SB 821 - HB 902
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 9, 2025
Fiscal Analyst: Alan Hampton | Email: alan.hampton@capitol.tn.gov | Phone: 615-741-2564
SB 821 - HB 902
SUMMARY OF BILL: Requires each local education agency (LEA) and public charter
school to annually implement an evidence-based substance abuse and violence prevention program
in each school that serves students in any of the grades three through twelve (3-12) to reduce
tobacco, alcohol, and illicit drug use by students.
FISCAL IMPACT:
OTHER FISCAL IMPACT
Requiring state special schools, local education agencies, and public charter schools to implement
an evidence-based substance abuse and violence prevention program will result in a mandatory
increase in state and local expenditures. However, due to multiple unknown factors, including the
selection of a vendor and the cost of providing instructional materials or programs, a fiscal impact
cannot be precisely quantified.
*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:
• The proposed legislation requires each LEA and public charter school to implement an
evidence-based substance abuse and violence prevention program in each school that serves
students in any of the grades 3-12 and each program must:
o Include drug-prevention-related education that promotes anti-drug norms and
teaches drug-refusal skills and life skills training that fosters the development of
personal self-management skills and general social skills;
o Be provided to students throughout the school year; and
o Supplement, not supplant, any other drug abuse or life skills education provided
such as the Drug Abuse Resistance Education (D.A.R.E.) program, character
education required in Tenn. Code Ann. § 49-6-1007, any instruction required as part
of a coordinated school health program, and the family life instruction.
• The state special schools, LEAs, and public charter schools will be required to purchase, or
reproduce, instructional materials or programs that align with providing the instruction or
evidence that the proposed program curriculum requires.
• It is assumed that, at a minimum, curriculum and instructional materials will be required to
be purchased for grades 3-8. Resources already in use to meet Lifetime Wellness standards
could be utilized for high school students.
SB 821 - HB 902 2
• Based on the Office of Coordinated School Health data, many districts utilize the Michigan
Model for a health education curriculum.
• The Michigan Model is not the only curricula available, but for the purposes of this analysis,
it is used to estimate a potential cost.
• The cost to provide each school building for the respective grade level with a digital license
and lesson kit is estimated as follows:
Grade
Level
# of
Buildings Description One-Time Cost Recurring Cost
3rd 1033
$348 per lesson kit;
$44.50 per year/license $359,484 $45,969
4th 1036
$298 per lesson kit;
$44.50 per year/license $308,728 $46,102
5th 1023
$298 per lesson kit;
$44.50 per year/license $304,854 $45,524
6th 656
$328 per lesson kit;
$44.50 per year/license $215,168 $29,192
7th & 8th 626
$498 per lesson kit;
$44.50 per year/license $311,748 $27,857
$1,499,982 $194,644
• Based on utilizing the Michigan Model for students in grades 3-8 the increase in
expenditures is estimated as follows:
o $1,694,626 ($1,499,982 + $194,644) in FY25-26; and
o $194,644 in FY26-27 and subsequent years.
• Requiring state special schools, LEAs, and public charter schools to implement an
evidence-based substance abuse and violence prevention program will increase state and
local expenditures. However, due to multiple unknown factors, including the selection of a
vendor and the cost of providing instructional materials or programs, a fiscal impact cannot
be precisely quantified.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director