Legislative Update Week of 4-16-18

Update/Memo
Bill Tracking — View/Download PDF
Weekly Legislative Calendar

 

Update/Memo

Last week saw developments on a number of bills that we are tracking for the REALTORS®…

A bill that would allow service of a summons upon a contractually named party (SB1655/HB1667), to help a landlord gain repossession of their property in real estate disputes has passed both houses. This bill was amended to allow any adult person occupying a premises to be served a summons for the purpose of a landlord regaining possession of property, and awaits the governor’s signature.

A bill (SB 2081/HB 2036) creating a task force to examine needed updates to auctioneer licensing and online auction laws continues to move forward. With representation of all interested parties, including TREC, this task force will have a solid discussion to generate broad agreement on a bill to be brought at the start of the 111th General Assembly next spring. The task force bill has passed the Senate, and goes before the full House of Representatives on Monday 4/16.

We continue to watch a bill addressing short-term rentals (SB 1086/HB 1020). A previous version of this bill passed the House last year, and, after a lengthy floor debate concerning the bill and 13 proposed amendments, was passed by the Senate this week. However, the House and Senate could not agree on the particulars of certain amendments, and the bill will head to a conference committee in the coming weeks.

Sen. Joey Hensley (R-Hohenwald) introduced an amendment to SB 2556/HB 2439 that would criminalize fraudulent claims of a disability for the purpose of keeping a pet in an apartment that does not allow them. This bill, if enacted, would also allow the tenant to be held in breach of a rental agreement if convicted under the statute. The bill has passed the House, and awaits a date for the Senate floor.

On another note, a hard-fought legislative battle over the sale of wine and liquor on Sundays (SB 2518/HB 1540) ended with both houses narrowly voting in favor. Liquor stores will be allowed to open on Sundays as soon as this summer, but you’ll have to wait until next January to pick up wine with your Sunday groceries.

 

Weekly Calendar – April 16, 2018

Mon 4/16/18 1:00pm – House Hearing Rm II, House Local Government Committee

MEMBERS: CHAIR T. Wirgau (R); VICE CHAIR D. Howell (R); C. Sexton (R); J. Sexton (R); A. Parkinson (D); L. Miller (D); M. Gravitt (R); J. Eldridge (R); J. Crawford  (R); B. Cooper (D); D. Carr (R); D. Alexander (R)

4.

HB1357 Mitchell B.

TAXES PROPERTY: Property tax freeze for elderly. Requires that an application for a property tax freeze be approved if the qualified applicant dies prior to filing the application on or after January 1 of the tax year for which the freeze is sought Amendment Summary: House Local Government Subcommittee amendment 1 (011359) deletes and rewrites all language after the enacting clause and states that if a person who is otherwise eligible for a property tax freeze dies on or after January 1 of the tax year, the collecting official, upon receiving notice of the death and qualifications for the freeze, shall approve the freeze regardless of whether an application was filed. Fiscal Note: (Dated March 23, 2017) Other Fiscal Impact To the extent qualified property tax freeze program recipients die on or after January 1 but prior to filing applications for the applicable tax year, the applicable local governments offering such tax freeze programs may incur a decrease in local property tax revenue if qualified applications are submitted after such recipients deaths. The extent and timing of any such decreases are unknown. Senate Status: 04/11/17 – Senate State & Local Government Committee deferred to first calendar of 2018. House Status: 04/12/18 – Set for House Local Government Committee 04/16/18. Position: Realtors: support SB870 – J. Yarbro – 04/11/17 – Senate State & Local Government Committee deferred to first calendar of 2018.

 

Mon 4/16/18 3:30pm – Senate Chamber, Senate Floor

 

