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Business Insider SUMMER 2016 In This Issue: Special Election and Legislative Wrap-up Who is Running: Election Filings Election Resources for Business Made in Tennessee: The Jackson Kayak Story 2016 Tax and Related Legislation TENNESSEE CHAMBER OF COMMERCE & I NDUSTRY TENNESSEE CHAMBER OF COMMERCE & I NDUSTRY T E N N E S S E E C H A M B E R O F C O M M E R C E A N D I N D U S T R Y SAVE THE DATE OCT. 17, 2016

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Page 1: Business Insider - Home | TN Chamber2015-2016 Legislative Recap 2016 Tax Related Legislation Page 6 Key Bills Votes Page 10 ... Embraer Aircraft Maintenance Services Andrea Lindsley,

Business InsiderSUMMER 2016

In This Issue:• Special Election and Legislative Wrap-up

• Who is Running: Election Filings

• Election Resources for Business

• Made in Tennessee: The Jackson Kayak Story

• 2016 Tax and Related Legislation

TENNESSEE CHAMBER OF COMMERCE & INDUSTRYTENNESSEE CHAMBER OF COMMERCE & INDUSTRY

TEN

NES

SEE

CHAM

BER OF COMMERCE AND

IND

USTRY

SAVE THE DATEOCT. 17, 2016,,

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GIBSON COUNTY UTILITY DISTRICT

“In accordance with Federal law and U.S. Department of Agriculture policy, this institution is prohibited from discriminating on the basis of race, color, national origin, age, disability, religion, sex, and familial status. “

P h : 7 3 1 - 8 5 5 - 1 4 4 1 F : 7 3 1 - 8 5 5 - 1 4 5 4 w w w . g i b s o n c o u n t y g a s . c o m

June 6 Trenton, TN

The CNG From Sea to Shining Sea Road Rally is sponsored by the American Public Gas Association (APGA), NGVAmerica, the American Gas Association (AGA) and other national and local sponsors for clean energy.On May 30, 2016, the road rally will rev up in Long Beach, California to begin it’s 11 day trek across the U.S. ending in Washington, D.C. on June 10, 2016. The rally vehicles will travel 3,144 miles making 13 planned media stops. May 30 Long Beach, CA

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IN THIS ISSUEPage 52015-2016 Legislative Recap2016 Tax Related Legislation

Page 6Key Bills Votes

Page 10Legislative Outcome Chart

Page 18Election Filings

Page 21EPA Legislating Through Rule Making

Page 28Women in Business

StaffBradley Jackson – Interim President

Rosie Dykes – VP of Administration

Suzie Lusk – Associate VP of Event Management

Amy Martin – Associate VP of Environment & Energy

Berton Pinkham – Membership Director

Nick Roberson – Membership Manager

Steven Ringel – Affi nity Program Director

Shannon Tate – Account Administrator

Carolyn Davis – Special Events Assistant

LaDonna Copeland – Administrative Assistant

Susan Ubico – Front Offi ce Assistant

For Advertising, please contactSteven [email protected] Business Insider is a publication of the Tennessee Chamber of Commerce & Industry414 Union Street, Suite 107Nashville, TN 37219

Please visit www.tnchamber.org for archived issues.

2016 Board of DirectorsExecutive CommitteeGreg Martz, Chairman of the Board, ChemoursMiles Burdine, Chair of Education & Workforce Development Committee, Kingsport Chamber of CommerceLarry Combs, Incoming Chair, Brown-Forman/Jack Daniel Supply ChainEva Lynne Disbro, Chair of Human Resources Committee, McKee Foods CorporationJames Fenton, TEDC Representative, Gallatin Economic Development AgencyCarl Hartley, Chair of Taxation Committee, Baker, Donelson, Bearman, CaldwellBradley Jackson, Interim President, Tennessee Chamber of Commerce & IndustryDavid Locke, At Large Member, BlueCross BlueShield of TennesseeKelly McCreight, Secretary-Treasurer, Hamilton-Ryker CompanyChris Moore, Chair of Environment & Energy Committee, Alcoa, Inc. Kyle Spurgeon, TCCE Representative, Jackson Chamber of CommerceMichael Stagg, General Counsel, WallerClay Thompson, Past Chair, Caterpillar, Inc.Dennis Wagner, Chair of Public Affairs Committee, AT&TRebecca White, Chair of Manufacturing Excellence Council, LyondellBasell Industries

Board MembersEast RegionVal Armstrong, Tennessee American Water Company Diana Bullock, Electric Power Board of ChattanoogaJerry Caldwell, Bristol Motor SpeedwayKeith Carver, University of TennesseeRobert Gagliano, BASF CorporationCharley Poe, Eastman Russ Watkins, Partners

Middle RegionJeff Bates, TA Staffi ngTracy Brown, US BankStacey Cothran, Waste ManagementBrad Jaffe, Mars, IncorporatedBrad Montgomery, State Farm Insurance CompaniesRhedona Rose, Tennessee Farm Bureau FederationJim Schmitz, Regions BankJames Spradley, Standard Candy Company, Inc.

West RegionRob Ashe, Packaging Corporation of AmericaGene Baker, Smith & NephewJason Bates, Toyota Motor Manufacturing Bryan Everette, TBDN TN CompanyJ. Lee Fry, Dixie GunWillie Gregory, Nike, Inc.Rachel McConnell, Kellogg CompanyJim Mulroy, Jackson Lewis PCA.J. Sain, FedExRick Schreiber, BDO

At Large Eddie Davidson, Piedmont Natural Gas CompanyBeth Fortune, Vanderbilt UniversityJeff Hollett, John Deere Power ProductsTeresa Lewis, Embraer Aircraft Maintenance ServicesAndrea Lindsley, dvl/seigenthalerBill Penny, Burr & Forman LLPMax Shilstone, Clean Line Energy Partners LLC

On the Cover

Eloquent Creative works in conjunction with Taylor Creative Group to fully develop the client’s storybook.

By taking a collaborative approach we are able to be much more comprehensive in our efforts to assist our clients in Creating better content while at the same time being more Relatable due to of improved Communication between the client and her audience.

As a book is made up of a front and back cover, spine, and pages of content; an effective marketing campaign should operate and serve the same basic function of a book.

Create. Relate. Communicate.

The Tennessee Chamber staff would like to recognize and congratulate Suzie Lusk, Associate V.P. of Event Management, on her recent graduation from the U.S. Chamber of Commerce’s Institute for Organization Management. Suzie Lusk, IOM – We are so proud!

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Bradley Jackson, Interim PresidentGreg Martz - Chair- TN Chamber of Commerce Board of Directors

Chairman’s Corner A Message from the President

Well another legislative ses-sion has come and gone and we are now ramping up for another election season. Prior to taking on this role as Chair I have to ad-mit that, although I have always voted, I really didn’t follow local elections as close as I probably should have. But as retiring Lt. Governor Ron Ramsey is famous for saying, “It Matters Who Gov-erns” and I am now much more engaged and interested in who is

their impact could be on public policy if they were to be elected.

