SB 386 - HB 522 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly February 16, 2025 Fiscal Analyst: Alan Hampton | Email: alan.hampton@capitol.tn.gov | Phone: 615-741-2564 SB 386 - HB 522 SUMMARY OF BILL: Enacts the Early Behavioral Intervention Reporting Act. Requires each local education agency (LEA) and public charter school to implement a computer-based system that teachers and school staff must use to input data of early warning signs demonstrated by students. Requires each LEA and public charter school to ensure teachers and school staff are trained to identify early warning signs and input data into the computer-based system. Establishes requirements for the computer-based system and requires each LEA and public charter school to submit an annual report to the Department of Education (DOE) summarizing the data collected and any interventions provided. Authorizes the Commissioner of the DOE to withhold state funds if an LEA or public charter school does not comply with this act. Clarifies that public charter schools are required to have a threat assessment team in the same manner as required of LEAs. FISCAL IMPACT: LOCAL GOVERNMENT EXPENDITURES Mandatory FY25-26 & Subsequent Years $2,940,000 *Article II, Section 24 of the Tennessee Constitution provides that: no law of general application shall impose increased expenditure requirements on cities or counties unless the General Assembly shall provide that the state share in the cost. Assumptions: • The proposed legislation requires each LEA and public charter school to implement a computer-based system that teachers and school staff must use to input evidence of safety, health, or behavioral issues demonstrated by students. • The cost of implementing the proposed legislation is dependent upon multiple factors, including the cost of: computers, software, and servers; training staff; on-going technical support and maintenance; any required upgrades to the school’s network infrastructure; and quotes by vendors based on the number of students enrolled in a school. • While the needs of each school and the specifics of each contract will vary, it is reasonably assumed that each LEA will be required to spend an average of $20,000 each year to comply with the proposed legislation. • The recurring increase in mandatory local expenditures is estimated to be $2,940,000 ($20,000 x 147 LEAs) in FY25-26. SB 386 - HB 522 2 • It is assumed that LEAs and public charter schools will comply with the proposed legislation in order to receive full state funding; any decrease in state expenditures and local revenue is estimated to be not significant. • LEAs and public charter schools wills submit the required report within existing resources. • Pursuant to Tenn. Code Ann. § 49-6-2701(a) and (b) each LEA is required to adopt a policy to establish a threat assessment team, which must include LEA personnel and law enforcement personnel, within the LEA for the purpose of developing an intervention- based approach to prevent violence, manage reports of potential threats, and create a system that fosters a safe school environment. • The proposed legislation requires public charter schools to adopt a policy to establish a threat assessment team; however, it does not require a public charter school to create a threat assessment team. • If public charter schools decide to create a threat assessment team, they will be able to do so using existing resources. • It is assumed that members of a threat assessment team will volunteer to do so and will not receive any additional compensation from the state or the respective public charter school. • Public charter schools will be able to amend their policies in accordance with the provisions of this legislation during the normal course of business; therefore, any fiscal impact is estimated to be not significant. CERTIFICATION: The information contained herein is true and correct to the best of my knowledge. Bojan Savic, Executive Director