HB 545 - SB 677 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly February 17, 2025 Fiscal Analyst: Alan Hampton | Email: alan.hampton@capitol.tn.gov | Phone: 615-741-2564 HB 545 - SB 677 SUMMARY OF BILL: Requires the Department of Education (DOE) to provide at least one professional development course for teachers that provides asynchronous instruction on the use of artificial intelligence (A.I.) in the classroom, that is made available at no cost to teachers in grades six through twelve (6-12), and that may be used by teachers to earn professional development points. Requires teachers in grades 6-12 to complete at least one professional development course approved by the DOE that provides asynchronous instruction on the use of A.I. in the classroom by August 1, 2027, or within two years of becoming licensed as a teacher in this state, whichever is later. Requires each local education agency (LEA) and public charter school to approve professional development points for a teacher's completion of at least one department-approved A.I. training. FISCAL IMPACT: STATE GOVERNMENT EXPENDITURES General Fund FY26-27 $210,000 FY27-28 & Subsequent Years $45,000 Assumptions: • The DOE will competitively bid for a content developer to provide at least one professional development course for teachers that provides asynchronous instruction on the use of A.I. in the classroom. • Based on an analysis by the Tennessee Stem Innovation Network, the proposed legislation will require a one-time cost to develop content estimated to be $150,000 and an additional one-time cost of $15,000 to expand the DOE’s existing professional development platform TeachALL and to host content. • The recurring cost for the continued integration of the Badgr credentialing system on TN Compass is estimated to be $5,000 and annual maintenance is estimated to be $40,000. • The increase in state expenditures is estimated to be $210,000 ($150,000 + $15,000 + $40,000 + $5,000) in FY26-27 and $45,000 ($40,000 + $5,000) in FY27-28 and subsequent years. • Teachers will be able to use the professional development course at no cost; LEAs and public charter schools will be able to approve professional development points within existing resources such that any local fiscal impact is estimated to be not significant. HB 545 - SB 677 2 CERTIFICATION: The information contained herein is true and correct to the best of my knowledge. Bojan Savic, Executive Director