or 30 days, state government

> must respond to that person in the same amount of time. The measure

> will go to the full State and Local Committee next week.

>

> The second amendment also received a boost this week when a bill

> dealing with concealed carry restrictions cleared a House

> subcommittee. The legislation will allow Tennessee to recognize other

> states' concealed carry handgun permit holders. Currently, if you

> have such a license in a different state, Tennessee does not legally

> allow you to carry the firearm in Tennessee. This "reciprocity"

> agreement means that Tennessee permit holders are recognized in other

> states and vice-versa.

>

> A bill to create a personalized license plate with the words "Choose

> Life" passed a House Subcommittee this week. The proceeds from the

> bill will be used to promote adoption efforts in Tennessee. The

> Center for Adoption, a public-private partnership between the

> Department of Children's Services and Family and Children Services, Inc, will receive funds raised by sales

> of the plate.

>

> Contracts Legislation Passed

>

> The House of Representatives passed legislation this week that will

> provide increased oversight over the procurement of state contracts.

> The issue was again in the news this week as the state asked the

> Federal Communications Commission to pay BellSouth to run the state's

> Internet access for schools instead of the company now managing the

> system. Federal funds for the ConnecTEN network are frozen because of

> an investigation into suspected favoritism in contracts awarded during

> the previous administration. The network, which provides Internet

> access to 97 percent of the state's public schools, is run by

> Nashville-based Education Networks of America.

>

> ENA is one of several companies whose contracts are under scrutiny by

> the FBI, the Tennessee Bureau of Investigation and the state

> comptroller's office as part of the contracts probe. Last year, the

> company was awarded a $106 million, five-year contract with the state

> Department of Education to run the network, though approximately 70

> percent of the money to pay the contract comes from the FCC.

> BellSouth has informally agreed to distribute the federal money to

> other ConnecTEN subcontractors.

>

> Crime

>

> The State Supreme Court denied an appeal from death row inmate Paul

> Reid this week, increasing the likelihood that he will be executed for

> the murder of seven fast food employees in 1994. He was convicted

> four years ago and is scheduled for execution next week. Reid's

> lawyer had asked the high court to send the case back to state court

> for a new trial that would review the inmate's mental competency.

> Reid has chosen to die by lethal injection but continues to claim

> innocence, saying he is a victim of a government/military conspiracy.

>

> Education

>

> The review process for charter school applications has been completed

> for the year. Nashville and Memphis will have charter schools open

> their doors this fall. The State Board of Education dismissed the

> remaining applications last week. Applicants were rejected based on

> academic proposals as well as their financial backing. The law

> creating charters is aimed at at-risk students. The schools are given

> a charter and allowed to experiment in an attempt to raise the quality

> of education for disadvantaged students in public schools. The process

> also acts as an incubator for new teaching techniques in public

> schools. Each charter school will receive $250,000 in the form of a

> federal grant.

>

> Homeland Security

>

> Oak Ridge National Laboratory plans to make Tennessee a testing ground

> for its new SensorNet terrorism-alert system. The proposed system

> would use high-tech sensors with advanced data communication to

> provide rapid notification of chemical, biological or radiological

> attacks. ORNL wants to develop a nationwide network that relies on

> existing infrastructure, such as cell-phone towers, to deploy the best

> available sensors and communications equipment. A few test sensors

> have been installed in Washington, D.C., and selected sites in East

> Tennessee. Those are linked to a control center in the National

> Transportation Research Center near Pellissippi Parkway where this

> week's demonstration took place.

>

> Please keep the men and women of our armed services in your thoughts

> and prayers. As always, please feel free to contact me on any issue

> that is important to you. It is an honor to be your voice in

> Nashville.

