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PREVIEW OF THE 111TH GENERAL ASSEMBLY

2019 Legislative Session
Contact: Darlene Schlicher (615) 741-6336 or email: darlene.schlicher@capitol.tn.us

(NASHVILLE), December 17, 2018 -- The General Assembly will convene on January 8th to
begin the 2019 session of the 111th General Assembly. Education, criminal justice reform, rural
economic opportunities and continuing efforts to curb opioid abuse are among a host of issues
expected to be on the agenda as this year’s session brings much change to Capitol Hill.

The State Constitution calls for lawmakers to meet in an organizational session before the regular
business begins for the two-year assembly. Among tasks to be completed during the brief
organizational session are elections of the House and Senate Speakers, as well as two of the
state’s constitutional officers. The State Constitution requires Tennessee’s Treasurer and
Comptroller be elected every two years in a joint convention of the General Assembly, while the
Secretary of State is elected every four years.

The organizational session will end with a joint convention of the General Assembly on January
19th to inaugurate Tennessee’s 50th governor, Bill Lee. The first day of the regular 2019
legislative session will immediately follow the inauguration with appointments to standing
committees among the first orders of business.

Organizational Session
The 2018 election brings forth the most changes in recent history. The 99-member House of
Representatives has 28 new members. The 33-member Senate has four new members, with two
more to be elected by spring. Although you will see many new faces on Capitol Hill, expect the
General Assembly to continue to be a strong conservative body focused on robust economic
growth, low unemployment, low taxes and sound management of taxpayer money.

There will be many changes in the General Assembly’s top leadership during the 2019-2020
legislative sessions, as well. Republicans and Democrats in both the Senate and House of
Representatives elected new members to their top leadership positions with only a few
exceptions. An exception is Lt. Governor Randy McNally who was unanimously nominated to
serve a second term as Speaker of the Senate / Lt. Governor.
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In addition, expect numerous important committees in the General Assembly to have new
leadership. Two chairmen in the Senate were recently elected to leadership positions and
changes are likely to be made in top committee positions in the House of Representatives.
Committee officers are appointed by the House and Senate Speakers.

Governor-elect Lee is also bringing new leaders to key state government positions. These
appointments are important in setting the course for the governor’s administration.

Budget
Continued Conservative Budgeting -- Passage of a conservative balanced budget that highlights
education, job creation, and public safety will be a priority again during the 2019 legislative
session. With a new administration on board, the General Assembly will await their proposal to
fund state government for the 2019-2020 fiscal year. The budget could be presented a little later
than usual as is normally the case with a new governor who has just been inaugurated. Like
Governor Haslam, Governor-elect Lee has said he will be looking for efficiencies in state
government to help fund his priorities to move Tennessee forward. Capping or minimizing the
growth of state government will also be a high priority in his spending plan. In the meantime,
lawmakers will continue to be proactive through the budget process to keep Tennessee a high
growth, low tax state which is fiscally responsible, while meeting the needs of the state’s most
vulnerable citizens.

Healthy Revenues / Rainy Day Fund -- Tennessee has experienced healthy revenue collections
during the first few months of the 2018-2019 fiscal year. The State Funding Board met on
November 26 to set a projected rate of growth for the current and upcoming state budget years.
They projected the state’s overall revenues will grow at a modest rate of between 2.35% to
3.25%, with the general fund growth ranging between 2.2% to 3.2% during the current 2018-
2019 fiscal year. For the upcoming 2019-2020 fiscal year, the Funding Board estimates growth
between 2.73% to 3.13% in total revenues and between 2.71% to 3.21% for the general fund.

Tennessee is ranked as one of the best financially managed states in the nation, with the
highest AAA bond ratings issued by all three major credit rating agencies. Conservative
budgeting and a healthy Rainy Day Fund, which is the state’s savings account in case of a
downturn in the economy, is a big part of that success.

Tennessee tapped into nearly $800 million from both the Rainy Day Fund and TennCare reserves
during the last economic recession. Currently the Rainy Day Fund is at $861 million, well on the
way to a target of $1 billion. Governor-elect Lee has already expressed his intent to ensure the
state has adequate funds in reserve to help the state withstand an economic downturn in the
future.

