Sitemason, Inc.



2010 Public Chapters

Chapter # Topic Amends Effective Page

638 Wills – Federal Tax Gap 32-11-113 3/17/10 and 1/1/11 20

639 Trusts – Gift Restrictions Removal 35-10-206 3/17/10 20

644 Court Clerks – Accounting 18-1-1___ (new) 3/17/10 14

658 Trusts – Community Property 35-17-101 (new) 7/1/10 21

660 Property Taxes – Partial Payment 6-56-1__ (new) 3/29/10 6

687 Insurance – Small Group Providers 56-7-2222 3/31/10 13

693 Banking – Interest – Energy Corps. 7-39-305 3/31/10 4

697 Securities – Regulation Title 48, Ch. 2 3/31/10 6

711 Property – Redemption for Taxes 67-5-2704 4/5/10 6

723 Banking – Interest – Convention Ctr 7-89-112 4/9/10 7

725 Trust – Comprehensive Update Title 35 7/1/10 21

728 Local Govt. Investment Pool 9-4-7__(new) 4/9/10 15

741 Tax Clearance Documents Title 48 7/1/10 7

742 Certificate of Existence /Authorization Title 48 4/9/10 7

743 Business Names Title 48 4/9/10 8

749 Contractor Liens 66-11-150 (new) 7/1/10 8

756 Unclaimed Property- Boats 66-29-132 7/1/10 8

761 Garnishments – Improper Service 26-2-203 7/1/10 13

779 Consumer Protection –File Sharing 47-18-103 4/16/10 12

780 Insurance - Admission Requirements 56-2-113 4/16/10 14

787 Garnishments – Exemption 26-2-103 7/1/10 13

791 Unclaimed Property Title 66, Ch. 29 4/19/10 15

800 Municipal Development Title 7, Ch. 53 4/19/10 15

817 Uniform Guardianship Act Title 34, Ch. 14 (new) 1/1/11 22

827 Service – Detainer Warrants 29-18-115 7/1/10 14

829 Securities Regulation Title 48, Ch. 2 4/23/10 8

831 Guardianship – Brokerage Firms 34-1-109 4/27/10 22

834 Foreclosure Notice 35-5-117 (new) 7/1/10 4

874 Payroll Cards 50-2-103 5/3/10 9

875 Contractors’ Retainage Accounts 66-34-104 5/3/10 9

898 Adult Abuse 71-6-124 (new) 5/10/10 12

908 Unclean Hands Title 16, Ch. 1, Pt. 2 (new) 5/12/10 9

923 Vacant Property – Cleanup Liens Title 5, Ch. 1 7/1/10 14

940 Banking – Interest Rates Bonds 7-53-312 5/26/10 4

943 Banking – Interest Rates – Educ. Bonds 49-3-1207 7/1/12 5

958 Municipal Improvements – Bonds 7-32-134 5/26/10 16

7-33-121

963 Appraisal Management Company Title 62, Ch. 39 (new) 7/1/11 10

969 Court Clerks Funds Investment 18-5-105 5/26/10 16

982 Public Funds - Interest Rates Title 9, Ch. 21 5/27/10 16

984 Unclaimed and Abandoned Motor 55-16-105 5/31/10 10

Vehicles

1001 Deficiency Judgments 35-5-117 (new) 9/1/10 5

1007 Personal Property Taxes 67-5-1805 6/3/10 10

1009 Guns in Bars and Banks Title 39, Ch. 17 6/4/10 11

1017 Unemployment Benefits – 50-7-301 7/1/11 17

Direct Deposits

1053 Register Fees – Internet Filing 8-21-1001 6/21/10 17

1055 Home Improvement Contractors Titles 38, 47, 62 7/1/10 11

1095 Corporate Campaign Contributions TCA, Title 2, Chs. 10, 19 6/23/2010 12

1097 Financial Literacy Program Title 49, Ch. 7 (new) 6/23/10 17

1101 Records Archive Fee 10-7-408 7/1/10 18

6-54-136

1108 Appropriations – State Budget N/A 7/1/10 18

1109 Bond Authorization N/A 6/25/10 18

1110 Budget Inflator TCA, 9-4-5203 6/25/10 18

1114 Flood Victims – Tax Refunds TCA, Title 67, Ch. 6 6/29/10 18

1129 Small Business Advocate Title 8, Ch. 4 (new) 7/1/10 19

1134 Technical Corrections TCA, Title 67 7/1/10 19

1142 TNInvestco Title 4, Ch. 28 6/30/10 20

BANKING

Public Chapter 693 – Banking – Interest – Energy Corporations

This act authorizes an energy acquisition company to issue bonds on or before June 30, 2012, at a rate which is seven percentage points above the average prime loan rate. The act revises the definition of “formula rate” under TCA, 47-14-102, to mean seven percentage points over the average prime loan rate instead of four percentage points over the prime loan rate. The definitional change applies only to the obligations of these specific energy acquisition corporations.

