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Committee advances bill to centralize oversight of federal aid to Tennessee agencies
Summary
The Finance, Ways, and Means Committee voted 27-0 to send House Bill 1092 to Calendar and Rules after approving two amendments. The bill establishes a standardized process for state agencies to notify the legislature and, in some cases, obtain approval before accepting significant federal funds and requires annual reporting of federal aid.
Chairman Hulsey said the committee approved House Bill 1092 and described it as a measure to centralize oversight of federal aid to state departments.
"The goal of this bill is to ensure that all federal aid received by Tennessee the state of Tennessee departments is managed and allocated in an efficient manner," Chairman Hulsey said. He said the bill "ensures that when Tennessee state departments want to accept federal money, they follow a clear and consistent process." He added that the bill "mandates annual federal aid reports" and assigns reporting responsibilities to the Budget Analysis Office.
The bill, as amended, requires agencies to notify the legislature and in some circumstances to obtain legislative approval before accepting large federal awards. Chairman Hulsey said the measure also aims to make sure federal funds are used according to state intent rather than solely to federal program guidance, and that it "improves transparency and strengthen[s] oversight and help[s] protect Tennessee's financial independence."
Leader Camper asked for clarification about the bill's exceptions, saying he was trying to recall "what those circumstances might be." Chairman Hulsey and other supporters identified multiple exemptions in the measure, including reimbursement accounts or compensation funds, funds of the Tennessee Transportation Financing Authority, federal aid received because of a declared state of emergency, recurring federal aid awarded annually but distributed in installments, and specific programs such as WIC and Medicaid. Chairman Hulsey also said CoverKids (referred to in the meeting as "cover kids") is exempt.
Members discussed thresholds and language in the bill. Chairman Hulsey explained that the amendments add a floor that exempts awards of $100,000 or less from requiring a personal appearance before the committee, and that the package preserved a larger-dollar threshold referenced elsewhere in the bill (the transcript references a $25,000,000 threshold in background discussion). He said the committee removed an outdated 02/2012 date reference from draft language.
Supporters said the measure creates a standing report cycle: the Budget Analysis Office will produce an annual federal aid report each Feb. 1. Proponents framed the bill as a way to prevent the state from making long-term commitments based on one-time federal funding.
The committee adopted two amendments (drafting codes 007969 and 008049) before voting on final passage. The clerk reported a vote of 27 ayes, 0 nos; House Bill 1092 "moves on to calendar and rules." No mover or seconder names were recorded on the audio transcript provided.
The bill will proceed to the House Calendar and Rules Committee for further consideration.
