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The second session of the 106th General Assembly begins at noon on January 12, 2010. Governor Bredesen is calling for a special session of the legislature on education as legislators return for what would have been the regular session. The state is preparing to apply for over $400 million in the Race to the Top funds, a federal education grant program. In order to be at the top of the list of applicants, there are a couple of changes that must be made to Tennessee’s laws. The application deadline is January 19, 2010, so legislators must act quickly in this special session. Most importantly, the legislature must pass legislation requiring annual teacher assessments and a new evaluation tool for teacher tenure. The governor also hopes to address some higher education issues during the special session; specifically, issues relative to community colleges and four year universities with a special emphasis on transfer credits and remedial classes. Legislators anticipate a two week special session, delaying the start of a very busy regular session to the end of January. Tennessee still faces a dire budgetary situation with a deficit exceeding $1.2 billion. The state is now facing 17-18 months of declining revenues. Last session, the budget was balanced with the help of federal stimulus dollars and no raiding of the state’s reserve dollars. Because Governor Bredesen’s term ends this year, he plans to give more deference to the legislature in deciding if reserve funds are used to balance the budget. With Lieutenant Governor Ron Ramsey ruuning for governor on the Republican side and Minority Leader Jim Kyle running on the Democratic side, many expect a shorter session. Many are predicting session to end in late April or early May. We will issue weekly reports on Fridays and include bills of interest. If you have any questions do not hesitate to give us a call.
Tennessee Legislation Service (c) 2010 M. Lee Smith Publishers ALCOHOLIC BEVERAGES SB 0038* Owners responsible for minors drinking on property. Prohibits a property owner or occupant from knowingly allowing any minor to drink or possess alcoholic beverages on his property or from failing to stop a minor from such activity. Creates a misdemeanor offense for committing such an act. Provides an exemption for "de minimis" quantities of alcohol consumed for sacramental purposes during a religious ceremony. (S: Tracy; H: Carr) Senate Status: Senate 06/12/2009 re-passed with amendment 4 after moving to reconsider their actions and withdrawing previously adopted amendment 1. SB 0080* Wine direct shipper license. Creates a wine direct shipper license to be issued by the alcoholic beverage commission and the department of revenue that would allow any person currently licensed as a wine manufacturer or distributor to ship up to two 9-liter cases of wine annually directly to a resident of Tennessee who is at least 21 years of age for personal use. Specifies the rules and regulations for obtaining such license and creates a Class B misdemeanor for any person who knowingly makes or receives a shipment in violation of such rules. (S: Stanley; H: Shepard) Senate Status: Referred to Senate State & Local Government. SB 0120* Sale of wine in grocery stores. Creates an additional class of licenses allowing the sale of wine at retail food stores. Specifies that such licenses will be limited to retail food stores located in counties or municipalities that have authorized the sale of alcoholic beverages by local option election. Requires person purchasing wine at retail food store to present photo identification. (S: Ketron; H: Shepard) Senate Status: Taken off notice in Senate State & Local Government 05/05/2009. SB 0121* Sale of wine at grocery stores. Creates an additional class of licenses allowing the sale of wine at retail food stores. Specifies that such licenses will be limited to retail food stores located in counties or municipalities that have authorized the sale of alcoholic beverages by local option election. Requires person purchasing wine at retail food store to present photo identification. (S: Ketron; H: Shepard) Senate Status: Referred to Senate State & Local Government. SB 0138 Period for beer dealers to register with commissioner. Increases from 20 to 25 days the time period in which manufacturers and wholesale distributors of beer must register with the commissioner of revenue. Broadly captioned. (S: Ketron; H: Tindell) Senate Status: Senate 06/16/2009 passed with amendment 4. SB 0166* Creation of direct