Download In This Issue: - Tennessee Chamber of Commerce

Business Insider
TENNESSEE CHAMBER
OF
COMMERCE & INDUSTRY
In This Issue:
-Legislature Returns for 2016
-Chamber Releases 2016 Agenda
-Cornerstone Membership Benefit Update
- TN Chamber Business Open: Golf Tournament
-LIFT Report: Lightweighting-Related Job Demand
-Public Affairs Conference/Boots ‘n Business Reception
WINTER 2016
Business Insider | Winter 2016
IN THIS ISSUE
Page 5
2016 Board of Directors
Executive Committee
Greg Martz, Chemours, Chairman of the Board
Miles Burdine, Kingsport Chamber of Commerce, Chair of Education &
Workforce Development Committee
Larry Combs, Brown-Forman/Jack Daniel Supply Chain,Incoming Chair
Eva Lynne Disbro, McKee Foods Corporation,Chair of Human Resources Committee
James Fenton, Gallatin Economic Development Agency, TEDC Representative
Catherine Glover, Tennessee Chamber of Commerce & Industry, President
Carl Hartley, Baker, Donelson, Bearman, Caldwell, Chair of Taxation Committee
David Locke, BlueCross BlueShield of Tennessee, At Large Member
Kelly McCreight, Hamilton-Ryker Company, Secretary-Treasurer
Chris Moore, Alcoa, Inc., Chair of Environment & Energy Committee
Kyle Spurgeon, Jackson Chamber of Commerce, TCCE Representative
Michael Stagg, Waller, General Counsel
Clay Thompson, Caterpillar, Inc. Past Chair
Dennis Wagner, AT&T, Chair of Public Affairs Committee
Rebecca White, LyondellBasell Industries, Chair of Manufacturing Excellence Council
2015 Legislative Survey - Results
Page 6
2016 TN Chamber Agenda
Page 8
Environment and Energy Awards
TN Chamber Education & Workforce Project
Page 10
Tn Chamber Business Open Golf Tournament
Page 12
Business Tax
Page15
LIFT Report
Page17
Sustainability Spotlight
Page18
Board Members
East Region
Valoria Armstrong, Tennessee American Water Company
Diana Bullock, Electric Power Board of Chattanooga
Jerry Caldwell, Bristol Motor Speedway
Keith Carver, University of Tennessee
Robert Gagliano, BASF Corporation
Charley Poe, Eastman
Roger Smith, Domtar Paper Company, LLC
Russ Watkins, Partners
Boots ‘n Business
Page19
Cornerstone Investors
Staff
Middle Region
Jeff Bates, TA Staffing
Tracy Brown, US Bank
Stacey Cothran, Waste Management
Allyson Park, Mars, Incorporated
Rhedona Rose, Tennessee Farm Bureau Federation
Jim Schmitz, Regions Bank
James Spradley, Standard Candy Company, Inc.
Gary Williamson, Bridgestone Americas, Inc.
Catherine Glover – President
West Region
Gene Baker, Smith & Nephew
Jason Bates, Toyota Motor Manufacturing
Bryan Everette, TBDN TN Company
J. Lee Fry, Dixie Gun
Willie Gregory, Nike, Inc.
Rachel McConnell, Kellogg Company
Jim Mulroy, Jackson Lewis PC
A.J. Sain, FedEx
Rick Schreiber, BDO
Carolyn Davis – Special Events Assistant
At Large
Eddie Davidson, Piedmont Natural Gas Company
Beth Fortune, Vanderbilt University
Jeff Hollett, John Deere Power Products
Teresa Lewis, Embraer Aircraft Maintenance Services
Andrea Lindsley, dvl/seigenthaler
Bill Penny, Burr & Forman LLP
Denise Rice, Cormetech
Max Shilstone, Clean Line Energy Partners LLC
Bradley Jackson – VP of Government Relations & Community Affairs
Rosie Dykes – VP of Administration
Suzie Lusk – Associate VP of Event Management
Amy Martin – Associate VP of Environment & Energy
Berton Pinkham – Membership Director
Shannon Tate - Account Administrator
LaDonna Copeland - Executive Assistant to the President
Susan Ubico – Front Office Assistant
For Advertising, please contact
Carolyn Davis
[email protected]
Published by the Tennessee Chamber of Commerce & Industry
414 Union Street, Suite 107
Nashville, TN 37219
The Business Insider is traditionally published three times a year.
Please visit www.tnchamber.org for archived issues.
On the Cover
On December 7th, 2015 the Tennessee Chamber hosted our annual Boots n’ Business
legislative reception and Public Affairs Legislative conference. Held at the Bridge
Building in downtown Nashville, the event is an annual gathering of business leaders
and elected officials meeting to prepare for the upcoming legislative session and for
valuable networking.
3
Business Insider | Winter 2016
Chairman’s Corner
Greg Martz
With my first column as Chairman
of the Board of Directors for the
Tennessee Chamber of Commerce &
Industry (TCCI), I would like to take
this opportunity to say how honored I
am to be able to serve in this role. I
would like to thank Clay Thompson
and Mike Robbins, who have set high
standards as past Chairs, and I will
do my best to continue this level of
excellence.
It has been a chaotic summer for me.
Back on July 1st the DuPont Company
spun off its chemicals businesses and
formed The Chemours Company.
So after 27 years with DuPont, I am
now part of Chemours and we are
embarking on a journey to be the best
chemicals company in the world. I
have a real passion for the Chamber
and the work that we do, and despite
having plenty on my plate from the
spin off, there was no question about
taking on the role of Chair.
I hope that I bring a valued
perspective to the Chair role in that my
entire career has been in Manufacturing.
TCCI’s industrial division is also the
Tennessee Manufacturers Association
(TMA), and I am going to work with
Catherine and her team to strengthen
that side of the organization. I have
a passion for education and workforce
development, areas that have had a
lot of attention in TN for the past
few years with a tremendous amount
of progress being made to close the
skills gap. I am a proud TN Promise
mentor and Chair of our Humphreys
County tnAchieves Advisory Council,
and I strongly encourage everyone
reading this to consider becoming a
4
A Message from the President
mentor sometime in the future. There is
nothing more fulfilling than working with
students who would otherwise not have
had the chance to pursue a post-secondary
education and see their dreams come
true.