Amends: TCA, 7-39-305 (indirectly amends TCA, 47-14-102)

Effective: March 31, 2010

Public Chapter 834 – Foreclosure – Notice

This act imposes a new 60-day pre-foreclosure notice on all lenders. It requires the debtor to receive a “notice of right to foreclose” at least 60 days prior to the initial publication of a foreclosure. The notice may be sent by regular mail and the statute requires a specific format. The notice must include the name, address, and contact person of the lender, as well as a reference to the website of the Department of Housing and Urban Development, and may include any federal modification programs that are available.

Amends: TCA 35-17-117 (new)

Effective: July 1, 2010

Public Chapter 940 – Interest Rates - Industrial Development

This act provides that for any industrial development corporation funding a mixed use development, including commercial and residential uses, of more than 500 acres located in a county where, as of 2008, at least 31.5% of such county’s population between the ages of 5 to 17 years is in poverty as determined by the U.S. Census Bureau, then the cost of all roads, streets, utilities and public improvements where located in or adjacent to or directly serving the mixed use development shall be cost of the industrial development project for such purposes.

Interest Rate Change. The act authorizes bonds issued to fund such projects to be issued at a rate of seven percentage points above the average prime rate using the formula rate of Title 47, Ch. 14, instead of the rate permitted by such chapter of 4% above the average prime rate. The act shall apply to any bonds issued on or before June 30, 2012.

Amends: TCA, 7-53-312

Effective: May 26, 2010

Public Chapter 943 – Interest Rates – Education Bonds

This act permits the issuance of bonds by the Tennessee State School Bond Authority with respect to which a local government is elected to have the federal Build America bonds program apply to such bond at an interest rate which is in excess of the formula rate of 4% above prime (TCA, 47-14-103). The maximum nominal interest rate of such bonds will be determined by reducing the interest rate payable by the authority with respect to such bonds by the amount of payments from the U.S. Treasury that the authority expected at the time of the issuance of such bonds. The act applies to bonds issued on or before June 30, 2012.

Amends: TCA, 49-3-1207

Effective: July 1, 2012

Public Chapter 1001 – Deficiency Judgments

This act codifies the essential elements of the former case law regarding deficiency judgments. The bill provides the following procedure when seeking a deficiency judgment:

1. The purpose of a deficiency judgment is to ensure that an indebtedness is satisfied fully while at the same time preventing an unfair windfall to the lender.

2. There is a presumption that the sale price at a foreclosure sale is the fair market value of the property being sold.

3. The burden is on the debtor to prove by a preponderance of the evidence that the sale price at the trustee’s or foreclosure sale is materially less than the property’s fair market value. (Current case law provides that the standard to overcome the presumption is “gross inadequacy” of price or “shock the conscience of the court”.)

4. Material is a legal term used by courts in many different circumstances. In this context, what constitutes material would be up to the court to decide, but should apply only to the difference in fair market value of the property. Material should not mean the impact on the financial statements of the creditor or debtor nor should it apply in the context of a securities filing such as a 10K or 10Q.

5. The legislation bases the valuation on fair market value of the property at the time of the sale. If the presumption is overcome, the court would then be required to determine what the fair market value was. In any case, however, fair market value should mean the value of the property at the time of the foreclosure sale and should also take into consideration the economic conditions of the market that may prevent or limit the salability of the property at the present time. Fair market value should not take into consideration any future value upon completion of a partially completed property or any future value of a property after it undergoes substantial rehabilitation or repair necessary to make it more attractive to the market.

The act also establishes a two-year statute of limitations from the time of a foreclosure in which to seek a deficiency judgment.