shipper license for wine. Creates direct shipper license that would allow an in-state or out-of-state entity to ship up to 12 nine-liter cases of wine annually to residents of Tennessee who are 21 years or older. (S: Stanley; H: Shepard) Senate Status: Senate 05/21/2009 concurred in House amendment 1. SB 0274* Retail licensure for alcoholic beverages. Decreases the amount of years an individual must reside in the state in order to obtain a retailer license or own stock in a corporation that has a retailer license from two years or at least 10 consecutive years to living in the state for the past year at time or application or at any time for at least five consecutive years. (S: Ketron; H: Todd) Senate Status: Referred to Senate State & Local Government. SB 0490 Requirements for wholesaler's license. Allows a wholesaler's license to be granted to a premises situated within a municipality that has approved the sale of alcoholic beverages. Current law limits the wholesaler's license being granted to a premises situated within a municipality having a population of more than 100,000. (S: Burchett; H: Lundberg) Senate Status: Referred to Senate State & Local Government. SB 0531 Criminal background checks for beer permit applicants. Allows a city or county to conduct a criminal background check on an applicant for a beer permit. Requires applicant to pay cost for such background check. (S: McNally; H: Hackworth) Senate Status: Senate passed 05/14/2009. SB 0573 Humphreys County to obtain manufacturer's license. Allows certain facilities located in Humphreys County to obtain a manufacturer's license to distill alcoholic beverages for the sale, distribution, and transportation to wholesalers only. (S: Jackson; H: Tidwell) Senate Status: Taken off notice in Senate State & Local Government 03/17/2009. SB 0600* Consumption of alcohol in liquor-by-the-drink jurisdictions. Allows alcoholic beverages to be sold for consumption on the premises in unincorporated areas of a county with a charter form of government that has held a countywide local option election approving liquor-by-the-drink. (S: Burchett; H: Armstrong) Senate Status: Senate passed 03/12/2009. SB 0786* ABC to study distribution of alcohol taxes. Requires alcoholic beverage commission to study distribution of alcohol taxes to local governments based on total number of public school students in each local political subdivision. Also requires alcoholic beverage commission to submit findings and make recommendations for redistribution to senate and house finance committees. (S: Overbey; H: Montgomery) Senate Status: Referred to Senate State & Local Government. SB 0788* Hotel redefined for Blackberry Farm. Redefines "hotel" to clarify that the property of Blackberry Farm may not be contiguous and may be divided by a public or private road. (S: Overbey; H: McCord) Senate Status: Senate 04/23/2009 passed with amendment 1. SB 0944* Revisions to Grape and Wine Law. Revises "Grape and Wine Law" based on a Sixth Circuit U.S. Court of Appeals decision including allowing out-of-state wineries to be licensed. Insures that wineries in the state can continue to operate legally regardless of the outcome of any Sixth Circuit decision. (S: Overbey; H: Casada) Senate Status: Senate 05/07/2009 concurred in House amendment 1. SB 1184 Transporting alcoholic beverages into a dry county. Allows person to transport alcoholic beverages into a dry county in excess of any quantity limitations if such person is using such alcoholic beverages in the manufacture of baked goods for sale at retail. Requires person to obtain any necessary license for transport from alcoholic beverage commission and requires person to alcoholic beverages from licensed retailers. (S: Haynes J.; H: Fraley) Senate Status: Senate 05/14/2009 passed with amendment 2. SB 1291 Alcohol advertisement to include health warnings. Requires that any advertising conducted in this state for alcoholic beverages must include statements regarding the dangers and adverse effect of alcohol abuse and alcoholism. (S: Ketron; H: Cobb T.) Senate Status: Referred to Senate State & Local Government. SB 1307* Transactions involving alcohol, but not money. Adds clarification that "sale" does not include transactions involving alcoholic beverages for which no payment is expected or received. (S: Tracy; H: Fraley) Senate Status: Senate 05/18/2009 passed with amendment 1, as amended. SB 1443* Commemorative bottles containing an alcoholic beverage. Exempts from licensing requirements transactions between collectors involving sale, purchase, or