Education, Higher

Plain English Breakdown

The bill does not provide details about funding for TSAC after restructuring.

Higher Education Changes in Tennessee

This bill changes how TSAC operates and updates scholarship programs for higher education.

What This Bill Does

• Changes TSAC to operate as a division within the Tennessee Higher Education Commission instead of being an independent nonprofit corporation.
• Removes the current board of directors for TSAC by July 1, 2025, and replaces it with the Tennessee Higher Education Commission.
• Eliminates references to 'Tennessee college of applied technology' in scholarship provisions.
• Expands eligibility for the Wilder-Naifeh technical skills grant (now called TennesseeWORKS scholarship) to include programs that lead to registered apprenticeships or occupational licensure.

Who It Names or Affects

• Students seeking financial aid and scholarships for higher education in Tennessee.
• TSAC, which administers student assistance programs.
• The Tennessee Higher Education Commission, which will now oversee TSAC.

Terms To Know

Tennessee Promise Scholarship

A scholarship that covers tuition and mandatory fees at a public two-year college or technical school in Tennessee.

Quality Non-Degree Credential (QNDC)

A credential other than a degree, diploma, or certificate that indicates completion of a workforce training program leading to an industry certification.

Limits and Unknowns

• The bill does not specify how TSAC will be funded after the changes.
• It is unclear what impact these changes will have on current scholarship recipients and programs.

Official Summary Text

TENNESSEE STUDENT ASSISTANCE CORPORATION (TSAC)

Operation
of TSAC

Present law provides that the Tennessee student assistance corporation
(TSAC) is a nonprofit corporation that is created to administer s
tudent assistance programs authorized by law, which corporation
must
be registered with the secretary of state, and
must
be subject to the corporate laws of this state
. This bill adds that T
SAC must operate as a division within the Tennessee higher education commission.

Board of Directors

Present law provides that TSAC is governed by
a board of directors consisting of the governor, the commissioner of education, the state treasurer, the c
omptroller of the treasury, the commissioner of finance and administration, the president of the Tennessee Independent Colleges and Universities Association, the president of the Tennessee Proprietary Business School Association, the president of the Univ
e
rsity of Tennessee, the chancellor of the board of regents, the president of the Tennessee Association of Student Financial Aid Administrators, two students enrolled in an institution of higher education in Tennessee, and three private citizens involved i
n
the field of education but not employed by or professionally affiliated with any institution of higher education in the state.

This bill terminates such governing board of directors for TSAC on July, 1, 2025. Effective July 1, 2025, the Tennessee highe
r education commission must serve as the governing board of directors for TSAC. TSAC must carry out its purposes, and the Tennessee higher education commission is authorized
to expend for the necessary administration of
such purposes
any funds appropriate
d, received, or
allocated for such purposes.

Sunset Review

Present law provides that
TSAC's
board of directors
, for sunset review purposes,
terminate
s
June 30, 2026. This bill revises this provision to
,
instead
, provide
that
TSAC
, as governed by the T
ennessee higher education commission
,

so
terminate
s
June 30, 2026
.

TENNESSEE PROMISE SCHOLARSHIP ACT

Present law requires a
Tennessee Promise scholarship at a Tennessee public two-year postsecondary institution or Tennessee college of applied technology

to
be the cost of tuition and mandatory fees at the eligible postsecondary institution attended less all other gift aid.

This bill removes "Tennessee college of applied technology" from this provision.

WILDER-NAIFEH TECHNICAL SKILLS GRANT

In order t
o be eligible for a Wilder-Naifeh technical skills grant,
present law requires
a student seeking a
quality non-degree credential

("
QNDC
")
, diploma, or certificate at a Tennessee college of applied technology operated by the board of regents of the state un
iversity and community college system
to meet certain
requirements and
b
e admitted to the institution in an eligible program of study leading to a certificate or diploma.
A "QNDC"
means a credential, other than a degree or a diploma, the receipt of which
indicates satisfactory completion of a workforce training program that
, amongst other requirements, c
ulminates in an industry certification, but does not include participation in, or completion of, a program of professional development, continuing educatio
n, exam preparation, or similar objectives
. This bill revises this definition to include completion of a program that c
ulminates in a

registered apprenticeship, occupational licensure, or certificate.

Present law authorizes an eligible student to
receiv
e a Wilder-Naifeh technical skills grant for all course work required by the institution for an eligible program of study leading to a certificate or diploma.

This bill revises this provision to include a program of study leading to a QNDC.