Amends: TCA, 35-5-117 (new section)

Effective: September 1, 2010

BUSINESS REGULATION

Public Chapter 660 – Municipal Property Taxes – Partial Payments

This act authorizes municipalities that collect their own property taxes, upon adoption of an appropriate ordinance, to accept partial payments of property taxes. The municipality must notify the state comptroller’s office and demonstrate the capability of accepting partial payments. The municipality may also elect to accept taxes paid by electronic funds transfer, including, but not limited to, preauthorized payments, wire transfer, or ACH credits. Provided, however, if the full amount of taxes due is not paid by the delinquency date for such taxes, the entire property will be subject to the tax lien and enforcement by tax sale.

Amends: TCA, Title 6, Ch. 56, Part 1

Effective: March 29, 2010

Public Chapter 697 – Securities Regulation

This act makes several mostly technical changes to Tennessee’s securities act. The act authorizes the commissioner to participate in certain national securities registration and depository systems. It also clarifies the commissioner’s authority to institute a revocation or suspension proceeding against a securities license within one year of obtaining material facts regarding a violation.

Amends: TCA, Title 48, Ch. 2

Effective: March 31, 2010

Public Chapter 711 - Redemption for Taxes

This act includes as “lawful charges” by a purchaser of property sold for taxes to include reasonable payments for maintenance and insurance for purposes of determining the amount to be paid to redeem the property.

Amends: TCA, 67-5-2704

Effective: April 5, 2010

Public Chapter 723 – Interest Rates – Convention Authorities

This act authorizes a convention center authority (Nashville Convention Center) to issue Build America bonds at a rate nominally above the formula rate (4 over prime), authorized by Tennessee law. This bill indirectly amends the formula rate, TCA, 47-14-103, by stating that the nominal rate issued on the bonds when applying the formula rate would be discounted by the amount of payments expected from the Treasury Department in connection with the Build America bond program. This applies to any bonds issued by the Nashville Convention authority prior to June 30, 2012.

Amends: TCA, 7-89-112 (indirectly amends 47-14-103)

Effective: April 9, 2010

Public Chapter 741 – Tax Clearance Documents

This act establishes a new procedure for the commissioner of revenue to issue either a confirmation of good standing or a tax clearance for termination or withdrawal to the secretary of state. These tax clearance documents will be required for the secretary of state to use when filing either documents reinstating a business organization or terminating a business organization. The documents apply to for-profit corporations, non-profit corporations, LLCs, and LLPs.

Amends: TCA, Title 48

Effective: July 1, 2010

Public Chapter 742 – Certificate of Existence or Authorization

This act authorizes anyone to apply to the secretary of state to furnish a certificate of existence for a domestic corporation, non-profit corporation, LLC, LLP, or LP. It also authorizes the secretary of state to issue a certificate of authorization for a foreign corporation (non-profit corporation, LLC, LLP, or LP). The act specifies certain requirements which must be met including use of the confirmation of good standing or tax clearance advice issued by the Revenue Department authorized in Public Chapter 741.

Amends: TCA, Title 48

Effective: April 9, 2010

Public Chapter 743 – Distinguishable Names

This act revises the provisions used by the secretary of state regarding distinguishable names for domestic and foreign corporations, domestic and foreign LLCs, domestic and foreign LLPs, limited partnerships, and foreign limited partnerships. Generally, the name of an entity that is authorized to transact business in the state or is applying to transact business must be distinguishable upon the records of the secretary of state from the name of every other entity, whether true, assumed, reserved or registered. The act establishes specific criteria under which the secretary of state may allow the use of a non-distinguishable name. These conditions include: 1) person holding the right to use previously filed name consents to the use of the name; and 2) an applicant delivers a certified copy of a final judgment of a court establishing the applicant’s right to use the name.

Amends: TCA, Title 48

Effective: April 9, 2010

Public Chapter 749 – Contractor Liens

This act adds an additional limitation on the ability of a contractor of residential property, including home improvements, to file a lien on residential property if the person is not a licensed contractor and the work is performed in a jurisdiction that requires licensing.

Amends: TCA, 66-11-150 (new)

Effective: July 1, 2010 (for construction after that date)

Public Chapter 756 – Unclaimed Property - Boats

This act exempts boats from the state unclaimed property statute provisions. Instead, disposition of unclaimed boats would be governed by boating regulations issued by the Tennessee Wildlife Resources Agency.

