Fiscal Summary
NOT SIGNIFICANT
Bill Summary
ON APRIL 21, 2023, THE SENATE ADOPTED AMENDMENTS #1 AND #2 AND PASSED SENATE BILL 855, AS AMENDED.
AMENDMENT #1 rewrites this bill to revise present law provisions relative to the electronic monitoring indigency fund (the "fund"), as described below.
COMPOSITION OF THE FUND
This amendment provides that the fund is composed of the following accounts:
(1) The ignition interlock device account, which must pay for eligible costs for a functioning ignition interlock device that has been ordered by a court in accordance with applicable law; and
(2) The alternative device account, which must pay for eligible costs for an alternative device that has been ordered by a court in accordance with applicable law.
ADMINISTRATION OF THE FUND
This amendment requires the fund to be administered as follows:
(1) The money in the two accounts may be commingled for investment purposes but must be accounted for separately with separate accounting for each account's principal and income;
(2) The ignition interlock device account must contain state-appropriated monies and may contain a portion of the fees assessed in accordance with this amendment, and as provided in other applicable law. The ignition interlock device account must be funded in whole or in part from state-appropriated monies;
(3) The alternative device account must contain state-appropriated monies;
(4) Moneys in the fund must not revert to the general fund of the state, but must remain available to be used as provided for in this amendment;
(5) Interest accruing on fund deposits and investments must be credited to the fund, must not revert to the general fund, and must be carried forward into each subsequent fiscal year;
(6) Moneys in the fund must be invested by the state treasurer in accordance with law; and
(7) All proceeds collected for ignition interlock fees and must be transmitted to the state treasurer for deposit in the fund.
ALLOCATION OF THE FUND
This amendment provides that the fund must be composed of ignition interlock fees of $40, assessed for violations of driving under the influence and boating under the influence, which must be allocated as follows:
(1) $30.50 to the fund for the purpose of paying eligible costs, and all costs and expenses incurred by the department of treasury for the administration of the fund;
(2) $4.50 to the Tennessee Hospital Association for the sole purposes of making grants to hospitals that have been designated as critical access hospitals under the Medicare rural flexibility program for the purposes of purchasing medical equipment, enhancing high technology efforts, and expanding healthcare services in underserved areas;
(3) $1.25 to the department of mental health and substance abuse services to be placed in the alcohol and drug addiction treatment fund;
(4) $1.25 to the department of safety, Tennessee highway safety office, for the sole purpose of funding grant awards to local law enforcement agencies for purposes of obtaining and maintaining equipment and personnel needed in the enforcement of alcohol-related traffic offenses;
(5) $1.25 for the department of safety to be used to defray the expenses of administering provisions relative to alcohol and drug related offenses; and
(6) $1.25 to the department of finance and administration, office of criminal justice programs, for the sole purpose of funding grant awards to certain halfway houses whose primary focus is to assist drug and alcohol offenders.
ANNUAL ANALYSIS / SURPLUS IN THE FUND
This amendment requires, annually, the state treasurer, in consultation with the commissioner of finance and administration, to conduct an analysis to determine the solvency of the fund. This amendment authorizes the state treasurer to declare a surplus if there is a balance in excess of the amount necessary to maintain the solvency of the fund, and requires the state treasurer to report the amount of any surplus to the commissioner of finance and administration for inclusion in the annual budget document.
This amendment requires a surplus in the fund to be allocated as follows:
(1) 50 percent of such surplus must be transmitted to the department of mental health and substance abuse services and placed in the alcohol and drug addiction treatment fund; and
(2) 50 percent of such surplus must be used by the department of safety, Tennessee highway safety office, to provide grants to local law enforcement agencies for purposes of obtaining and maintaining equipment or personnel needed in the enforcement of alcohol-related traffic offenses.
