House Bill 1778, also known as Senate Bill 2135, amends Tennessee Code Annotated, Title 67, Chapter 6, to address the sales tax on non-prepared and prepared food. The bill urges the Department of Revenue to conduct a study by December 31, 2026, focusing on the revenue generated from the sales tax imposed on retail sales of non-prepared food items, such as fresh, frozen, or canned fruits and vegetables, as well as prepared food.

Following the completion of the study, the Department of Revenue is required to submit a report within ninety days to key legislative figures, including the chairs of the finance committees in both the Senate and House of Representatives, as well as the office of legislative budget analysis. The report should detail the revenue amounts and include any findings or recommendations based on the study. The act is set to take effect upon becoming law, emphasizing the importance of public welfare.