HB 788 - SB 1136 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly March 17, 2025 Fiscal Analyst: Natalie Dusek | Email: natalie.dusek@capitol.tn.gov | Phone: 615-741-2564 HB 788 - SB 1136 SUMMARY OF BILL: Eliminates the requirement that a person sign an affidavit stating the person: (1) is a registered voter in this state; and (2) needs a photo identification license for voting purposes; in order for the person to be issued a free photo identification license by the Department of Safety (DOS). Requires such free photo identification licenses to be made available at each location in this state where the DOS issues driver or photo identification licenses. FISCAL IMPACT: OTHER FISCAL IMPACT The legislation will require updates to the Department of Safety’s A-List software system. The updates are assumed to be accomplished by the relevant vendor under the current contractual agreement at no additional cost to the department. However, if the relevant contract provision is exhausted by this and other legislation subsequently enacted, the Department of Safety could incur an additional increase in expenditures estimated to be $890,000, as provided by the vendor, in FY25- 26. Assumptions: • Pursuant to Tenn. Code Ann. § 55-50-336(g), a photo identification license must be issued free of charge if the person signs an affidavit stating that the person does not have a valid government issued photo identification, is a registered voter in this state, and needs the photo identification license for voting purposes. • The proposed legislation requires the DOS to issue free photo identification licenses if the person signs an affidavit stating that the person does not have a valid government issued photo identification. It eliminates the other two requirements. It also requires free photo identification licenses to be made available at each location where the DOS issues a driver or photo identification licenses. • The proposed legislation will require updates to the DOS’s A-List software system to support the expanded free photo identification issuance for driver license interfaces, online services, and self-service kiosks. • Based on an estimate provided by the vendor Fast Enterprises, the cost to implement these changes is $890,000. It is assumed that these modifications can be accomplished by the vendor under the current contractual agreement without a need for additional expenditures; therefore, any fiscal impact to DOS is estimated to be not significant. HB 788 - SB 1136 2 • However, if the relevant contract provision is exhausted by this and other legislation subsequently enacted, the DOS could incur an additional increase in expenditures estimated to be $890,000, as provided by the vendor, in FY25-26. CERTIFICATION: The information contained herein is true and correct to the best of my knowledge. Bojan Savic, Executive Director