New Supreme Court Decision could lead to discussion of further tax cuts -- Tennessee’s
finances could be positively impacted as a result of action taken by the U.S. Supreme Court in
June to overturn the Quill decision. That decision effectively prevented states from collecting
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sales tax from retail purchases made over the Internet or other e-Commerce routes unless the
seller had a physical presence in the state. Today, internet commerce is used more commonly by
families purchasing large majorities of their goods and services online.

The Supreme Court ruled that the physical presence aspect of Quill was “unsound and incorrect”
with the state of current technology. This is the case made by brick and mortar stores that
claimed the playing field should be leveled as online stores have largely escaped taxation.

Although Tennessee requires purchasers to self-report and pay taxes on online sales, the High
Court decision would likely increase state sales tax revenues and could open up the door for
continued tax cuts during the 111th General Assembly. Lt. Governor Randy McNally has called
for tax cuts with any revenue windfall that could occur as a result of this decision.

The General Assembly has cut or reduced taxes every year since 2011, saving taxpayers more
than $800 million. This includes reducing the sales tax on food by nearly 30 percent, phasing
out the Hall Income tax, eliminating the gift and inheritance taxes, and cutting taxes on
manufacturing to enhance job creation.

Professional Privilege Tax – The professional privilege tax could be one of several tax cuts
considered. The $400 tax is an annual charge levied on individuals who have an active license
to practice professions such as accountants, architects, and engineers. Tennessee is one of only
six states that impose a professional privilege tax. Lawmakers will likely take a closer look at it
during the 111th General Assembly.

Decoupling – Another issue that could be on the legislative agenda this year is decoupling. Last
session, the General Assembly passed legislation to decouple Tennessee’s franchise and excise
taxes to help address the unintended effect of federal tax reform on Tennessee businesses. There
could be ongoing discussions regarding that issue in 2019 as the state continues to monitor the
impact of those changes.

TN Taxes are low -- The state ranks 50th lowest in the nation in state and local tax revenue as a
percentage of personal income, 48th lowest per capita for state and local taxes and is ranked 49th
lowest for Tax Freedom Day.

Jobs and Rural Development

Jobs / Economy -- Like Governor Haslam, expect to see Governor-elect Lee run state
government with a results-driven business acumen which reflects his background as a successful
CEO for a company which has been lauded as one of the best places to work in Tennessee.
Expect him to work with the legislature to continue efforts to bring new and better paying jobs to
Tennessee.

Over the past several years, the General Assembly has made great strides in preparing students
for the 21st century marketplace and in creating a business-friendly climate. These efforts have
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resulted in Tennessee receiving numerous accolades for job creation, including being ranked first
in the nation for job growth among small businesses. In November, Tennessee had the fourth
highest small business job growth and the third highest wage growth in the nation.
Unemployment in Tennessee is currently at historic lows due to this robust economic growth
with a positive outlook for continued success.

Rural TN / Broadband – There will be emphasis on the needs of rural Tennesseans in the
upcoming legislative session. Governor-elect Lee has announced plans to focus on economic
development and agricultural advancements that will support jobs and propel progress in the
state’s rural communities. This effort could include development of agricultural education
programs for students in Tennessee’s public schools.

Agriculture is 13 percent of the state’s economy, but many believe the industry is still emerging,
including development of the technology industry which can advance it.

Another issue that could be on the table this year is the expansion of broadband services into
rural and underserved communities. Such expansion would build on the Broadband
Accessibility Act passed by the General Assembly in 2017. That law improved access through a
three-year investment of $45 million to spur deployment in rural unserved areas of Tennessee,
opening them up to economic investment and job growth.

Criminal Justice Reform

Criminal Justice Reform – Criminal justice reform will be a key issue during the 2019
legislative session. Governor-elect Lee has called the issue a priority saying, “We need to be
tough on crime and smart on crime, at the same time.” Lee believes an important step in
reforming the system is considering intake to incarceration in a different way. A key goal in this
effort is to reduce recidivism, which currently stands at approximately 47 percent in Tennessee.

