Shown verbatim: the complete text as captured from the official PDF posted by the Tennessee General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the chaptered version. The official bill page.
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~tate of \l]";ennessee
PUBLIC CHAPTER NO. 512
HOUSE BILL NO. 1092
By Mr. Speaker Sexton and Representatives Hulsey, Williams, Gary Hicks, Howell,
Scarbrough, Fritts
Substituted for: Senate Bill No. 1366
By Senators Watson, Gardenhire
AN ACT relative to government applications for federal financial assistance.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 3-7-110, is amended by deleting
subsection (b).
SECTION 2. Tennessee Code Annotated, Section 3-14-201 (b), is amended by deleting
the language "3-7-110" and substituting instead the language "4-4-116".
SECTION 3. Tennessee Code Annotated, Section 3-14-201(b), is amended by deleting
the last sentence and substituting instead:
The directors of the staff of the fiscal review committee and of the office of legislative
budget analysis shall jointly make such reports as are appropriate to the joint committee
on ways and means.
SECTION 4. Tennessee Code Annotated, Section 4-3-203, is amended by designating
the existing language as subsection (a) and adding the following new subsection (b):
All federal aid as defined by § 4-4-116(a) received or used by the department
must be acquired and used subject to the requirements of§ 4-4-116.
SECTION 5. Tennessee Code Annotated, Section 4-3-403, is amended by designating
the existing language as subsection (a) and adding the following new subsection (b):
All federal aid as defined by § 4-4-116(a) received or used by the department
must be acquired and used subject to the requirements of§ 4-4-116.
SECTION 6. Tennessee Code Annotated, Section 4-3-504, is amended by designating
the existing language as subsection (a) and adding the following new subsection (b):
All federal aid as defined by § 4-4-116(a) received or used by the department
must be acquired and used subject to the requirements of§ 4-4-116.
SECTION 7. Tennessee Code Annotated, Section 4-3-515, is amended by deleting the
section and substituting instead:
Any federal funds expended pursuant to §§ 4-3-510-4-3-514 must only be
obligated or expended in accordance with the program, terms, conditions, and
agreement under which such funds were received, unless specific authority to modify
such program, terms, conditions, or agreement has been received in writing from the
granting authority and the requirements of§ 4-4-116 have been satisfied.
SECTION 8. Tennessee Code Annotated, Section 4-3-606, is amended by designating
the existing language as subsection (a) and adding the following new subsection (b):
All federal aid as defined by § 4-4-116(a) received or used by the department
must be acquired and used subject to the requirements of§ 4-4-116.
HB1092
SECTION 9. Tennessee Code Annotated, Section 4-3-703, is amended by designating
the existing language as subsection (a) and adding the following new subsection (b):
All federal aid as defined by § 4-4-116(a) received or used by the department
must be acquired and used subject to the requirements of§ 4-4-116.
SECTION 10. Tennessee Code Annotated, Section 4-3-708(b), is amended by deleting
the language "The commissioner of economic and community development" and substituting
instead the language "Subject to the requirements of§ 4-4-116, the commissioner of economic
and community development".
SECTION 11. Tennessee Code Annotated, Section 4-3-1020, is amended by deleting
the section and substituting:
Any federal funds expended pursuant to§§ 4-3-1017-4-3-1019, must only be
obligated or expended in accordance with the program, terms, conditions, and
agreement under which such funds were received, unless specific authority to modify
such program, terms, conditions, or agreement has been received in writing from the
granting authority and the requirements of§ 4-4-116 have been satisfied.
SECTION 12. Tennessee Code Annotated, Title 4, Chapter 3, Part 10, is amended by
adding the following new section:
All federal aid as defined by § 4-4-116(a) received or used by the department
must be acquired and used subject to the requirements of§ 4-4-116.
SECTION 13. Tennessee Code Annotated, Section 4-3-1105, is amended by
designating the existing language as subsection (a) and adding the following new subsection
(b):
All federal aid as defined by § 4-4-116(a) received or used by the department
must be acquired and used subject to the requirements of§ 4-4-116.
SECTION 14. Tennessee Code Annotated, Section 4-3-1203, is amended by
designating the existing language as subsection (a) and adding the following new subsection
(b):
All federal aid as defined by § 4-4-116(a) received or used by the department
must be acquired and used subject to the requirements of§ 4-4-116.
SECTION 15. Tennessee Code Annotated, Title 4, Chapter 3, Part 13, is amended by
adding the following new section:
All federal aid as defined by § 4-4-116(a) received or used by the department
must be acquired and used subject to the requirements of§ 4-4-116.
