House Bill 401 amends various sections of the Tennessee Code Annotated related to education funding, specifically focusing on the Tennessee investment in student achievement formula (TISA). The bill establishes TISA as a student-based funding formula for K-12 public schools, pre-kindergarten students with special education needs, and peer models. It introduces new definitions, including "least restrictive environment," "peer model," and "pre-kindergarten student with special education needs," to clarify the educational context for children with disabilities. Additionally, the bill removes the specific mention of "kindergarten through grade twelve (K-12)" from a subsection, allowing for broader application of the funding formula.

Furthermore, the bill ensures that the receipt of TISA funding for pre-kindergarten students with special education needs and peer models does not impact the amount of state funds received by local education agencies (LEAs) in subsequent years. 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