Legislative Update - Week of March 25, 2019

Updates on Bills Targeting Incentives and Confidential Information

Last week, House Committees discussed three different proposals relative to state and local incentives for economic development.  Following the hearings, and as a result of the involvement of the business community, one of the bills was defeated, and the other two were amended to address concerns.

First, HB 1265 was heard in the House Commerce Committee.  Entitled “The FACTS Act,” this legislation as originally drafted would have deleted several state economic development incentive programs while also potentially exposing the proprietary information of companies that receive state incentives.  Several business-related organizations expressed grave concerns with the proposal, and the bill was significantly amended.  

As amended, the bill would require “claw back” agreements with companies that receive capital investment grants through the state budget.  Also, the bill would remove four instances where the commissioners of revenue and economic and community development have discretion to make exceptions to statutory requirements to be eligible for job tax credits.  In committee, representatives from the Department of Economic and Community Development indicated that it no longer opposed the bill as amended.  They also assured the committee that there were other, more appropriate mechanisms under the law to provide economic development incentives in rural communities. 

Second, the HB 370 was heard in the House Public Service & Employees Subcommittee.  This legislation would make information relating to the “value of any government payment, fee, or other form of financial benefit paid or bestowed, or agreed to be paid or bestowed, by a governmental entity to a private entity” subject to open records requests.  The business community and other governmental entities expressed concerns that this bill could potentially expose confidential and proprietary information.  Following a full discussion, the bill failed on a voice vote.

Last, HB 327 was heard in the House Property & Planning Subcommittee.  Under current law, economic incentives for the development of brownfield sites are only available to counties with 80,000 or more residents.  As originally drafted, this bill would have made these incentives available to counties with less than 336,400 residents, and it would have resulted in the largest four counties being prohibited from such incentives.

Following opposition from the local governments of these counties and the business community, the bill was amended to remove any references to populations of residents.  With this change, all counties are now eligible for these incentives.

Bills to Watch this Week

HB 545 by Boyd / SB 1401 by Bell  - As amended, this bill would remove criminal liability for a person who carries a handgun on private property that has properly posted a prohibition of handguns.

Under current law, if a licensed permit holder carries a handgun into an establishment that has properly posted that handguns are prohibited, the person commits a Class B misdemeanor which is punishable by a $500 fine.  This bill would remove criminal liability for such a person if he/she;

• enters the building or property with the reasonable belief that the person is entitled to possess a firearm in that building or on that property; and
• immediately leaves upon becoming aware of the posting.

The bill appears to be another attempt to provide an avenue for permit holders to have the ability to disregard the rights of property owners. 

The House bill is scheduled for a hearing in the House Judiciary Committee tomorrow at 8:00 a.m.  The Senate bill has already passed the Senate Judiciary Committee, and it will be on the Senate Floor soon.

HB 949 by Lamberth / SB 805 by Johnson - As introduced, this bill would enact the Governor's Investment in Vocational Education Act. 

This bill is part of Governor Bill Lee’s legislative package.  Throughout his primary and general campaigns and since becoming Tennessee’s 50th Governor, Governor Lee has touted his priorities around career and technical education to address the workforce needs of the state. 

Under this bill, high school students will be eligible to take four, fully funded dual enrollment classes in courses related to programs identified as high-need areas in the workforce.  These classes will be funded through lottery funds, and they will provide critical skills so students leave high school better prepared.

The House bill is scheduled for a hearing in the House Finance, Ways & Means Subcommittee on Wednesday at 11:00 a.m., and the Senate bill is scheduled for a hearing in the Senate Finance, Ways & Means Committee tomorrow at 8:30 a.m.