SECTION 16. Tennessee Code Annotated, Title 4, Chapter 3, Part 14, is amended by
adding the following new section:
All federal aid as defined by § 4-4-116(a) received or used by the department
must be acquired and used subject to the requirements of§ 4-4-116.
SECTION 17. Tennessee Code Annotated, Section 4-3-1603, is amended by adding the
following new subsection:
All federal aid as defined by § 4-4-116(a) received or used by the department
must be acquired and used subject to the requirements of§ 4-4-116.
SECTION 18. Tennessee Code Annotated, Section 4-3-1703, is amended by
designating the existing language as subsection (a) and adding the following new subsection
(b):
All federal aid as defined by § 4-4-116(a) received or used by the department
must be acquired and used subject to the requirements of§ 4-4-116.
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SECTION 19. Tennessee Code Annotated, Section 4-3-1803, is amended by
designating the existing language as subsection (a) and adding the following new subsection
(b):
All federal aid as defined by § 4-4-116(a) received or used by the department
must be acquired and used subject to the requirements of§ 4-4-116.
SECTION 20. Tennessee Code Annotated, Section 4-3-1903(b), is amended by
designating the existing language as subdivision (b)(1) and adding the following new subdivision
(b)(2):
All federal aid as defined by § 4-4-116(a) received or used by the department
must be acquired and used subject to the requirements of§ 4-4-116.
SECTION 21. Tennessee Code Annotated, Section 4-3-2009, is amended by
designating the existing language as subsection (a) and adding the following new subsection
(b):
All federal aid as defined by § 4-4-116(a) received or used by the department
must be acquired and used subject to the requirements of§ 4-4-116.
SECTION 22. Tennessee Code Annotated, Section 4-3-2206, is amended by adding the
following new subsection:
All federal aid as defined by § 4-4-116(a) received or used by the department
must be acquired and used subject to the requirements of§ 4-4-116.
SECTION 23. Tennessee Code Annotated, Section 4-3-2303, is amended by
designating the existing language as subsection (a) and adding the following new subsection
(b):
All federal aid as defined by § 4-4-116(a) received or used by the department
must be acquired and used subject to the requirements of§ 4-4-116.
SECTION 24. Tennessee Code Annotated, Section 4-3-2503, is amended by
designating the existing language as subsection (a) and adding the following new subsection
(b):
All federal aid as defined by § 4-4-116(a) received or used by the department
must be acquired and used subject to the requirements of§ 4-4-116.
SECTION 25. Tennessee Code Annotated, Section 4-3-2704, is amended by
designating the existing language as subsection (a) and adding the following new subsection
(b):
All federal aid as defined by § 4-4-116(a) received or used by the department
shall be acquired and used subject to the requirements of§ 4-4-116.
SECTION 26. Tennessee Code Annotated, Section 4-4-113(a), is amended by deleting
the subsection and substituting instead the following:
(1) Any department of state government may accept and use federal aid, as
defined in § 4-4-116, from any agency or instrumentality of the federal government for
purposes of carrying on programs in which such department may be authorized to
engage if:
(A) The acceptance of federal aid is with the express approval of the
governor; and
(B) The requirements of§ 4-4-116 are satisfied prior to the acceptance of
federal aid.
(2) The department, acting through its commissioner, is authorized to enter into
any and all requisite agreements and contracts with a federal agency or instrumentality
for the purpose of accepting and using federal aid if the requirements of subdivision
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(a)(1) are satisfied and the agreement or contract does not involve the expenditure of
funds beyond those available to the department by appropriation, gift, or otherwise.
SECTION 27. Tennessee Code Annotated, Section 4-4-113(b), is amended by deleting
"federal financial assistance" wherever it may appear and substituting instead "federal aid".
SECTION 28. Tennessee Code Annotated, Section 4-4-113(b), is amended by deleting
the language "and the commissioner of finance and administration" and substituting the
language "the commissioner of finance and administration, and the joint committee on ways and
means".
SECTION 29. Tennessee Code Annotated, Section 4-4-116, is amended by deleting the
section and substituting:
(a) For purposes of this section:
(1) "Federal aid" means financial assistance from the United States
government, whether by grant, loan, cooperative agreement, or other means,
offered or available to this state through executive order of the United States
president or any act of the United States congress;
(2) "Joint committee on ways and means" means the appropriations
subcommittee of the senate finance, ways and means and the subcommittee of
the house of representatives with jurisdiction over appropriations;
(3) "Local government" means any county, municipality, city, or other
political subdivision of this state, including a utility or school district; and
(4) "Recipient" means any executive department or agency or other body
of the executive branch of state government.