I strongly encourage you to

As a Chamber we are focused on what is good for business, and developing those relationships is good for your business. A great way to introduce yourself and your business is to invite them to your facility for a tour. This gives them an opportuni-ty to understand more about your business and how you are impacting the community, but it also gives them an opportunity to meet your employees who in many cases are constituents in their district and potential voters.

These events also provide the chance to tell your representative or senator about the issues that you face. It could be business taxes, or environmental regula-tions, or health care challenges.

Since taking over as Interim President at the Tennessee Cham-ber it has been a whirlwind. It is an exciting time for the Chamber, and new things are on the horizon.

As many of you know, running or leading any organization requires a vision of what needs to be done and a plan for how to get there. In my years with the Chamber, we have been through much and I have learned that ultimately, in the halls of our Capitol or in business, great leadership is about getting things done. The Chamber is an organi-zation that needs a strong vision with a plan to make sure we deliver a strong value to your business. Ultimately, we need to get things done for you.

As we think through imple-menting plans for the Chamber, an honest assessment is always a nec-essary task: What can we do better? How can we help you more? Please let us know; we want to hear from you and we are always available.

Right off, there are a number of things we want to focus on: stronger grassroots and political mobilization and organization,

We live in a society where very few people provide feedback to their

feedback that they receive does not

majority of their constituents. So

person is very valuable to them and likely has a much greater impact on how they develop their stance on an issue versus forming that stance via emails.

I also urge you to get your employees and their families to participate in the legislative and election processes. As everyone knows, state primary elections have a history of very low voter turnout and most people don’t realize how important these elections are. I was speaking with a state represen-tative the other day and he said that there were roughly 85,000 registered voters in his district, but he only expected about 4,000 to vote in the August primary. This is less than 5% of the population in that district. Do we really want state legislators elected by 5% of the population when they will be deter-mining the direction of the state for the next two years? So encourage your employees to register, and more importantly vote in August and in November.

Finally, the Chamber has many communication channels that it uses to keep its members informed of what is going on with the state legislature, one of which is this magazine. The TN Chamber of Commerce and Industry staff takes a lot of pride in what they do and they spend a multitude of hours preparing these communications for their membership. Please take the time to read all of the Chamber communications and provide feed-back on what you like or how they can improve. We have a fantastic team and they appreciate all of the support that you provide.

more robust policy input and deeper focus on the main areas of business interest - work-force, manufacturing, business taxes, HR policy, environment & energy mandates and economic development. We are working on plans to make us even stronger and look forward to sharing them with you and hearing your input.

We value your commitment to business in Tennessee.

October 26-27

33rd Annual Environment &

Energy Conference

Montgomery Bell State ParkBurns, TN

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TN CHAMBER BUSINESS RECAP OF THE 2015-2016 LEGISLATIVE SESSION109th General Assembly Produces Positive Results for Tennessee Chamber of Commerce & Industry

By: Bradley Jackson, Interim President and Amy Martin, Associate Vice President Environment and Energy

Now that the 109th General Assembly has come to a close and the dust has settled, it is time to review all business related legislation from 2015 and 2016 and look at how the Chamber and business community fared. Overall, the 109th General Assembly produced strong results for business and we are proud to share our accomplishments in this edition of the Business Insider.

This issue of the Business Insider illustrates how we work for you, our members, in the halls of our Capitol. You will see a comprehensive listing of all bills the Chamber worked on categorized by issue, the Chamber position, and the outcome of the bill. Also included is the key business vote analysis, which shows how our legislature performed on a number of important business agenda items. In addition, we highlight the most important races to watch over the summer and fall.

For the 2015-16 General Assembly, the Chamber aggres-sively pursued our agenda that guided our work. We were able to pass a number of these initiatives and beat back a number of negative bills that would have harmed employers and our

business climate. For some of our most important items, we look forward to creating a comprehensive solution that will fund Tennessee’s road and infrastructure programs into the future, and we continue to remain on a strong path to improve our workforce, as well as, hold strong on educational reforms that includes accountability. There are also a number of other crucial policy components we are continually work-ing on that are critical to our business climate that include workers’ compensation, employment and HR initiatives, taxation and economic development, and environment and energy issues.

As always, the Chamber’s success and Tennessee’s eco-nomic success is contingent on your grassroots involvement and participation in our political process. Because of your engagement, the Chamber and business community remain a powerful force in Tennessee politics.

We hope you enjoy this edition of the Business Insider. Please do not hesitate to contact us if you have questions and/or need additional information.

2016 TAX AND RELATED LEGISLATIONBy: Carl E. Hartley, Esq., Baker Donelson Bearman Caldwell & Berkowitz, PC

During the 2016 Session, 109th General Assembly, the Legislature considered several tax and related initiatives before adjourning. Although the number of such initiatives this Session was not as large as in the 2015 Session (remember the Revenue Modernization Act from 2015), several important tax initiatives were nevertheless enacted during 2016.

The following is a general summary of some of the more nota-ble initiatives enacted during this most recent Session.

I. Franchise and Excise Taxes

A. Estimated Payments/Penalty Provisions Revised. Tenn. Code Ann. § 67-4-2015 contains F&E tax filing and estimated payment requirements, as well as estimated tax penalty pro-visions. 2016 Public Chapter No. 881 (“PC 881”), which is effective for tax years beginning on or after January 1, 2016, makes various revisions to that Section such as: (i) clarifying that a taxpayer is required to make four quarterly estimated

F&E tax payments for its current year if the taxpayer has a combined F&E tax liability of $5,000 or more, after applica-tion of all available F&E tax credits, for both the immediately preceding tax year and the current tax year; (ii) replacing one of the alternative requirements that quarterly estimated payments be not less than 25% of the full combined F&E tax liability for the current year, with a more favorable alternative requirement that such payments be not less than 25% of 80% of such com-bined liability for the current year; (iii) replacing the 5% per month penalty for estimated tax underpayments not to exceed a total of 25%, with a lower penalty of 2% per month not to exceed a total of 24%; and (iv) requiring the Department of Revenue (“Department”) to ensure that any new integrated tax system implemented by the Department “will support the annualization of quarterly estimated payments” -- which is intended to evidence the Department’s commitment to support during the 2017 Session the annualization of quarterly estimat-ed payments as a defensive method for avoiding the underpay-ment penalty. Additionally, PC 881 revises the statutory penalty waiver provisions found at Section 67-1-803 to provide that if

continued on page 25

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Key Bills Description

Protects Retail Merchants from Union campaigns: P.C. 183 – SB0926/HB1245 U.S. Chamber and Tennessee Chamber effort to crack down on Unions targeting of retail merchants and vandalism.

F&E Tax Reform for TN Business: P.C. 514 – SB0603/HB0644 TN Chamber priority legislation establishing triple weighting of sales factor to determine business tax liability. This is estimated to save business $33m annually. The Chamber worked to mitigate the impact of other business tax changes included in the revenue modernization act

Erodes TN Employment at Will: P.C. 80 – SB1058/HB0994 Bill creates new employment protections and a new exemption in TN employment at will statute for an employee who stores a firearm in their vehicle. Chamber worked to ensure that this action must be based solely on the transportation or storage of the firearm in an employer’s parking lot.