Capitol Hill Week in Review

A Weekly Wrap-Up of Legislative News

May 1, 2003

Feds offer TennCare relief

Lottery moves through House Committees

(Nashville) - The federal agency that supplies the matching funds for TennCare has agreed to give the state an additional $175 million to cover TennCare costs this year, which will allow Tennessee to keep its "rainy day" reserve fund intact. The Centers for Medicare and Medicaid Services (CMS) agreed to pass on the money as a result of renegotiations with the state over the TennCare federal matching funds cap agreed to last year. Senator Frist was instrumental in facilitating the discussions between CMS and the administration to lift the cap.

This development will help reduce a $470 million shortfall in the state's General Fund for this year's budget without emptying reserve funds as planned. The state's reserve funds of approximately $80 million for boards, commissions and programs were going to be used to close out this year's books along with the rainy day fund. The rainy day fund will end the year with about $110 million. The money that federal officials have agreed to pay helps with this year's budget but will not be available next year.

The settlement will also mean the state can make the second of four scheduled payments to hospitals to cover their charity care expenses. That payment amounts to $25 million. The governor said he is not sure whether either of the remaining two payments will be made. CMS covers about two-thirds of the cost of the now $7 billion TennCare program.

The renegotiation of the matching funds cap centered around Tennessee's desire to have an 18-month stabilization period for TennCare's nine managed care organizations in which the state rather than the MCOs would accept the financial risk for cost overruns. In theory, this would have given MCOs time to get their feet on firmer financial ground.

Originally, CMS did not agree to this plan and set a cap of $1.9 billion on its contribution to the state for the 18 month-period, which includes this entire budget year. However, TennCare's spending has been well over the amount set by CMS. The $175 million roughly equals what CMS would have spent if it had participated fully in the stabilization period. The Governor has yet to announce the TennCare reform package he mentioned during his campaign. He has suggested a timeline for any proposals may be available by this summer. Many do not feel comfortable voting for the Governor's budget or omnibus bill without knowing his plans for salvaging TennCare and gaining control of the program. The Republicans had asked the Governor to reconsider seizure of the 9% state-shared taxes if he was able to get the 175 million from the Feds. The Governor made comment this week that he will not change his mind on this matter.

In other budget news, the Governor still plans to seize land acquisition funds for wetlands and local parks that come from the real estate transfer tax to balance future budgets. Many Republicans have asked for a "sunset provision" on the seizure of these and other previously earmarked funds as well as the use of state-shared taxes.

Lottery

Legislation requiring the state to hold money collected from the lottery until the state has enough money to fund all scholarships passed the House Finance Committee yesterday and will be up for a vote in the House chamber next Wednesday. The lottery implementation bill, sponsored by Representative Chris Newton (R-Benton), was amended to provide that no proceeds from the lottery could be used for scholarships until the state had the money on hand to pay for them. Funds from the lottery for calendar year 2004 would be used to provide scholarships for the fiscal years beginning July 1, 2004, and July 1, 2005.

Separate legislation creating the scholarships was discussed in the House Education Committee. That bill also could be up for a House vote Wednesday, but a new scholarship plan may delay that process. The amendment would set up a system allowing students in the sixth grade to earn credits toward a scholarship.

The House Finance Committee also amended the bill to give the Governor three of nine appointments to a nine-member board that would oversee the lottery. A different House committee had earlier voted for a seven-member panel, with the governor appointing five members. The Governor prefers the seven-member board. An amendment by Republican Leader Tre Hargett (R-Bartlett) was approved that will provide $200,000 of unclaimed lottery winnings to the Center for Problem Gambling at the University of Memphis, which has one of five centers in the nation for treating gambling disorders.

Two of the three amendments I proposed for the education lottery bill were adopted today in the Education Committee. One amendment ensures that home schooled students will be able to qualify for the lottery merit scholarship. Previously, there was no provision in the bill for home schooled students to qualify. The other amendment clarifies language in the bill regarding qualifying for a scholarship and acceptance at a post secondary institution.