There is much common agreement that any reform of the criminal justice system should be
efficient and place as small a burden on taxpayers as possible, while maintaining strong
protections for public safety.

Tennessee’s felon inmate population has grown by 11.7 percent over the past five years, with
approximately 22,000 inmates housed in state prisons and another 8,000 felons held in county
jails. Ninety percent of these inmates will leave prison and return to society after serving time
behind bars. Approximately 76,000 are on probation, parole or in community supervision
programs.

Tennessee Supreme Court Chief Justice Jeff Bivins has also called for comprehensive sentencing
reform, which has not been dealt with in almost 30 years. A reform effort could particularly
focus on rehabilitation of non-violent offenders. Areas that could be addressed in a top-to-
bottom look include re-entry programs, expungement, alternatives to incarceration, as well as the
effectiveness of drug courts and treatment and recovery facilities.
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The General Assembly has increased the number of drug courts, veteran’s courts and mental
health courts over the past several years. Successes in these courts could continue to bolster their
numbers in the 2019 session as part of an overall criminal justice reform effort. Lawmakers
could also examine private prison reentry programs which have proven successful. Governor-
elect Lee has talked about the success of Men of Valor, a non-profit ministry program to help
prisoners re-enter society, and roles such organizations or model programs developed by them
could play in reducing recidivism.

Any reform effort will also take a look at barriers to success in keeping prisoners from returning
to a life of crime. Last year, a new law was approved to help ensure occupational licensing does
not keep offenders who have served their time in prison from obtaining employment and getting
a fresh start in life. Each year, about 5,000 Tennesseans leave state prisons after serving for
crimes they have committed. Expect to see the General Assembly continue to look at workforce
readiness, including educational opportunities that will help prisoners learn trades and skill sets
which set them up for successful re-integration into society.

Education
Vocational Education – Expect education to be the centerpiece of Governor-elect Lee’s 2019
legislative agenda. As a businessman and a master plumber, he has called for education
improvements that will translate into good paying jobs for students. He has called for improved
vocational, technical and agricultural education in public schools.

There is currently a deficit of workers in “skilled trade” jobs so expect his agenda to include
initiatives that prepare students for some of the most sought after jobs in Tennessee’s
employment market. Accordingly, legislation could be on the table to engage private sector
employers in more meaningful work-based learning programs or apprenticeships in the state’s
public schools, creating pathways for students who are not going to college.

This will complement efforts made over the past several years to improve high school and
college graduation rates and to create a qualified workforce for new and existing businesses by
improving programs at Tennessee’s community colleges and Centers of Applied Technology
(TCATs). These programs have been very successful with an 81.7 percent graduation rate, 87.7
percent job placement rate and 93.2 percent licensure exam pass rate. Expect continued focus on
Career and Technical Education (CTE) student access at the higher education level as well.

Dual Enrollment / HISET -- In an effort to continue to improve high school and college
graduation rates, expect more discussion about expanding dual enrollment to more high school
students. Similarly, expect enhanced efforts to get students who don’t have a GED into a HiSET
program so they can advance and obtain a post-secondary credential or degree. The HiSET
exam is a five-part test used in the process of issuing a high school equivalency credential. It
enables students to further their education, advance in their career, join the military or meet
federal education requirements.

TN Ready -- Expect the state’s TNReady tests to be a topic for legislative debate in 2019. Last
session, legislation was approved to help protect students and teachers from any adverse action
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resulting in whole or in part as a result of student achievement data generated by the 2017/2018
TNReady assessments after the system experienced widespread problems.

Governor-elect Lee wants to continue the dialogue that Governor Haslam began with teachers
and parents earlier this fall regarding improvements in testing. Haslam conducted a listening
tour across the state to see what changes need to be implemented, which included providing
districts with easier access to technology such as laptops. Lee has also called for improving the
working environment for educators through competitive compensation and professional
development opportunities.