Combining TN Promise with
TN ReConnect, WGU, LEAP and other
efforts, Governor Haslam’s administration
has done a masterful job of laying the
building blocks to make post-secondary
education a reality for every Tennessean
and a model for the entire United States.
The state chamber will continue to be
strong supporters.
We are in the throes of what I am sure
will be another jam-packed legislative
session with the Chamber’s government
affairs team gearing up to make the
Chamber and our priorities visible and
relevant at the State Capitol. State F&E
tax collections have exceeded expectations,
and one of the big issues will likely be
what to do with the surplus collections.
The Chamber will be actively engaged
in this discussion with TN business’
best interest in mind.
Education
standards and workforce readiness will
also be a lively topic again this year and
the Chamber’s position of the need to
maintain strong standards and relevant
workforce curriculum will not change.
In addition to these important issues, the
Chamber team will also be working on
a variety of other policy issues to ensure
Tennessee’s business climate is protected
for economic growth. Please continue
to follow the status of all issues in the
Legislature through our weekly Capitol
Update newsletter and other Chamber
communications.
Once again, I am honored to be in
the role of Chair and I will do my best to
lead the Board into 2016 and beyond. I
would like to say a special “Thank You”
to all of you who volunteer your time as
a board member, committee member,
and investor in the TN Chamber of
Commerce & Industry. Without you
we could not do what we do or have
the influence that we do. Please do
not hesitate to offer suggestions on how
the Chamber can improve, and we
will continue to support your business
interests along with the overall economy
of this great state of Tennessee.
As we officially begin the New Year
and the new legislative session, this
my first column of 2016 will focus on
the quantitative return on investment
member businesses of the Tennessee
Chamber of Commerce & Industry
have/will realize as a result of our
advocacy, grassroots coalition building,
policy research, and through the fine art
of influence.
Due directly to our efforts during
the 2015 legislative session, and
attributed greatly to our issue-expert
committees and engaged statewide trade
collaboratives, overall the state chamber
has saved businesses in the state close to
$52 Million! We gather these figures
citing reputable sources that include
official fiscal notes produced by the
Legislative Fiscal Review staff and tax
information drawn mostly from the
Senate and House Finance Ways &
Means Committee.
Q As introduced by Governor Haslam,
The Revenue Modernization ACT
would have cost business over $45
million in additional recurring taxes.
Changes to this bill pushed by the
Tennessee Chamber lowered the
overall impact to $8 million. These
changes included reducing business
sales taxes in the bill and also changing
Tennessee’s Excise tax apportionment
factor, benefitting a number of
Tennessee businesses. The legislature’s
fiscal review notes that these provisions
pushed by the Chamber saves business
over
$37 Million…annually!
Q Workers Compensation has always
been an issue that employers have
relied upon the Chamber to take the
lead on. The 2013 reforms initiated
by the Chamber are already showing
savings for many employers. Loss
Cost filings from the National
Council on Insurance (NCCI) notes
decreases:
35% ... Combined Decreases
including Chamber supported
reforms between 2004 and 2013
Q The estimated amount saved by
business annually by expanding tax
sales and exemption for existing
Catherine Glover
industry to include machinery used
for research and development is
estimated to save business over
$4.6+ Million
…and there’s much more!
That said, this work and the
subsequent outcomes of all business’
wins and losses are generally in the
hands of Tennessee’s elected body.
To encourage elected officials and
candidates who support a strong
business climate, the state chamber
has in place a dynamic Political Action
Committee (Tennessee Association
of Business PAC) that is designed to
support and influence quantitative
wins for business, supporting
legislators that understand the needs
of business.
Although the chamber doesn’t
endorse candidates, this political
action committee provides the
Chamber the ability to contribute
to candidates who understand the
importance of a healthy economic
climate.
I welcome a time to meet with
your company to further discuss
the chamber’s efforts, our PAC, and
issues/opportunities that lie ahead for
Tennessee business and industry.
*The TN Chamber PAC contributes
only to candidates running for state
and local offices. Contributions of all
sizes are welcome and can come from
corporate or individual donations.
Business Insider | Winter 2016
TENNESSEE CHAMBER MEMBERS RESPOND TO 2015 LEGISLATIVE SURVEYS:
RESULTS SHOW CLEAR PRIORITIES
Each year, the Tennessee Chamber conducts three surveys to gauge our
membership’s interest and to help shape our legislative agenda. To prepare for
the upcoming 2016 legislative session, we compiled the results of this year’s
surveys (a total of 17 questions) covering the areas of education and workforce, the economy and taxes, and business regulations in Tennessee. Below
you’ll find a summary of each survey and the main takeaways.
EDUCATION & WORKFORCE
The Chamber’s first survey focused on Tennessee’s current workforce and
education issues. What we found is that respondents believe job candidates
are lacking necessary soft employability and academic skills which may or
may not be a direct result of the state of education here in Tennessee. Our
survey found that one path to correcting this issue is implementing or extending current workforce programs at the K-12 and post-secondary levels to
better prepare students. Example programs are internships, dual enrollment
classes and clear career pathways for students. It’s important to note that over
the past few years, many workforce development programs have emerged in
Tennessee. Respondents believe strongly that programs, such as LEAP, the
Tennessee Promise, and Governor Hallam’s Drive to 55 are ultimately beneficial to employers’ needs.
Supporting the results from our previous survey employers believe that
the lack of a skilled workforce is the #1 threat to business growth in Tennessee, followed closely by federal regulations. Another issue important for
employers is K-12 testing and assessments. We surveyed our members on the
current trend of parents opting out of required yearly assessment tests. We
found that respondents want to “stay the course” and believe students should
be required to test across the board to measure achievement and maintain
accountability.
ECONOMY, TAXES & BUSINESS
The Chamber’s second survey covered Tennessee’s overall economy, tax
climate and legislative makeup. We also found that respondents mostly believe that Tennessee’s economy is moving in the right direction and that state
business taxes are fair. This finding correlates with the high marks given to
Tennessee’s elected leaders for the job they are doing to promote business
growth, resulting in economic job growth.
