Business Insider TENNESSEE CHAMBER OF COMMERCE & INDUSTRY SUMMER 2017
In This Issue: • House and Senate Scorecard
• Legislative Outcome Chart
• Tennessee Politics 2018 • Manufacturing in Tennessee
SAVE THE DATE OCT. 16,, 2017
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IN THIS ISSUE Page 3 2017 Board of Directors 2017 Legislative Session Strengthens Tennessee’s Business Competitiveness Business Tax Update: IMPROVE Act Signed by Governor Executive Committee Page 6 Greg Martz, Chairman of the Board, Chemours House Scorecard Larry Combs, Incoming Chair, Brown-Forman/Jack Daniel Page 8 Clay Thompson, Past Chair, Caterpillar, Inc. Senate Scorecard Kelly McCreight, Secretary-Treasurer, Hamilton-Ryker Company Page 9 Bradley Jackson, President and CEO, Tennessee Chamber of Commerce & Industry Legislative Outcome Chart Miles Burdine, Chair of Education & Workforce Development Committee, Page 12 Kingsport Chamber of Commerce Tennessee Politics 2018 Stacey Cothran, Chair of Environment & Energy Committee, Waste Management Page 13 Eva Lynne Disbro, Chair of Human Resources Committee, McKee Foods Corporation Women in Business Rebecca White, Chair of Manufacturing Excellence Council, LyondellBasell Industries Page 20 Dennis Wagner, Chair of Public Affairs Committee, AT&T SPECIAL UPDATE: Manufacturing in Tennessee Tennessee Chamber Puts Deeper Focus on Manufacturing Carl Hartley, Chair of Taxation Committee, Baker, Donelson, Bearman, Caldwell Page 24 Michael Stagg, General Counsel, Waller 2017 Legislative Reception Bryan Daniels, TCCE Representative, Blount Partnership Page 29 Don Bradford, At Large Member, EnSafe, Inc. Environmental Policy Statement Tina Hodges, At Large Member, Advance Financial Page 31 David Locke, At Large Member, BlueCross BlueShield of Tennessee Education Workforce Page 36 Board Members Historical Facts East Region Val Armstrong, Tennessee American Water Company Mary Begley, Appalachian Power Co. Jerry Caldwell, Bristol Motor Speedway William Carver, Kramer Rayson LLP Robert Gagliano, BASF Corporation Staff Paul Leath, Chattanooga Gas Bradley Jackson – President Charley Poe, Eastman Russ Watkins, Partners Rosie Dykes – VP of Administration Suzie Lusk – VP Events and External Affairs Jeff Weida, Arconic, Inc. Charles Schneider – Director of Government Affairs Middle Region Ted Boyatt – Director of Strategy and Legislative Affairs Josh Brown, Pfizer, Inc. Denise Rice – Director of the Tennessee Manufacturers Association Tracy Brown, US Bank Carolyn Davis – Manager of Events and Outreach Drew Goddard, Bass, Berry & Sims, PLC Robert Klein, US Smokeless Tobacco Shannon Tate – Manager of Administration Brian McCullar, LBMC Bob Gaskill – Membership Relations Brad Montgomery, State Farm Insurance Companies Jona Coppola – Executive Assistant Brad Jaffe, Mars, Incorporated Susan Ubico – Administrative Assistant Rhedona Rose, Tennessee Farm Bureau Federation James Spradley, Standard Candy Company, Inc.
West Region Rob Ashe, Packaging Corporation of America Gene Baker, Smith & Nephew Keith Carver, University of Tennessee/Martin Craig Cowart, Jackson Lewis, P.C. Bryan Everette, TBDN TN Company Jeff Fedorchak, TruGreen For Advertising, please contact J. Lee Fry, Dixie Gun Carolyn Davis A.J. Sain, FedEx [email protected] Mandy White, Jackson Chamber The Business Insider is a publication of the Tennessee Chamber of Commerce & Industry At Large 414 Union Street, Suite 107 Eddie Davidson, Piedmont Natural Gas Company Nashville, TN 37219 Jason Fisher, Bridgestone Americas, Inc. Please visit www.tnchamber.org for archived issues. Nathan Green, Vanderbilt University Jeff Hollett, John Deere Power Products Andrea Lindsley, DVL/Seigenthaler Bill Penny, Burr & Forman LLP Max Shilstone, Clean Line Energy Partners LLC Tim Slattery, Nissan North America, Inc. 1 Business Insider | Summer 2017
Chairman’s Corner A Message from the President
legislators who voted for this bill Tennessee Chamber for their long-term vision for state success. Operations Remain Strong Another piece of legislation The Tennessee Chamber is that the Chamber strongly support- proud to report a strong legislative ed was the expansion of Tennessee session for business and industry. Reconnect to community colleges. 2017 marked a pivotal year for the Governor Haslam’s Drive to 55 is Tennessee Chamber as we worked revolutionizing access to post-sec- on a substantial number of bills ondary education. The passage in a variety of areas to ensure of Tennessee Promise has already Tennessee’s business climate Greg Martz - Chair- TN Chamber made college access possible for remains strong. We are proud to Bradley Jackson, President of Commerce Board of Directors graduating high school seniors, announce that no major legislation and the expansion of Reconnect passed this year that was outright and events are always working to As we close another session has now made that same access opposed by the Chamber. In produce relevant content focused of the Tennessee General available to all Tennessee adults. addition, we were successful in on business operations, compli- Assembly, it is safe to say that This is truly groundbreaking and advocating for fair and balanced ance, public policy and interaction this year has been a success- makes our state the only one in improvements to our transporta- with our elected leaders. We also ful session for the Tennessee the U.S. with tuition-free education tion and infrastructure system and are doubling down on our role Chamber and businesses across available at all of its community fairer taxation of manufacturers, as the Tennessee Manufacturing the state. Bradley Jackson and and technical colleges. We extend which is key to our continued eco- Association, going statewide with the Chamber team have done a our thanks to Governor Haslam nomic growth. The business com- a number of listening meetings fantastic job moving legislation and the entire legislature for their munity this year made a strong and providing more resources to that supports business growth commitment to post-secondary stand, and our legislative advocacy our members. and stopping bills that would education for all Tennesseans. at the Capitol was focused on coa- We are also thankful for our hinder economic development in In addition to the great work lition-building with local cham- local chamber partners who our State. I would like to extend impacting public policy, the bers and business who constantly worked diligently across the state my thanks and congratulations Tennessee Chamber is putting a re- weighed in with members of the to get the grassroots power of the to the entire team for a very newed focus on manufacturing. I Tennessee General Assembly. In business community to legislators productive session. am proud to welcome Denise Rice the end, we believe this made the in supporting the IMPROVE It all starts with the ap- to the Chamber team to spearhead GLIIHUHQFHDVWKHÀQDOYHUVLRQRI act. There is a sense of renewed proval of Governor Haslam’s manufacturing operations. The the IMPROVE Act passed with strength in the business communi- IMPROVE Act. In addition to Tennessee Chamber also serves strong majorities in both the ty through our grassroots organi- improving Tennessee’s transpor- as the Tennessee Manufacturing House and the Senate. zation and communication across tation and infrastructure, this Association, and for several years Now that the session is over, our great state. Our collective legislation will enact the single we have been developing a strategy we shift gears a bit and focus on work is making a difference, and sales factor and put our state to strengthen the TMA arm of ways to provide additional value we see it each day. in a much more competitive the Chamber. Denise comes to to you, our members. As an or- In closing, we offer our thanks position relative to neighboring the team with decades of strong ganization that is 100% privately to our elected leaders, Governor states for manufacturing growth. manufacturing leadership and has funded by member businesses Bill Haslam, Lt. Governor Randy Almost immediately following played a key role in the growth across Tennessee, we know you McNally, Senator Mark Norris, passage of the act, Nokian Tyres and leveraging that has taken place expect a strong return on your Speaker Beth Harwell, Rep. announced their expansion in in the southeastern region of the investment. To that end, and after Charles Sargent and Rep. Gerald rural Rhea County, Tennessee. VWDWH,DPFRQÀGHQWVKHZLOOEHD hearing from you, we are focusing McCormick and all of those mem- The Chamber fought tirelessly fantastic addition. on a number of areas. Top on our bers in House and Senate that to get this bill through, and it Finally, Bradley and the team list is workforce development. fought for business this year. was not easy. The bill also in- will continue to be active and Local communities and businesses cluded adjustments to fuel taxes, visible this summer with a road are doing great things, and the creating much debate among leg- show across the state. Please Tennessee Chamber wants to help islators. But this long-overdue look for more details in upcoming and not duplicate good work that increase will help fund roughly communications. On behalf of is already happening. To that end, $10 billion in road projects in all the Chamber Board of Directors, I we are always in search of ways to 95 counties currently sitting in would like to wish everyone a safe enhance our workforce and are a backlog. Our road infrastruc- anandd happyhappy summer!summer! expecting to roll out a number of ture is vital to business health initiatives this year that will fur- and growth, and the Chamber ther that goal. Also, our seminars would like to thank all of those
2 Business Insider | Summer 2017
2017 LEGISLATIVE SESSION STRENGTHENS TENNESSEE’S BUSINESS COMPETITIVENESS By: Bradley Jackson, Charles Schneider and Ted Boyatt Despite the politically unpredictable climate that has seem- facturers’ franchise and excise tax assessments, later moving to ingly evolved since the 2016 elections, Tennessee’s 2017 leg- a triple-weighted formula in 2014. Although the Tennessee islative session produced some of the most significant policy Chamber played a major role to get both of these revised tax as- successes for the Tennessee Chamber and our state’s business sessment formulas enacted, it was apparent from the feedback of community in recent memory. Although much of the session our business and manufacturing members that our state needed was marked by political volatility and turbulence, the final leg- further action on both manufacturing taxes and transportation islative days following passage of a highly-contentious tax and infrastructure in order to remain economically competitive. infrastructure bill, along with a historic $37 billion state budget, To remedy these obsolete transportation and business tax saw battle-fatigued legislators temperately and relatively peace- structures and generate adequate funding for much-needed fully embrace a delayed May adjournment to return home to road projects, Governor Bill Haslam introduced the IMPROVE their districts. Act, or what would later become known as the Tax Cut Act of Overall, this year’s session will most likely be remembered 2017. Upon its first public introduction in late January, legis- for addressing the key issue of taxes, with lawmakers voting to lators initially gave the proposal a cold reception. However, as modernize Tennessee’s outdated tax laws relative to both trans- it progressed through the committee system, legislative leaders portation infrastructure and business taxes on manufacturers. and administration officials masterfully renegotiated and strate- Prior to 2017, Tennessee’s fuel taxes, the revenues from which gically modified the bill to offset the moderate fuel tax increases are dedicated to funding road and transportation projects, had with simultaneous cuts to other taxes on manufacturers, per- remained stagnant for nearly 30 years. These static fuel tax rev- sonal investment income, and even grocery purchases. When enues, combined with rising construction costs, booming infra- combined with input and mounting grassroots support from the structure demands, and improved vehicle fuel efficiency stan- Chamber and other allied partner organizations, the legislation dards, had created a multibillion-dollar backlog of road projects slowly evolved into a more comprehensive policy solution for across the state. both taxes and infrastructure that could garner broad public and Concurrently, for our state’s economic development relative legislative approval. In the end, the final result called for reason- to manufacturers, persistent questions surrounding the fairness able hikes of 6 and 10 cents on gas and diesel taxes, respectively, of the state’s business taxes had lingered since 1996. In that year, while also cutting a combined total of over $400 million annual- Tennessee adopted a double-weighted sales formula for manu- ly in business and personal taxes, including a critical single sales
Continued on page 35
Business Tax Update: IMPROVE Act Signed by Governor
By: Carl E. Hartley, Esq., Chair, TN Chamber Tax Committee
On April 26, Governor Haslam signed the IMPROVE Act (that is, the Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy Act), also known as the 2017 Tax Cut Act. The Act is now 2017 Public Chapter No. 181.
A. State Transportation Infrastructure Projects and Funding. Funding sources include several taxes and fees, with the The Act specifically lists 962 road and bridge projects principal sources being an increase over three years in the gas across the State which, at some point, will be funded in and diesel taxes. The current 20¢ per gallon gas tax will be whole or in part by sources within the Act. These projects increased to 24¢ effective July 1, 2017, then to 25¢ effective impact all of Tennessee’s 95 counties in varying degrees. July 1, 2018, and finally 26¢ effective July 1, 2019. Similarly,
Continued on page 33 3 Business Insider | Summer 2017
What is the Return on Your MEMBERSHIP INVESTMENT?
The Tennessee Chamber of Commerce is continuously delivering solutions to produce real results for our members.
One of the most important benefits we offer to our members is our ability to affect actual, quantifiable cost savings to your company’s bottom line and Tennessee’s business community at large. By investing in the Tennessee Chamber with your membership, you help equip our team with the tools and resources we need to research, analyze, and mobilize a robust public advocacy operation both in the halls of the state capitol and in targeted districts across the state to influence public policy outcomes.
With your support and investment, we leverage our expertise and organizational capital to inform and advise legislators and policymakers on issues of critical importance to our members, elevating the cause of business and industry in Tennessee and translating growth-friendly public policy into hundreds of millions of dollars in tax, regulatory, and workforce-based cost savings to you and your business.
