HB 377 - SB 376 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly March 8, 2025 Fiscal Analyst: Laura Moore | Email: laura.moore@capitol.tn.gov | Phone: 615-741-2564 HB 377 - SB 376 SUMMARY OF BILL: Prohibits a four-year public or private institution of higher education, or any officer, employee, or agent of such institution, from excluding a person from participating in, being denied the benefits of, or being subjected to discrimination by an institution, or any program or activity at an institution, including affirmative action, on the basis of race, color, ethnicity, or national origin. Further prohibits such institutions from using an applicant's race, color, ethnicity, or national origin in determining whether the applicant qualifies for admission into the institution, or for scholarships or financial aid at the institution. Prohibits such institutions from making known to any admissions or financial aid officer such information about a student or applicant before any admission or student aid decisions regarding the student or applicant are made. Creates a private cause of action against an institution, or any officer, employee, or agent thereof, for violating these prohibitions. Specifies recoverable damages in such an action, including a minimum $4,000 in statutory damages. Waives state sovereign immunity in such cases. FISCAL IMPACT: NOT SIGNIFICANT Assumptions: • According to the locally governed institutions, admission or scholarship decisions are not based on race, color, ethnicity, or natural origin. • Public Chapter 437 of 2009, expanded the Tennessee Human Rights Act and the Tennessee Human Rights Commission was given the authority to verify that state governmental entities comply with requirements of Title VI of the Civil Rights Act of 1964 (Title VI). • Title VI prohibits discrimination based on race, color, or national origin in the programs or activities of all recipients of federal financial assistance. The U.S. Department of Education Office for Civil Rights enforces Title VI with respect to recipients of federal financial assistance from the Department, including states, school districts, public schools, and public and private colleges. • The U.S. Supreme Court ruled against the use of race in all college admissions on June 29, 2023 in the case, Students for Fair Admissions v. Harvard. • Institutions of higher education will implement all requirements of this legislation utilizing existing resources, without a significant increase in state expenditures. • Because compliance among the state’s universities is expected, any fiscal impact related to damages awarded against such institutions in civil actions is estimated to be not significant. • The courts will not experience a significant increase in caseloads; therefore, any impact to the court system is estimated to be not significant HB 377 - SB 376 2 CERTIFICATION: The information contained herein is true and correct to the best of my knowledge. Bojan Savic, Executive Director