Bill > HB1648

This bill, effective November 1, 2026, amends Tennessee law to establish new requirements for non-governmental entities that receive in-kind funding from the state or local governments, specifically when that funding relates to certain public health programs (as defined by sections of the Public Health Service Act, 42 U.S.C. §§ 247b and 247c). To be considered a "340B entity," which refers to a program that allows certain healthcare providers to purchase outpatient drugs at significantly reduced prices, these entities must also be recipients of state or federal grant awards that are subject to audit and reporting. This means that organizations receiving this type of in-kind support will now need to demonstrate they are also undergoing regular financial scrutiny through other grant programs. The Comptroller of the Treasury, along with any state agency or local government providing the in-kind funding, will have the authority to check if these entities meet these new eligibility criteria and to ensure they are following the rules.