Establishes Uniform Seed Regulation: P.C. 643 – SB1934/HB1946 TN Chamber agenda priority bill establishing that the Commissioner of Agriculture maintains sole authority to regulate seed; prevents a patchwork of local government mandates.

Prohibits local hire mandates: P.C.587 – SB1621/HB1674 Prohibits local governments from mandating business to hire local workers only for projects.

Establishes TN Judicial Selection Process: P.C. 528 – SB0001/HB0142 TN Chamber supported bill that establishes the judicial confirmation committee and authorizes legislative confirmation. This ensures that certain judges will not be popularily elected in Tennessee.

Unemployment Fund Revisions Benefiting Business: P.C. 1063 – SB2481/HB2512 Removes the requirement that the administrator of employment security randomly verify 1,500 claimants weekly; revises certain provisions governing disqualification after sickness, disability, or pregnancy.

Prohibits Certain Employment Mandates: P.C. 606 – SB2103/HB2002 Prohibits a local government from prohibiting a private employer to request certain information on an application for employment.

TN Workers Compensation/Drug-Free Workplace Bill: P.C. 1056 – SB2582/HB2416 TN Chamber supported bill that revises Tennessee’s workers’ compensation law by lowering the time in which employees must report injuries to 15 days and eliminating the annual one-hour drug free workplace training requirement. The bill also provides the TN workers’ compensation division the authority

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to assist injured workers rather than them hiring attorneys, also address situations to help workers if an authorized claim is not being properly paid.

Mandated Health Benefit: P.C. 683 – SB1619/HB1955 Requires any legislative mandated health benefit must apply not only to private health insurance issuers but also to any state or local insurance program and any managed care organization contracting with the state to provide insurance through the TennCare program. This will stop proposals that target insurance mandates only on private business.

Authorizes Public-Private Transportation Initiatives: P.C. 975 – SB2093/HB2407 Enacts the “Public-Private Transportation Act of 2016”, authorizing private business to work with government agencies on infrastructure improvements.

Rolls back Lawsuit Lending Standards: SB0997/HB1161 Proposed bill would roll back a number of regulatory requirements for lawsuit lenders raising litigation costs on business

Tennessee Pay Equity Act: SB2298/HB1947 Created a new cause of action for employers to defend against employee pay, proposed bill known as the “Tennessee Pay Equity Act” and included a number of subjective standards to determine pay equity.

Paid Leave Mandate: SB0662/HB0552 Requires employers to provide employees with children additional leave time for school activities.

$15 Hourly TN Minimum Wage: SB2322/HB2090 Established Tennessee minimum wage at no less than $15 per hour.

Insure Tennessee: SJR7001/SJR0093 Haslam administration proposal and other efforts to authorize Insure Tennessee.

Medicaid Expansion Option: SJR0103 Urges the United States department of health and human services to approve a block grant in order to fund services to the existing TennCare population and to expand the Medicaid program in this State to persons with incomes below 138 percent of the federal poverty line.

Popular Election of Attorney General: SJR0063 Resolution would provide for the popular election of the attorney general and reporter for a regular term of six years.

Regulation Freedom Amendment: SJR0002 Proposes requiring Congressional approval for a number of federal regulations.

Increase Insurance Mandates: SB2091/HB2239 Business insurance mandate requiring insurance companies to offer all anti-cancer medications at the same cost.

Elected School Superintendent: SB1606/HB1968 Bill would have inserted politics into local schools by reestablishing elected local school superintendents.

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Creates Offense for Using a Drone Around Critical Infrastructure: P.C. 788 – SB 2106/HB1811 Protects business from unauthorized flying of drones over private business property. Bill prohibits conducting surveillance, gathering information about the facility, or electronically recording critical infrastructure data.Reporting of TN’s Implementation of the Clean Power Plan: P.C. 478 – SB 1325/HB 868 Establishes business and legislative input to monitor Tennessee's implementation of the Clean Power Plan.Revises the Petroleum Underground Storage Tank Fund: P.C. 877 – SB 1690/HB 1503 Revised certain provisions regarding the petroleum underground storage tank fund.Enacts the Asbestos Trust Claims Transparency Act: P.C. 635 – SB 2062/HB 2234 TN Chamber supported bill enacting the Asbestos Trust Claims Transparency Act requiring all documentation and evidence must be made available to all parties in an asbestos lawsuit. Revises Collection Methods of F&E Taxes: P. C. 881 – SB 2558/HB 1554 TN Chamber agenda supported initiative revising the collection and penalies of F&E taxes easing business compliance and ensuring TN can better estimate collections for budgeting. Establishes Uniform Seed Regulation: P.C. 643 – SB1934/HB1946 TN Chamber agenda priority bill establishing that the Commissioner of Agriculture mantains sole authority to regulate seed; prevents a patchwork of local government mandates. *PNV / Sen. NiceleyProtects Retail Merchants from Union campaigns: P.C. 183 – SB0926/HB1245 U.S. Chamber and Tennessee Chamber effort to crack down on Unions targeting of retail merchants and vandalism.TN Workers Compensation/Drug-Free Workplace Bill: P.C. 1056 – SB2582/HB2416 TN Chamber supported bill that revises Tennessee's workers' compensation law by lowering the time in which employees must report injuries to 15 days and eliminating the annual one-hour drug free workplace training requirement. The bill also provides the TN workers' compensation division the authority to assist injured workers rather than them hiring attorneys, also address situations to help workers if an authorized claim is not being properly paid.Mandated Health Benefit: P.C. 683 – SB1619/HB1955 Requires any legislative mandated health benefit must apply not only to private health insurance issuers but also to any state or local insurance program and any managed care organization contracting with the state to provide insurance through the TennCare program. This will stop proposals that target insurance mandates only on private business.F&E Tax Reform for TN Business: P.C. 514 – SB0603/HB0644 TN Chamber priority legislation establishing triple weighting of sales factor to determine business tax liability. This is estimated to save business $33m annually. The Chamber worked to mitigate the impact of other business tax changes included in the revenue modernization act

Congratulations: Business Key Vote Bills with Unanimous Support

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Total Bill Positions: 114

Opposed: 46 Supported: 62 Defer with amendment: 6

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On April 14, 2016, the Tennessee Chamber hosted a Farewell Breakfast for Lt. Governor Ron Ramsey. The event highlighted the Chamber’s appreciation of Lt. Governor Ron Ramsey’s service and contributions over the past 20(+) years. His service has made Tennessee an exceptional state for doing business.

Pictured (above): Bradley Jackson, Interim President, and Amy Martin, Associate V.P. of Environment & Energy, Tennessee Chamber present a keepsake of appreciation to Lt. Governor Ron Ramsey.

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Industry supports a fair, sensible and balanced regulatory system to ensure public health and safety are protected as well as our air, land and water resources. An essential element to maintaining a balanced regulatory system is having a rulemaking process in place to produce effective, effi cient, attainable and reasonable regulations. Most stakeholders agree that the Administrative Procedure Act (APA) has generally served affected parties well through the rulemaking process since it was established in 1946.

