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SENATE BILL 1723
By Roberts
HOUSE BILL 2080
By Littleton
HB2080
011129
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AN ACT to amend Tennessee Code Annotated, Title 4;
Title 10 and Title 49, relative to the Tennessee
Education Lottery Corporation.
WHEREAS, the General Assembly finds that the Tennessee Education Lottery
Corporation (TELC) serves a vital public purpose in supporting education programs across this
State through lottery revenues; and
WHEREAS, the TELC's independent structure requires strong and balanced oversight to
ensure accountability, transparency, and continued public trust; and
WHEREAS, the appointment model used by the Tennessee Sports Wagering Council,
providing for appointments by the governor, the speaker of the Senate, and the speaker of the
House of Representatives, has proven effective in maintaining both independence and
accountability; and
WHEREAS, the General Assembly finds it is in the best interest of this State to adopt a
similar appointment structure for the TELC's board of directors to strengthen governance and
public confidence; now, therefore,
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 4-51-103, is amended by deleting the
section and substituting instead:
(a) On July 1, 2026, the membership of the board of directors of the corporation
is vacated and the board ceases to exist.
(b)
(1) There is created a board of directors to govern the corporation
consisting of nine (9) directors, appointed as follows:
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(A) Three (3) directors appointed by the governor;
(B) Three (3) directors appointed by the speaker of the senate;
and
(C) Three (3) directors appointed by the speaker of the house of
representatives.
(2) The board appointed pursuant to subdivision (b)(1) immediately
assumes the full authority of the board vacated pursuant to subsection (a), and
all actions, contracts, and obligations of the corporation remain in full force and
effect. The reconstituted board shall continue the operations of the corporation
without interruption.
(c) All appointments under subsection (b) must be made to ensure diversity of
professional expertise, geography, and demographic representation consistent with the
mission of the corporation.
(d) The term of each director begins on the date of appointment but must be
calculated, for purposes of the term, from July 1, 2026. For purposes of staggering the
terms of the board, each appointing authority shall appoint one (1) director to a term of
four (4) years, one (1) director to a term of three (3) years, and one (1) director to a term
of two (2) years.
(e) After the initial terms, the term of an appointed or reappointed director is four
(4) years; provided, that, at the end of the director's term, the director shall continue to
serve until a replacement is appointed by the appropriate appointing authority.
(f)
(1) Each director of the board serves at the pleasure of the appointing
authority and may be removed with or without cause.
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(2) If a director is removed, such vacancy must be filled in the same
manner as other vacancies on the board.
(g)
(1) A vacancy on the board must be filled for the balance of the
unexpired term in the same manner as the original appointment.
(2) A vacancy in the membership of the board shall not impair the right of
the directors to exercise all the powers and perform all the duties of the board.
(h)
(1) A majority of the directors in office constitutes a quorum for the
transaction of business and for the exercise of any power or function of the
corporation.
(2) Action may be taken and motions and resolutions adopted by the
board at a board meeting by the affirmative vote of a majority of present and
voting directors.
(i) Directors serve without compensation, but must be reimbursed for per diem
and travel expenses in accordance with the comprehensive travel regulations as
promulgated by the department of finance and administration and approved by the
attorney general and reporter for each day's service spent in the performance of the
duties of the corporation.
(j) The directors shall elect from their membership a chair and vice chair. The
directors shall also elect a secretary and treasurer who may, from time to time, serve as
the acting chief executive officer of the corporation. Such officers shall serve for such
terms as are prescribed by the bylaws of the corporation or until their respective
successors are elected and qualified. A director of the board shall not hold more than
one (1) office of the corporation, except that the same director may serve as secretary
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and treasurer. Such officers are eligible for reelection. The chair shall preside at all
meetings and have all the powers and privileges of other directors.
(k) The board shall meet at least quarterly, and at other times upon call of the
chair or a majority of the directors.
(l)
(1) A director of the board, or a member of their immediate family, shall
not have a direct or indirect interest at the time of their appointment, or within a
period of two (2) years prior to their appointment, in any undertaking that puts
their personal interest in conflict with that of the corporation, including, but not
limited to, any interest, through ownership, stock, or otherwise, in a major
procurement contract or a participating retailer; provided, that a director, or a
member of such director's immediate family, may hold an incidental interest not
to exceed one percent (1%) of the outstanding stock of a participating retailer.
(2) A director shall not make a contribution to the campaign of a
candidate for the general assembly or to a candidate for governor.
(m) The board of directors may delegate to one (1) or more of its directors, to the
chief executive officer, or to any agent or employee of the corporation such powers and
duties as it may deem proper.
SECTION 2. Tennessee Code Annotated, Section 4-51-124, is amended by deleting
subdivision (a)(9); and is further amended by deleting subsections (b) and (c) and substituting:
(b) Information related to the hiring, employment, retention, performance
evaluation, compensation, or contractual terms of the chief executive officer or president
of the corporation are public records and subject to title 10, chapter 7; provided, that
personally identifying information remains confidential and is subject to redaction
pursuant to § 10-7-503(a)(5).
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(c) Notwithstanding another law to the contrary and except as provided in
subsection (a), the corporation shall comply with all public record and public meeting
requirements applicable to state agencies, including, but not limited to, title 10, chapter
7, and title 8, chapter 44.
SECTION 3. Tennessee Code Annotated, Section 4-29-251(a), is amended by adding
the following new subdivision:
( ) Tennessee education lottery corporation, created by § 4-51-101;
SECTION 4. For administrative purposes, the Tennessee Education Lottery Corporation
remains an independent instrumentality of this state and is not subject to supervision or control
by a department or agency, except as specifically provided by law.
SECTION 5. For purposes of carrying out administrative duties necessary to effectuate
this act, this act takes effect upon becoming a law, the public welfare requiring it. For all other
purposes, this act takes effect July 1, 2026, the public welfare requiring it.