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Tennessee General Assembly· SB 1654Signed by Governor.

Auditing - As enacted, clarifies that, as of November 1, 2026, a non-governmental entity receiving in-kind funding from the state or a political subdivision of the state pursuant to the federal Public Health Service Act , the official text

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                             PUBLIC CHAPTER NO. 790

                                                    SENATE BILL NO. 1654

                                                     By Gardenhire, Crowe

                                           Substituted for: House Bill No. 1648

                                              By Helton-Haynes, Hill, Cepicky

AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 4; Title 9; Title 47, Chapter 18; Title
          56 and Title 63, relative to funding oversight.

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

          SECTION 1. Tennessee Code Annotated, Title 56, Chapter 7, Part 31, is amended by adding
the following as a new section:

                    A non-governmental entity receiving in-kind funding from the state or a political
          subdivision of the state pursuant to § 317 or § 318 of the Public Health Service Act (42
          U.S.C. §§ 247b and 247c), is eligible to qualify as a 3408 entity, as defined in§ 56-7-3119,
          only if the entity is also a recipient of one (1) or more state or federal grant awards that are
          subject to audit, reporting, and oversight requirements under state and federal law. The
          comptroller of the treasury and any state agency or political subdivision providing in-kind
          funding are authorized to verify eligibility and enforce compliance with this section.

          SECTION 2. This act takes effect November 1, 2026, the public welfare requiring it.
         SENATE BILL NO. 1654

PASSED:  Apri I 6, 2026

                                             RANDY

                                   SPEAKER OF TH

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                            CAMERONSEXTON,SPEAKER

                            HOUSE OF REPRESENTATIVES

z APPROVED this  day of  A(x-.1 \         2026

         ~~
                      BILL LEE, GOVERNOR
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