This bill re
names this grant a
TennesseeWORKS scholarship
.

WILDER-NAIFEH RECONNECT GRANT

Present law creates the Wilder-Naifeh reconnect grant and provides that to be eligible for the Wilder-Naifeh reconnect grant, a student seeking a diploma or certificate at a Te
nnessee college of applied technology operated by the board of regents of the state university and community college system must meet several qualifications described in present law. This bill removes this grant.

Current Bill Text

SENATE BILL 1312
By Johnson

HOUSE BILL 1324
By Lamberth

HB1324
002819
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 4;
Title 49, Chapter 4 and Title 49, Chapter 7, relative
to higher education.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 49-4-201, is amended by deleting the
section and substituting instead:
Notwithstanding title 48, chapters 51-69 to the contrary, there is created a
nonprofit corporation that is known as the Tennessee student assistance corporation,
which operates as a division within the Tennessee higher education commission, to
administer student assistance programs authorized by law. The corporation must be
registered with the secretary of state and is subject to the corporate laws of this state,
except as provided in this part and parts 3 and 6-9 of this chapter.
SECTION 2. Tennessee Code Annotated, Section 49-4-202, is amended by deleting the
section and substituting instead:
(a) The governing board of directors for the Tennessee student assistance
corporation as of June 30, 2024, is terminated on July 1, 2025. Effective July 1, 2025,
the Tennessee higher education commission, created by § 49-7-201, shall serve as the
governing board of directors for the Tennessee student assistance corporation.
(b) The Tennessee student assistance corporation shall carry out the purposes
of this part and parts 3 and 6-9 of this chapter. The commission is authorized and
empowered to expend for the necessary administration of this part and parts 3 and 6-9
of this chapter any funds appropriated, received, or allocated for the purposes of this
part and parts 3 and 6-9 of this chapter.

- 2 - 002819

SECTION 3. Tennessee Code Annotated, Section 49-4-708(c)(5), is amended by
deleting "or Tennessee college of applied technology".
SECTION 4. Tennessee Code Annotated, Section 49-4-902(33)(B), is amended by
deleting the subdivision and substituting:
(B) Culminates in an industry certification, registered apprenticeship,
occupational licensure, or certificate, but does not include participation in, or completion
of, a program of professional development, continuing education, exam preparation, or
similar objectives;
SECTION 5. Tennessee Code Annotated, Section 49-4-921(e), is amended by deleting
"certificate or diploma" and substituting instead "QNDC, certificate, or diploma".
SECTION 6. Tennessee Code Annotated, Section 49-4-923, is amended by deleting the
section.
SECTION 7. Tennessee Code Annotated, Section 49-4-902(46), is amended by
deleting the language "Wilder-Naifeh technical skills grant" and substituting instead
"TennesseeWORKS scholarship" and redesignating the subdivision appropriately.
SECTION 8. Tennessee Code Annotated, Section 49-4-905, is amended by deleting the
language "Wilder-Naifeh technical skills grant" wherever it appears in subsection (a) and
substituting instead "TennesseeWORKS scholarship" and deleting the language "Wilder-Naifeh
technical skills grants" in subdivision (b)(2) and substituting instead "TennesseeWORKS
scholarships".
SECTION 9. Tennessee Code Annotated, Section 49-4-921, is amended by deleting the
language "Wilder-Naifeh technical skills grant" wherever it appears and substituting instead
"TennesseeWORKS scholarship" and deleting the language "Wilder-Naifeh technical skills
grants" in subsection (e) and substituting instead "TennesseeWORKS scholarships".

- 3 - 002819

SECTION 10. Tennessee Code Annotated, Section 49-4-922, is amended by deleting
the language "Wilder-Naifeh technical skills grant" and substituting instead "TennesseeWORKS
scholarship".
SECTION 11. Tennessee Code Annotated, Section 49-4-937(a), is amended by
deleting the language "Wilder-Naifeh technical skills grant" and substituting instead
"TennesseeWORKS scholarship".
SECTION 12. Tennessee Code Annotated, Section 49-7-202(c), is amended by adding
the following as a new subdivision:
(4) Serve as the governing board of directors for the Tennessee student
assistance corporation.
SECTION 13. Tennessee Code Annotated, Section 4-29-247(a), is amended by
deleting subdivision (66) and substituting instead:
(66) The Tennessee student assistance corporation, as governed by the
Tennessee higher education commission, created by § 49-7-201;
SECTION 14. This act takes effect upon becoming a law, the public welfare requiring it.