Tennessee is currently seeing a substantial tax revenue surplus, mostly from
F&E collections. Respondents of our survey believe the benefits from the
collection should be used in education, healthcare, etc. We also surveyed
our members on the state of our roads and infrastructure. State leaders have
noted that decreased federal and state funding has prevented necessary maintenance. We found that a majority of respondents support fuel tax increases
with input from local businesses and attention to their specific needs.
BUSINESS REGULATIONS
The Chamber’s final survey covered regulations and the areas of healthcare
and state programs. We found that in the environment and energy arena,
policy changes through litigation and state regulations are primary concern
for employers. Another major concern is healthcare costs; around half of respondents support a state-run healthcare expansion program similar to Insure
TN utilizing federal dollars, with strong financial accountability measures.
Tennessee’s unemployment compensation program has gone through
many changes over the years. Our survey found a majority of respondents
approve of the TN current UI system.. Employers responded similarly to
Tennessee’s occupational safety and health program (TOSHA).
Business leaders indicate that local regulations are not a burden, indicating that federal/ state regulations have larger negative impacts on business.
Respondents are generally satisfied with Tennessee’s legal climate but support
streamlining the system. The Chamber worked in the legislature to enact comprehensive workers’ compensation reform in 2013. Respondents are generally
favorable about the reform and neutral to making changes at this time.
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Business Insider | Winter 2016
2016 Tennessee Chamber Agenda
The Tennessee Chamber of Commerce & Industry is proud to
present our annual Legislative and Policy agenda. Serving the
interests of small, medium and large businesses across the state,
the Tennessee State Chamber also serves as the Tennessee
Manufacturers Association. We boast a vast and representative
statewide network of local chamber and member companies in
legislative districts all across our great state. We are dedicated to
promoting policies that reduce employer costs, provide economic
opportunities for all Tennesseans, and make Tennessee the best
state in the nation in which to do business.
Our 2016 agenda is developed with input from the Chamber
Board of Directors, business leaders across our state, and input
from local chambers, our grassroots partners. Throughout our
legislative agenda, the Tennessee Chamber’s core principles of
free enterprise and removing obstacles that impede job creation
and slow economic growth are reiterated. Our members provided
input on policy and legislative strategy through workgroup
conference calls and surveys on taxes, human resources,
health care, legal reform, education & workforce development,
and environmental and energy policy issues. Throughout our
process business leaders from across the state have shared their
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Education and Workforce
Labor, Education, Alignment Program (LEAP)
funding – Business responses to chamber surveys identify workforce
concerns as a major impediment to existing and future economic growth.
The Chamber supports enhanced funding for the LEAP program and
believes local workforce programs are one of the most effective tools
for improving Tennessee’s workforce. For Tennessee employers, the
LEAP program is showing results from a number of local workforce
partnerships that include local chambers, economic development
agencies and higher education institutions working to align the local
workforce needs of employers.
Tennessee Ready Standards – Chamber members
note strong support for uniform education assessment efforts aligned
with curriculum and ensured accountability in our schools. This is
especially crucial to ensure Tennessee students are prepared for both
post-secondary education and the workforce.
Business Taxes and the Economy
Reform Tennessee’s Franchise & Excise tax
estimated payment system – Fluctuations in business tax
6
collections over the last several years point to the need for improving the
method by which Tennessee Businesses estimate and pay F&E taxes. In
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with as Tennessee is one of the only southeastern states that does not
allow annualized estimated payment system for F&E taxes. This volatility
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The Chamber is supporting legislation to remedy this situation.
Revenue Accountability Program (RAP) – The
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expanded RAP program enacted in 2015. Chamber research shows
few other states have gone as far as Tennessee in approving this type of
expanded reporting requirement and collection programs. We will work
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Business Tax collections - Legislative efforts to defeat
anti-business legislation and enact pro-business legislation is paying off.
Recent Franchise & Excise (F&E) collection growth is mostly attributed
to economic growth fueled by business. The Chamber encourages
the legislature to utilize these overcollections in ways that will ensure
future business growth. The Chamber recognizes a number of options
that include business tax reductions, reducing government regulation,
investing in our rainy day fund and targeted investment in programs that
correlate to business growth which will result in continued growth in the
business sector.
Single Sales Factor Apportionment- As many other
states adjust their tax structure to encourage growth in their respective
state, Tennessee must remain competitive. Other states have enacted
single sales factor apportionment for determining the counterpart to
F&E tax liability. This change encourages a strong and stable tax
structure within which existing and relocating companies may thrive. The
Chamber supports the single sale factor formula for manufacturing and
headquartered companies in Tennessee.
Transportation and Infrastructure – Survey
responses show clear business support to improve our road and
infrastructure system. To ensure conservative business principles,
the Chamber believes that any funding increase must come with
accountability measures that include local business input into road
projects, Tennessee remaining a pay as you go state, no toll roads, and
equitable treatment of all transportation companies paying fuel taxes.
Business Regulation / Legal
Tort and Medical Malpractice- Following our support
and grassroots engagement to enact tort reform in 2012, the Chamber
is aligned with other groups in supporting efforts to ensure courts do not
deem that caps approved by the legislature are ruled unconstitutional.
Business Insider | Winter 2016
Asbestos Fund parity – The Chamber is supportive
of legislation that will ensure employer asbestos funds established
to compensate workers for injuries are not abused and used for their
intended purposes.
Workers’ Compensation improvements – The
Chamber is supporting legislation that will make a number of important
adjustments to Tennessee’s workers’ compensation laws and ensure
that Tennessee’s Drug Free Workplace act is more easily used by
Tennessee employers to reduce the abuse of alcohol and drugs at the
workplace.
Small Business Protection from Litigation – The
Chamber and other business groups will be advocating for legislation
that will protect employers with eight or less employees from frivolous
lawsuits involving Tennessee’s whistleblower employment statute.
State legislation addressing local for hire
proposals – Tennessee business expects consistent application of
employment regulations that include wage and hiring practices. The
Chamber will support legislation establishing that all hiring related
directives should be approved through state legislation rather than a
patchwork of local ordinances.
Unmanned Aircraft use over business- The
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power generating infrastructure, chemical and petroleum manufacturing
and storage facilities. The Chamber wants to ensure businesses are
protected from acts that can pose a safety and privacy risk.
Environment and Energy – The Chamber has been
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compliance cost for all business. We applaud the work of the legislature
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engaging with both TDEC and the legislature.
