House Bill 2420 amends Tennessee Code Annotated, specifically Section 49-16-213, to establish criteria for the closure of virtual schools based on student achievement. If a virtual school is identified as a priority school or demonstrates "significantly below expectations" growth for three consecutive years, the local education agency (LEA) is mandated to close the school. The closure takes effect at the end of the school year in which the criteria are met. Additionally, if a virtual school is closed, the LEA must notify parents within a week and provide alternative enrollment options within thirty days. The bill also stipulates that the virtual school cannot enroll new students post-closure and that providers cannot withhold student records during transfers.

Furthermore, the bill modifies Section 49-16-214, allowing establishments to contract with nonprofit or for-profit providers for virtual school management. However, if a provider's school is closed due to performance issues, they are prohibited from operating a new virtual school in Tennessee for five years. The Department of Education is tasked with maintaining a public list of ineligible providers. This legislation is set to take effect on July 1, 2026, to ensure compliance with the new regulations.

Statutes affected:
Introduced: 49-16-213, 49-16-214
Amended with SA0611 -- 03/19/2026: 49-16-213, 49-16-214
Amended with SA0611, HA1014 -- 04/16/2026: 49-16-213, 49-16-214