She thanked the Tennessee legislature for their “consideration” and said she was “honoured and humbled by their intention”.
The country music legend said that a monument to her might be more appropriate in the future.
“I hope, though, that somewhere down the road several years from now, or perhaps after I’m gone if you still feel I deserve it, then I’m certain I will stand proud in our great State Capitol as a grateful Tennessean,” she wrote.
“In the meantime, I’ll continue to try to do good work to make this great state proud.”
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Introducing the bill in January, Mr Windle appeared to disagree on the timing, saying: “At this point in history, is there a better example, not just in America but in the world, of a leader that is (a) kind, decent, passionate human being?
“[She’s] a passionate person who loves everyone, and everyone loves her.”
Alongside her music career, Parton also has a history of philanthropy, establishing the Imagination Library in 1995, which sends books to children around the world in an effort to improve child literacy.