SB 1262 – HB 1379
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 22, 2025
Fiscal Analyst: Arielle Woodmore | Email: arielle.woodmore@capitol.tn.gov | Phone: 615-741-2564
SB 1262 – HB 1379
SUMMARY OF BILL: Prohibits a person from sending a fake check or an image of a fake
check by mail for the purpose of advertising. Establishes a violation of such as an unfair and
deceptive act or practice under the Consumer Protection Act of 1977 (Act) and is also subject to the
remedies and penalties under the Tennessee Banking Act. Requires the Department of Financial
Institutions (DFI) to enforce the prohibition and to promulgate rules to facilitate such enforcement.
FISCAL IMPACT:
STATE GOVERNMENT
EXPENDITURES Department of Financial Institutions
FY25-26 $190,800
FY26-27 & Subsequent Years $189,600
Total Positions Required: 1
Assumptions:
• The proposed legislation establishes that mailing a person a fake check or an image of a
fake check for the purpose of advertising is an unfair and deceptive act or practice under
the Act.
• Committing an unfair or deceptive practice under the Act is a Class B misdemeanor
offense.
• Pursuant to Tenn. Code Ann. § 47-18-114, the Attorney General (AG) may bring any
appropriate action or proceeding in any court of competent jurisdiction pursuant to the Act.
• Any increase in the number of complaints handled by the AG is estimated to be not
significant and can be handled by existing staff during normal work hours.
• However, the proposed legislation requires DFI to enforce the prohibition, potentially
expanding the DFI’s regulatory jurisdiction.
• For any entities outside of its ordinary jurisdiction, DFI would be required to utilize the
Commissioner's subpoena power in order to detect any violations of the proposed
legislation, which will incur additional legal expenses and resources.
• Additionally, DFI will incur unknown legal expenses to bring administrative and other legal
actions against persons that violate the proposed legislation.
• The number of violations is unknown, and the amount of effort it will take to enforce them
is unclear; therefore, the precise increase in various administrative and legal expenditures to
the DFI related to enforcing the legislation is unknown.
SB 1262 – HB 1379 2
• According to information provided by DFI, the department does not currently have the
personnel required to oversee enforcement, and would need to hire one additional
Associate General Counsel position.
• The increase in state expenditures for the Associate General Counsel position is estimated
to be $185,963 ($152,616 salary + $33,347 benefits) in FY25-26 and subsequent years.
• There will be an additional increase in expenditures related to training and computer costs
estimated to be $4,797 in FY25-26.
• The recurring increase in expenditures related to supplies and communications is estimated
to be $3,615 in FY26-27 and subsequent years.
• The total increase in state expenditures to the DFI related to the position is estimated to be
$190,760 ($185,963 salary & benefits + $4,797 operating) in FY25-26.
• The total increase in state expenditures to the DFI related to the position is estimated to be
$189,578 ($185,963 salary & benefits + $3,615 operating) in FY26-27 and subsequent years.
• Due to the additional unknown amount of various legal and administrative expenditures
related to enforcement, the increase in state expenditures is estimated to exceed these
amounts in FY25-26 and subsequent years.
• Pursuant to Tenn. Code Ann. § 8-6-301, the AG shall direct and supervise all investigations
and litigation necessary to the administration of the duties of the various offices,
departments, agencies, boards, commissions or instrumentalities of the state, and no such
entities shall institute any civil proceeding except through the AG.
• According to the DFI, the AG would represent the DFI in chancery court to bring legal
actions against persons that violate the proposed legislation. The AG can bring appropriate
actions as the AG and the DFI deem necessary within existing resources.
• Any additional workload on the courts can be accommodated within existing resources.
IMPACT TO COMMERCE:
NOT SIGNIFICANT
Assumption:
• Any impact to commerce or jobs in Tennessee is estimated to be not significant.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director