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HB0140 • 2026

Auditing

AN ACT to amend Tennessee Code Annotated, Title 13, relative to audits of human resource agencies.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Stinnett, Hatcher
Last action
2025-05-02
Official status
Comp. became Pub. Ch. 155
Effective date
Not listed

Plain English Breakdown

The official source material does not provide information on whether HRAs can still hire independent accountants without prior approval from the comptroller, or if there are unchanged requirements for annual reports and financial statements.

Changes to Auditing Rules for Human Resource Agencies

This bill removes the requirement that human resource agencies in Tennessee need approval from the comptroller of the treasury before paying independent accountants who have audited their financial reports.

What This Bill Does

  • Removes a rule requiring audits and working papers prepared by independent public accountants for human resource agency annual reports to be reviewed and approved by the comptroller of the treasury before payment can happen.

Who It Names or Affects

  • Human Resource Agencies (HRAs) in Tennessee
  • Independent public accountants hired by HRAs to perform audits

Terms To Know

Human Resource Agency (HRA)
A type of agency created by local government officials for economic development purposes.
Comptroller of the Treasury
An official in Tennessee who oversees financial matters and audits for state agencies.

Limits and Unknowns

  • The bill does not specify what happens if independent accountants do not follow proper guidelines.
  • It is unclear how this change will affect the overall accuracy of annual reports and financial statements from HRAs.

Bill History

  1. 2025-05-02 Tennessee General Assembly

    Comp. became Pub. Ch. 155

  2. 2025-05-02 Tennessee General Assembly

    Effective date(s) 04/11/2025

  3. 2025-05-02 Tennessee General Assembly

    Pub. Ch. 155

  4. 2025-04-11 Tennessee General Assembly

    Signed by Governor.

  5. 2025-04-03 Tennessee General Assembly

    Transmitted to Governor for action.

  6. 2025-04-02 Tennessee General Assembly

    Signed by H. Speaker

  7. 2025-04-02 Tennessee General Assembly

    Signed by Senate Speaker

  8. 2025-04-01 Tennessee General Assembly

    Enrolled and ready for signatures

  9. 2025-03-31 Tennessee General Assembly

    Comp. SB subst.

  10. 2025-03-31 Tennessee General Assembly

    Passed H., Ayes 93, Nays 0, PNV 2

  11. 2025-03-31 Tennessee General Assembly

    Subst. for comp. HB.

  12. 2025-03-27 Tennessee General Assembly

    H. Placed on Consent Calendar for 3/31/2025

  13. 2025-03-26 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 3/27/2025

  14. 2025-03-26 Tennessee General Assembly

    Rec. for pass; ref to Calendar & Rules Committee

  15. 2025-03-24 Tennessee General Assembly

    Rcvd. from S., held on H. desk.

  16. 2025-03-20 Tennessee General Assembly

    Engrossed; ready for transmission to House

  17. 2025-03-20 Tennessee General Assembly

    Passed Senate, Ayes 30, Nays 0

  18. 2025-03-19 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 3/26/2025

  19. 2025-03-19 Tennessee General Assembly

    Action def. in State & Local Government Committee to 3/26/2025

  20. 2025-03-18 Tennessee General Assembly

    Placed on Senate Consent Calendar 2 for 3/20/2025

  21. 2025-03-12 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 3/19/2025

  22. 2025-03-12 Tennessee General Assembly

    Action def. in State & Local Government Committee to 3/19/2025

  23. 2025-03-05 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 3/12/2025

  24. 2025-03-05 Tennessee General Assembly

    Action def. in State & Local Government Committee to 3/12/2025

  25. 2025-03-04 Tennessee General Assembly

    Recommended for passage, refer to Senate Calendar Committee

  26. 2025-02-26 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 3/5/2025

  27. 2025-02-26 Tennessee General Assembly

    Rec. for pass by s/c ref. to State & Local Government Committee

  28. 2025-02-25 Tennessee General Assembly

    Placed on Senate State and Local Government Committee calendar for 3/4/2025

  29. 2025-02-19 Tennessee General Assembly

    Placed on s/c cal Cities & Counties Subcommittee for 2/26/2025

  30. 2025-02-12 Tennessee General Assembly

    Assigned to s/c Cities & Counties Subcommittee

  31. 2025-02-12 Tennessee General Assembly

    Ref. to State & Local Government Committee

  32. 2025-01-16 Tennessee General Assembly

    Ref. to caption bill, held on desk - pending amdt.

  33. 2025-01-16 Tennessee General Assembly

    P2C held on desk pending appointment of Standing Committees

  34. 2025-01-15 Tennessee General Assembly

    Intro., P1C.

  35. 2025-01-15 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate State and Local Government Committee

  36. 2025-01-14 Tennessee General Assembly

    Filed for introduction

  37. 2025-01-14 Tennessee General Assembly

    Introduced, Passed on First Consideration

  38. 2025-01-13 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Present law authorizes the
chief elected public officials of various counties and cities of the economic development districts established under
the Development District Act of 1965
to create
a human resource agency
("HRA")
.

When a HRA is
so
created, a governing board
must be
established for the HRA.

The membership of the governing board consists of

(
i
)
e
ach county mayor within the HRA's district; (
ii
)
t
hree or more municipal mayors within th
e HRA's district who serve on a rotating basis as determined by the bylaws of the HRA; (
iii
)
a
senate member who is selected by the senators whose districts are wholly or partially in the area served by the HRA; (
iv
)
a
representative member who is selected
by the representatives whose districts are wholly or partially in the HRA
; and (v) any additional person that the HRA may appoint as
required by state or federal guidelines.

Present law requires each
governing board
to
prepare an annual report of its ac
tivities, including financial statements, through June 30 of each year, and submit a copy of such report to the governor, the general assembly, and the commissioner of finance and administration.
Such
annual report, including financial statements, and all
books of account and financial records are subject to annual audit by the comptroller of the treasury.
However, a
human resource agenc
y
, with the prior approval of the comptroller of the treasury,
may
engage licensed independent public accountants to per
form the audits.

Present law requires a
udits and working papers prepared by
such
independent public accountants
to
be reviewed and approved by the comptroller of the treasury prior to payment.
However, this bill removes that requirement.

Current Bill Text

Read the full stored bill text 
SENATE BILL 116
By Hatcher

HOUSE BILL 140
By Stinnett

HB0140
000683
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 13,
relative to audits of human resource agencies.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 13-26-106(b), is amended by
deleting subdivision (5).
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.