Unfortunately, over the last several years, federal agencies have been able to circumvent Congress, signifi cantly expanded their regulatory outreach and basically legislate highly complicated, very aggressive and extremely costly rules that greatly impact industry and manufacturing and ultimately, our nation’s economy. As William Kovacs, SVP, Environment, Technology & Regulatory Affairs, U.S. Chamber of Commerce, testifi ed before the U.S. Senate in April of this year,

“As agencies began expanding their policy making power, Congress responded by enacting statutes requiring the agencies to analyze, as part of the rulemaking process, regulatory costs and benefi ts; unfunded mandates; the use of the best quality information, data and peer reviewed materials; impacts on small business and small local governments…[t]heses analyses are intended to be a check on agency actions, but as demonstrated…they are often ignored, to the great detriment to citizens, business and state and local governments.” One such agency that has impacted industry without

fully evaluating all required considerations is EPA. Last year alone, in less than six months, EPA fi nalized three substantial rules: the Clean Power Plan, Waters of the U.S. and the revised Ozone standard. Mr. Kovacs perfectly captures the impacts of EPA’s actions “These rules not only undermine the cooperative federalism model carefully crafted by Congress, they threaten to wreak havoc on the ability of states’ to operate effective environmental programs.”

As demonstrated in the chart above, during 2000-2015, 34 rules costing more than $1 billion per year have been imposed. EPA has issued 20 of them. It’s the Chamber’s contention that it’s time to evaluate if the current rulemaking procedures are adequate for these types of massive, multifaceted, and expensive rules.

With complex rules that can profoundly impact large sectors of our economy, we need to ask several questions, including, are the typical 30, 60, or 90 comment periods suffi cient, as well as the deadlines for consideration; of impacts to the regulated community and on other agencies suffi cient; is the quality of the data the agencies are using appropriate and clearly factual; is it reasonable to think the regulated community as well as the state

agencies implementing these rules have ample time to comment and/or evaluate the intended (and unintended) consequences of a rule when there are multiple rules, signifi cantly changing the regulatory landscape, being issued within the same time-period (i.e. WOTUS, Clean Power Plan, Ozone within three months); what are the real cost of implementing new regulations on the states. The impact on states’ environmental programs is an important element in this discussion. According to the Environmental Council of the States (ECOS), the states in 2013 implemented approximately 96.5% of federal environmental laws through delegated programs. In 2013, the President of ECOS, testifi ed before the House Committee on Energy and Commerce, Subcommittee on Environment and the Economy, “[S]tates fi nd themselves in 2013 with a lot more [environmental] rules, and the possibility of a lot less money to implement them. States are very unsure how much longer these two trends can continue before the core environmental programs in each state begin to signifi cantly suffer.”

It is time for a more appropriate rulemaking process for these multi-billion dollar, complicated rules. The Tennessee Chamber fully supports updating the 70 year old federal rulemaking process under the APA. Last year, the U.S. House of Representatives passed the Regulatory Accountability Act on a vote count of 250-175 and we hope the U.S. Senate will follow suit this year. The Regulatory Accountability Act will improve transparency and accountability, ensuring the most costly and high-impact rules are well-designed and tailored to accomplish their objectives without causing unnecessary damage to our nation’s economy.

As Mr. Kovacs stated in April, “…EPA becomes the primary lawmaker on environmental issues, not Congress. This is a travesty and Congress must regain its role as the primary legislative body.”

Sources: EPA rules from agency RIAs; other agencies’ rules from OMB 2013, 2014, and 2015, Reports to Congress on Costs and Benefi ts of Regulations.

EPA LEGISLATING THROUGH RULE MAKING: WHERE ARE THE LIMITSBy: Amy Martin, Associate Vice President of Environment and Energy, Tennessee Chamber of Commerce and Industry

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BUSINESS ENGAGEMENT IN OUR ELECTIONS ARE CRITICAL: TENNESSEE CHAMBER ANNOUNCES WAYS TO GET INVOLVED

With 2016 elections nearing, Tennessee’s business community can play an important role in securing a pro-business legislature. Here are a few ways you can help ensure business involvement including the voice of your employees to advance a pro-business climate in our state.

Utilize the Business Votes Website: The Tennessee Chamber is partnering with BIPAC to offer a website that is dedicated solely to elections. Tennessee Business Votes website (www.bipac.net/tnvotes) allows businesses and their employees to learn about their elected offi cials, voter registration, election dates and current issues impacting job security and economic competitiveness.

Overall, the goal of the website is to unify members under similar goals as the election season progresses. Industry in Tennessee, and across the country, will be largely impacted by whoever is elected. Voting for pro-business candidates both at the state and federal levels is extremely important and we need your engagement!

The Chamber invites and encourages all its members to fully utilize this website as a vital tool during the election season.

Promote Candidate Questionnaires and Voting Records: We encourage you to share the 2015-2016 Chamber Legislative Outcome Results that is included in this edition of the Business Insider with your employees. It is essential for employees to know how their elected offi cials voted on key legislation impacting business.

The Tennessee Chamber has also sent out a questionnaire to all candidates vying for the 110th General Assembly. The Chamber’s overall goal is to make Tennessee one of the best states in the nation for business and it is vital for employers and employees to understand where candidates stand on business issues. This questionnaire will be used to evaluate candidates for the General Assembly and will be shared with our local chambers.

Attend 2016 Chambers of Commerce Regional Meetings: The Tennessee Chamber of Commerce Industry/The Tennessee Manufacturers Association is focusing on building and emphasizing the grassroots strength of Tennessee’s business community. In partnership with local Chambers, we have scheduled

regional business meetings and we want you and your employees to join us. These meetings are for the business community to talk about important policy issues. Legislative candidates will be invited to hear our discussion and see the business community in action in local communities. The meetings are listed below. For additional information regarding these meetings, please contact Bradley Jackson or Amy Martin.August 23rd 11:30am-1:00pm - KingsportKingsport Area Chamber of Commerce400 Clinchfi eld Street, Suite 100Kingsport, TN 37660

August 30th 11:30am-1:00pm - JacksonJackson Chamber of Commerce197 Auditorium StreetJackson, TN 38301

September 7th 11:30am-1:00pm - MurfreesboroRutherford County Chamber of Commerce3050 Medical Center Pkwy.Murfreesboro, TN 37129

October 13th 11:30am-1:00pm - ClevelandCleveland/Bradley Chamber of Commerce255 Keith St. SWCleveland, TN 37311

Financially Support the Chamber’s PAC: Politics is competitive and good candidates whose vision is aligned with business need our support. The Chamber participates actively in the election process by providing fi nancial donations to qualifi ed business candidate to the General Assembly and we do this through careful evaluation of their voting records, questionnaires responses and input from you our members.

Unfortunately, trial lawyers and labor unions donate heavily to elections and candidates and the Chamber must be competitive to show our strength. This is one of the most important ways the Chamber interacts with candidates seeking offi ce allowing us to promote our agenda and issues with them. Donations from corporate and individual funds are allowed in Tennessee so please donate today.