Currently, the House education bill awards $3,000 to qualifying freshmen and sophomores at four-year public and private colleges and universities. Scholarships of $1,500 will go to students attending two-year community colleges and $1,250 goes to those attending technical schools. The Senate version gives scholarships in the amount $4,000, $2,000 and $1,500 to those same categories.

Legislation in the News

The Regional Medical Center at Memphis heard good news this week when it was announced that it will receive approximately $5.5 million to help with current budget woes. The Med will get $3 million from TennCare as a result of a federal decision to give Tennessee another $175 million for the TennCare program statewide. It also won a key House subcommittee vote on a bill that would cap the hospital's financial exposure in general liability and malpractice claims at $250,000 each. That arrangement will apply for three years while it works toward financial stability. The limits would not apply to malpractice claims made against physicians and other medical practitioners covered by their own insurance. The liability limits bill will save the hospital roughly $1.3 million in insurance premiums. It will also allow the Med to save about $1.2 million from its reserves set aside for paying liability claims that fall under its insurance deductible.

The effort to keep Tennessee driver's licenses out of the hands of illegal immigrants advanced this week in the House Transportation Committee. The bill would also remove ineligible persons from TennCare rolls. I am co-sponsoring the bill with Representative Donna Rowland (R-Murfreesboro) to force those applying for a driver's license to show a Social Security number or documentation from the Bureau of Citizen and Information Services that he or she is in the United States legally. The bill now moves to the House Finance, Ways and Means Committee.

The State Capitol building is the only historic building where smoking is still allowed. The Capitol is 150 years old and contains portraits and other fragile items. I am co-sponsoring a bill with Representative Diane Black

(R-Hendersonville) that would prohibit smoking in any state-owned national historic landmark. The bill is currently in a House State and Local Government Subcommittee.

Representative Doug Overbey (R-Maryville) passed a bill on the floor this week dealing with correctional programs. The legislation requires facilities that house alternately sentenced criminal offenders to notify the chief law enforcement officer in the county of the identities, criminal records and locations of the offenders.

Child custody and support was addressed this week in legislation sponsored by Representative Bob Patton (R-Johnson City). The bill insures that courts consider custodial parent failure to follow visitation orders or parenting plans as grounds for change in custody in favor of non-custodial parents.

Plans to issue a specialty license plate that says ''Choose Life,'' will probably pass this session, however the House and Senate currently differ on where proceeds from the bill should go. The Senate version directs the money to an anti-abortion hot line that would counsel pregnant women, while the House wants the money to help adoption efforts. I am co-sponsor of this bill with Representative Glen Casada (R-Franklin). The House Finance Committee was scheduled to take up the measure yesterday but instead delayed it for three weeks.

Several House Republicans including myself were sponsors of a bill that passed this week that will create a NASCAR specialty license plate. Half of the funds produced from the sales will got to the Tennessee State

Museum Foundation.

I want to let you know some other activities in addition to my legislative duties. Late last week I spoke to graduating seniors from the Wilson County high schools at the Wilson County Agricultural center in Lebanon. The students had spent the day working at businesses in their chosen career path. They are very excited to graduate and are looking forward to their future with enthusiasm. I also toured Jack Anderson Elementary School in Hendersonville. The principal, Mrs. Carolyn Lassiter, and I spent a great deal of time discussing the school, the teachers and families that make this wonderful school work so well. On Tuesday I attended the 10th anniversary celebration of the Modern Red SchoolHouse in Nashville. This organization consults with troubled schools around the country and is very happy to be based in Tennessee. After that I met with executives from various chain drug store pharmacies. We discussed the current condition of prescription drug usage in Tennessee, what pharmacies are doing to prevent the sale of ingredients to make meth amphetamine, the education and supply of pharmacists in Tennessee and around the country, health insurance and TennCare. It was very interesting to get their views on these issues. On Wednesday the Military Women of Tennessee came to visit the Capitol. I was present with the ladies for a photo with the Governor. After that I talked with them for an hour in the Governors conference room with Senator Thelma Harper (D-Nashville), Senator Mae Beavers (R-Mt. Juliet) and Representative Dolores Greshem (R-Somerville) who is herself a retired Marine Colonel having served our country for 20 years. I next attended the McKendree Village 40 year celebration. Many residents in the 57th district have family in McKendree Village and are very grateful for this facility. This morning I was very happy to attend the Mount Juliet Chamber Prayer Breakfast. Once again, this year it was a very nice event. Next Wednesday, at 7:30 am, I will make my bi-weekly appearance on the Coleman Walker radio show in Lebanon. On Friday, May 9th, Senator Mae Beavers (R-Mt. Juliet) and I will be at the Mount Juliet Chamber of Commerce for our monthly community meeting. I hope you will join us.