Seed labeling- The Tennessee Chamber supports
legislation to ensure uniform standards for seeds sold in Tennessee are
established and enforced by the Tennessee Department of Agriculture.
Broadband – The Chamber recognizes that availability to
quality broadband is needed for Tennessee’s overall economic growth.
We support market based incentives to achieve increased utilization and
access to broadband across Tennessee.
Celebrating Manufacturing & Education in Tennessee
The Tennessee Chamber of Commerce & Industry was proud to partner with SM&E,
Nashville Chapter 43 for National Manufacturing Day, October 2, 2015. Tennessee’s
Annual Manufacturing Summit was held at the Adventure Science Center, in conjunction with a VEX Robotics Competition and Welding Simulator Competition. Rated
‘E’ for everyone, the day’s event celebrated modern manufacturing and the impact to
businesses and inspiration for the next generation of manufacturers.
(Above) Lawrence Brown, Executive Director, LIFT, pauses his attempt
at the welding simulator to take a photo with robotics competitors.
(Above) Pictured L-R: Greg Martz, Chemours Company;
Catherine Glover, Tennessee Chamber of Commerce &
Industry; Former Maine Gov. John McKernan, Jr., U.S.
Chamber Foundation
(Above) Pictured L-R: Sean Redmond, U.S. Chamber of
Commerce; Catherine Glover, Tennessee Chamber of
Commerce & Industry; Greg Martz, Chemours Company;
Pamela Gregory, U.S. Chamber of Commerce
7
Business Insider | Winter 2016
Tennessee Chamber of Commerce & Industry Recognizes Ten Outstanding Companies at the
33rd Annual Environment & Energy Awards
The Tennessee Chamber of Commerce & Industry hosted its 33Ud annual Environment & Energy Awards Dinner on October 14 at the Montgomery
Bell State Park Conference Center. The event drew inRYHU 100 attendees including business and industry leaders from across the state as well as
representatives from Tennessee Department of Environment and Conservation (TDEC) and Region IV of the Environmental Protec-tion Agency.
Along with Bob Martineau, Commissioner of TDEC, the Tennessee Chamber recognized nine companies for their environmental performance and
outstanding energy management efforts. The awards were organized by category: Water Quality, Air Quality, Solid & Hazardous Waste Management, Environmental Excellence, and Energy Excellence. RecLSLHQWs were chosen based on their efforts to go beyond compliance to implement sustainable environmental improvements including the capital investment dedicated to the improvement, reduction of consumption/releases of energy,
water, fuel and/or emissions, degree of innovation, long-term environmental benefits and overall significance of the achievement.
Award Winners:
Air Quality Award
Gibson County Utility District in Trenton (under 250 employees)
Marvin Windows and Doors of Tennessee in Ripley
(over 250 employees)
Water Quality Award
Tennessee American Water in Chattanooga (less than 250 employees)
Y-12 National Security Complex in Oak Ridge (over 250 employees)
Solid & Hazardous Waste Management Award
Eaton Corporation in Gainesboro (less than 250 employees)
Y-12 National Security Complex in Oak Ridge (over 250 employees)
Comprehensive Energy Excellence Award
American Snuff Company in Memphis (less than 250 employees)
General Motors – Spring Hill Facility (more than 250 employees)
Comprehensive Environmental Excellence Award
Waste Management, Inc. of TN in Franklin (under 250 employees)
Unilever in Covington (more than 250 employees)
“The Tennessee Chamber is honored to recognize these Tennessee businesses that have demonstrated outstanding achievement toward
environmental protection and enhancement as well as proactive and innovative energy policies" said Amy G. Martin, Associate Vice President
of Environment and Energy for the Tennessee Chamber of Commerce & Industry.
TENNESSEE CHAMBER & U.S. CHAMBER PARTNERS TO LEAD EXCITING EDUCATION & WORKFORCE PROJECT
The Tennessee Chamber of Commerce & Industry is excited to announce our partnership with the American Institutes for Research (AIR), Gallup Inc., and the U.S. Chamber of Commerce Foundation on a year-long project aimed at bridging the information gap between higher education
institutions, employers and students: The Transforming Higher Education: Achieving Better Return on Investment and Employee Engagement
project. The Chamber will serve as the state lead on the project leveraging AIR’s expertise as a national leader in the development of web-based
applications that let students and families better understand returns to their education spending, the Foundation’s deep connection to the employer
community across the country, and Gallup’s ground-breaking work on employee engagement.
At the core of the project are new, state-specific web applications—called Career-Focused College Planners—that allow students to learn more
about programs of study in their state that provide preparation for growing middle-class wage jobs. This includes information on how long students can expect a program will take to complete, how many graduates find employment after finishing the program, and their average wages after
leaving school. Students will also be provided never-before-available insight into the working life of local professionals in their field of interest.
Tennessee students have more choices than ever to pursue higher education, the surest way of getting the knowledge and skills they need to find
a job and earn middle-class wages. But they also face more complex choices. Which academic program is right for me? How much will it really
cost? And how can I be sure that I’ll maximize return—both in dollars and cents and quality of life—on my higher education investment? Over
the next year, the partnering organizations will be working with business, community, and education leaders to launch the next generation of tools
like EduTrendsTN (www.edutrends.tn), which already helps thousands of Tennesseans make smarter choices about postsecondary education each
year. The Tennessee Chamber and U.S. Chamber will be reaching out to local chambers on our engagement efforts. We look forward to sharing
our progress and the final product in late 2016.
8
Business Insider | Winter 2016
Tennessee Chamber Cornerstone Membership Benefit Update:
What It Means for You
Tennessee’s strong pro-business environment didn’t happen overnight. Since 1912, companies and individuals who have invested
in the Tennessee Chamer of Commerce have played an important
role in shaping our state’s business-friendly environment. We at the
Chamber are proud of our track record and grateful for the strong
support we receive from companies across our great state.
In recognition of the vital role all of our investors play in the
Chamber’s success, we are pleased to announce an updated Member
Benefits Structure for 2016. While our investment levels have not
changed, many Chamber member benefits have been enhanced and
clarified. There are even some new benefits such as complimentary
tickets to training classes and events.