exchange of commemorative bottles containing an alcoholic beverage. (S: Haynes J.; H: Jones U.) Senate Status: Senate 04/16/2009 passed with amendment 1. SB 1444* Issuance of alcoholic beverage retailer license. Reduces the amount of time a person is required to have been a resident of Tennessee in order to be issued an alcoholic beverage retailer license from two years to one year. Also reduces the residency requirement for such license from ten to five consecutive years relative to those people who have been residents of Tennessee at any time. (S: Haynes J.; H: McCord) Senate Status: Referred to Senate State & Local Government. SB 1510* Transport of wine purchased from TN licensed winery. Deletes certain provisions of the Grape and Wine Law. Permits the transport of wine purchased from a winery licensed by the state of Tennessee. Authorizes Alcohol Beverage Commission to assess inspection fees against licensees and permitees. (S: Burchett; H: Litz) Senate Status: Referred to Senate State & Local Government. SB 1511* Sale of alcoholic beverages for consumption on premises. States that in any jurisdiction in which the sale of alcoholic beverages for consumption on the premises is authorized by referendum, such referendum shall authorize the sale and distribution of alcoholic beverages irrespective of certain other restrictions imposed by other provisions of law. (S: Overbey; H: Montgomery) Senate Status: Senate 04/23/2009 passed with amendments 1 & 2. SB 1513* Transport of wine purchased from a TN licensed winery. Removes two-year residency requirement for those wishing to receive a winery license under the provisions of the Grape and Wine Law. Also permits the transport of wine purchased from a winery licensed by the state of Tennessee. (S: Burchett; H: Litz) Senate Status: Referred to Senate State & Local Government. SB 1690* Direct shipper license. Establishes direct shipper license to be issued through the alcoholic beverage commission. Would permit in-state or out-of-state entity to ship wine directly to consumers age 21 years or older in this state for personal use. (S: Ketron; H: Miller L.) Senate Status: Referred to Senate State & Local Government. SB 1947* Sales of alcohol to visibly intoxicated individuals. Replaces the word "drunk with the term "visibly intoxicated" in the section of code governing the retail sale of alcohol that prohibits a retailer from selling alcoholic beverages to persons who are intoxicated or who are accompanied by someone who is intoxicated. (S: Faulk; H: Harrison) Senate Status: Senate passed 03/26/2009. SB 1955* Manufacturing of intoxicating liquors in certain counties. Makes lawful the manufacturing of intoxicating liquors and/or intoxicating drinks within the boundaries of any county where both retail package liquor sales and liquor-by-the drink have been approved through voter referendum within the county. (S: Ketron; H: Carr) Senate Status: Senate 06/17/2009 adopted the conference committee report. SB 2077 Residency requirement for wholesalers, retailers, wineries. Removes residency requirements for wholesalers, retailers, and wineries. (S: Ketron; H: Shepard) Senate Status: Referred to Senate State & Local Government. SB 2179 Creates wine direct shipper license. Authorizes the Alcoholic Beverage Commission to license non-resident wineries holding federal basic permits under the Federal Alcohol Administration Act to sell and ship wine to Tennessee residents and collect and pay state taxes on such sales. Permits any person currently licensed in this or any other state as a wine manufacturer, producer, supplier, importer, wholesaler, distributor or retailer who obtains a wine direct shipper license to ship up to two nine-liter cases of wine annually directly to a resident of Tennessee who is at least 21 years of age for such resident's personal use and not for resale. Requires each licensee prior to shipping to a resident to complete the following: file an application with the alcoholic beverage commission; pay a $100 registration fee; provide to the commission a copy of its current alcoholic beverage license issued in this or any other state; and obtain from the commission a wine direct shipper license. Details requirements for shipping and allows a licensee to annually renew its license by paying a $50 renewal fee and providing the commission a copy of its current alcoholic beverage license issued in this or any other state. Creates a Class B misdemeanor for any person who knowingly makes, participates in, transports, imports or receives a shipment in violation