The Tennessee Chamber’s total impact on the 2017 legislative session is estimated to have saved employees more than
$222,410,100+ Business Insider | Summer 2017 Enacting Growth-Driven TAX RELIEF for Businesses $15+ Million TAX ANNUALIZATION LEGISLATION supported by the Tennessee Chamber will permit companies to base their quar- terly franchise and excise tax payments on the previous year’s payment instead of current quarterly revenue. This new law (HB 320/SB 1207) is estimated to save businesses more than $15 $113.3 Million million over the next three years. THE IMPROVE ACT (HB 534/SB 1221) included a provision cham- pioned by the Tennessee Chamber $11.6 Million allowing manufacturers to use a single-weighted sales factor A RETALIATORY TAX BILL (HB301/SB 1189) threatened to increase the cost of apportionment formula for their workers’ compensation insurance by automatically adding taxes and fees on franchise and excise tax assess- insurance companies based outside of Tennessee. The Tennessee Chamber sup- ments, saving our industries ported an amendment that, instead, will allow disputes arising over unequal $113,300,000 per year in lower taxation on in-state versus out-of-state insurers to be settled in a local appel- taxes. late court, saving businesses an estimated $11,625,000 in potential tax and premium increases.
Investing in a $9.2 Million Through the historic expansion of the TENNESSEE RECONNECT PROGRAM, CAREER-READY any eligible adult resident of the state without a degree is eligible to return to a community college or postsecondary institution to earn an associate-level degree or certification free of tuition and fees. The WORKFORCE Tennessee Chamber estimates that this last-dollar scholarship program will save employers roughly $9,157,700 in critical time and training costs for employees.
Preserving COST-SENSITIVE Solutions for REGULATORY REFORMS $53.2 Million $14.5 Million $5.6 Million Stopping mandates on health insur- Tennessee Chamber backed The Tennessee ance and pharmacy benefits saved BROADBAND LEGISLATION Chamber’s commit- businesses and insurers roughly (HB 529/SB 1215) aimed at ment to OPPOSING $53,227,400 combined in higher coverage expanding data access in EXCESSIVE costs. The Tennessee Chamber opposed mul- rural and underserved areas GOVERNMENT tiple proposed healthcare mandates ranging is predicted to increase REGULATIONS ranging from price fixing and requested coverage for business revenues and cut from labor mandates on paid specific types of cancer treatment (SB 210 and tax- associated expenses by leave (SB 1141) to prohibitions SB 367) to compulsory partial prescription refill a combined $14.5 million in on chemical flame retardants cost-sharing structures (HB 139). business tax credits and grant in consumer products (HB funding. 1029) saved employers and manufacturers an estimated $5.6 million combined in higher compliance costs. Business Insider | Summer 2017
Each year we present a graphic scorecard so you can see how your legislator voted on issues important to the business community. dEŚĂŵďĞƌŽĨŽŵŵĞƌĐĞΘ/ŶĚƵƐƚƌLJ,ŽƵƐĞ^ĐŽƌĞĐĂƌĚϮϬϭϳ House Vote Descriptions 1. HB165/SB209 - Tennessee Chamber supported bill that aligned state veteran hiring preferences with federal law, supporting Tennessee veterans 1. Veteran Hiring Preference Scheduling Employee 2. bill (F&E) Annualization 3. Learning Work-Based 4. Broadband 5. Cybersecurity 6. 7. Tennessee Reconnect Act (Passage) IMPROVE 8. Act (Sargent/Doss) IMPROVE 9. Act (Hawk) IMPROVE 10. Act (table Kumar) IMPROVE 11. Enforcement Quality Water 12. Prosper to Freedom 13. Air Permitting 14. dEŚĂŵďĞƌWŽƐŝƚŝŽŶ н н н н н н н н н Ͳ н н н н Speaker Harwell (R)+nv++++++-++++- 2. HB180/SB262 - Akbari, R. (D) + - + + + + + + + - + + - nv Tennessee Chamber Alexander, D. (R) + + + + + nv + + + - + + + pnv supported bill limiting local Beck, B. (D) +-+++++++- -+nv- mandates that interfere with Brooks, H. (R) +++++++++-++++ Brooks, K. (R) +++++++++-++++ private employer’s ability Butt, S. (R) +++++++- -+-+nv+ to determine employee Byrd, D. (R) +++++++- -+-+++ scheduling. Calfee, K. (R) + + + + + + pnv - - + - nv + + Camper, K. (D)+-+++++++-++- - 3. HB320/SB1207 - Carr, D. (R) ++++++nv++-++++ Annualization bill allows Carter, M. (R) +++++++++-++++ Casada, G. (R) +++++++nv+nvnv+++ companies to base their Clemmons, J. (D)+-+++++++-++- - quarterly franchise/excise Coley, J. (R) +++++++++-++++ tax payments on the Cooper, B. (D) +-+++++++-++- - Crawford, J. (R)+++++++- -+-+++ previous year’s payments, Curcio, M. (R) +++++++++-++++ instead of current quarterly Daniel, M. (R) +++++++++-++++ revenue. The Chamber Deberry Jr. J. (D) + pnv + nv + + + + + - nv nv + - has long supported this Doss, B. (R) +++++++++-++++ Dunn, B. (R) + + + + + + + + + - + + + pnv modernization effort. Eldridge, J. (R)+++++++++-++++ Faison, J. (R) nv++++++- -+nv+++ 4. HB445/SB1231 - Work- Farmer, A. (R) +nvnv++++++-++++ Based Learning: Authorizes Favors, J. (D) +-+++++++-++nvnv higher education to develop Fitzhugh, C. (D) + - + + + + + + + - - + - - Forgety, J. (R) +++++++++-++++ credit-bearing work-based Gant, R. (R) ++++++- - -+-+++ learning programs for Gilmore, B. (D) + nv nv + + + + + + - + + nv - students participating in job Goins, T. (R) +nv+++++-++-nv++ shadowing, apprenticeships, Gravitt, M. (R) + nv + + + + + + + - + + nv + Halford, C. (R) + + + + + + + + nv nv nv + + + and similar efforts as part Hardaway, G. (D) + - + + + + + - nv + - + - - of the Labor Education Hawk, D. (R) +++++++- -+nv+++ Alignment Program. Hazlewood, P. (R)+++++++++-+nvnv+ Hicks, G. (R) +++++++++-++++ 5. HB529/SB1215 - Hill, M. (R) +++++++- -+++++ Hill, T. (R) +++++++- -+++++ Broadband: establishes Holsclaw, Jr., J. (R)++++nv+nv++-++++ a grant program for the Holt, A. (R) ++++-+- - -+-+++ deployment and adoption of Howell, D. (R) +++++++++-++++ broadband internet access Hulsey, B. (R) +++++++- -+-+++ Jernigan, D. (D)+-+++++++-++nv- services. Authorizes electric Johnson, C. (R)+++++++++-++nv+ cooperatives to provide Jones, S. (D) +-+++++++-++- - cable or video service Kane, R. (R) ++++-++- -+-+++ Keisling, K. (R) + - + + + + + + + - - + + + in addition to providing Kumar, S. (R) +++++++- -+-nv++ broadband.
Voting Key: + Yea Vote pnv Present Not Voting Voted in support of Chamber position 6. HB545/SB547 – Ͳ Nay Vote nvNo Vote Recorded Voted in opposition to Chamber position Cybersecurity: Creates a reasonable notification 7. HB531/SB1218 - Creates the Tennessee Reconnect Grant, a scholarship program for adults who have standard to consumers in completed some college to obtain their higher education degree or certificate. the event of a cybersecurity 8. HB534/SB1221 - IMPROVE Act – Final vote on passage of transportation funding and tax cuts (4/19/17). breach. 6 Business Insider | Summer 2017
Each year we present a graphic scorecard so you can see how your legislator voted on issues important to the business community. 9. HB534/SB1221 - dEŚĂŵďĞƌŽĨŽŵŵĞƌĐĞΘ/ŶĚƵƐƚƌLJ,ŽƵƐĞ^ĐŽƌĞĐĂƌĚϮϬϭϳ IMPROVE Act – Doss/ Sargent amendment that enacts a modest increase in fuel user fees, cut taxes on food by 20%, singles sales factor tax rate for manufacturers. [House only]
10. HB534/SB1221 - Hiring Preference Veteran 1. Scheduling Employee 2. bill (F&E) Annualization 3. Learning Work-Based 4. Broadband 5. Cybersecurity 6. 7. Tennessee Reconnect Act (Passage) IMPROVE 8. Act (Sargent/Doss) IMPROVE 9. Act (Hawk) IMPROVE 10. Act (table Kumar) IMPROVE 11. Enforcement Quality Water 12. Prosper to Freedom 13. Air Permitting 14. dEŚĂŵďĞƌWŽƐŝƚŝŽŶ н н н н н н н н н Ͳ н н н н IMPROVE Act – Hawk Lamberth, W. (R)+++++++- -+++++ amendment alternative Littleton, M. (R)+++++++- -+-+++ that would have redirected Lollar, R. (R) +++++++-+-++++ auto sales taxes and put Love Jr. H. (D) +-+++++++-++- - Lynn, S. (R) +++++++++-++++ the burden of road funding Marsh, P. (R) +++++++++-++++ on Tennesseans, exempting Matheny, J. (R) + + + + + + + - - + - + + + out of state carriers and Matlock, J. (R) + + + + + + + - - + - nv + + tourists who use our roads. McCormick, G. (R)+++++++++-++nv+ McDaniel, S. (R)+++++++++-++++ [House only] Miller, L. (D) +-+++++++-++- - Mitchell, B. (D)+-+++++++- -+- - 11. HB534/SB1221 - Moody, D. (R) +++++++- -+-+++ IMPROVE Act – Kumar Parkinson, A. (D)+-+++++++-++nv- amendment that would Pitts, J. (D) +++++++++-++- - have removed the pro- Pody, M. (R) +++++++- -+-+++ Powell, J. (D) +-++++nv++-nv+-- growth single sales factor Powers, D. (R)+++++++- -+-+nv+ for manufacturers from the Ragan, J. (R) ++++++++++-+++ legislation. [House only] Ramsey, B. (R)+++nv+++++-++++ Reedy, J. (R) +++++++- -+-+++ 12. HB764/SB819 - Rogers, C. (R) +++++++- -+-+++ Requires other agencies Rudd, T. (R) + + + + + + - - - + - + + + Sanderson, B. (R)+-++++++++-+++ to refer potential water Sargent, C. (R)+++++++++-++++ quality violations to Sexton, C. (R) ++++++- - -+-+++ TDEC for investigations. Sexton, J. (R) +++nv+++- -+-+++ Maintains equal Shaw, J. (D) +-+++++++-++- - Sherrell, P. (R)+++++++- -+nv+++ application of Tennessee’s Smith, E. (R) +++nv-++++-+nv++ water quality enforcement. Sparks, M. (R) +++++++- -+-+++ Staples, R. (D) +-+++++++-++- - 13. HB979/SB473 - Stewart, M. (D)+-+++++++-+nv-- Freedom to Prosper Act Swann, A. (R) +++++++++-++++ limits the circumstances in Terry, B. (R) nv+++++nv--+-+++ which a local government Thompson, D. (D) + - + + + + + + + - nv + - - Tillis, R. (R) +++++++++-++++ may regulate occupations. Towns Jr., J. (D)+-+++++++-nv++nv 14. HB1405/SB1371 - Travis, R. (R) +++++++++-++++ Turner, J. (D) +nvnv++++++-++- - 2017 Tennessee Chamber VanHuss, J. (R)++++++- - -+-+++ agenda item. Establishes Weaver, T. (R)+++++++- -+-+++ clear guidelines for air White, D. (R) +++++++- -+-+++ White, M. (R) +++++++++-++++ pollution control boards Whitson, S. (R)+++++++++-+++nv to consider for industrial Williams, R. (R)+++++++- -+-+++ projects. Prohibits Windle, J. (D) +-+++++- - - -+nv- municipalities and Wirgau, T. (R) +-+++++++-++++ Zachary, J. (R) ++++-+- - -+-+++ counties from including unscientific land use or Voting Key: + Yea Vote pnv Present Not Voting Voted in support of Chamber position zoning ordinances to deny Ͳ Nay Vote nvNo Vote Recorded Voted in opposition to Chamber position air permits that would otherwise meet empirical standards.