(b) Notwithstanding another law to the contrary and except as otherwise provided
in subsection (d), the governor, acting on behalf of the state, is authorized to apply for, or
accept, federal aid through any recipient only if the governor, acting through any
recipient, complies with this section.
(c)
(1) 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):
(A) The recipient must notify the joint committee on ways and
means of the application or acceptance; and
(B) 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.
(2) 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):
(A) The recipient must notify the joint committee on ways and
means of such proposed acceptance. The committee may hold a hearing
to review and approve or disapprove the proposed acceptance of the
federal aid. Once the committee approves the proposed acceptance of
the federal aid, then the recipient may accept the federal aid. If the
committee fails to disapprove the proposed acceptance within thirty (30)
days of receiving notice from the recipient, then the recipient may accept
the federal aid; and
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HB1092
(B) 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.
(3)
(A) If the joint committee on ways and means determines that a
recipient failed to satisfy the requirements of subdivision (c)(1 )(A), then
the committee may require that the recipient comply with the
requirements of subdivision (c)(2)(A) for federal aid in an amount that is
less than twenty-five million dollars ($25,000,000) for one (1) year,
beginning on the date that the committee makes the determination of
noncompliance.
(B) Upon written request by a recipient and recommendation from
the staff of the office of legislative budget analysis and the fiscal review
committee, the joint committee on ways and means may exempt any
recipient from the requirements of subdivisions (c)(2)(A) and (c)(3).
(4) If the joint committee on ways and means requests, then the recipient
shall provide the following information to the committee when providing notice of
acceptance or seeking approval of acceptance pursuant to this subsection (c):
(A) A summary description of the proposed federal aid to be
received that includes:
(i) The purpose of the federal aid;
(ii) The requirements or responsibilities placed on the state
in order to receive the federal aid;
(iii) The amount of federal aid, or the estimated amount if
the amount is unknown, to be received and the amount of state
matching funds, if any, to be required in connection with obtaining
the federal aid; and
(iv) The period of time to be covered by the federal aid;
(B) An analysis of the short-term and long-term impact the federal
aid would have on state budgetary and fiscal matters if the federal aid
were approved and received;
(C) The aggregate amount of federal aid appropriated or approved
by the general assembly to the recipient for the preceding fiscal year; and
(D) The percentage of the executive department, bureau, agency,
or other instrumentality of the state's total budget for the preceding fiscal
year that constitutes federal aid that the recipient received for the
preceding fiscal year.
(d)
(1) Except as otherwise provided in subdivision (d)(2), the following are
exempt from the requirements of subdivisions (c)(1 )(A) and (c)(2)(A), and for
which the governor, acting on behalf of the state, is authorized to accept federal
aid through any recipient:
(A) Any reimbursement account or compensation fund, including
§§ 40-24-107 and 37-1-161;
(B) Tennessee transportation financing authority funds;
(C) Any federal aid received as a result of a declared state of
emergency pursuant to § 58-2-107;
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(D) Any recurring federal aid that is awarded on an annual basis
but is distributed in multiple installments; provided, that the annual award
complied with the requirements of subdivisions (c)(1 )(A) and (c)(2)(A);
(E) Any federal program that the state is required to administer
under federal law, including medicaid, and any federal aid received to
administer the TennCare and CoverKids or successor programs;
(F) Any federal entitlement program that provides benefits to any
individual meeting determined eligibility criteria;
(G) The women, infants, and children program administered by
the United States department of agriculture; and
(H) The Elementary and Secondary Education Act (20 U.S.C. §
6301 et seq.), the Individuals with Disabilities Education Act (20 U.S.C. §
1471 et seq.), the United States department of agriculture national school
lunch program, and the Carl D. Perkins Career and Technical Education
Act of 2006 (20 U.S.C. § 2301 et seq.).
(2) Each recipient shall report to the joint ways and means committee
when the recipient applies for federal financial aid in the form of a grant in an
amount that is more than one hundred thousand dollars ($100,000).
(e) If the requirements of subsection (c) are satisfied, the governor or the
governor's designee is authorized to enter into contracts, in accordance with all
applicable laws and procedures regarding the contracts and perform all things necessary
in the governor's discretion to secure to this state and citizens of this state the benefits of
the federal aid.
(f) The review and approval requirements of this section are in addition to any
other requirement under state or federal law for the receipt of any federal aid.