Amends: TCA, 66-29-132

Effective: July 1, 2010

Public Chapter 829 – Securities Regulation

This act removes the exemption from registration as a security for any “promissory notes or bankers or trade acceptances with a denomination of at least $50,000 that are payable on demand or mature or are renewed for not more than nine months.” The act also extends the authority for the commissioner of Commerce and Insurance to deny, suspend, or revoke any registration under the act for certain violations.

Amends: TCA, Title 48, Ch. 2

Effective: April 23, 2010

Public Chapter 874 – Payroll Cards

This act authorizes employers to pay employees using prepaid debit cards (payroll cards). The act requires that the employee receives written disclosure of any applicable fees and use of the card account. It also requires that the employer “shall insure that each employee shall have the ability to make at least one withdrawal or transfer from the prepaid debit card per pay period without cost to the employee for any amount contained on the card.”

Amends: TCA, 50-2-103

Effective: May 3, 2010

Public Chapter 875 – Contractor Retainage Accounts

This act increases the penalty for failure of a contractor or other party required to hold retainage funds under a construction contract to deposit such funds into an escrow account. The act imposes a penalty of $300 per day for each day that such retainage funds are not deposited into an escrow account and makes it a Class A misdemeanor to fail to deposit the funds into an escrow account within seven days of receipt of written notice from an affected party to deposit such funds.

Amends: TCA, 66-34-104

Effective: May 3, 2010

Public Chapter 908 – Unclean Hands

This act codifies and gives statutory effect to Tennessee’s equitable and common law defense of unclean hands with respect to commercial transactions. It declares that fraud, deceit, intentional misrepresentation, and other unconscionable or inequitable conduct, as well as the schemes and illicit activities promoted thereby are contrary to the public policy of this state and have long been condemned by the equitable and common law defenses of unclean hands. The act is in aid of the development of the equitable and common law defense of unclean hands and not an abrogation or derogation of such equitable and common law defenses which shall remain in full force and effect and shall develop concurrent with the act. It is also the intent and purpose of the act to insure that Tennessee’s equitable and common law defense can be given uniform effect regardless of the state in which a legal proceeding may be initiated or is pending so as to protect victims of fraud, deceit, intentional misrepresentation, and other unconscionable or inequitable schemes and conduct. The primary purpose of the act is to enable state and federal courts sitting in other states to apply Tennessee’s defense of unclean hands in cases arising out of commercial transactions.

Amends: TCA, Title 16, Ch. 1 (new Part 2)

Effective: May 12, 2010

Public Chapter 963 – Appraisal Management Company - Registration

This act adopts the Appraisal Management Company Registration and Regulation Act. The act requires any appraisal management company to be registered with the state appraisers’ board and to meet certain regulatory requirements. It prohibits any person from engaging in the business of an appraisal management company unless they are registered.

Exemptions. The act contains several exemptions, including exemptions for: 1) appraisals provided by or through a bank or a bank subsidiary provided that they file a notice with the commission which contains certain basic information about their business; 2) appraisers who perform work at the direction of other appraisers; 3) agencies of state or local governments making appraisals for tax purposes; 4) lawyers or court-appointed personal representatives or trustees who order an appraisal for a bona fide client; and 5) accountants.

Amends: TCA, Title 62, Ch. 39 (new part)

Effective: July 1, 2011

Public Chapter 984 – Unclaimed and Abandoned Motor Vehicles

This act changes the time in which a law enforcement agency or a garage keeper has in which to notify any owner or lienholder that the abandoned, immobile, or unattended motor vehicle has been taken into custody. Current law requires notice within 15 days. The act requires notice within three business days after receiving verification of ownership from the Tennessee Information Enforcement System.

Amends: TCA, Section 55-16-105

Effective: May 31, 2010

Public Chapter 1007 – Personal Property Taxes

This act establishes a mechanism to determine a proportional tax on personal property that may be attributed to a specific secured party. The secured party’s tax liability may include up to four years worth of taxes that have not been paid by the owner of the property. Provided, however, the secured party does not owe any back taxes if it no longer has a security interest in the property. The act also requires a secured party selling tangible personal property which is repossessed pursuant to Article 9 of the UCC to withhold from the proceeds of the sale such allocated amount as is determined by the assessment methodology.