Please visit: www.tnchamber.org > ‘Legislation’ for more information and online PAC contribution.

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TENNESSEE CHAMBER OF COMMERCE & INDUSTRY ANNOUNCES SUPPORT FOR NEW MANUFACTURING

REGULATORY REFORM MOVEMENT Rethink Red Tape Coalition Formed to Examine the Impact Regulations Have on Small

Manufacturers and to Provide Small Business Owners a Platform to Drive Smarter Regulation

In response to the growing number of government regulations that unfairly burden America’s small businesses, manufacturers and startups, the Tennessee Chamber of Commerce & Industry/Tennessee Manufacturers Association, is adding its support to the newly launched Rethink Red Tape coalition and advocacy campaign, a project of the National Association of Manufacturers (NAM) and Small Business & Entrepreneurship Council (SBE Council), in partnership with the International Franchise Association and Women Impacting Public Policy.

Bradley Jackson, Tennessee Chamber Interim President, noted “Manufacturing has a long and proud history in Tennessee and is a major driver of economic growth and job creation. Each year more and more regulations are placed on manufacturers harming our competitiveness. We need this type of reform and we look forward working with Tennessee manufacturers in fi ghting to make this a reality.”

With more than 56 million American jobs dependent on small fi rms and the vast majority of manufacturing companies qualifying as small businesses, our nation’s broken regulatory system is a threat to U.S. economic health and U.S. manufacturing. It also harms our ability to meet policy objectives effi ciently and effectively, such as protecting public health, worker safety and the environment. Rethink Red Tape exists to reform the regulatory process and make it fairer, clearer and less obstructive to innovation and small manufacturing growth. Solutions promoted through Rethink Red Tape will refl ect fi ve guiding principles:

Meaningful public and small business engagement in the rulemaking processPrioritization of unbiased, scientifi c information in rulemaking Consideration of public costs and benefi tsTransparency and clarity in how rules will be enforced and how compliance can be attained Regular evaluation of whether regulations are working

Educational resources and facts showing the impact today’s regulatory environment has on the small business economy are featured on www.RethinkRedTape.com, alongside personal stories from small business owners who know the burden of overregulation fi rsthand.

SPONSORSHIPS STILL AVAILABLE

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TN MANUFACTURING SUSTAINABILITY SPOTLIGHT: ALCOABy: Amy Martin & Josh Moore, Tennessee Chamber of Commerce & Industry

The Chamber has always emphasized environmental sustainability and energy effi ciency for its members. This column exists to highlight chamber members that show excellence in these areas within their regular operations. Alcoa is one of the Chamber’s oldest members and we are honored to showcase it in our Sustainability Spotlight.

Over their long history as a company, Alcoa has always made large and even aggressive efforts towards maintaining sustainability in their operations. The company has been included in the Dow Jones Sustainability Index for 14 consecutive years, and was recently recognized in the Standard and Poor’s 500 Climate Disclosure Leadership Index. In fact, every single business unit and location within Alcoa has various water, waste, energy, and air emissions reduction targets that are constantly being sought after.

At their Tennessee Operations in Alcoa, Tennessee, sustainability is a key facet of the facility’s vision. Building on their history of solid environmental performance

and its ISO14001 certifi ed environmental management system, Alcoa continues to seek how they can improve. Their on-site waste management and recycling program has seen a reduction in landfi lled waste from 4,100 tons in 2011 to 1,900 tons in 2015. Currently, more than 60% of waste generated on-site is recycled compared to 35% in 2011. Additionally, through participation in the Department of Energy’s “Better Buildings, Better Plants” program, the facility has reduced its energy intensity (energy consumed versus production rate) by 14% from 2005 levels. This includes replacement of various older systems, such as steam systems, with newer and more effi cient natural gas heating processes, and all new burners systems with the best available control technology.

It has been a long term goal of Alcoa to not only reduce their impacts on the environment, but also aim to have a positive impact on the environment through the use of innovative and energy-saving products. As a result, the customer’s footprint is reduced by using Alcoa’s products. In terms of carbon emissions, Alcoa considers production to be net positive when the greenhouse gas emissions avoided in the use of their products exceeds the amount emitted during the production phase. An example of this

would be the recent facility expansion at Tennessee Operations to enable increased production of light-weight aluminum for the Ford F-150 and other vehicles which results in improved fuel effi ciency.

Being one of the world’s largest used beverage containers (UBCs) recycling facilities, Alcoa’s regular production is always characterized by its use of recycled materials. In addition, they also recycle on-site aluminum cans to raise money for local charities. From 2014 to 2015, approximately 25,000 pounds of UBCs were collected on site resulting in donations of $4,300. Along with this, Alcoa employees regularly support various environmental improvement projects such as river clean-ups, removal of invasive species, and hiking trail improvements in the Blount and Knox County region as well as in the Great Smoky Mountains National Park.

Congratulations to Alcoa for its sustainability successes and continual ambition to improve. The Chamber is grateful to have you as a member and is always inspired by your environmental commitment and achievements.

New automotive sheet production facility at Tennessee Operations.

Aluminum intensive Ford F-150 pro-duced with Alcoa aluminum.

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Jackson Kayak began with extremely limited manufacturing capabilities: assembling outfitting, seats, etc., into pre-molded hulls and other components. In 2004 our back-supports were purchased from China. Our “factory” was a 735 square foot ex-laundromat in Rock Island, TN, and in the first year, we made and sold 2,500 kayaks; the second year yielded 2,600 kayaks. However, we designed our own back-support in 2005, in Kentucky, not China.

Making products in the USA is good business, making them in Tennessee is better, but making them in your own facility is the best. What does “the best” mean?

For Jackson Kayak, every subcontractor we have ever had (roto-molding kayak hulls, thermoforming seats and other components) struggled to achieve the level of quality we feel we needed. Most of them remained motivated for six months and did their job, but began to cut corners, raise pricing, or both. My CFO, Dave Olson, took over operations and organized the purchase of a larger building (110,000 sq. feet), and started buying ovens to bring molding in-house. This move created

about 40 new jobs, and our quality and costs improved simultaneously. Many good things started happening as we began to bring more manufacturing in house:

We were able to afford a higher quality of staff to manage manufacturing, assembly, Q/C, and shipping, which yielded much better control over inventory, cash flow, and quality.

• We enjoyed constantly improving relations with our community as more people were hired and, eventually, everyone in town knew somebody that worked for Jackson Kayak.

• We began to stand for Made in USA/Made in TN. It provides a sense of pride in our staff, managers, and ownership that also extends to our community.

Another benefit of having a global brand made in the Upper Cumberland Region of Middle TN is that we are able to put a spotlight on our area. Our kayaks have been used worldwide and are regularly seen on TV; For example, we won 13 of the 15 available medals at the

last World Championships for freestyle kayaking. People are associating Middle TN with manufacturing prowess, which provides a shot in the arm for the local workforce, and shows that TN is a place where global brands can thrive.

