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2020 Legislative Recap

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2020 Legislative Recap THE RESULTS REPORT: 2020 LEGISLATIVE RECAP WHAT’S INSIDE: CHAMBER COMPLETES 2020 AGENDA THE 2020 CHAMPION OF COMMERCE AWARDS 2020 LEGISLATIVE SCORECARD 2020 TENNESSEE CHAMBER & MANUFACTURING ESSENTIALS NEW FOR 2020! A MUST-HAVE FOR ANY VEHICLE! RESERVE BY DECEMBER 21, 2020 Support local business by reserving your official Tennessee Local Business specialty license plate. BUILD•MAKE•CREATE IN CASE YOU MISSED IT >>> Tennessee Economic Recovery Group Subcommittee Reports The Tennessee Chamber has served on Governor Lee’s Coronavirus Task Force and Economic Recovery Group (ERG). In April, the Chamber was tasked by Governor Lee and ERG Director, Mark Ezell to organize 11 ERG Subcommittees for the purpose of providing direct recommenda- tions to the ERG. On April 23rd, all 11 subcommittees submitted reports in a consol- idated 85 page document to Governor Lee and Director Ezell. FOR FULL REPORT, VISIT: www.tnchamber.org/ergreport SIGNIFICANT SUCCESSES IN 2020 The legislative trifecta of 2020 came to a close in August, providing the grand finale to nothing short of a historical year for busi- ness in Tennessee. The regular 2020 session kicked off as usual in January under the leadership of Lt. Governor Randy McNally and newly elected Speaker of the House, Cameron Sexton, but abruptly came to a halt in mid-March when the General Assembly recessed due to the growing presence of COVID-19 in Tennessee. In the days leading up to the recess, members approved a bare- bones version of Governor Bill Lee’s originally proposed budget, stripping nearly all increased funding. Despite the unexpected abbreviated session, the Tennessee Chamber was able to make significant strides for the Tennessee business community. Prior to the General Assembly’s return in June, disagreement between the upper and lower chambers created uncertainty regard- ing the scope of legislation that would be considered when members returned as well as the level of public access that would be available for legislative proceedings. In turn, many bills were shelved for the year despite forward motion by the House due to the Senate’s decision to only hear COVID-19 and time-sensitive legislation. In addition, the Senate greatly restricted public access to legislative proceedings by limiting committee hearings and floor sessions to members, staff, and press. Despite these challenges, the Chamber was able to advance additional legislative priorities. The General Assembly revisited the state’s budget in June, resulting in approximately $1.5 billion in total budget cuts. A compro- mise between the two houses proposals manifested itself in a $25 million expanded sales tax holiday and $210.5 million for grants to city and county local governments. The funds are unrestricted and will be distributed by population, with a maximum award of $10 million per entity. The budget additionally provides for a $50 million employee buyout program to be implemented by Gover- nor Bill Lee as well as authorization to shift dollars from numerous state agency funds if needed. Perhaps most important to the business community was the General Assembly’s enactment of liability protection for unsubstan- tiated claims related to COVID-19. In early August, Governor Bill Lee called a special session to take up three administration bills, including COVID-19 liability protection. While this bill took a different approach than the regular session bill, it achieved the liability protection so desperately needed by the Tennessee business community. The Tennessee Chamber appreciates the hard work of Governor Bill Lee and his team, Senate and House leadership, and all of you who participated in the grass roots efforts culminating in the enactment of Public Chapter 1 of the Second Extraordinary session. 2020 has been nothing short of extraordinary. In addition to legislative efforts, the Chamber has continued its regulatory advocacy in several areas including worker’s compensation, unemployment benefits, environmental policy, tax policy, human resources and more. The Chamber continues to represent the business community as a member of Governor Lee’s Economic Recovery Task Force and maintains conversation with key policy leaders on behalf of the Tennessee business community. We thank you for your continued partnership and look forward to representing you in the months and years ahead. A NOTE TO OUR VALUED TENNESSEE CHAMBER MEMBERS: A special thank you goes to all Tennessee Chamber members who diligently advocated on behalf of our organization throughout the 2020 legislative year. It is because of the grassroots efforts of Tennessee business leaders that our organization was able to achieve high levels of legislative success in the 2020 sessions. The strength