SB2261 • 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

Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor: Lowe, Lafferty
Last action: 2026-03-03
Official status: Failed in Senate Commerce and Labor Committee (no second)
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 on a publicly accessible website.

What This Bill Does

Defines 'employee', 'nonprofit organization', 'person', and 'salary'.
Requires nonprofits receiving state or federal grants to compile, maintain, and publish employee salary information.
Specifies that this information must be updated at least every six months.
Allows individuals to sue nonprofits if they believe the nonprofit has not followed these rules.

Who It Names or Affects

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

Terms To Know

Employee: A person who performs services for an employer and receives wages.
Nonprofit Organization: An entity that is tax-exempt under U.S. law, specifically under 501(c)(3) of the Internal Revenue Code.

Limits and Unknowns

The bill did not pass in the Senate Commerce and Labor Committee.
It only applies to nonprofits receiving state or federal grants, not all nonprofits.

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
Passed on Second Consideration, refer to Senate Commerce and Labor Committee
2026-02-05 Tennessee General Assembly
Assigned to s/c Business & Utilities Subcommittee
2026-02-05 Tennessee General Assembly
P2C, ref. to Commerce Committee
2026-02-04 Tennessee General Assembly
Intro., P1C.
2026-02-02 Tennessee General Assembly
Introduced, Passed on First Consideration
2026-02-02 Tennessee General Assembly
Filed for introduction
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

HOUSE BILL 2181
By Lafferty

SENATE BILL 2261
By Lowe
SB2261
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.