The Finance, Ways and Means Committee voted 27-0 to advance House Bill 1092 after a discussion about requiring state departments to follow a uniform process when accepting federal aid.

The bill, sponsored and described by Chairman Hulsey, would require departments to notify the oversight committee about federal aid between $100,000 and $25 million and to appear in person before the committee for awards above $25 million. "If it's up to a hundred thousand dollars, it is not included in this bill. Between a hundred thousand and 25,000,000 it requires a notification to the oversight committee, and over 25,000,000 requires a personal appearance before the committee," Chairman Hulsey said. The measure also mandates an annual federal-aid report from the Budget Analysis Office each Feb. 1.

The nut graf: supporters said the bill aims to improve transparency and protect the state's budget authority by keeping lawmakers informed of one-time federal dollars that could create recurring obligations.

Committee discussion focused on the bill's exceptions and practical administration. Leader Camper asked about "under certain circumstances" referenced in Hulsey's summary; Hulsey replied that several categories are exempt, including reimbursement accounts or compensation funds, Tennessee Transportation Financing Authority funds, federal aid tied to declared state emergencies, recurring federal aid awarded annually but distributed in multiple installments, WIC and other child nutrition programs, and Medicaid. "These are more of the isolated requests for federal aid," Hulsey said, adding the bill is intended to let the legislature see "where this money's coming from, how it's earmarked, where it's gonna be spent." He also said the measure "asserts state fiscal sovereignty."

Representative Williams praised the bill's role in managing one-time federal revenues. "This would be a clearing house for federal revenues that come here as one-time monies that seem to yoke state dollars unexpectedly," Williams said, adding the change would help avoid making long-term commitments with nonrecurring funds.

There was brief clarification that the bill treats loans and indebtedness differently; Hulsey said a separate process would apply to those transactions. The committee approved two amendments before the final vote; both amendments were adopted without recorded opposition and the final motion to move the bill to calendar and rules passed 27-0.

The bill will next be considered by the calendar and rules committee.