of this act. (S: Stanley; H: Litz) Senate Status: Referred to Senate State & Local Government. SB 2187 Retail sale of wine regulated like beer. Requires the retail sale of wine to be regulated in a similar way to beer by local government rather than the alcoholic beverage commission. Clarifies that wine may still be purchased in retail package stores even though wine is no longer regulated by the commission and that any person holding a license on the effective date of this act is grandfathered in with the local wine and beer board. Caps the alcohol content of wine under this part at 15 percent. (S: Faulk; H: Harrison) Senate Status: Referred to Senate State & Local Government. HJR 0412 Wine and alcoholic beverages study committee. Creates a special joint committee to study the economic and regulatory impact of broadening the number and types of establishments involved with and related to the retail sale of wine and alcoholic beverages. (H: Todd) House Status: Taken off notice in House State & Local Government 05/12/2009. CAMPAIGNS & LOBBYING SB 0139* Time frame for contributions to any candidate. Prohibits a multicandidate political campaign committee controlled by a political party from making a contribution to any candidate after the tenth day before an election until the day of the election. (S: Ketron; H: Todd) Senate Status: Senate passed 05/18/2009. SB 0728 Campaign contributions by corporations. Allows representatives of any corporation doing business with the state to make campaign contributions up to the same contribution limits as individuals, LLCs, or partnerships on behalf of the corporation. (S: Watson B.; H: McCormick) Senate Status: Referred to Senate State & Local Government. GOVERNMENT ORGANIZATION SB 1027 Sunset - alcoholic beverage commission. Sunsets the alcoholic beverage commission on June 30, 2010. (S: Johnson J.; H: Lynn) Senate Status: Taken off notice in Senate Government Operations 03/18/2009. JUDICIARY SB 1939* Cause of action for alcohol-related injuries. Specifies that any statutory cause of action for alcohol-related injuries is in addition to any common law causes of action for such injuries. (S: Faulk; H: Harrison) Senate Status: Senate 06/02/2009 concurred in House amendment 1. LABOR LAW SB 0469 English-only policy in the workplace. Specifies that it is not a discriminatory practice under state law for an employer to institute an English-only policy in the employer's workplace based on business necessity. (S: Johnson J.; H: Hill) Senate Status: Senate 03/30/2009 passed with amendment 1. RETAIL TRADE SB 0599 Penalties for failure to perform credit card ID checks. Creates an offense for a retail clerk to fail to verify the identification of any person who presents a credit or debit card to pay for good or services at the point of sale during a face-to-face transaction. Specifies that first violation is a Class C misdemeanor offense and that second or subsequent violations are a Class B misdemeanor. Specifies that retailer who employs a clerk who violates this section is liable for any damages suffered by cardholder. (S: Burchett; H: Hardaway) Senate Status: Referred to Senate Commerce, Labor & Agriculture. TAXES BUSINESS SB 0714* Sin taxes increased to fund crime prevention grants. Increases taxes on alcoholic beverages and cigarettes, with increase earmarked to fund crime prevention grants, drug court grants, and mental health system grants. Increases taxes for wine to $1.45 from $1.21 per gallon; for spirits to $4.84 from $4.40 per gallon; for mixed drinks, to 16% from 15%; for beer to $4.72 per barrel from $4.29 per barrel. Cigarette taxes increase to 4 cents per cigarette from 3 cents. Broadly captioned. (S: Tate; H: Camper) Senate Status: Taken off notice in Senate Finance Tax Subcommittee 03/18/2009. TRANSPORTATION VEHICLES SB 1115 Driver licenses or state IDs may have alcohol warning. Allows a licensee to request "Do Not Serve Alcohol" to be printed prominently on a driver license. Prohibits any person, including a permit holder licensed to sell alcoholic beverages, from being liable for serving alcohol to a licensee based on such driver license (S: Black; H: Lynn) Senate Status: Referred to Senate Transportation. UTILITIES SB 1232 Businesses to enroll on Do Not Call registry. Allows business telephone subscribers to enroll on the Tennessee Do Not Call Register. (S: Bunch; H: Hill) Senate Status: Taken off notice in Senate Commerce, Labor & Agriculture 04/21/2009.
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P. O. Box 58083
Nashville, TN 37205
(615)298-8165