7 Business Insider | Summer 2017
dEŚĂŵďĞƌŽĨŽŵŵĞƌĐĞΘ/ŶĚƵƐƚƌLJ^ĞŶĂƚĞ^ĐŽƌĞĐĂƌĚϮϬϭϳ Senate Vote Descriptions 1. SB209/HB165 - Tennessee Chamber supported bill that aligned state veteran hiring preferences with federal law, supporting Tennessee
1. Veteran Hiring Preferences Scheduling Employee 2. 3. Freedom to Prosper Cybersecurity 4. Water Quality 5. Enforcement Annualization bill F&E) 6. Broadband7. Act IMPROVE 8. Work-Based Learning 9. Air Permitting 10. Remove Committee Vote: Right to Automtaically Appeal Comp Cases Workers veterans dEŚĂŵďĞƌƉŽƐŝƚŝŽŶ н н н н н н н н н н Ͳ Lt. Gov. Randy McNally (R)++++++++++ 2. SB262/HB180 - Bailey, Paul (R)+++++++++nv Tennessee Chamber Beavers, Mae (R)+++++++-+nv Bell, Mike (R) ++++++++++ supported bill limiting local Bowling, Janice (R)+++++++-++ mandates that interfere Briggs, Richard (R)++++++++++ with private employer’s Crowe, Rusty (R)++++++++++ ability to determine Dickerson, Steve (R) + + nv + + + + + + - Gardenhire, Todd (R)+nv++++++++ employee scheduling. Green, Mark (R) + + nv + nv + + nv nv + + 3. SB473/HB979 - Gresham, Dolores (R)+++++++-++ + Haile, Ferrell (R)++++++++++ Freedom to Prosper Act Harper, Thelma (D)+++++++++- limits the circumstances in Harris, Lee (D)+-+++++++- which a local government Hensley, Joey (R)+++++++-++ may regulate occupations. Jackson, Ed (R)++++++++++ Johnson, Jack (R) + + + + + + + + + + + 4. SB547/HB545 - Kelsey, Brian (R)+++++nvnv+++ Cybersecurity: Creates a Ketron, Bill (R)++++++++nv+ + Kyle, Sara (D) +- -++++++- reasonable notification Lundberg, Jon (R) + + + + + + + + + + standard to consumers in Massey, Becky (R)++++++++++ the event of a cybersecurity Niceley, Frank (R)+++++++-++ breach Norris, Mark (R) + + + + nv + + + + + Overbey, Doug (R) + + nv + + nv nv + + + 5. SB819/HB764 - Roberts, Kerry (R) + + + + + + + - + - + Requires other agencies Southerland, Steve (R) + + nv + + + + nv nv nv to refer potential water Stevens, John (R) + + + + + + + + + + Tate, Reginald (D) + + nv + + + + + + nv + quality violations to Tracy, Jim (R) ++++++++++ + TDEC for investigations. Watson, Bo (R)++++++++++ nv Maintains equal application Yager, Ken (R)++++++++nv+ + of Tennessee’s water Yarbro, Jeff. (D)+- -++++++- quality enforcement.
Voting Key: + Yea Vote pnv Present Not Voting Voted in support of Chamber position Ͳ Nay Vote nvNo Vote Recorded Voted in opposition to Chamber position
6. SB1207/HB320 - Annualization bill allows companies to base their quarterly franchise/excise tax payments on the previous year’s payments, instead of current quarterly revenue. The Tennessee has long supported this modernization effort. 7. SB1215/HB529 - Broadband: establishes a grant program for the deployment and adoption of broadband internet access services. Authorizes electric cooperatives to provide cable or video service in addition to providing broadband. 8. SB1221/HB534 - IMPROVE Act. Passage of transportation funding and tax cuts. Enacts a modest increase in fuel user fees, cut taxes on food by 20%, singles sales factor tax rate for manufacturers. 9. SB1231/HB445 - Work-Based Learning: Authorizes higher education to develop credit-bearing work-based learning programs for students participating in job shadowing, apprenticeships, and similar efforts as part of the Labor Education Alignment Program. 10. SB1371/HB1405 - 2017 Tennessee Chamber agenda item. Establishes clear guidelines for air pollution control boards to consider for industrial projects. Prohibits municipalities and counties from including unscientific land use or zoning ordinances to deny air permits that would otherwise meet empirical standards.
Committee Vote SB0261/HB0939 - Senate Commerce & Labor Committee Vote: Removes the automatic appeal of workers compensation cases to the TN Supreme Court. This has been a long standing process that protects both employers and workers.
8 Business Insider | Summer 2017
2017 TENNESSEE CHAMBER LEGISLATIVE OUTCOME CHART During the first session of the 110th General Assembly, more than 1,650 bills and resolutions were introduced. Out of this number over 490 were enacted into law. Each bill was reviewed by the Tennessee Chamber to determine the potential harmful effects on the business community. Legislation determined to have a direct impact on business was reviewed by the appropriate committee and the Board of Directors to determine the Chamber position. This chart lists each of the bills and the result in 2017. This is our way of being accountable to you. Here are the results. Total Bill Positions 59; Opposed 29 / Supported 19.
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CHAMBER BILL SPONSOR SYNOPSIS POSITION STATUS SUCCESS COMMERCIAL LAW Business Cyber Security: As amended, Tennessee Chamber supported legislation modifying cyber information security requirements for business. This law requires information holders, following discovery or notification SUPPORT SB0547 Ketron PASSED of a breach of system security, to disclose the breach of certain system with Chamber HB0545 Rogers PC 0091 9 security to any resident of Tennessee whose personal information was, or amendment is reasonably believed to have been, acquired by an unauthorized person.
Manufacturing Mandated to Share Intellectual Property: Opposed by the Tennessee Chamber, this legislation would have required certain equipment manufacturers to make available proprietary digital electronic SB0888 Haile control and repair information to non-authorized repair providers. The bill FAILED OPPOSE HB1382 Jernigan would have further required these manufacturers to make confidential referred to 9 information available for purchase by any owner or independent repair 2018 provider even if the equipment is under warranty.
Litigation Financing: Revises various provisions regarding litigation lending including assignment and lien priority for financier behind attorney liens, NEUTRAL SB0305 Watson medical liens and liens based upon subrogation interests or rights of PASSED with Chamber HB0366 Lynn reimbursement related to the consumer's legal claim, and child support, PC 0212 9 Medicare, tax or any other statutory or governmental lien. amendment
CRIMINAL LAW / FIREARMS Firearms: This bill would have jeopardized the ability for private employers to prohibit working employees from carrying firearms. The bill established SB0131 Roberts that a person may carry a firearms almost anywhere and in any situation. FAILED OPPOSE HB0493 Holt Businesses believe that government should not interfere with private referred to 9 property rights and employee and employer relationships jeopardizing 2018 safety.
9 Business Insider | Summer 2017
CHAMBER BILL SPONSOR SYNOPSIS POSITION STATUS SUCCESS Firearms: Limits current law allowing businesses and private entities to control firearms on their property. As filed the bill would allow a valid SB1341 Bailey handgun carry permit holder to carry a firearm at any time and in all places FAILED OPPOSE HB0884 Matheny in Tennessee unless the permit holder has been drinking alcohol, is in a referred to 9 judicial proceeding, or is on school grounds and does not tell the principal. 2018
ECONOMIC DEVELOPMENT Broadband: Tennessee Chamber 2017 Agenda priority addressing the need for increased broadband across Tennessee. Establishes a $45m 5-year grant program for the deployment and adoption of broadband access SB1215 Norris PASSED services. Authorizes electric cooperatives to provide cable or video service SUPPORT HB0529 Hawk PC 0228 9 in addition to providing broadband. This legislation was compromised by all parties and will facilitate economic development in all areas of Tennessee. EDUCATION & WORkFORCE Union Apprenticeships: Union supported legislation that, if enacted, SB1313 Yarbro would create an office within the department of economic development to FAILED OPPOSE HB1391 Jernigan promote union-certified apprenticeship and work study programs. referred to 9 2018 Bathroom Bill: The Chamber was concerned about the negative economic impact this bill would have on Tennessee. As written, the bill creates a new statewide mandate that students in public schools and colleges must use SB0771 Beavers the restrooms and locker rooms that are assigned to the gender listed on FAILED OPPOSE HB0888 Pody their birth certificates. Similar bills in other states have led to economic referred to 9 boycotts. The state and federal departments of education have issued 2018 guidance allowing local education districts to make their own decisions on this complex issue.
Classroom Accountability, Evaluations: Haslam administration proposal related to education accountability and student achievement; revises and preserves various accountability provisions related to student achievement SB1196 Norris and growth data generated from state assessments as components of SUPPORT PASSED HB0309 Hawk teachers’ evaluation criteria; requires a gradual phase-in of student scores PC 0192 9 on state assessments to also comprise a percentage of a student’s final class grade.
Drive to 55, Expands Early Post-Secondary Opportunities: Legislation aimed to enhance Tennessee's workforce requiring local education SB0248 Tracy PASSED agencies to offer students in each high school at least four early post- SUPPORT 9 HB0022 Brooks, H. secondary credit-bearing courses, such as Advanced Placement, dual PC 450 credit, or International Baccalaureate courses. Drive to 55, TN Reconnect: Tennessee Chamber supported legislation enacting a major component of Governor Haslam's Drive to 55, Tennessee Reconnect establishes a last-dollar scholarship program to cover all tuition SB1218 Norris PASSED costs for any adult Tennessee resident without a postsecondary degree or SUPPORT HB0531 Hawk PC 0448 9 credential to attend a community college or lottery-eligible postsecondary institution in pursuit of a postsecondary degree or certificate.
Drive to 55, Work-Based Learning: Authorizes THEC and Board of Regents SB1231 Norris to develop credit-bearing work-based learning curricula for secondary or PASSED SUPPORT HB0445 Gant postsecondary students participating in job shadowing and PC 0283 9 apprenticeships as part of the Labor Education Alignment Program.
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CHAMBER BILL SPONSOR SYNOPSIS POSITION STATUS SUCCESS School Accountability and ESSA Implementation: Makes various revisions to student accountability measures due to the implementation of The Every Student Succeeds Act (ESSA), such as revising the way the state SB1198 Norris PASSED board of education and the department of education determine school SUPPORT HB0308 Hawk performance level; redefines performance-based thresholds for priority PC 0177 9 school designation and restructures associated improvement intervention and turnaround plans.
Elected School Superintendents: This annual proposal opposed by the business community establishes a mechanism for electing local school SB0340 Niceley superintendents which injects politics into our education system. The FAILED OPPOSE HB0570 Powers proposal would have required 2/3 vote of any local legislative body and a referred to 9 majority vote on a referendum to establish an elected superintendent in 2018 that locality. Student Placement: This legislation proposes a state-mandated academic redistribution scheme into local schools' student placement decisions by SB0572 Gresham FAILED adding teacher evaluations and student performance on assessments as OPPOSE HB0997 White, D. factors that determine a student’s public classroom assignment. referred to 9 2018
Teacher Evaluations: This bill would have threatened to roll back the SB0774 Beavers progress Tennessee has made on teacher evaluations requiring the FAILED OPPOSE HB0795 Terry Department of Education to provide an annual report that details the referred to 9 evidence of validity in teacher evaluations. 2018 Educational Assessment and Testing: This bill would limit public schools SB1300 Yarbro from giving students standardized test in certain grades, unless it’s solely FAILED OPPOSE HB1312 Turner for diagnostic purposes or required by federal law. The bill also prohibits referred to 9 testing as a method of evaluating a school employee. 2018 ENVIRONMENT & ENERGY Protecting Industrial Development: State Air Board. Tennessee Chamber 2017 agenda priority, this bill established clear guidelines for air pollution SUPPORT SB1371 Johnson control boards to consider for industrial projects. The bill prohibits PASSED Chamber led HB1405 Keisling municipalities and counties from including land use or zoning requirements PC 0284 9 in air pollution control regulations, certificates of exemption, or state effort implementation plans. Modifies Solid Waste Board: Proposed bill would alter the membership of the UST and SWD control board from 14 to 16 members. The Chamber and SB1242 Norris FAILED other business groups believe board composition should be comprised of OPPOSE HB0486 Lollar experts instead of activists who seek to stop projects and influence referred to 9 decisions. 2018
Legislative Approval of Storm Water Permits: Opposed by the Tennessee Chamber as drafted since it would require all storm water permits to have FAILED TO NEUTRAL SB0295 Briggs legislative approval. Current amendment states, prior to issuing a permit, PASS with HB0362 Zachary TDEC is required to submit a report on the financial impact of the national referred to amendment pollutant discharge elimination system (NPDES) permit to the chairs of the 2018 Government Operations committees under the procedures of Rule Review. Industrial Use of Underground Water: Two proposals were filed SB0776/ Kelsey/ concerning the Memphis Sands Aquifer. Already there are a number of SB0886 Harris permitting and regulatory requirements that business and industry must OPPOSE FAILED HB0816/ Lollar/ follow, both bills would have grown government permit requirements both referred to 9 HB1393 Hardaway establishing a regional management board, and required a duplicate 2018 permit process for additional agencies to approve well drilling.
