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CIGARETTE TAX HIKE IN TENNESSEE ON HOLD
Gov. Phil Bredesen's proposed 40-cent cigarette excise tax hike has hit a wall in the state legislature. At the governor's request, the Senate Finance Committee postponed for two weeks a scheduled vote on the tax bill. Senate Democratic Leader Jim Kyle said he lacked enough votes on the panel to approve it and send it to the full Senate. "Right now I'd say it's in trouble, because the tobacco lobby has outworked the education community - as evidenced by the fact that I have local school board members in Shelby County who do not think the tax [increase] is necessary," Kyle said to the Commercial Appeal. The governor's plan would raise the cigarette tax to 60 cents a pack. Gov. Bredesen said his "Schools First" initiative depends on a "modest 40-cent increase" in the cigarette tax. The Senate Finance Committee has a 6-5 Republican majority - many of whom say that increased state revenue from existing taxes is sufficient to fund the education initiatives. And at least one Democrat, Sen. John Wilder, said he's not ready to vote for a tax increase until the legislature approves an overall state budget in May.
Gov. Phil Bredesen said he supports a proposal to create a toll road authority in Tennessee to consider charging for access to new roads and bridges built in the state. Bredesen said charging tolls could deflect the need to raise the gasoline tax to pay for new road projects. A previous version of a state toll road authority was disbanded after years of inaction. Bredesen had previously said he was not opposed to charging for access, but that he was not certain where toll roads and bridges would be located. The proposal sponsored by House Transportation Chairman Phillip Pinion, D-Union City, and Sen. Diane Black, R-Gallatin, would only permit tolls on roads built after the measure is signed into law.
In other news, Medical-Mal tort reform was passed in the Senate Judiciary Committee on Tuesday. All parties came back to the table and agreed on legislation that isn't as ambitious as anyone had hoped. In fact, most involved are unhappy with what the "final" bill accomplishes, but any agreement is seen as a major step forward toward resolving other issues down the road. According to the amendment files with the Senate committee, lawyers will have to give written notice to each physician or health care provider against whom a claim is being made at least 60 days prior to the filing of a complaint based upon medical negligence in any Tennessee court. Also, within ninety days after filing a complaint involving any medical negligence action in which expert testimony will be brought in, a plaintiff or plaintiff's counsel must file a "Certificate of Good Faith" that states that they have consulted with a medical expert and there is reason to proceed with the case. Those who violate this rule on three occasions would be subject to penalty.
Testimony also continues in both the Senate and the House Commerce committees on the Competitive Cable Video Act. This week, the Tennessee Municipal League voiced opposition to the bill in the House committee, and next week, the committee will hear from the Tennessee County Services Association and the Cable industry.
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Tennessee Legislation Service (c) 2007 M. Lee Smith Publishers
Thursday, March 29, 2007 |
BANKING & CREDIT |
SB 1562*
HB 2133
(Full Text) |
Sanctions against deferred presentment services. Specifies that deferred presentment establishments have 30 days to appeal sanctions imposed against them by commissioner of financial institutions. Also specifies that no civil penalties are due until the 30-day period has expired and no appeal has been filed. Permits commissioner to suspend the operation of a licensee until the civil penalty is satisfied in full. (S: Herron; H: Fitzhugh)
Senate Status: Referred to Senate Commerce, Labor & Agriculture.
House Status: Referred to House Commerce Utilities & Banking Subcommittee. |
SB 2180
HB 2238*
(Full Text) |
Licensure of check cashing businesses revised. Deletes licensed money transmitters and registered industrial loan and thrift companies from those excluded from Check Cashing Act; allows those entities to continue cashing payment instruments without a license until the commissioner of financial institutions has acted on such entities' application if the application was made before December 31, 2007. (S: Kyle; H: Pitts)
Senate Co-Sponsor: Finney L.
House Co-Sponsor: Odom
Senate Status: Senate passed 03/26/2007.
House Status: House Commerce 03/27/2007 recommended. Sent to House Finance, Ways & Means. |
COMMERCIAL LAW |
SB 0936
HB 0592*
(Full Text) |
Worthless check collections clarified. Removes the requirement that a person paid with a worthless check must choose whether to pursue the claim on the check under either the civil or the criminal provision. Applies the inferred fraudulent intent standard in the criminal provision to the civil provision. (S: Burks; H: Fincher)
Senate Status: Senate Commerce, Labor & Agriculture deferred to 04/03/2007.
House Status: House Civil Practice Subcommittee deferred to 04/10/2007. |
LABOR LAW |
SB 0036*
HB 0023
(Full Text) |
TN Minimum Wage Act. Increases state minimum wage to $6.15 per hour except for tipped employees. Increases hourly wage for tipped employees to $3.13. (S: Jackson; H: Shepard)
Senate Status: Senate Commerce, Labor & Agriculture deferred to 04/03/2007.
House Status: Referred to House Government Operations. |
LOTTERY |
SB 2018
HB 1795*
(Full Text) |
Prohibits sale of lottery tickets at certain businesses. Prohibits the sale of lottery tickets or shares at any business holding a license or permit for on-premises consumption of alcohol or beer. (S: Burchett; H: McCord)
Senate Status: Referred to Senate State & Local Government.
House Status: Referred to House State Government Subcommittee. |
TAXES BUSINESS |
SB 0690*
HB 0768
(Full Text) |
Tax on money orders by non-citizens. Imposes 25% tax on checks, drafts, warrants, money orders, traveler's checks, or other financial instruments purchased by non-US citizens. (S: Bunch; H: Campfield)
Senate Status: Taken off notice in Senate Commerce, Labor & Agriculture 02/26/2007.
House Status: Referred to House Commerce Utilities & Banking Subcommittee. |
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