ELIGIBLE COSTS / INDIGENT PERSONS
Pursuant to this amendment:
(1) The state treasurer is required to manage and administer the payment of eligible costs for ignition interlock devices. A local government is not required to demonstrate its participation in the fund for the payment of eligible costs from the fund for ignition interlock devices;
(2) Subject to annual appropriations, there is established a grant program to assist local governments with up to 50 percent of the payment of eligible costs for a transdermal monitoring device, other alternative alcohol or drug monitoring device, or global positioning monitoring device ("alternative devices"). The department of finance and administration, office of criminal justice programs, must develop and administer the grant program;
(3) The eligible costs incurred in order to comply with a court order to use a functioning ignition interlock device or an alternative device must be paid by the person ordered to use the device, unless the court finds such person to be indigent. If a court determines that a person is indigent, then the court must order the person to pay a minimum of $30 per month. The remainder of the costs must be paid from the fund. Whenever a person ordered to install a device asserts an inability to pay for the device, the court is required to conduct a full and complete hearing to determine the person's indigency. All statements made by the person must be by written affidavit of indigency created by the administrative office of the courts and sworn to before the court. If the person intentionally misrepresents, falsifies, or withholds any information in the affidavit of indigency, then the person commits perjury; and
(D) When making a finding as to indigency under this amendment, the court must consider certain criteria described in this amendment;
(4) The department of treasury is required to administer, process, and pay the claims submitted by ignition interlock providers for an indigent person's eligible costs. Each local government participating in the alternative device account must administer, process, and pay its own claims submitted by alternative device providers for an indigent person's eligible costs;
(5) Ignition interlock providers are required to submit claims and invoices to the state treasurer for reimbursement from the ignition interlock device account for an indigent person with eligible costs, and providers of alternative devices are required to submit claims and invoices for reimbursement to the respective local government for reimbursement from the alternative device account for an indigent person with eligible costs. Both types of claims must be submitted no later than 90 calendar days after the device has been ordered by the court, and must be accompanied by certain documents listed in this amendment;
(6) Once a claim is approved for eligibility, the provider is required to submit certain information listed in this amendment;
(7) Once the invoice for payment has been approved, a provider must be paid no more than $200 per month for the eligible costs for a device;
(8) The provider is required to ensure that the court orders submitted to either the state treasurer or the local government do not contain handwritten changes and are submitted on a uniform court order prescribed by the administrative office of the courts;
(9) If a provider filing a claim or invoice for reimbursement from the fund knowingly makes a false, fictitious, or fraudulent statement or representation, or knowingly submits false, fictitious, or fraudulent documentation or information to the state treasurer or the local government for reimbursement, then the provider may be liable under the false claims act; and
(10) If a provider is overpaid from the fund for any reason, then either the state treasurer or the local government may exercise a right of set-off against any amount due to the provider from the fund.
INSUFFICIENT FUNDS TO PAY FOR ELIGIBLE COSTS
This amendment provides that if the state treasurer determines or anticipates that there are or will be insufficient funds to pay for eligible costs from the ignition interlock account, or the local government determines or anticipates that there are or will be insufficient funds to pay for eligible costs, then the state treasurer or the local government is authorized to:
(1) Stop accepting, determining eligibility for, or paying claims or invoices submitted by providers for a period of time determined by either the state treasurer or the local government;
(2) Begin accepting or paying claims or invoices submitted by providers on or after the date on which the state treasurer determines that there is a sufficient amount of money in the ignition interlock account or the local government determines there is a sufficient amount of money in the alternative device account;
(3) Notify providers and the administrative office of the courts of the anticipated date that provider claims and invoices will be accepted and paid from the respective accounts in the fund again; and
(4) Establish an order of priority for paying claims and invoices after the period of insolvency.
RULES / AUDITS / ANNUAL FUND REPORT
This amendment provides that:
(1) The state treasurer is authorized to promulgate rules relative to the investment of money in the fund and the administration, processing, and payment of ignition interlock provider claims and invoices;
(2) The commissioner of finance and administration is authorized to promulgate rules relative to the grant program;
(3) The state treasurer, in consultation with the department of finance and administration, is required to report annually to the general assembly on the activities of the fund for the preceding fiscal year. The first report is due no later than February 1, 2024, and by each February 1 thereafter; and
(4) The fund is subject to examination and audit by the comptroller.
AMENDMENT #2 rewrites this bill to revise present law provisions relative to the electronic monitoring indigency fund (the "fund"), as described below.
COMPOSITION OF THE FUND
This amendment provides that the fund is composed of the following accounts:
(1) The ignition interlock device account, which must pay for eligible costs for a functioning ignition interlock device that has been ordered by a court in accordance with applicable law; and
(2) The alternative device account, which must pay for eligible costs for an alternative device that has been ordered by a court in accordance with applicable law.
