Tennessee
Preservation Trust Legislative Report
Compiled
and written by Steward Clifton and Jennifer Scruggs
April 8, 2004
2004 Tennessee Preservation Trust
Legislative Report
Compiled and written by
Stewart Clifton and Jennifer Scruggs
April 8, 2004
To communicate regarding this report please contact:
Stewart Clifton
2115 Bernard Ave.
Nashville TN 37212
Phone: 615-305-2946
E-mail: stewartclifton@comcast.net
Bills are listed in ascending order by Senate number, with resolutions following. You can review or copy a bill from the free state legislative web page, if you know the bill number. I have included bill numbers in this update. You can also discover the status of the bill through the website, which is regularly updated as to bill status. Visit www.legislature.state.tn.us. This report is updated through today.
These pages contain selected preservation related bills introduced in this session (which began in January, 2003) of the General Assembly. I have removed some mentioned earlier if they have seen no action in 2004. I have also added amendment language when appropriate.
One bill not dealt with here is the appropriations bill. Generally all departments and most funds received about a 9% reduction in state revenue last year. Some received much more in reductions. It is my understanding that historic preservation related activities did not receive more than their share of reductions. This year Governor Bredesen has requested and received proposed reductions of 5% in state funding from all or at least most departments and commissions.
The legislature is clearly getting close to ending, although the budget is still ahead. Observers are thinking maybe mid May, although most committees other than Finance will be closed weeks before that date.
Stewart Clifton
Selected Bills dealing with Historic Preservation
Collection of property taxes deferred for renovations. SB0017/HB0226
Permits counties or municipalities by local governing body resolution to defer collection of portion of property taxes attributable to increase in value due to renovation of residences older than 50 years. Provides for payment of deferred taxes upon expiration of deferral period, sale of property, or conversion to non-residential use. Intended to promote renovation of older residential neighborhoods. (S: McNally; H: Hackworth)
Senate Finance Tax Subcommittee,
House State & Local Government Committee amendment rewrites the
bill. See
previous updates or state legislative website for full text of
amendment
Designates the bill as "Older Neighborhood Preservation Act."
Provides for 2/3 of the legislative bodies of a municipality or county
to adopt
a resolution for creating grant program for revitalization of
substandard
residential rental property and residential real property located in an
older
residential neighborhood. Establishes certain conditions for such grant
programs.
Senate Status: S. 4/08/2004 passed with amendment.
House Status: Set for H. floor 4/12/2004.
Bed & Breakfast establishments and alcoholic beverages. SB0696/HB0569
Allows bed and breakfast establishments in Davidson County (Shelby County already covered in existing law) with at least two rooms for sleeping accommodations, a seating capacity of 25 people at a table, and a business conference center to sell alcoholic beverages. I suspect this bill if passed could prove troublesome in Davidson County, which, unlike Shelby, allows such establishments in residential areas under certain conditions. It is possible that if this bill passes it may become much harder to gather community support for B&B’s, which in Davidson county have proven to be a way to preserve historic homes. No activity in 2004 on this bill. (S. Henry; H. Pruitt)
Senate Status: Senate State & Local 04/01/2003 recommended.
House Status: Referred to House Local Government Subcommittee.
Main Street Act of 2003. SB1182/HB1204
(See the House Joint Resolution on this subject which is mentioned later in this update.)
Creates Tennessee Main Street Program within the department of economic and community development to help revitalize small cities. Defines "small cities" as municipalities with a population of less than 100,000 according to the 2000 federal census. Allows the department to solicit private contributions for state and local operations of the program. (S: Ketron; H: DuBois)
Here is some language from the bill which shows why I thought it might be of interest.
SECTION 3. The general assembly finds and declares the following: (1) The continued economic vitality of business districts in Tennessee's smaller cities is essential to community preservation, social cohesion, and economic growth; (2) In recent years, these central business districts have experienced economic difficulties due to shifting population bases, changes in the marketplace, and greater competition from suburban shopping malls;
(a) There is hereby created within the department of economic and community development a Tennessee Main Street Program that shall operate according to a plan developed by the department to include among other representatives:
(1) Organizations representing merchants and governments of small cities, historic preservation interests, financial institutions, and economic development groups;
(2) The chair of the state historical commission.
Fiscal Note: Increase state expenditures - exceeds $100000.
Senate Status: Taken off notice in Senate Commerce, Labor & Agriculture.
House Status: Failed in House State Government Subcommittee 04/06/2004.
.