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TENNESSEE POLITICS 2018: What the business community needs to know By: Charles Schneider Although it seems only a short time since our last elec- cluding Commissioner of Agriculture. As such, Tennessee does tion, the 2018 election is just around the corner. Speculation not have reliable down ballot data to chart the growth of parti- has mounted in the last year over who would run to succeed san leanings. Our down ballot races are often decided on who Governor Bill Haslam when his second term expires. Tennessee can most efficiently and effectively communicate their ideas to will also hold an election for U.S. Senate and the field there the voters. In the last decade, the Republican success can be is also not yet certain. Here is the rundown of some things to attributed to messages rejecting the more liberal Democrat Party watch. or Washington in general. For the first time, Republicans will have to carefully craft their messages to account for an incum- U.S. Senate: In the months before the Presidential election, bent President. Democrats may have an easier time, they may it was widely assumed that if Hillary Clinton won or if the choose to embrace some of President Trump’s policies while Democrats won the Senate, that U.S. Senator Bob Corker may lampooning others. run for Governor. Neither of those events occurred and Corker has yet to announce his intentions. For now, we expect Corker, How big of a Factor will Trump be? Overall, we believe the who is Chair of the Senate Foreign Relations committee, to run outcome of the 2018 election favors Republicans statewide. for re-election to a third term. However, the midterm elections for a new President historically Meanwhile, others have hinted that they have eyes on the favor the minority party. If Democrats in Tennessee are able to seat. The strongest rumor surrounds Andy Ogles, director of effectively organize, recruit quality candidates and raise money the TN branch of Americans for Prosperity (AFP). Ogles is to support their efforts, they may have the ability to surprise. licking his wounds from a disastrous defeat of AFP’s alterna- Of course, in the past six years, Democrats have shown little tive proposals during this session of the TN General Assembly. ability to achieve any of those goals. Ogles has led the grassroots organization for several years and may be able to harness some resources from those efforts. Governor’s Race – Who’s Who. However, similar candidates have not fared well in the last few (Democrats - alphabetical order) cycles. On the Democrat side, Nashville attorney and Iraq War Karl Dean* - former Mayor of Nashville. veteran, James Mackler announced he is seeking the Senate seat. He is an attorney, who is best known for He is the first for the Democrats to announce but probably not his work on economic redevelopment and the last. If by chance Corker does not seek re-election, there the recovery efforts following the Nashville are many others who would quickly enter the race. Timing is Flood in 2010. He has indicated he will critical in politics and Democrats are betting on a shift in the focus on education and jobs to create oppor- electoral mood, which seems unlikely in Tennessee. Karl Dean tunities for all Tennesseans. Governor’s Race: Since the rise of the Republican Party in Craig Fitzhugh – State Representative Tennessee in the 1970s, the Office of Governor has routinely from Ripley. He is an attorney and banker switched between parties. Many think that 2018 will be differ- who serves as Minority Leader in the St. ent with Tennessee maintaining a Republican Governor. The House. A rural Democrat who has sug- shifting of political lines in Tennessee over the last decade seem gested he would take a populist democratic to have cemented the population into a more conservative pos- message directly to the people across the ture that more closely aligns with Republican policy objectives, state. Several high profile Democratic and Tennessee was one of the most solid states in the nation for Craig Fitzhugh Party fundraisers have indicated they would President Donald Trump, with some counties in Tennessee top- support him. ping over 70% in support in 2016. Tennessee is unique from our fellow southern states. Our * has announced neighboring states routinely elect every constitutional office, in- ^ suspended his campaign
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(Republicans - alphabetical order)
Mae Beavers* – current State Senator from Bill Lee* – political newcomer from Mt. Juliet. She is a retired court reporter, Franklin. He is Chairman of Lee Company, who became known fighting against a state a home repair company founded by his income tax. Over the years, Beavers has grandfather, it is well known in Middle crusaded for a number of far right causes. In Tennessee. He is also active in a family cat- her announcement, she pledged to fight rad- tle operation in Williamson County. He is currently on a 95 county tour to introduce Mae Beavers ical Islam and repeal the IMPROVE Act. Bill Lee himself to the voters. Diane Black – current Congressman and former state legislator from Gallatin. She Mark Norris – current State Senator from is a nurse and is well known for her knowl- Collierville. He is an attorney who serves as edge of healthcare and tax policy. Current Senate Majority Leader, championing efforts Chair of the US House Budget Committee, to reduce, reallocate and reform government she recently sponsored the bill to reform spending. He has passed numerous tax cuts, reduced the size of government and Diane Black Obamacare. Mark Norris introduced innovative work based learning reforms (LEAP). Randy Boyd* – former Commissioner of ECD, former Chair of TN Higher It is worth noting that several of the potential candidates men- Education Commission. He is the founder tioned above currently hold coveted elected positions. Should any and Executive Chairman of Radio Systems of them choose to run for another office, it will produce a signifi- Corporation in Knoxville. He is currently cant realignment of Tennessee’s political landscape. Since it is not travelling the state speaking on education often that an open statewide race occurs in Tennessee, we expect the Randy Bond and economic development issues. 2018 Governor’s race will be a significant affair with spending and fundraising breaking records across the state which has a number of Tim Burchett – current Knox County may- major media markets. or and former state legislator. Known as a fiscal conservative, he is being promoted as a Tennessee State House and Senate conservative alternative by some of the grass Republicans hold overwhelming majorities in both Houses top organizations. in the Legislature. In the House they hold 73 of 99 seats and in the State Senate they hold 28 of 33 seats. The republicans have Tim Burchett a significant advantage in resources and have wisely invested in grassroots networks over the last decade. We don’t anticipate Mark Green^ – current State Senator from many seats to change in either chamber, short of major follies in Clarksville. He is a physician and a former specific races that could tilt the outcome. Army officer. He had suspended his campaign once President Trump nominated him to serve Changes in Legislative Leadership? as Secretary of the Army. However, Green re- Three of the potential candidates running for Governor cently withdrew from consideration and many hold top leadership positions in the General Assembly. Much Mark Green believe he will restart a campaign for higher depends on who decides to run, however expect several well-re- office. spected legislators to begin positioning themselves should a vacancy in leadership occur. If Harwell decides to run expect Beth Harwell – current Speaker of the a number of House members to vie for the Speakership. From House from Nashville. Former Chairman the Chamber perspective, the Leader positions are equally of the Republican Party, College Professor, important. The House and Senate leaders have a historically and she held a number of leadership roles played significant role in shaping major legislative efforts. No before leading the House. She has a broad matter how this plays out, the Tennessee Chamber will be there portfolio of successful legislation on educa- to educate and advocate for pro-growth business policies. Beth Harwell tion, families, welfare reform and criminal justice. She has a broad network that she can active should she choose to run. 13 Business Insider | Summer 2017 Women in Business May 9, 2017 – Hermitage Golf Course Speakers included Congressman Diane Black, Sister Schubert (Patricia Barnes) and Denise Rise, Director of the Tennessee Manufacturers Association.
ELEVATING THE BUSINESS VOTE Building a Pro-Business Counterbalance in the Era of Political Polarization By: Ted Boyatt
The tumultuous and unpredictable 2016 election season proved with the interests of American employers. However, the rise of to be a seismic political moment for the country. In its wake, a dis- these organized fringe groups presents new challenges for the affected electorate, consisting of all ideologies and political persua- business community, especially as their monetary and grassroots sions, has grown increasingly polarized and intensely distrustful of involvement in primary and general elections continues to grow in its partisan peers and conventional institutions alike. Capitalizing an attempt to intimidate policymakers and replace growth-friendly on the lingering electoral resentment and institutional void, fringe public servants with hardline obstructionists. groups claiming loose connections with the Tea Party and so-called Here in Tennessee, groups including the state affiliate for “Alt-Right” movements on the political right and the anti-Trump Americans for Prosperity and other organizations claiming the Tea “Resistance” movement on the left have emerged to further divide Party mantle have ramped up their electoral and grassroots activi- an already volatile political climate with inflammatory hyperbole ties in recent cycles. In addition to this year’s unsuccessful legisla- and imaginative revisionism that prioritizes score-settling and de- tive attempt to block the critical infrastructure improvements and structive nihilism over solution-building and constructive reform. business tax cuts contained in the IMPROVE Act, these extreme With the escalating intensity of political rhetoric over the last organizations have redoubled their electoral focus, particularly tar- decade, today’s predicament should hardly come as a surprise. In geting Republican primaries in a concerted effort to radicalize the fact, many in the business community from both major parties conservative base and purge elected officials deemed ideologically sympathize with the broad sentiments reflected in these move- impure from the ranks of the state’s supermajority party. Likewise, ments, especially after an eight-year Presidential term marked by traditional political opponents of the business community, such many regulatory, labor, and tax policies that often did not align as organized labor, environmental activists, and trial lawyers, have
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Tennessee Chamber of Commerce Affinity Programs
Enjoy savings for your organization or business with Tennessee Chamber of Commerce exclusive member discounts on office supplies, freight, payroll and HR services, and more. Tennessee Chamber members can expect significant savings when they use our Affinity Programs. We’ve contracted with the following fine companies to offer services at a discount to Tennessee Chamber members:
Find out more by going to http://tnchamber.org/emember-benefits-discounts/ shifted their attention to similarly concentrate on primary elec- campaign trail. With the 2018 cycle fast approaching amid tions, sometimes even allying with right-wing groups to jointly persistent speculation about a wave of potential retirements in attack pro-growth candidates and policies. In the 2016 state the state legislature and an open gubernatorial contest, business legislative election cycle alone, these new fringe groups spent leaders must act swiftly and collaboratively to defend growth a combined total of over $165,000 in organized PAC activity champions, recruit and bolster aligned candidates for open and potentially as much as $310,000 more in untraceable “dark seats, and hold the opposition accountable at the ballot box. To money” through state grassroots advocacy accounts. Combined that end, this new electoral imperative will not only require an with the more than $1.25 million in 2016 campaign spending intensified financial commitment of critical direct-giving and in- from unions, lawsuit advocates, and other common anti-business dependent expenditure dollars, but will also necessitate renewed groups, Tennessee’s employers and entrepreneurs face a rapidly grassroots partnerships with local chambers, member companies, evolving political landscape that is dragging even traditionally and economic development professionals to mobilize supportive reliable constituencies and legislative coalitions to the ideological constituencies and elevate the collective voice of business. As the extremes and, by extension, further away from pragmatic, eco- Tennessee Chamber looks to build a statewide electoral coun- nomic growth-driven public policy initiatives. terbalance, our team will be working alongside state partners If the business community is to remain politically compet- and local advocates to mount a coordinated response to these itive and ensure its concerns are heard, it cannot afford to sit hyper-partisan opposition groups and establish a lasting political on the sidelines during critical election seasons and leave these network to defend the role of business and industry in growing subversive new influences unchecked and unchallenged on the our state’s economy. 15 Business Insider | Summer 2017
CHAMBER BILL SPONSOR SYNOPSIS POSITION STATUS SUCCESS Water Quality Control Act. Requires the wildlife resources agency to refer cases involving potential water release violations to TDEC for investigation. SB0819 Southerland PASSED Requires the TDEC to consult with the department of agriculture when SUPPORT HB0764 Halford PC 0148 9 investigating on property used in agriculture.
Local Referendums for Energy Projects: As introduced, this bill was opposed by the Tennessee Chamber as it required a countywide referendum to build industrial projects. As amended, the Tennessee NEUTRAL SB1336 Bailey PASSED Chamber defers on the bill that now establishes a joint study committee to with HB1021 Sexton, C. PC0368 9 make recommendations on the need for wind turbine regulations. Sets a amendment one year moratorium for the construction of wind farms unless a county has adopted local regulations.
GOVERNMENT FUNDS / REGULATION Chemicals: This bill, opposed by the Tennessee Chamber and the American SB1049 Bowling Chemistry Council, would have prohibited the use of certain flame FAILED OPPOSE HB1029 Lynn retardants in residential upholstered furniture and children's products. referred to 9 2018 Protects Citizen Service on Regulatory and Licensing Boards: Creates a review process in Board actions to prevent an unreasonable "restraint of SUPPORT SB1217 Norris trade". Clarifies that rules and actions of the Board must be consistent with Chamber PASSED HB0326 Hawk with a clearly articulated state policy or law established by the general led PC 0230 9 assembly with respect to the regulatory board. amendment
Limits Regulation of Licenses: Enacts the "Freedom to Prosper" Act, limit SB0473 Roberts PASSED the circumstances under which local government entities may regulate SUPPORT HB0979 Calfee certain occupations. PC 0332 9
HEALTHCARE / INSURANCE MANDATES SB0210/ Green/ Health Coverage Mandate: Two insurance mandates that would have SB0367 Overbey required insurance plans in Tennessee to offer an additional and specific FAILED OPPOSE HB0883/ Holsclaw/ type of cancer treatment and mandated that insurance companies will be referred to 9 HB0523 Ramsey reimbursed for the additional treatment. 2018 Health Coverage Mandate: Business insurance mandate that would have SB0922 Ketron FAILED required insurance companies to offer all anti cancer medications at the OPPOSE HB1059 Lamberth same price, regardless of the actual cost. referred to 9 2018 Pharmacy Benefits: Prevents insurance plans from using certain cost SB0991 Green FAILED savings tools, such as low co-payments on generic prescription drugs, OPPOSE HB0960 Terry unless such changes are made during the open enrollment periods. referred to 9 2018 Pharmacy Benefits: Bill would have increased insurance costs by allowing SB0799 Dickerson pro-rated dispensing fees when a pharmacist partially fills a prescription in FAILED OPPOSE HB0139 Sexton, C. order to synchronize the refill dates of multiple medications. referred to 9 2018 JUDICIARY Constitutional Amendment: Proposes an amendment to provide for PASSED popular election of the attorney general and reporter for a regular term of SJR 0057 Beavers Senate six years. TN Chamber supports the current framework of our state OPPOSE FAILED 9 constitution that directs the attorney general be appointed by the state House supreme court. LABOR LAW / REGULATORY Employee Pay: Authorizes a private employer to pay their employees SB0332 Johnson monthly. Tennessee Chamber worked on this legislation to ensure that NEUTRAL PASSED HB0419 Wirgau private employers may still pay more frequently. PC 0362
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CHAMBER BILL SPONSOR SYNOPSIS POSITION STATUS SUCCESS Employee Benefits: In addition to existing pregnant employee SB1029 Yarbro accommodations and remedies, this legislation would have created an FAILED HB0834 Jones additional layer of requirements on private employers and added referred to unnecessary legal remedies against employers. 2018 Employee Scheduling: Supported by the Tennessee Chamber, this SB0262 Johnson legislation prohibits a local government from adopting or enforcing any PASSED SUPPORT HB0180 Lynn ordinance that regulates or imposes a requirement upon an employer PC 0107 9 pertaining to employee scheduling. Leave, Employees: This bill as proposed established six weeks of paid leave for adoption, pregnancy, childbirth, or nursing an infant. The legislation SB1141 Kyle FAILED also added a number of stiff legal penalties against employers to defend. OPPOSE referred to 9 HB1184 Powell Federal legislation has been proposed to provide paid leave from state 2018 unemployment insurance funds. Minimum Wage: Two versions were introduced for the "Tennessee SB1411/ Minimum Wage Act". One establishes a state minimum wage of $15/hr. on SB1122 Kyle FAILED July 1, 2017. The other establishes a minimum wage that increases OPPOSE referred to 9 HB0080/ Hardaway / annually on July 1, until it reaches $10.10 in 2019 or at least 0.5% higher 2018 HB1060 DeBerry than the federal minimum wage. Employee Pay Mandates: As proposed, this legislation known as the TN pay equality act creates a new legal cause of action for employers to SB1105/ defend against employee pay. The legislation also established in Tennessee SB1106 Kyle FAILED law a mandatory framework requiring an employer to prove differences in OPPOSE HB0477/ Clemmons referred to 9 pay are justified under a specified set of standards. The bill also established HB1246 2018 stiff legal penalties and fines against business.
