HB 1175 - SB 1379
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 28, 2025
Fiscal Analyst: Alan Hampton | Email: alan.hampton@capitol.tn.gov | Phone: 615-741-2564
HB 1175 - SB 1379
SUMMARY OF BILL: Requires a local education agency (LEA) in which one or more child
care agencies operate to submit a comprehensive list of all underutilized property or vacant property
to the Department of Education (DOE) and the Comptroller of the Treasury (COT) and for the
department to make the list available to a child care agency operating in the LEA.
Grants a child care agency that operates in an LEA a first right of refusal to lease or purchase
underutilized property from LEAs. Establishes conditions and responsibilities for the maintenance
and repair of a child care agency leased from an LEA.
Authorizes a child care agency to petition the COT for an audit of the list of all underutilized
property or vacant property submitted by the LEA in which the child care agency is, or will be,
geographically located. Authorizes a host school's fire inspection and facilities to be sufficient to
meet the requirements for a child care agency’s provisional license under the Department of Human
Services (DHS).
Classifies a child care family home for certain purposes, including zoning and building codes.
Prohibits a local governing authority from imposing stricter requirements provided by the Division
of Fire Prevention or additional regulations that do not apply to other residential properties on a
child care family home.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Pursuant to Tenn. Code Ann. § 49-13-136(c)(2), LEAs in which one or more public charter
schools operate are required to submit a list of underutilized or vacant property to the
DOE and the COT.
• Requiring LEAs to also submit such list if one or more child care agencies operate in the
district can be absorbed utilizing existing staff and resources, with no increase in local
expenditures.
• The DOE will make the list of underutilized or vacant property available to child care
agencies with existing staff and resources; any impact to state expenditures is not significant.
• The COT will be able to conduct a requested audit by a child care agency for the listing of
underutilized or vacant property within existing resources such that any fiscal impact is
estimated to be not significant.
• The proposed legislation authorizes a child care agency that is operating in an LEA to be
provided the right of first refusal to:
HB 1175 - SB 1379 2
o Purchase vacant property at or below fair market value; or
o Lease underutilized property or vacant property listed by the LEA at or below fair
market value for child care use.
• It is unknown how many LEAs will lease or sell underutilized or vacant properties to child
care agencies and subsequently lose the market value that could have been recovered
otherwise. This may result in an undetermined decrease in local revenue. However, any
such decrease is estimated to be not significant.
• Pursuant to Tenn. Code Ann. § 71-3-502(d):
o A person or entity that does not have an existing license to operate a child care
agency may apply for a provisional license in order to permit the license applicant to
begin the operation of a child care agency after meeting certain minimum
requirements; and
o An applicant for a child care agency may receive a provisional license upon the
presentation of certain satisfactory evidence, including that that the facility that is
proposed for the care of children has received fire safety and environmental safety
approval.
• The proposed legislation authorizes a host school's fire inspection and facilities to be
sufficient to meet DHS’ requirements for a child care agency’s provisional license. Per the
legislation, a “host school” is a public or private school that has a child care agency or early
learning program in the school not affiliated with such school.
• It is not expected that the proposed legislation will result in a significant increase in
provisional licenses issued in the state.
• DHS will be able to update their policies to comply with the changes to provisional
licensure within existing resources such that any fiscal impact is estimated to be not
significant.
• The proposed legislation classifies a child care family home as a residential property for the
purposes of zoning, land use development, fire and life safety, sanitation, and building
codes.
• A prospective child care agency will be able to comply with all applicable codes and
regulations and will bear the cost of any related compliance such that any fiscal impact to
local government is estimated to be not significant.
• The proposed legislation also prohibits local governing authorities from imposing stricter
requirements than those provided by the Division of Fire Prevention or adding regulations
that do not apply to other residential properties on a child care family home.
• Local governing authorities will be able to comply with the prohibition such that any fiscal
impact 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