Highway signs in Historic Jonesborough. SB2250/HB2375
Directs the department of transportation to erect and maintain signs reading "Historic Jonesborough, Tennessee's Oldest Town," on Interstate Highway 26 at exits 38 eastbound and 18 westbound. (S: Crowe; H: Patton)
Senate Status: Taken off notice in S.
Transportation.
House Status: Taken off notice in H. Public Transportation &
Highways Subcommittee.
Neighborhood Preservation Act. SB2382/HB2166
Enacts the "Neighborhood Preservation Act" for Davidson County which
establishes a cause of action whereby the owner of residential real
estate
could sue the owner of neighboring residential rental property for a
diminution
of the residential owner's property value caused by the rental property
owner's
failure to maintain the rental property at community standards.
Authorizes a
judge to order the sale of real estate in the case of a rental property
owner
who is sued and unable to pay any judgment within 90 days. (S: Haynes;
H:
Turner M.)
Fiscal Note: Increase local govt. expenditures-not significant.
Senate Status: Referred to S. Judiciary.
House Status: Set for H. Civil Practice Subcommittee 4/14/2004.
Transfer of development rights. SB
2446/HB3061
Deletes language relating to the transfer of development rights in
historic
zones. (S: Norris; H: Sargent)
Senate Status: Senate passed 04/01/2004.
House Status: Set for House State & Local Government Committee 04/13/2004.
Here is the analysis I requested and received from Sam Edwards. Sam is general counsel for Greater Nashville Regional Council and a good advocate for planning and historic preservation. He drafted the bill. According to Sam this bill is pro historic preservation but also a housekeeping bill in light of the following explanation.
IT DELETES THE PROVISIONS FOR TRANSFER OF DEVELOPMENT RIGHTS FROM THE HISTORIC ZONING SECTION OF THE TENNESSEE CODE.
THE TRANSFER OF DEVELOPMENT RIGHTS PROVISIONS FOR HISTORIC ZONING ARE MORE RESTRICTIVE THAN THOSE PASSED BY THE GENERAL ASSEMBLY IN 2001 (PC 265).
PC 265 ALLOWS CITIES AND COUNTIES TO ADOPT TRANSFER OF DEVELOPMENT RIGHTS AS PART OF THEIR REGULAR ZONING PROVISIONS AND ALSO INCLUDES HISTORICAL AREAS WITHIN THEIR PROTECTED AREAS ( AREAS THAT MAY TRANSFER ALL OR PART OF THEIR DEDVELOPMENT POTENTIAL, THUS HELPING TO PROTECT AND PRESERVE THE AREA WHILE BENEFITING THE PROPERTY BY EITHER A TAX ADVANTAGE OR MONETARY BENEFITS).
PC 265 ALSO BROADENS THE SCOPE WHERE HISTORIC TRANSFER OF DEVELOPMENT RIGHTS CAN OCCUR. THE CURRENT TRANS FER OF DEVELOPMENT RIGHTS PROVISIONS IN THE HISTORIC ZONING SECTION OF THE CODE ALLOW THE TRANSFER ONLY IN COUNTIES WITH A METROPOLITIAN GOVERNMENT. PC 265 ALLOWS SUCH PROVISION IN ANY CITY OR COUNTY IN THE STATE OF TENNESSEE THAT HAS ZONING.
THOSE WISHING TO PROTECT HISTORIC AREAS GAIN BY HAVING TRANSFER OF DEVELOPMENT RIGHTS REMOVED FROM THE HISTORIC ZONING SECTION OF THE CODE BY ENJOYING THE LARGER BENEFITS OF THE PROVISIONS OF PC 265.
Definition of “special historic district” for
serving
alcohol SB2694/HB2860
Defines "special historic district" for the authorization of serving
and consumption of wine; authorizes service and consumption of
alcoholic
beverages at South Main Historic Arts District. (S: Cohen; H: Cooper
B.)
Senate Status: S. passed 03/18/2004.
House Status: Set for H. floor 04/12/2004.
Privilege Tax increase SB2794/HB2762
Alcoholic Beverage Commission - Increases privilege tax for licenses;
allows
commission to retain money collected from licensure fees instead of
such money
being deposited with state treasurer. This bill would impact
certain historic
locations including Historic Performing Arts Centers, Historic Mansion
House
Sites and Historic Interpretive Centers. House State & Local
Government
Committee amendment 1 rewrites the bill. Adds a one-time,
non-refundable fee of
$300 to applications for winery licenses, retail licenses, wholesale
licenses
or on-premise consumption licenses. Increases, by amounts of at least
$50 more
than that stated in original bill, licensure fees for each category.
