HB 587 - SB 657
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 13, 2025
Fiscal Analyst: Arielle Woodmore | Email: arielle.woodmore@capitol.tn.gov | Phone: 615-741-2564
HB 587 - SB 657
SUMMARY OF BILL: Expands the definition of "racketeering activity" under the
Racketeer Influenced and Corrupt Organization (RICO) Act of 1989 to include committing,
conspiring to commit, aiding, attempting to aid, soliciting, coercing, facilitating, or intimidating
another person to commit the criminal offense of: (1) carjacking; (2) organized retail crime; and (3)
possession or employment of a firearm or antique firearm during the commission of a dangerous
felony.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Racketeering activity means to commit, attempt to commit, conspire to commit, or to aid,
attempt to aid, solicit, coerce, facilitate, or intimidate another person to commit one of 69
criminal offenses.
• The proposed legislation adds the offenses of organized retail crime, possession or
employment of a firearm or antique firearm during the commission of a dangerous felony
included in racketeering activity, and carjacking.
• Pursuant to Tenn. Code Ann. § 39-12-205(a), a RICO violation is a Class B felony offense.
The penalty is enhanced to a Class A felony offense if the conviction is based upon a
pattern of racketeering activity that involved a homicide.
Carjacking
• Pursuant to Tenn. Code Ann. § 39-13-404(b), carjacking is a Class B felony offense.
• Based on information provided by the Department of Correction (DOC), in each of the last
10 years, there has been an average of 23.80 admissions for Class B felony offense of
carjacking.
• Pursuant to Tenn. Code Ann. § 9-4-210, this analysis estimates the highest cost for
admissions in the next three years; therefore, any additional time added by the proposed
legislation resulting in sentences exceeding three years in length surpass the window of this
analysis and will not significantly impact incarceration costs.
Organized Retail Crime
• Tennessee Code Annotated § 39-14-113(c)(1)-(2) establishes that a person commits the
offense of organized retail crime when the person:
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o Acts in concert with one or more individuals to commit theft of any merchandise
with a value greater than $1,000 aggregated over a 90-day period with the intent to
sell, barter, or trade the merchandise for monetary or other gain or fraudulently
return the merchandise to a retail merchant; or
o Receives, possesses, sells, or purchases, by physical or electronic means, any
merchandise or stored value cards obtained from a fraudulent return with the
knowledge that the property was obtained by theft of property or theft of property
where the conduct involved merchandise.
• The offense of organized retail crime is graded the same as theft.
• Pursuant to Tenn. Code Ann. § 39-14-105(a), theft of property or services is a:
o Class A misdemeanor if the value of the property or services obtained is $1,000 or
less, except when the property obtained is a firearm;
o Class E felony if the property obtained is a firearm worth less than $2,500, or if the
value of the property or services obtained is more than $1,000 but less than $2,500;
o Class D felony if the value of the property or services obtained is more than $2,500
but less than $10,000;
o Class C felony if the value of the property or services obtained is more than $10,000
but less than $60,000;
o Class B felony if the value of the property or services obtained is more than $60,000
but less than $250,000; and
o Class A felony if the value of the property or services obtained is more than
$250,000.
• Based on information provided by the Administrative Office of the Courts and the DOC
Jail Summary Reports, in each of the last five years, there have been an average of the
following convictions for organized retail crime:
o 1.8 Class A misdemeanor convictions;
o 2.4 Class E felony convictions; and
o 1.6 Class D felony convictions.
• There will not be a sufficient change in the number of prosecutions for organized retail
crime for state or local government to experience any significant change in revenue or
expenditures.
Possession or Employment of a Firearm or Antique Firearm during the Commission of or Attempt to
Commit a Dangerous felony
• Pursuant to Tenn. Code Ann. § 39-17-1324(a), it is an offense to possess a firearm or
antique firearm with the intent to go armed during the commission of or attempt to commit
a dangerous felony.
• Pursuant to Tenn. Code Ann. § 39-17-1324(b)(1)-(4), it is an offense to employ a firearm or
antique firearm during the:
o Commission of a dangerous felony;
o Attempt to commit a dangerous felony;
o Flight or escape from the commission of a dangerous felony; or
o Flight or escape from the attempt to commit a dangerous felony.
• Pursuant to Tenn. Code Ann. § 39-17-1324(g)(1)-(2): possession of a firearm or antique
firearm with the intent to go armed during the commission of or attempt to commit a
dangerous felony is a:
o Class D felony, punishable by a mandatory minimum three-year sentence; or
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o Class D felony, punishable by a mandatory minimum five-year sentence if the
defendant, at the time of the offense, had a prior felony conviction.
• Pursuant to Tenn. Code Ann. § 39-17-1324(h)(1)-(2), employing a firearm or antique
firearm during the commission of a dangerous felony, attempt to commit a dangerous
felony, flight or escape from the commission of a dangerous felony or flight or escape from
the attempt to commit a dangerous felony, is a:
o Class C felony, punishable by a mandatory minimum six years sentence; or
o Class C felony, punishable by a mandatory minimum 10-year sentence, if the
defendant, at the time of the offense, had a prior felony conviction.
• Based on information provided by the DOC, in each of the last 10 years, there has been an
average of:
o 9.90 admissions for the Class D felony offense under Tenn. Code Ann. § 39-17-
1324(g)(1) serving a mandatory minimum of three years;
o 1.40 admissions per year for the Class D felony offense under Tenn. Code Ann. §
39-17-1324(g)(2) serving a mandatory minimum of five years;
o 2.30 admission per year Class C felony offense under Tenn. Code Ann. § 39-17-
1324(h)(1) serving a mandatory minimum of six years; and
o 0.30 admissions per year for the Class C felony offense under Tenn. Code Ann. §
39-17-1324(h)(2) serving a mandatory minimum of 10 years.
• Pursuant to Tenn. Code Ann. § 9-4-210, this analysis estimates the highest cost for
admissions in the next three years; therefore, any additional time added by the proposed
legislation resulting in sentences exceeding three years in length surpass the window of this
analysis and will not significantly impact incarceration costs.
• Any impact to the court system as a result of the proposed legislation is estimated to be not
significant.
• Based on the Fiscal Review Committee’s 2008 study and the Administrative Office of the
Courts’ 2012 study on collection of court costs, fees, and fines, collection in criminal cases
is insignificant. The proposed legislation will not significantly change state or local revenue.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director