of our team in Nashville comes from the respected business leaders who dedicate time and resources to our organization and maintain strong reputations in every corner of the state. Tennessee Chamber staff has worked extraordinarily hard to protect every interest of the Tennessee business community. Our tireless goal is to continue improvements to the business climate within our state and it is because of Tennessee’s bold commitment to business that we have become a premier place for businesses to grow and flourish. We will continue our work in the areas of environmental regulation, tax policy, workforce development, human resources policy, and economic development to name a few. Members are the pulse of the Tennessee Chamber of Commerce & Industry/Tennessee Manufacturers Association. Thank you for the opportunity to advocate on your behalf. Respectfully, Bradley Jackson Ryan King Mallorie Kerby Lauren Cecil President & CEO Associate Vice President Associate Vice President of Manager, Government Affairs of Government Affairs Environment and Energy OUR SUMMARY OF SUCCESSES: Despite the unexpected and abrupt halt in the session during the week of March 16, the Tennessee Chamber made significant headway in advocacy efforts, advancing all of its 2020 legislative agenda (eligible for consideration) and defeating a number of anti-business bills. Here is short summary of our successes. (SEE LISTING ON PAGE 9.) CHAMBER COVID-19 RELIEF INITIATIVES: Headlining the Chamber’s revised 2020 legislative agenda was critical legislation to provide liability protections to businesses, schools, hospitals, and other entities who may be subject to frivolous COVID-19 related lawsuits. Beginning in April, the Chamber led efforts to enact liability protection policies as it became clearer that unwarrant- ed actions may be taken against members of the Tennessee business community. Leading up to the June legislative session, the Chamber organized one of the broadest coalitions the state has seen to tackle the issue of safe harbor protections. While legislation did not pass during the legislature’s June session, Governor Bill Lee and legislative leaders, called legislative members back to Nashville for a special session. The move came following the strong urging and effort of the Chamber and advocacy from Chamber members. The call by Governor Bill Lee, Lieutenant Governor Randy McNally and House Speaker Cameron Sexton was unprecedented and showed their support and commitment to business recovery. Nearly 75% of House and Senate members voted to pass liability protections and on August 18th, Governor Bill Lee signed the legislation into law, creating Public Chapter 1 of Second Extraordi- nary Session. Throughout the pandemic, a myriad of states have added or attempted to create a rebuttable presumption for access to Worker’s Compensation benefits for those who believe they contracted the virus during work activities or those whose employment requires them to work outside of their home. Efforts to add COVID-19 as a presumption under Tennessee’s Worker’s Compensation laws were attempted during the August special session and were handily de- feated as a result of efforts by the Chamber. TAX POLICY: Beginning in October of 2020, Public Chapter 646 requires marketplace facilitators to collect and remit sales tax on behalf of third party marketplace sellers. This will ensure that significant previously uncollected sales tax revenue will now be remitted to the state of Tennessee, leveling the playing field for businesses. It is likely already having a significant impact on voluntary compliance as sales and use collections in Tennessee in the catalogue and internet category show significant increase. Public Chapter 759 is the result of legislation from the June legislative session which lowers the tax collection threshold for marketplace facilitators on remote sellers from $500,000 to $100,000. Combined, all marketplace facilitator related legislation from all 2020 sessions is projected to produce nearly $200 million in new revenues. RIGHT TO WORK: A constitutional resolution (Senate Joint Resolution 648) to allow citizens to vote to embed the right-to-work into the state constitution was passed on June 17th and signed by both speakers. The 112th General Assembly will now be required to adopt an identical resolution before the constitutional initiative is placed on Tennessee ballots in 2022. ENVIRONMENT & ENERGY: The Chamber shepherded the enactment of Public Chapter 712 which clarifies the regulatory status of soil, an issue that can have a significant impact on urban development. Because of the imminent creation of a regulatory scheme by the Department of Environment and Conservation, the Senate recognized the urgency of this issue and advanced the bill. The Chamber played a significant role in
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