HB 378 - SB 349
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 17, 2025
Fiscal Analyst: Laura Moore | Email: laura.moore@capitol.tn.gov | Phone: 615-741-2564
HB 378 - SB 349
SUMMARY OF BILL: Exempts a commissioned reserve deputy sheriff or commissioned
reserve or auxiliary police officer from the Private Protective Services Licensing and Regulatory Act (Act) if
such person is receiving compensation for services as a guard, patrol, or watchperson under a
contract with a private business that is properly licensed by the state.
FISCAL IMPACT:
OTHER FISCAL IMPACT
Due to multiple unknown variables, the decrease in revenue to the Board of Detection License
Services in FY25-26 and subsequent years cannot be quantified with reasonable certainty. The board
had a cumulative reserve balance of $2,761,812 on June 30, 2024.
Assumptions:
• The proposed legislation will decrease the number of individuals required to be licensed
under the Act, thus reducing revenue fee collections. Fees under the Act are collected by
the Board of Detection License Services (Board).
• It is assumed that reserve and auxiliary officers registering under the Board will seek an
armed guard license, rather than an unarmed guard license. The fees to register under the
Board as an armed guard are $105 for the initial application, plus any fingerprint fees set by
the Tennessee Bureau of Investigation (TBI), and $60 for the renewal fee. All registrations
expire every two years.
• Based on information provided by the Department of Commerce and Insurance (DCI), the
department does not track how many of its security guard licensees are also reserve deputy
sheriffs or reserve or auxiliary police officers. At the time of submission, DCI was also
unable to provide the total current number of security guard licensees.
• Therefore, the precise number of individuals that will no longer be required to attain a
license to work as a security guard is unknown and cannot be reasonably estimated.
• The proposed legislation will result in a recurring decrease in revenue to the Board in an
unknown amount beginning in FY25-26.
• Armed guards are required to undergo a fingerprint criminal background check conducted
by the TBI.
• The total fee for a criminal background check is $37.15. The disbursement of this fee is as
follows:
o TBI: $12.00;
HB 378 - SB 349 2
o FBI: $12.00 and
o Applicable vendor: $13.15.
• Any decrease in revenue to the TBI will be offset by an equal decrease in expenditures
borne by the bureau.
• Pursuant to Tenn. Code Ann. § 4-29-121, all regulatory boards are required to be self-
supporting over any two-year period. The Board of Detection License Services experienced
a deficit of $41,892 in FY22-23, a deficit of $193,021 in FY23-24, and had a cumulative
reserve balance of $2,761,812 on June 30, 2024.
IMPACT TO COMMERCE:
NOT SIGNIFICANT
Assumption:
• The proposed legislation will reduce restrictions placed on a commissioned reserve deputy
sheriff or a commissioned reserve or auxiliary police officer who contracts with a private
business to work as a security guard, but will not have a significant impact on business
expenditures or jobs in Tennessee.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director