Tennessee House Bill HB2181

Tennessee 2025-2026 Regular Session

• Introduced: 2/2/26
• Refer: 2/5/26

Caption

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

Summary

HB2181 requires certain nonprofit organizations operating in Tennessee to publicly disclose employee salary information. The bill applies to nonprofit entities that are tax-exempt under section 501(c)(3) of the Internal Revenue Code and that receive state or federal grants. Covered nonprofits would have to compile, maintain, and publish each employee’s salary in a publicly available location, and if the organization has a website, the information must be posted there in an accessible place. The bill also requires the salary information to be updated at least every six months. It creates a private right of action for any person who believes a nonprofit has violated the disclosure requirement, allowing a court to grant declaratory or injunctive relief and to award reasonable court costs and attorney fees to the prevailing party. The act would take effect July 1, 2026.

Impact

This bill would add a new transparency requirement to Tennessee law governing nonprofit organizations by creating a new part in Title 48. It would affect 501(c)(3) nonprofits that operate in the state and receive state or federal grants, requiring them to disclose compensation data for employees and maintain ongoing updates. It also exposes covered nonprofits to litigation risk and potential fee-shifting if they fail to comply, which could increase administrative burdens and legal exposure for grant-funded charitable organizations.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text alone, the measure appears aimed at transparency and accountability in nonprofit spending, especially for organizations receiving public funds. The absence of recorded legislative history makes the overall sentiment difficult to gauge from the provided context.

Contention

The main point of contention likely concerns the balance between public transparency and nonprofit privacy or administrative burden. Supporters would likely favor disclosure as a way to ensure accountability for organizations receiving taxpayer-supported grants, while opponents may argue that mandatory publication of individual salaries could discourage qualified employees, create privacy concerns, and impose compliance and litigation costs on charitable organizations. The private enforcement provision and attorney-fee award may also be controversial because it could encourage lawsuits over compliance disputes.