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A Weekly Wrap-Up of Legislative News

May 8, 2003

Lottery implementation bill passes house

Education requirements still unknown

(Nashville) - House Republicans voted this week for the General Assembly to consider educational and merit scholarship legislation before implementing the mechanics portions of the three-bill lottery package. House Democrats pushed the legislation to set up the lottery before the public is told what scholarship requirements will be.

Several states with lotteries experienced a drop-off in sales after the initial availability of lottery tickets. If lottery scholarship requirements are set too low, Tennessee will run out of money to pay for the program. For this reason, a bipartisan coalition of House and Senate members want to see the scholarship standards set high. This will keep the cost of the program within the amount of lottery money available as well as retain the best and brightest students in Tennessee colleges and universities.

During last fall's lottery campaign, proponents of a lottery said it should be modeled after Georgia's lottery program. House Republicans offered an amendment containing educational requirements passed by the House Education Committee that mirrors the standards of the Georgia HOPE scholarships. The amendment, however, was killed by House Democrats on the floor of the House.

Earlier in the week, House Democrats proposed a change in the scholarship requirements that would increase the cost of the program. High school graduates would not be required to have a certain grade-point average or ACT score to be eligible, but would be reimbursed for their college costs

if they maintained a certain standard once they enter college.

The implementation legislation that passed the House this week creates the Tennessee Education Lottery Corporation to be governed by a board of directors. The House version calls for a seven-member board with the governor appointing 5 members and the speakers of the House and Senate appointing one each. The current House plan calls for $3,000 scholarships for four-year schools and $1,500 for two-year colleges.

I voted against this bill for the following reasons. Action was heavy on the House floor as good committee amendments were rapidly stripped from the bill. Some of the amendments that were lost were the sunset provision on the lottery, restriction on the use of debit cards and checks, and the ban on player activated machines. An amendment was also added to the bill that puts a 6 percent state "privilege" tax on lottery prizes of more than $600. Many House Republicans tried to prevent a vote on the bill on Wednesday due to the Lottery Scholarship bill still being in committee but were defeated on this effort too. It is strongly felt that we should not implement the corporation with out knowing what the scholarship program will look like.

The bill now goes to a conference committee with the Senate.

Storms hit Tennessee

President Bush has approved federal disaster aid to help counties ravaged by tornadoes and severe storms that swept through Tennessee earlier this week. Twenty counties, mostly in West Tennessee, were included in the initial request, though more counties will probably be added. Along with Madison County, where a tornado killed 11 Sunday, they are Carroll, Cheatham, Chester, Crockett, Dickson, Dyer, Gibson, Hardeman, Haywood, Henderson, Henry, Houston, Lake, Lauderdale, Montgomery, Obion, Robertson, Stewart and Weakley. Wilson County had 7 injuries reported and multiple trees down and debris.

Budget

Governor Bredesen's budget bill ran into trouble this week in the Senate Finance Committee. It did not get enough votes to get out of the committee early in the week and extensive changes to the bill narrowly failed. Attempts to restore the Governor's 9% cuts in state-shared taxes were supported by several lawmakers. Many city and county officials feel those cuts could force higher property taxes or reductions in local services.

