SB 991 - HB 1041 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly April 17, 2025 Fiscal Analyst: Laura Moore | Email: laura.moore@capitol.tn.gov | Phone: 615-741-2564 SB 991 - HB 1041 SUMMARY OF BILL: Requires the General Assembly (GA) to convene for session during the month of September on the Tuesday immediately following Labor Day in each odd numbered year and to adjourn no later than September 30th of the same year. Requires the September session to be funded through the existing budget of the GA’s legislative session. Creates parameters with regard to what bills or resolutions are authorized to be considered during the September session. FISCAL IMPACT: STATE GOVERNMENT EXPENDITURES Legislature FY25-26 $735,200 FY27-28 & Every Two Years Thereafter >$808,700 Assumptions: • The September session will convene on the Tuesday following Labor Day and adjourn no later than September 30 in each odd-numbered year. • It is assumed there will be no legislative proceedings on Fridays during the September session. • It is estimated that there will be an average of 16 additional days of session in each odd- numbered year. • Members of the GA receive a daily rate in per diem and a daily mileage rate for travel to and from the capital during session based on a 50-mile radius. • According to the Office of Legislative Administration (OLA) the following number of members from both chambers and the amounts of per diem reimbursements based on the 50-mile radius can be found in the chart below. Distance from Capitol Members Per Diem September Session Total Within 50 miles 36 $86.00 16 days $49,536.00 Greater than 50 miles 96 $379.44 16 days $582,819.84 TOTAL PER DIEM: $632,356 SB 991 - HB 1041 2 • Based on the per diem rate per member’s distance from the State Capitol, there would be an increase in per diem expenditures for 16 additional days of session of $632,356. • Average mileage reimbursement rates provided by OLA found in the chart below are used to calculate the total cost to both chambers for the additional September session days. Members living a distance greater than 50 miles away from the seat of the Capitol are reimbursed weekly. Distance from Capitol Members Rate September Session Total Within 50 miles 36 $29.41 16 days $16,940.16 Greater than 50 miles 93 $230.88 4 weeks $85,887.36 TOTAL MILEAGE: $102,827.52 Total Mileage and Per Diem: $735,184 • A total increase in state expenditures for per diem and mileage reimbursements of $735,184 ($632,356 per diem + $102,828 mileage) beginning in FY25-26. • Pursuant to Tenn. Code. Ann. §§ 3-1-106 (b)-(c), reimbursements for per diem and mileage are statutorily mandated based on the federal rates as well as the average hotel rates in the Nashville central business district. • OLA provides that the current rate was an increase of 16 percent based on the hotel rates in the Nashville central business district from the previous year. Federal rates for Nashville increased by 5.7 percent from 2024 to 2025. It is assumed there will be at least a 10 percent increase by FY27-28. • A total increase in state expenditures for per diem and mileage reimbursement estimated to exceed $808,702 [($735,184 + ($735,184 x 10%)] in FY27-28 and every two years thereafter. • Pursuant to Tenn. Code Ann. § 2-10-310, fundraising is prohibited during an organizational session, general session, and any extraordinary session for members of the GA, the Governor, and political campaign committees. • Applying the existing campaign funding prohibitions during session to include the September session will not result in a significant fiscal impact to state or local government. CERTIFICATION: The information contained herein is true and correct to the best of my knowledge. Bojan Savic, Executive Director