On Friday, June 4th, Senate leaders enacted a procedural method that revived the Tennessee Health Freedom Act.  The original Health Freedom Act, SB 3498, was sponsored by Senator Beavers and passed the Senate Floor overwhelmingly last February.

However, due to parliamentary maneuvers and side-deals being struck by House members and the House Speaker, that bill was killed last week in a budget subcommittee.

“The House Speaker cast a tie-breaking vote to kill that bill in committee last week,” said Senator Beavers.  “The House committee then decided to pass out a similar, but substantially weaker bill to cover their tracks… however, all of the members knew that bill had not moved in the Senate.  Their attempt to only advance the version that was dead in the Senate was their attempt to kill the Tennessee Health Freedom Act.”

The legislature was then left with a predicament in that there were two different versions of a bill that sought to protect Tennesseans from unconstitutional provisions of the national health care bill. However, both of their companion bills were stalled in the opposite legislative chamber.  Therefore, SB 2560 was recalled from committee and brought straight to the Senate Floor.  The only way the Senate agreed to recall the bill was to have an amendment that would put Beavers’ version of the Tennessee Health Freedom Act onto the bill since that was the only amendment that had been through the Senate committee process. If the Senate had not adopted that version of the bill, the bill would have been dead.

“This was an unusual procedural motion,” acknowledged Senator Beavers.  “However the difference between this motion and others that have failed in the past is that this amendment has been vetted in committee and passed overwhelmingly in February.  To me, it’s not a question of politics, it’s a matter of policy and principle… the Tennessee legislature needs to send a firm message to Washington that we do not agree with their unprecedented and unconstitutional national healthcare legislation.  My amendment protected Tennesseans from the federal government, the other bill only said that the state legislature could not impose mandatory healthcare – which is irrelevant because it’s the federal government, not the state, who will impose such a mandate.”

Then, after passing the Senate overwhelming for the second time, the Tennessee Health Freedom Act failed to receive the necessary 50 votes to pass in its final form in the House of Representatives.

“I was incredibly discouraged that House Democrats voted to kill this bill,” said Senator Beavers.  “The Senate did every maneuver we could to resurrect this bill – even passing the Tennessee Health Freedom Act once in February and then again last week.”

Many Democrats cited the reason for their vote being that Tennessee’s Attorney General said it was likely unconstitutional, yet Senator Beavers argued that such a statement was merely his opinion.  “The only way you could say that my bill is unconstitutional would be if you believe Obamacare is constitutional – and the State Senate said loud and clear that we do not think it is… it’s the Attorney General’s job to defend the policies of this state, and there is no way that an unconstitutional federal law should trump a constitutional state law!”

To read about the different versions of the Tennessee Health Freedom Act, see

• Mae Beavers’ original Health Freedom Act – SB3498:
  http://wapp.capitol.tn.gov/apps/BillInfo/Default.aspx?BillNumber=SB3498
• Amendment 1 to SB3498:
  http://www.capitol.tn.gov/Bills/106/Amend/SA0829.pdf
• Weaker Health Freedom Bill originated in the House – SB2560:
  http://www.capitol.tn.gov/Bills/106/Bill/SB2560.pdf
• And finally, a compromise bill reached in conference committee for SB2560:
  http://www.capitol.tn.gov/Bills/106/CCRReports/CC0027.pdf

The budget process consisted of weeks of negotiations, mainly with Senate Republicans attempting to pass a responsible budget against the will of many House Democrat and Republican leaders.

After passing a conservative budget out of the Senate Finance Committee, Senate leaders were constrained by members of the State House in what spending they could cut to balance the budget…and negotiations with House leaders allowed numerous pork projects to be included into the budget, in addition to raiding Tennessee’s “Rainy Day” savings account by hundreds of millions of dollars.

“I applaud the Senate for attempting to pass a conservative budget during these hard economic times,” said Senator Beavers.  “However, due to certain House members’ wish lists when it came to pork projects that are not affordable during these times… in addition to spending hundreds of millions of dollars from our rainy day fund, I had to vote against this budget.  It’s a shame that House members would rather spend, spend, spend and borrow, borrow, borrow rather than operate within our means.  My family operates in a pay-as-you go fashion…and the state of Tennessee needs to do the same.”