5.	SB2658 Bailey P.	PROPERTY & HOUSING: Applicability of Uniform Residential Landlord and Tenant Act to certain counties. Extends the Uniform Residential Landlord and Tenant Act to include any county that a four year private or public university is located. Amendment Summary: Senate Commerce & Labor Committee amendment 1, House Business & Utilities Committee amendment 1 (014658) rewrites the bill. States that in countries having a population of more than 75,000, according to the 2010 federal census or any subsequent federal census, this chapter applies to rental agreements entered into or extended or renewed after July 1, 1975. Transactions entered into before July 1, 1975, and not extended or renewed after that date, and the rights, duties, and interests flowing from them remain valid and may be terminated, completed, consummated, or enforced as required or permitted by any statue or other law amended or repealed by this chapter as though the amendment or repeal has not occurred. For all other counties in this state not included in subsection (a), this chapter applies to rental agreements entered into or extended or renewed on or after January 1, 2019. Fiscal Note: (Dated March 2, 2018) NOT SIGNIFICANT Senate Status: 04/12/18 – Set for Senate Floor 04/16/18. House Status: 04/12/18 – Held on House clerk’s desk. Position: Realtors: monitor HB2023 – A. Farmer – 04/12/18 – Held on House clerk’s desk.
12.	HB2195 Goins T.	LOCAL GOVERNMENT: Local government restrictions on flag displays. Prohibits a county legislative body or a municipal legislative body from adopting or enforcing a resolution or ordinance that prohibit or restrict the display of a flag on a property owner’s property except when necessary to promote public health and safety. Fiscal Note: (Dated February 21, 2018) NOT SIGNIFICANT Senate Status: 04/12/18 – Set for Senate Floor 04/16/18. House Status: 03/26/18 – House passed. Position: Realtors: monitor SB2117 – F. Niceley – 04/12/18 – Set for Senate Floor 04/16/18.
33.	SB2295 Bell M.	GOVERNMENT REGULATION: UAPA – continues permanent rules filed with secretary of state. Continues permanent rules filed with the secretary of state on or after January 1, 2017 with certain exceptions. Prohibits the department of children’s services from creating a process whereby a person determined to be a perpetrator of child abuse or neglect may have their substantiations reviewed as authorized under Rule 0250-07-09-.12. Amendment Summary: House Government Operations Committee amendment 1, Senate Government Operations Committee amendment 1 (016150) rewrites the bill. Removes language in the bill regarding Department of Children’s Services Rule 0250-07-09-.12, relative to the Child Abuse Registry Review Committee. Fiscal Note: (Dated February 14, 2018) NOT SIGNIFICANT Senate Status: 04/12/18 – Set for Senate Floor 04/16/18. House Status: 04/12/18 – Set for House Floor 04/18/18. Position: Realtors: monitor HB2328 – J. Faison – 04/12/18 – Set for House Floor 04/18/18.
46.	SB2214 Swann A.	PROPERTY & HOUSING: Sober living homes. Allows for municipalities to require sober living homes to submit records of the home s location and its rehabilitation program. Decreases from eight to six the maximum number of unrelated people living in a place to be called a single family residence. Amendment Summary: Senate State & Local Government Committee amendment 1, House amendment 1 (014018) deletes all language after the enacting clause. Requires a municipality to display required notice regarding unlawful operation of alcohol and drug abuse prevention and or treatment services in city hall or other building that houses the municipality’s seat of government. Requires a municipality that maintains a website to also place such notice predominantly on its website. Authorizes a municipality to adopt an ordinance to require sober living homes to display notice in a prominent place within the sober living home and further authorizes municipalities to adopt ordinances encouraging sober living homes to become chartered and comply with applicable requirements. Fiscal Note: (Dated February 13, 2018) Increase State Expenditures $1,410,000 Senate Status: 04/12/18 – Set for Senate Floor 04/16/18. House Status: 04/02/18 – House passed with amendment 1 (014018). Position: Realtors: monitor HB1929 – M. Curcio – 04/02/18 – House passed with amendment 1 (014018).

 

Wed 4/18/18 9:00am – House Hearing Rm I, House Finance, Ways & Means Subcommittee 1

HEADER: Calendar 1, Behind the Budget. MEMBERS: CHAIR G. McCormick (R); R. Williams (R); C. Sargent (R); S. McDaniel (R); H. Love Jr. (D); G. Hicks (R); P. Hazlewood (R); D. Hawk (R); C. Fitzhugh (D); J. Coley (R); K. Camper (D); K. Brooks (R)