Parental Choice -- Legislation could also be introduced in the new legislative session for
expanding public school education savings accounts (ESAs). The program, which launched in
2016, gives parents of students with special needs access to an Individualized Education Account
(IEA). An IEA can be used for a variety of educational expenses, including private school
tuition, private tutoring, learning therapies and more. Advocates for public school savings
accounts say education choice works to empower parents to customize their child’s education to
fit his or her unique needs.

Governor-elect Lee supports looking at parental school choice initiatives, a move that is popular
with 65 percent of Tennesseans according to a Mason-Dixon poll conducted in last year. The
poll asked respondents whether they favored allowing parents to use their child’s education tax
dollars for a public, public charter or private school.

Revamp Kindergarten Portfolio / Quality Early Education -- Legislation was adopted during
the 2018 session addressing concerns in the Department of Education’s new Pre-K Growth
Portfolio Model. The model was put into place during the 2017-2018 school year to measure
yearly academic growth for Pre-K and kindergarten students; however, the program experienced
several early implementation problems. These problems included a lack of appropriate training
for teachers, computer system issues and difficulties with the way the portfolio’s standards were
clustered together. A new law passed by the General Assembly in 2018 directs the Department of
Education to increase training and to reevaluate the program with significant input from teachers
to make needed improvements. Similarly, expect efforts this year to revamp the Kindergarten
portfolio.

The issue of quality early childhood education could also be a topic for discussion in 2019.

3rd Grade Reading Literacy -- Expect legislation to help ensure that 3rd grade students are
proficient readers and are on grade level before they enter the 4th grade. Studies show that if
students are not proficient readers when they enter 4th grade, much of the curriculum they will
be taught will be incomprehensible.

Teacher Preparation Programs / Report Card -- The legislature will likely continue efforts to
improve the effectiveness of teacher preparation programs at Tennessee’s colleges and
universities. Research shows that teachers have the most impact of any in-school factor on
student achievement. The goal is to ensure that students pursuing degrees in education are
prepared to be in the classroom and that quality programs are in place to ensure their success.
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Efforts could also extend to teacher education program report cards to see where improvements
can be made in Tennessee’s colleges and universities.

Reducing Recidivism through Education -- Governor-elect Lee has expressed his desire to
provide education programs in a larger criminal justice reform effort to help reduce recidivism.

ACT Testing – ACT testing may be back on the legislature’s agenda after students at a Wilson
County high school experienced problems with administration of the test this fall. This follows
an unsuccessful resolution of problems experienced with the company’s testing at two other
Tennessee high schools last year. All Tennessee public school students must participate in a
postsecondary readiness assessment such as the ACT or SAT tests. An unsuccessful resolution
could mean changes would be considered in favor of SAT testing.

BEP Formula for Funding Education -- Tennessee’s Basic Education Program (BEP) could be
a topic for debate during the 111th General Assembly. This is the funding formula through
which state education dollars are generated and distributed to Tennessee schools. The BEP
represents a huge portion of the state budget – over $4.7 billion, or more than a quarter of total
state dollars in the budget. The BEP formula is also exceedingly complex, with 46 different
components that generate funding and an equalization process that sets state and local shares of
funding. The formula was created in 1992 after a group of small Tennessee school districts
banded together in the late 1980s to sue the state for more funding. The legislature revised the
formula in 2007 to a version known as BEP 2.0. Governor Lee has indicated that he might ask
for a closer look at the formula to see if it can be improved.

Health and Drug Abuse

Curbing Opiate Addiction -- Expect the General Assembly to continue efforts to curb opiate
abuse in Tennessee during the 2019 legislative session. A major legislative strike at the problem
was made during the 2018 session with a three-pronged approach for more effective law
enforcement, treatment and prevention. In following, the legislature appropriated $16 million for
this purpose last session, with $10 million going for treatment. The General Assembly also took
steps to prevent opioid abuse and addiction by focusing on education, data collection, neonatal
abstinence syndrome and adverse childhood experiences. Lawmakers will be looking carefully
at how these laws are working and consider additional measures, especially expansion of
treatment, which can be taken to curb the problem which has been at epidemic levels.