Governor Haslam has lead the recent charge in our state by making it manufacturing friendly, lowering hurdles, listening to the people, and keeping cumbersome legislation to a minimum. I know that I, for one, would not consider manufacturing in a union state, like New York. The business environment

for a company like Jackson

Kayak would

be so parasitic to the way we like to do things that I would not have made it more than a few years before moving or giving

up. In our business, people must wear

many hats to survive: metal working,

Made in Tennessee, USA: The Jackson Kayak StoryBy:By: Eric JacksonEric Jackson,

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Brace yourself when you read this statement: This Congress, the 114th, could potentially achieve more on environmental law than any of the 12 Congresses before it. I recognize that is hard to believe, given its historic low approval ratings and heated anti-Washington rhetoric on the campaign trail. However, it is still completely true.

Congress has passed comprehensive legislation to reform the Toxic Substances

Control Act (TSCA), the nation’s primary law governing the manufacture of chemicals. The Frank R. Lautenberg Chemical Safety for the 21st Century Act, as it is called, rewrites the 40- year-old TSCA statute to better reflect the state of modern manufacturing, where chemicals are the building blocks for lifesaving products, the newest technologies and everyday products that make life better.

Here’s the truly wild part: In a world where Republicans and Democrats in Congress agree on very little—particularly when it comes to the Environmental Protection Agency and the environment—this bill sailed through the House of Representatives on a 403–12 vote. It passed the Senate with a

unanimous voice vote. Think about that for a minute: Sens. Mitch McConnell (R-KY) and Barbara Boxer (D-CA) agree on this bill.

You have to go back at least 20 years to find an environmental law that Congress passed and the president signed. For a law the magnitude of the Lautenberg Act, you have to go back to the Clean Air Act Amendments of 1990. Congress just doesn’t do this kind of thing—at least, conventional wisdom says it is not supposed to.

Yet, we have broad consensus not only on the problem but also the solution. That is the true victory here: Our elected officials rose above the partisanship and got back to solving problems. It is a sign that some of the other big environmental challenges manufacturers are dealing with—ozone, climate change, environmental permitting—are maybe not as off limits as we once thought they were. We will continue to advocate sensible solutions. Let’s hope our TSCA victory is a building block to something even better.

This article originally appeared in the June 2016 edition of Member Focus, the premiere publication for members of the National Association of Manufacturers. Reprinted with permission.

TSCA REFORM A POSITIVE SIGN FOR BROADER ENVIRONMENTAL POLICY DEBATEBy: Ross Eisenberg, Vice President, Energy and Resources Policy, National Association of Manufacturers

molding, labor, construction, etc. A union state would require that we wait for a licensed union worker, stopping us in our tracks on a daily basis. Instead, the great state of Tennessee allows us to hire intelligent and hardworking people, who can problem solve, lead a charge, and grow with us. Made in TN is a much different thing than made in the USA. Many states are good for manufacturing, but none compare to TN.

Jackson Kayak is still subcontracting work that we hope to eventually do. In 2016, we reached capacity at our 110,000 sq. foot facility, so we added a 320,000 sq. foot building to our quiver. This extra space provides us with what we call “blue sky manufacturing,” and the first thing we have done is drive our new Orion Coolers brand: we can now, knowing that we have the space! Once we get that rolling, we’ll look at the other areas where we are still subcontracting from and bring that in-house, with a goal to hire another

200 people in the next 5 years. This can only be achieved if we are profitable and growing. The owners and leadership at Jackson Kayak/Orion Coolers work tirelessly towards the goal of growing our brand profitably for ourselves and our community, because we are proud to make our kayaks and coolers in TN.

After living for 8 years in an RV full time with my family, I chose my 20

acres very carefully, as my one time, one property purchase for life. The kayaking here in TN is world class; the cost of living makes every dollar I make go further than just about anywhere else (not to mention no income tax!) and the people who live in my community are exactly the people I need to be part of my extended family at Jackson Kayak.

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WATTS BAR UNIT 2 PRODUCES ELECTRICITY FOR THE FIRST TIME

On June 3rd, Tennessee Valley Authority (TVA) has reached a landmark in its energy operations. Watts Bar Nuclear Unit 2 generated electricity for the fi rst time, while being synced into the TVA’s power grid. Currently, a team of reactor operators are testing the equipment to make sure it is ready to begin constant full-power operation later this summer. Once the testing of Unit 2 is completed, the systems and controls of the entire plant will be tested at increasing power levels to make certain that all is functioning properly.

This will be the fi rst new nuclear unit to come online in the 21st century. TVA’s achievement will not only serve homes in Tennessee, but also the state’s industry. Tennessee Industry will now be able to access a strong source of low-cost, safe, carbon-free and reliable electricity without the burden of negatively impacting the environment. The Tennessee Chamber congratulates TVA on this signifi cant accomplishment and look forward to its commercial operations.

A Moment in TN Chamber’s History:In 1924, Tennessee Manufactures Association engaged in fi ght to prevent Henry Ford

from taking over Wilson Dam in Muscle Shoals, Alabama

In the 1920’s Henry Ford wanted to obtain a 100 year lease of Wilson Dam in Alabama from the federal government to produce nitrate fertilizer. Believing Ford would usher in substantial economic growth in the South, many farmers and businesses supported Ford’s acquisition in Muscle Shoals including the Tennessee Manufacturers Association (TMA), now known as the Tennessee Chamber of Commerce and Industry. However, after careful review of Ford’s plan, TMA joined the fi erce opposition from Sen. George Norris, a Republican from Nebraska. As Sen. Norris described Ford’s proposition to the federal government, as the “worst real estate deal since Adam and Eve lost title to the Garden of Eden.”

On April 23, 1924, Captain B.H. Wilkins, Chairman of TMA, and Dan McGugin, General Counsel of TMA, passionately testifi ed against the Ford deal before the United States Senate Committee on Agriculture and Forestry. In the words of Wilkins, “Senator, I think that proposition is almost beyond the trust of any individual. I don’t think you can trust any man to do that. That is what they claim that Mr. Ford will do…but that is one thing we are not willing to trust outside of the hands of the Government.”

Later in 1924, Henry Ford withdrew his offer. Ultimately, Sen. Norris was able to pass legislation requiring the federal government to keep ownership of Muscle Shoals and to build more federal dams along the Tennessee River in effort to provide fl ood control, economic development and electricity and thus creating TVA.

Business Insider | Summer 2016

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Thanks to the generous donations of those that

attended, we were able to provide Safe Haven dozens of items that will be used by families in their program.

Picture above (L-R): Amy Bunton, Pathway Lending; Mendy Mazzo, Skanska; Amy Martin, Tennessee Chamber of Commerce & Industry; Patricia Bible, KaTom Restaurants Supply, Inc.; Dr. Sheri Meghreblian, TN Dept. of Economic & Community Development

Pictured above: Aundrea Wilcox, MBA; Keynote Speaker Aundrea is the author of two books: Startup Savvy: Strategies for Optimizing Small Business Survival & Success—and Superwoman Smarts: Activating Leadership & Substance, which are both geared to helping women grow personally, professionally and financially.

