HB 791 - SB 1220 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly March 15, 2025 Fiscal Analyst: Elizabeth Bransford | Email: elizabeth.bransford@capitol.tn.gov | Phone: 615-741-2564 HB 791 - SB 1220 SUMMARY OF BILL: Enacts the Workers’ Right to Live Act (Act). Requires an employer to report a workplace fatality to the Division of Occupational Safety and Health (Division) of the Department of Labor and Workforce Development (DLWD) within 24-hours of occurrence. Requires the Division to initiate an investigation within five business days of receiving notice of a fatality. Requires the Division to determine whether the fatality was due to employer negligence, an unavoidable medical emergency unrelated to workplace conditions, or a true accident without identifiable employer fault. Requires the Division to publicly report the findings of an investigation within 90 days of the conclusion of the investigation. Authorizes an employer to appeal a determination of negligence within 30 days of receiving the final investigative report. Establishes a Worker Protection Fund (Fund) within the State Treasury to be administered by the Division. Establishes a civil penalty assessment of a minimum of $50,000 per instance an employer fails to report a workplace fatality within 24-hours of occurrence. Subjects an employer with a finding of a workplace fatality resulting from negligence to a minimum fine of $250,000. Requires collections from such fines and penalties to be deposited into the Fund. Requires any interest accrued or unexpended moneys in the Fund to be carried forward into the next fiscal year rather than reverting to the General Fund. Requires the Department of Economic and Community Development (ECD) to include a clawback provision in its accountability agreement with an employer requiring, in the event of a finding of negligence, the employer to repay any state-provided incentives received during the preceding three- year period. Prohibits, in the event an employer has demonstrated a pattern of negligence, the employer from receiving state incentives for five years from the date the determination was made. Requires DLWD to promulgate rules including mechanisms for whistleblower protections for employees reporting unsafe working conditions. Effective upon becoming law for the purpose of promulgating rules. Effective July 1, 2025 for all other purposes. FISCAL IMPACT: NOT SIGNIFICANT Assumptions: • Pursuant to 29 CFR § 1904.39, o Within eight hours after the death of any employee as a result of a work-related incident, the employer must report the fatality to the U.S. Department of Labor Occupational Safety and Health Administration (OSHA); HB 791 - SB 1220 2 o Fatalities occurring within 30 days of a work-related injury must be reported to Tennessee OSHA. • According to the Department of the Treasury, establishment of the Fund and its investment will not require any additional personnel or other resources. • According to ECD, it can make the necessary changes to the current agreement structure utilizing existing resources and will not require any additional personnel or other resources for the enforcement of any clawback provisions. It is not expected that the proposed legislation will result in any significant impact to incentives provided by the state. • DLWD currently investigates workplace fatalities and makes such investigative reports available to the public on its website; therefore, it is not anticipated DLWD will require additional personnel or resources. • The proposed legislation establishes a civil penalty assessment of a minimum of $50,000 per instance an employer fails to report a workplace fatality within 24-hours of occurrence and subjects an employer with a finding of a workplace fatality resulting from negligence to a minimum fine of $250,000. Any penalty revenue must be deposited in the Fund. • The extent of which an employer fails to report a workplace fatality within 24-hours, or an investigation finds a workplace fatality is the result of negligence, is unknown. However, it is assumed that employers will comply with the requirements of this legislation. Therefore, any increase in assessed penalties is assumed to be not significant. • Any impact to the court system as a result of the proposed legislation is anticipated to be minimal, if any. IMPACT TO COMMERCE: NOT SIGNIFICANT Assumptions: • The extent of which, and the amount of, penalties assessed on and paid by businesses in this state is based on multiple unknown variables and cannot be quantified with reasonable certainty. However, it is assumed that employers will comply with the requirements of this legislation. Therefore, any increase in assessed penalties is assumed to be not significant. • There will not be a significant impact to jobs in this state. CERTIFICATION: The information contained herein is true and correct to the best of my knowledge. Bojan Savic, Executive Director