Tennessee 2025-2026 Regular Session

Tennessee Senate Bill SB0840 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2		-	HOUSE BILL 966
3		-	By Hawk
	2	+	<BillNo> <Sponsor>
4	3
5	4		SENATE BILL 840
6	5		By Walley
7	6
8	7
9	8		SB0840
10	9		002154
11	10		- 1 -
12	11
13	12		AN ACT to amend Tennessee Code Annotated, Title 4,
14	13		Chapter 51; Title 8, Chapter 4; Title 9 and Title 49,
15	14		relative to the use of excess lottery funds pursuant
16	15		to Article XI, Section 5 of the Constitution of
17	16		Tennessee.
18	17
19	18		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
20	19		SECTION 1. Tennessee Code Annotated, Section 4-51-111, is amended by adding the
21	20		following language as a new subsection (g):
22	21		(g)
23	22		(1) There are created two (2) special accounts in the state treasury, with
24	23		the first to be known as the "K-12 lottery capital outlay special account," referred
25	24		to as the "lottery capital outlay account", and the second to be known as the
26	25		"early learning program account".
27	26		(2) Any funds remaining in the lottery for education account, including the
28	27		balances of the general shortfall reserve subaccount and the special reserve
29	28		subaccount created pursuant to subdivision (b)(4), at the end of each fiscal year
30	29		in excess of two hundred fifty million dollars ($250,000,000) are deemed excess
31	30		lottery funds and must be allocated and transferred to the lottery capital outlay
32	31		account and the early learning program account. Excess lottery funds must be
33	32		distributed equally between the two (2) special accounts.
34	33		(3)
35	34		(A) Moneys in the lottery capital outlay account must be used
36	35		exclusively for capital outlay projects for K-12 educational facilities
37	36		consistent with Article XI, § 5 of the Constitution of Tennessee and in
38	37
39	38
40	39		- 2 - 002154
41	40
42	41		accordance with § 8-4-120. Such moneys must supplement, not
43	42		supplant, non-lottery educational resources for capital outlay projects for
44	43		K-12 educational facilities.
45	44		(B) Moneys in the early learning program account must be used
46	45		exclusively for expenses needed to operate new or existing pre-
47	46		kindergarten (pre-K) programs consistent with Article XI, § 5 of the
48	47		Constitution of Tennessee and in accordance with § 8-4-120. Such
49	48		moneys must supplement, not supplant, non-lottery educational
50	49		resources for capital outlay projects for K-12 educational facilities.
51	50		(4) Any balance remaining unexpended at the end of a fiscal year in the
52	51		special accounts does not revert to the lottery for education account or the
53	52		general fund but must be carried forward into the subsequent fiscal year.
54	53		(5) Notwithstanding this section to the contrary, interest accruing on
55	54		investments and deposits of the special accounts must be credited to the
56	55		accounts, do not revert to the lottery for education account or the general fund,
57	56		and must be carried forward into the subsequent fiscal year.
58	57		(6) Moneys in the special accounts must be invested by the state
59	58		treasurer in accordance with § 9-4-603.
60	59		SECTION 2. Tennessee Code Annotated, Title 8, Chapter 4, Part 1, is amended by
61	60		adding the following language as a new section:
62	61		8-4-120.
63	62		(a)
64	63		(1) The comptroller shall develop and administer a grant program for
65	64		capital outlay projects for K-12 educational facilities using funds available in the
66	65		K-12 lottery capital outlay special account created pursuant to § 4-51-111(g).
67	66
68	67
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70	69
71	70		(2) The comptroller shall develop and administer a grant program for new
72	71		or existing pre-kindergarten (pre-K) programs using funds available in the early
73	72		learning program account created pursuant to § 4-51-111(g).
74	73		(b) The comptroller shall:
75	74		(1) Establish a uniform application form and application process for
76	75		grants awarded pursuant to this section; and
77	76		(2) Establish matching dollar requirements for grants awarded pursuant
78	77		to this section based on need.
79	78		(c)
80	79		(1) Grants must be awarded or credited annually to each local education
81	80		agency (LEA) in this state.
82	81		(2) Except as provided in subdivision (c)(3), each LEA shall be awarded
83	82		an amount equal to the sum of the annual allocation and transfer made to each
84	83		account pursuant to § 4-51-111(g)(2), if any, and accrued interest pursuant to §
85	84		4-51-111(g)(5), if any, less a reasonable amount pursuant to subsection (e),
86	85		times the ratio of the LEA's average daily membership to the state total average
87	86		daily membership. For the purposes of this subdivision, "average daily
88	87		membership" has the same meaning as defined in § 49-3-104.
89	88		(3) Individual LEA grants not awarded pursuant to subdivision (c)(2) in
90	89		any year must be credited and accumulated for the benefit of the individual LEA
91	90		and included in the LEA's grant availability in each subsequent year until
92	91		awarded; provided, that if grants are not available in a subsequent year pursuant
93	92		to subdivision (c)(2), an LEA may apply for the amount credited and accumulated
94	93		for the benefit of the LEA. Any unawarded amounts, plus any accrued interest,
95	94		must carry forward in the name of the individual LEA until awarded.
96	95
97	96
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99	98
100	99		(d) The comptroller is authorized to audit an LEA awarded a grant pursuant to
101	100		this section for compliance with this section and § 4-51-111(g).
102	101		(e) Costs incurred by the comptroller in administering a grant program created
103	102		under subdivision (a)(1) or (a)(2), must be funded from the K-12 lottery capital outlay
104	103		special account or the early learning program account, as applicable and as part of such
105	104		program.
106	105		SECTION 3. Tennessee Code Annotated, Section 49-4-901, is amended by deleting the
107	106		language "allocated first to early learning programs" and substituting instead the language
108	107		"allocated to early learning programs and capital outlay projects for K-12 educational facilities in
109	108		accordance with § 4-51-111(g)".
110	109		SECTION 4.
111	110		(a) The Comptroller of the Treasury is authorized to promulgate rules as the
112	111		Comptroller may deem necessary to effectuate the purposes of this act. All such rules
113	112		must be promulgated in accordance with the Uniform Administrative Procedures Act,
114	113		compiled in Tennessee Code Annotated, Title 4, Chapter 5.
115	114		(b) Notwithstanding Tennessee Code Annotated, Sections 4-5-208 and 4-5-209
116	115		or any other law to the contrary, the Comptroller of the Treasury is authorized to
117	116		promulgate emergency rules to implement this act.
118	117		SECTION 5. This act takes effect upon becoming a law, the public welfare requiring it.