Fentanyl and Heroin – The legislature will also look at how to reduce the flow of illegal drugs
coming into Tennessee, including fentanyl and heroin. These dangerous drugs have been on the
rise over the past several years and are especially fueled by efforts to reduce prescription opiates.

Healthcare Access and Support -- The General Assembly will continue to look for innovative
ways to improve the quality and accessibility of healthcare for Tennesseans. Last year,
lawmakers passed the Rural Hospital Transformation Act to help support the financial viability
of the state’s rural hospitals. The legislature has also approved significant bills over the last
several years to improve lifesaving protocols for stroke and heart attacks, improve healthcare
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access through telemedicine, and promote the use of free clinics and unused prescription
medication.

Likewise, Governor-elect Lee has called on expanding the availability of health care options
through innovative investments in telemedicine and rural health residency incentives. He also
wants to address the escalating costs of health care.

In addition, the legislature will also be closely watching any action that could come from
Washington to give states more flexibility to control their Medicaid programs through block
grants. Under the restrictive guidance issued by the Obama administration, states largely lost the
power to advance and adopt their own solutions for their Medicaid programs. Block grants
would allow states, which know much better than the federal government what works best for
their citizens, to get out from under onerous rules imposed by the Affordable Care Act, also
known as Obamacare.

Nurses -- The Tennessee Nurses Association could make another push during the two-year 111th
General Assembly to give them full practice authority to diagnose and treat patients, including
the ability to prescribe drugs.

Medical Cannabis -- Legislation will spill over from the 110th General Assembly to legalize
marijuana for limited medicinal purposes. A measure called the TRUMP (Tennessee
Responsible Use of Medicinal Plants Act) was announced for the 2019 session last summer.
That legislation would expand medical research with treatment options that utilize cannabis and
cannabis extracts under medical supervision.

Proton Therapy – Legislation could be considered again this year that requires health insurance
to cover proton therapy at the same cost as radiation therapy for state employees under certain
conditions. It passed in 2018 but was vetoed by Governor Haslam.

Tennesseans with Disabilities – A special legislative committee held meetings this past summer
and fall to review disability services in the state with the goal to better streamline them and
improve their quality, access and affordability. The group met in all three grand divisions of the
state to solicit input from consumers, advocates, providers and state departments. The
lawmakers believe that more coordination between state departments will aid in improving
efficiencies and help ensure that no one falls through the cracks. The committee heard continued
concerns regarding a shortage in the workforce for workers who serve the disabled. Last session,
the General Assembly provided additional funds to raise the hourly rate of reimbursement paid
by the state for professionals who provide care to disabled Tennesseans. Expect continued
efforts to be made for this purpose. The group will hold their final meeting in January and will
make legislative recommendations at that time.

Environment and Recreation

Aquatic spraying – Among environmental legislation expected to be debated in the Tennessee

General Assembly this year is the use of aquatic herbicides in Tennessee’s lakes or rivers. The
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herbicides are used to kill submerged vegetation by waterside landowners after obtaining a
general permit from the Department of Agriculture. The vegetation can be especially
troublesome for dock owners.

Fishermen have objected to the practice due to their belief it enhances fish habitats and is
beneficial for fisheries management. They and others who are opposed to spraying claim that
chemicals used in herbicides could pose health risks. There has also been a call for more
disclosure and transparency regarding notice requirements in the permitting and spraying
process. An Aquatic Spraying Study Committee of the Senate Energy, Agriculture and Natural
Resources Committee has heard testimony from both sides of the issue. They could have some
recommendations on the matter as the legislature convenes.

CNVs on Tennessee Waters -- The Senate Energy, Agriculture and Natural Resources
Committee could also hear debate in 2019 regarding rules and fees proposed by the Tennessee
Wildlife Resources Agency (TWRA) for Commercial, Non-motorized Vessels (CNVs) on
Tennessee’s waters. CNVs include kayaks, tubes and canoes used by commercial outfitters for
recreational use. In addition to public safety, the stated purpose is to provide a more effective
system of regulation of the vessels to promote protection of the waters and preserve the state’s
natural resources. The proposed rules and fees have drawn resistance from outfitters who
believe they are too stringent.