50.	HB41 VanHuss J.	TAXES BUSINESS: Phases out professional privilege tax. Phases out the professional privilege tax over a five-year period for tax years that begin on and after June 1, 2017. Amendment Summary: House Finance, Ways & Means Subcommittee amendment 1 (004921) deletes the provision of the original bill that established the tax due date “on June 1 following the end of the tax year” and replaces it with language that establishes the tax due date “on June 1 of each tax year.” Fiscal Note: (Dated February 1, 2017) Decrease State Revenue Net Impact $88,918,900/FY16-17 $17,783,800/FY17-18 $35,567,500/FY18-19 $53,351,300/FY19-20 $71,135,100/FY20-21 $88,918,900/FY21-22 and Subsequent Years Decrease State Expenditures $974,400/FY16-17 $194,900/FY17-18 $389,800/FY18-19 $584,600/FY19-20 $779,500/FY20-21 $974,400/FY21-22 and Subsequent Years Increase Local Revenue $441,200/FY16-17 $88,200/FY17-18 $176,500/FY18-19 $264,700/FY19-20 $353,000/FY20-21 $441,200/FY21-22 and Subsequent Years Senate Status: 05/08/17 – Set for Senate Finance, Ways & Means Committee 05/09/17. House Status: 04/12/18 – Set for House Finance, Ways & Means Subcommittee 1 04/18/18. Position: Realtors: support SB132 – J. Bowling – 05/08/17 – Set for Senate Finance, Ways & Means Committee 05/09/17.
51.	HB1034 VanHuss J.	TAXES BUSINESS: Eliminates the professional privilege tax. Eliminates the professional privilege tax for the tax year ending on May 31, 2018, and subsequent tax years. Amendment Summary: House Finance, Ways & Means Subcommittee amendment 1 (004922) deletes the provision of the original bill that established the tax due date “on June 1 following the end of the tax year” and replaces it with language that establishes the tax due date “on June 1 of each tax year.” Fiscal Note: (Dated February 7, 2017) Decrease State Revenue Net Impact $88,918,900/FY16-17 and Subsequent Years Decrease State Expenditures $974,400/FY16-17 and Subsequent Years Increase Local Revenue $441,200/FY16-17 and Subsequent Years Senate Status: 05/08/17 – Set for Senate Finance, Ways & Means Committee 05/09/17. House Status: 04/12/18 – Set for House Finance, Ways & Means Subcommittee 1 04/18/18. Position: Realtors: support SB205 – J. Bowling – 05/08/17 – Set for Senate Finance, Ways & Means Committee 05/09/17.
59.	HB46 Clemmons J.	TAXES BUSINESS: Professional privilege tax. Exempts individuals from the professional privilege tax for the first year in which they are licensed or registered in a taxable profession. Amendment Summary: House Finance, Ways & Means Subcommittee amendment 1 (013375) changes the effective date from July 1, 2017 to July 1, 2018. Fiscal Note: (Dated February 1, 2017) Decrease State Revenue Net Impact $9,004,100 Decrease State Expenditures $98,800 Increase Local Revenue $44,700 Senate Status: 05/09/17 – Taken off notice in Senate Finance, Ways & Means Committee. House Status: 04/12/18 – Set for House Finance, Ways & Means Subcommittee 1 04/18/18. Position: Realtors: support SB306 – S. Kyle – 05/09/17 – Taken off notice in Senate Finance, Ways & Means Committee.
62.	HB2386 Daniel M.	GOVERNMENT REGULATION: UAPA – venue for appeals of contested case hearings. Requires the appeals of contested case hearings to be heard in the chancery court closest to the residence of the person contesting the agency action. Amendment Summary: House Finance, Ways & Means Subcommittee amendment 1 (017040) deletes and rewrites all language after the enacting clause such that the only substantive changes (1) remove the ability for an aggrieved person to choose any court having subject matter jurisdiction and (2) require appeals of contested case hearings involving TennCare determinations be held in the Davidson County chancery court. House Government Operations Committee amendment 1 (013406) rewrites the bill. Specifies that subsection (f) will not apply to appeals of contested case hearings involving TennCare determinations. House Civil Justice Committee amendment 2 (014785) rewrites the bill. Removes applicability from any appeals of contested case hearing involving TennCare determinations. Removes the ability for an aggrieved person to choose any court have subject matter jurisdiction. Requires all appeals of contested cases involving a local government entity to be conducted in the Williamson County Chancery Court. Senate Government Operations Committee amendment 1 (016186) rewrites the bill. Exempts appeals of contested case hearings involving TennCare, the Tennessee public utility commission, and contested cases where the party appealing is a local government entity. Requires petitions for review to be submitted to the chancery court within 60 days after the entry of the agency’s final order. Fiscal Note: (Dated February 20, 2018) Increase State Revenue Exceeds $10,000/Attorney General Increase State Expenditures Exceeds $59,200/General Fund Exceeds $10,000/Attorney General Increase Federal Expenditures $49,200 Senate Status: 03/28/18 – Senate Government Operations Committee recommended with amendment 1 (016186). Sent to Senate Calendar Committee. House Status: 04/12/18 – Set for House Finance, Ways & Means Subcommittee 1 04/18/18. Position: Realtors: support SB2603 – M. Bell – 03/28/18 – Senate Government Operations Committee recommended with amendment 1 (016186). Sent to Senate Calendar Committee.
