Lottery, Scholarships and Programs

Plain English Breakdown

The official source does not provide details on the exact financial impact or specify which private schools will be newly eligible.

Expanding Lottery Scholarship Eligibility

This bill changes Tennessee law to allow private schools that are candidates for accreditation by a recognized group and have their main campus in Tennessee to accept lottery-funded scholarships.

What This Bill Does

• Changes the definition of eligible postsecondary institutions that can accept students who get lottery-funded scholarships.
• Adds new types of private schools as eligible if they are based in Tennessee and working towards accreditation by a recognized regional accrediting association.

Who It Names or Affects

• Students who receive lottery-funded scholarships
• Private postsecondary institutions that meet the new eligibility criteria

Terms To Know

Eligible Postsecondary Institution

A school where students can use money from the state lottery for their education.

Regional Accrediting Association

An organization that checks if a school meets certain quality standards.

Limits and Unknowns

• The bill could increase how much money goes to new eligible schools, but the extent and timing of such impacts are dependent on multiple unknown factors and cannot be determined with reasonable certainty.

Official Summary Text

Present law requires the n
et proceeds of the state lottery
to
be used to supplement

existing resources for educatio
nal purposes, projects and programs
, including the
Tennessee HOPE scholarship
.
Only eligible postsecondary schools may accept student recipients of state lottery proceeds. An "e
ligible postsecondary institution
"
means an eligible independent postsecondar
y institution or an eligible public postsecondary institution
.

Present law provides that an "e
ligible independent postsecondary institution
"

is any of the following:



An institution created by testamentary trust for which the state acts by statute as trustee and for which the governor is authorized to appoint commissioners with the advice and consent of the senate and that offers courses leading to undergraduate degrees
.



A private four-year postsecondary institution that
h
as been chartered in this state as a not-for-profit entity for at least 100 years;
h
as had its primary campus domiciled in this state for at least 125 years;
a
wards baccalaureate degrees; and
r
equires all students to participate in a four-level college work program in which students provide services to the institution and to the community
.



A private postsecondary institution accredited by a regional accrediting association that has its primary campus domiciled in this state
.

This bill adds that an eligible
private postsecondary institu
tion
is
a
lso one
that has its primary campus domiciled in this state and is a candidate for accreditation by a regional accrediting association
.

Current Bill Text

SENATE BILL 1085
By Johnson

HOUSE BILL 777
By Reeves

HB0777
001020
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 49,
Chapter 4, Part 9, relative to higher education.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 49-4-902(11), is amended by
deleting subdivision (C) and substituting instead the following:
(C) A private postsecondary institution that has its primary campus domiciled in
this state and that is accredited by, or a candidate for accreditation by, a regional
accrediting association;
SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it.