SB 632 - HB 944 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly March 20, 2025 Fiscal Analyst: Arielle Woodmore | Email: arielle.woodmore@capitol.tn.gov | Phone: 615-741-2564 SB 632 - HB 944 SUMMARY OF BILL: Prohibits a person from possessing, manufacturing, transporting, repairing, or selling an assault weapon or a semiautomatic rifle that is equipped, altered, or modified to include any part, combination of parts, component, device, attachment, or accessory. Establishes that a violation of this offense is a Class E felony. Establishes an affirmative defense to prosecution for the offense for a person to have possessed the assault weapon prior to July 1, 2025. Requires a person to apply for a certificate of possession by July 1, 2026 if they are in possession an assault weapon prior to July 1, 2025. Requires the Department of Safety (DOS) to create the application, the certificate of possession, and the process of applying for and submitting the certificate by January 1, 2026. Requires a certificate of possession for each assault weapon possessed by a person be submitted to both the DOS and the appropriate local law enforcement agency by January 1, 2027. Requires a licensed gun dealer to execute a certificate of transfer and deliver the certificate to DOS upon the sell or transfer of an assault weapon. Requires the DOS to create a certificate of transfer by January 1, 2026. Creates a Class E felony offense to knowingly purchase, use, possess, or attempt to purchase, use, or possess a trigger crank, bump stock, bump-fire device, or any other part, combination of parts, component, device, attachment, or accessory that is designed or functions to accelerate the rate of fire of a semiautomatic rifle but does not convert the semiautomatic rifle into a machine gun. Creates a Class E felony offense to knowingly manufacture, sell, offer for sale, or display for sale in this state any part, combination of parts, component, device, attachment, or accessory that is prohibited. FISCAL IMPACT: STATE GOVERNMENT EXPENDITURES Incarceration $20,500 OTHER FISCAL IMPACT There will be a recurring decrease in state and local revenue related to sales taxes. A precise estimate of such decreases cannot be determined. Further, there will be a recurring decrease in revenue to the Tennessee Bureau of Investigation related to background check fees of an unknown amount. SB 632 - HB 944 2 Assumptions: • The proposed legislation defines assault weapon to include a list of specific firearm makes and models, as well as numerous additional weapons by way of certain functional characteristics. These include various rifles, shotguns, pistols, and other parts or combinations of parts that are designed or could be assembled to mimic or duplicate those weapons. • Per the proposed legislation, semiautomatic rifle means any repeating rifle that utilizes a portion of the energy of a firing cartridge to extract the fired cartridge case and chamber the next round, and that requires a separate function of the trigger to fire each projectile. • It is assumed that licensed firearm dealers will comply with the prohibition on the sale of such weapons under the proposed legislation. The precise number of such weapons that are sold each year in Tennessee, or the revenue associated with such, is unknown. • It is reasonably assumed that the prohibition on such sales will result in a recurring decrease in state and local revenue related to sales taxes. A precise estimate of such decreases cannot be determined. • Pursuant to Tenn. Code Ann. § 39-17-1316(e)(1), the Tennessee Bureau of Investigation (TBI) may charge a reasonable fee, not to exceed $10, for conducting the TICS background checks. • This legislation will result in a recurring decrease in revenue to the TBI of an unknown amount. • DOS can create the relevant forms and processes required within existing resources. Any fiscal impact to the DOS is estimated to be not significant. • Local law enforcement agencies can accept and maintain certificates of possession within existing resources. • It is assumed that those who currently possess such weapons will largely comply with the requirement to obtain a certificate of possession. New Class E Felony: Possession of an Assault Weapon or Semiautomatic Rifle • The proposed legislation creates a Class E felony offense to intentionally or knowingly possess, manufacture, transport, repair, or sell an assault weapon or a semiautomatic weapon that is equipped, altered, or modified to include any part, combination of parts, component, device, attachment, or accessory. • It is assumed there will be one new admission each year under the proposed legislation. • The average time served for a Class E felony is 0.56 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: SB 632 - HB 944 3 Increase in State Expenditures Amount Fiscal Year $ 12,200 FY25-26 $ 12,400 FY26-27 $ 12,500 FY27-28 New Class E Felony: Possession of Accessories • The proposed legislation creates a Class E felony offense to knowingly purchase, use, possess, or attempt to purchase, use, or possess a trigger crank, bump stock, bump-fire device, or any other part, combination of parts, component, device, attachment, or accessory that is designed or functions to accelerate the rate of fire of a semiautomatic rifle but does not convert the semiautomatic rifle into a machine gun. • It is assumed there will be one new admission every three years under the proposed legislation. • The average time served for a Class E felony is 0.56 years. • The increase in incarceration costs is estimated to be the following over the next three-year period: Increase in State Expenditures Amount Fiscal Year $ 4,000 FY25-26 $ 4,000 FY26-27 $ 4,000 FY27-28 New Class E Felony: Sale of Accessories • The proposed legislation creates a Class E felony offense to knowingly manufacture, sell, offer for sale, or display for sale in this state any part, combination of parts, component, device, attachment, or accessory that is prohibited. • It is assumed there will be one new admission every three years under the proposed legislation. • The average time served for a Class E felony is 0.56 years. • The increase in incarceration costs is estimated to be the following over the next three-year period: Increase in State Expenditures Amount Fiscal Year $ 4,000 FY25-26 $ 4,000 FY26-27 $ 4,000 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 $20,500 ($4,000 + $4,000 + $12,500). • 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. SB 632 - HB 944 4 • 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