SB 1355 - HB 1396
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 14, 2025
Fiscal Analyst: Christine Drescher | Email: christine.drescher@capitol.tn.gov | Phone: 615-741-2564
SB 1355 - HB 1396
SUMMARY OF BILL: Enacts the Guaranteed Basic Income Act or the Protection Against
Automation Act, which requires the Department of Human Services (DHS) to develop and
implement a program in which eligible residents are awarded an annual guaranteed basic income
grant of $3,000 per year beginning in 2026, which must be paid as a monthly or semi-monthly
stipend.
Establishes the Guaranteed Basic Income Fund (Fund), which is established as a separate account in
the General Fund. Specifies that the Fund is composed of money appropriated by the Tennessee
General Assembly (TGA), and gifts, grants, and other donations received by DHS for the Fund, as
well as deposits allocated from taxes levied under privilege and excise taxes.
FISCAL IMPACT:
STATE GOVERNMENT
EXPENDITURES Guaranteed Basic Income Fund
FY25-26 & Subsequent Years $16,912,935,000
OTHER FISCAL IMPACT
In order to administer the Guaranteed Basic Income Act or the Protection Against Automation Act, DHS
will need to contract with a third-party entity; however, due to guidelines not yet being established,
the scope and cost of that contract cannot be reasonably estimated.
Assumptions:
• Under the proposed legislation, an eligible resident is an individual who is at least 18 years
of age, who possesses a valid Tennessee driver license or photo identification license, and
who is currently a full-time resident of Tennessee and as well as in the immediately
preceding year.
• According to the United State Census Bureau, as of July 1, 2024 there are approximately
5,637,645 Tennesseans who are 18 years of age or older.
• For the purpose of this analysis, it is assumed all persons have lived in Tennessee for a
minimum of one year.
• Therefore, the proposed legislation will result in an increase in state expenditures of
$16,912,935,000 (5,637,645 x $3,000) in FY25-26 and subsequent years if all eligible
SB 1355 - HB 1396 2
individuals receive the grant. It is assumed the full-year impact will be incurred in FY25-26,
despite the January 1, 2026 effective date.
• In order to administer the proposed legislation, DHS will need to contract with a third-
party entity. However, since DHS has not yet established guidelines for the Fund and
grants, the terms and cost of that contract cannot yet be estimated.
• The proposed legislation does not specify which privilege and excise taxes may be levied,
nor what percentage of the taxes.
• Tennessee Code Annotated § 9-4-603(g) states that the Treasurer may deduct from pro rata
earnings from pooled investment funds a reasonable charge for administering the funds.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director