House Bill 2106 and Senate Bill 2159 propose amendments to Tennessee Code Annotated, Section 49-4-708, concerning the Tennessee Promise scholarship endowment fund. The bill specifically modifies subsection (d)(7) by deleting the first sentence and replacing it with new language that stipulates that starting in the fiscal year 2025-2026, any funds in the lottery for education account that exceed the general shortfall reserve subaccount and ten million dollars must be transferred to the Tennessee Promise scholarship special reserve account. This transfer is to occur at least annually or more frequently as determined by the state treasurer and the commissioner of finance and administration, with a cap on the amount transferred each fiscal year set at ten million dollars.

The bill aims to ensure a consistent funding mechanism for the Tennessee Promise scholarship program by establishing clear guidelines for the transfer of excess lottery funds. This legislative change is intended to enhance the financial stability of the scholarship fund, thereby supporting the educational opportunities for students in Tennessee. The act will take effect upon becoming law, emphasizing the urgency of the public welfare in implementing these changes.

Statutes affected:
Introduced: 49-4-708(d)(7), 49-4-708