Policy

2020 Legislative Scorecards

The Chamber values our partnership with elected officials as we work together to create jobs, develop workforce, and build communities. Every year the Chamber’s board of directors adopts a State and Metro Legislative Agenda based on issues identified by our members in our annual policy survey. These agendas are shared with state and local elected officials.

2020 State Legislative Scorecard

The following scorecard reports how elected leaders voted on the Chamber’s priority State legislative areas. See how legislators in the House and Senate voted on the following issues.

Adjustments to State Business Taxes

Legislation was filed this year that would lower the excise tax rate on businesses when the state is experiencing high revenue growth. HB 2301/SB 2686 (Gant/Haile) would create a range from 6 to 6.5 percent for the tax which would fluctuate up and down by 0.1 percent increments based on state revenue collections. The proposal had significant support and momentum early in session, and it would have cut business taxes by tens of millions of dollars.

Chamber Position

The Chamber supported this bill to provide tax relief to Tennessee businesses.

Status

The General Assembly did not pass this legislation due to the revenue shortfall created by the COVID-19 pandemic. No recorded vote.

Caps on Local Property Taxes

HB 2638/SB 2751 (Holt/Bell) was filed to limit a county legislative body from raising property taxes above a capped rate without the approval of the voters. This bill raised concerns around local governments not being able to address budget issues while also jeopardizing the bond ratings of these governments. Following these concerns being raised by local governments, chambers of commerce, and the State Comptroller, the bill was taken off notice. It is expected to be filed again next year.

Status

The General Assembly took action supporting the Chamber’s position. The House bill was taken off notice, and the Senate bill was not scheduled for a hearing.

Criminal Justice Reform

HB 2517/SB 2734 (Curcio/Bell) was filed this year to address several areas of criminal justice reform with the most significant section amending the Drug-Free School Zone Act. Under present law, the provisions of the Act are triggered if a drug offense is committed within 1,000 feet of school property, and this violation includes a mandatory minimum sentence for offenders. Testimony revealed that many urban and suburban areas are within 1,000 feet of school property without the knowledge of many offenders including dozens of miles on state interstates and highways. Under the bill, this distance is reduced to 500 feet, and a rebuttable presumption is created that the offender should not serve the mandatory minimum sentence. It also increases the penalty for offenders who are actually in these zones with the intent to target schools and children.

Chamber Position

The Chamber supported this bill to amend the code to keep low level offenders out of prison for long sentences.

Status

The General Assembly took action supporting the Chamber’s position. The bill passed both the House and Senate with overwhelming bipartisan support. In this scorecard, votes are tracked on this legislation.

Employment-Related Discrimination

Under state law, employers are prohibited from discriminating with employment decisions based on a person’s race, creed, color, religion, sex, age, or national origin. Many courts across the country have defined “creed” as being related to religious beliefs, but HB 2764/SB 2827 (Ogles/Akbari) would have specifically defined the word in Tennessee. With the language of the proposal, “creed” would be defined as well-grounded and firmly held set of moral beliefs and guiding principles.

Chamber Position

The Chamber opposed this bill as the language was too broad and would subject employers to more lawsuits.

Status

The General Assembly took action supporting the Chamber’s position. The House bill was taken off notice, and the Senate bill was deferred to next year. No recorded vote.

Hiring Restrictions

Legislation was again filed this year to restrict the hiring practices of private employers. HB 2545/SB 2641 (Potts/Yarbro) would prevent private employers with 50 or more employees from making employment decisions based on an applicant or employee’s salary history.

Chamber Position

The Chamber opposed this bill, believing private employers need all available tools with their hiring practices.

Status

The General Assembly took action supporting the Chamber’s position. The House bill was taken off notice, and the Senate bill was deferred until next year. No recorded vote.

Minimum Wage Requirements

Bills were again filed this year to establish a statewide minimum wage for employees. HB 1918/SB 1788 (Hodges/Kyle) and HB 2038/SB 1904 (Love/Robinson) would have raised the minimum wage in Tennessee to $15 and $10, respectively.

Chamber Position

The Chamber opposed these bills and believes that the minimum wage should be established at the federal level, not the state.

Status

The General Assembly took actions supporting the Chamber’s positions. HB 1918/SB 1788 was never scheduled for a vote, and HB 2038/SB 1904 failed in a House Subcommittee for a lack of a motion. No recorded vote.