Veteran Hiring Preferences. Aligns the state with federal law authorizing private employers to give a hiring preference to honorably discharged SB0209 Green PASSED veterans, spouses of a veteran with a service-connected disability, and SUPPORT HB0165 Pitts unremarried widows or widowers of a member of the military who died in PC 0009 9 the line of duty or as the result of a service-connected disability.
Wage Theft: In addition to existing state and federal law, this bill would have added another mandate on private employers establishing failure to SB1421 Harris FAILED pay an employee in full, shall be required pay any unpaid wages due, OPPOSE referred to 9 HB1329 Stewart including interest and pay an additional amount equal to two times the 2018 unpaid wages due and legal costs incurred. New Worker Protections: This legislation was amended to prohibit SB0124 Crowe FAILED employers from requiring arbitration agreements for employees who are OPPOSE HB0038 Reedy military service members. referred to 9 2018 Volunteer Firefighter Protections: In addition to existing state law this bill SB1317 Crowe would have established yet another prohibition against terminating FAILED OPPOSE HB0866 Holsclaw employment of a volunteer firefighter, who is absent or late, due to referred to 9 responding to a state of emergency. 2018 MISCELLANEOUS Government Programs: Enacts Property Assessed Clean Energy Act SB0794 Dickerson allowing the County Property Assessor to collect loan repayments from FAILED OPPOSE HB0464 Staples monies borrowed through the program, which focuses on home energy Summer Study 9 efficiency improvements. Energy Authorities: Based on feedback from Chamber members, the Tennessee Chamber worked to amend this legislation to exclude natural SB1087 Stephens NEUTRAL PASSED gas utilities. Revises the Municipal Energy Authority Act, allowing with HB1290 Sanderson PC 0446 9 municipal utilities to convert to energy authorities for electric, amendment telecommunications, water and wastewater services.
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CHAMBER BILL SPONSOR SYNOPSIS POSITION STATUS SUCCESS Notice to property owner: As amended, requires zoning officials to send a SB0453 Bell FAILED certified letter to property owners, when a third party seeks to rezone SUPPORT HB0557 Carter another's property. referred to _ 2018 TAX Business Flexibility for Franchise & Excise Taxes: Chamber priority SB1207 Norris legislation authorizing annualization payment method for franchise & PASSED SUPPORT HB0320 Hawk excise tax quarterly tax payments. The legislation saves Tennessee PC 0192 9 business $13 million annually.
Property Taxes: Legislation provides much needed tax relief for FEMA SB0114 Overbey PASSED certified victims of the Gatlinburg/Sevierville area "Two Chimneys Fire". SUPPORT HB0052 Carr PC 0011 9
Sales Tax: Allows a local government to raise the existing local option sales SB0415 Lundberg FAILED tax by 2/3 vote of local governing body, rather than by approval of the OPPOSE HB1101 Hill, T. votes by referendum withdrawn in 9 House Transportation Funding: Priority for the Tennessee Chamber included in our 2017 agenda. The IMPROVE ACT, make a number of important investments both in our transportation and infrastructure programs and provides important tax changes for manufacturers known as the single SB1221 Norris sales factor. Overall the bill was a major tax decrease to facilitate and SUPPORT PASSED 9 HB0534 Doss enhance Tennessee's economic development. In addition the bill reduces PC0181 taxes on food, dividend income, property taxes on disabled veterans and elderly in poverty.
Sales Tax Transportation Funding Plan: Opposed by the Tennessee Chamber and other business groups. The Hawk Plan, was an alternative SB0963 Roberts proposal from the IMPROVE act that would have diverted sales tax from FAILED OPPOSE HB1012 Hawk the general fund to pay for road improvements. The legislation also referred to 9 eliminated the much needed single sales factor for manufacturers needed 2018 for our economic growth and development. TRANSPORTATION Autonomous Vehicles: Automated driving systems (ADS) in Tennessee. NEUTRAL PASSED SB0151 Lundberg Establishes registration, restraint, operational, and accident requirements with HB0381 Lamberth for autonomous vehicles to operate on public roads and highways in sent to 9 amendment Tennessee. Governor Driver's Licenses: Required illegal alien marking on drivers license. The Chamber worked to ensure the bill did not send a negative message to SB0272 Beavers foreign owned companies with high level employees here to amend the NEUTRAL FAILED with HB0222 Ragan bill, requiring the department of safety to print "VISA" on driver licenses referred to amendment issued for a temporary period to persons who are not United States 2018 citizens and not lawful permanent residents of the United States.
Toll Roads: Tennessee Chamber members have noted concerns with toll- SB0299 Bowling roads preferring increases in fuel taxes to fund transportation FAILED HB0187 Rogers improvements. This legislation would have authorized the Transportation referred to Commissioner to establish toll ways that include existing HOV lanes. 2018
Trucking: Authorizes the utilization of trucking platoons requiring advance SB0676 Green PASSED notice given to transportation and safety departments. Truck platooning SUPPORT HB0751 Marsh has the potential to save business transportation costs. PC 0171 9
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CHAMBER BILL SPONSOR SYNOPSIS POSITION STATUS SUCCESS WORKERS COMPENSATION Workers' Compensation Judicial Appeal: Initiated by the Tennessee Supreme Court, this legislation would have removed a long-standing provision in TN workers' comp law authorizing a direct appeal to the SB0261 Johnson FAILED supreme court. The Tennessee Chamber was concerned there would be OPPOSE HB0939 Carter no backup to appeal cases, forcing business to resort solely to the referred to 9 legislature to resolve interpretations. Last year there were only 8 cases 2018 that were appealed to the TN Supreme Court.
Worker's Compensation Utilization review: As introduced, this legislation was opposed by the Chamber and later amended by the sponsors to limit the provisions of the bill. As amended this legislation maintains utilization NEUTRAL SB0297 Briggs PASSED review (authorization) for invasive procedures but allows the treating with HB0666 Hill, M. PC 0380 9 physician to order diagnostic procedures within medical guidelines within amendment 30 days of the accident. It also increases the death benefit for funeral expenses to $10,000.
Worker's Compensation: This is a technical corrections bill from the Worker's Compensation Bureau that was reviewed and approved by the SB1214 Norris Tennessee Chamber's human resources committee. It allows certain PASSED NEUTRAL HB0325 Hawk injured workers to access additional vocational services for returning to PC 0334 9 the workforce. It also allows certain employers to elect work comp coverage by written notification of a partnership or proprietorship. Workers Compensation, Rights of Recovery: A number of Chamber members noted concern with this legislation that modified the assignment SB1237 Norris of fault in workers' compensation cases impacting subrogation. This FAILED OPPOSE HB0451 Eldridge legislation proposed to allow a court to assign a percentage of fault to an referred to 9 employer in the circumstance that an injured employee also caused harm 2018 to a third party. Retaliatory Taxes: The original bill would have increased the cost of Workers Compensation Insurance by automatically added taxes or fees on SUPPORT SB1189 Norris insurance companies incorporated outside of Tennessee. The Chamber PASSED with HB0301 Hawk worked for an amendment to keep claims of unequal taxation on PC 0423 9 insurance that will be heard in Davidson County Chancery Court instead of amendment an automatic increase.
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SPECIAL UPDATE: Manufacturing in Tennessee Tennessee Chamber Puts Deeper Focus on Manufacturing By: Bradley Jackson to help manufacturing in the Volunteer State. Since our inception in 1912, the Tennessee Chamber is To maintain coordination, the Tennessee Manufacturers rooted in manufacturing. We are the only statewide orga- Association is part of the Tennessee Chamber. Nothing is nization that advocates and coordinates with the National changing for us as we are focusing on providing more recogni- Association of Manufacturers and the American Chemistry tion for our efforts in the manufacturing arena and dedicating Council. Manufacturing drives our policies and our focus staff. Having both as one organization, saves you resources as we approach all issues with the belief that if it is good for and allows us to coordinate public policy advocacy. The manufacturing, it is good for all employers. Chamber Board of Directors has committed to fund these The Tennessee Chamber has recently doubled down on new operations and will look to sustain our manufacturing this commitment by hiring staff that focuses on manufactur- permanently with new revenue from members and programs ing and our work. Denise Rice, who has a broad range of and services we will offer. We look forward to telling you experience in manufacturing, is heading up our efforts and more and please don’t hesitate to contact us. Check out the will do an excellent job under the umbrella and resources of back cover for a TN Manufacturers Association (TMA) break- the Tennessee Chamber as we identify policies and resources fast near you soon.
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Innovative Products, Competitive Wages and Economic Growth By: Denise Rice Over 5,000 manufactur- ing companies in the state of skilled workers. TMA promotes education and work- Tennessee make a significant force development of both pipeline and incumbent impact to the economic well-be- workers. ing of the Volunteer State. Our organization advances the awareness of manu- Manufacturing provides compet- facturing as essential to the local economy and provides itive wages, high-value benefits our members with programming designed to ensure best and innovative products. practices at unquestionable value. Since 1912, the Tennessee Manufacturers Association TMA also provides networking opportunities to help has been dedicated to promoting the manufacturing in- our members grow successful businesses. We strength- dustry. TMA advocates for a manufacturing-friendly en- en the ties of small, medium and large manufacturers vironment in which industry can maximize productivity throughout the and profitability state with person- and compete al contact. TMA globally in an offers opportuni- ever-changing ties to utilize our world. TMA and collective resourc- the Tennessee es and talents Chamber of and facilitate our Commerce & growth. Industry have a I am pleased professional staff to serve as dedicated to leg- Director of islative and regu- the Tennessee latory affairs. Manufacturers As the state Association. affiliate of the National Association of Manufacturers Please join me in welcoming Becky White, Plant (NAM) exclusively dedicated to manufacturers and their Manager of LyondellBasell as Chair and Rob Gagliano, allies, TMA represents Tennessee manufacturers at the Site Manager at BASF as Vice Chair of the TMA federal level. This affiliation provides our members Advisory Council. with an early-warning system and timely information on I invite you to become more involved in the emerging federal legislation and regulations to rally the Tennessee Manufacturers Association, where you will business community to effectively communicate business have unique opportunities for networking, collaboration views to Congress and the executive branch. and shaping the future of manufacturing. For more than Of the more than 330,000 manufacturing employ- 100 years, we have raised awareness of the strength and ees in the State of Tennessee, over 75,000 will retire by contributions of the manufacturing sector of Tennessee 2025, widening the already existing STEM skill gap. and promoted the advancement of manufacturing as es- Our future relies on the ability to attract and retain sential for a healthy and vibrant economy.
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Becky White, Plant Manager of Lyondell Basell The following is excerpted from a March 1 op-ed that appeared in RealClearMarkets: This is an exciting time to be involved in manufacturing in the state of Tennessee. We are poised at a moment in time when the po- tential for opportunity ahead of us is tremendous. America Has a Trump On the federal level, we have a new President who is promising to Card: Manufacturing do all he can to not just preserve, but to significantly grow manufac- turing in America. The extent of his ability to return jobs to America By: Jay Timmons and David Farr and to grow our manufacturing base remains to be seen, but the opti- mism is contagious. Manufacturing is a signature part of the Why is growing manufacturing important? It is a fact that for the Trump presidential brand and will define much of average worker, a job in manufacturing will pay approximately 20% his success. But is his gamble on manufacturing more than a job in the service sector. Jobs in manufacturing typically worth it? Skeptics insist that manufacturing is provide good benefits, often going beyond medical and dental insur- in irreversible decline. That’s not what we see ance to include life insurance, savings plans, pension plans, and other each year when the National Association of benefits. And manufacturing employs a greater number of non-col- Manufacturers travels the country on our State of lege educated workers than any other sector, making a good job ac- Manufacturing Tour. We are alive and prospering. cessible to those who don’t have access to post-secondary education. To the contrary, the manufacturing story is Manufacturing is no longer ‘your grandfather’s job’ – dark, dirty and one of advancement and transformation. From dangerous. It is instead clean, safe, and technologically advanced. self-driving cars to 3-D printing, the future is At the state level, manufacturing in Tennessee has evolved to being made right here in America. become high tech – manufacturing workers are increasingly working Our country is benefitting from its place on the machines and robots that do the work, and not doing the la- as the global leader in innovation. Every dollar bor themselves. Many high-tech industries are represented among invested in U.S. manufacturing adds another Tennessee manufacturers – those in automotive, medical devices, aero- $1.81 to the economy. And manufacturing space, and chemicals to name a few. These growing industries provide supports jobs for 18 million American men and highly desirable jobs that can become rewarding and lucrative careers. women, with more jobs being created every day. The Tennessee Manufacturers Association (TMA) has been around We’re not just talking about assembly lines, for 105 years, dedicated to supporting manufacturers in the state, and either. Today there are engineers turning the working to protect their interests. As the only Tennessee affiliate of unimaginable into reality, developers writing the National Association of Manufacturers (NAM), TMA is uniquely the code undergirding the Industrial Internet positioned to work on behalf of manufacturers at both the state and of Things and technicians keeping the precision federal levels. robotics running. There are scientists discovering The future of manufacturing in Tennessee is exciting because the chemical compounds that become lifesaving Tennessee Manufacturers Association is beginning a new era. TMA is drugs, and even brew masters perfecting their ramping up to provide valuable support and services to manufactur- trade and earning America a reputation for some ers of all sizes in our state. TMA will connect small to medium-sized of the world’s best craft beer. manufacturers with those that can provide much needed expertise and Perhaps the greatest challenge facing modern services. For the larger manufacturers in our state, TMA and TCCI manufacturing is filling the jobs we are creating. will represent their interests in public policy and proposed legisla- Within 10 years, manufacturing will have more tion. TMA will build a network of manufacturers that will facilitate than 2 million positions left open because there best-practice sharing, assist in workforce development, and provide will not be enough employees with the right skills well-deserved recognition to accomplishments of manufacturers in to fill them. Tennessee. TCCI is demonstrating their commitment to manufactur- This is deeply troubling because we hear so ing in Tennessee by dedicating an Executive Director to support man- often about the other side of the manufacturing ufacturing and TMA. story—changing times have caused some facilities It’s a good time to be in manufacturing in Tennessee…..good to close. In the most recent election, we saw—like never before—the frustration of people who feel things are coming.
