HB 1098 - SB 1253 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly March 22, 2025 Fiscal Analyst: Natalie Dusek | Email: natalie.dusek@capitol.tn.gov | Phone: 615-741-2564 HB 1098 - SB 1253 SUMMARY OF BILL: Creates a Class A misdemeanor offense for a person that is not a citizen of the United States or a lawful permanent resident to knowingly carry or possess a firearm, including a firearm that was privately assembled and does not contain a serial number or other mark in a manner that conforms with federal law. FISCAL IMPACT: LOCAL GOVERNMENT EXPENDITURES Mandatory FY25-26 & Subsequent Years $942,900 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: • Pursuant to 18 U.S.C. § 923(i), licensed importers and manufacturers shall identify by means of a serial number engraved or cast on the receiver or frame of each firearm. • The proposed legislation creates a Class A misdemeanor offense for an illegal alien to posses or carry a firearm. The legislation specifies that a firearm, for purposes of the offense, includes those that do not contain a serial number or other unique identifying mark as required by federal law. • Some firearms may be privately assembled by using a weapons parts kit, which are widely available online. • The proliferation of firearms that lack the mandated serial numbers or other lawful identification mark is understood to be a growing problem, and the number of such firearms circulating in Tennessee is assumed to be significant. • It is unknown how many illegal aliens reside or are present in Tennessee at any given time. It is conservatively estimated to exceed 100,000 individuals. It is also unknown the number of such persons in this state who may be in possession of, or carry on their person, firearms, or how many they may possess or carry. • Based on a 2020 study conducted by the RAND organization, approximately 52 percent of adults in this state have one or more firearms in their home. • This number is assumed to be approximate to the percentage of illegal aliens who possess a firearm in their homes. • According to the Census Bureau data, 78 percent of individuals in Tennessee are 18 years or older. These individuals are considered “adults” for the purposes of this analysis. HB 1098 - SB 1253 2 • Therefore, it is assumed that at least 40,560 (100,000 individuals x 78% x 52%) illegal aliens may be in possession of a firearm in this state at any given time. • It is unknown how many of those firearms will be discovered by law enforcement and result in a conviction under the proposed legislation. It is assumed that at least five percent, or 2,028 illegal aliens (40,560 x 5%) will be charged and convicted. • However, it is assumed that 50 percent of such discoveries will be made in conjunction with the commission of other crimes for which those individuals would be convicted and serve time for. • It is estimated that, on average, persons convicted of a Class A misdemeanor offense serve 15 days in jail. • Based on cost estimates provide by local government entities throughout the state and reported bed capacity within such facilities, the weighted average cost per day to house an inmate in a local jail facility is $61.99. • The proposed legislation is estimated to result in a mandatory increase in local expenditures estimated to be $942,867 (2,028 convictions x 50% new convictions x 15 days x $61.99 cost) in FY25-26 and subsequent years. • 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 of fines in criminal cases is insignificant; therefore, any increase in local revenue from fines is estimated to be not significant. CERTIFICATION: The information contained herein is true and correct to the best of my knowledge. Bojan Savic, Executive Director