Labeling / Lab Grown Meat -- Among farming issues that could come before the 2019
legislative session is the proper labeling of cell-based, or lab grown, meat in Tennessee.
Legislation has been filed prohibiting the misrepresentation of meat or poultry to consumers
when it is not the result of a slaughtered animal. Lab grown meat is produced in a laboratory
from adult animal muscle stem cells. Several start-up companies are working on marketing the
product which looks and tastes more like meat than plant-based mimics which lack animal tissue.
The issue is also being debated at the federal level.

Tennessee State Fair – Relocation of the Tennessee State Fair is another farm issue that could
come before lawmakers. The fair, which has been held for approximately 150 years, helps
showcase agriculture’s contributions to Tennessee and educate the public about farming and
livestock. A professional soccer stadium is planned for the state fairgrounds in Nashville.

State and Local Government / Elections

Elections – The State Legislature has been asked by the GOP State Executive Committee to
consider action to register voters in Tennessee by party affiliation and restrict party primaries
accordingly. Voters currently don’t register and are allowed to pick the primary ballot of their
choice from one election to the next. State law, however, does require primary voters to be bona
fide party members or be willing to declare allegiance.

The stated purpose of the executive committee’s proposal is to maintain the integrity of elections
and elect the best-qualified candidates. They are concerned Tennessee is vulnerable to crossover
voting. This is a practice where voters with allegiance to one party vote in the opposite party’s
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primary election to elect the weakest candidate, either giving them an advantage in the general
election or helping to elect those who are closest to their own philosophical beliefs. The
proposal has received early opposition from high-profile elected officials in both political parties
including Governor Haslam and Governor-elect Lee. Tennessee is one of six states with
partially open primaries, while 24 states are either fully open or allow independent voters to
choose in which primary they want to vote.

The State Executive Committee has also asked the 111th General Assembly to create a
requirement for a special election to be called in the case of a vacancy within 45 days of the
general election and to increase the number of signatures required to run for public office to be
equal to the level of the office being sought.

Another separate measure that could be debated by the legislature this year is the use of
electronic voting machines that have a paper trail. Currently, 14 of Tennessee’s 95 counties
produce some sort of paper record for independent recounts or auditing purposes.

Transportation
The Senate Transportation, Safety and Homeland Security will continue their work to ensure
safety on Tennessee’s roads. They will also continue to monitor progress being made on
transportation projects authorized as a result of the Improving Manufacturing, Public Roads and
Opportunities for a Vibrant Economy (IMPROVE) Act. Other issues that could come before
them include legislation that permits motor vehicle registration plates to be renewed every 24
months instead of 12 months and a proposal calling for half of revenue allocated to the
Tennessee Arts Commission from the sale of new specialty earmarked license plates be used for
hiring art teachers in priority schools.

An issue that repeatedly comes before the Transportation Committee each year is the use of
hands-free cell phones while driving. According to the Insurance Institute for Highway Safety,
16 states and the District of Columbia ban hand-held cell phone use while driving. Thirty-eight
states and Washington, D.C. ban all cell phone use by newer drivers.

Safety of motorists traveling under Interstate overpasses in Tennessee could also be discussed.
The renewed interest in the issue comes after the recent death of a man who was killed by a piece
of pavement being thrown off an overpass in Nashville while he was driving to work. One
lawmaker has called for more fencing to be installed as a preventative measure.

