This bill creates the promising futures early learning fund (the "fund"), which will be used to provide promising futures early learning scholarships and to defray administrative expenses associated with the promising futures early learning scholarship program established by this bill. This bill prohibits the use of monies in the promising futures early learning fund to displace, replace, or supplant state funding for child care or other early learning programs. Beginning July 1, 2025, and each July 1 thereafter, this bill requires the Tennessee education lottery corporation to transfer 100% of net lottery proceeds that are not used to fund scholarships other than the promising futures early learning scholarship established by this bill, early learning programs and after school programs, or capital outlay projects for grades kindergarten through 12 educational facilities, to the promising futures early learning fund. This bill establishes the promising futures early learning scholarship program (the "program") to help children attend a high-quality early learning program. This bill defines "high-quality early learning program" to mean a program with quality ratings, as determined by the department of education utilizing measurement methods and instruments described in the full text of this bill, indicating that the program delivers high-quality, teacher-child interaction and instruction predictive of child outcomes. This bill requires the department of education to do the following: (1) Implement the program by July 1, 2026; (2) Establish and administer a streamlined online portal that parents may use to apply for a promising futures scholarship. The full text of this bill specifies certain capabilities that the portal must include; (3) Establish qualifications for high-quality instruction in high-quality early learning programs for purposes of the promising futures early learning scholarships; (4) Establish the measurement methods and instruments for high-quality instruction; (5) Establish procedures to verify scholarship eligibility; (6) Pay scholarship funds directly to the high-quality early learning program in which the child who receives the scholarship is enrolled; and (7) Submit a report on the implementation of the program, including program outcomes, to the education committee of the senate and the committee of the house of representatives with jurisdiction over lottery scholarships by December 31, 2027, and by December 31 of each year thereafter. For the first year that promising futures early learning scholarships are awarded, this bill authorizes the department to award up to 5,000 scholarships, and the maximum amount of a scholarship is $4,500. For the second and subsequent years that promising futures early learning scholarships are awarded, the department may award as many promising futures early learning scholarships and in such amount as funding permits. If there are more eligible applicants than scholarship funds available, then this bill gives first priority for a scholarship to an eligible child who received a scholarship in the immediately preceding school year and remaining scholarships will be determined based on the results of a lottery. This bill establishes the following eligibility requirements for a promising futures scholarship: (1) Be at least six weeks of age and not eligible to attend a public school based on age; (2) Be a member of a household with an annual income for the previous year that does not exceed 150% the state median income; (3) Reside with a parent or legal guardian who has primary responsibility for care and control of the child and who is employed and works an average of 30 hours or more per week or is enrolled in and attending full time an eligible postsecondary education program OR reside in a household with two parents or legal guardians who are each either employed and work an average of 30 hours or more per week or are enrolled in and attending full time an eligible postsecondary education program; (4) Be accepted to a high-quality early learning program; and (5) Be a Tennessee resident. This bill authorizes the department to do the following: (1) Suspend or terminate a parent's or legal guardian's participation in the program if the department determines that the child's parent or legal guardian failed to comply with program requirements; and (2) Refer for criminal prosecution a high-quality early learning program that knowingly uses promising futures early learning scholarship funds with the intent to defraud the program. This bill specifies that a promising futures early learning scholarship: (1) Constitutes a scholarship provided for high-quality early learning for a child; and (2) Does not constitute income of a parent or legal guardian of a child under state law.

Statutes affected:
Introduced: 4-51-111