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Treasury seeks $1.2M nonrecurring to shore up DUI interlock fund after expanded device claims increased costs

Tennessee Senate Finance, Ways and Means Committee · January 13, 2026
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Summary

Treasury asked the committee to include a $1.2 million nonrecurring appropriation in its request to cover an anticipated shortfall in the EMIF interlock fund; the fund’s revenue (approx. $300k–$400k/year) has not kept pace with claims after statutory expansion of covered devices.

Treasury officials told the Senate Finance, Ways and Means Committee that the EMIF interlock fund (which supports DUI interlock devices and related monitoring) has experienced cost pressure since statutes expanded covered devices and services, creating a recurring structural gap between revenue and payments.

Treasurer David Lillard said the EMIF previously maintained a positive balance but additions to statute—such as including transdermal patches and other devices—produced more claims and higher annual payments. He reported the EMIF receives roughly $300,000–$400,000 a year in revenue while historically paying more than $1,000,000 annually, prompting repeated nonrecurring state appropriations in recent years.

Treasury included a $1,200,000 nonrecurring appropriation request in its budget submission to cover the anticipated shortfall in the coming fiscal year. Accounting staff said the department received $2,000,000 nonrecurring for FY25 and carried forward $1.3M into FY26; some of that carryforward will be used to help close the gap this year.

Why it matters: the EMIF supports court‑ordered monitoring and related public‑safety devices. The fund’s structural mismatch between statutory revenue streams and current claims may require periodic legislative action or statutory changes to stabilize it.

Committee members discussed prior adjustments to the law that reduced costs in some instances but noted that the fund still required attention. Treasury said the appropriation is intended to fill the immediate gap while longer‑term solutions are considered.