HB 632 - SB 808 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly February 20, 2025 Fiscal Analyst: Rebecca Chandler | Email: rebecca.chandler@capitol.tn.gov | Phone: 615-741-2564 HB 632 - SB 808 SUMMARY OF BILL: Establishes a paid volunteer leave policy for eligible Tennessee state employees. Grants 15 hours of paid volunteer leave per year to full-time employees working more than 1,600 hours annually after completing one full year of service. Excludes part-time, temporary, seasonal, and emergency employees in the preferred service from eligibility. Specifies that volunteer leave is non-cumulative and must be used within the year. Limits usage to non-state Tennessee community commitments, including nonprofit work, schools, and community initiatives. Prohibits leave from being deducted from sick, annual, or other accrued leave. Maintains employee positions, benefits, pay, and healthcare coverage during leave, with employees responsible for their share of healthcare costs. Protects employees from retaliation, discipline, or discrimination for using volunteer leave. Requires the Department of Human Resources (DHR) to set policies for executive branch agencies, while non-executive agencies oversee their own implementation. FISCAL IMPACT: NOT SIGNIFICANT Assumptions: • Based on information provided by DHR, state employee salaries are fully budgeted; therefore, there are no additional payroll costs associated with employees taking volunteer leave. Since salaries are allocated regardless of leave usage, this policy does not require extra funding. • The 15-hour annual volunteer leave allowance is unlikely to create a need for hiring additional staff or paying overtime. Agencies are expected to manage employee absences without significant disruption. • Existing leave management systems are assumed to be sufficient for tracking and approving volunteer leave without the need for new software, additional personnel, or other administrative costs. • Employee benefits, including health insurance and retirement contributions, remain unaffected since employees continue to be on payroll during their leave. No additional benefit costs are anticipated. • Volunteer leave functions similarly to other leave policies and is not expected to create a new financial burden. The policy aligns with existing leave structures without requiring new resources or funding allocations. HB 632 - SB 808 2 CERTIFICATION: The information contained herein is true and correct to the best of my knowledge. Bojan Savic, Executive Director