Senate Bill 2441 amends Tennessee Code Annotated to establish stricter regulations for virtual schools identified as priority schools or those demonstrating significantly below expectations in student achievement. The bill mandates that if a virtual school is identified as a priority school starting in 2025 or shows poor performance for three consecutive years, the commissioner must direct the local education agency (LEA) to close the school. The closure takes effect at the end of the school year, and the LEA is prohibited from receiving Tennessee investment in student achievement formula (TISA) payments for students who do not remain enrolled after the closure. Additionally, the bill outlines notification requirements for parents and guardians regarding the closure and alternative enrollment options.

Furthermore, the bill introduces a five-year ban on nonprofit and for-profit providers from operating new virtual schools in Tennessee if they have managed a school that was closed due to poor performance. The Department of Education is tasked with maintaining a public list of ineligible providers and those that regain eligibility after the five-year period. This legislation aims to enhance accountability and performance standards for virtual schools in Tennessee, ensuring that students receive quality education. The act is set to take effect on July 1, 2026.

Statutes affected:
Introduced: 49-16-213, 49-16-214