The Tennessee General Assembly adjourned on April 25, and 2024 proved to be a successful legislative year for the TBA. All of the legislative initiatives drafted by TBA Sections were passed by the General Assembly and signed into law by the governor. Additionally, TBA secured an additional $8.9 million of additional funding for court appointed attorneys representing the indigent.

From left, TBA's Government Affairs Team of Ashley Harbin, Brad Lampley and Berkely Schwarz present a CLE session on legislation affecting Tennessee lawyers from the most recent Tennessee General Assembly.

Indigent Representation Funding

The General Assembly’s budget for Fiscal Years 2024-2025, HB2973/SB2942, included $8.6 million in additional recurring funding to increase the hourly rate for court-appointed attorneys representing the indigent, raising the hourly rate by $10 an hour to $60 an hour, as well as the corresponding caps. The TBA supported the Administrative Office of the Court’s budget request of $26.145 million, which would have raised the hourly rate to $80. It remains committed to working with stakeholders to secure additional resources to fairly compensate lawyers who do this important work.

Cost of Electronic Medical Records

HB647/SB1313, sponsored by Rep. Charlie Baum, R-Murfreesboro, and Sen. Paul Bailey, R-Sparta, and spearheaded by the TBA Disability Section and the Tennessee Trial Lawyers Association, provides that the total charges for electronic medical records provided by medical providers must not exceed 25 cents per page for each page after the first 10 pages, up to $90, with the exception of fees charged for reproducing electronic records of patients involved in a claim or appeal of denial for social security disability benefits which must be a flat fee of $20. The bill was signed by Gov. Bill Lee in April and went into effect on July 1.

Conservatorships

HB2710/SB2254, sponsored by Rep. Johnny Garrett, R-Goodlettsville, and Sen. John Stevens, R-Huntingdon, and drafted by the TBA Probate Study Group, provides that a medical or psychological report needed to appoint a conservator no longer must be notarized and instead may be declared under penalty of perjury as set forth in Tennessee Rule of Civil Procedure 72. This provision was signed into law by the governor and went into effect on March 27.

Adoption Clean Up

HB2644/SB2633, sponsored by Rep. Tom Leatherwood, R-Arlington, and Sen. Ferrell Haile, R-Gallatin, and drafted by the TBA Adoption Law Section, cleans up and provides uniformity in the adoption statutes to ensure that the statutes enacted in 2023 will work as intended in practice. It includes amendments regarding child placement, putative fathers, child witnesses, termination of parental rights in causes of severe abuse, among others. It was signed into law and took effect on July 1.

Birth Certificates in Adoptions

HB2645/SB2632, also sponsored Leatherwood and Haile and drafted by the TBA Adoption Law Section, requires the Tennessee Department of Vital Records to issue birth certificates within 45 days of the finalization of an adoption, among other things. Gov. Lee signed the bill into law, and it took effect July 1.

Budget

Before adjourning, the General Assembly approved a $52.8 billion budget for FY 24-25, reflecting a $10 billion reduction in state spending — a 16% decrease from the previous year’s budget. The budget took effect on July 1.

Many of Gov. Lee’s budget proposals, initially introduced in February and refined with a late March amendment, remained unchanged throughout the legislative process. The overarching aim of this year’s budget, as outlined by Finance & Administration Commissioner Jim Bryson, is to maintain fiscal responsibility, aiming for a return to “normal” by 2026. This objective is proposed to be achieved by preserving the base budget and reserves, bolstering the Rainy Day Fund, and avoiding additional debt.

A notable inclusion in the final budget is a $100 million investment in the state’s Rainy Day Fund, elevating it to a record high of $2 billion. This fund serves as Tennessee’s savings account to withstand economic downturns. Other highlights from the budget include $261 million towards the Tennessee Investment in Student Achievement (TISA) public school funding formula, which includes $125 million for increased teacher pay and retirement contributions. There was also a focus on rural health after a Rural Health Task Force was implemented and found there was a need for funding in this area, leading to $200 million being allocated for rural health.

Franchise and Excise Tax

The House and Senate eventually reached a compromise on Lee’s proposal to amend Tennessee’s 90-year-old franchise tax laws and provide a refund for taxes paid by businesses — a measure deemed crucial in light of recent concerns that Tennessee’s alternative tax base model potentially violates the Commerce Clause of the U.S. Constitution. The agreement that passed includes a 3.5 year look back on a refund and will make the list of companies receiving refunds publicly available for 30 days between May 31 and June 30, 2025. That list will break the companies down into four different categories: companies receiving refunds ranging from $0 to $750, companies receiving $750-$10,000, companies receiving greater than $10,000, and companies whose applications are pending, but not yet resolved. The legislation provides that to receive a refund, companies must agree to waive all further claims with the state. Further, any company not applying for a refund that elects to sue the state instead will not be entitled to attorneys’ fees. The Conference Committee plan passed the Senate 25-6 and the House 69-23 and was signed into law by the governor on May 10.

Education Freedom Scholarship Plan

The House and Senate were unable to reach a compromise between their respective amendments to Gov. Lee’s education freedom scholarship plan, thus causing the governor to pull the plug on the bill for the year.

An in depth look at the adoption, probate and medical records bills written by TBA Section members is available online at www.tba.org/legislativeupdate2024_tbj. |||