22 Business Insider | Summer 2017
stuck in communities where new opportunities haven’t yet matched unleash manufacturing’s promise to bring hope and dignity back to those losses. struggling communities, we also must get the policies coming out of We must find ways to bring more of these Americans—the ones Washington, D.C., on the right track. wondering if they still have a place in the modern economy—into President Trump is correct that other countries are beating us the world of modern manufacturing. with smarter, fairer tax codes, investments in modern infrastructure It’s not just about “bringing jobs back” from the past. It’s about and a more sensible, navigable regulatory environment. The world connecting more people with jobs of the future. We must rethink can’t match the productivity and innovation of the U.S. workforce, our country’s outdated approach to education and training, so but without meaningful reform, working families will pay the price we prepare Americans for the jobs that will be in demand in the for our policy mistakes. That’s not fair and totally wrong. coming years and decades—and “future-proof” their careers. America must become an even better and more competitive Manufacturers have already begun on our own shop floors, place to do business. Manufacturers have put forth the plan to do it helping employees “upskill” with new talents so they can move up in our “Competing to Win” policy agenda. We are hearing many of within our companies. Now we need educators, business leaders the right words of support from policymakers. So now it’s time to and policymakers to join us in these efforts, so we can invite young make progress and to move past divisive politics. people and job changers everywhere to take their pick of careers in U.S. manufacturing. David Farr is Chairman & CEO of Emerson and Chair of the Workforce development is just the beginning, however. To fully Board of the National Association of Manufacturers, and Jay Timmons is President & CEO of the National Association of Manufacturers.
23 Business Insider | Summer 2017
2017 Annual Meeting and Legislative Reception
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Thank you for making this year’s Annual Meeting and Legislative Reception our most-highly attended event yet! Each year the Tennessee Chamber hosts our annual meeting in Nashville during the legislative session that allows networking with business leaders and our elected officials. To provide added benefit to our members and to show the significant presence of Tennessee’s business community, this past February we partnered with TCCE (Tennessee Chamber of Commerce Executives) and TEDC (Tennessee Economic Development Council) on our Annual meeting and legislative day on the hill. This gathering brought in over 400 business leaders from across Tennessee, making this the largest day on the hill when compared to any other groups hosting legislative receptions! 25 Business Insider | Summer 2017
TN Chamber: LIFT Partnership Enhances Workforce in Crucial Areas across Tennessee Working with metals is an ancient trade dating back posite materials. IACMI, the Composites Institute, has an thousands of years. However, innovating metal technol- automotive scale-up team at the Detroit facility and joined ogies and processes in the 21st century is the modern LIFT in the nearly $50 million investment. challenge posed to LIFT – Lightweight Innovations For “One of the missions of the institute is to have an im- Tomorrow. pact, not just on technology, but also on the community, LIFT is a Detroit-based public-private partnership and this investment will do just that,” said LIFT Executive comprised of member companies spanning the full supply Director Lawrence E. Brown. “From an R&D perspective, chain, from primary metal producers to equipment man- our research will impact sectors from automotive to aero- ufacturers and OEM’s. Our members are committed to space, defense, and shipbuilding. We will also be able to the development and deployment of advanced lightweight teach the next generation of manufacturers in a new ‘learn- metal manufacturing technologies and implementing ed- ing lab.’ ” ucation and training initiatives to better prepare today’s In its research, LIFT focuses on six core areas of metal workers and the workforce of tomorrow. processing technology: melt processing, powder process- A founding member of Manufacturing USA, the feder- ing, agile processing, coatings, joining and assembly, and al government’s national network of manufacturing inno- thermo-mechanical processing. vators, LIFT’s goal is to make the United States the leader To meet the needs of those focus areas, some of the in advanced lightweight metals manufacturing. equipment at the LIFT facility includes hydroforming To achieve that goal, LIFT is transforming its Detroit and extrusion presses, a flexible-robot joining cell, and the home, a 100,000 square-foot former plastic injection mold- country’s largest linear friction welder. On the compos- ing facility, into a state-of-the-art applied research and de- ites side, IACMI is investing in compression and injection velopment facility focused on lightweight metals and com- molding presses, prepreg equipment, induction processing,
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Become a LIFT Member today! Visit us at ǁǁǁ͘ůŝŌ͘ƚĞĐŚŶŽůŽŐLJ. Follow us at @NewsFromLIFT >/&d—ϭϰϬϬZŽƐĂWĂƌŬƐůǀĚ͘—ĞƚƌŽŝƚ͕D/—ϰϴϮϭϲ—;ϯϭϯͿϯϬϵ-ϵϬϬϯ
26 Business Insider | Summer 2017
and an RTM/Liquid Compression Molding machine. LIFT’s technical approach is based on systems en- gineering principles which enable substantial compres- sion of the time required to go from idea to product. Specifically, it relies on integration of the product value chain from primary manufacturing processes with other elements of the supply chain supporting design and cus- tomization. Each project in LIFT’s portfolio falls within a tech- nology roadmap for each pillar of technology, so the academic, research and industry partners involved are all year, the MakerMinded platform has rolled out in moving in the same direction to find lightweighting solu- Kentucky and is expected to move into Ohio for the 2017- tions. 18 academic year. “This is the first time we are getting all the different Tennessee was also extremely supportive of the launch industries together, from aerospace to land-based compa- of Operation Next, a new model for equipping separating nies and the military, and finding the common problems military personnel with the skills and credentials needed in search of common solutions,” said Alan Taub, LIFT for the most in-demand advanced manufacturing civilian chief technology officer. careers in the country. This new national model provides To date, LIFT has authorized dozens of projects within high level technical training to separating soldiers while several larger programs to enable lightweighting solutions they are still on active duty, moving them from deploy- across manufacturing, from using design techniques to ment to career in the shortest time possible and connecting lightweight and iron cast automotive parts to optimizing them to some of the more than half-million open jobs in an electronic stability and antilock brake system to help precision machining and industrial technology. reduce rollovers of military Humvees. Operation Next brings market leaders in manufac- Going forward, as the research and development facil- turing training together in a full-service online learning ity is built out, LIFT will work with individual companies platform that soldiers can access before leaving the service, on directed projects, assemble teams to bid on additional accelerating their transition into civilian manufacturing government contracts, and provide equipment and staff ex- careers. The hybrid training program combines self-direct- pertise to assist companies of all sizes. ed virtual learning with hands-on lab work and gives sol- On the education and workforce development side, diers foundational knowledge, practical real-world skills, LIFT’s goal is to develop an educated and skilled work- and national industry credentials with immediate value in force that can confidently use new lightweight technologies the labor market. and processes. “We recognize the strength and the aptitude of the Since its inception, LIFT has invested in dozens of men and women who serve our country and believe there initiatives ranging from work-based learning opportunities is no better way to honor them than to provide them with for high school students to providing training for return- a fast-track path to great careers in advanced manufactur- ing veterans. ing,” said Emily DeRocco, education and workforce devel- The goal of each investment is that it be replicable and opment director, LIFT. scalable going forward. By innovating in technology and focusing on edu- An example of that replicability and scalability came cation and workforce development, LIFT is working to from an investment originally made in Tennessee with change the face of advanced manufacturing in the United MakerMinded – a web-based platform which encourages States and creating a more sustainable workforce for to- students and schools to participate in a variety of STEM morrow’s generation of industrial innovators. activities. For each activity a student or class completes, they are awarded a certain number of points. A scoreboard For more information on LIFT and to become a member, is continually updated so schools can see how they are do- visit www.lift.technology and follow LIFT on Twitter at @ ing against their neighboring schools and those across the NewsFromLIFT. member, visit www.lift.technology and state. follow LIFT on Twitter at @NewsFromLIFT. Since its launch in Tennessee for the 2016-17 school
27 Business Insider | Summer 2017
Member Spotlight: Highway Transport By: Brian Reid, Highway Transport Logistics June 2017, almost midway through a new year and new start, but the same old problems face the transportation industry: not enough qualified drivers. According the U.S. Department of Labor, unemployment ranged from 4.6 to 5.0 percent in 2016. In Tennessee unemployment ranged from 5.2 to 4.8 the length of 2 weeks. We listened to our drivers and percent again in 2016. The trucking industry must find heard this was not a sustainable lifestyle for them. a way to attract, train and retain its most important Highway Transport marketed and changed our business commodity, the professional truck driver. Highway model from basically 80 percent OTR business to Transport, a 68-year-old liquid bulk carrier based in ‘regional’, where the length of haul is 250 miles or Knoxville, Tennessee, transporting hazardous and non- less which allows our drivers to get home almost every hazardous bulk liquid chemicals across our nation and night. Canada, continuously struggles to staff our equipment. Highway Transport also now has predominantly Despite average salaries in the $50 to 70-thousand- automatic transmissions again in an effort to attract dollar range with benefits, many drivers earning well drivers with the comfort and ease of not needing to over $70,000, we are unable to fill these positions. manually shift the truck. Even though we have made One issue that has always hurt our industry was many changes, the job itself is hard. Long hours, the over-the-road (OTR) business where drivers were traffic, weather, innumerable regulations and physical out weeks at a time. Normal business would go from requirements are a few of the reasons driving a truck Knoxville to Philadelphia, to Cincinnati to Chicago to is a hard job. And now to top it all off there is talk of Texas, then returning home to Knoxville perhaps over driverless cars and eventually trucks. Though Highway Transport is quick to adapt to new technology, the thought of an 80,000-pound truck full of gasoline going down the road without a driver bothers a lot of people. One thing Highway Transport has always stood for above all else is safety, professional drivers and the epitome of this singular focus. We believe that nothing we do is worth anyone getting hurt. All our families are on the roadways every day. So, we in the trucking industry ask ourselves… Where will we find our drivers of tomorrow? Governor Bill Haslam and the initiative toward Tennessee Promise scholarships is such a wonderful opportunity. But let’s face it, many young people simply do not want to invest the time to attend college. There is a high number of Stop labor lawsuits, people who wouldn’t attend college if it was absolutely 100% free. Trucking is one of those jobs that can avoid attorney fees, provide a fantastic return on a very small investment in education. Changes are coming in many ways but the and comply with state one challenge that remains is making the professional truck driver position one that is held in high esteem, and federal HR laws. as it was in the past. At Highway Transport, we know that our drivers are our most valuable asset and we do everything possible to help them be successful in their Tennessee Chamber of Commerce & Industry Members save careers and lives. 20%. Go to hrsimple.com/TN and use coupon code TNCmag17 at checkout or call (866) 439-2227.
