Amends TCA Title 3, Chapter 7 and Title 9, Chapter 4.

This bill revises how fiscal notes are calculated for bills modifying criminal offenses.<br /> <br /> PRESENT LAW<br /> <br /> Under present law:<br /> <br /> (1) For any law enacted after July 1, 1986, that results in a net increase in periods of imprisonment in state facilities, there must be appropriated from recurring revenues the estimated operating cost of such law; and<br /> <br /> (2) Prior to submission of the budget for fiscal years beginning after 1986-1987, estimates of appropriations made under item (1) above may be adjusted to determine the amount of appropriations of recurring revenues to be repeated for the ensuing fiscal year. If no adjustment is made, then the amount of appropriations previously made must be repeated.<br /> <br /> Present law provides that the amount of appropriations made under items (1) and (2) above must be equal to the amounts reflected in fiscal notes prepared by the staff of the fiscal review committee. For purposes of item (1) above, the cost must be the operating cost, in current dollars, of the highest of the next 10 fiscal years commencing after December 4, 1985.<br /> <br /> Present law further provides that appropriations made under the above-described present law provisions must be placed in a reserve to be used only for the following purposes: cancellation of bonds authorized but not yet sold; and capital outlay for the department of correction.<br /> <br /> Any law enacted without the funding required by this section shall be null and void unless such funding is appropriated in the general appropriations act.<br /> <br /> THIS BILL<br /> <br /> This bill:<br /> <br /> (A) Deletes the present law provision described above in (2);<br /> <br /> (B) Adds that for any law enacted after January 1, 2022, that results in a net decrease in periods of imprisonment in state facilities, the appropriations to the reserve (as described above in PRESENT LAW) must be decreased by the estimated amounts annually that account for the estimated decrease in operating cost of the law. This bill provides that the amount of appropriations made under this provision must be equal to the amounts reflected in fiscal notes prepared by the staff of the fiscal review committee. For purposes of this bill, cost increases or savings must be estimated based on the operating cost, in current dollars, of the highest of the next 10 fiscal years commencing after July 1, 2021, amortized over a 10-year period beginning on the effective date of the law; and<br /> <br /> (3) Clarifies that the amount of appropriations made under present law as described above in (1) and under this bill as described above in (B) must be equal to the amounts reflected in fiscal notes prepared by the staff of the fiscal review committee. For purposes of this provision, cost increases or savings must be estimated based on the operating cost, in current dollars, of the highest of the next 10 fiscal years commencing after July 1, 2021, amortized over a 10-year period beginning on the effective date of the law.<br /> <br /> ON APRIL 5, 2021, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 841, AS AMENDED.<br /> <br /> AMENDMENT #1 changes this bill and present law requiring that appropriations made to fund a law that results in a net increase in periods of imprisonment in state facilities must be used only for operating costs for the department of correction, instead of being placed in a reserve to be used only for the cancellation of bonds authorized but not yet sold and capital outlay for the department of correction.<br /> <br /> This amendment adds that any annual decrease in appropriations required pursuant to this bill (based on a law enacted after January 1, 2022, that results in a net decrease in periods of imprisonment in state facilities) must be made in the general appropriations act as a line item reduction for the next 10 years commencing after the effective date of the law and in an amount equal to the annual estimated decrease in operating costs reflected in the fiscal note.<br /> <br /> This amendment also adds a requirement that cost decreases must be estimated based on actual estimated operating costs to be reduced.<br /> <br /> This amendment specifies that this bill applies to appropriations made on or after January 1, 2022.<br />