Right to Work Constitutional Amendment

For 70 years, state law has recognized Tennessee’s right to work status. Several states have recently seen statutory and/or legal challenges to such a status, and as a result, SJR 648 (Kelsey) was filed this year as the first step to allowing the voters to decide if such a provision should be in the Tennessee Constitution.

Chamber Position

The Chamber supported this legislation to allow voters to decide if Tennessee’s right to work status should be protected by the Constitution.

Status

The General Assembly took action supporting the Chamber’s position. The resolution was adopted, and it will need to be adopted by both bodies during the next legislative session by a 2/3 supermajority in order to be placed on the ballot. In this scorecard, votes are tracked on this legislation.

Safe Harbor Legislation

In April, as businesses across the state began to prepare to return to work, concerns grew about the likelihood of frivolous lawsuits being filed alleging contact to or contracting of COVID-19. While some felt this concern was unfounded, businesses across the country began to see hundreds of lawsuits filed. While these businesses are likely to succeed in court, the costs and time associated with defending them will take an unneeded, additional toll. To prevent this problem in Tennessee, the Chamber and dozens of other associations and trade groups formed the Tennessee Business Recovery & Safe Harbor Coalition and began to discuss legislative solutions with lawmakers. HB 2623/SB 2381 (Curcio/Bell) was filed to protect businesses from frivolous lawsuits who are making reasonable efforts to protect the public. The legislation would not impede the ability of citizens to file lawsuits against establishments acting with gross negligence or willful misconduct.

Chamber Position

The Chamber supported this legislation to provide clarity and confidence to businesses as they return to work.

Status

The General Assembly did not take action supporting the Chamber’s position. While both the House and Senate passed related legislation, the two bodies could not agree on the conference committee report with the House specifically taking issue with a retroactive provision in the report. In this scorecard, votes are tracked for the initial proposals before the House and Senate as well as those cast on the conference committee report. The Governor, House leadership, and Senate leadership are in conversations about convening a special session to work on this legislation.

SPECIAL SESSION UPDATE: COVID-19 Recovery Act

On Monday, August 3, Governor Bill Lee issued a proclamation calling for the General Assembly to meet in special session which began on Monday, August 10. The call outlined three specific focuses, one of which was liability protections for businesses, schools, hospitals, and other entities from frivolous lawsuits associated with the contraction of or exposure to COVID-19.

HB 8001/SB 8002 (Lamberth/Johnson) was filed to provide such protections. It is titled the “COVID-19 Recovery Act,” and its intent is very similar to the “Tennessee Recovery and Safe Harbor Act,” which failed in the final minutes of the regular session.

The bill states that an individual or legal entity will not be liable for loss, damage, injury, or death that arises from COVID-19 unless the a plaintiff proves by clear and convincing evidence that the person caused the injury by an act or omission constituting gross negligence or willful misconduct. At the time of filing a lawsuit, the law further requires the following: a verified complaint with specific facts that a jury could reasonably conclude that the injury was caused by gross negligence or willful misconduct; and a certificate of good faith stating that the plaintiff has a signed, written expert medical opinion that the injury was caused by an act or omission of the defendant. These requirements provide protection from frivolous lawsuits while not protecting businesses who ignore or outright defy guidance from local, state, and federal medical experts.

Status

The General Assembly took action supporting the Chamber’s position. The Senate bill passed with a vote of 27-4, and the House bill passed 80-10-1. It was signed into law and became effective on August 17, and the protections will be in place for all claims that allege an injury through June 30, 2022

State Grants for Economic Development

Legislation was filed this year with the intent to generate more economic development in rural counties. HB 1586/SB 2596 (Griffey/Niceley) would require the Department of Economic and Community Development to develop a plan to ensure that two-thirds of state loans and grants were distributed only to rural counties.

Chamber Position

The Chamber opposed this bill to ensure that the Department maintained flexibility to issue grants as warranted to all areas.

Status

The General Assembly took action supporting the Chamber’s position. The House bill was taken off notice, and the Senate bill was not debated. No recorded vote.