28 Business Insider | Summer 2017
ENVIRONMENTAL POLICY UPDATE: Tennessee Department of Environment and Conservation staying active on a number of fronts Tennessee Chamber weighs in on Water, Air and Solid Waste Proposals By: Janet Evans & Charles Schneider The Tennessee Chamber has been actively at work for our Solid and Hazardous Waste Subcommittee member companies on a number of fronts in the environmental TCCI is working with the Tennessee Division of Solid regulatory area. Our goal is simple: We want Chamber members Waste Management (TDSWM) as they consider changes in the to have input into legislation, rules and regulations that impact solid waste “special waste” process. Comments were submitted them. We strive to ensure that we strike an appropriate balance to on a very draft proposal in January. TDSWM is currently in maintain both economic growth and sound environmental policy, the process of major revisions to the proposal based on stake- and we are proud of our work and our relationship with TDEC. holder comments. The Tennessee Department of Environment and Conservation TCCI met with the Deputy Director of TDSWM to has kept us busy in the Water, Air and Solid and Hazardous Waste discuss the incorporation into Tennessee Rule of new federal areas. Legislatively it was also an active year for bills dealing with Hazardous Waste Generator Improvement rules. TCCI ex- and impacting industry on environmental issues. I encourage you pressed concerns with several inconsistencies in these rules that to review our bill chart in the previous sections to see the out- make compliance with onsite waste management more difficult comes on all of those bills. If you have any questions about the to achieve. In addition, TCCI updated TDSWM on the feder- below items, please don’t hesitate to contact us Chamber. al law suit associated with this rulemaking and urged TDSWM to stay informed on the negotiations as it will likely result in a Water Subcommittee revision to those rules at the federal level. TCCI is in the pro- The Tennessee Division of Water Resources (TDWR) pub- cess of developing a list of issues and concerns to be shared with lished a proposed Antidegradation Guidance Document which TDSWM pending subcommittee approval. In addition, the is- goes beyond the requirements of current Tennessee regulations sue of new regulations on surface impoundments was discussed and is inconsistent with EPA guidance. The Tennessee Chamber based on issues arising from TVA’s experience in their efforts to of Commerce & Industry (TCCI) met with TDWR to review close coal ash slurry impoundments. At this time, there are no our concerns in February. The initial deadline to file comments new rules in development; however, TDSWM will keep TCCI was March 15 but was extended to March 31. Eight pages of informed if such rules are determined to be necessary. formal written comments were submitted on behalf of TCCI members on March 31. Upcoming Training/Conference Opportunities Industrial Air Permit and Compliance Training Workshops Air Subcommittee will be held on July 13 in Nashville and on August 11 in The Tennessee Division of Air Pollution Control (TDAPC) Knoxville. More information & Register Online www.tncham- is working with the Tennessee Chamber regarding new Air ber.org Emission Inventory regulations. TCCI has met with TDAPC to discuss the new deadlines for reporting and fee payment. On March 1, 2017, TDAPC published the proposed regulations SAVE THE DATE for public comment. TCCI members have reviewed these rules and will support the rulemaking. Concerns expressed in a prior TCCI/TDAPC meeting on the topic have been addressed in the proposed rules. October 23-24 TCCI will also be working with TDAPC as they develop th the new electronic air emission inventory reporting process. 35 Annual Specifically, TCCI is working with the Division on the certifica- Environment & tion wording and to confirm that a Responsible Official does not have to complete the electronic certification – rather an individual Energy Conference responsible for Environmental Management at a facility. TDAPC presented a prototype of the new system to TCCI members in Montgomery Bell State Park • Burns, TN February.
29 THE UNIVERSITY OF HIGHER EDUCATION, REINVENTED.
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30 *The Middle Tennessee Reconnect Employer Survey, conducted by the Middle Tennessee Reconnect Community and the Nashville Area Chamber of Commerce Business Insider | Summer 2017
Tennessee Chamber Joins Legislature to Renew Commitment to Workforce Needs Post-Secondary Preparation and Attainment a Key Focus By: Ted Boyatt While many of the headlines on education legislation dents pursuing industry certifications and will help heighten emerging from the Tennessee Capitol this year revolved around student participation in both secondary and post-secondary hot-button issues like school vouchers and charter schools, per- settings. Likewise, legislation sponsored by House Education haps the more central, if less contentious, theme of the 2017 leg- Administration and Planning Committee Chairman Harry islative session was a renewed focus on workforce development Brooks promises to expand the availability of EPSO courses by through post-secondary preparation and attainment. Although requiring public high schools to offer at least four such courses to typically structured to suit the needs of graduating high school their students. Both bills were adopted by wide margins in each students, this year, lawmakers saw an influx of legislation seeking legislative chamber. to expand access to post-secondary credit opportunities through Finally, in addition to the groundbreaking progress law- non-traditional means, targeting students and adults both before makers made this year in expanding post-secondary access and and after a traditional high school graduation timeline. attainment, House and Senate members also recognized the Specifically, and most notably, Gov. Bill Haslam announced importance of quality academic preparation for college and in his State of the State address this year a historic expansion of post-secondary in grades K-12 by preserving key accountability the Tennessee Reconnect program, making Tennessee the first aspects for schools, students, and educators. In keeping with state in the nation to offer all Tennessee adult residents without new federal requirements set forth under the Every Student a degree tuition-free access to community college. In order Succeeds Act (ESSA), the Tennessee Department of Education to meet the objectives of his ambitious Drive to 55 initiative, joined with legislators to further codify elements of its Tennessee which aims to equip 55% of Tennesseans with some form of Succeeds state strategic plan by strengthening student growth postsecondary degree or credential by 2025, Tennessee needs to and achievement-based performance goals for schools and add roughly 871,000 more degree or certificate-holders to its local districts, including performance-based thresholds for un- workforce over the next eight years. By tapping into nontradi- derperforming priority school designation and intervention. tional adult student populations beyond graduating high school Policymakers also upheld critical classroom accountability mea- seniors, Gov. Haslam and legislators acted decisively to pave a sures by ensuring assessment-driven student achievement and mathematical pathway towards achieving Drive to 55’s goals. growth data remain central components of Tennessee’s model Similarly, on the opposite end of the post-secondary ac- teacher evaluation system and defended against a number of cess pipeline, legislators also adopted a number of proposals to proposals that would have served to weaken or undermine accu- expand early post-secondary opportunities (EPSOs) for high rate and comprehensive student data inputs into the evaluation school students to earn credit towards a college degree or indus- process. While these proposals may seem unrelated in the short try certification while still enrolled in a public secondary school. term to students’ workforce preparedness after graduation, the A growing body of research suggests that students who take ad- accountability safeguards they provide in earlier grades help en- vantage of EPSOs in high school, such as dual credit, Advanced sure a continuously rigorous academic experience that adequately Placement, and industry certification courses, are significantly equips students with the foundational skills for long-term success more likely to enroll and persist in a post-secondary pursuit, in their college or other post-secondary endeavors. leading to higher rates of degree and certification attainment. The Tennessee Chamber was proud to stand alongside leg- The 2017 legislative session saw two such key pieces of legis- islative and administrative leaders this year to help bolster these lation aimed at expanding and strengthening EPSO offerings workforce-critical policy measures in the General Assembly and career and technical education experiences. The first, a key and thwart proposals that threatened to restrict or roll-back Chamber-supported bill championed by Senate Majority Leader the proven reforms our state has made to enhance educational Mark Norris and Rep. Ron Gant, authorizes the Tennessee accountability and improve student outcomes. As state and lo- Higher Education Commission and Tennessee Board of Regents cal education leaders look to the year ahead, the Chamber will to develop credit-bearing curricula for work-based learning ex- continue developing, with the help of our business leaders and periences, such as apprenticeships, clinicals, and job-shadowings. local partners, the next evolution of policies designed to bridge When combined with traditional coursework, these work-based the gap between schools and employers and bring the classroom learning opportunities serve as the central component for stu- directly to the doorstep of industry.
31 Business Insider | Summer 2017
Tennessee Chamber Successfully of Appeals found persuasive the Tennessee Chamber’s position in favor of preserving the usual and customary Advocates for Consistency in meaning that our courts have consistently attributed to Contract Interpretation indemnification clauses: The ability of lawyers and litigants to better predict by Tennessee Courts and assess outcomes derives in large part from predict- By: Lynda M. Hill, Attorney at Law able judicial interpretation and enforcement of unam- biguous contracts. In fact, it is critical to the success of Frost Brown Todd LLC Tennessee businesses. Precipitous changes in long-stand- In 2015, the Tennessee Supreme Court ing rules of contract interpretation, specifically the parol created a specialized business court evidence rule, would have a detrimental impact on all in Davidson County to serve as “an contracting parties by creating uncertainty and increas- effective tool for business retention, ing the likelihood of litigation. economic development, and enhanced effectiveness of The Chamber is pleased that it could play a persuasive 1 the judicial system.” To achieve these objectives, the role in this case as part of its continuing effort to protect Supreme Court tasked the business court with develop- Tennessee business interests. The Chamber’s amicus cur- ing “a body of rulings from which lawyers and litigants iae brief was prepared by Lynda Hill with Frost Brown can better predict and assess outcomes in business cas- Todd LLC. es.”2 Yet, the court recently issued a ruling that deviated from these objectives and the Tennessee Chamber par- ticipated in the appeal as an amicus curiae to advocate in favor of Tennessee business interests.3 In a breach of contract action between two compa- nies, the court ruled that a contractual indemnification provision, which included recovery of attorneys’ fees, applied to disputes between the contracting parties. Despite finding the contract unambiguous, the court reached this conclusion, in large part, upon consider- ation of witness testimony that the parties intended the provision to apply to disputes between the parties (“in- tra-party claims”). The Court of Appeals reversed the court’s ruling Laying the Foundation for Success because it deviated from Tennessee’s long-standing rules of contract construction when it considered witness tes- Project Lead The Way provides a transformative learning timony to ascertain the parties’ intentions regarding the experience for K-12 students and teachers across the U.S. – and right here in Tennessee. Through pathways in application of the unambiguous indemnity provision. computer science, engineering and biomedical science, we’re Additionally, the Court of Appeals confirmed that in- empowering students with the knowledge and skills they need demnification provisions apply only to third-party claims to thrive in an evolving world. that may be leveled against one of the parties, but does Join us and help prepare your future workforce and the next not apply to intra-party claims. In so ruling, the Court generation of innovators, creators and problem-solvers.
1 Order Establishing the Davidson County Business Court Pilot Learn more at PLTW.org Project, at 1, No. ADM2015-00467, (Tenn., March 16, 2015). 2 Id. at 2 3 Individual Healthcare Specialists, Inc. v BlueCross BlueShield of Tennessee, Inc., Case No. M2015-02524-COA-R3-CV. The original filing of this action preceded the creation of the business court; however, it was tried in the same Davidson County Chancery Court division.
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IMPROVE ACT Signed by Governor Continued from page 3 the current 17¢ per gallon undyed diesel tax will increase to 21¢ effective July 1, 2017, 24¢ effective July 1, 2018 and 27¢ July 1, 2019. An existing 1.4¢ per gallon license tax and fee will continue to be added to both gas and diesel taxes. See Notice #17-18 just published by the Tennessee Department of Revenue as to dyed diesel fuel. Tax on certain alternative fuels would also increase over three years. Currently at 14¢ a gallon the liquefied gas tax would increase to 17¢ per gallon effective July 1, 2017, 19¢ per gallon effective July 1, 2018, and 22¢ per gallon effective July 1, 2019. Compressed natural gas currently at 13¢ per gallon would increase to 16¢ effective July 1, 2017, 18¢ effective July 1, 2018 and 21¢ effective July 1, 2019. Other fees and taxes are also imposed or increased to assist with this funding, such as a $100 registration and renewal fee with respect to electric vehicles. The Legislature expressed its intent that these 2017 increases shall be used for the above-referenced transportation and related projects. B. Local Option Transit Surcharge. The local surcharge provisions within the Act were the subject of intense deliberations and discussions among interested parties prior to the Act’s approval by the Legislature. As enacted, several counties and cities are authorized under the Act to adopt their own local surcharge for State Rep. Susan Lynn has used this diagram to inform purposes of funding a local “transit improvement constituents about the IMPROVE Act. program” -- provided that the surcharge is approved by a majority of the number of registered voters of roads or other non-mass transit system transportation the local government voting in an election on the infrastructure. surcharge question. Further, the term “surcharge” means a tax, or combination of Those local governments to which these provisions apply taxes, levied by a local government for said funding purposes; include: (i) any county in Tennessee (including any county however, any such surcharge is limited to the following local having a metropolitan or consolidated form of government) privilege taxes: with a population in excess of 112,000 according to the (i) Local option sales and use tax (enacted 2010 Federal census, and (ii) any city in this State having a per State law), population in excess of 165,000 according to such census. (ii) Business tax (enacted per State law), The applicable counties would thus include, among several others, Davidson, Hamilton, Knox, Rutherford and Shelby; (iii) Motor vehicle tax (enacted per State law and the cities would include Chattanooga, Knoxville, or by applicable private act), Memphis and Nashville. (iv) Local rental car tax (enacted per State A local “transit improvement program” consists of specified law), public transit system projects and services, with the term (v) Tourist accommodation tax (enacted public transit system including any mass transit system per State law, or hotel occupancy tax per intended for shared passenger transport services to the general State law, or by applicable private act), public, together with any building, structure, vehicles, etc. and needed to operate the transportation facility or provide Residential development tax (per the County connectivity for the facility to any interstates, highways, (vi) Powers Relief Act per State law).
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In essence, if approved through the election process remedies applicable to the underlying local tax with referenced above, those authorized local governments respect to which the surcharge is imposed. Further, can impose a surcharge coexistent with any one of with respect to surcharges that are administered and the above-referenced six (6) taxes. The Act provides collected by the Department, the Act states that the law that any surcharge shall be levied, collected, and which applies to the recovery of the underlying taxes administered in the same manner as the applicable illegally assessed or collected be conformed to apply to underlying local tax, and shall be subject to the same the recovery of surcharges illegally assessed or collected. conditions, limitations, exemptions, credits, returns and For any surcharge that the Department administers other requirements as are applicable to the underlying and collects, the Act states that the Department shall local tax. have the same powers in regard to the underlying local The rate of a surcharge under the Act depends upon the tax and shall remit the proceeds of the surcharge to the maximum rate established for a particular surcharge. For local government less an administrative fee. instance, a surcharge on the local option sales and use tax may C. Tax Inequities Addressed by the Act. The tax inequities not exceed the maximum rate established for the applicable (that is, rate cuts or other types of tax decreases) addressed underlying local option sales and use tax. Additionally, no by the Act include the following: local government may levy a surcharge on a business tax, a surcharge on a local rental car tax, or surcharge on a residential (1) Sales Tax on Food Reduced. Continuing the General development tax that separately exceeds the rate of 20% of the Assembly’s intent to reduce the sales tax on food and current applicable rate of the business tax, local rental car tax, or food ingredients for human consumption, the Act further residential development tax. Still further, no local government reduces the sales tax from its 5% rate to 4% effective July 1, may levy any combination of the tourist accommodation taxes, 2017. See the Department’s Notice #17-07 addressing this hotel occupancy taxes, local tourism development zone business tax rate reduction. taxes, state sales and use taxes, local option sales and use taxes, (2) Hall Tax Rate Reduced/Then Eliminated. The General or surcharges on any combination of tourist accommodation Assembly in 2016 reduced the Hall income tax rate from its taxes, hotel occupancy taxes, and local option sales and use taxes historic 6% to 5% effective January 1, 2016. Additionally, that exceed a combined rate of 20% on hotels, motels or other the General Assembly last year expressed its intent to tourist accommodations which are subject to such taxes and continue reducing this tax rate such that the Hall income surcharges. tax is eliminated for tax years that began on or after January There are several exemptions and/or limitations 1, 2022. In furtherance of the foregoing, the Act provides specifically referenced in the Act which would be that the rate of the Hall income tax will be 4% for tax years applicable to a surcharge on the local option sales and beginning on or after January 1, 2017, 3% for tax years use tax as well as certain of the other surcharges. beginning on or after January 1, 2018, 2% for tax years beginning on or after January 1, 2019, 1% for tax years The Act provides that a taxpayer shall have the same
Charles Schneider, Director of Government Affairs for the Tennessee Chamber, visits Columbia to share information on how the IMPROVE Act will benefit road and bridge improvements statewide.