Amends: TCA, 67-5-1805

Effective: June 3, 2010

Public Chapter 1009 – Guns in Bars, Guns in Banks

This act controversially revises the statute permitting persons with a handgun carry permit to carry guns in bars, restaurants, or any other building unless it is specifically posted by the owner of the building that the carrying of handguns is prohibited. The act also revises the section providing the ability of a property owner to post notice prohibiting the carrying of guns on the owner’s premises. The notice may be made either by quoting the following specific language, “as authorized by TCA, Section 39-17-1359, possession of a weapon on posted property or in a posted building is prohibited and is a criminal offense;” or, language substantially similar to the above. As an alternative, the owner may post an international circle and slash symbolizing the prohibition of the item within the circle. Notice must be posted in prominent locations including all entrances primarily used by persons entering the property, building, or portion of the property where weapon possession is prohibited. The act clarifies the continuing liability of the property owner or manager for injuries arising on their property - “Nothing in this section shall be construed to alter, reduce, or eliminate any civil or criminal liability that a property owner or manager may have for injuries arising on their property.”

Amends: TCA, Title 39, Ch. 17

Effective: June 4, 2010

Public Chapter 1055 – Home Improvement Contractors

This act adds new requirements and significant penalties on home improvement contractors. At a minimum, it requires written contracts and disclosures to homeowners. It subjects a violator to criminal penalties as theft for violation of the act, civil penalties under the Consumer Protection Act as unfair and deceptive acts including treble damages and revocation of the home improvement contractor’s license.

Amends: TCA, Titles 39, 47 and 62

Effective: July 1, 2010

Public Chapter 1095 – Corporate Campaign Contributions

This act reaffirms the prohibition on corporations making direct contributions to political campaigns. The act does recognize, consistent with a recent Supreme Court case, that corporations may make independent expenditures explicitly supporting or opposing a particular candidate or issue. However, the act declares a corporation which does direct support to be a “campaign committee” for purposes of Tennessee law, which would require the corporation to appoint a campaign committee treasurer and to report all campaign contributions and expenditures.

Amends: TCA, Title 2, Chs. 10 and 19

Effective: June 23, 2010

Consumer Protection

Public Chapter 779 – Files Sharing Programs

This act establishes a violation of the Consumer Protection Act by creating a “covered files sharing” program. It is a violation to install, offer to install, or make available a files sharing program onto a computer of another without being an authorized user, without providing a clear and conspicuous notice that files will be shared, without consent, or preventing reasonable efforts to disable, remove or to block the installation or execution of a covered files sharing program. A covered files sharing program means any computer program, application or software that enables the computer on which it is installed to designate files as available for searching and copying by one or more other computers, to transmit such designated files directly to one or more computers, or to request the transmission of such designated files from one or more other computers.

Violation of the Consumer Protection Act is a Class B misdemeanor and is subject to civil penalties, private cause of action, and treble damages.

Amends: TCA, 47-18-103 (new subsection)

Effective: April 16, 2010

Public Chapter 898 – Adult Protection

This act creates a new procedure authorizing a family member of an adult who may be the subject of abuse or exploitation to file a petition in court for an immediate ex parte order of protection against the respondent (alleged abuser). The court order may be issued after 15 days and shall be effective for not less than 120 days. The protection order includes preventing the respondent from committing any violation of the part against the adult or from misappropriating any monies, state or federal benefits, retirement funds, or any other personal or real property belonging to the adult.

Amends: TCA, 71-6-124 (new)

Effective: May 10, 2010

Garnishments/EXECUTIONS

Public Chapter 761 –– Improper Service

This act provides that a court may void a summons of a garnishee if it is served on an employee of the garnishee and such employee is also the judgment debtor. If the court voids the summons for this improper service, it shall not be effective as to the garnishee.

Amends: TCA, 26-2-203

Effective: July 1, 2010

Public Chapter 787 – Garnishment – Exemptions

This act increases the aggregate amount that a debtor can claim for personal property that is exempt from garnishment, or in bankruptcy, from $4,000 to $10,000.

Amends: TCA, 26-2-103

Effective: July 1, 2010

INSURANCE

Public Chapter 687 – Insurance – Small Group Providers

This act decreases from five years to three years the length of time a small employer must commit to purchase coverage in order to participate in a health group cooperative.

