Allan F. Ramsaur, TBA Executive Director
(800) 899-6993 or (615) 277-3200
aramsaur@tnbar.org
January 22, 2004
General Assembly gets down to work
The Tennessee General Assembly began serious work this week although calendars are still light. Everything points to an early adjournment as mentioned last week. In the Senate, for example, committee chairs are talking about enforcing the rule that permits a member to roll (or postpone) a bill as of right only once. That would radically change things all by itself.
TBA initiatives
The TBA has secured the introduction of two of its bills and is working with the Tennessee Banker's Association on a third major measure. The first bill to be sponsored by Senator David Fowler will correct what is believed to be an inadvertent error rather than a policy decision. Certain family owned non-corporate entities with passive income are not currently subject to franchise and excise taxes. These entities must be 95 percent owned by family members, however, to qualify. When it is necessary to include a trust as an owner in, for example, the situation where a minor is to become an owner of an interest, it is very important that the minor's trust be counted as a family member to preserve the tax benefits.
Under current law, such a trust created by will after the death of the testator counts as a family member while an identical trust created by a living person for the benefit of a son or daughter does not. This measure, if adopted, would eliminate this odd differential treatment. It is too early in the legislative process to list bill numbers for these bills. We hope to have them by next week.
The second measure is the omnibus bill recommended by the TBA Estate Planning and Probate Section. It covers a variety of topics from the color of ink on a notary's stamp to guardianship and conservatorship records.
The third bill that the House of Delegates and the Board of Governors have agreed to sponsor is the Uniform Trust Code. In general terms, subject to certain non-uniform local amendments to preserve the effect of current law, this measure will place in statute governing principles which are often treated only in case law currently.
Other issues
Other issues of interest include worker's compensation. As mentioned in last week's LegisFlash, the issue has again come to the fore as happens in many years. Labor and management remain fundamentally apart of certain issues. It is not always clear at the beginning of a session of the General Assembly whether either side will actually make a concerted push to change the law.
This year, as last week's edition of Legisflash was "going to press" a speech by Governor Bredesen increased the likelihood that some measure in this area will receive intense scrutiny and may pass. The Governor expressed concerns in anecdotal form about higher worker's compensation costs in Tennessee in comparison with other states and described what he considered the adverse effects on Tennessee’s search for new jobs and investment.
The Governor did not spell out any specific remedies or even specific areas of current law which he thought might be causing the difficulties he saw. He asked, indeed almost demanded, that the legislatively establish committee on workers' compensation study the matter and come back with legislative recommendations this year. He asked that a "study" not be a burial ground for what he felt were needed reforms. He did reiterate that he did not want the rights of workers to be damaged, however.
TBA legislative tracking service
The TBA will soon be again providing members with a bill tracking service so that you can read abstracts of bills, check their status in both houses, find out who is sponsoring them and link to full versions of the legislation.
As we did last year, the TBA will provide a Big List of about 300 bills and resolutions that are of interest to the Tennessee legal community. In addition, we’ll have a smaller list to help you keep track of legislation in which the TBA has an interest of record — bills the TBA initiated, bills on which the TBA has taken a position or bills on which the TBA has policy.
With the first deadline for filing legislation today, expect a lot of bills to show up soon on the tracking lists.
If you like your shrimp big …
The TBA's annual reception for members of the General Assembly is scheduled for Tuesday, Feb. 17, at the Tennessee Bar Center. The popular event gives TBA members a chance to meet with state leaders in a relaxed atmosphere. This year the event is also tied to the TBA On the Hill program — scheduled for Wednesday, Feb. 18 — during which TBA members from across the state are invited to Nashville to meet with their local representatives and discuss legislation that will be coming up during the session.
Questions, comments? Contact TBA Legislative Counsel Steve Cobb at SAC@wallerlaw.com or TBA Executive Director Allan F. Ramsaur at aramsaur@tnbar.org