Tennessee Pregnant Workers Fairness Act

For years, employers have faced challenges navigating state and federal laws and regulations to understand their responsibilities for accommodating pregnant workers. HB 2708/SB 2520 (Hurt/Massey) was filed this year to clear up this confusion and to ensure that pregnant employees and their employers alike know what to expect from each other. This bill would require employers to provide pregnant workers with reasonable accommodations as directed by a physician if they do not create an undue hardship.

Chamber Position

The Chamber supported this bill to keep pregnant workers employed and to provide employers with clarity with their responsibilities.

Status

The General Assembly took action supporting the Chamber’s position. The legislation passed without any negative votes, and it is effective on October 1, 2020. In this scorecard, votes are tracked on this legislation.

Tobacco Sales

For the past two years, the Chamber has advocated for raising the age of eligibility to purchase tobacco and vaping products from 18-years-old to 21-years-old. In December of last year, though, the federal government passed legislation requiring all states to implement this change. Despite this requirement, there was still a legislative battle to get the change passed which was filed by the administration.

Chamber Position

The Chamber supported this legislation to improve the health of the region’s workforce and to prevent early addictions to such products.

Status

The General Assembly took action supporting the Chamber’s position. While it did pass, it only did so by a House vote of 64-24-6 and a Senate vote of 25-5-1. In this scorecard, votes are tracked on this legislation.

Transpotainment

The transpotainment industry is a new and rapidly growing industry in Nashville and other cities where vehicles such as party buses and wagons pulled by tractors entertain visitors. Under state law, though, cities are prohibited from regulating these types of vehicles that are designed to carry more than fifteen people. HB 2381/SB 2513 (Hazlewood/Dickerson) was filed to provide this regulatory authority to cities to ensure public safety and planning.

Chamber Position

Support the use of local government tax credits and incentives for economic development as additional tools to encourage the relocation or expansion of business in Nashville. The Chamber supported BL2019-2.

Status

BL2019-2 (Sledge, VanReece) was adopted by the Council on November 5, 2019.

2020 Metro Legislative Scorecard

The following scorecard reports how elected leaders voted on the Chamber’s priority Metro legislative areas. See how Metro Council members voted on the following issues.

Affordable Housing – Expedited Permit Review

Workforce and affordable housing are needed in Davidson County to retain and attract residents and workers. According to the American Community Survey’s 2018 1-year estimates, 49.9 percent of Davidson County renters were housing cost-burdened (allocating more than thirty percent of their income to rent) and 26.7 percent of Davidson County homeowners were housing cost-burdened (allocating more than thirty percent of their income to housing costs).

BL2020-150, sponsored by Council members Allen (At-Large), Sledge (17) and O’Connell (19), built upon previous legislation requiring prioritization of Metro departmental review of permits for certain affordable housing projects. BL2020-150 added Codes Department inspections, the issuance of certificates of occupancy, and construction inspections of stormwater facilities to the prioritization list for affordable housing developments.

Chamber Position

The Chamber seeks to expand affordability by increasing the supply of housing and expanding transit service across the region to provide affordable and reliable access to neighborhoods, jobs and education. The Chamber endorsed expanding the list of permit and review types subject to prioritization for certain affordable housing developments.

Status

BL2020-150 (Allen, Sledge, O’Connell) was adopted by the Council at its February 18, 2020 meeting.

Aid for Businesses Impacted by the March 3, 2020 Tornado

In May and June, two ordinances were adopted in response to the March 3 tornado that damaged residences and businesses across Davidson County. The Chamber endorsed both ordinances.

BL2020-234, sponsored by Jeff Syracuse (15), Zulfat Suara (At-Large), Burkley Allen (At-Large), Russ Bradford (13), Kyonzté Toombs (2), and Tanaka Vercher (28), allows Metro Codes to waive certain building permit fees to facilitate the quick repair and rebuilding of residential and commercial properties damaged by the tornado.

BL2020-277, sponsored by Jeff Syracuse (15), permitted nonconforming structures that were damaged or destroyed by the March 3 tornado to be reconstructed so long as the reconstruction did not result in a substantial increase in the degree of non-conformity.

Chamber Position

Support predictable and transparent development and zoning policies that encourage development, investment and support for entrepreneurs and small businesses. The Chamber supported BL2020-234 and BL2020-277.

Status

BL2019-234 (Syracuse, Suara, Allen, Bradford, Toombs and Vercher) was adopted by the Council on May 5, 2020.

