HB 698 - SB 1014
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 21, 2025
Fiscal Analyst: Alan Hampton | Email: alan.hampton@capitol.tn.gov | Phone: 615-741-2564
HB 698 - SB 1014
SUMMARY OF BILL: Requires a local education agency (LEA) in which a child care
facility operates to submit a comprehensive list of all underutilized or vacant property to the
Department of Human Services (DHS) and the Comptroller of the Treasury (COT) and for the
department to make the list available to each child care facility operating in the LEA.
Grants certain owners of a child care facility that operates in an LEA a first or second right of
refusal to lease or purchase underutilized or vacant property listed by the LEA at or below fair
market value. Establishes conditions and responsibilities for the maintenance and repair of a child
care facility leased from an LEA.
Authorizes the owner or operator of a child care facility to petition the COT for an audit of the list
of all underutilized property or vacant property submitted by the LEA in which a child care facility
operates. In any LEA in which a child care facility operates, requires the LEA to submit its plans for
the use of underutilized or vacant properties owned or operated by the LEA in its annual report to
the DOE and the COT.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• LEAs will include plans on the intended use of underutilized and vacant properties in its
annual report and comply with the requirements pursuant to the selling and leasing of such
properties within existing resources.
• DHS will make the list of underutilized or vacant property available to child care facilities
with existing staff and resources; any impact to state expenditures is not significant.
• The COT will be able to conduct a requested audit of the listing of underutilized or vacant
property within existing resources such that any fiscal impact is estimated to be not
significant.
• The proposed legislation authorizes the owner or operator of a child care facility that is
operating in an LEA:
o That does not have one or more public charter schools operating within its
geographic boundaries, the right of first refusal to purchase vacant property or lease
vacant or underutilized property; and
o That does have one or more public charter schools operating, a second right of
refusal to purchase vacant property or lease underutilized or vacant property.
HB 698 - SB 1014 2
• It is unknown how many LEAs will lease or sell underutilized or vacant properties to child
care facilities and subsequently lose the market value that could have been recovered
otherwise. This may result in an undetermined decrease in local revenue. However, any
such decrease 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