In addition, Senator Beavers continues to push for a repeal of a 2008 law that mandated worker’s compensation insurance be purchased on sole-proprietors and small contractors.  Beavers also filed legislation that would encourage a “Tennessee-Made” logo be made available for businesses that employ Tennesseans and produce Tennessee goods and products.  Finally, as Chairman of the Judiciary Committee, Beavers filed many bills dealing with the courts and constitutional amendments, including a constitutional amendment that would make it harder for the administration to spend over the limits of the “Copeland Cap” as set forth in Tennessee’s Constitution, as well as a constitutional amendment that would require the Attorney General be held accountable to the people of Tennessee through an election every four years.

“By not spending the necessary time debating and coming up with sound conservative education reform – reform that gives more choice to parents and students and that enables local school boards to dictate what is best for their schools – we instead wrote the governor a blank check that includes federal guidelines in order to receive money that will bring this state further away from its ‘pay-as-you-go’ history,” said Beavers.  “The last thing Tennessee’s students and teachers need is to be bribed into more centralized bureaucracy that enacts what President Obama thinks is best for all American schools.”

Another primary reason for Beavers’ opposition to the bill comes from the fact that many of the ‘reforms’ are initiatives that have been in place for many years now, as well as others that could have been enacted by the legislature during regular session.  The bill contained many nonspecific guidelines, using words such as ‘may’ and ‘could’ instead of ‘shall,’ making many conservatives weary of what exactly the bill hoped to accomplish that could not be accomplished by the Republican-controlled legislature later in the year.  A large portion of the federal guidelines and stimulus preconditions would be contained in the Governor’s “Race to the Top” application, which was kept hidden from the legislature when voting on the bill.

“I feel like leaders across the state need to take a step back and see why the country is in the shape that it is in – and I guarantee you that the mess we are in is not because of fiscal or constitutional conservatives who refuse to leave our grandchildren in the financial hole in order to placate President Obama and his stimulus dollars,” said Beavers  “I did not vote against this bill because I disagreed with some of its conservative goals – I voted against it because it was rushed policy that not even every legislator understood that required more centralized control of our school system in the hands of the Governor and Washington…all in order to possibly receive stimulus dollars that will then not be there in a few years.”

Senator Beavers is eager to work with other legislators during the regular session to examine the effects of this legislation and help pass further meaningful reforms that will not be tied to federal stimulus mandates.  In addition, if the state does not receive the federal stimulus money, lawmakers will have to cope with yet another new law and program that the state will have to fund with current revenues during this economic recession.

The higher education bill passed this week, called the “Complete College Tennessee Act of 2010,” revises the Tennessee Higher Education Commission’s master planning responsibility to increase college completion, address economic development needs and differentiate institutional missions to increase collaboration and efficiency between Tennessee’s post-secondary schools.
The legislation also hopes to gear state funding for colleges based more on graduation and retention rates, rather than purely based on enrollment.

The legislation also hopes to make credits earned at community colleges easily transferable to four-year college institutions.  This system will provide a clearly designated path for students to further their education after completion of an associate degree in the state’s community colleges.

Finally, the bill originally had provisions regarding transferring authority over adult education programs to another department, a move that possibly would have financial consequences.  However, Sen. Beavers and other legislators expressed concern over meddling in many programs in District 17 that are quite successful and serve to provide job training and career enhancement opportunities for adults, and therefore the provision was removed from the final bill.

Senator Mae Beavers helped pass a worker’s compensation law that would seek to delay the implementation of a 2008 law that required all sole proprietors to carry worker’s compensation insurance.  Beavers also plans to present a bill during regular session that would outright delete the 2008 law, a law that would force the purchase of insurance on single individuals and small companies that could account for expenses high enough to put them out of business.

“We cannot expect small businesses, particularly those sole proprietors and small contracting companies, to emerge from what has been a devastating few years in the economy and housing market if the state and federal governments continue to burden them with regulations and fees,” said Sen. Beavers.  “Self-employed contractors are hurting enough as it is; the state doesn’t need to help put them out of business.”

The particular law addressed was a bill passed in 2008 that required all contractors and subcontractors – even those sole proprietorships whose owner is the only employee – to carry additional workers compensation insurance.

Beavers was one of only five senators who voted against the bill on the floor last session, and the only Republican to do so. “You have to be aware of the economic climate and what effects that state mandates will have when the legislature passes bills,” said Beavers.  “I believe many legislators were quite short-sighted when they passed this law.”

