---
type: "Bill"
title: "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 is eligible to qualify as a 340B entity, only if the entity is also a recipient of one or more state or federal grant awards that are subject to audit, reporting, and oversight requirements under state and federal law; authorizes the comptroller of the treasury and any state agency or political subdivision providing in-kind funding to verify eligibility and enforce compliance. - Amends TCA Title 8, Chapter 4; Title 9; Title 47, Chapter 18; Title 56 and Title 63."
description: "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 is eligible to qualify as a 340B entity, only if the entity is also a recipient of one or more state or federal grant awards that are subject to audit, reporting, and oversight requirements under state and federal law; authorizes the comptroller of the treasury and any state agency or political subdivision providing in-kind funding to verify eligibility and enforce compliance. - Amends TCA Title 8, Chapter 4; Title 9; Title 47, Chapter 18; Title 56 and Title 63."
jurisdiction: "us/states/tn"
legislature: "Tennessee General Assembly"
session: "114"
identifier: "SB 1654"
citation: "Tennessee SB 1654 (114)"
classification: ["bill"]
subjects: ["Auditing"]
status: "enacted"
primary_sponsors: ["Gardenhire"]
version_count: 3
action_count: 25
vote_count: 3
first_action: "2026-01-14"
last_action: "2026-04-27"
source: "openstates"
source_identifier: "ocd-bill/4e82db1d-8c78-4cfd-9416-2b3f0a503d03"
source_url: "https://wapp.capitol.tn.gov/apps/BillInfo/Default?BillNumber=SB1654&ga=114"
source_hash: "dbf528a187dc4bd88598a96358f82a497c18ab496d15fdac766f94ce21e14a32"
vintage: "2026-07-01"
source_snapshot: "https://data.openstates.org/daily/2026-07-01/public.pgdump"
retrieved_at: "2026-07-06"
confidence: "reported"
tags: ["legislation", "bill", "us-tn"]
---

# Tennessee SB 1654 (114) — 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 is eligible to qualify as a 340B entity, only if the entity is also a recipient of one or more state or federal grant awards that are subject to audit, reporting, and oversight requirements under state and federal law; authorizes the comptroller of the treasury and any state agency or political subdivision providing in-kind funding to verify eligibility and enforce compliance. - Amends TCA Title 8, Chapter 4; Title 9; Title 47, Chapter 18; Title 56 and Title 63.

## Version chain

The bill's text revisions, in order — the diff chain from filing to enrollment.

1. **Amendment HA0830** (committee substitute) — [source](https://capitol.tn.gov/Bills/114/Amend/HA0830.pdf)
2. **Amendment SA0748** (committee substitute) — [source](https://capitol.tn.gov/Bills/114/Amend/SA0748.pdf)
3. **Current Version** (committee substitute) — [source](https://capitol.tn.gov/Bills/114/Bill/SB1654.pdf)

## Votes

- FLOOR VOTE: as Amended Third Consideration 3/26/2026 Passed (1) — **31–0** (pass) · upper
- FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION 4/6/2026 Passed (1) — **5–0** (pass) · lower
- SENATE STATE & LOCAL GOVERNMENT COMMITTEE: Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 9, Nays 0 PNV 0 3/17/2026 Passed (2) — **9–0** (pass) · upper

## Sponsors

- Gardenhire — primary (person)

## Timeline

The legislative action history — every referral, reading, and vote.

- **2026-01-14** Filed for introduction `filing`
- **2026-01-15** Introduced, Passed on First Consideration `introduction`
- **2026-01-21** Passed on Second Consideration, refer to Senate State and Local Government Committee `referral-committee`
- **2026-02-11** Sponsor(s) Added. `sponsorship`
- **2026-02-24** Placed on Senate State and Local Government Committee calendar for 3/3/2026
- **2026-03-03** Placed on Senate State and Local Government Committee calendar for 3/10/2026
- **2026-03-03** Action deferred in Senate State and Local Government Committee to 3/10/2026
- **2026-03-10** Action deferred in Senate State and Local Government Committee to 3/17/2026
- **2026-03-11** Placed on Senate State and Local Government Committee calendar for 3/17/2026
- **2026-03-17** Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 9, Nays 0 PNV 0
- **2026-03-24** Placed on Senate Regular Calendar for 3/26/2026
- **2026-03-26** Engrossed; ready for transmission to House `receipt`
- **2026-03-26** Passed Senate as amended, Ayes 31, Nays 0 `passage`
- **2026-03-26** Senate adopted Amendment (Amendment 1 - SA0748)
- **2026-03-30** Rcvd. from S., held on H. desk.
- **2026-04-06** Passed H., Ayes 94, Nays 1, PNV 1 `passage`
- **2026-04-06** Am. withdrawn. (Amendment 1 - HA0830) `amendment-withdrawal`
- **2026-04-06** Subst. for comp. HB. `substitution`
- **2026-04-08** Enrolled and ready for signatures `enrolled`
- **2026-04-09** Signed by Senate Speaker `passage`
- **2026-04-14** Signed by H. Speaker `passage`
- **2026-04-15** Transmitted to Governor for action. `executive-receipt`
- **2026-04-23** Signed by Governor. `executive-signature`
- **2026-04-27** Effective date(s) 11/01/2026
- **2026-04-27** Pub. Ch. 790

## Source

OpenStates / OpenCivicData bulk snapshot [2026-07-01](https://data.openstates.org/daily/2026-07-01/public.pgdump); origin `ocd-bill/4e82db1d-8c78-4cfd-9416-2b3f0a503d03`. Confidence: reported (aggregated from official Tennessee legislature records).