SB 448 - HB 761 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly February 22, 2025 Fiscal Analyst: Arielle Woodmore | Email: arielle.woodmore@capitol.tn.gov | Phone: 615-741-2564 SB 448 - HB 761 SUMMARY OF BILL: Removes the definition of “content harmful to minors” from the Protect Tennessee Minors Act. FISCAL IMPACT: STATE GOVERNMENT EXPENDITURES Incarceration $33,200 Assumptions: • Pursuant to Tenn. Code Ann. § 39-17-912(b)(5), content harmful to minors means text, audio, imagery, or video the average person, applying contemporary community standards and taking the material as a whole and with respect to minors of any age, would find sexually explicit and harmful or inappropriate for minors or designed to appeal to or pander to the prurient interest; or text, audio, imagery, or video that exploits, is devoted to, or principally consists of an actual, simulated, or animated display or depiction of any of the following: o Pubic hair, vulva, vagina, penis, testicles, anus, or nipple of a human body; o Pubic hair, vulva, vagina, penis, testicles, anus, or nipple of a fictitious character's body, or the parts of a fictitious character's body analogous or functionally equivalent to the aforementioned parts of the human body; o Touching, caressing, fondling, or other sexual stimulation of human nipples, breasts, buttocks, anuses, or genitals, or the analogous or functionally equivalent parts of a fictitious character's body; or o Sexual intercourse, masturbation, sodomy, bestiality, oral copulation, flagellation, excretory functions, exhibitions, or any other sexual act; and o When taken as a whole, lacks serious literary, artistic, political, or scientific value for minors. • Pursuant to Tenn. Code Ann. § 39-17-912(c), an individual or commercial entity that publishes or distributes in this state a website that contains a substantial portion of content harmful to minors is liable if the individual or commercial entity does not: o Verify, using a reasonable age-verification method, the age of each active user attempting to access its website; or o Verify, using a reasonable age-verification method, the age of an active user attempting to access its website again after completion of an age-verified session. SB 448 - HB 761 2 • Pursuant to Tenn. Code Ann. §39-17-912(i), a violation of these provisions is a Class C felony. • The proposed legislation removes the definition of “content harmful to minors”, in its entirety, from the Protect Tennessee Minors Act. • It is assumed that in lieu of this definition, “harmful to minors” will assume the definition established in Tenn. Code Ann. § 39-17-901. • Pursuant to Tenn. Code Ann. § 39-17-901(6), “harmful to minors” means that quality of any description or representation, in whatever form, of nudity, sexual excitement, sexual conduct, excess violence or sadomasochistic abuse when the matter or performance: o Would be found by the average person applying contemporary community standards to appeal predominantly to the prurient, shameful or morbid interests of minors; o Is patently offensive to prevailing standards in the adult community as a whole with respect to what is suitable for minors; and o Taken as whole lacks serious literary, artistic, political or scientific values for minors; • The number of Class C felony convictions that may result from violations of the legislation’s requirements is unknown. Given the widespread nature of such content on the internet and the number of sites that distribute it, it is assumed that the increase in such convictions could be significant. • It is assumed that a majority of entities will either stop publishing such content or will take steps necessary to meet the requirements of this legislation. However, it is assumed that the proposed legislation will result in one Class C felony conviction each year. • The average time served for a Class C felony is 1.5 years. • Based on population data from the U.S. Census Bureau, population growth in Tennessee averaged 1.24 percent per year (from 2021 to 2024). • The weighted average operational costs per inmate per day are estimated to be $62.02 for inmates housed at state facilities and $50.51 for inmates housed at local facilities. • The increase in incarceration costs is estimated to be the following over the next three-year period: Increase in State Expenditures Amount Fiscal Year $ 21,700 FY25-26 $ 32,800 FY26-27 $ 33,200 FY27-28 • Pursuant to Public Chapter 1007 of 2022, recurring costs increases are to be estimated on the highest of the next three fiscal years; therefore, the recurring increase in incarceration costs will be $33,200. • The Attorney General (AG) can prosecute such cases or bring appropriate actions as the AG deems necessary within existing resources. • Any impacts related to liabilities from lawsuits brought by individuals or the AG will be borne by private parties. • It is assumed that the courts can accommodate any increase in caseloads within existing resources. SB 448 - HB 761 3 • 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. • The estimated fiscal impact of the proposed legislation does not consider the availability of beds in state and local facilities, but is based solely on the current operating costs of state facilities and the reimbursement rates for local facilities as is required by Tenn. Code Ann. § 9-4-210. • All calculations used in completion of this fiscal note are available upon request. CERTIFICATION: The information contained herein is true and correct to the best of my knowledge. Bojan Savic, Executive Director