Beavers urges everyone to call their legislators and ask them to support the bill she will be filing to repeal the 2008 law, in particular those who voted “aye” for the 2008 bill.

One of the most concerning trends affecting our state’s budget is the rising unemployment rate.  Most lawmakers agree that Tennessee must be aggressive in bringing new jobs to better weather the economic storm.  This makes economic development and job creation a top priority of the upcoming legislative session.  Job losses have accelerated to around 7 percent.  That number could rise to 8.5 percent to 9 percent before the economy turns around according to the state’s leading economists.  Almost all sectors of jobs are in decline, bringing forward the issue of how the state’s unemployment fund will fare if the economy does not turn around.

Expect the solvency of the fund to be a topic for discussion this session when the General Assembly convenes.  Tennessee’s unemployment fund had a balance of about $517 million as of November.  Experts say a drop below the $400 million level would cause great concern.

Finally, legislation is expected to be introduced again this year to provide a two-thirds majority to override Tennessee’s constitutional amendment that requires state spending to stay within the rate of growth of Tennessee’s economy.  Called the “Copeland Cap,” this amendment to the state’s constitution was approved by Tennessee voters in 1978.  It stipulates that state spending cannot grow faster than the rate of growth of the state’s economy, measured by the growth of incomes of Tennesseans.  The goal is to keep spending growth at a level where the people’s income growth can afford it without a tax increase. Currently the cap can be overridden with a simple majority vote.
The state’s economic downturn and the rise in unemployment provides legislators with serious challenges.  The General Assembly has adjourned until February 9, 2009 to assign offices and await budget details.  The governor is expected to deliver his budget address at that time.

Judicial Selection Commission

Legislation that would continue the current Judicial Selection Commission stalled during the last legislative session, an action that puts the Judicial Selection Commission, which makes recommendations for the selection of the state’s judges, in wind down this year.  As chairman of the Senate Judiciary Committee, Sen. Beavers will be at the center of the discussion on how to constitutionally and effectively select Tennessee’s judges.  At a minimum, Senate Republicans want to see a change in the way the Judicial Selection Commission functions, allowing more input from groups seeking membership on the commission.  Currently members of the commission are selected from a list of special interest groups as prescribed by law.

Many legislators believe there are important constitutional issues which need to be addressed and that reform is needed to have a fairer and more open process with greater accountability.  The state’s constitution in Article VI, Sections 3 and 4, says judges shall be elected by qualified voters.  Expect the Judiciary Committee and legislature to debate whether or not the Tennessee Plan, which does allow for a retention (‘yes’ or ‘no’) vote after a judge’s term, satisfies that requirement in its current form.  This issue will be one of the key matters for legislators to act upon during the 2009 legislative session.

Open Containers

Sen. Beavers will soon file a bill to curb drunk driving that is more likely to receive favorable consideration of lawmakers, due to the positive financial impact.  This bill bans open containers of alcohol in vehicles in Tennessee, and would allow the state to have control over $12 million in federal highway funds.  Currently, if a state does not achieve compliance with this federal program requirement, a portion of that state’s federal-aid highway construction funds are redirected.  Passage of this legislation would not only curb drunk driving, but provide needed flexibility with road money as revenues for transportation needs are dire.

Constitutional Amendments

Thus far, three constitutional amendments await action this year.  One is a resolution that would give Tennesseans the opportunity to restore their voice in determining what state law should be regarding commonsense protections for abortions.  The resolution failed in a Democrat-controlled House subcommittee last year, despite strong support among members of both the House and Senate.  The election of four new Republicans in the House may boost its chances this year.  Sen. Beavers pledges to fight for the unborn as she plans to once again co-sponsor the resolution.

A second constitutional resolution would amend the Tennessee Constitution by protecting the right to hunt and fish, while a third would clarify the current prohibition of a state income tax.    The amendment specifies that the legislature as well as Tennessee counties and cities shall be prohibited from passing either an income tax or a payroll tax, which is a tax on employers that is measured by the wages they pay workers.  A payroll tax has been proposed by elected officials in Shelby County and elsewhere as a way around an income tax ban.  “I will continue to take every measure possible to ensure that the people of the 17th District and this state do not reap the devastating consequences of a state income or payroll tax,” said Sen. Beavers.