Please take a moment to look through the new Chamber investment levels and feel free to contact me to discuss ways we can help
you maximize the benefit your company receives from being a member of the Tennessee Chamber of Commerce.
Berton Pinkham, Membership Director
Complimentary copies of Business Insider publication
Eligibility to participate in Chamber policy councils
Two complimentary registrations to a Chamber TOSHA-related seminar
Invitation to Annual Board / Top investor reception
Company name listed on Chamber website
Specialized, individual access to lobbying team
Company name and web link on Chamber website, recognition in Chamber publications
Preference on sponsorship and advertising opportunities
Company name, link and logo on Chamber website, recognition in Chamber publications
Complimentary booth at one Chamber training event
First right of refusal on most advertising and sponsorship opportunities
One complimentary ticket to annual Chamber Golf Tournament
Annual meeting with Chamber President and Senior Staff to discuss policy
Company name, link and logo on Chamber website, prominent recognition in publications
Recognition, including signage with logo, at signature Chamber events
One additional complimentary ticket (total of two) to annual Chamber Golf Tournament
Weekly Capitol Updates with Chamber President and senior staff during legislative session
Personalized Day on the Hill with Chamber staff during legislative session
Two additional complimentary tickets (total of four) to annual Chamber Golf Tournament
Primary option to lead high-level Chamber initiatives
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Chairmans Council ($50,000+)
Opportunities to provide legislative feedback on behalf of your company/industry
Capstone ($20,000+)
Receive weekly legislative reports during legislative sessions
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Keystone ($10,000+)
Access to Chamber Government Affairs network in Nashville
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Foundation ($5,000+)
Discounts on safety, regulatory, and other Chamber-sponsored training classes/events
Equity Partner ($3,000+)
Discounts with Chamber affiliate Companies (Aramark, WorkAmerica, FedEx, UPS, etc.)
Standard Investor ($8/FTE + $500)
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11
Business Insider | Winter 2016
BUSINESS TAXES WILL AGAIN BE IMPORTNT 2016 ISSUE
FOR TENNESSEE CHAMBER
By Carl Hartley and Bradley Jackson
Tax and related initiatives played a
significant role in the outcome of the
2015 Legislative Session, and may
once again be front and center in the
2016 Session. The purpose of this article is to attempt at forecasting some,
but certainly not all, potentially significant tax initiatives which could be
deliberated during the 2016 Session.
A.
Record Tax Collections Forecasted for Fiscal 2016. Favorable
State tax collections may certainly
influence the Legislature in a number of ways as various tax
initiatives are deliberated during the 2016 Session. By way
of background, reported state and local tax collections for
the State’s fiscal year ending June 30, 2014 were approximately $14.1 billion, well below the budgeted expectations
for that fiscal year at least with respect to the State’s anticipated tax revenues. On the other hand, for the fiscal
year ending June 30, 2015 the total collected revenues as
reported by the Department exceeded $15.1 billion, which
was characterized as being record collections by Commissioner Richard Roberts during the State’s December 1, 2015
budget hearings. Commissioner Roberts also stated during
those budget hearings that the total tax collections expected
for the fiscal year which ends June 30, 2016 are anticipated
to be another record-setting amount.
On a comparative basis, Tennessee franchise and excise taxes have
gyrated significantly over the last several years. For instance, and
based on summaries published on the Department of Revenue’s
website, total F&E collections reported by the Department for the
fiscal year ending June 30, 2014 were down over $160 million from
the previous fiscal year, while those business taxes for the fiscal year
ending June 30, 2015 were higher by over $338 million in comparison to fiscal year ending June 30, 2014. State sales tax collections,
a large component of which is borne by business, were higher by
approximately $249 million in the fiscal year ending June 30, 2014
as compared to the prior fiscal year; and finished over $424 million
higher for the year ending June 30, 2015 in comparison to the year
ending June 30, 2014. Thus far during the fiscal year which will
end June 30, 2016, franchise and excise tax collections are higher
by over $158 million through December 2015 in comparison to
the same months during the fiscal year ending June 30, 2015, and
State sales tax collections are higher by over $268 million through
December 2015 in comparison to the same period for the fiscal
12
year ending June 30, 2015.
Commissioner Larry Martin, Department of Finance and Administration, has stated from time to time that the recent better-than-expected F&E collections may be attributable to one-time events.
However, and assuming just for the moment that tax collections
in the current fiscal year do not significantly reverse course, there
is a reasonable expectation that Commissioner Roberts’ testimony
during the December 1 budget deliberations are accurate -- that is,
there will be a material increase in total tax collection for the year
which will end June 30, 2016. Favorable State tax collections may
certainly influence the Legislature in a number of ways as various
tax initiatives are deliberated during the 2016 Session.
B. Potential Tax Deliberations in 2016. Among the many tax
topics that could be deliberated during the 2016 Session are
the following:
Sales/Use Taxes
Revenue Accountability Program (RAP) — The Department of
Revenue last session was successful in advocating for legislation
to expand the RAP program requiring wholesalers in a number
of business areas to submit reports of sales to retailers. The Department extrapolates information from those reports in order to
compute the amount of sales which a retailer should have made
according to the Department based upon the purchases from those
wholesalers, and then compares those computed sales to the actual sales reported to the Department by the retailer. This RAP
expansion has been questioned by the Tennessee business community as overly broad, reliant upon false assumptions and requiring
burdensome paperwork compliance. Further, a number of business
organizations including the Chamber are concerned about these
extrapolation/computation comparison type audits. The repeal of
the 2015 RAP expansion may be sought. The Department is continuing to support the expanded RAP and will oppose efforts to
roll back the expansion.
Remotely Accessed Software — Enacted during the 2015 Legislative Session as part of the Revenue Modernization Act (“RMA”),
this new tax measure is effective as of July 1, 2015 and allows the
Department to assess the tax against a taxpayer in Tennessee accessing out-of-state software in the possession of an out-of-state dealer
(or in the possession of a third-party on behalf of such dealer) who
provides the software. While there are a number of exemptions
included within this initiative, the Chamber may be asking the
Legislature in 2016 to consider narrowing the taxable circumstances or broadening the exemptions, or both.
