SB 1316 - HB 1330
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 2, 2025
Fiscal Analyst: Laura Moore | Email: laura.moore@capitol.tn.gov | Phone: 615-741-2564
SB 1316 - HB 1330
SUMMARY OF BILL: Enacts the Less is More Act of 2025. Terminates the Board of Court
Reporting and moves all rules and regulations of licensing provided to the board under the
Tennessee Court Report Act of 2009 to the Department of Commerce and Insurance (DCI).
Deletes the provision in statute that grandfathered in the license of a court reporter who was
licensed before January 1, 2010. Changes the name of the Tennessee Board of Court Reporting
Fund to the Tennessee Court Reporting Fund.
Exempts facilities that are operated for the provision of the Employment and Community First
CHOICES program and services for comprehensive behavioral support for adults with intellectual
or developmental disabilities, or severe behavioral or psychiatric conditions, or any successor
program or service, or a home and community-based services waiver approved by the Centers for
Medicare and Medicaid Services, from licensing under the Department of Mental Health and
Substance Abuse Services, and moves such licensing requirements under the Department of
Disability and Aging.
Authorizes an additional option as one of the requirements for a certificate as a public account to
include 120 hours of college education with the total educational program including an accounting
concentration or equivalent as determined by the State Board of Accountancy. Requires applicants
to obtain one to two years of experience depending on the type of completed education before
being granted a certificate. Reduces regulations related to certificate issuance and renewals for
accountants certified in other states.
Removes annual inspection requirements of barber shops, barber schools, or colleges under the
Board of Cosmetology and Barber Examiners and requires the Board to establish rules regarding the
frequency of inspections.
Extends, from six months to two years, the period that an applicant has to apply for a real estate
broker's license after passing the examination before being required to retake the examination in
order to be eligible for a license. Authorizes a broker who has temporarily retired to submit proof of
completion of a commission-approved course consisting of 30 hours of continuing education to
reactivate their license. Prohibits a licensed brokers penalty fee of $100 per month from exceeding
12 months. Authorizes a licensee in good standing with the Commission, whose license has been
expired for more than two years, but has not been temporarily retired, to reactivate the license upon
payment of the penalty fee accessed for all 12 months and completion of a commission-approved
course consisting of 30 hours of continuing education.
Deletes the Soil Scientist Licensure Act of 2009, removing all licensing regulation. Renames the
Geologist and Soil Scientist Regulatory Fund to the Geologist Regulatory Fund.
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Authorize any board-run, commission-run, or commissioner-run program in the Division of
Regulatory Boards of the DCI that issues a license, to enter into reciprocal agreements with
appropriate officials in other jurisdictions to grant licenses to persons or entities licensed in the other
jurisdictions who possess sufficient qualifications as established by the regulatory authority of this
state to operate across state lines under mutually acceptable terms.
Revises provisions governing participation in meetings by electronic means of communication.
Deletes the provisions that authorizes a meeting of a governing body over electronic means only as
necessary for purposes of a quorum, and authorizes a governing body to meet over electronic means
at any point, so long as certain conditions are met and the governing body meets with a quorum
physically present no less than once per calendar year.
Makes various changes to the composition, appointment rules, and term lengths relative to members
of a commission or board. Specifically makes variations of these changes to the following boards or
commissions: the Commission on Intergovernmental Relations, Board of the Tennessee Education
Lottery, Tennessee Peace Officer Standards and Training Commission (POST), Tennessee Motor
Vehicle Commission, Board of Accountancy, Board of Cosmetology and Barber Examiners, Board
of Funeral Directors and Embalmers, Tennessee Real Estate Commission, Board of Dentistry,
Board of Medical Examiners, Board of Optometry, Board of Dispensing Opticians, Board of
Respiratory Care, Tennessee Athletic Commission, and the Tennessee Fish and Wildlife
Commission.
FISCAL IMPACT:
STATE GOVERNMENT
REVENUE Geologist and Soil Scientist Regulatory Fund
FY25-26 & Subsequent Years ($6,500)
EXPENDITURES Board of Court Reporting Fund
FY25-26 & Subsequent Years ($4,000)
OTHER FISCAL IMPACT
Passage of this legislation may result in both increases and decreases in state revenue to various
boards, and a decrease in state expenditures for travel reimbursement across various governing
bodies. However, due to multiple unknown variables, the extent and timing of any such impacts
cannot be determined with reasonably certainty.
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Assumptions:
Tennessee Board of Court Reporting:
• Terminating the Tennessee Board of Court Reporting and moving its operations and
regulatory duties under DCI will result in a significant impact.
• The Tennessee Board of Court Reporting consists of 15 members.
• Pursuant to Tenn. Code Ann. § 20-9-604(h), members of the Board are entitled to
reimbursement for travel expenses. Board members are not entitled to any other
compensation.
• DCI provides that the Board’s annual average expenditures for travel reimbursements is
$4,000.
• Therefore, the recurring decrease in state expenditures is estimated to be $4,000 in FY25-26
and subsequent years.
• According to DCI, the operations and regulatory functions of the Board can be handled
under DCI within existing resources.
• Based on information provided by DCI, the department does not anticipate new licensing
fee revenue from those that were previously grandfathered in, as these licensees were still
required to pay the $200 biennial renewal fee.
• Changing the name of the Tennessee Board of Court Reporting Fund to the Tennessee
Court Reporting Fund will not impact revenue collections related to licensing.
