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Contact: Marianne Purcell, Legislative Assistant
37 Legislative Plaza • Nashville TN 37243• 615 -741-4400 • 615-741-4322 fax
Marianne.Purcell@legislature.state.tn.us

Rep. Jim Hackworth - House District 33


 IMMEDIATE RELEASE                                                                                 May 16, 2008

House Passes Sweeping Lottery Scholarship Legislation

Expands opportunity for better HOPE scholarship retention and
creates new need-based grants


NASHVILLE (May 16) – This week the Tennessee House of Representatives began their final days of session by passing sweeping lottery surplus legislation that will provide students struggling to maintain their scholarships more academic breathing room by changing the retention grade point average to 2.75.

 “Today we took a giant step forward in providing Tennessee’s students with a better chance to complete their college education,” said Rep. Jim Hackworth (D) Clinton.  “By helping more students retain the HOPE Scholarship, we can increase our graduation rates and help more students finish college without piling up mounds of debt.”

In addition to the retention GPA adjustment, the new legislation also creates a new “need-based” scholarship based on financial conditions.  These new grants could potentially assist an additional 5,000 Tennessee students every year.

“The children of poor and working families need to be able to earn a college education and do it in a way that doesn’t burden them with thousands of dollars in loans,” Hackworth said.  “These new grants will help alleviate that burden and make sure we’re giving an opportunity at the American dream of a college education to as many students as possible.”

To fund these projects, the bill takes $350 million out of the Tennessee HOPE Lottery Scholarship Surplus Fund and places it in an endowment whose interest will go to funding the projects, allowing for the programs to be reoccurring and not a one-time event.

“When we began the process of deciding how to utilize these surplus dollars, it was clear we didn’t want to throw it all away on one-time projects,” Hackworth said.  “Through this endowment, we can continue to reap the benefits of these dollars for years to come.”

Since the House and Senate version vary on a number of issues, including to GPA retention change, the bills will be brought before a conference committee made up of representatives and senators later next week.


House Passes Resolution Urging Congress to Restore Medicaid Funding

This week the Tennessee House of Representatives overwhelmingly passed a resolution urging the United States Congress to take action to reverse Medicare rule changes proposed by the Bush administration that would cut $73 million from Tennessee Department of Children Services.

“It is outrageous that during a time when families across Tennessee are suffering, President Bush continues to put the financial burden on working and poor families by cutting important federal funding for Tennessee Department of Children Services,” Hackworth Said.

Earlier this year the Centers for Medicare and Medicaid Services (CMS), under the urging of the Bush administration, put in place a rule eliminating federal Medicaid reimbursement for targeted case management, a service that coordinates medical and non-medical services for children under care of Tennessee’s Department of Children’s Services and for other children not in state custody.  These cuts would cost the state $73 million in federal funding, adding to the current $468 million shortfall already projected for next year’s budget.  Such a reduction would require the laying off of 160 DCS employees, or 3% of the DCS workforce.

“We have an economic crisis here in Tennessee, but Tennessee’s Congressional Republicans feel it necessary to punish Tennessee Department of Children Services,” Hackworth said.

On April 23rd the United States House of Representatives voted to reverse the rule change back to its original form with enough votes to override President Bush’s threat of a veto.  The Tennessee House Delegation was split evenly down partisan lines, with all Republicans voting against the bill.


Bill Protecting Tennessee Consumers from “Katrina-like” Insurance Practices Passes House

On Tuesday House members unanimously passed a bill to implement safeguards on insurance practices in Tennessee to protect those with insurance claims from natural disasters.  This bill makes sure Tennesseans do not suffer the same injustices that many in Louisiana suffered after Hurricane Katrina.

“After the waters receded, many hard-working folks who paid their homeowners insurance bills every month found themselves denied any help and that’s just wrong,” Hackworth said. “People should be able to depend on their insurance companies to protect them when disaster strikes and not be cheated out of their hard-earned money.”

The “Tennessee Unfair Trade Practices and Unfair Claims Settlement Act of 2009” defines and regulates "unfair trade practices” in the business of insurance under present law.  Under the new definitions, insurance providers will be required to follow stricter guidelines with regards to claims requests, approvals and denials and will be subject to greater scrutiny under the law for questionable denial practices.

“This bill allows Tennesseans to sleep a little easier knowing that if something unfortunate occurs they can depend on their insurance company to come through to help them rebuild,” Hackworth said.

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