This week was the calm before the storm as the legislature was in recess to get organized for the upcoming special session, which would be followed immediately by the regular session. The special session is expected to kick off on Monday, January 27. Governor Lee issued the call last Friday, outlining a session that would address his Education Savings Account proposal, disaster relief, and setting up structures and programs in Tennessee to prepare the state to assist in President Trump’s immigration enforcement initiatives.

Five bills were filed this week by the two majority leaders to accomplish these goals and fund the special session and its initiatives. It is standard practice for legislative initiatives from the governor’s administration to be sponsored by the House and Senate majority leaders, William Lamberth and Jack Johnson, respecitvely. Other members can file legislation, but as of press time of this newsletter, no other bills had been filed for the special session. The bills for the special session are available on the legislature’s website under a section for the First Extraordinary Session of the 114th General Assembly.

The bill to enact the Education Savings Account or voucher proposal (SB6001/HB6004) is slightly changed from HB1/SB1 which had been filed immediately after the election in November, but closely mirrors the previously filed bill. Education stakeholders and county associations spent much of yesterday scrutinizing the changes. 

Disaster Relief Funding for East Tennessee Communities

Related to disaster relief, SB 6003/HB6003 would create two funds – a Hurricane Helene Interest Payment Fund and the Governor’s Response and Recovery Fund. The interest fund is intended to be used to pay interest costs of local governments who have to borrow money for recovery efforts while waiting for federal disaster reimbursement from FEMA. Those funds can cover three years of interest costs on loans up to a max of 5% interest. The response and recovery fund would be administered by TEMA and used to assist with agricultural recovery efforts, unemployment assistance and business recovery expenses related to an emergency. This fund is not limited to Hurricane Helene response and is intended to remain in place to assist with future disaster recovery efforts.

In addition, SB 6004/HB6002 makes changes related to unemployment assistance for individuals affected by a declared disaster and authorizes TEMA to assist local governments with recovery efforts on public property upon request. 

Immigration Focuses as Part of the Upcoming Special Session

Governor Lee’s immigration proposal (SB6002/HB6001) would create a centralized immigration enforcement division within the Department of Safety. It authorizes the Commissioner of Safety to enter into an agreement with the U.S. Attorney General regarding immigration enforcement. The bill also makes the current state prohibition on enacting sanctuary policies for illegal immigrants into a Class E felony and directs the attorney general to take action to remove any official who violates the law from office. The legislation also includes provisions to set up grants to incentivize local governments to enter into agreements with the federal government for immigration enforcement. Grants could be used to fund training, operational expenses, and other resource needs related to immigration enforcement; purchases of equipment; and to fund other immigration enforcement programs and activities as approved by the new state Chief Immigration Enforcement Officer. The bill makes additional changes related to the issuance of state I.D.s. 

The remaining piece of legislation (SB6005/HB6005) would appropriate funds for the different initiative, the cost of the special session, and a few other matters. The proposed funding includes:

• $225.8 million (recurring) and $198.4 million (nonrecurring) for funding the ESA bill;
• $210 million for the Interest Payment and Response and Recovery funds;
• $240 million to TEMA for disaster recovery efforts;
• $20 million for a grant to Carter County for the reconstruction of Hampton High School;
• $6.2 million in funding for Sevier County schools;
• $17 million for incentive payments for high performing school districts; and
• A sum sufficient to cover costs related to the special session itself.