RESOLUTION NO. RS2011-63

A resolution requesting the Davidson County Delegation to the Tennessee General Assembly to introduce and support the necessary legislation to require Metropolitan Government authorities and agencies created under state law to condition the payment of governmental funds to contractors doing work in Davidson County upon proof of a valid business tax license issued by the Davidson County Clerk.

WHEREAS, certain Metropolitan Government agencies, such as the Convention Center Authority, Sports Authority, and Metropolitan Development and Housing Agency, are creatures of state law and are under the control of the Metropolitan Government; and

WHEREAS, the contracting powers granted by the state enabling legislation for these authorities and agencies prohibits the application of the Metropolitan Procurement Code to the procurement activities of the authorities and agencies; and

WHEREAS, these various authorities and agencies spend a considerable amount of taxpayer dollars with contractors and subcontractors on construction and rehabilitation projects in Davidson County; and

WHEREAS, concerns have been raised as to the status of the business tax license of many of these contractors and subcontractors; and

WHEREAS, Section 4.20.065 of the Metropolitan Code provides that any person entering into any contractual agreement with the Metropolitan Government for any type of building or construction work wherein any funds of the metropolitan government are appropriated or expended for such building or construction work, other than those persons domiciled or located outside of Davidson County that are exempt from paying the minimum privilege tax pursuant to T.C.A. § 67-4-709(a)(4), shall obtain a business tax license from the Davidson County clerk as required by T.C.A. § 67-4-706 prior to commencing any work on the project; and

WHEREAS, legislation is currently pending with the Metropolitan Council to amend Section 4.20.065 of the Metropolitan Code to require that contractors and subcontractors of the Metropolitan Government provide proof of a business tax license before payment; and

WHEREAS, it is fitting and proper that the Tennessee General Assembly modify the state law requirements for these agencies and authorities to mirror the Metropolitan Procurement Code provisions regarding business tax licenses.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. That the Metropolitan County Council hereby goes on record as requesting the Davidson County Delegation to the Tennessee General Assembly to introduce and support the necessary legislation to require all Metropolitan Government agencies and authorities created under state law, including but not limited to the Convention Center Authority, Metro Development and Housing Agency, and Sports Authority, to condition the payment of any governmental funds to any of its contractors or subcontractors doing work in Davidson County upon proof of a valid business tax license issued by the Davidson County Clerk.

Section 2. That the Metropolitan Clerk is directed to send a copy of this Resolution to each member of the Davidson County Delegation to the Tennessee General Assembly.

Section 3. That this Resolution shall take effect from and after its adoption, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Charlie Tygard