Business Insider | Winter 2016
Click-Through Nexus — Also part of the RMA, the Department
as of July 1, 2015 now has the authority to presume that an out-ofstate dealer has a representative, agent or solicitor operating in this
State if the dealer enters into a contract with one or more persons
in Tennessee under which that person for consideration refers potential customers to the dealer, and the dealer’s cumulative gross
receipts from retail sales referred to the dealer by all of the Tennessee residents with this type of agreement exceeds $10,000 during
the preceding twelve months. Although this presumption may be
rebutted by clear and convincing evidence that the person in Tennessee did not conduct activities substantially contributing to the
dealer’s ability to establish and maintain a market in Tennessee,
the Legislature may be asked in this upcoming Session to change
the conditions under which the presumption can be used by the
Department or to modify any of the other conditions required for
the click-through nexus application.
R&D As Industrial Machinery — Another significant tax initiative
supported by the Tennessee Chamber and enacted during the 2015
Session was an expansion of industry machine exemption effective
July 1, 2015 to include machinery, apparatus and equipment, with
all associated parts pertinences and accessories, and any necessary
repair or taxable installation labor, that is necessary to and primarily for the purpose of research and development. The Department is currently proposing regulations including the conditions
for applying the industrial machinery exemption to research and
development. Questions that arise in this regulation making process involving this R&D sales tax exemption may not be resolvable
without further legislation in the 2016 Session.
Franchise/Excise Taxes
Reforming F&E Estimated Payments — The Chamber in 2016
will be working to enact legislative changes to the current estimated F&E payment method. Chamber members believe the current
estimated payment requirements can be punitive to businesses, especially those in a seasonal or otherwise dynamic economic marketplace. The Chamber will be seeking to provide business more
flexibility in estimating F&E tax liability which should help with
compliance and reduce the chances for large fluctuations in collections by the Department.
Market Sourcing for Services/Intangibles — As part of the
above-referenced regulation making process, the Department has
proposed over forty pages of regulations which address the new
market-sourcing legislation enacted as part of the RMA. Several
of these proposed regulations have drawn suggestions for changes
from various organizations and associations. While this regulation
making process is still ongoing, and while some of the suggested
changes may ultimately be incorporated by the Department in its
final version of the regulations to be promulgated, other suggested
changes from the Tennessee Chamber may not be accepted by the
Department. As a result, legislation may be sought during the
upcoming Session to fully address the concerns of such organizations and associations in response to the wording of these proposed
regulations.
Single Sales Factor — Several bills were introduced in the 2015
Session which would have transformed the current three factor
apportionment formula (that is, property, payroll and sales with
double-weighting of sales) to a single sales factor applicable for certain or all taxpayers subject to the F&E taxes. During the closing
days of the 2015 Session, and in recognition of the need to increase
the weighting of sales in the three factor apportionment formula,
the Chamber successfully pushed to amend the RMA so as to
triple-weight the sales factor effective for tax years beginning on
or after July 1, 2016. However, in view of recent competitive developments around Tennessee with other states adopting the single
sales factor formula, expect proponents in Tennessee to renew their
request of the Legislature to enact a transition from the current
three factor formula to the single sales factor even if that transition
(patterned after statutes in some surrounding states) is implemented over several years.
Highway Gasoline and Diesel Fuel Taxes
Despite the growing need for highway and infrastructure improvement in Tennessee, most observers believe that a fuel tax increase
will not materialize in 2016. A number of legislators have expressed
concern or unwillingness to vote for a fuel tax increase even though
various construction and other businesses have signaled their support for a reasonable increase. Recently, Governor Haslam indicated that he will not propose an increase for 2016. However, please
stay tuned to this issue since the need for such improvements and
the need for funding are not going away
C. Conclusion. Chamber and business engagement in the tax
area is crucial. Only time will tell as to which tax initiatives will be deliberated during the 2016 Session. However,
and in considering any such initiatives, Tennessee must be
constantly focused on the objective of maintaining a stable
and competitive tax environment (i) within which existing
businesses can prosper and expand, and (ii) to which new
businesses wish to locate. Excess tax collections, a significant portion of which have been paid by business, should
be appropriately used to enhance such stability and competitiveness. The Tennessee Chamber of Commerce & Industry intends to continue its work during the next Session to
further this State’s tax stability and competitiveness.
13
Business Insider | Winter 2016
Tennessee Chamber Member Exclusive Discounts & Preferred Pricing:
ARAMARK
The Tennessee Chamber of Commerce & Industry and ARAMARK Uniform Services have partnered to provide members with a
hassle-free service along with the lowest uniform rental rates in the industry. ARAMARK has earned an exceptional reputation for
taking care of its customers. Rent, lease or purchase ARAMARK’S full range of services and large variety
of products at discount prices. Includes 20% Purchase and rental discounts.
Call: 800-272-6275 (1 800-ARAMARK) or Visit: http://www.aramark-uniform.com/ap-tc.html
**Reference National Account ID # 93085 and mention the Tennessee Chamber of Commerce & Industry
CRYSTAL CLEAN
Heritage-Crystal Clean is a nationwide part cleaning, industrial waste disposal and used oil services company with 3
branches covering Tennessee. Chamber members enjoy significant savings on services including: Parts Cleaning Services (Solvent & Aqueous); Vacuum and Used Oil Truck Services; Drum Waste Management and MUCH
more. Visit www.crystal-clean.com/association/association.asp to sign up.
CUSTOMIZED SHIPPING—FedEx
Tennessee Chamber Members are eligible to receive exclusive discounts and
preferred pricing with the leading transportation providers in the industry. The Chamber has partnered with FedEx, YRC (Yellow &
Roadway), USF Companies & New Penn and UPS Supply Chain Solutions. To enroll in the TCCI Shipping Program, call 1-800MEMBERS (636-2377) or visit www.1800Members.com/TCCI.
HUMAN RESOURCES LIBRARY
Find quick labor law answers with our guides, written in plain English.
The 7HQQHVVHH+XPDQ5HVRXUFHV0DQXDO and 0RGHO3ROLFLHVDQG)RUPVIRU7HQQHVVHH(PSOR\HUV are two
tools that can help your business by giving you access to quick, HR advice, in layman’s terms. With these HR
compliance guides, you will save time, money and headaches when managing your workplace. Tennessee
Chamber members save 20% off any product on hrsimple.com. Place your or der online or by calling (855) 477-4675 – be
sure to use the member discount code: TNCweb16 to get your Chamber member price. Additional publications are also available.
