General Assembly - As enacted, revises and clarifies procedures of the joint committee on ways and means, including authorizing the committee to issue notice that a hearing will not be held or to hold a hearing to review, the official text

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State f/Jenneasee

                             PUBLIC CHAPTER NO. 801

                                                    SENATE BILL NO. 2158

                                                       By Watson, Stevens

                                           Substituted for: House Bill No. 2318

                                                            By Gillespie

AN ACT to amend Tennessee Code Annotated, Section 4-4-116 and Chapter 512 of the Public Acts
          of 2025, relative to the joint committee on ways and means.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. Tennessee Code Annotated, Section 4-4-116(a)(4), is amended by deleting the
subdivision and substituting instead the following:

                    "Recipient" means the administrative office of the courts or any executive department
          or agency or other body of the executive branch of state government, including the office of
          the comptroller of the treasury and the departments of state and the treasury.

          SECTION 2. Tennessee Code Annotated, Section 4-4-116(b), is amended by deleting the
language "and except as otherwise provided in subsection (d)".

          SECTION 3. Tennessee Code Annotated, Section 4-4-116(c)(1), is amended by deleting the
following language:

                    Except as otherwise provided in subdivision (c)(3), prior to the submission of any
          application for federal aid or, if there is no application required, prior to the acceptance of
          federal aid in an amount that is less than twenty-five million dollars ($25,000,000):

and substituting instead:

                    Except as otherwise provided in subdivision (c)(3), prior to the submission of any
          application for federal aid in an amount that is less than twenty-five million dollars
          ($25,000,000) and prior to the acceptance of federal aid in such amount, regardless of
          whether an application is required:

          SECTION 4. Tennessee Code Annotated, Section 4-4-116(c)(2), is amended by deleting the
following language:

                    Prior to the submission of any application for federal aid or, if there is no application
          required, prior to the acceptance of federal aid in an amount that is equal to or exceeds
          twenty-five million dollars ($25.,000,000):

and substituting instead:

                    Prior to the submission of any application for federal aid in an amount that is equal to
          or exceeds twenty-five million dollars ($25,000,000) or, if there is no application required,
          prior to the acceptance of federal aid in such amount:

          SECTION 5. Tennessee Code Annotated, Section 4-4-116(c)(2), is amended by deleting
subdivisions (A) and (8) and substituting instead the following:

                    (A) The recipient must notify the joint committee on ways and means of the
          application and such proposed acceptance;
SB 2158

          (B) •The committee may hold a hearing to review the proposed acceptance of the
federal aid or may issue notice that a hearing will not be held. If a hearing is held, then the
committee must vote to approve or not approve the proposed acceptance of the federal aid.
If the committee approves the proposed acceptance of the federal aid, then the recipient may
accept the federal aid. If the committee does not hold a hearing or otherwise fails to
disapprove the proposed acceptance within thirty (30) days of receiving notice from the
recipient, then the recipient may accept the federal aid; provided, that, upon agreement of
the chairs of the committee, as evidenced by written or electronic notification to the directors
of the office of legislative budget analysis and fiscal review committee, the committee may
extend the thirty-day period up to an additional thirty (30) days if notice is provided to the
recipient and upon a determination that the extension would not adversely impact
acceptance of the federal aid; and

          (C) If the federal aid would be in the form of a loan or other indebtedness requiring
repayment by the state, the application or acceptance of such federal aid must be submitted
for review and approval by the funding board.

          SECTION 6. Tennessee Code Annotated, Section 4-4-116(c)(3)(A), is amended by deleting
the language "the requirements of subdivision (c)(2)(A) for federal aid in an amount that is less than
twenty-five million dollars ($25,000,000)" and substituting instead the language "the requirements of
subdivisions (c)(2)(A) and (8) regardless of the amount of federal aid".

          SECTION 7. Tennessee Code Annotated, Section 4-4-116(c)(3)(B), is amended by deleting
the language "may exempt any recipient from the requirements of subdivisions (c)(2)(A) and (c)(3)"
and ·substituting instead the language "may exempt any recipient or proposed acceptance of federal
aid from the requirements of subdivisions (c)(2)(A) and (B) or subdivision (c)(3)".

          SECTION 8. Tennessee Code Annotated, Section 4-4-116(c)(4), is amended by deleting the
language "providing notice of acceptance" and substituting instead the language "providing notice".

          SECTION 9. Tennessee Code Annotated, Section 4-4-116(c), is amended by adding the
following as a new subdivision:

          (5) Notwithstanding subdivision (c)(1 ), upon agreement of the chairs of the
committee, as evidenced by written or electronic notification to the directors of the office of
legislative budget analysis and the fiscal review committee, the committee may hold a
hearing to review the application or acceptance of federal aid reported to the committee
pursuant to subdivision (c)(1)(A).

          SECTION 10. Tennessee Code Annotated, Section 4-4-116(d)(1), is amended by deleting
the language "Except as otherwise provided in subdi.vision (d)(2), the following are exempt from the
requirements of subdivisions (c)(1 )(A) and (c)(2)(A)" and substituting instead the language "The
following are exempt from the requirements of subdivisions (c)(1)(A) and (c)(2)(A) and (B)".

          SECTION 11. Tennessee Code Annotated, Section 4-4-116(d)(1)(D), is amended by deleting
the subdivision.

          SECTION 12. Tennessee Code' Annotated, Section 4-4-116(d), is amended by deleting
subdivision (2) and substituting instead the following:

         (2) Except as provided in subdivision (d)(1 ):

                   (A) A recipient of federal aid .that is awarded on an annual basis and
         distributed in multiple installments throughout the year must comply with subdivision
         (c)(1 )(A) or subdivisions (c)(2)(A) and (8), as applicable; provided, that notice and any
         review and approval by the committee is only required prior to the application and
         acceptance of the first installment forlhat year; and

                 . (8) A recipient of federal' aid that is awarded, allocated; or disbursed to the
         state on an annual basis as part of a multi-year grant or program must comply with
         subdivision (c)(1 )(A) or subdivisions (c)(2){A) and (B), annually.

          SECTION 13. Tennessee Code Annotated, Section 4-4-116(d)(1), is amended by adding the
following as a new subdivision (C) and redesignating the existing subdivisions accordingly:

         Federal formula grant program funds for transportation, including, but not limited to,

funds awarded pursuant to the federal aid highway program;  •

         SECTION 14. Tennessee Cod~ Annotated, Section 4-4-116(9), is amended by deleting the
language "February 1" and substituting instead the language "February 15".

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SB 2158
          SECTION 15. This act takes effect July 1, 2026, the public welfare requiring it.

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         SENATE BILL NO. 2158

PASSED:  April 6, 2026

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                               •

                        CAMERON'"SEXTON,SPEAKER

                        HOUSE OF REPRESENTATIVES

:J6rd I APPROVED this                      2026
         day of l \ x [

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                       BILL LEE, GOVERNOR