86.	HB1468 Staples R.	TAXES SALES: Historic Structure Rehabilitation Act. Provides for a refund of state sales tax paid on expenditures to rehabilitate historic structures if the owner uses the certified historic structure for at least one year following the rehabilitation, the rehabilitation meets certain U.S. standards, and the certified qualified rehabilitation expenditures are made on or after July 1, 2018. Amendment Summary: Senate Finance Revenue Subcommittee amendment 1, House Government Operations Committee amendment 1 (013032) rewrites the bill to change definitions regarding “certified historic residential structure” and requires that certified qualified rehabilitation expenditures are made on or after July 1, 2019. Allows the taxpayer’s claim for refund of state sales or use taxes to include state taxes paid by the owner, contractors and subcontractors. Fiscal Note: (Dated February 6, 2018) Increase State Revenue $62,500/FY19-20 and Subsequent Years/Historical Commission Decrease State Revenue Net Impact $651,800/FY19-20/General Fund $1,303,600/FY20-21 and Subsequent Years/General Fund Increase State Expenditures $62,500/FY19-20 and Subsequent Years/ Historical Commission Decrease Local Revenue Net Impact $15,700/FY19-20 $31,400/FY20-21 and Subsequent Years HB 1468 SB 1685Other Fiscal Impact Secondary economic impacts may occur as a result of this legislation. However, due to multiple unknown factors, fiscal impacts directly attributable to such secondary economic impacts cannot be quantified with reasonable certainty. Senate Status: 03/06/18 – Senate Finance Revenue Subcommittee returned to full committee with a negative recommendation after adopting amendment 1 (013032). House Status: 04/12/18 – Set for House Finance, Ways & Means Subcommittee 1 04/18/18. Position: Realtors: support SB1685 – R. Briggs – 03/06/18 – Senate Finance Revenue Subcommittee returned to full committee with a negative recommendation after adopting amendment 1 (013032).
107.	HB1574 McDaniel S.	GOVERNMENT ORGANIZATION: Tennessee Heritage Protection Act of 2016 – exclusions. Excludes from coverage under the Tennessee Heritage Protection Act of 2016 memorials under the control of an accredited museum, public library, or public archive in certain circumstances. Amendment Summary: House State Government Committee amendment 1 (012101) prohibits public entities from selling or disposing of memorials on public property. Requires public entities to file a petition before any transaction involving a nonprofit or private entity. Allows interested parties to offer public comments regarding the petition prior to the commission’s decision. Establishes guidelines for the filing of complaints with the commission. Senate Finance, Ways & Means Committee amendment 1, House Finance, Ways & Means Subcommittee amendment 1 (016250) adds language to place the THPA under the governance of the Uniform Administrative Procedures Act (UAPA). Fiscal Note: (Dated February 13, 2018) NOT SIGNIFICANT Senate Status: 04/03/18 – Senate Finance Committee set behind budget after adopting amendment 1 (016250). House Status: 04/12/18 – Set for House Finance, Ways & Means Subcommittee 1 04/18/18. Position: Realtors: monitor SB2520 – B. Ketron – 04/03/18 – Senate Finance Committee set behind budget after adopting amendment 1 (016250).
112.	HB1061 McCormick G.	INSURANCE GENERAL: Historic Rehabilitation Investment Incentive Act. Enacts the Historic Rehabilitation Investment Incentive Act to facilitate the restoration and preservation of the state’s historic buildings and structures and redevelop the state’s main street communities. Amendment Summary: House Insurance and Banking Committee Amendment 1 (004236) makes minute changes by deleting the language “Sections 2 through 8” in Section 1 and substituting the language “Sections 2 through 7.” Also deletes the word “chapter” in the first sentence of subdivision (b)(2) in Section 5 and substituting the word “part.” Further deletes the language “headings to sections, chapters, and parts” in Section 8 and substituting the language “headings to sections.” Fiscal Note: (Dated February 23, 2017) Increase State Revenue $53,900/FY17-18 and Subsequent Years/ Historical Commission Decrease State Revenue $1,074,400/FY17-18/State Premium Taxes* $3,223,100/FY18-19/State Premium Taxes* $5,371,800/FY19-20/State Premium Taxes* $6,446,200/FY20-21 and Subsequent Years/ State Premium Taxes* HB 1061 – SB 1040 Increase State Expenditures $53,900/FY17-18 and Subsequent Years/ Historical Commission Other Fiscal Impact Secondary economic impacts may occur as a result of this bill. However, due to multiple unknown factors, fiscal impacts directly attributable to such secondary economic impacts cannot be quantified with reasonable certainty. *The following funds/departments will be affected by the awarding of tax credits: General Fund, Second Injury Fund, and the Department of Commerce and Insurance. The extent to which any fund or Department will be affected cannot be determined with reasonable certainty. Senate Status: 05/09/17 – Taken off notice in Senate Finance, Ways & Means Committee. House Status: 04/12/18 – Set for House Finance, Ways & Means Subcommittee 1 04/18/18. Position: Realtors: support SB1040 – B. Watson – 05/09/17 – Taken off notice in Senate Finance, Ways & Means Committee.