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beginning on or after January 1, 2020, and 0% for tax years taxpayer revoked the previous election. beginning on or after January 1, 2021. Specifically with respect to the franchise tax, the Act includes an (3) Single Sales Factor Apportionment Formula for additional provision making the single sales factor operative only Manufacturers. Effective for tax years beginning on or after if the Tennessee State Funding Board certifies that all payments January 1, 2017, a taxpayer whose “principal business in have been made on bonds issued by the State as of July 1, 2013 Tennessee is manufacturing” may elect to apportion net which are still outstanding, that the State is not in default in earnings for excise tax purposes and may elect to apportion payment of any debt or interest on said bonds, and that the the net worth for franchise tax purposes pursuant to a single fees and taxes which are to be lowered (one of which being the sales factor. That single sales factor is in essence a fraction, franchise tax pursuant to this single sales factor apportionment the numerator of which is the total receipts of the taxpayer election) will still be sufficient to provide funds adequate to in Tennessee during the taxable year and the denominator meet all payments required by the State Funding Board as of which is the total receipts of the taxpayer from any well as provide for other obligations of the State. Hopefully, location within or outside this State during the taxable year. that certification from the State Funding Board will always be The phrase “principal business in Tennessee is manufacturing” forthcoming. is defined to mean that more than fifty percent (50%) of the Also specifically as to the franchise tax, please note that this revenue derived from the taxpayer’s activities in Tennessee elective single sales factor apportionment formula does not (excluding passive income) is from fabricating or processing compromise or otherwise impact a taxpayer’s franchise tax tangible personal property for resale and consumption off the liability computed under the minimum measure of the franchise premises. The phrase “passive income” means dividend income, tax base. interest income, income derived from the sale of securities, and (4) Property Tax Relief for Certain Taxpayers. Continuing income derived from the licensing or sale of patents, trademarks, with the General Assembly’s efforts almost each year to trade names, copyrights, know-how, or other intellectual assist certain taxpayers with respect to their property taxes, property. the Act provides that: (i) for taxpayers either 65 years In order to elect use of the single sales factor apportionment of age or older or totally and permanently disabled, and formula for either tax, the taxpayer must notify the Department assuming an annual income from all sources not exceeding of the election, in writing, on its Franchise, Excise Tax Return $24,000, reimbursement from the State shall be paid on for the taxable year to which the election applies. Once an the first $27,000 (up from $23,500) of the full market election is made, that election shall remain in effect for a value of the taxpayer ‘s property, and beginning in 2018 minimum of five (5) tax years and thereafter until revoked. such amount shall be increased annually to reflect inflation A taxpayer wishing to revoke an election after the minimum five as measured by the U.S. Bureau of Labor Statistics (5) years must notify Department of the revocation, in writing, Consumer Price Index; and (ii) for disabled veteran on its Return for the first taxable year to which the revocation taxpayers, reimbursement from the State shall be paid on applies. the first $175,000 (up from $100,000) of the full market value of the taxpayer’s residence. These provisions are A taxpayer that revokes the single sales factor election shall not effective under the Act on July 1, 2017. be permitted to newly elect this single sales factor method for a period of five (5) years, beginning with the tax year in which the
2017 Legislative Session Continued from page 3 factor formula for manufacturers’ tax assessments long champi- efforts became evident during floor debates in both the House oned by the Tennessee Chamber. Accordingly, the final version and Senate, as legislators spoke up and recounted interactions of the legislation actually evolved into one of the largest tax cuts from their local chambers and employers back home about the in Tennessee history. importance of the legislation. Thanks to the determined work Both of these issues presented a keen opportunity for the of our partner business advocates and local chamber leaders, the Tennessee Chamber to engage in the legislature’s public policy IMPROVE Act sailed to overwhelming passage in the Senate maneuverings to sharpen Tennessee’s business climate and to and a decisive 60-vote approval in the House. give our businesses and local chamber partners the opportunity While tax reform may have emerged as the most prominent to engage and elevate their voices at a state level. Enacting this headline of the 2017 General Assembly, there were a consider- type of major tax reform was no easy task, especially at a time of able number of other bills that the Tennessee Chamber also en- such political uncertainty. However, the fruits of our combined deavored to defeat, pass, or otherwise amend on behalf of the
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state business community and our member companies. These nomic development professionals across the state to guide our issues ranged from regulatory issues around labor requirements collective efforts and engage regularly with elected lawmakers. and mandates on employer health insurance to expanding work- With over 1450 bills filed this year alone on topics impacting a based learning opportunities for industry-oriented students and diverse array of tax, employment, regulatory, and environmental prohibiting local land use restrictions from being used in air pol- permit issues, it is essential that we continuously seek to fortify lution controls. This edition of the Business Insider highlights and reinvigorate our partnerships with one another in the busi- many of these issues in our bill charts and legislator vote score- ness community. cards on identified legislation of significance to business. In the previous pages, we have provided a comprehensive Looking back on the session, it is important to recognize summary of the Tennessee Chamber’s legislative advocacy activ- that no major bill opposed by the Tennessee Chamber was passed ities throughout the 2017 session and identified key votes and without an amendment that addressed our concerns. This re- bills of particular importance to employers. While the collective markable accomplishment stands as an unspoken testament to policy outcomes of this year’s session proved to significantly bol- the economic and market-centric principles of our elected of- ster our state’s economic competitiveness, we encourage read- ficials in the legislature and state executive officers and to the ers to review each bill carefully and observe how your elected leadership of the business community at large for speaking out senators and representatives voted on key measures. We hope about the importance of these issues. The reach and influence this publication can serve as a tool to communicate our work of the Chamber is only as strong as our grassroots network of in Nashville and hold our elected leaders accountable for the partners, and we rely on our businesses, local chambers, and eco- economic impacts of their political and policy decisions.
TN CHAMBER, A LONG, PROUD HISTORY: PAVING WAY FOR TN BUSINESS GROWTH
hile the Tennessee Chamber of Commerce & needed he also would get Industry is our current name this organization began rights to produce electric Wlife as the Tennessee Manufacturers Association power and sell it in the (TMA) in 1912. We are fortunate in the fact that our former Tennessee Valley which the leaders persevered Association considered to be documents and a bad idea. TVA was created pictures. We have shortly after Congress rejected recently reviewed this Ford’s proposal. material and discovered • Copies of the three speeches some interesting facts given at the 1927 convention about our history. Here which run 78 pages. are some of the items that have been kept. A few interesting facts: The Official Report • A TMA committee led by George L. Hardwick the of the First Annual Convention which was held in Memphis on founder of Cleveland Woolens Mills, TMA was June Fifth and Sixth, 1913, and a copy of the first audit-receipts instrumental in creating Tennessee’s no fault workers’ $8,266.6/ disbursements-$8,266.66/cash on hand $547.35 compensation law in 1919. His company now known as Hardwick Clothes is still a member. • A copy of Public Chapter 144-This law repealed a • C.C. Gilbert, TMA’s Executive Secretary, promoted section of code that allowed for independent back tax scrap drives in the 1940s which produced 542 collectors who in the words of C. C Gilbert, the head million pounds of metal for the war effort and of TMA, “infested the state “and who were “holding generated $4 million to be invested in war bonds. up industries” and causing them to leave Tennessee. • TMA led the effort to enact Tennessee’s Open Shop • A copy of 1924 testimony by TMA representatives Law in 1947 now known as Right to Work. made before the US Senate in which the organization opposed a proposal by Henry Ford to obtain from • In 1944 there were 1900 manufacturing plants in the Federal Government a 100 year lease on the Tennessee & 1700 were members of TMA. Muscle Shoals, AL nitrogen plant. While he pledged • TMA opposed Franklin Roosevelt’s New Deal. to make nitrogen fertilizer and gun powder when 36 Cornerstone Investors The Tennessee Chamber of Commerce recognizes stakeholders who invest at exceptional levels. These leading companies are shaping the future of Tennessee and help make the state a better place to work and live. CAPSTONE
KEYSTONE
FOUNDATION
Aegis Sciences Corporation Dupont McKee Foods Corporation Tennessee Farm Bureau Altria Eagle Bend Manufacturing, Inc. Medtronic – Spinal & Biologics Federation ASSA ABLOY Door Group Electrolux North America Merck & Co., Inc. Tennessee Technological AT&T Embraer Aircraft Maintenance Svcs. MTSU Jones College of Business University Atmos Energy First Tennessee Bank Mountain States Health Alliance Tennsco Corporation Barrette Outdoor Living Franke Foodservice Systems Mullican Flooring TVA Bass, Berry & Sims PLC General Mills Norfolk Southern Corporation Tyson Foods Brother International Corp. Highway Transport Logistics Nucor Steel of Memphis, Inc. United Parcel Service (UPS) Burr & Forman, LLP International Paper Company Orgill, Inc. University of Tennessee Caterpillar, Inc. Jackson National Life Insurance Co. Packaging Corp. of America US Bank Chattem, Inc. John Deere Power Products Pearson Valero Memphis Refinery Chemours JTEKT Automotive Tennessee Pinnacle Financial Partners Vanderbilt University Clean Line Energy Partners LLC Vonore Planters Bank Wacker Polysilicon Community Health Systems Kellogg Company Resolute Forest Products Waller Consolidated Nuclear Security Kinder Morgan Skanska Wal-Mart Stores Inc. Cooper Standard Automotive Koch Companies Public Sector, LLC Snap-On Tools Wellmont Health System CSX Transportation LBMC State Farm Mutual Insurance Whirlpool Corporation Dana Corporation Mahle Industries, Inc.
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Upcoming TTrainingraining Courses & Chamber Events 2017
Date Event T Trainingraining Location
June 13 W Working-Walkingorking-Wking-Walking Surfaces (TOSHA) Knoxville June 15 W Working-Walkingorking-Walkingn Surfaces (TOSHA) JacksonJ June 21 Cybersecurity rsec ConferConferenceence Nashv Nashvilleshville JuneJune 2222 TN ManufaManufacturers Association Breakfast MaryvilleMaryaryvillele Junee 23 TN Manufacturers AssociatioAssociation Breakfast Cookev Cookevilleeville JuneJunune 27 W Working-Walkingorking-Walking SurfacSurfacesfaces (TOSHA) Murfreesb Murfreesborore sboroo JuneJ e 29 TN Manufacturerss AssociationA BreakfastBreakfaast SmyrnaSmyr yrna Julyly 11 TN ManufacturersManufacture s AAssociation BreakfastBreakfasts Dye Dyersburgyersburg JulyJuuly 133 Industrial Air RegulationsRegula Compliance NashvilleN JuJulyuly 18 Dentalntal Local Emphasis Programm (LEP)(LE TOSHA Jac Jacksonackson JJuJulyuulyy 19 DentalD Local Emphasis Programgram (LEP) TOSHATO MurfreesboroMurfreereesboroo JuJulyuly 20 Dental Local Emphasiss PProgram (LEP) TOSHATOSHHA Knoxvill Knoxvillevilleillle JulyJuuly 27 TNT Manufacturers AssociationAssoc Breakfast Clevelandnd AugustAugugust 2 TNN ManufacturersManufactureurers AssociationAssocA ssocciation Breakfast Break Chatta Chattanoogaanoogaa AugustAAugugust 10 Indust Industrialustrial Air Regulationsns Compliance KnoxvilleK AugustAu st 23-25 TCCE AnnAnnualnnual Membership Conferenceerence MaryvilleM e SeptemberSepteembeber 20 Annual al TTaxax Conferenceference Nashvil Nashvilleille SeptembSSeptembermber 227-29 TEDC DC Fall ConfConference Mem Memphisemphishis October 16 T Tennesseeennessee Chamber GolfGol Tournament NashN Nashvillehvillev October 23-244 35 th Annual Environmentnmen & Energy Conference MontgomeryMo Bell State Park
The TennesseeTennessee Chamber provides accessaccess to businessbusiness andand political decisionmakers,decisionmakers, educationaledu events,events, updated government policies,policies, LQÁXHQFHRQLQÁXHQFHRQCapitol Hill to shape policies in support of a favorable business climate cl and protprotectionection against unfavorable legislationlegislation and bureaucracy.bureaucracy.