HB 145 - SB 268
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 10, 2025
Fiscal Analyst: Natalie Dusek | Email: natalie.dusek@capitol.tn.gov | Phone: 615-741-2564
HB 145 - SB 268
SUMMARY OF BILL: Establishes the “Tennessee Reduction of Unlawful Migrant Placement
(TRUMP) Act.” Defines, for use throughout Tennessee Code Annotated, unless the context
otherwise requires, “resident of this state” or “citizen of this state” to mean citizens of the United
States, and aliens lawfully present in this state who can provide two forms of government
identification to verify qualified alien status.
Prohibits a financial institution in this state from sending or transferring funds electronically to a
person or account outside of the United States and its territories without verifying the immigration
status of the person who intends to send or transfer such funds. Requires a financial institution to
request from the person a validly issued form of government identification and to maintain a copy
of the identification for two years. Authorizes the Department of Financial Institutions (DFI) to
review the records at any time and request a mandatory report annually. Authorizes the
Commissioner of DFI to order a financial institution that has violated the legislation’s requirements
to pay a civil penalty, in an amount to be determined by rule of the DFI, to the state. Authorizes the
Commissioner of DFI and Attorney General (AG) to enforce the requirements against any financial
institution within their jurisdiction. Specifies aspects of a particular case the Commissioner of DFI
must consider in determining the penalty.
Requires the parent, guardian, or legal custodian of a pupil who is not lawfully residing in this state,
but is enrolled in a public school in the district in which the pupil resides, to be charged tuition and
fees in the same manner as tuition and fees are charged to pupils who do not reside in the county
pursuant to existing law.
FISCAL IMPACT:
OTHER FISCAL IMPACT
The proposed legislation may result in a decrease to the Tennessee Investment in Student
Achievement allocation to school districts for any local education agency or public charter school
that realizes a decrease in enrollment due to students unable to pay the tuition and fees. Any impact
will occur in the year following disenrollment, the extent of which cannot be estimated.
Additionally, the legislation may result in increased revenue to local governments due to an increase
in the number of students paying tuition and fees; however, the extent and timing of such an
increase can not be determined with reasonable certainty.
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The proposed legislation may jeopardize federal funding to the state and to local governments.
However, due to multiple unknown factors, the extent and timing of any decrease in federal funding
cannot be determined with any certainty.
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:
Transferring Funds Without Verifying Immigration Status
• The proposed legislation defines “financial institution” to mean a bank, savings bank,
savings and loan association, or a subsidiary of those entities, industrial loan and thrift
company, credit union, mortgage broker, mortgage banker, or leasing company accepting
deposits, making or arranging loans, and making or arranging leases.
• The proposed legislation authorizes the Commissioner of DFI and the AG to enforce the
legislation’s requirements against any financial institution within their jurisdiction.
• Based on information provided by the AG and DFI, any impact associated with
enforcement of this requirement is estimated to be not significant.
• The DFI can provide any additional training to its examiners within existing resources;
therefore, any impact is estimated to be not significant.
Public School Tuition and Fees for Unlawful Residents
• Pursuant to Tenn. Code Ann. § 49-6-2003(b), tuition and fees may be charged by any
county to pupils not residing in that county. Such tuition and fees may not exceed per pupil,
an amount equal to the amount of funds actually raised and used for school purposes by the
county, divided by the number of pupils in average daily attendance in the county schools
during the preceding school year.
• The proposed legislation requires the parent, guardian, or legal custodian of a pupil who is
not lawfully residing in this state to pay tuition and fees in the same manner as charged to
pupils who do not reside in the county.
• For the 2024-2025 school year, the TISA base funding amount is $7,075 and the average
TISA payment per pupil that is subject to the state and local share of 70/30 is $8,959.
• It is unknown how many students in the state may not be able to provide any of the
required documentation. It is additionally unknown how many parents, guardians, or legal
custodians of such students may not be able to pay the required tuition and fees.
• The proposed legislation does not establish specific penalties for persons who violate this
requirement. It is possible that some students may be unenrolled, or that legal custodians
may be liable for restitution to the school district as they would under Tenn. Code Ann. §
49-6-3003(c).
• An increase in local revenue will occur due to those students who are unable to provide any
of the required documentation and subsequently pay tuition. However, due to multiple
unknown factors, the extent and timing of any such increase cannot be determined with
certainty.
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• Any decrease in enrollment as a result of the proposed legislation will be reflected in the
TISA funding formula in the following school year. Any litigation costs associated with
actions for restitution will be borne by private parties.
• The number of appeals to the DOE cannot be reasonably forecasted. It is assumed the
DOE will establish an appeal process within existing resources; however, the assumption
that any impact can be absorbed will need to be revisited if a significant number of appeals
are filed on a recurring basis.
• Title VI of the Civil Rights Act of 1964 prohibits discrimination based on race, color, or
national origin in programs or activities that receive federal financial assistance.
• According to the United States Department of Justice, Civil Rights Division, the
discrimination protections in Title VI apply to undocumented individuals in the United
States.
• As a condition of receiving federal funds, the DOE must sign assurances that it will comply
with federal civil rights laws such as Title VI. Violations of federal civil rights laws may
place this funding at risk, however, the specific amount at risk is undetermined.
• The DOE receives $1,105,785,800 in federal education funding as follows:
o $408,042,600 for the Every Student Succeeds Act;
o $255,559,500 for the Individuals with Disabilities Act;
o $28,511,100 for the Carl Perkins Act; and
o $413,672,600 for School Nutrition.
• The proposed legislation may also jeopardize federal funding received by LEAs and public
charter schools. Due to multiple unknown factors, the extent and timing of any such
decrease cannot be determined with certainty.
Other
• The AG will be able to defend the state’s interests within existing resources should any legal
issues arise as a result of the proposed legislation. Based on information provided by the
AG, any impact is estimated to be not significant.
• Based on information provided by the Department of Safety, any impact resulting from the
proposed legislation is estimated to be not significant.
IMPACT TO COMMERCE OF BILL AS AMENDED:
OTHER COMMERCE IMPACT
Due to multiple unknown variables, any impact to commerce cannot be quantified with reasonable
certainty.
Assumption:
• Due to multiple unknown variables, any impact on commerce cannot be quantified with
reasonable certainty.
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CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director