HB 898 - SB 1142 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly March 14, 2025 Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564 HB 898 - SB 1142 SUMMARY OF BILL: Requires the following utility systems to obtain a certificate of analysis for fluoridated water sold by the system and requires that such certificate and the material safety data sheet for fluoride be posted to such system’s website, or to the Tennessee Board of Utility Regulation’s (TBOUR) website, if such system does not have a website: (1) water, wastewater, or natural gas systems of a county, metropolitan government, or incorporated municipality; (2) water, wastewater, or natural gas systems of a municipal energy utility or utility authority; (3) a treatment authority; and (4) any utility district. FISCAL IMPACT: LOCAL GOVERNMENT EXPENDITURES Mandatory FY25-26 & Subsequent Years >$10,000 Article II, Section 24 of the Tennessee Constitution provides that: no law of general application shall impose increased expenditure requirements on cities or counties unless the General Assembly shall provide that the state share in the cost. Assumptions: • This legislation will require any of the aforementioned entities, which sell water containing fluoride, to obtain a certificate of analysis and post such certificate and the material safety date sheet for fluoride to the entity’s website, and if such entity does not maintain a website, post such information on the TBOUR’s website. • This legislation does not define “certificate of analysis,” nor whether any of the affected entities can use their own testing equipment to test for fluoride and meet the requirements of this legislation. • If this legislation requires testing of fluoride by an independent laboratory, this legislation is assumed to result in an increase in expenditures for such entity. • Based on information provided by the Tennessee Association of Utility Districts, it would cost approximately $100 to have such water tested by an independent laboratory. • This legislation does not specify how many times annually an affected entity would need to have such testing performed. • Affected entities can publish such testing results on their websites utilizing existing resources. • The TBOUR is staffed by the Comptroller of the Treasury (COT). • According to information provided by the COT, the TBOUR can post any testing results received from affected entities on its website, utilizing existing resources. HB 898 - SB 1142 2 • The number of entities which this legislation will impact is unknown, but is reasonably assumed to affect at least 100 local governmental entities. • Due to the aforementioned uncertainties regarding whether tests performed using affected entities’ equipment is acceptable for the purposes of this legislation, and how many times such testing must occur annually, any impact on local governments is difficult to determine. • For purposes of this analysis, it is assumed that this legislation will require independent laboratories to perform such tests and one annual test for fluoride will meet this legislation’s requirement. • This legislation is estimated to result in a mandatory increase in local government expenditures exceeding $10,000 (100 utility systems x $100 per annual test) in FY25-26 and subsequent years. CERTIFICATION: The information contained herein is true and correct to the best of my knowledge. Bojan Savic, Executive Director