BL2019-277 (Syracuse) was adopted by the Council on June 16, 2020.

FY21 Metro Nashville-Davidson County Operating Budget & Property Tax Rate Increase

On June 16, 2020, the Metro Nashville-Davidson County Council adopted Council member At-Large Bob Mendes’ substitute Metro FY 2020-2021 operating budget, as amended, by a vote of 32-8. On May 29, the Nashville Area Chamber of Commerce Board voted unanimously to support Mayor Cooper’s proposed budget and any substitute budget proposal that would replenish Metro’s Fund Balance (rainy day fund), put the city on a path to financial sustainability, and continue to provide needed services for residents and businesses. Mayor Cooper’s proposed FY21 budget achieved these goals as did Council member Mendes’ substitute budget.

Mayor Cooper’s proposed budget included significant expense cuts across Metro departments and a $1.00 property tax rate increase. Council member Mendes’ proposed budget included a $1.066 property tax rate increase and directed the additional revenue to, securing $15/hour minimum wage for over 1,500 school employees and $7.5 million more to Metro Nashville Public Schools, among other enhancements.

In making its decision to support the FY21 Operating Budget proposals and the property tax increase, the Chamber Board balanced the circumstances of business recovery and Metro fiscal recovery. The Board understood how Chamber members are struggling with the impacts of the March tornados and COVID-19 on their businesses and their employees. The Board also understood that Metro’s finances were under duress before the tornado and COVID-19, which had only worsened the city’s fiscal challenges.

Earlier this year, the Chamber released an independent study of Metro Finances conducted by Elliott Davis. The study determined:

Metro’s financial difficulties were primarily an issue of revenue.
Nashville’s tax and fee burden (including property tax, as well as other common taxes and fees) was found to be 16 to 53 percent less than all of the peer cities.
While property taxes made up 53 percent of the revenue included in the city’s 2018 general fund, Metro Nashville-Davidson County’s property tax growth has not kept up with property values due to lack of property tax rate adjustments that traditionally accompany property reappraisal years.
On the expense side of the ledger, Metro Nashville’s expenses were found to be at the median of peer cities.
As a result, Metro reported the lowest fund balance (less than a month’s operating funds at the time), compared to peer cities. The city is bound, by state law, to maintain a fund balance representing three percent of schools’ operations and is bound, by city policy, to have a five percent fund balance for the general fund.

With the uncertainty of how COVID-19 will impact the city’s budget in the coming year, the depleted fund balance has become the priority issue for the city. Chamber members recognize the value of stable city government – 77 percent of members responding to a policy survey stated that a financially-stable city government with the ability to provide services is critical to their business’ success. Mayor Cooper’s proposed budget and Council member Mendes’ substitute budget addressed the fund balance and set Metro on the path to financial stability.

Chamber Position

Support budget proposals that correct Metro’s diminished fund balance, provided basic, needed services for residents and businesses, and put Metro’s finances on the path to stability. The Chamber supported BL2020-286, Mayor Cooper’s proposed FY21 Operating Budget and Council member At-Large Mendes’ substitute budget.

Status

Substitute BL2019-286, as amended (Mendes, At-Large), was adopted by the Council on June 16, 2020.

FY21 Metro Budget – Amendments to Eliminate Economic Development Grants for Jobs

Mayor Cooper’s proposed FY21 operating budget (BL2020-286) included $500,000 for the Nashville GRAD (Nashville Getting Results for Advanced Degrees) program – a program in its second year that provides wraparound academic and career advising and financial assistance to cover costs for textbooks, transportation, technology fees, industry certification fees, and emergency needs for full-time students at Nashville State Community College and Tennessee College of Applied Technology. Council member At-Large Mendes’ substitute budget increased the GRAD funding to $1m, which was the program’s level of funding in its first year. Amendments were offered that would cut the GRAD funding. Council member Courtney Johnston (26) offered such an amendment that came to a vote on the Council floor.

Chamber Position

The Chamber understands that recruiting and retaining qualified workforce is critical for businesses to succeed in Middle Tennessee and that there are many Nashville-Davidson County residents who want to secure a post-secondary degree or credential, but need financial assistance to cover the many costs that come with being a full- or part-time student. The Chamber opposed cuts to the Nashville GRAD program.