(g) In addition to the requirements of this section, on or before February 1 of
each year, each recipient shall submit a written report to the joint committee on ways
and means, summarizing the amount of funds allocated from federal block grants or
other federal funds in the preceding fiscal year. The report must also summarize the
purposes for which the funds were expended in such fiscal year, the amount of such
funds that was unexpended, and any amount that was returned to the federal agency
that supplied the original federal block grant or funds.
(h)
(1) In addition to appropriate staff of the senate and the house of
representatives, the office of legislative budget analysis, the fiscal review
committee staff, and the office of legal services shall jointly staff and provide
administrative support to the joint committee on ways and means.
(2) The staffs of the fiscal review committee and the office of legislative
budget analysis shall also be responsible for monitoring and managing
information relative to all federal grants. The monitoring and information
management responsibility pursuant to this subdivision (i)(2) must be
administered by one (1) staff person in the office of legislative budget analysis
and one (1) staff person from the staff of the fiscal review committee. The staff of
the fiscal review committee and the office of legislative budget analysis shall
jointly monitor, analyze, and manage information concerning federal grants
programs, including, but not limited to, social services grant funds, in order to
inform members of the general assembly concerning such grants. The directors
of the staff of the fiscal review committee and of the office of legislative budget
analysis shall jointly make such reports as are appropriate to the speakers of the
house of representatives and of the senate and to the joint committee on ways
and means.
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SECTION 30. Tennessee Code Annotated, Section 9-4-5406, is amended by deleting
the section.
SECTION 31. Tennessee Code Annotated, Section 11-9-108, is amended by
designating the existing language as subsection (a) and adding the following new subsection
(b):
All federal aid as defined by § 4-4-116(a) received or used by the department
must be acquired and used subject to the requirements of§ 4-4-116.
SECTION 32. Tennessee Code Annotated, Section 37-3-406, is amended by deleting
the section and substituting instead:
The director is authorized pursuant to the requirements of § 4-4-116 to make
application for and to receive federal funds and funds from any public or private source.
SECTION 33. Tennessee Code Annotated, Section 37-5-106(a)(6), is amended by
deleting the subdivision and substituting instead:
(6) Seek, apply for, receive, and administer federal funds pursuant to the
requirements of § 4-4-116 as well as any other grants or funds that can be used for
children being served by the department of children's services;
SECTION 34. Tennessee Code Annotated, Section 41-8-115, is amended by deleting
the section and substituting instead:
The commissioner is authorized and empowered pursuant to the requirements of
§ 4-4-116 to seek and receive funds from the federal government that will augment the
funds appropriated by the state to implement this chapter.
SECTION 35. Tennessee Code Annotated, Section 49-3-201 (a), is amended by deleting
the period and substituting instead "consistent with the requirements of§ 4-4-116.".
SECTION 36. Tennessee Code Annotated, Section 49-3-201 (c), is amended by deleting
the period and substituting instead "and consistent with the requirements of§ 4-4-116.".
SECTION 37. Tennessee Code Annotated, Section 50-3-917, is amended by deleting
the language "subject to the direction and designation of the governor under § 4-4-116" and
substituting the language "subject to the requirements of§ 4-4-116".
SECTION 38. Tennessee Code Annotated, Section 52-1-104(b)(5), is amended by
deleting the last sentence and substituting the following:
Subject to the requirements of § 4-4-116, the department is authorized to accept funds
from the federal government and private sources and to administer such funds to
achieve its purposes under this title;
SECTION 39. Tennessee Code Annotated, Section 65-15-106(e), is amended by
deleting the subsection and substituting instead:
The department is authorized to apply for federal funds that may be available,
subject to the requirements of § 4-4-116, and to conduct any new entrant audits and
review and compliance inspections that may be required by regulations promulgated by
the United States department of transportation.
SECTION 40. Tennessee Code Annotated, Section 71-1-105, is amended by adding the
following new subsection:
All federal aid as defined by § 4-4-116(a) received or used by the department
shall be acquired and used subject to the requirements of§ 4-4-116.
. SECTION 4_1. Thi~ act takes effect July 1, 2025, the public welfare requiring it, and
applies to federal aid applied for on or after July 1, 2025, and if no application occurred before
July 1, 2025, applies to federal aid accepted on or after July 1, 2026.
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HOUSE BILL NO. 1092
PASSED: April 22, 2025
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CAMERONSEXTON,SPEAKER
HOUSE OF REPRESENTATIVES
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SPEAKER OF THE SENATE
yv\_°"1" APPROVED this ~, !,t day of 2025
BILL LEE, GOVERNOREvery fact on this page links to its source, starting with the official bill record.