Pictured above: Evette White, Executive Selection, Opening Speaker

Business Insider | Summer 2016

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the taxpayer has fi led estimated F&E tax payments by the due date for at least two years, but the estimated payments resulted in an underpayment for which penalties and interest accrued, the Department may consider such estimated payments to be fi led in a timely manner for purposes of establishing good and reasonable cause for a waiver in certain circumstances.

B. Rural Economic Opportunity Act of 2016/Jobs Tax Credit. As enacted by 2016 Public Chapter No. 1019 (“PC 1019”), this Act amends the jobs tax credit found at Section 67-4-2109 so as to allow the Department of Economic and Community Development to designate an enhancement coun-ty as either a tier 1, tier 2, tier 3 or tier 4 based upon unem-ployment, per capita income and other statistical data. Further, PC 1019 reduces the 25 qualifi ed jobs requirement under such Section to 20 qualifi ed jobs if the enterprise is located in a tier 3 enhancement county, and reduces such number to 10 qualifi ed jobs if the enterprise is located in a tier 4 enhancement county. Further revisions to the jobs credit are made by PC 1019 so as to encourage qualifi ed job employment in each of the classifi ed tier enhancement counties. PC 1019 is eff ective July 1, 2016, and many of its provisions are applicable to tax years ending on or after July 1, 2016.

C. Qualifi ed Data Center Modifi cations/Jobs Tax Credit. As enacted by 2016 Public Chapter No. 1001 (“PC 1001”), the sales tax requirements for being in a “qualifi ed data center” are relaxed (see the sales tax discussion below). One such relaxed requirement reduces the number of net full-time employee jobs from 25 to 15 during an investment period not to exceed three years, provided that any qualifi ed data center applying for the jobs tax credit under Section 67-4-2109 must certify on its business plan that it has not, within the previous 12 months, been found to be in violation of the federal WARN Act, the Fair Labor Standards Act, or immigration laws. PC 1001 is eff ective July 1, 2016, and shall apply to tax years end-ing on or after July 1, 2016.

II. Sales and Use Taxes

A. Qualifi ed Data Center/Exemption Requirements Relaxed and Expanded. A “qualifi ed data center” is granted a 1.5% sales tax rate pursuant to Tenn. Code Ann. § 67-6-206 with respect to electricity when sold to or used by such center. Pursuant to PC 1001, the conditions for a qualifi ed data center have been relaxed such that the capital investment requirement of$250 million during an investment period not to exceed three years has been reduced to $100 million during such investment period; furthermore the requirement that such investment cre-ate at least 25 net full-time employee jobs has been reduced to 15 net new jobs. Additionally, PC 1001 modifi es Section 67-6-206 so as to provide no tax is imposed with respect to “cooling equipment or backup power infrastructure” when sold to or used by a qualifi ed data center. Th e term “cooling equipment”

is defi ned by PC 1001 to mean cooling systems, cooling towers and other temperature control infrastructure used primarily for and necessary to the operations of a qualifi ed data center; the term “backup power infrastructure” means backup power generation, battery systems and related infrastructure also so used by such center. As stated earlier, PC 1001 shall apply to tax years ending on or after July 1, 2016.

B. Compressed Natural Gas/Exemption. Pursuant to 2016 Public Chapter No. 1070 (“PC 1070”), a sales and use tax exemption has been added to Tenn. Code Ann. § 67-6-329 for“compressed natural gas” when taxed as an alternative fuel pursuant to Section 67-3-1101, et seq. PC 1070 is eff ective July 1, 2016.

C. Retail Accountability Program/2016 Compromise. Th is Program, found at Tenn. Code Ann. § 67-6-410, was ini-tially enacted in the 2012 Legislative Session and required beer and tobacco wholesalers to provide reports to the Department regarding their sales to retailers. Th e Department has used those reports for comparison purposes in reviewing Sales and Use Tax Returns fi led by retailers purchasing from those wholesalers. Based upon statistical analysis, the purpose of such comparisons was to identify retailers that were allegedly underreporting the retail sale of beer and tobacco products. Such comparisons pro-duced numerous assessments against retailers for alleged under-reporting, which in turn increased sales and use tax collections from those retailers. Th ereafter, the Program was expanded during the 2015 Session to include “other categories or types of personal property” as to which the Department could require records from wholesalers; and based thereon the Department established numerous categories of food and beverages sold by wholesalers to retailers for which reports were due. Because of adverse feedback from grocers and other retail taxpayers arising from the 2015 legislation, compromise legislation was passed as 2016 Public Chapter No. 907 (“PC 907”), which became eff ective April 27, 2016. Under this compromise legislation, PC 907 allows the Department to obtain wholesaler reports regarding food, candy or non-alcoholic beverages (including bottled soft drinks), with such reports to be fi led on a quarterly basis and with the fi rst such report due July 25, 2016. Th e De-partment pursuant to PC 907 shall not issue an assessment or notice of proposed assessment to any retailer based solely upon the wholesaler’s report unless the Department fi rst issues to the retailer an inquiry letter setting forth the information that led the Department to its conclusion that additional taxes may be owing and providing the retailer with an opportunity to explain the inconsistencies; and providing for certain relaxed transition provisions involving the sales of food, candy and non-alcoholic beverages, with such transition provisions being deleted on July 1, 2019. As stated by the Department in its public reminder dated June 15, 2016, the Department will not issue any assess-

2016 Tax and Related Legislation continued from page 5

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ments based upon reports from wholesalers of food, candy or non-alcoholic beverages until 2017.

III. Hall Income Tax

A. Angel Investor Credit Established. Pursuant to 2016 Public Chapter No. 1055 (“PC 1055”), which adds new Tenn. Code Ann. § 67-2-124 and is effective for tax years beginning on or after January 1, 2017, a credit is allowable in the amount of 33% of the value of a cash investment by a “an-gel investor” against the liability of such angel investor under the Hall Income Tax in the tax year for which the investment was made. The term “angel investor” under PC 1055 con-tains several conditions, including (among others) that: (i) the investor is an accredited investor consistent with federal law; and (ii) invests in a company which at the time of investment is a small business with high-growth potential (including but not limited to tech- enabled start-ups, companies in the field of consumer products, medical devices, among others), where the company satisfies various conditions. This credit under PC 1055 is limited to $50,000 per angel investor in any tax year, with the maximum tax credits for the 2017 year being $3 million, $4 million for the 2018 year and $5 million for the 2019 and thereafter years. A minimum investment of $15,000, which represents no more than 40% of the capitalization of the company, is required together with numerous other conditions. B. 2016 Rate Reduction/2022 Abolishment.Pursuant to 2016 Public Chapter No. 1064 (“PC 1064”), the current rate for the Hall Tax is: (i) reduced from 6% to 5% at Tenn. Code Ann.§ 67-2-102, and (ii) is intended to be reduced annually by new Section 67-2-124 through enactments of general bills begin-ning with the first Session of the 110th General Assembly. Fur-ther, the Hall Tax is eliminated in that new Section 67-2-124 for tax years that begin on or after January 1, 2022.

