SB 1282 - HB 1310
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 1, 2025
Fiscal Analyst: Chris Higgins | Email: chris.higgins@capitol.tn.gov | Phone: 615-741-2564
SB 1282 - HB 1310
SUMMARY OF BILL: Reduces, from once per month to once every three months, the time
period within which the Department of Health (DOH) must inspect every public swimming pool in
the state. Reduces, from once every six months to once every year, the time period in which DOH
must inspect every bed and breakfast facility in the state.
Eliminates the existing permit fee schedule for food service establishments and requires the
Commissioner DOH to set the new permit fee schedule by rule. Establishes that the new permit fee
schedule goes into effect on January 1, 2026. Removes certain requirements and regulations
regarding quick fast food establishments that provide delivery services.
Increases, from $50 to $100, the maximum fine for a person who violates the rules or regulations
regarding organized camps, or who fails to perform the reasonable requirements of the DOH or
public health officer after receipt of 10 days' written notice of such requirements. Clarifies that
places established and used for a short-term rental unit are not considered organized camps.
Removes the requirement for DOH to establish minimum health standards for rented premises
unfit for habitation. Removes the requirements for an inspector or representative of the public
health department to inspect a building facility upon the filing of a complaint regarding the
condition of the premises. Removes the authority of a county clerk to accept rental payment sums
by tenants whose landlords are not in compliance with health standards for deposit in a special
account. Removes the ability of the county clerk to receive five percent of rental payment sums
forfeited to the state for the use of the county agency who receives complaints.
FISCAL IMPACT:
OTHER FISCAL IMPACT
Requiring the Department of Health to set certain permit fees by rule could impact state revenue.
The timing and extent of such changes cannot be reasonably determined.
SB 1282 - HB 1310 2
Assumptions:
• The DOH collected $6,415,017 in revenue from permit fees for the operation of lodging
establishments, food service establishments, and swimming pools in FY23-24.
• Eliminating the existing permit fee schedule for food service establishments and requiring
the Commissioner DOH to set the new permit fee schedule by rule introduces the potential
for future adjustments. While DOH has indicated that fees will remain at similar levels, any
future increases or decreases could impact state revenue and the department’s decisions
regarding fee changes cannot be reasonably determined.
• Pursuant to Tenn. Code Ann. §§ 68-111-101 and 68-111-103, a tenant whose rental
payments do not exceed $200 per week may file a complaint with their local building
inspector or county public health department regarding the conditions of their rented
premises.
• Pursuant to Tenn. Code Ann. §§ 68-111-104 and 68-111-106, if the landlord is found in
violation of health standards and does not correct the condition of the premises within 30
days, the tenant shall pay to the county clerk of the county in which the premises are
located the rental payments that may become due from that date.
• If the landlord does not correct the condition of the premises within six months from the
date of the first notice being given, the sum of the rental payments collected by the county
clerk may, upon a certificate of noncompliance being filed, be paid to the state for the use
of the county agency to whom the complaint was directed. The county clerk is authorized
to receive the sum of 5 percent from all such rental payment sums that are forfeited.
• According to DOH, such complaint and inspection procedures do not apply to tenants
who pay their rent monthly or for a term greater than monthly.
• There may be a decrease in local revenue received by county clerks and the agencies who
receive complaints on rental premises as a result of not receiving forfeited rental payments
from health code violations.
• However, it is assumed that most landlords whose premises are found in violation of health
codes correct the condition before the sum of the rent is forfeited to the state, and that any
decrease in local revenue as a result of the proposed legislation will not be significant.
• Any impact on DOH’s expenditures associated with operational changes 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