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Bill

SB 2039

District Attorneys - As introduced, eliminates the fraud and economic crimes fees and assessments in criminal prosecutions for counties that have enacted a $12.50 court cost to be used for supplemental funding for the district attorney general's office; requires existing funds in fraud and economic crimes prosecution fund to be remitted back to the county government of original assessment and collection. - Amends TCA Title 40, Chapter 3.

114th Regular Session (2025-2026)

In counties that add a $12.50 fund, fraud and economic crime fees are halted, funds are held by the DAG until parity, then revert to county governments for public safety use.

Recommended for passage, refer to Senate Calendar Committee
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Bill Summary · SB 2039

Summary of SB 2039 / HB 2491 (Tennessee) – District Attorneys and Fraud & Economic Crimes Fees

This bill, introduced in the 114th Tennessee General Assembly, relates to the collection and use of court costs and fees dedicated to district attorney operations, specifically fraud and economic crime (ECF) funds and the new $12.50 fund.

Main purpose and intent

  • Remove the enforcement of existing fraud and economic crimes fees and assessments in counties that adopt a new $12.50 court cost. The $12.50 is intended to be used for supplemental funding for the district attorney general’s (DAG) office within that judicial district.
  • Rebalance and ultimately revert the balance of ECF funds to the county governments that originally collected the fees once the $12.50 Fund's balance equals or exceeds the ECF balance.
  • Preserve the ability for ECF funds already collected to be managed by the district attorney general until the rebalancing threshold is met.

Key provisions and changes

  • New statutory section (added to Tenn. Code Ann. Title 40, Chapter 3, Part 2):
    • When a county enacts the $12.50 Fund as authorized by existing law, the fees and assessments established for fraud and economic crimes in that county are not enforceable thereafter within that county.
    • Any existing EC F funds in the possession of a DAG must be held by the DAG until the balance of the $12.50 Fund equals or exceeds the balance of the EC F funds.
    • Once the $12.50 Fund balance meets or surpasses the EC F balance, the EC F funds in the DAG’s account must revert to the county government that originally assessed and collected them.
  • Financial mechanics:
    • The $12.50 cost is charged in misdemeanor and felony cost bills and remitted to the county government, or to the District Attorneys General Conference (DAGC) for counties in a multi-county district, for supplemental funding for the DAG’s office.
    • Unencumbered or unexpended funds from the $12.50 Fund carry forward and are not reverted to the General Fund; they remain for the intended purpose.
    • All EC F costs collected by counties must be used to support public safety services as determined by the DAG for that district.
  • Current status context (as of late 2025):
    • Fifteen judicial districts had authorized collection of the $12.50 fee.
    • The $12.50 Fund had a combined balance of about $163,648 across those districts, with no expenditures reported to date.
    • The ECF statewide balance as of mid-2025 was approximately $3.27 million; individual county balances vary.

Who or what would be affected

  • Counties that adopt the $12.50 court cost for DAG supplemental funding.
  • District Attorneys General offices within those counties or multi-county districts.
  • Funds and accounts:
    • Fraud and Economic Crimes Prosecution Fund (ECF)
    • The new or ongoing $12.50 Fund
  • County governments and county treasurers, which would receive remittances and manage reverted ECF balances when thresholds are met.

Procedural and timeline aspects

  • Effective date: The act becomes law upon approval (immediate effect upon becoming law).
  • Interaction with existing law:
    • The bill provides that it operates notwithstanding other laws to the contrary for counties that enact the $12.50 Fund.
    • It references and amends the framework established by Tenn. Code Ann. 40-3-106 and Public Chapter 369 of 2025 regarding the $12.50 fee and its use.
  • Legislative status:
    • As of April 2026, SB 2039 / HB 2491 has progressed through various committee stages and hearings, with actions including referrals to Senate Finance, Ways, and Means and Senate Judiciary, and considerations for passage.

Fiscal and revenue considerations

  • The fiscal impact on state and local revenues is not determinable with certainty due to variables such as:
    • The timing and extent of county permissive actions to adopt the $12.50 Fund.
    • Balances of the EC F funds in each county.
    • How quickly the $12.50 Fund balances reach parity with EC F balances.
  • The fiscal note notes that existing EC F funds could be remitted back to counties only after the $12.50 Fund balance meets or exceeds the EC F balance.

Bottom line

SB 2039 / HB 2491 would remove enforcement of fraud and economic crime fees in counties that adopt a $12.50 court cost for DAG supplemental funding, hold and then revert EC F funds to counties once the $12.50 Fund balance matches or exceeds EC F, and direct that EC F expenditures be used for public safety in consultation with the DAG. The overall effect is to shift funding for district attorney offices in participating counties from EC F to the new $12.50 Fund, with a defined transfer mechanism back to counties when parity is reached.

Compiled from official sources — confirm details with the bill’s official record.

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