Tennessee legislators intend to thwart future legal challenges to the state’s franchise tax by eliminating a provision in the 1935 law that faces a “pending challenge," state Revenue Commissioner David Gerregano said this week. According to the Tennessee Journal, Gerregano told Senate Finance Chair Bo Watson, R-Hixson, that tax experts in his department identified a “significant legal risk” in the way the tax is structured, which could prove “extremely costly” to Tennessee taxpayers. Companies doing business in Tennessee face paying business franchise and excise taxes of 0.25%. The franchise tax is projected to raise $1.732 billion in the current budget year.

The Tennessee legislature is back in session, and lawmakers are focused on your issues. The Tennessee Supreme Court recently announced its intention to ask the governor and General Assembly to increase compensation for court-appointed attorneys in the juvenile and criminal courts. Court-appointed attorneys, who represent the indigent, including children, are grossly underpaid in Tennessee. Because of this, fewer and fewer attorneys can afford to take cases representing the indigent, resulting in a crisis in our legal system. It’s time for Tennessee attorneys to convey to their elected legislators how serious this problem is and the toll it is taking on the entire judicial system. Learn more from the TBA Government Affairs team and then reach out to your legislators and ask them to support increased funding for indigent representation (find your Tennessee legislators here). Also, please respond to this survey and join TBA’s Grassroots Advocacy efforts to receive action alerts as relevant policy issues arise, including indigent representation. Finally, please sign up to join us for TBA Day on the Hill on March 20.

Tennessee Gov. Bill Lee last week unveiled the "Ensuring Likeness Voice and Image Security (ELVIS) Act," a first-of-its-kind bill aimed at protecting singers and songwriters from unlawful use by artificial intelligence (AI), reports WSMV4. Lee made the announcement at historic RCA Studio B in Nashville, where Elvis Presley recorded for over a decade. The bill would prohibit people from using AI to replicate a performer’s voice without permission and would add an artist’s voice to existing image and likeness protections in Tennessee.

State Rep. Gino Bulso, R-Brentwood, has introduced a bill that would block state courts from hearing challenges to any internal rule, regulation or procedure adopted by the General Assembly. The Tennessean reports that the proposed measure, HB165, would not apply to laws passed by the legislature, which are routinely challenged in state court. Bulso says he decided to file the bill after Davidson County Chancellor Anne Martin blocked a House rule about access to committee hearings this past summer.

State Rep. Vincent Dixie, D-Nashville, has asked Tennessee Attorney General Jonathan Skrmetti to weigh in on the state House’s new policy requiring tickets for the public to sit in the West Gallery during legislative proceedings. The change was adopted yesterday as part of a new rules package. News Channel 5 has more on the story.

The Tennessee Senate’s joint working group studying the possibility of rejecting federal education funding has released its report, stating there were “more questions than definitive answers” on the feasibility of rejecting billions of dollars in federal education funding. An issue with the federal funding, according to House Speaker Cameron Sexton, R-Crossville, who in November contemplated the idea of rejecting the funding, was the concern that federal funds came with too many strings. The report concluded that there are already prohibitions on federal overreach within the large programs that provide funding for education. In addition, the report notes that Tennessee could potentially replace federal education funding with recurring state revenues, but it would do so “at the expense of other potential investments.” WKRN has the story.

The Tennessee House of Representatives today adopted a new rules package in a vote of 70-19 for the 113th Session. Tennessee House members may not use papers or visual aids while they discuss legislation but spectators watching legislative proceedings can still hold 8.5-by-11-inch signs this year. Additionally, House members approved a new rule to temporarily silence members ruled out of order by the speaker. For a first out-of-order offense, the member will not be able to participate in any further discussion of that current subject. If found out of order a second time, the member will have their speaking time reduced from five minutes to two minutes. On a third violation, the member will be barred from speaking on the floor for two legislative days. Guns will continue to be allowed in hearing rooms and banned from the House floor, and bill presentations in committee will be limited to five minutes. The Tennessean has more coverage of the rules package. In other action, House Speaker Cameron Sexton, R-Crossville, implemented a new policy governing access to one of the chamber's public galleries. The West Gallery is now accessible only to those who receive a ticket from a legislator, reports WPLN. Public access to the East Gallery remains on a first-come, first-served basis, Sexton's office tells the Tennessean. The House parliamentarian says the rules allow Sexton to enact policies that address decorum without needing a vote of the members.

Gov. Bill Lee is planning to unveil proposed legislation that addresses the impact of artificial intelligence (AI) on the music industry, reports the Nashville Business Journal. While current state law protects image and likeness, new protections would be more tailored to audio according to the Journal. Lee’s plan would update current law to include protections for songwriters', performers' and music industry professionals’ voices from the misuse of AI. A full announcement is expected Wednesday.

Tennessee lawmakers returned to the state Capitol Tuesday to kick off the 2024 legislative session at which lawmakers are expected to debate legislation related to education, taxes and abortion, among other issues. Sen. Ferrell Haile, R-Gallatin, the speaker pro tempore, presided over Tuesday's brief floor session leading praise for Sen. Art Swann, R-Maryville, who announced his planned retirement. Gov. Bill Lee's top priorities for the session include expanding the Education Freedom Scholarship Act across the state and reforming the state's franchise tax on businesses. On abortion, Democrats plan to continue efforts to weaken the state's restrictive abortion law. Read more about the new session.

Tennessee law firm Baker Donelson announced that Lang Wiseman, head of the firm’s public policy practice, and Jacob Baggett will lead the firm’s new emphasis on government relations, the Nashville Post reports. Wiseman returned to Baker Donelson in 2022 after working as deputy governor and chief counsel to Gov. Bill Lee. Baggett was hired as a public policy adviser after working as a senior public policy attorney at Bass, Berry & Sims. Wiseman announced that Baggett will serve as the firm’s "boots on the ground" at the Tennessee legislature. The Memphis-based firm, which has 22 offices in mostly southern states, plans to replicate its new emphasis on lobbying in other states.