SB 741 - HB 769
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 26, 2025
Fiscal Analyst: Arielle Woodmore | Email: arielle.woodmore@capitol.tn.gov | Phone: 615-741-2564
SB 741 - HB 769
SUMMARY OF BILL: Creates an offense for a person to knowingly possess, distribute, or
produce technology, software, or digital tools designed for the purpose of creating material that
includes a minor engaged in sexual activity or simulated sexual activity that is patently offensive.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
New Class E Felony Offense - Possession
• Pursuant to Tenn. Code Ann. § 39-17-1003, it is an offense for any person to knowingly
possess material that includes a minor engaged in sexual activity or simulated sexual activity
that is patently offensive.
• Pursuant to Tenn. Code Ann. § 39-17-1003(d), sexual exploitation of a minor is either a
Class D, C, or B felony offense, depending on the number of images and material
possessed.
• Pursuant to Tenn. Code Ann. § 39-17-1002(4), material means:
o Any picture, drawing, photograph, undeveloped film or film negative, motion
picture film, videocassette tape or other pictorial representation;
o Any statue, figure, theatrical production or electrical reproduction;
o Any image stored on a computer hard drive, a computer disk of any type, or any
other medium designed to store information for later retrieval;
o Any image transmitted to a computer or other electronic media or video screen, by
telephone line, cable, satellite transmission, or other method that is capable of
further transmission, manipulation, storage or accessing, even if not stored or saved
at the time of transmission; or
o Any computer image, or computer-generated image, including an image created,
adapted, or modified by artificial intelligence, whether made or produced by
electronic, mechanical, or other means.
• The proposed legislation creates a Class E felony offense for a person to knowingly possess
technology, software, or digital tools designed for the purpose of creating material that
includes a minor engaged in sexual activity or simulated sexually activity that is patently
offensive.
• It is reasonably assumed that individuals who knowingly possess technology, software, or
digital tools designed for the purpose of creating material that includes a minor engaged in
sexual activity or simulated sexually activity that is patently offensive, will be charged with a
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Class E felony offense pursuant to Tenn. Code Ann. § 39-17-1003(d) under current law;
therefore, there will not be a sufficient change in the number of prosecutions for state or
local government to experience any significant change in revenue or expenditures.
New Class C Felony Offense - Distribution
• Pursuant to Tenn. Code Ann. § 39-17-1004, it is an offense for a person to knowingly
promote, sell, distribute, transport, purchase or exchange material, or possess with the
intent to promote, sell, distribute, transport, purchase or exchange material, that includes a
minor engaged in sexual activity or simulated sexually activity that is patently offensive. A
violation is a Class C felony unless the number of individual images or materials exceeds 25,
then the offense is a Class B felony.
• The proposed legislation creates a Class C felony offense for a person to knowingly
distribute technology, software, or digital tools designed for the purpose of creating material
that includes a minor engaged in sexual activity or simulated sexually activity that is patently
offensive.
• It is reasonably assumed that individuals who knowingly distribute technology, software, or
digital tools designed for the purpose of creating material that includes a minor engaged in
sexual activity or simulated sexually activity that is patently offensive, will be charged with
the Class B or Class C felony offense pursuant to Tenn. Code Ann. § 39-17-1004 under
current law; therefore, there will not be a sufficient change in the number of prosecutions
for state or local government to experience any significant change in revenue or
expenditures.
New Class B Felony Offense - Production
• Pursuant to Tenn. Code Ann. § 39-17-1005, it is an offense for a person to knowingly
promote, employ, use, assist, transport or permit a minor to participate in the performance
of, or in the production of, acts or material that includes the minor engaging in sexual
activity or simulated sexual activity that is patently offensive. A violation is a Class B felony.
• The proposed legislation creates a Class B felony offense for a person to knowingly
produce technology, software, or digital tools designed for the purpose of creating material
that includes a minor engaged in sexual activity or simulated sexually activity that is patently
offensive.
• It is reasonably assumed that individuals who knowingly produce technology, software, or
digital tools designed for the purpose of creating material that includes a minor engaged in
sexual activity or simulated sexually activity that is patently offensive, will be charged with
the Class B felony offense pursuant to Tenn. Code Ann. § 39-17-1005 under current law;
therefore, there will not be a sufficient change in the number of prosecutions for state or
local government to experience any significant change in revenue or expenditures.
• 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.
• Any impact to the court system as a result of the proposed legislation is estimated to be not
significant.
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CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director