NASHVILLE (AP) — A proposal by Gov. Bill Haslam to limit monetary damages from lawsuits in Tennessee is unnecessary and a jury should decide how much is awarded and not government, former U.S. Sen. Fred Thompson told a House panel Wednesday.

The Republican governor's legislation would place a $750,000 cap on non-economic damages, such as pain and emotional suffering, and punitive damages would be limited to $500,000.

Thompson, a Tennessee Republican, told the House Judiciary Subcommittee that the proposal is "extremely far-reaching."

"Folks, we are about to kill a mouse with a bazooka," said the actor, who was hired by the Tennessee Association for Justice to lobby for the state's trial lawyers.

Thompson added that juries are best qualified to decide how money should be awarded.

"We let juries put a person to death. I think we ought to let them decide ... damages," he said.

Haslam has said the legislation is necessary because it is too attractive for lawyers to sue businesses in Tennessee and that could scare off potential businesses.

Herbert Slatery, the governor's chief legal counsel, told the House Education Subcommittee on Wednesday that a goal is to reduce uncertainty among businesses considering investing in Tennessee.

"The executives who make the decisions are focusing on quantifying risk," Slatery said. "They turn to us and say, I'm assuming risk, just tell me what it is ... and our response is largely silence.

"The governor wants to correct this," he added.

Haslam's proposal would place no limit on economic damages, such as medical expenses and care.

Slatery said the administration is rewriting the details of the original proposal that he expects to be released by the end of the week.

Earlier in Wednesday's hearing, Democratic Rep. Mike Stewart of Nashville cited a survey by the U.S. Chamber of Commerce that ranks Tennessee 10th nationally on its treatment of tort and contract litigation. The state's overall ranking for its liability system is 19th.

Stewart noted that despite major changes to neighboring Mississippi's legal system, the state's ranking in the U.S. Chamber's survey remains near the bottom.

Thompson referenced those statistics and cited some of his own that show Tennessee continues to be a top draw for businesses.

"This is not the profile of a state that needs drastic action," he said.

However, Slatery said Tennessee is has fallen in national rankings in recent years, which can also have a negative effect on recruiting business.

"If Tennessee is trending down, that's just another excuse to take us off the short list," he said.

However, family members of accident victims and advocates for the elderly — particularly those in nursing homes — say the proposal constitutes bad legislation.

Pat Crouch and one of her sisters traveled from McMinnville to attend a press conference held earlier Wednesday to oppose the bill. Crouch said her 84-year-old mother died from complications of a bed sore that she got while in a nursing home, which only carried $50,000 worth of insurance.

"That's all they carried," she said. "The money issue is the only thing that keeps these people kind of under control. And if they think they can get out of it cheaply, there are going to be more people to suffer."