IV. Other Tax Related Legislation

A. Property Taxes. Several property tax bills were again enacted during 2016, including, but not limited to: (i) 2016 Public Chapter No. 853 authorizing a county holding land due to delinquent taxes to sell such land during the redemption period under certain conditions; (ii) 2016 Public Chapter No. 938 changing the formula for calculating hearing costs in prop-erty tax appeals before the State Board of Equalization; and (iii) 2016 Public Chapter No. 1085 allowing a county which has obtained property at a delinquent property tax sale to evaluate the financial and environmental risks of the property, and when necessary to petition the Chancery Court to void the sale and refer the property to a special master for a deferred sale.

B. Fantasy Sports Tax Act. As part of larger legislation found at 2016 Public Chapter No. 978 (“PC 978”), a new tax: (i) is found at Tenn. Code Ann. § 67-4-3201, et seq.; (ii) is imposed at the rate of 6% on all adjusted revenues of a fantasy sports contest offered by a fantasy sports operator (as defined in and pursuant to the larger legislation) to Tennessee consum-ers and is in addition to other taxes; (iii) shall be collected and administered by the Department; (iv) shall be due and payable quarterly as required by PC 978; and (v) shall take effect July 1, 2016.

V. Department’s Rulemaking Initiatives

In addition to the legislative initiatives during 2016, the Department proposed regulations which were filed with the Tennessee Secretary of State on February 25, 2016. A hearing on those proposed regulations was held on April 26, 2016, and those proposed regulations are proceeding through the promul-gation process to be effective this year.

Although these proposed regulations cover a wide variety of topics, there are five general categories addressed by these proposed regulations: (i) taxpayer remedies for disputed taxes; (ii) business (or gross receipts) taxes; (iii) sales and use taxes; (iv) franchise and excise taxes (other than market-based sourcing for the receipts factor of the apportionment formula); and (v) franchise and excise taxes involving market-based sourcing for the receipts factor in regard to sales other than sales of tangible personal property.

Many of these proposed regulations are associated with substan-tive changes to Tennessee’s tax laws. Examples of such substan-tive changes include (but are not limited to): (i) proposed sales and use tax regulations dealing with the new research and de-velopment exemption, effective July 1, 2015; and (ii) proposed franchise and excise tax regulations for the new market-based sourcing within the receipts factor of the apportionment formula for sales other than sales of tangible personal property, effective July 1, 2016.

A copy of these proposed rules can be found through the Ten-nessee Secretary of State’s Office or by contacting the Tennessee Chamber of Commerce and Industry.

VI. Conclusion

Many of these new tax and related initiatives are very complex. As a result, before acting upon or in regard to these new initia-tives, careful consideration of the foregoing is required in the context of your particular situation.

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Cornerstone Investors The Tennessee Chamber of Commerce recognizes stakeholders who invest at exceptional levels. These leading companies are shaping the future of Tennessee and help make the

state a better place to work and live.

CAPSTONE

KEYSTONE

FOUNDATION

Aegis Sciences Corporation Altria Client Services Anheuser Busch Companies ASSA ABLOY Door Group AT&T Atmos Energy Bass, Berry & Sims PLC Brother International Corp. Burr & Forman, LLP Caterpillar, Inc. Chattem, Inc. Chemours Company Clean Line Energy Partners LLC Comdata Community Health Systems Consolidated Nuclear Security Cooper Standard Automotive

CSX Transportation Dana Corporation Eagle Bend Manufacturing, Inc. Electrolux North America Embraer Aircraft Maintenance Svcs. Franke Foodservice Systems General Mills Highway Transportation Logistics International Paper Company Jackson Lewis PC Jackson National Life Insurance Co. John Deere Power Products JTEKT Automotive Tennessee Vonore Kellogg Company Koch Companies Public Sector, LLC LBMC Mahle Industries, Inc.

McKee Foods Corporation Medtronic – Spinal & Biologics Merck & Co., Inc. MTSU Jones College of Business Mountain States Health Alliance Mullican Flooring Norfolk Southern Corporation Nucor Steel of Memphis, Inc. Orgill, Inc. Packaging Corp. of America Pearson Pinnacle Financial Partners Planters Bank Regions Bank Resolute Forest Products Skanska

Snap-On Tools

State Farm Mutual Insurance Stites & Harbison Taylor Farms TN, Inc. Tennessee Farm Bureau Federation Tennessee Tech University Tennsco Corporation TVA Tyson Foods United Parcel Service University of Tennessee US Bank Valero Memphis Refinery Vanderbilt University Waller Wal-Mart Stores Inc. Wellmont Health System Whirlpool Corporation

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414 Union StreetSuite 107

Nashville, TN 37219

PRESORTEDFIRST CLASSU.S. POSTAGE

PAIDNASHVILLE, TNPERMIT NO. 635

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Upcoming Training Courses & Chamber Events 2016

The Tennessee Chamber provides access to business and political decisionmakers, educational events, updated government policies, Capitol Hill to shape policies in support of a favorable business climate and protection against unfavorable legislation

and bureaucracy.

Date Event Training LocationJuly 13 Overtime Rule NashvilleJuly 14 Industrial Air Regulations NashvilleJuly 21 Soft Skills Boot Camp JacksonJuly 27 Soft Skills Boot Camp KnoxvilleAugust 2 Overtime Rule MemphisAugust 3 Overtime Rule JacksonAugust 4 Soft Skills Boot Camp MurfreesboroAugust 12 300 Log Recordkeeping Mt. Juliet/NashvilleAugust 17-19 TCCE Annual Conference Jackson August 23 *Regional Meeting * KingsportAugust 24 Industrial Air Regulations KnoxvilleAugust 25 300 Log Recordkeeping MorristownAugust 30 *Regional Meeting* JacksonSeptember 7 *Regional Meeting* MurfreesboroSeptember 8 300 Log Recordkeeping MemphisSeptember 13 Basic Safety ChattanoogaSeptember 14 GHS/Hazard Communication ChattanoogaSeptember 16 Basic Safety ClarksvilleSeptember 21 Annual Tax Conference FranklinSeptember 28-30 TEDC Fall Conference Nashville October 12 Maintenance-Related TOSHA KnoxvilleOctober 13 *Regional Meeting* ClevelandOctober 13 Maintenance-Related TOSHA Mt. Juliet/NashvilleOctober 17 2nd Annual Golf Tournament Hermitage Golf CourseOctober 20 Basic Safety MorristownOctober 26-27 33rd Environment & Energy Conference Montgomery Bell State ParkNovember 2 Dock & Warehouse Safety MurfreesboroNovember 9 Bloodborne Pathogens MurfreesboroNovember 16 Combustible Dust JacksonNovember 17 Construction Silica JacksonNovember 30 Construction Silica KnoxvilleDecember 2 Construction Silica MurfreesboroDecember 2 Women in Manufacturing NashvilleDecember 6-9 30-Hour General Industry OSHA Course Murfreesboro