Increases
specific privilege taxes for those who, after paying application fee
and
submitting the necessary application, have been approved for on-premise
consumption licenses, except for premier type tourist resorts, for
which the
fee is $25 less than that stated in the original bill. or in the case
of
restaurants, for which the privilege taxes have been lowered according
to
seating capacity and time of licensing. Also, designates hotel
privilege taxes
according to room capacity and time of licensing. Adds privilege taxes
for
sports facilities, theaters, commercial airlines, paddlesteam boats,
and
passenger trains. Allows TN Alcoholic Beverage Commission to retain
money
collected from licensure fees rather than depositing funds with state
treasurer. (S: Henry; H: Head)
Senate Status: Set for S. State & Local Government Committee 4/13/2004.
House Status: Set for H. Finance Budget Subcommittee 4/14/2004.
Historic preservation entities exempt from
excise tax SB3189/HB3301
Exempts from excise tax any corporation or LLC organized for the
purpose of
preserving or rehabilitating a property on the National Register of
Historic
Places, and that is at least 51% owned by a non-profit corporation that
uses
the historic property in its exempt activity and has received historic
certification from the national park service. Exempts from sales tax
any
tangible personal property or taxable services sold or donated to such
an
entity. (S: Atchley; H: Armstrong)
Senate Status: S. passed 4/08/2004.
House Status: Set for H. Finance Budget Subcommittee 4/14/2004.
Tennessee Charitable Gaming Implementation Law. SB 3212/HB 3250
Sets forth provisions under which a 501(c)(3) organization can host fundraising events. (S: Kyle; H: Tindell)
Senate Status: S. 4/05/2004 adopted conference committee report.
House Status: H. 4/05/2004 adopted conference committee report.
Other Status: Sent to governor 4/05/2004.
http://www.state.tn.us/sos/charity.htm
Listed above is the link to the Secretary of State's website for charitable gaming events. More details are available there.
The bill authorizing charitable gaming has now passed the House and Senate and is awaiting the Governor's signature. Observers believe he will sign it soon.
The bill is not yet published in any comprehensible form which includes all the approved amendments. I will try to get it to you when it is available
.
For now we know that:
*Applications will be due by noon April 20, 2004 (even though they are not yet available)
*Applicants must be 501(c)(3)s which have been in existence for at least 5 years.
*Allows cakewalks but prohibits video lottery and games of chance (including bingo and casino night type activities)
*Event must be managed by officers of the 501(c)(3) -- not outside operators
*Application fee is to be set by Secretary of State but with a $500 cap
*Authorizes Secretary of state to conduct background checks to be paid for by the applying organization
And several other provisions/requirements.
Recordation tax distribution. SB 3225/HB 3193
Revises the recordation tax distribution in relation to the wetland, local parks and state lands acquisition fund and the agricultural resources conservation fund. (S: Miller J.; H: Garrett) House Conservation & Wildlife Subcommittee amendment 1 rewrites the bill by deleting the effective date section and by substituting instead the effective date of July 1, 2005.
Fiscal Note: Increase state expenditures - $8250 one-time.
Senate Status: Set for S. Finance, Ways & Means Committee 4/13/2004.
House Status: H. Environment Subcommittee deferred to last calendar.
I have included this bill because of the following section: The commissioner of environment and conservation shall expend the funds which are deposited in the state lands acquisition fund only for the acquisition of land for any area designated as an historic place as evidenced by its inclusion on the National Register of Historic Places, state historic areas or sites, state parks, state forests, state natural areas, boundary areas along state scenic rivers, the state trails system, and for the acquisition of easements to protect any of the foregoing state areas. Such funds may also be used for trail development in the foregoing areas. Such funds may also be used for the redevelopment, renovation and restoration of historic theaters owned by a governmental entity or a not-for-profit corporation or its controlled affiliate and listed on the National Register of Historic Places.
Tennessee Main Street Program re-established. HJR 835
Re-establishes within dept. of economic and community development to assist downtown and central business districts in economic revitalization and development efforts. (H: Rinks)
Senate Status: Set for Senate State & Local Government Committee 4/13/2004.
House Status: H. 4/01/2004 adopted with the following amendment:
BE IT FURTHER RESOLVED, that no expenditure of public funds for such Main Street Program shall be made in violation of the provisions of Title VI of the Civil Rights Act of 1964, as codified in 42 United States Code 2000(d).