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HB1863 • 2026

Lottery, Scholarships and Programs

AN ACT to amend Tennessee Code Annotated, Title 4, Chapter 49; Title 4, Chapter 51 and Title 49, Chapter 4, relative to safeguarding financial aid programs funded using net lottery proceeds.

Education
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Hicks G, Watson
Last action
2026-02-02
Official status
Assigned to s/c Higher Education Subcommittee
Effective date
Not listed

Plain English Breakdown

The bill does not specify actions based on the report's findings or future changes to lottery funding for scholarships and grants.

Lottery Scholarship Report Act

This bill requires THEC to report on any years since 2004 when lottery funds were not enough to fully fund scholarships and grants.

What This Bill Does

  • Requires THEC to create a report about fiscal years where lottery money was insufficient for full scholarship funding, starting from 2004 through 2026.
  • THEC needs to submit the report by October 1, 2027, to specific committees in both houses of the Tennessee General Assembly.

Who It Names or Affects

  • The Tennessee Higher Education Commission (THEC) must prepare and submit the report.
  • Education and finance committees in both the Senate and House receive the report.

Terms To Know

Tennessee Higher Education Commission (THEC)
A state agency that oversees higher education policies and funding.
Pro rata reduction
Reducing amounts by a proportional share when there is not enough money to fully fund something.

Limits and Unknowns

  • The bill does not specify what actions should be taken based on the report's findings.
  • It is unclear if this act will lead to changes in lottery funding for scholarships and grants after the report is submitted.

Bill History

  1. 2026-03-11 Tennessee General Assembly

    Assigned to General Subcommittee of Senate Education Committee

  2. 2026-03-05 Tennessee General Assembly

    Placed on Senate Education Committee calendar for 3/11/2026

  3. 2026-02-05 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Education Committee

  4. 2026-02-02 Tennessee General Assembly

    Assigned to s/c Higher Education Subcommittee

  5. 2026-02-02 Tennessee General Assembly

    P2C, ref. to Education Committee

  6. 2026-02-02 Tennessee General Assembly

    Introduced, Passed on First Consideration

  7. 2026-01-22 Tennessee General Assembly

    Intro., P1C.

  8. 2026-01-22 Tennessee General Assembly

    Filed for introduction

  9. 2026-01-21 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

Read the full stored bill text 
SENATE BILL 2078
By Watson

HOUSE BILL 1863
By Hicks G
HB1863
011088
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 4,
Chapter 49; Title 4, Chapter 51 and Title 49,
Chapter 4, relative to safeguarding financial aid
programs funded using net lottery proceeds.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1.
(a) The Tennessee higher education commission (THEC) shall submit a one-
time report to the education committee of the senate; the committee of the house of
representatives having jurisdiction over higher education; the finance, ways and means
committee of the senate; and the committee of the house of representatives having
jurisdiction over finance that identifies any fiscal year since 2004 for which net lottery
proceeds were insufficient to fully fund the scholarships and grants created by
Tennessee Code Annotated, Title 49, Chapter 4, Part 9, resulting in:
(1) A pro rata reduction in the amounts awarded for any such
scholarships and grants pursuant to Tennessee Code Annotated, Section 49-4-
903; or
(2) A draw upon the general shortfall reserve subaccount created in
Tennessee Code Annotated, Section 4-51-111(b)(3) to meet any deficiency in
the net lottery proceeds in the lottery for education account to cover the amount
appropriated for educational programs and purposes pursuant to Tennessee
Code Annotated, Section 4-51-111(c).
(b) THEC shall submit the report required in subsection (a) no later than October
1, 2027. The report must include the information described in subsection (a) for each

- 2 - 011088

fiscal year beginning with the 2004 fiscal year and continuing through the 2026 fiscal
year.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.