Volunteer State News

The Tennessee Legislature is currently active with the 114th General Assembly moving forward at a brisk pace. Committee schedules are packed, and some House chairs are considering closing their subcommittees soon. Leaders in both the Senate and House aim to adjourn before Easter, though this goal might be challenging due to the number of bills still under discussion.

Key issues affecting small businesses have emerged during this session. One significant development is the stalled progress of a bill that seeks to double the caps on non-economic damages in civil cases from $750,000 to $1.5 million. This delay is attributed to efforts by NFIB members and others who argue that HB 5, introduced by Rep. Gino Bulso, would result in increased insurance costs and higher settlement demands from plaintiffs' attorneys.

Another legislative initiative involves a constitutional amendment vote in 2026 aimed at banning a statewide property tax. This proposal is advancing in the Senate and is currently under debate in a House subcommittee, marking it as an NFIB priority.

Efforts to lower the e-Verify mandate threshold from 35 employees to five have also hit a roadblock. The previous reduction of this threshold (from 50 employees to 35) already imposes automatic fines of at least $18,000 on small employers and requires them to be listed on the state's labor website if they have never hired an illegal immigrant. Further lowering of this threshold could lead to significant penalties for many unsuspecting small businesses.

Several other labor and regulatory mandates considered harmful have been defeated, while more are scheduled for committee discussions in the coming weeks. The NFIB continues its opposition against excessive new burdens on businesses.

For further inquiries, State Director Jim Brown can be contacted via email at jim.brown@NFIB.org or by phone at 615-874-5288.