Bredesen was forced to make some concessions to obtain passage a day later. Republicans on the committee pointed out that TennCare is not being cut while other departments and programs are being slashed to pay for the state's health insurance program.

Legislation in the News

Representative H.E. Bittle (R-Knoxville) passed legislation out of the House Judiciary Committee this week allowing Tennessee to have a handgun permit "reciprocity" agreement with other states. This means that a valid handgun permit issued in another state is valid in this state if the issuing state also recognizes the validity of Tennessee handgun permits. Many permit holders feel it is unfair that they are not allowed to carry handguns for self-defense and the protection of their families when they are out of state.

Representative Curry Todd (R-Collierville) is working on a plan to lower the cost of prescription drugs for those who have chronic illnesses. The concept is to allow Everyone's Rx, an Austin, Texas-based company to do business in Tennessee. For $25, they process a patient's paperwork and have the drug manufacturer ship the medicine to the patient's home for $7 a month per prescription. The service applies only to chronic illness, not temporary conditions.

The seven year-old company requires patients to be U.S. citizens, have no prescription drug coverage and have an income of $16,000 or less for an individual or $25,000 or less for family coverage. TennCare patients are not currently eligible for the service because state law says that patients must have face-to-face contact with a pharmacist to receive prescription drugs. Rep. Todd is looking into a way to utilize the plan for those in TennCare or for those who have no coverage.

I am a co-sponsor of Representative Tom DuBois (R-Columbia) legislation that passed this week. The legislation prohibits the use of matricula consular cards as proof of identification for driver's license or insurance purposes. The cards are issued to foreign nationals by their nation's consulates in the United States. Because there is no uniform standard or regulation for their issuance, it is impossible to know if the person with the card is actually that person.

Republican Leader Tre Hargett (R-Bartlett) passed ethics legislation this week to increase the amount of information that lawmakers must disclose about their personal finances. The bill would require that legislators disclose the names of companies in which they invest or have some ownership. The measure passed 84-12, with three representatives not voting. I co-sponsored this bill with the leader.

Current law sets the investment level for disclosure at $10,000 or 5% or more ownership of business. Many feel the legislation to increase disclosure requirements is needed because some members of the General Assembly vote on matters in which they have a financial interest.

The Regional Medical Center at Memphis won a key House Committee vote on a bill that would cap the hospital's financial exposure in general liability and malpractice claims at $250,000 each. That arrangement will apply for three years while it works toward financial stability. The limits would not apply to malpractice claims made against physicians and other medical practitioners covered by their own insurance. The liability limits bill will save the hospital roughly $1.3 million in insurance premiums. It will also allow the Med to save about $1.2 million from its reserves set aside for paying liability claims that fall under its insurance deductible.

Last Friday was Read to Me day at Castle Heights Upper Elementary. I was invited to read to the 5th and 6th grade classes. Attached is a photo of Ms. Janie Johnson's 6th grade class. Representative Stratton Bone invited me to tour Sellers Farm Indian Mound later in the day. This was a fascinating tour of one of Wilson Counties oldest historic sites. On Wednesday I toured the TBI Crime Lab with Representative Jud Metheny. My radio appearance with Coleman Walker was postponed this week. I will be on next week with Coleman. This morning Senator Mae Beavers and I held our monthly community meeting at the Mount Juliet Chamber of Commerce. Later today, Bank of the South honored the graduating valedictorians and salutatorians at Five Oaks Country Club. Senator Mae Beavers, Representative Stratton Bone and I presented the graduates with Resolutions signed by the Governor in honor of their achievements. We also presented the City of Lebanon Police Department with a resolution honoring them for their recent accreditation by the Commission on Accreditation for Law Enforcement Agencies, Inc. After that I attended the dedication of Labry Hall at Cumberland University. The hall is an incredible asset to Cumberland University.

Next Monday Representative Diane Black and I will present the valedictorian and salutatorian of Hendersonville high school with resolutions honoring them for their achievements.