Amends: TCA, 56-7-2222

Effective: March 31, 2010

Public Chapter 780 – Insurance Company – Admission Requirements

This act permits the commissioner of insurance to waive the minimum three-year business requirement for a foreign insurance company seeking to do business in Tennessee.

Amends: TCA, 56-2-113

Effective: April 16, 2010

Property

Public Chapter 827 – Civil Warrants – Forcible Entry and Detainer

This act revises the process by which a sheriff may serve a warrant for possession property by force able entry and detainer. In addition to other methods permitted, the sheriff may obtain possession by personally serving a warrant on any of the defendants who have possession of the property. It reduces the time frame from 10 days to 6 days for the sheriff to post notice, if summons is not available on three tries within the initial six days. Also, the act removes the requirement that the renter must be at least 10 days past due or 10 days past the date for notice of termination before serving the detainer warrant.

Amends: TCA, Section 29-18-115

Effective: July 1, 2010

Public Chapter 923 – Vacant Property Liens

This act authorizes Shelby County to adopt a resolution permitting community organizations to enter into and clean up vacant or deteriorated properties in the county for the purpose of removing litter. The community organization would have a subsequent lien for the cleanup cost.

Amends: TCA, Title 5, Ch. 1

Effective: July 1, 2010

State and Local Government

Public Chapter 644 – Court Clerk – Accounting

This act requires clerks of a general sessions, circuit, or chancery court to provide, upon request, a debtor with a copy of a judgment entered by the court or by the agreement of the parties. The clerk shall also provide the debtor with a receipt for any amount paid by the debtor to the clerk and just in discharge of the judgment or the agreement.

Amends: TCA, Title 18, Ch. 1, Part 1

Effective: March 17, 2010

Public Chapter 728 – Local Government Investment Pool

This act requires any funds invested in the LGIP to be transmitted to the state treasurer electronically. It also requires any reports or other documents to also be transmitted to the treasurer electronically.

Amends: TCA, 9-4-7__ (new)

Effective: April 9, 2010

Public Chapter 791 – Unclaimed Property

This act authorizes the Treasurer to set a minimum dollar value for unclaimed property that requires the Treasurer to mail a specific notice to the beneficiary instead of requiring that all property with a minimum value of $50 be notified. It also permits the Treasurer to claim unclaimed property from any other state on behalf of any Tennessee state department or institution.

Amends: TCA, Title 66, Ch. 29

Effective: April 19, 2010

Public Chapter 800 – Municipal Development

This act expands the types of project a municipality may include in a central business improvement district. The act authorizes the municipal improvement district authority to pledge any revenues derived from any source except revenues derived from ad valorem property taxes.

This bill was enacted for the benefit of the city of Memphis. However, it may have application to other municipal central business districts.

Amends: TCA, Title 7, Ch. 53

Effective: April 19, 2010

Public Chapter 958 – Municipal Improvements – Bonds

This act authorizes the management of a condominium, horizontal property regime, timeshare, or vacation club to agree with a municipal government to pay an assessment by installments and makes such agreement binding upon owners of interest in the property represented by such management organization.

The act also revises the maximum interest rate cap under the formula rate for municipal improvement bonds or other obligations issued on or before June 30, 2012. For purposes of these bonds, the applicable formula rate will be interest of 7% rather than 4% above the average prime rate.

Amends: TCA, 7-32-134 and 7-33-121

Effective: May 26, 2010

Public Chapter 969 – Court Clerks Funds Investments

This act clarifies the authority of court clerks holding funds of minors or incompetents may invest the funds in the same manner as other court funds in banks, savings and loan associations, certain government investments, in the state bank collateral pool, or the local government investment pool.

Amends: TCA, Section 18-5-105

Effective: May 26, 2010

Public Chapter 982 – Public Funds – Interest Rates

This act revises several provisions regarding the state funding board. However, of note, it includes language authorizing an interest rate in excess of that provided in the formula rate (TCA, 47-14-103) for any bonds issued by the state funding board or bonds issued by local governments. The nominal rate on such bonds would be discounted by the amount that the state or local government would expect to receive from the federal government under the Build America bonds program. The interest rates provisions are effective for bonds issued prior to June 30, 2012.

Amends: TCA, Title 9, Ch. 21

Effective: May 27, 2010

Public Chapter 1017 – Unemployment Benefits – Direct Deposits

This act authorizes a claimant to have an unemployment compensation benefit paid by direct deposit in an account at a financial institution. The act provides that if benefits are paid by check, the social security number shall be redacted to provide only the last four digits.