You can find out more about the packages available and extra benefits at hrsimple.com/TN.
OFFICE MAX
Tennessee Chamber members enjoy substantial savings of 31% to 88% off the manufacturers’
list price on frequently purchased items, and get reduced pricing on more than 25,000 products
and more than 5,000 environmentally preferable products, as well as savings on digital print services, furniture, technology and paper. Whether you order online or at an OfficeMax store, your exclusive member discounts apply. This member program offers: exclusive member pricing; Award-winning customer service; No-hassle returns; Free delivery on in-stock orders over $50. Call 1-800636-2377 to request more information on setting up your account.
SHEAKLEY PAYROLL
Sheakley has been assisting employers nationwide from small family owned businesses to large multi-state corporations since 1963. Saving members time and money when it comes to processing your payroll, Sheakley PaySystems
is equipped to render exemplary service coupled with state of the art technology to assist with payroll needs. Our
partnership with Sheakley affords members to receive exclusive pricing (25% off regular pricing), a wide breadth
of services and value added benefits.
**Call or email Donnie Sutton at (877) 877-8144 x 13173 or [email protected].
WORKAMERICA
WorkAmerica is supported by the TN Colleges of Applied Technologies statewide to help employers find the right talent that meets
your skilled trade hiring needs. With our Talent Pipeline Management services, we will be your direct resource to all 56 campuses
across the state of Tennessee as well as nationwide with our extensive school network.
Call or email Michael Colonnese at (202) 412-4940 or email, [email protected].
0HPEHUVRQO\SULFLQJDWRIIRIVWDQGDUGSODFHPHQWIHHV
14
Business Insider | Winter 2016
LIFT Report: Lightweighting-Related Job Demand in 5-State Region Surges,
Encourages Advanced Manufacturing Training and Education
Fifth consecutive period marking increased employer demand in Tennessee
Nashville, TN – Demand for lightweighting-related occupations reached new levels in July andAugust 2015 – levels representing
an increase of more than 50 percent since year-end 2014. This, according to a new market report from LIFT (Lightweight
Innovations for Tomorrow) and WIN (Workforce Intelligence Network) – the former a public-private partnership that is developing
and deploying advanced lightweight materials, manufacturing technologies and training programs over a 5-state region – including
Tennessee.
“The positive, upward trend of lightweighting-related job postings means we need to strengthen and accelerate our collaborative
efforts to build a skilled workforce, ready to use new technologies, materials and processes” said Emily Stover DeRocco,
education and workforce director of LIFT. (“Advanced knowledge and skills remain key for our region’s success as an innovation
andmanufacturing hub.” ) According to the new July/August 2015 market report, online job ads for manufacturing jobs related
to lightweighting in Tennessee grew by 25 percent, or 9,800 postings, from May/June 2015. July and August marked increased
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ads in Tennessee, 31 percent of employers offered salaries of $50,000, and more than 43 percent required a bachelor’s degree
or above. Laborers and freight, stock and material movers regained their spot as the most in-demand jobs in July/August 2015,
outpacing maintenance and repair workers that previously led in May and June 2015.
“Since the end of 2014, Tennessee lightweighting job posting growth has increased by 162 percent,” Catherine Glover, President
of the Tennessee Chamber of Commerce & Industry andTennessee Manufacturers Association shared. “As this dynamic trend
continues, it is our goal tosustain and grow opportunities in in the state as we cultivate an engaged, ready-to-work advanced
manufacturing talent pipeline.
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Education (Press release).
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15
Business Insider | Winter 2016
GLOBAL DEVELOPMENT,
DIPLOMACY & DEFENSE,
BENEFITS TO TENNESSEE
On December 18, at the Renaissance Hotel, Nashville, Catherine Glover, President of the Tennessee Chamber of Commerce &
Industry served as moderator of a luncheon focusing on the importance of global development, diplomacy and defense. Hosted
by the U.S. Global Leadership Coalition (USGLC), the luncheon
was highlighted by a discussion with Ricardo Michel, Director of
Center for Transformational Partnerships, USAID Global Development Lab.
The discussion provided insight regarding innovative ways to
engage in public/private partnerships supporting global solutions.
The USGLC is a broad-based influential network of 400 businesses and NGOs national security and foreign policy experts;
and business, faith-based, academic and community leaders in all
50 states who support a smart power approach of elevating diplomacy and development alongside defense in order to build a
better, safer world.
In today’s interconnected world, America must use all of the
instruments of national security and foreign policy at its disposal.
TENNESSEE FACTS & FIGURES
Tennessee exports a huge range of goods and services from
manufacturing to cotton, computers to its world-famous whiskey,
and from aviation to automobiles. Tennessee’s transportation
components and parts are used in vehicles around the world.
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83 percent of Tennessee companies that export their products are
small or medium sized businesses.
JOB CREATION
x
Trade supported nearly 830,000 jobs in Tennessee in
2013, or 22% of total jobs.1
x
23% of all manufacturing workers in Tennessee depended
on exports for their jobs.2
x
In 2013, 125,700 people in Tennessee were employed
E\DI¿OLDWHVRIFRPSDQLHVWKDWDUHDWOHDVWIRUHLJQ
owned.3
EXPORTS AND GROWTH
America’s smart power tools of diplomacy and development are
underfunded and undermanned, which is why the USGLC supports a strong and effective International Affairs Budget for:
•
Protecting National Security by fighting terrorism, stabilizing weak and fragile states, combating weapons proliferation
and promoting global stability;
•
Building Economic Prosperity by developing international
markets, driving economic development, building micro-enterprises and expanding exports.
Catherine Glover, Tennessee Chamber
& Ricardo Michel, USAID
16
x
Tennessee exported over $33 billion in goods and
services to foreign markets in 2014. Tennessee’s largest
market in 2013 was Canada ($9.1 billion) followed by
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billion), and Belgium ($1.2 billion).4
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enterprises with fewer than 500 employees.5
x
Agricultural exports are important to Tennessee’s
economy, totaling more than $1.9 billionannually.6
x
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over $1.3 billion in exports from 114 companies in 44
communities in Tennessee.
