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Chamber Identifies Legislative Priorities
legislature

4,600.

That was the number of bills filed during the first year of the Tennessee General Assembly’s 105th session. The second year of the two-year session reconvened on January 8, and expectations are that an equal number of bills will be introduced.

That’s roughly 9,000 bills for the legislators to study and debate. Many will not be seriously considered by the body’s many committees, and others will be dispatched quickly.

The bills believed likely to receive the most attention include the budget, a statewide cable franchise proposal, Pre-K funding, legislation addressing illegal immigration, tort reform, and open government requirements.

On top of all those big issues, 2008 is an election year and that alone can create issues. Not only will legislators be interested in a short session – so the electioneering can begin – but both sides may be paying special attention to votes that can be used as election fodder.

The 9,000 bills the General Assembly is faced with represent the desires of interest groups, lobbyists, organizations, cities and counties, and regular citizens. The Knoxville Chamber is engaged in the legislative process, too. The organization represents the interests of the local business community and works to advance an agenda of pro-business and pro-growth policies.

Over the past several months the Chamber’s Government Relations and Public Policy Committee has carefully examined potential legislative items. In the end, it identified a specific and limited group of proposals that are most important to the Knoxville business community.

These items all have to do with economic development and improving the business community and business climate in some way. The legislative agenda is specific and limited so legislators can easily focus on the items most important to the Chamber. The agenda includes positions on education and workforce development, economic development incentives, and healthcare.

Now the real work begins.

The Committee will work to express its desires to the members of the General Assembly and it will continue to meet throughout the legislative session to consider other bills.

Knoxville Chamber 2008 State Legislative Agenda

After careful consideration by the Government Relations and Public Policy Committee the Chamber recommends the following issues as top legislative priorities.

Education

A skilled, well-prepared workforce is the key to our success in the global economy. Tennessee’s K-12 education system is not adequately preparing students for college or the workplace, and the state consistently ranks near the bottom of state comparisons of academic attainment and college graduates. While the state has addressed funding inadequacies in the BEP, those changes must not be rolled back. The Knoxville Chamber also:

a. Recommends immediate adoption of the Tennessee Diploma Project’s higher standards, which will strengthen the state’s academic rigor and more accurately reflect the knowledge and skills necessary to prepare students for college or work. These standards should ensure that all students score at the ACT benchmarks.

b. Urges the legislature to pass SB611/HB653 making adjustments to the HOPE Scholarship program and include Senate Amendment 2, which awards a scholarship supplement to Tennessee Scholars. The supplement awards students that complete the requirements of the Tennessee Scholars program – a more rigorous academic track.

c. Supports Governor Bredesen’s recognition of UT Knoxville as the state’s flagship research campus and encourages him to provide funding appropriate to sustaining the research, education, and economic development activities of the university. Also supports the continued support and growth of Pellissippi State.

High-Tech Economic Development Incentives

Tennessee’s current economic development incentives are aimed at manufacturing/distribution categories or other large-scale employers. This structure overlooks the fact that new-economy, research and development, and technology companies are important to the future of Tennessee and the Innovation Valley. Therefore, the Knoxville Chamber:

a. Recommends adjusting the required number of jobs created to qualify for the Jobs Tax Credit for high-tech (agricultural science, materials science, media technology, nano-technology, renewable energy, and research and development) businesses if the business invests $500,000 and hires five new employees at an average salary of 150 percent of the county’s average wage. In non-economically distressed counties like Knox, these companies would qualify for the $2,000 Job Tax Credit.

b. Urges the legislature to allow the Emerging Industry Tax Credit to be applied to federally designated empowerment zones in those counties the state defines as non-economically distressed.

c. Recommends redefining “qualified business enterprises” for economic development incentive purposes to include high-tech businesses that employ or align with the core competencies of the state’s research institutions.

Healthcare

The Knoxville Chamber supports the effort throughout the region to offer accessible, affordable, and adequately reimbursed healthcare services for citizens through a financially sustainable network of medical centers, clinics, and individual offices. The Chamber remains particularly concerned about the growing number of citizens without health insurance and supports efforts to identify creative approaches to addressing this threat to the well-being of both individual citizens and the business community. The Chamber supports CoverTN, its expansion, and opposes mandates that businesses provide healthcare.

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