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SB 1778

Tennessee Emergency Management Agency (TEMA) - As enacted, exempts disaster grants administered by TEMA from statutory requirements related to procurement, except that the state retains the right to inspect places of business and audit books and records for compliance. - Amends TCA Section 58-2-109.

114th Regular Session (2025-2026) Introduced by Rusty Crowe

SB 1778 exempts TEMA disaster grants from Tennessee procurement rules to accelerate emergency aid distribution while retaining audit and inspection authority.

Pub. Ch. 591
#tennesseeemergencymanagementagency(tema)
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Bill Summary · SB 1778

Legislative bill overview

SB 1778 exempts disaster grants administered by Tennessee's Emergency Management Agency (TEMA) from standard state procurement rules, while preserving the state's ability to inspect businesses and audit financial records. The bill modifies TCA Section 58-2-109 to streamline the grant distribution process during emergencies.

Why is this important

During natural disasters or emergencies, rapid funding to affected areas and businesses can be critical for recovery and response. Standard procurement requirements—which involve competitive bidding, documentation, and lengthy approval processes—can delay aid delivery when speed is essential. This bill prioritizes getting resources out quickly, though it trades some procedural oversight for efficiency.

Potential points of contention

  • Accountability concerns: Exempting disaster grants from procurement rules reduces competitive bidding requirements, raising questions about whether funds reach the most qualified vendors or if favoritism could influence grant distribution
  • Audit sufficiency: While audits and inspections are retained, critics may argue that post-hoc auditing is weaker than upfront procurement controls at preventing misuse or fraud
  • Definition ambiguity: The bill doesn't clearly define what qualifies as a "disaster grant" or under what emergency conditions the exemption applies, potentially creating gray areas about when the exemption triggers

Compiled from official sources — confirm details with the bill’s official record.

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