 

Wed 4/18/18 9:00am – House Hearing Rm I, House Finance, Ways & Means Subcommittee 2

HEADER: Calendar 2. Final Calendar. MEMBERS: CHAIR G. McCormick (R); R. Williams (R); C. Sargent (R); S. McDaniel (R); H. Love Jr. (D); G. Hicks (R); P. Hazlewood (R); D. Hawk (R); C. Fitzhugh (D); J. Coley (R); K. Camper (D); K. Brooks (R)

11.

HB13 Reedy J.

TAXES BUSINESS: Phases out the professional privilege tax over a four-year period. Phases out the professional privilege tax over a four-year period, by reducing the amount of the tax by $100 each year, for tax years that begin on and after June 1, 2017. Fiscal Note: (Dated February 1, 2017) Decrease State Revenue Net Impact $88,918,900/FY16-17 $22,229,700/FY17-18 $44,459,400/FY18-19 $66,689,100/FY19-20 $88,918,900/FY20-21 and Subsequent Years Decrease State Expenditures $974,400/FY16-17 $243,600/FY17-18 $487,200/FY18-19 $730,800/FY19-20 $974,400/FY20-21 and Subsequent Years Increase Local Revenue $441,200/FY16-17 $110,300/FY17-18 $220,600/FY18-19 $330,900/FY19-20 $441,200/FY20-21 and Subsequent Years Senate Status: 05/08/17 – Set for Senate Finance, Ways & Means Committee 05/09/17. House Status: 04/12/18 – Set for House Finance, Ways & Means Subcommittee 2 04/18/18. Position: Realtors: support SB364 – K. Roberts – 05/08/17 – Set for Senate Finance, Ways & Means Committee 05/09/17.

 

Wed 4/18/18 9:30am – House Hearing Rm I, House Finance, Ways & Means Committee

HEADER: Final Calendar. The committee will meet immediately following Finance, Ways & Means Subcommittee. MEMBERS: CHAIR C. Sargent (R); VICE CHAIR K. Brooks (R); T. Wirgau (R); G. Hicks (R); M. Hill (R); C. Johnson (R); H. Love Jr. (D); S. Lynn (R); G. McCormick (R); S. McDaniel (R); L. Miller (D); R. Williams (R); P. Hazlewood (R); D. Hawk (R); D. Byrd (R); K. Camper (D); M. Carter (R); J. Coley (R); J. Crawford (R); J. Deberry Jr. (D); C. Fitzhugh (D); B. Gilmore (D)

3.

HB971 Sargent C.

TAXES BUSINESS: Adverse action related to a license or other privilege – written request for hearing. Increases from 10 to 12 the number of days following any adverse action related to a license or other privilege that the licensee must file a written request for a hearing before the commissioner to contest the action. Broadly captioned. Amendment Summary: House Finance Subcommittee Amendment 1 (007935) rewrites the bill. Revises the distribution of local government revenue generation by the 2.25 percent local sales tax imposed on the sales price on the sales made in this state by dealers with no location in Tennessee. Fiscal Note: (Dated February 14, 2017) NOT SIGNIFICANT Senate Status: 02/21/17 – Referred to Senate Finance Revenue Subcommittee. House Status: 04/12/18 – Set for House Finance, Ways & Means Committee 04/18/18. Position: Realtors: support SB1075 – J. Lundberg – 02/21/17 – Referred to Senate Finance Revenue Subcommittee.