Status

The amendment to eliminate funding for the Nashville GRAD program failed on a voice vote at Council on June 16, 2020. No recorded vote.

No Action - Metro’s Other Post-Employment Benefits

In February 2020, Mayor John Cooper recommended, and the Metro Council appointed, five Nashvillians to serve on the Employee Benefits Study and Formulating Committee. As required by the Metro Charter, the Study and Formulating Committee will review and make recommendations on the fiscal health of the city’s benefits, including the health benefit for Metro retirees, also called the Other Post-Employment Benefits or OPEB. Metro’s OPEB obligations are not pre-funded. Rather, they are managed on a “pay as you go” basis in which benefits are only paid when they become due, versus as they are earned. Per the study of the previous Study and Formulating Committee in 2015, this payment model had generated a projected liability of $2.6 billion.

Chamber leadership has long been concerned about this unfunded liability. It grows each year as more current and former Metro employees retire and they – and their spouses – make use of the benefit. Because the benefit is “pay go,” it was projected, in 2015, to consume an every-increasing portion of Metro’s operating budget; funding that is needed for Metro’s many other priorities. In 2019, the Chamber and the Greater Nashville REALTORS® commissioned Elliott Davis to study OPEB in a broader study of Metro’s finances. The study found that, “[As reflected in the figure below] as of June 30, 2019, Nashville carried an OPEB liability of approximately $4.6 billion which is an increase of $673 million over 2018. While new accounting requirements… resulted in a spike in fiscal year 2018, the City’s OPEB liability had already been growing at an average annual rate of 34% from 2009 through 2017.”

The Elliott Davis Study can be found here.

The Chamber regards this growing OPEB liability as a threat to Metro’s financial security and its ability to meet the needs of the city in the future.

No bills were filed on this issue. The work of the Employee Benefits Study and Formulating Committee is scheduled to begin in fiscal year 2020-2021. The recommendations of the Study and Formulating Committee – including any proposed changes to the structure of OPEB to decrease the long-term liability for the city – must be adopted by the Metro Council.

Metro Water and Sewer Charges

Investing in public infrastructure is critical to improving the quality of life in the community. From entertainment and convention venues to investments in multi-modal transportation and below-ground infrastructure – Nashville-Davidson County makes infrastructure investments to support a growing city and build facilities and venues that promote economic development and improve quality of life.

On December 3, 2019, Metro Council approved increases to water and sewer charges and fees in a 38-0 vote. The new revenue will be used by Metro Water Services (MWS) to pay for the operation, maintenance and capital improvements to water and sewer systems (MWS is an “enterprise fund” meaning that its operating revenues come from customer rates and fees, rather than sales and property taxes.) Maintenance and new capital investment in water and sewer have lagged, as noted in the Council analysis on the ordinance, “Water/sewer capacity charges were last adjusted in 2007. Since then, operating costs have increased 30%, not including the requirements for system upgrades and maintenance.” The Council analysis also found that, “According to MWS, more than 65% of Metro’s water pipes and 58% of the sewer pipes are over 40 years old.”

Chamber Position

Support investment in public infrastructure that has a strong business and financial case. The Chamber supported, BL2019-45, the increase in water and sewer charges.

Status

BL2019-45 (Mendes, Henderson, Glover, Benedict, Welsch) was adopted by Council at its December 3, 2019 meeting.

Small Business Incentives

Designed to generate positive economic returns by creating jobs and generating new tax revenue, economic development tax credits and incentives are valuable investments critical to maintaining a competitive business environment in Nashville/Davidson County.

Council members Colby Sledge (17) and Nancy VanReece (8), sponsored BL2019-2, which amended Metro’s Property Investment Incentive, one of two incentive programs that Metro Nashville-Davidson County has for small businesses. The Property Investment Incentive provides a grant for 50 percent of the investment in the construction or rehabilitation of exterior portions of commercial properties in specified Census tracts, up to a $50,000 cap with a minimum $10,000 investment by the owner. BL2019-2 addressed the unintended consequence of the Property Investment Incentive whereby individual storefronts in a multi-tenant commercial property could not qualify for the grant because the value of the overall multi-tenant commercial property exceeded the limit for a property to qualify for the incentive.

Chamber Position

Status

BL2019-2 (Sledge, VanReece) was adopted by the Council on November 5, 2019.