Capitol Hill Report

Legislation to expand TNInvestco will be considered

The General Assembly passed innovative legislation in 2009 designed to grow jobs through a program which provides capital to small, medium, and start-up businesses here in Tennessee. The bill created the TNInvestco program for businesses that oftentimes do not enjoy the same economic development incentives that have been provided to larger companies that invest capital in the state.

The legislation authorized tax incentives for private investors to create a pool of capital totaling $120 million that was divided among professional investment firms. The six Tennessee-based firms then invest the money in small businesses located and headquartered in Tennessee. The legislation stipulated that the money must remain invested in Tennessee for a minimum of ten years. Capital returned to the state must first go to the General Fund.  Once enough money has been repaid, the remaining funds will be deposited in the Rural Opportunity Fund. Throughout the ten years the money is invested and even beyond, the state will reap the benefits of job growth from these small businesses.

Lawmakers are looking to expand the program this year, building on its success. Each of the six TNInvestco funds chosen are receiving an allocation of $20 million in gross premium tax credits. The goals of TNInvestco as outlined by state officials are to develop Tennessee’s entrepreneurial infrastructure, to bring additional jobs to the state, and to diversify the state’s economy. According to the most recent data, the vast majority of jobs in the state are created by small businesses with 500 or less employees.

SCORE Report offers new ideas

In 2009, former Tennessee United States Senator Bill First started the Tennessee State Collaborative on Reforming Education (SCORE), an initiative aimed at jumpstarting long-term educational change in Tennessee to improve the state’s educational system. In October, the organization released a report entitled “A Roadmap to Success: A Plan to Make Tennessee Schools #1 in the Southeast within Five Years.” The report offers 63 measurable steps to reform education in the state.

The SCORE recommendations do not require increased funds; instead utilizing resources the state already has and by tapping into private funding, like the Gates Foundation, to implement innovative new strategies in the classroom.

The SCORE report recommendations are based on four key strategies:

• Embrace high standards

• Cultivate strong school leaders

• Ensure excellent teachers

• Utilize data to enhance student learning

The report says Tennesseans must embrace the state’s more rigorous assessments and higher academic standards. Teachers must be given the support they need to elevate classroom instruction to meet those expectations, including the creations of professional learning communities where teachers can learn best practices. SCORE also recommends Tennessee rethinks teacher compensation systems with a plan to reward excellence. The Governor has called for a Special Session to address these issues.

Healthcare Choice Act will offer state-based healthcare reform

The Healthcare Choice Act will be introduced this year in an effort to lower health insurance costs and provide choice to all Tennesseans. The legislation would allow Tennesseans to purchase health insurance plans from companies in other states, a practice that is currently prohibited.

The sponsor has said that Americans want and deserve a health care reform alternative to the government-run health care that is being discussed in Washington. Supporters say reform is better handled at the state level than by the federal government, and the legislation will lower heath insurance costs and provide more choices to Tennesseans. The Health Care Choice Act will expand the number of health care plans available for purchase from 127 in Tennessee to potentially more than 5,000 plans nationwide.

Lawmakers to consider traffic camera proposals

Over the summer and fall, lawmakers have held numerous special committee meetings devoted to examining the use of traffic cameras in communities across the state. Cities and counties in Tennessee and across the country have increasingly turned to the automated systems for surveillance of intersections and roadways.

Many lawmakers have questioned the conflicting research that the traffic cameras reduce accidents. The special study committees that met over the summer and fall saw lawmakers bring both supporters and opponents of the cameras in for discussion and testimony.

Various law enforcement officials attended the special study committee meetings to testify in favor of the traffic cameras. Law enforcement officials testified that the cameras provide many benefits to the community, primarily making areas safer for drivers. Officials contend the cameras reduce fatalities, improve traffic flow and intersection blockage, and make driver behavior safer.

In addition, law enforcement officials say that the cameras allow them to respond to community calls for increased enforcement in problem areas. They testified that the cameras free up police officers from traffic duty, and allow them to attend to other crimes taking place within the community.

Despite the testimony from law enforcement officials, lawmakers said they receive regular complaints from constituents regarding the use of traffic cameras. Lawmakers echoed criticisms from constituents that in addition to a violation of rights, the motivation behind the cameras is money, not safety.

Several pieces of legislation have been filed in response to constituent concerns, and will be considered in 2010. In addition to filing legislation to do away with the cameras, lawmakers have been exploring other possibilities to lessen their impact. Most notably, legislators have discussed forcing communities to display clearer signage, re-directing the money raised from citations to road or education funds, and mandating that only companies headquartered in Tennessee be allowed to operate or process cameras or citations.

Contact Representative Hensley at:

106 War Memorial Building

Nashville TN 37243

Toll Free 1-800-449-8366 ext. 17476

Fax 615-253-0231

855 Summertown Highway

Hohenwald TN 38462

Phone 931-796-2018

Cell Phone 931-212-8823

E-mail: rep.joey.hensley@capitol.tn.gov