ADMINISTRATION OF THE FUND
This amendment requires the fund to be administered as follows:
(1) The money in the two accounts may be commingled for investment purposes but must be accounted for separately with separate accounting for each account's principal and income;
(2) The ignition interlock device account must contain state-appropriated monies and may contain a portion of the fees assessed in accordance with this amendment, and as provided in other applicable law. The ignition interlock device account must be funded in whole or in part from state-appropriated monies;
(3) The alternative device account must contain state-appropriated monies;
(4) Moneys in the fund must not revert to the general fund of the state, but must remain available to be used as provided for in this amendment;
(5) Interest accruing on fund deposits and investments must be credited to the fund, must not revert to the general fund, and must be carried forward into each subsequent fiscal year;
(6) Moneys in the fund must be invested by the state treasurer in accordance with law; and
(7) All proceeds collected for ignition interlock fees and must be transmitted to the state treasurer for deposit in the fund.
ALLOCATION OF THE FUND
This amendment provides that the fund must be composed of ignition interlock fees of $40, assessed for violations of driving under the influence and boating under the influence, which must be allocated as follows:
(1) $30.50 to the fund for the purpose of paying eligible costs, and all costs and expenses incurred by the department of treasury for the administration of the fund;
(2) $4.50 to the Tennessee Hospital Association for the sole purposes of making grants to hospitals that have been designated as critical access hospitals under the Medicare rural flexibility program for the purposes of purchasing medical equipment, enhancing high technology efforts, and expanding healthcare services in underserved areas;
(3) $1.25 to the department of mental health and substance abuse services to be placed in the alcohol and drug addiction treatment fund;
(4) $1.25 to the department of safety, Tennessee highway safety office, for the sole purpose of funding grant awards to local law enforcement agencies for purposes of obtaining and maintaining equipment and personnel needed in the enforcement of alcohol-related traffic offenses;
(5) $1.25 for the department of safety to be used to defray the expenses of administering provisions relative to alcohol and drug related offenses; and
(6) $1.25 to the department of finance and administration, office of criminal justice programs, for the sole purpose of funding grant awards to certain halfway houses whose primary focus is to assist drug and alcohol offenders.
ANNUAL ANALYSIS / SURPLUS IN THE FUND
This amendment requires, annually, the state treasurer, in consultation with the commissioner of finance and administration, to conduct an analysis to determine the solvency of the fund. This amendment authorizes the state treasurer to declare a surplus if there is a balance in excess of the amount necessary to maintain the solvency of the fund, and requires the state treasurer to report the amount of any surplus to the commissioner of finance and administration for inclusion in the annual budget document.
This amendment requires a surplus in the fund to be allocated as follows:
(1) 50 percent of such surplus must be transmitted to the department of mental health and substance abuse services and placed in the alcohol and drug addiction treatment fund; and
(2) 50 percent of such surplus must be used by the department of safety, Tennessee highway safety office, to provide grants to local law enforcement agencies for purposes of obtaining and maintaining equipment or personnel needed in the enforcement of alcohol-related traffic offenses.
