House Bill 2318 amends Tennessee Code Annotated, Section 4-4-116, which governs the acceptance of federal aid by state agencies. The bill clarifies the definition of "recipient" to include various executive branches and agencies, and modifies the requirements for notifying the joint committee on ways and means regarding federal aid applications and acceptances. Notably, it establishes that prior to accepting federal aid, regardless of whether an application is required, the recipient must notify the committee, which may hold a hearing to review the proposed acceptance. If the committee does not disapprove the acceptance within thirty days, the recipient may proceed with the acceptance.

Additionally, the bill revises the exemptions from the requirements for federal aid, ensuring that all recipients must comply with notification and review processes for federal aid amounts, regardless of the amount. It also introduces new provisions for federal aid awarded on an annual basis, allowing for streamlined compliance for subsequent installments. The effective date for these changes is set for July 1, 2026.

Statutes affected:
Introduced: 4-4-116(a)(4), 4-4-116, 4-4-116(b), 4-4-116(c)(1), 4-4-116(c)(2), 4-4-116(c)(3)(A), 4-4-116(c)(3)(B), 4-4-116(c)(4), 4-4-116(c), 4-4-116(d)(1), 4-4-116(d)(1)(D), 4-4-116(d), 4-4-116(g)