SB 189 – HB 407
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 16, 2025
Fiscal Analyst: Laura Moore | Email: laura.moore@capitol.tn.gov | Phone: 615-741-2564
SB 189 – HB 407
SUMMARY OF BILL: Requires the Tennessee Higher Education Commission (THEC) to
implement a program that awards $250 grants to full-time students enrolled in public institutions of
higher education (institutions) who provide to their enrolling institution proof of voluntarily
receiving testing for sexually transmitted diseases (STDs). Requires all grant funds expended to be
used for tuition, mandatory fees, textbooks, and course materials associated with the grant recipient's
undergraduate studies at their enrolling institution. Creates the Student STD Testing Grant Fund
(Fund) as a separate account in the General Fund. Authorizes the Commissioner of the Department
of Finance and Administration to carry forward any revenue in the Fund each fiscal year. Requires
any money in the Fund to be invested by the state Treasurer for the sole benefit of the Fund.
Requires THEC to: (1) develop a grant application that includes a form of proof of STD testing; (2)
limit the number of grants to each student to one grant per academic year for up to four years; (3)
notify each eligible student of the grant program and its requirements; (4) ensure each institution
accepts the grant application and report to THEC the number of eligible students to whom grants
are awarded, and; (5) remit grant funds to each institution for distribution to each eligible student.
Effective upon becoming law for the purpose of promulgating rules. Effective January 1, 2026, for
all other purposes, and applies to grants awarded for the 2026-2027 academic year and each year
thereafter.
FISCAL IMPACT:
STATE GOVERNMENT
REVENUE General Fund Student STD Testing Grant Fund
FY26-27 - $12,410,800
FY27-28 & Subsequent Years - > $12,410,800
EXPENDITURES General Fund Student STD Testing Grant Fund
FY26-27 $12,410,800 $12,410,800
FY27-28 & Subsequent Years > $12,410,800 > $12,410,800
Assumptions:
• There are six locally governed institutions (LGIs), five institutions governed under the
University of Tennessee System (UT) that are most relative to this legislation, 13
community colleges, and 24 Tennessee Colleges of Applied Technology (TCAT) governed
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under the Tennessee Board of Regents that combined represent the public institutions of
higher education in this state.
• The following table estimates the total number of full-time undergraduate students
combined at each institution type using the full-time enrollment (FTE) data from the
academic year 2022-2023 for TCATs and fall term data from the academic year 2023-24 for
LGIs and UT found in the Tennessee Higher Education Commission’s Annual Fact Book
Report from 2023-2024.
Public FTE Undergraduate Student Data by Institution Type for FY23-24
Locally
Governed
Institutions
University of
Tennessee System
Community
Colleges
TN Colleges of
Applied Technology
Total
68,173 52,044 47,315 14,189 181,721
• It is estimated that there will be an average three percent annual increase in the number of
students enrolled full-time at the institutions each academic year.
• The total public FTE undergraduate student population in the academic year 2026-2027 is
estimated to be 198,571 students as follows:
o 181,721 students x 103% = 187,173 students in academic year 24-25;
o 187,173 students x 103% = 192,788 students in academic year 25-26; and
o 192,788 students x 103% = 198,571 students in academic year 26-27.
• It is further estimated that approximately 25 percent of those eligible students or 49,643
(198,571 FTE students x 25%) will voluntarily elect to take the STD testing to receive a
$250 grant.
• This legislation is effective January 1, 2026, but applies to grants awarded for the 2026-2027
academic year and each year thereafter.
• The increase in expenditures from the Fund are estimated to be $12,410,750 ($250 grant x
49,643 students) in FY26-27.
• It is assumed that the total population of eligible students enrolled at state institutions will
continue to grow at the estimated rate of three percent each year. It is further assumed that
participation in the program will continue to grow alongside the student population, and as
awareness of the program expands. Therefore, the increase in expenditures from the Fund
is estimated to exceed $12,410,750 in FY27-28 and subsequent years.
• Per the proposed legislation, the Fund can receive appropriations from the General
Assembly, gifts, grants, and other donations made specifically for the purposes of the Fund.
This analysis assumes the Fund will be funded in full by appropriations from the General
Assembly. No other gifts, grants, or donations are assumed.
• The public institutions can effectuate the proposed legislation within existing resources; any
impact on the institutions will not be significant.
• Based on information provided by THEC, the Commission can comply with the proposed
legislation’s requirement within existing resources.
• The Commissioner of Finance and Administration and the State Treasurer can carry out the
requirements within existing job duties without a significant impact to state government.
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CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director