House Bill 1863 mandates the Tennessee Higher Education Commission (THEC) to prepare and submit a comprehensive report to various legislative committees. This report will identify any fiscal years since 2004 where net lottery proceeds were inadequate to fully fund scholarships and grants established under Tennessee Code Annotated, Title 49, Chapter 4, Part 9. Specifically, it will detail instances that led to either a pro rata reduction in awarded amounts or a draw from the general shortfall reserve subaccount to address deficiencies in funding for educational programs.

The report is required to cover each fiscal year from 2004 through 2026 and must be submitted by October 1, 2027. The bill emphasizes the importance of safeguarding financial aid programs funded by net lottery proceeds, ensuring transparency and accountability in the management of these funds. The act will take effect upon becoming law, prioritizing public welfare.