HB 171 - SB 747
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 21, 2025
Fiscal Analyst: Chris Higgins | Email: chris.higgins@capitol.tn.gov | Phone: 615-741-2564
HB 171 - SB 747
SUMMARY OF BILL: Extends the Ground Ambulance Service Provider Assessment Act (Act) to
June 30, 2026.
Extends, from 30 business days to 45 business days, the time period in which an ambulance provider
must pay an assessment to the Division of TennCare (Division). Authorizes the Office of
Emergency Services to provide the Division with additional data as needed to ensure the assessment
program remains in compliance with state and federal laws.
FISCAL IMPACT:
STATE GOVERNMENT
REVENUE Ambulance Service Assessment Revenue Fund
FY25-26 $10,235,400
EXPENDITURES Ambulance Service Assessment Revenue Fund
FY25-26 $10,235,400
FEDERAL GOVERNMENT
EXPENDITURES
FY25-26 $18,329,300
OTHER FISCAL IMPACT
The Governor’s proposed FY25-26 budget, on page A-28, includes revenue recognition in the
amount of $11,800,000. Corresponding nonrecurring appropriations in the amount of $32,950,100
($11,800,000 state and $21,150,000 federal) are also included on page A-36.
Assumptions:
• Based on information provided by the Division, the proposed legislation would result in a
one-time increase of $10,235,440 to the Ambulance Service Assessment Revenue Fund
(ASARF) for FY25-26.
• It is estimated that $150,000 will be expended for a TennCare administrative position,
which will be paid in part by federal matching funds at a rate of 50 percent. The resulting
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increase in federal expenditures will be approximately $75,000 ($150,000 x 50%) with a
corresponding increase in state expenditures of $75,000.
• It is estimated that $160,000 will be expended for a grant for the Tennessee Ambulance
Service Association (TASA) administrative support, which will be paid in part by federal
matching funds at a rate of 50 percent. The resulting increase in federal expenditures will be
approximately $80,000 ($160,000 x 50%) with a corresponding increase in state
expenditures of $80,000.
• It is estimated that $10,080,440 [$10,235,440 - ($75,000 + $80,000)] will be expended at a
state rate of 35.677 percent and will receive federal matching funds at a rate of 64.323
percent. The resulting increase in federal funds will be approximately $18,174,290
[($10,080,440 / 35.677%) x 64.323%].
• There is not estimated to be a significant increase in state revenue as a result of fines
assessed to ambulance service providers.
• Total state expenditures will be $10,235,440 ($10,080,440 + $75,000 + $80,000) in FY25-26.
• Total federal expenditures will be $18,329,290 ($18,174,290 + $75,000 + $80,000) in FY25-
26.
• The total impact to the ASARF will be approximately $28,564,730 ($10,235,440 state +
$18,329,290 federal) in FY25-26.
• Granting ambulance providers 15 additional business days in which to pay the required
assessment is not expected to result in a significant impact to the total amount of
assessment revenue collected by the Division.
• The Office of Emergency Services can provide the Division with additional data as needed
to ensure the assessment program remains in compliance with state and federal laws
utilizing existing resources and personnel.
IMPACT TO COMMERCE:
BUSINESS IMPACT
FISCAL YEAR REVENUE EXPENSES
FY25-26 $28,254,700 $10,235,400
Assumptions:
• Ambulance service providers will incur a one-time increase in business revenue of
$28,254,730 ($28,564,730 - $150,000 - $160,000) to cover costs of ground ambulance
transport occurring in FY25-26.
• Ambulance service providers will incur a one-time increase in business expenditures of
$10,235,400 in FY25-26 to fund the state portion of the Act.
• The proposed legislation will not increase the number of ambulance service providers, it
only extends the Ground Ambulance Service Provider Assessment Act until June 30, 2026 and
extends the deadline by 15 business days in which an ambulance provider must pay an
assessment to the Division.
• Therefore, any impact to jobs in Tennessee is estimated to be not significant.
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CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director