Tennessee 2025-2026 Regular Session

Tennessee Senate Bill SB1019 Compare Versions

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2-HOUSE BILL 1163
3- By Stevens
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54 SENATE BILL 1019
65 By White
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98 SB1019
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1312 AN ACT to amend Chapter __ of the Public Acts of 2025
1413 (1st Ex. Sess. – SB 6001 / HB 6004); and
1514 Tennessee Code Annotated, Title 49, Chapter 13
1615 and Title 49, Chapter 3, relative to education
1716 funding for public charter schools.
1817
1918 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
2019 SECTION 1. Tennessee Code Annotated, Section 49-3-103(d)(3), is amended by
2120 adding the language "or public charter school" after the language "Explain how an LEA".
2221 SECTION 2. Tennessee Code Annotated, Section 49-3-105, is amended by deleting
2322 subsection (d) and substituting instead the following:
2423 (d)
2524 (1) The funding that a student generates pursuant to this section must be
2625 administered and allocated by the department to the LEA in which the student is
2726 a member for the duration of the student's membership in the LEA, except that:
2827 (A) The funding a student generates pursuant to subdivision
2928 (c)(3) must not be allocated to the LEA, but must be maintained by the
3029 department; and
3130 (B) The state share of the funding a public charter school student
3231 generates for an LEA pursuant to this section must not be allocated to the
3332 LEA, but must be allocated directly to the public charter school.
3433 (2) A student's membership in an LEA begins on the first day of the
3534 student's membership and ends on the last day of the student's membership in
3635 the LEA, except that the membership of a student who graduates early is
3736 extended to the student's expected graduation date for funding purposes.
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4241 SECTION 3. Tennessee Code Annotated, Section 49-3-316, is amended by adding the
4342 language "or public charter school" after the language "LEA" wherever it appears in subsection
4443 (c) and by adding the following as a new subsection:
4544 (f)
4645 (1) The commissioner, in consultation with the comptroller of the
4746 treasury, shall develop, revise as necessary, and prescribe a standardized
4847 system of financial accounting and reporting for all public charter schools,
4948 including appropriate forms or other documentation. This system must be
5049 designed to facilitate year-to-year and agency-to-agency comparison, as well as
5150 adequately indicating the sources and uses of all funds received by each public
5251 charter school. The commissioner shall review the fiscal public school records in
5352 all public charter schools to the end that the expenditure of funds, whether for
5453 current operation and maintenance purposes, capital outlay purposes, and other
5554 school purposes, are properly accounted for and safeguarded.
5655 (2) The commissioner may require public charter schools that receive
5756 allocations of state education funding pursuant to part 1 of this chapter or
5857 otherwise to comply with one (1) or more of the requirements established for
5958 LEAs in this section, as the commissioner deems appropriate or applicable.
6059 SECTION 4. Tennessee Code Annotated, Section 49-13-112, is amended by deleting
6160 subsection (a) and substituting instead the following:
6261 (a)
6362 (1) A local board of education shall allocate to the public charter school
6463 an amount equal to:
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6968 (A) The local student-generated funds for member students in the
7069 public charter school for the prior year in alignment with the TISA
7170 pursuant to chapter 3, part 1 of this title;
7271 (B) The average per pupil state and local funds received by the
7372 district in the current school year above those required by the TISA for
7473 each member student in the public charter school in the prior year;
7574 (C) The per student state and local funds received by the LEA for
7675 member students in the public charter school in the current school year
7776 beyond the prior year's membership; and
7877 (D) All appropriate allocations under federal law or regulation,
7978 including, but not limited to, IDEA and ESEA funds.
8079 (2) The department of education shall allocate directly to the public
8180 charter school an amount equal to the state student-generated funds for member
8281 students in the public charter school for the prior year in alignment with the TISA
8382 pursuant to chapter 3, part 1 of this title.
8483 (3) Federal funds received by the LEA must be disbursed to public
8584 charter schools authorized by the LEA by either joint agreement on shared
8685 services by individual public charter schools or sub-grants to a public charter
8786 school for the public charter school's equitable share of the federal grant based
8887 on eligible students. The allocation must be made in accordance with the
8988 policies and procedures developed by the department of education.
9089 (4) Each LEA shall include as part of its budget submitted pursuant to §
9190 49-2-203, the per pupil amount of local money it will pass through to public
9291 charter schools during the upcoming school year, including all calculations listed
9392 in this section. Allocations to public charter schools during that year must be
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9897 based on the calculated amounts. The LEA shall distribute the portion of local
9998 funds it expects to receive in no fewer than nine (9) equal installments to public
10099 charter schools in the same manner as state funds are distributed pursuant to
101100 chapter 3 of this title. An LEA shall adjust local payments to public charter
102101 schools, at a minimum, in October, February, and June, based on changes in
103102 revenue, student membership, or student services. All funds received by a public
104103 charter school must be spent according to the budget submitted or as otherwise
105104 revised by the public charter school governing body, subject to the requirements
106105 of state and federal law.
107106 SECTION 5. Sections 1 and 3 of this act take effect upon becoming a law, the public
108107 welfare requiring it. For rulemaking purposes, Sections 2 and 4 of this act take effect upon
109108 becoming a law, the public welfare requiring it. For all other purposes, Sections 2 and 4 of this
110109 act take effect July 1, 2025, the public welfare requiring it.