ELIGIBLE COSTS / INDIGENT PERSONS
Pursuant to this amendment:
(1) The state treasurer is required to manage and administer the payment of eligible costs for ignition interlock devices. A local government is not required to demonstrate its participation in the fund for the payment of eligible costs from the fund for ignition interlock devices;
(2) Subject to annual appropriations, there is established a grant program to assist local governments with up to 50 percent of the payment of eligible costs for a transdermal monitoring device, other alternative alcohol or drug monitoring device, or global positioning monitoring device ("alternative devices"). The department of finance and administration, office of criminal justice programs, must develop and administer the grant program;
(3) The eligible costs incurred in order to comply with a court order to use a functioning ignition interlock device or an alternative device must be paid by the person ordered to use the device, unless the court finds such person to be indigent. If a court determines that a person is indigent, then the court must order the person to pay a minimum of $30 per month toward the eligible costs for a functioning interlock device or an alternative device. The remainder of the monthly eligible costs must be paid from the fund; however, the remaining monthly eligible costs must not exceed $170 per month. Whenever a person ordered to install a device asserts an inability to pay for the device, the court is required to conduct a full and complete hearing to determine the person's indigency. All statements made by the person must be by written affidavit of indigency created by the administrative office of the courts and sworn to before the court. If the person intentionally misrepresents, falsifies, or withholds any information in the affidavit of indigency, then the person commits perjury; and
(4) When making a finding as to indigency under this amendment, the court must consider certain factors described in the full text of this amendment, as well as other circumstances presented to the court that the court finds to be relevant to the issue of indigency;
(5) The department of treasury is required to administer, process, and pay the claims submitted by ignition interlock providers for an indigent person's eligible costs. Each local government participating in the alternative device account must administer, process, and pay its own claims submitted by alternative device providers for an indigent person's eligible costs;
(6) Ignition interlock providers are required to submit claims and invoices to the state treasurer for reimbursement from the ignition interlock device account for an indigent person with eligible costs, and providers of alternative devices are required to submit claims and invoices for reimbursement to the respective local government for reimbursement from the alternative device account for an indigent person with eligible costs. Both types of claims must be submitted no later than 90 calendar days after the device has been ordered by the court, and must be accompanied by certain documents listed in this amendment;
(7) Once a claim is approved for eligibility, the provider is required to submit certain documents, invoices, and information listed in this amendment;
(8) Once the invoice for payment has been approved, a provider must be paid no more than a total sum of $200 per month for the eligible costs for a device, with a minimum of $30 per month paid to the provider by the indigent and the remainder of the total monthly costs, which must not exceed $170 per month, paid to the provider from the fund;
(9) The above (8) does not prohibit a provider from accepting funds from other grants for which the provider may be eligible;
(10) A provider is prohibited from billing a defendant for any amount in excess of the amount the defendant is ordered by the court to pay;
(11) The provider is required to ensure that the court orders submitted to either the state treasurer or the local government do not contain handwritten changes and are submitted on a uniform court order prescribed by the administrative office of the courts;
(12) If a provider filing a claim or invoice for reimbursement from the fund knowingly makes a false, fictitious, or fraudulent statement or representation, or knowingly submits false, fictitious, or fraudulent documentation or information to the state treasurer or the local government for reimbursement, then the provider may be liable under the false claims act; and
(13) If a provider is overpaid from the fund for any reason, then either the state treasurer or the local government may exercise a right of set-off against any amount due to the provider from the fund.
INSUFFICIENT FUNDS TO PAY FOR ELIGIBLE COSTS
This amendment provides that if the state treasurer determines or anticipates that there are or will be insufficient funds to pay for eligible costs from the ignition interlock account, or the local government determines or anticipates that there are or will be insufficient funds to pay for eligible costs, then the state treasurer or the local government is authorized to:
(1) Stop accepting, determining eligibility for, or paying claims or invoices submitted by providers for a period of time determined by either the state treasurer or the local government;
(2) Begin accepting or paying claims or invoices submitted by providers on or after the date on which the state treasurer determines that there is a sufficient amount of money in the ignition interlock account or the local government determines there is a sufficient amount of money in the alternative device account;
(3) Notify providers and the administrative office of the courts of the anticipated date that provider claims and invoices will be accepted and paid from the respective accounts in the fund again; and
(4) Establish an order of priority for paying claims and invoices after the period of insolvency.
RULES / AUDITS / ANNUAL FUND REPORT
This amendment provides that:
(1) The state treasurer is authorized to promulgate rules relative to the investment of money in the fund and the administration, processing, and payment of ignition interlock provider claims and invoices;
(2) The commissioner of finance and administration is authorized to promulgate rules relative to the grant program;
(3) The state treasurer, in consultation with the department of finance and administration, is required to report annually to the general assembly on the activities of the fund for the preceding fiscal year. The first report is due no later than February 1, 2024, and by each February 1 thereafter; and
(4) The fund is subject to examination and audit by the comptroller.
DEFENDANT'S FAILURE TO PAY MONTHLY COSTS / TERMINATION OF MONITORING SERVICES
If a defendant fails to pay the defendant's portion of the monthly costs as required, then this amendment authorizes the provider to terminate monitoring services only after:
(1) The provider has notified the court of the defendant's failure to pay;
(2) The court has issued a warrant for the defendant's arrest;
(3) The defendant has been arrested on the warrant issued; and
(4) The court has issued an order allowing the provider to terminate monitoring services.
