Legislative Alert: July, 2001
by Louise Browning, CAE
Executive Director and Lobbyist
“No Tax” Budget Passes at 11th Hour
After literally months of struggle over tax reform, the legislature passed a “temporary” appropriations budget in order to avoid a partial government shutdown at the beginning of the state’s fiscal year (July 1.) Returning the following week, lawmakers again failed to reach a majority for any tax plan including various versions of the income tax, sales tax expansion or increase or an increase/expansion of business taxes.
Thursday, July 12, saw a last ditch effort to pass an income tax in the Senate fall through, as hundreds of angry anti-tax protesters swarmed the capitol. Later that night, the House and Senate agreed on an appropriations bill (SB 2000 Henry, et. al./HB 2038 Kisber, et. al.), which restored a number of budget “triggers” which were omitted from the “temporary” legislation.
The appropriations bill basically spends all the tobacco settlement money to make up budgetary shortfalls and restored education funds and some other recurring programs on a one-time basis, ensuring that the state’s revenue problems will only deepen.
The tobacco control and health care provider communities remain deeply disappointed that the intended purpose of the tobacco settlement–deferring state healthcare expenses and prevention and cessation programs were not funded. Nor was a $15 million item for consolidated school health project, which had been strongly supported by TNA.
If the Governor chooses to veto the appropriations bill, the General Assembly will return on August 7 for an override session. The Governor also has the option of calling a special session in the fall. Whatever the outcome, TNA will continue to support broad-based, comprehensive tax reform as a means of achieving the above objectives as mandated by TNA’s 1998 House of Delegates.
Governmental Tort Liability Limits Increased
After months of struggle, a compromise was struck between counties, municipalities and government hospitals and the trial lawyers to increase the tort liability limits for government entities (Public Chapter 424). The new limits, which approximately double the current amounts are $250,000 for bodily injury or death for one person and a $600,000 per occurrence cap for all persons injured.
It further creates a Catastrophic Injuries Fund Commission consisting of legislators, state officials, representatives of government entities and trial lawyers to look at creating a catastrophic fund pool for individuals with injury-related costs exceeding the new dollar limits. The Commission is further empowered to recommend further legislative changes on related issues.
Finally, a small, one-time inflationary adjustment will be implemented in 2007 if no catastrophic pool arrangement is enacted.
In addition, emergency medical technicians were protected from individual lawsuits arising from negligence by being excluded from the statutory list of “health care practitioners.” However, M.D.s and nurses remain listed as health care pratitioners and therefore remain individually liable for malpractice lawsuits (Public Chapter 1013).
TNA has determined through research that professional liability coverage for nurses varies widely, depending upon the employer. Some hospitals require personal malpractice coverage, some purchase it for their employees, and some employers pay for defense costs for nurse employees who have no individual coverage. TNA strongly cautions members to carry their own professional liability coverage that offers protection on and off the job, which can be obtained for a very reasonable fee through TNA.
Licensure for Dialysis Clinics becomes Reality
The bill to license dialysis clinics was resurrected in the Senate General Welfare Committee on June 18 and has been signed by the Governor (SB1662), but has not been assigned a public chapter number as we go to press.
The bill was amended for licensure to begin July 1, 2002 rather than July 1, 2001. Additionally, any rules promulgated after July 1, 2001 and before January 1, 2004 will not be implemented until January 1, 2004. The amendment requires the Department of Health to file a notice of proposed rulemaking with the House Health Committee and the Senate General Welfare Committee 30 days prior to filing with the Secretary of State. The Department is also required to present the substance of the rules before the committees prior to the hearing by the Government Operations Committees. Watch the “Filed Bills” section of the legislative website for the public chapter number.
Board of Nursing Increases Fees
The Board of Nursing at their June meeting approved fee increases for both RNs and LPNs in all categories. The Board is required by law to be self sufficient and has recently been operating in the red. The fees will increase when the rules are approved by the Attorney General, which will probably be six months or more at the earliest. Increases:
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Online Licensure Renewal
September 1 is the target date for nurses to have the option to renew their licenses on the Internet. Renewal notices will be mailed and you will still be able to renew by mail, but the Board of Nursing is encouraging nurses to take advantage of the available services via the web for faster response and verification of renewal. Go to www.tennesseeanytime.org and you will see Tennessee’s eGovernment Services. Click on See All Online Services, then under the heading For Businesses scroll down to Healthcare License Renewals and enter your email address for notification of when you can renew online.