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has invested over $116,550,000 in Tennessee companies
for investment overseas.8
**Information cited from the USGLC website: http://www.usglc.org/
WHQQHVVHHIDFWV¿JXUHV
Business Insider | Winter 2016
BUSINESS LEADERS FOCUS ON
ENGAGING CUBA
On December 7, 2015, Tennessee Chamber president Catherine Glover participated in a roundtable discussion with other business leaders to discuss the importance of normalizing trade relations with Cuba.
Catherine Glover, president of
the Tennessee Chamber of Commerce and Industry and a member
of the Tennessee State Council, said
Monday that an end to the embargo would be an opportunity for the
state to grow customer base and
market share.
She noted that every year, Tennessee typically exports $32.9 billion of merchandise and its export industry supports nearly 159,000 Tennessee jobs. (timesfreepress.com)
At the discussion, Glover emphasized the importance of normalizing trade
relations benefiting Tennessee companies and the products and services they offer.
Panelists included David Plazas, opinion engagement editor, The Tennessean;
Bill Lane, senior director, Global Government & Corporate Affairs, Caterpillar
Inc.; Glen Bolger, project pollster, partner, Public Opinion Strategies (POS); and
moderated by Peter Schechter, director, Adrienne Arsht Latin America Center, Atlantic Council. The Tennessee Chamber and our member companies are supportive
of additional opportunities to sell goods and services to Cuba.
TN MANUFACTURING
SUSTAINABILITY SPOTLIGHT:
AMERICAN SNUFF COMPANY
Industry throughout Tennessee continues to demonstrate their
commitment to environmental protection and proactive energy
management. One chamber member that fully embraces environmental and energy excellence in their operations is the American
Snuff Company. We are proud to showcase American Snuff Company in our inaugural Sustainability Spotlight.
Over the past 18 months, American Snuff Company has made
significant energy
efficiency
investments in their facility to support their
sustainability goals.
They have reduced
their electricity usage
by 21% by investing
over $2.1 million to
replace a black membrane roof with a
white, reflective roof
Curtis Hopper, TDEC Office of Sustainable
on a 787,000 square
Practices, Jamie Bright and Rhonda Roger,
foot building. They
American Snuff Company
invested over $1.3 million to replace metal halide lights with LED’s including light zones
and occupancy sensors and timers on all lights as well as a $420,000
investment to replace 20 inefficient dock doors, dock levelers, and
damaged door shelters and seals.
American Snuff Company also has reduced their natural gas usage
by 7.2% by lowering the set point on their natural gas boilers by 10
degrees.
Not only does American Snuff embrace sustainability from a
corporate perspective, they recognize and incentivize individuals
through an awards program for being proactive in making contributions to the company’s energy reduction efforts. This program
has yielded a significant savings in their energy usage from lowering
a boiler set point to improving efficiencies in their air compressors.
Because of their dedication to sustainability, American Snuff
Company earned the Tennessee Green Star Partnership’s highest
honor in 2014, gained national status with a new EPA Energy Star
Partnership in 2015 as well as won the Tennessee Chamber’s 2015
Comprehensive Energy Excellence Award (less than 250 employees).
American Snuff Company publicly reports (as Reynolds American, Inc.) their environmental and energy achievements and awards
to the CDR (carbon disclosure) report and the DJSI (Dow Jones
Sustainability Index) and also on their parent company’s website,
Reynolds American.
As stated by Gene Crain, Senior Director of Manufacturing, “We
are committed to transforming tobacco by establishing ourselves as
an environmental leader in our industry.”
Congratulations to American Snuff Company on their sustainability successes – the Chamber is honored to have you as a member
and grateful for your environmental leadership.
17
Songwriters pictured (L-R): Shane Minor, John Ozier, Phil O’ Donnell
The Tennessee Chamber on December 7th hosted our annual
Boots ’n Business legislative reception and Public Affairs Legislative
conference. Held at the Bridge Building in downtown Nashville, the
event is an annual gathering of business leaders and elected officials to
network and prepare for the upcoming legislative session. The entertainment for the evening featured some of Nashville’s premier songwriters, an industry unto itself!
18
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
Aramark
ASSA ABLOY Door Group
AT&T
Atmos Energy
Bass, Berry & Sims PLC
Brother International Corp.
Burr & Forman, LLP
Caterpillar, Inc.
Chattem, Inc.
*Chemours Company
CSX Transportation
Dana Corporation
Delek US Holdings
Eagle Bend Manufacturing, Inc.
Electrolux North America
Embraer Aircraft Maintenance Svcs.
Energy Solutions
Franke Foodservice Systems
General Mills
International Paper Company
Jackson Lewis PC
Jackson National Life Insurance Co.
John Deere Power Products
Clean Line Energy Partners LLC JTEKT Automotive Tennessee Vonore
Comdata
Kellogg Company
Community Health Systems
Koch Companies Public Sector, LLC
Consolidated Nuclear Security LBMC
Cooper Standard Automotive Mahle Industries, Inc.
*New in 2015 or 2016
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.
*TeamHealth
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
35(6257('
FIRST CLASS
863267$*(
414 Union Street
Suite 107
Nashville, TN 37219
PAID
NASHVILLE, TN
3(50,712
Upcoming Training Courses & Chamber Events 2016
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February 9
Recordkeeping
Knoxville
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Recordkeeping
Chattanooga
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Surviving
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in the Workplace:
Murfreesboro
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Jackson
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Basic Safety
Johnson City
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Mt. Juliet
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March 1
Tennessee Chamber Annual Meeting
Nashville
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March 8
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Clarksville
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March 22
Maintenance-Related TOSHA
Morristown
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Jackson
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Forklift Safety
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Chattanooga
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Chattanooga
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Basic Safety
Paris
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Jackson
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Jackson
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Kingsport
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GHS & Hazard Communication
Mt. Juliet
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30-Hour OSHAaccessinfluenceprotection
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Murfreesboro
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Sept
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Nashville
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Oct 26-27
34th Annual Environment & Energy Conference Montgomery Bell State Park
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The Tennessee Chamber provides access to business and political decisionmakers, educational events, updated government policies,
LQÁXHQFHRQCapitol Hill to shape policies in support of a favorable business climate and protecion against unfavorable legislation
and bureaucracy.