House Bill 401 amends various sections of the Tennessee Code Annotated to enhance the funding framework for education, particularly focusing on pre-kindergarten students with special education needs. The bill establishes the Tennessee investment in student achievement formula (TISA) as the primary funding mechanism for K-12 public schools and introduces definitions for key terms such as "least restrictive environment," "peer model," and "pre-kindergarten student with special education needs." These definitions clarify the educational context and requirements for children with disabilities, ensuring they are educated alongside their peers to the maximum extent appropriate.

Additionally, the bill stipulates that the receipt of TISA funding for pre-kindergarten students with special education needs and peer models will not impact the overall state funding an LEA receives. It also removes the specific reference to "kindergarten through grade twelve (K-12)" in one section, broadening the scope of the funding formula. The act will take effect upon becoming law for rulemaking purposes, while other provisions will be effective starting July 1, 2025, applying to the 2025-2026 school year and beyond.

Statutes affected:
Introduced: 49-3-103(a), 49-3-103, 49-3-104, 49-3-111(d), 49-3-111, 49-6-107