HB 207 - SB 240
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 18, 2025
Fiscal Analyst: Arielle Woodmore | Email: arielle.woodmore@capitol.tn.gov | Phone: 615-741-2564
HB 207 - SB 240
SUMMARY OF BILL: Expands the offense of organized retail crime. Increases the time
period, from 90 days to 180 days, that acts in concert with one or more individuals to commit theft
of merchandise over $1,000 can be considered organized retail crime. Enhances the penalty for the
offense of organized retail crime one classification higher, if the defendant engaged in the
destruction of property or used a weapon during the commission of the offense.
FISCAL IMPACT:
STATE GOVERNMENT
EXPENDITURES Incarceration
$15,700
Assumptions:
Expansion of Organized Retail Crime
• Tennessee Code Annotated § 39-14-113(c)(1)-(2) establishes that a person commits the
offense of organized retail crime when the person:
o Acts in concert with one or more individuals to commit theft of any merchandise
with a value greater than $1,000 aggregated over a 90-day period with the intent to
sell, barter, or trade the merchandise for monetary or other gain or fraudulently
return the merchandise to a retail merchant; or
o Receives, possesses, sells, or purchases, by physical or electronic means, any
merchandise or stored value cards obtained from a fraudulent return with the
knowledge that the property was obtained by theft of property or theft of property
where the conduct involved merchandise.
• The proposed legislation expands the offense of organized retail crime to include:
o Knowingly removing, destroying, deactivating or evading any component of an anti-
shoplifting or inventory control device to prevent the activation of that device or to
facilitate the commission of such offense;
o Knowingly activating or interfering with a fire alarm system during the commission
of the offense or to facilitate the commission of such offense;
o Knowingly using an online marketplace or a social media platform to coordinate a
meeting with one or more individual to sell, barter, or trade stolen merchandise for
monetary or other gain;
o Knowingly returning stolen merchandise or counterfeit merchandise to a retail
merchant;
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o Receiving, purchasing, or possessing retail merchandise for the purpose of sale or
resale knowing or believing the merchandise to be stolen from a merchant;
o Knowingly using any artifice, instrument, container, device, or other article to
facilitate the commission of such offense;
o Knowingly using a device or apparatus, including, but not limited to, a device or
apparatus that can be affixed to point-of-sale terminals, automated teller machines,
fuel pumps, and other payment processing devices, unlawfully to capture, record, or
transmit the electronic information contained on the magnetic strip or embedded
chip of a credit card, debit card, or other payment device with the intent to defraud
another; or
o Knowingly possessing, controlling, or having custody of 10 or more fraudulently
obtained access devices, including gift cards, with the intent to defraud another.
• This analysis assumes individuals charged with the expanded offense of organized retail
crime pursuant to the proposed legislation would be charged with theft of property
involving merchandise pursuant to Tenn. Code Ann. § 39-14-146 under current law.
• The offenses of organized retail crime and theft of merchandise are graded the same as
theft; therefore, there will not be a sufficient change in the number of prosecutions for state
or local government to experience any significant change in revenue or expenditures.
• The proposed legislation expands, from over a 90-day period to over a 180-day period, the
time period over which a person that acts in concert with one or more individuals to
commit theft of any merchandise with a value greater than $1,000 aggregated commits
organized retail crime.
• Pursuant to Tenn. Code Ann. § 39-14-105(a), theft of property is a:
o Class A felony if the value of the property obtained is more than $250,000;
o Class B felony if the value of the property obtained is more than $60,000 but less
than $250,000;
o Class C felony if the value of the property obtained is more than $10,000 but less
than $60,000;
o Class D felony if the value of the property obtained is more than $2,500 but less
than $10,000;
o Class E felony if the property obtained is a firearm worth less than $2,500, or if the
value of the property obtained is more than $1,000 but less than $2,500; and
• Based on information provided by the Administrative Office of the Courts and the DOC
Jail Summary Reports, in each of the last five years, there have been an average of the
following convictions for organized retail crime:
o 2.4 Class E felony convictions; and
o 1.6 Class D felony convictions.
• It can be reasonably assumed that admissions for organized retail crime will increase 25
percent as follows:
o 0.6 (2.4 x 25%) additional Class E felonies; and
o 0.4 (1.6 x 25%) additional Class D felonies.
• The average time served for a Class E felony is 0.56 years
• Based on population data from the U.S. Census Bureau, population growth in Tennessee
averaged 1.24 percent per year (from 2021 to 2024).
• The weighted average operational costs per inmate per day are estimated to be $62.02 for
inmates housed at state facilities and $50.51 for inmates housed at local facilities.
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• The increase in incarceration costs is estimated to be the following over the next three-year
period:
Increase in State Expenditures
Amount Fiscal Year
$ 7,300 FY25-26
$ 7,500 FY26-27
$ 7,600 FY27-28
• The average time served for a Class D felony is 0.93 years
• The increase in incarceration costs is estimated to be the following over the next three-year
period:
Increase in State Expenditures
Amount Fiscal Year
$ 8,100 FY25-26
$ 8,100 FY26-27
$ 8,100 FY27-28
• Pursuant to Chapter 1007 of 2022, recurring costs increases are to be estimated on the
highest of the next three fiscal years; therefore, the recurring increase in incarceration costs
will be $15,700 ($7,600 + $8,100).
Organized Retail Crime – Penalty Enhancement
• The proposed legislation enhances the penalty for the offense of organized retail crime, one
classification higher, if the defendant engaged in the destruction of property or used a
weapon during the commission of the offense.
• This analysis assumes individuals charged with:
o Using a weapon during the commission of organized retail crime pursuant to the
proposed legislation would be charged with the Class B felony of aggravated
robbery theft pursuant to Tenn. Code Ann. § 39-13-402 under current law; and
o Being engaged in the destruction of property during the commission of organized
retail crime pursuant to the proposed legislation would be charged with felony
vandalism pursuant to Tenn. Code Ann. § 39-14-408 under current law.
• There will not be a sufficient change in the number of prosecutions for state or local
government to experience any significant change in revenue or expenditures.
• 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 in criminal cases
is insignificant. The proposed legislation will not significantly change state or local revenue.
• The estimated fiscal impact of the proposed legislation does not consider the availability of
beds in state and local facilities, but is based solely on the current operating costs of state
facilities and the reimbursement rates for local facilities as is required by Tenn. Code Ann. §
9-4-210.
• All calculations used in completion of this fiscal analysis are available upon request.
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CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director