• Pursuant to Tenn. Code Ann. § 4-29-121, all regulatory boards are required to be self-
sufficient over any two-year period. The Tennessee Board of Court Reporting experienced
a deficit of $45,201 in FY22-23, a surplus of $2,379 in FY23-24, and had a cumulative
reserve balance of $148,883 on June 30, 2024.
Department of Disability and Aging /Mental Health and Substance Abuse Services:
• According to the Department of Disability and Aging, adding the licensing exemption to
such facilities in statute under the Department of Mental Health and Substance Abuse
Services and moving such licensing requirements under the Department of Disability and
Aging is codifying current practice.
• The department confirms that these facilities are already licensed under the Department of
Disability and Aging; therefore, there will be no significant impact.
State Board of Accountancy:
• According to DCI, adding new authorized education revised experience requirements as
part of certification for a public accountant (CPA) is estimated to increase the number of
certified public accounts.
• The fee for an initial licensing as a CPA is $100 and the biennial renewal fee is $140.
• The number of new licensees is unknown and cannot be determined with reasonable
certainty. Any impact would increase revenue fee collections under the State Board of
Accountancy.
• DCI provides that the changes to certificate issuance and renewals for accountants certified
in other states are to address changing practices across the country and that there is no
estimated impact relative to the number of licenses issued or fee collected by the Board.
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• Pursuant to Tenn. Code Ann. § 4-29-121, all regulatory boards are required to be self-
sufficient over any two-year period. The State Board of Accountancy experienced a deficit
of $7,556 in FY22-23, a deficit of $13,958 in FY23-24, and had a cumulative reserve balance
of $1,587,244 on June 30, 2024.
Board of Cosmetology and Barber Examiners:
• Based on information provided by DCI, removing the annual frequency of such inspections
is estimated to reduce the Board’s expenditures. The new frequency of inspections is to be
determined by the Board, and is unknown at this time.
• The Board does not charge an annual inspection fee.
• Any reduction in expenditures to the Board cannot be determined with reasonable
certainty.
• Pursuant to Tenn. Code Ann. § 4-29-121, all regulatory boards are required to be self-
sufficient over any two-year period. The State Board of Cosmetology and Barber Examiners
experienced a deficit of $77,148 in FY22-23, a deficit of $40,834 in FY23-24, and had a
cumulative reserve balance of $1,181,639 on June 30, 2024.
Real Estate Commission:
• The provisions relative to the licensing, reinstatement, or prenatal fee cap of a real estate
broker's or affiliate broker's license are not estimated to increase the number of licensees
under the Tennessee Real Estate Commission. Any impact to the Commission’s revenue
collections or expenditures is estimated to be not significant.
• Pursuant to Tenn. Code Ann. § 4-29-121, all regulatory boards are required to be self-
sufficient over any two-year period. The Tennessee Real Estate Commission experienced a
surplus of $606,386 in FY22-23, a surplus of $449,941 in FY23-24, and had a cumulative
reserve balance of $9,206,575 on June 30, 2024.
Tennessee Professional Soil Scientists Licensing Act of 2009:
• Deleting the Soil Scientist Licensure Act of 2009 is estimated to decrease state revenue.
• Under the Act there is no board; licensing is regulated under DCI.
• According to DCI, all licensing rules and regulations will be terminated. Soil scientists will
no longer have a licensing requirement.
• DCI provides that there is a total of 65 licensed scientists, who pay a biennial fee of $400.
• Licensing revenue fee collections are deposited into the Geologist and Soil Scientist
Regulatory Fund. The proposed legislation changes the Fund to the Geologist Regulatory
Fund.
• The decrease in state revenue is estimated to be $13,000 ($400 fee x 65 licensees x 2
biennial fee) in FY25-26 and every two years thereafter. Annualized, the recurring decrease
in revenue is estimated to be $6,500 ($13,000 / 2).
• Pursuant to Tenn. Code Ann. § 4-29-121, all regulatory boards are required to be self-
sufficient over any two-year period. The Tennessee Professional Geologists/Soil Scientist
Licensing Program experienced a surplus of $42,424 in FY22-23, a surplus of $14,151 in
FY23-24, and had a cumulative reserve balance of $614,764 on June 30, 2024.
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Reciprocal agreements under DCI’s Division of Regulatory boards:
• Authorizing the Division of Regulatory Boards under DCI to enter into reciprocal
agreements to grant licenses to persons or entities licensed in the other jurisdictions is
estimated to increase licensing revenue fee collections; however, the number of new
licensees cannot be determined with reasonable certainty.
Meeting by Electronic Means:
• Tennessee Code Annotated § 8-44-108(b)(1) states that certain governing bodies may allow
participation in meetings by electronic means if a physical quorum is present or a
determination of necessity exists. Members who participate electronically are not eligible to
receive per diem.
• The proposed legislation authorizes participation in any meeting by electronic means so
long as certain conditions are met. Members who participate electronically will still not be
eligible for compensation.
• As a result of allowing more meetings by electronic means, it is estimated that there will be
a decrease to governing body travel expenditures. However, each governing body meets at
different frequencies, consist of different numbers of members, and receive different
compensation. Therefore, any reduction in state expenditures is dependent upon the
circumstances of the governing body and the extent and timing of the decrease in state
expenditures cannot be determined with reasonable certainty.
Appointment-related changes:
• The various changes to the composition, or appointment rules, or term lengths, relative to
members of a commission or board are not estimated to have a significant impact on state
government.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director