Senate Bill 2261, also known as House Bill 2181, amends various sections of the Tennessee Code Annotated to establish new requirements for nonprofit organizations that receive state or federal grants. The bill introduces a new part under Title 48, Chapter 101, which defines key terms such as "employee," "nonprofit organization," "person," and "salary." It mandates that these organizations compile, maintain, and publicly publish the salaries of all employees in a location that is accessible to the public. If the nonprofit has a website, this information must be made available there and updated at least every six months.

Additionally, the bill provides a mechanism for individuals to take legal action if they believe a nonprofit organization has failed to comply with the salary disclosure requirements. Courts are empowered to grant declaratory or injunctive relief and are required to award reasonable court costs and attorney fees to the prevailing party in such cases. The provisions of this act are set to take effect on July 1, 2026.