Mike Carter - 29th DistrictNASHVILLE - Two Hamilton County legislators are renewing their push to pass a "de-annexation" bill that would allow people in parts of Chattanooga and other Tennessee cities annexed after 1998 the possibility of voting to secede.
Sen. Bo Watson, R-Hixson, and Rep. Mike Carter, R-Ooltewah, introduced the follow-up to their unsuccessful 2015-16 effort Thursday, the General Assembly's final day for filing legislation.
But this year's version includes a twist. To address senators' concerns last year that their bill unfairly targeted only selected cities such as Chattanooga and Memphis, the new bill would apply to all towns and cities across Tennessee.
Moreover, after joining with Chattanooga Mayor Andy Berke and leaders in the other targeted cities to fight last year's bill, Memphis Mayor Jim Strickland is looking at voluntarily de-annexing seven areas in 2021.
That's caught the attention of a number of lawmakers, including Watson and Carter. And they appear open to an idea offered up by Senate Majority Leader Mark Norris, R-Collierville, that the legislation could include a carrot-and-stick approach. Cities could voluntarily de-annex areas on their own. Or they can come under the general requirements of the bill.
Watson said he hasn't spoken with Norris about that, but he and Carter both have met with Strickland.
"I applaud the mayor of Memphis," Watson said. He believes officials there "recognize being bigger doesn't necessarily mean being geographically bigger and that with the advent of all the interest in urban living, cities that reached into suburbia to increase their footprint are now realizing that may be harder to manage than they thought."
"Certainly, this bill is not intended to inhibit [Strickland's] ability or local government's ability to do that," Watson added.
Asked about the new bill and the potential carrot-and-stick approach, Berke said in a statement: "This is, at least, the third time around for this idea. Previous legislation would have harmed our city and our citizens through untold unintended consequences, and I'm grateful it didn't pass.
"We'll review this bill carefully and do what's best for Chattanooga," Berke added.
Carter passed his House version in 2016 over the objections of major cities, including Chattanooga, that were singled out in the bill and described as having engaged in "egregious" past annexations.
But Watson's companion bill ran into last-minute trouble on the Senate floor and was forced back into a committee, where it was fiercely debated before it died there.
This year's version, in addition to applying to all cities, has another tweak: It raises from 10 percent to 20 percent the number of registered voters needed to petition to hold a de-annexation vote.
A majority still would have to vote yes to secede and the bill also retains a one-and- done approach. Residents get one bite at the apple. If a referendum fails, they stay in the city and don't get another vote.
"Fundamentally, this bill has always been about that government exists by the consent of the governed," Watson said. "I know that's dramatic, that kind of Declaration of Independence kind of stuff. But it is very true."
In 2014, Watson and Carter passed a law upending a decades-old law allowing municipalities to annex by ordinance, which critics call "forced annexation."
Cities now can only grow geographically through the consent of property owners, primarily through voluntary requests or agreements, or by public referendum votes in larger areas.
The 2014 law, however, didn't deal with past annexations, Watson said. People previously annexed against their will should "have a choice if they don't want to be governed by that government," he said.
Berke, Strickland and some large corporation heads opposed the de-annexation measure, arguing that Tennessee's major cities are primary drivers of economic growth.
As home to universities, cultural sites and other amenities, as well as financial resources, cities are able to attract large companies and new residents alike, they argue.
But critics contend cities in the past often used additional taxes from annexed areas without providing some promised amenities including roads, lighting and added police presence.
Strickland argued to lawmakers that de-annexation would prove financially ruinous to Memphis. But perhaps seeing the writing on the wall, the Memphis mayor now is moving to "de-annex" some areas in his city.
Norris, an annexation critic who lives near Memphis, was named by Strickland to a task force looking at the city's plans for de-annexing seven areas beginning in 2021.
Praising the mayor's actions, Norris told reporters last week lawmakers could insert language into the Watson/Carter bill recognizing voluntary de-annexation efforts.
The Commercial Appeal newspaper has reported the recommended de-annexations would reduce Memphis' footprint by 8 percent, its population 1.2 percent and its operating revenue 1.1 percent.
That represents a loss of $7.6 million in net revenue and 10,672 residents. City officials want the four-year time frame to find replacement revenue. Memphis already is grappling with a projected $52 million budget gap in 2021.
The Memphis newspaper also reported that some disgruntled residents don't like the 2021 target date and want a quicker opportunity to get out of town.
Norris suggested cities could take action on their own in a four-year process or face the general requirements of legislation.
An official with the Tennessee Municipal League, which advocates for towns and cities, did not respond to a request last week to discuss the legislation and Norris' proposal.
Under the Watson/Carter bill, a majority of voters in post-1998 annexed areas wouldn't be able to leave a city scot-free.
There are requirements that they would still be tagged for paying their annual tax share for improvements made during the time they were in a city.
Contact Andy Sher at asher@timesfreepress.com or 615-255-0550. Follow him on Twitter @AndySher1.