2010 Report Archive

06/11/10

5/28/10

5/21/10

5/14/10

5/07/10

4/30/10

4/23/10

4/16/10

4/09/10

4/02/10

3/26/10

3/19/10

3/12/10

3/5/10

2/26/10

2/19/10

2/12/10

2/05/10

1/29/10

1/22/10

1/15/10

1/08/10

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2010 End of Year Report

The 106th General Assembly adjourned sine die in the early morning hours on Thursday, June 10, 2010. When legislators return in January, the 107th General Assembly will begin. This summer promises to be busy for legislators as all ninety-nine house members and half of the thirty-three senators vie for re-election. Much of the time of the waning days of session was spent with both parties’ discussions setting up symbolic votes that can be used by Republicans to denounce Democrats in upcoming campaign ads and by Democrats to denounce Republicans in upcoming campaign ads. With 2010 being a general election year and a gubernatorial election year, stakes are high with possible leadership positions opening in both the House and Senate.

Lawmakers overwhelmingly approved the state's nearly $30 billion annual spending plan that included more than $450 million in cuts to state agencies. The $29.9 billion budget passed early Thursday, June 10, 2010, for the 2010-2011 fiscal year. The budget spends about $245 million from the state’s Rainy Day fund, but almost $600 million will remain in reserve - including a budgeting device called "core reserves," which sets aside money for a designated purpose in the next budget year though it could be taken for other purposes if the 2011 Legislature decides to do so. The budget contains a provision for a one-time bonus of $50 per every year of service for state employees. Employees will receive a minimum of $150 and a maximum of $1,250, but the bonus is contingent upon the state collecting over projected revenues.

The budget cautiously allocates federal funding that has not yet been approved by the U.S. Congress, but funds only contingency items. The funds will provide for upgraded radios for state troopers, an unnamed economic development project, the demolition of several dilapidated buildings at the University of Tennessee’s Health Sciences Center, and the Civil Rights Museum. A portion would also be used on a post-flood tourism campaign to demonstrate that “Tennessee is open for business.”

In light of the devastating floods at the beginning of May, lawmakers included flood relief in the budget to the tune of $19.9 million. The budget eliminates the state and local sales tax on major appliances, residential building supplies, and residential furniture. To receive a refund from the Department of Revenue, flood victims must have purchased the equipment between May 1, 2010, and September 30, 2010. The refunds are allocated out of the state’s General Fund.

For TWSRA, we were once again able to stop any legislation advocating for wine in grocery stores. It is likely this issue will be a hot topic in 2011. The elections are fast approaching, as the Gov’s seat is up for grabs, and all House districts and half of the Senate seats are also up. It should be an interesting fall!

We were able to express our concerns with the ABC over legislation they initiated due to a stinging Comptroller’s audit. The legislation would require background checks on all applicants for a retailer’s license. Because of our concerns and the cost associated with the bill, it did not pass.

A significant piece of legislation passed on the last evening of session-SB 274/HB 499, creates a new type of alcohol license. The bill authorizes the sale of wine and alcoholic beverages for on-premises consumption at appropriately licensed "limited service restaurants" that are located in counties that have adopted liquor by the drink. Currently, a restaurant must generate over 50 percent or more of its revenue from the sale of food to qualify for a liquor license. This bill allows for the gross revenue from the sale of prepared food to fall under 50 percent. A tax is currently assessed on facilities serving alcohol. The tax for limited service restaurants will be based on the percentage of the limited service restaurant's gross sales that are derived from sales of prepared foods, ranging from $2,000-$4,000. The new legislation authorizes businesses that are presently licensed to sell wine and alcoholic beverages for on-premises consumption as restaurants, but that do not meet the food sale requirements to qualify for such a license, to exchange such licenses for limited service restaurant licenses. The bill also specifies that the two liquor stores with the city of Lakewood will be able to continue to be issued licenses for the retail sale of alcoholic beverages if Lakewood gives up it's charter.

Bills of Interest

• The alcoholic beverage commission was extended for one more year. The bill contains the language that no lobbyist may serve or be appointed to the commission if a business activity remains regulated by the commission.

• The legislature, as expected, overrode the Governor’s veto on guns in bars.

• The legislature considered SB 2625 Faulk/SB 2688 Lundberg, a bill which would require all fees, fines, and other penalties be paid to the alcoholic beverage commission before license renewal. After many discussions with the sponsor, the bill was later taken off-notice.

We appreciate the opportunity to represent your interests on Capitol Hill. Please let us know if you have any questions or concerns.