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 a...

Summary

The bill says a non‑governmental organization that gets in‑kind funding from Tennessee or its political subdivisions under the federal Public Health Service Act can only be treated as a 340B entity if it also receives at least one state or federal grant that is subject to audit and reporting rules. It gives the comptroller of the treasury and any agency providing the in‑kind funding the power to verify eligibility and enforce compliance. The change aims to tighten oversight of entities that benefit from the 340B drug pricing program.

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