Amends: TCA, Section 50-7-301

Effective: July 1, 2011

Public Chapter 1053 - Register Fees – Internet Filing

This act authorizes counties to adopt an additional $2.00 per filing fee for every filing through the county register’s Internet portal. This $2.00 fee is in addition to any and all other fees assessed on the filing. The fee may be adopted in any particular county upon a two-thirds vote of the county commission.

Amends: TCA, 8-21-1001

Effective: June 21, 2010

Public Chapter 1097 – Financial Literacy Program

This act creates a new state entity, the “Tennessee Financial Literacy Commission,” which is to be organized as a 501(c)(3), not-for-profit corporation. The commission is composed of a board of 11 members, three of whom shall be the state treasurer, the commissioner of financial institutions, and the commissioner of education. The other eight members are appointed four-each by the Speaker of the House and the Speaker of the Senate. The objectives of the commission is to formulate educational programs to improve financial literacy, to educate the public, the disseminate publications, to maintain a website, to provide information, to make grants and awards, to implement and improve financial literacy, and to initiate education campaigns. As a 501(c)(3) non-profit entity, the commission would be not taxed and would also be eligible to receive grants and donations to support its functions.

Amends: TCA, Title 49, Ch. 7 (new)

Effective: June 23, 2010

Public Chapter 1101 – Records Archive Fee

This act authorizes counties and cities or towns to impose a fee of up to $5.00 for each record filed with any government entity, other than the office of the country register. The fee is dedicated exclusively for duplicating, storing, and maintaining any records required by law to be permanently kept.

Amends: TCA, 10-7-408 and 6-54-136

Effective: July 1, 2010

Public Chapter 1108 – Appropriations – State Budget

This act makes appropriations to fund the state budget. For the 2010-11 fiscal year starting July 1, the total budget is $29 billion.

Amends: N/A

Effective: July 1, 2010

Public Chapter 1109 – Bond Authorization

This act is the annual bond bill that authorizes bonds in the total amount of $194,100,000.

Amends: N/A

Effective: June 25, 2010

Public Chapter 1110 – Budget Inflator

This act authorizes an increase in the state budget greater than the estimated growth in the state’s economy by $126,600,000 or 1.1%.

Amends: TCA, 9-4-5203

Effective: June 25, 2010

Public Chapter 1114 – Flood Victims’ Relief – Tax Refunds

This act authorizes the refund of sales tax for purchases of certain building materials, appliances, residential furniture, and cleaning materials and supplies for victims of the flood disaster occurring between May 1, 2010, and May 8, 2010, provided the total amount of tax refund for any one residence may not exceed $2,500. To receive a refund, the claimant shall file a single application with the Department of Revenue on or before November 30, 2010.

Amends: TCA, Title 67, Ch. 6

Effective: June 29, 2010

Public Chapter 1129 – Small Business Advocate

This act creates a small business advocate within the Office of the Comptroller of the Treasury. The objective of the advocate is to provide information and assistance for small business, defined as those with less than 50 employees. Each department of the state government is required to designate a contact person to assist the small business advocate in promoting and developing small business in Tennessee.

Amends: TCA, Title 8, Ch. 4 (new section)

Effective: July 1, 2010

Public Chapter 1134 – Technical Corrections Bill

This act modifies various tax provisions including those governing sales for resale, captive (nonbank) REITS, brownfields property, job tax credits, flood relief, and sales tax on satellite television service from 8.25% to 9.4%. Also included in this omnibus bill is authority for the following:

• The act extends the tax credit for the Tennessee Rural Opportunity Fund to also include the Tennessee Small Business Opportunity Fund (Section 34).

• The act authorizes a community development financial institution to charge interest at a rate not to exceed 24%, notwithstanding the other limitations in TCA, 47-14-103 (the formula rate), which authorizes a rate of 4% over prime (Section 55).

• The act authorizes certain recovery zone facility bonds to be issued at a rate exceeding the applicable formula rate of 4% over prime under TCA, 47-14-103. Instead, the authorized rate would be 7 percentage points above prime. It applies to any bonds issued on or before June 30, 2012, for purposes of the American Recovery and Reinvestment Act of 2009 (Section 59).

