HB2181 • 2026

Corporations, Not for Profit

AN ACT to amend Tennessee Code Annotated, Title 4; Title 10, Chapter 7; Title 35; Title 48 and Title 50, relative to nonprofit organizations.

Labor Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: Lafferty, Lowe
Last action: 2026-02-05
Official status: Assigned to s/c Business & Utilities Subcommittee
Effective date: Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Nonprofit Organizations Salary Disclosure

This bill requires Tennessee nonprofit organizations that receive state or federal grants to compile and publish their employees' salaries in a publicly accessible location.

What This Bill Does

Defines 'employee', 'nonprofit organization', 'person', and 'salary'.
Requires nonprofits receiving state or federal grants to compile, maintain, and publish employee salaries in a publicly available location.
Specifies that if the nonprofit has a website, this information must be posted there.
Allows people to sue nonprofits for not following these rules and win court costs and attorney fees if they succeed.

Who It Names or Affects

Nonprofit organizations receiving state or federal grants in Tennessee
Employees of those nonprofits

Terms To Know

Employee: A person who performs services for an employer for wages that are subject to withholding requirements under U.S. tax law.
Nonprofit Organization: An entity that is tax-exempt under the United States Internal Revenue Code § 501(c)(3).

Limits and Unknowns

The bill only applies to nonprofits receiving state or federal grants.
It is unclear how strictly the requirement will be enforced without specific penalties outlined in the text.

Bill History

2026-03-03 Tennessee General Assembly
Failed in Senate Commerce and Labor Committee (no second)
2026-02-24 Tennessee General Assembly
Placed on Senate Commerce and Labor Committee calendar for 3/3/2026
2026-02-05 Tennessee General Assembly
Assigned to s/c Business & Utilities Subcommittee
2026-02-05 Tennessee General Assembly
P2C, ref. to Commerce Committee
2026-02-05 Tennessee General Assembly
Passed on Second Consideration, refer to Senate Commerce and Labor Committee
2026-02-04 Tennessee General Assembly
Intro., P1C.
2026-02-02 Tennessee General Assembly
Filed for introduction
2026-02-02 Tennessee General Assembly
Introduced, Passed on First Consideration
2026-02-02 Tennessee General Assembly
Filed for introduction

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

Read the full stored bill text

SENATE BILL 2261
By Lowe

HOUSE BILL 2181
By Lafferty
HB2181
011347
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 4;
Title 10, Chapter 7; Title 35; Title 48 and Title 50,
relative to nonprofit organizations.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 48, Chapter 101, is amended by adding
the following as a new part:
48-101-401.
As used in this part:
(1) "Employee" means a person who performs services for an employer
for wages that are subject to withholding requirements under 26 U.S.C. § 3402;
(2) "Nonprofit organization" means a nonprofit entity that is tax exempt
under United States Internal Revenue Code § 501(c)(3) (26 U.S.C. § 501(c)(3));
(3) "Person" means an individual or entity; and
(4) "Salary" means a fixed, regular payment, typically paid on a monthly
or biweekly basis, often expressed as an annual sum, made by a nonprofit
organization to an employee of the organization.
48-101-402.
(a) Notwithstanding another law to the contrary, a nonprofit organization that
operates in this state and receives state or federal grants shall compile, maintain, and
publish in a publicly available location the salary of each employee of the nonprofit
organization. If the nonprofit organization has a publicly accessible website, the
information required under this subsection (a) must be published on the website in a
publicly accessible location.

- 2 - 011347

(b) A nonprofit organization subject to the requirements of subsection (a) shall
update the information no less than once every six (6) months.
48-101-403.
A person that believes that a nonprofit organization has violated § 47-101-402
may bring a cause of action in a court of competent jurisdiction. A court that finds that
the nonprofit organization violated § 47-101-402 may order declaratory or injunctive
relief, and shall award reasonable court costs and attorney fees to the prevailing party.
SECTION 2. This act takes effect July 1, 2026, the public welfare requiring it.