Speaker and Majority Leader differ on need for special session

Monday, November 23, 2009 at 1:13pm

Some state legislative leaders are discussing the improbable prospect of a special session at Christmastime to suspend a law aimed at ensuring that all construction workers are covered for workplace injuries.

Small contractors claim the law, which requires that they buy workers’ compensation insurance by Dec. 31, is so costly it could put thousands of them out of business. The law’s proponents say it’s needed to prevent uninsured sole proprietors and subcontractors from foisting medical costs on general contractors.

Both House GOP leader Jason Mumpower and Speaker Kent Williams have sent emails to members discussing the possibility of a special session sometime in December before Christmas.

Mumpower was one sponsor of the 2008 legislation requiring the insurance coverage. “At this time, the special session is likely but is not for sure,” he wrote. “I did want to give you a heads-up to the possibility so you know to get your Christmas shopping done early!”

But Williams seemed to throw cold water on the idea in his own email Monday. “I do not know of any consensus among members for a special session and am unaware that any member has spoken directly with the governor,” he wrote.

Rep. Judd Matheny, R-Tullahoma, chairman of the House Consumer and Employee Affairs Committee, and other legislators met Monday with small business and insurance lobbyists to talk about what to do.

“A special session is a long shot,” said one attendee, Susan Ritter of the Home Builders Association of Tennessee. “It was briefly mentioned as an option they were exploring.”

She said it’s more likely the legislature will quickly take up whether to suspend the law once the next session begins in January. That would mean contractors still would have to buy insurance for a month or more. If the law is suspended, the legislature then could debate whether to make changes to appease small contractors.

If the law isn’t delayed, Ritter said “it absolutely is going to drive people out of business. I’ve had a number of people call us and say, ‘On December  31st, if I have to buy this insurance I’m closing my doors.’ This is the straw that’s breaking the camel’s back.”

But William Young of the Associated General Contractors of Tennessee said, “These legislators are caving in to these small businessmen. The fact of the matter is, if you’re working and you get hurt, somebody’s going to have to pay. And the way things are now, it’s going to fall on the general contractor.”

A special session can be held only with the agreement of two-thirds of all legislators unless it's called by the governor.
 

2 Comments on this post:

By: cannoneer2 on 11/23/09 at 4:16

If the cost of insurance is all that stands between you and a failed business, maybe it is time to look for something else to do.

By: Time for Truth on 11/24/09 at 9:03

I am wondering if this insurance requirement applies to legal residents only.

Mumpower still seems to think he is in charge.