Amends: TCA, Title 67

Effective: July 1, 2010

Public Chapter 1142 – Small Business Investment Company Credit Act

This act revises various provisions of the Tennessee Small Business Investment Company Credit Act (TNInvestco). This act authorizes the sale of certain insurance company tax credits to fund venture capital companies. The bill extends and authorizes the allocation of an additional $80 million in tax credits such that the total shall not exceed $200 million. Such additional tax credits shall consist of four $20 million allocations. While the law is effective on June 30, it applies to any entity certified as a TNInvestco and tax credits awarded on or after July 9, 2009.

Amends: TCA, Title 4, Ch. 28

Effective: June 20, 2010

TRUST

Public Chapter 638; Wills or Trusts – Statutory Construction

This act adopts a rule of statutory construction to fill a gap created due to the lapse of the federal estate and generation-skipping transfer taxes during the calendar year 2010. The act provides that wills or trusts that contain language making elections based upon certain federal tax benefits shall be deemed to apply to the federal tax law as it existed on December 31, 2009 (immediately before the lapse of the federal provisions).

The bill expires on the earlier of January 1, 2011 (when the federal tax is revived), or when Congress re-enacts an estate tax. The act also permits a personal representative to file an election to opt out of this rule of construction and for a court to waive its application if contrary to the intent of the testator.

Amends: TCA, Title 32, Ch. 3

Effective: March 17, 2010

Public Chapter 639 – Trust – Gift Restrictions

This act increases from $25,000 to $150,000 the amount below which an institution holding and managing a charitable gift may modify or remove the restrictions on the gift if such restriction makes the administration unlawful, impractical, impossible to achieve, or wasteful. Under current law, the institution may release the restriction upon 60 days’ notice to the state attorney general. The act also includes an escalator that increases this gift amount by $5,000 per year beginning July 1, 2011, and on each July 1 in subsequent years.

Amends: TCA, 35-10-206

Effective: July 1, 2010

Public Chapter 658 – Community Property Trust

This act authorizes the creation of a community property trust. The act allows a married couple to transfer all or a portion of their property into a trust, thereby converting the property to community property while it is owned by the trust. A community property trust allows the married couple to take advantage of certain federal tax benefits applied to capital gains. If the couple divorces, each party will receive one-half of the trust assets. Alaska is the only other state that has enacted a statutory provision permitting creation of community property trusts.

Amends: TCA, Title 35 (new Chapter 17)

Effective: July 1, 2010

Public Chapter 725 – Trust Laws Update

This act revises numerous provisions of the Uniform Principal and Income Act, the Tennessee Uniform Trust Code, and Tennessee’s Rule Against Perpetuities. The act also adopts a provision allowing the creation of unitrusts.

Specifically, the act:

- revises certain provisions within the Uniform Principal and Income Act relating marital deduction trusts and trusts’ taxable income from pass-through entities;

- clarifies and revises provisions in the Tennessee Uniform Trust Code relating to the standard used to determine whether a conflict of interest exists; spendthrift trust protections being available under special needs trusts and inter vivos trusts; trustees’ duties of loyalty and to inform and report; and trustees’ liabilities arising from ownership of a trust, among other provisions;

- removes the requirement in the Tennessee Uniform Statutory Rule Against Perpetuities that all interests in a trust vest or terminate, or the appointment power is exercised, every 90 years, and replaces such requirement with every 360 years; and

- allows a trust to be administered as unitrust rather than a mandatory income trust so that the beneficiary will receive a fixed percentage of the value of the trust rather than receive a fixed amount of income.

Amends: TCA, Title 35

Effective: July 1, 2010

Public Chapter 817 – Uniform Adult Guardian Act

This act adopts the Uniform Adult Guardianship and Protective Proceedings Jurisdiction Act. It governs the jurisdiction of Tennessee to appoint a guardian or conservator, the transfer of a guardianship or conservatorship, and the enforcement of a guardianship or protective order of another state.

Amends: TCA, Title 34, Ch. 14 (new)

Effective: January 1, 2011

Public Chapter 831 – Guardianship – Brokerage Firms

This act removes brokerage firms from the definition of “financial institutions” for purposes of determining whether to require a conservatorship or guardianship bond. The effect of this is to require funds that are placed with a brokerage firm to be bonded.

Amends: TCA, 34-1-101

Effective: April 27, 2010

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download