Government Accountability
Open Records Laws – The work of an ad hoc committee tasked with studying Tennessee’s open
records laws will come before state legislators during the 111th General Assembly. Lt. Governor
Randy McNally and House Speaker Beth Harwell formed the committee last June after a report
showed the number of statutory exemptions to Tennessee Public Records Act, which is also
called the Sunshine law, has grown to 538 since its enactment in 1957.
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The Ad Hoc Committee members have been reviewing the exemptions to see what loopholes can
be closed. Committee members found some exemptions are tied to the federal Health Insurance
Portability and Accountability Act (HIPAA), while others are linked to federal funding
requirements. Other common reasons for exemptions include the protection of private
information of citizens, such as driver’s license numbers, social security numbers or other
identifying information which can be used in thefts.
One recommendation from the Ad-Hoc Committee could be that the General Assembly’s
Government Operations Committees review any requests for future exemptions to ensure records
are as open as possible. Due to the complexity and large number of current exemptions, the
committees might also be charged with looking at which of them need to be removed, changed,
or placed in the “sunset cycle” where they will be reassessed on a schedule. That work would be
done as departments or entities of state government come before the Government Operations
Committees for their regularly scheduled sunset reviews.
Another government transparency issue that could come before lawmakers this year concerns
lawsuits settled by schools or other public institutions utilizing taxpayer dollars. It stems from a
federal civil lawsuit recently settled by a company which provides comprehensive insurance
coverage to the Hamilton County School System in a case involving sexual assault. Such
litigation is controlled by the insurer, including any sealed documents in the case that could have
been public record.
Review of Boards and Commissions -- The Senate Government Operations Committee will
review 56 state governmental entities which are due to sunset in 2019, including the Departments
of Environment and Conservation, Commerce and Insurance, Education, and Labor and
Workforce Development. Sunset refers to the automatic termination of a government
department, agency or program at the end of a specified time period unless it is reauthorized by
the legislature. The idea is to cut excess government spending by holding state agencies
accountable through a periodic review. The review also ensures that they are completing their
mission in an efficient and effective manner. The Government Operations Committee will also
be reviewing the U.S. Supreme Court decision that allows states to collect internet sales tax from
out of state businesses.

Faith-Based and Community Initiatives – Governor-elect Lee has expressed his support for the
creation of a Faith-Based and Community Initiatives Office. The office would serve as a single
resource for faith-based and community service organizations in the state who wish to be a part
of the solution for Tennessee. The office would serve as a clearinghouse for organizations to help
them work together to best serve Tennesseans in need.

Other Issues

Drive-by Shootings / Minors -- Legislation which did not pass last session aiming to strengthen
penalties against those convicted of harming a minor during a drive-by shooting will be heard
again this year. The bill is named the JaJuan Latham Act, for a 12-year-old, Knoxville boy who
was killed in a drive-by shooting while in the back of his father’s parked car. The bill punishes
certain aggravated assault offenses one classification higher if the crime was committed by
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discharging a firearm from within a motor vehicle and the victim was a minor at the time of the
offense.
Red Flag Bill – Lawmakers will consider a “red flag” bill this year to allow law enforcement and
family members to seek a court order to temporarily remove guns from potentially dangerous
situations. The stated purpose of the proposal is to be proactive in preventing gun violence while
containing robust due process protections to ensure a person’s access to guns is limited only
when a court finds there is clear and convincing evidence these individuals present a risk to
themselves or others.

Green Alert – Legislation has been filed to establish a statewide “Green Alert” system that
would provide rapid dissemination of information to help quickly identify and locate a missing
veteran or active member of the Armed Forces, National Guard, or military reserves who is at
risk. The Green Alert would work like other public notification systems such as an Amber Alert
or Blue Alert. Under the legislation, a state-wide notification would be issued if a veteran is at
risk or missing due to a physical or mental health condition related to his or her service.

Horse Racing – There could be renewed efforts to bring legislation to establish pari-mutuel
horse racing in Tennessee. Last year, a bill to establish a Tennessee Horse Racing Commission
stalled in legislative committees. This issue could come before the General Assembly again
during the two-year 111th General Assembly.

Sports Gambling – Legislation has already been filed to bring legal sports betting to Tennessee.
Last May, the U.S. Supreme Court struck down a federal ban on sports betting, allowing states to
decide for themselves whether they want to allow it. Currently, gambling is illegal in Tennessee
with exemptions of the state lottery, certain charitable events approved by two-thirds of the
legislature and fantasy sports. Legislation has been filed for 2019 that would allow communities
to approve it via a referendum and would create a Gaming Commission to regulate and oversee
it. If approved, the act would impose a 10 percent tax on revenue gained from the practice.

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