A Closer Look at the 2021 General Assembly in Tennessee

Following a series of protracted debates surrounding proposed changes to the state court system and public school curriculum, the 112th Tennessee General Assembly has concluded its business for the year.

While the legislature championed several of their own initiatives, a key focus of the 2021 legislative session centered on passing Governor Lee’s legislative agenda outlined in his State of the State address in February. To accomplish this end, the General Assembly passed a $42.6 billion balanced, debt-free budget, the largest in Tennessee state history, which allocates funding for the following legislative priorities:

• $71M to fully fund the state share of the BEP for K-12 education
• Four percent raise for teacher salaries
• $250M trust fund to assist K-12 families who are facing significant mental health issues in the wake of COVID-19
• $100M to invest in the Rainy-Day Fund
• $100M for local government infrastructure grants
• $931M for capital maintenance and improvements
• $5M for the Health Care Safety Net
• $7M to extend postpartum care for the TennCare population to 12 months
• $24M for Rural Opportunity Site Grants
• $30M to eliminate deferred maintenance and improve accessibility at state parks
• $36 million to fully fund the THEC outcomes-based formula
• $25M to Tennessee Promise to permit increases in the Hope Scholarship
• $37.9 million to fully fund TennCare growth
• $100 million one-time increase in broadband deployment to unserved areas through grants and tax credits
• $21.1 million nonrecurring to a rural development fund to assist with site development, community asset improvements, marketing, strategic planning, downtown revitalization and technical assistance.
• $25M for a two-week sales tax holiday for groceries
• $75M for a two-week sales tax holiday for restaurants and all prepared food
• $16M to reduce the professional privilege tax by 25 percent
• $250M to invest in the state pension system

Notable legislation passed pursuant to the Lee Administration agenda includes a significant criminal justice reform package, SB0767/HB0784 and SB768/HB785, centered on improving outcomes for formerly incarcerated individuals by increasing transparency in the parole process, enhancing practices that support success post-release, and expanding treatment services and community-based supervision for offenders as alternatives to incarceration. In addition, lawmakers passed Governor Lee’s permitless carry legislation, SB765/HB786, which will permit the majority of adults in Tennessee to carry a handgun without a permit. The law will officially take effect on July 1.

One of the final bills passed prior to adjournment involves a compromise to competing proposals seeking to bypass the chancery court in Nashville as a venue for constitutional challenges to state law.

On May 4, the Senate passed a version of the legislation on a 27-6 vote which establishes a new chancery court composed of three judges elected statewide. In contrast, the House passed legislation the next day by a 68-23 vote to create a special court of appeals comprised of three judges who would stand for retention elections. Following extensive negotiations, the Senate withdrew its demand of electing statewide judges and the chambers reached an agreement to instead modify the existing judicial process relative to constitutional challenges and redistricting matters. Pursuant to the adopted compromise, the chancellor who receives a legal challenge of constitutional or redistricting matters will be joined by two other chancellors from the remaining two grand divisions to preside over the case.

While several legislators attempted to pass legislation this year relative to medical marijuana, one proposal sponsored by Rep. Bryan Terry (R-Murfreesboro) and Sen. Ferrell Haile (R-Gallatin) succeeded. HB490/SB118 creates the Tennessee Medical Cannabis Commission to serve as a resource for the study of federal and state laws regarding medical cannabis and the preparation of legislation to establish a medical cannabis program in the state upon the rescheduling or rescheduling of marijuana from Schedule I of the federal Controlled Substances. The bill also permits individuals with certain illnesses to possess oil with no more than 0.9% THC, although the substance may only be obtained out of state.

Pursuant to the adjournment motion, the Tennessee General Assembly will resume legislative activity in January 2022. We will continue to monitor state legislative developments and provide updates accordingly.