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SENATE BILL 2051
By Powers
HOUSE BILL 2103
By Stevens
HB2103
010242
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AN ACT to amend Tennessee Code Annotated, Title 49,
Chapter 4, relative to financial aid.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 49-4-1003, is amended by deleting
subdivision (2) and substituting instead the following:
(2) "Educational institution" means:
(A) Any public university, college, community college, college of applied
technology, or any private college or university that is regionally accredited and
has its primary campus domiciled in this state; and
(B) A private postsecondary institution that:
(i) Has established a partnership with this state pursuant to a
memorandum of understanding executed in 2013;
(ii) Is accredited by a regional accrediting association;
(iii) Uses a competency-based model;
(iv) Has established and continuously maintains a physical
campus or location of operation within this state;
(v) Maintains a governing body or advisory board based in
Tennessee with oversight of Tennessee operations; and
(vi) Has been chartered in this state as a not-for-profit entity for at
least five (5) consecutive years;
SECTION 2. Tennessee Code Annotated, Section 49-4-1003, is amended by deleting
subdivision (5) and substituting instead the following:
(5) "Full-time student" means a student:
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(A) Attending an educational institution, as defined in subdivision (2)(A)
who is enrolled in at least twelve (12) semester hours during each fall, spring, or
summer semester of attendance toward the student's first bachelor's degree; or
(B) Attending an educational institution, as defined in subdivision (2)(B),
who is enrolled in the term prescribed by the institution for the student to make
satisfactory progress toward the student's first bachelor's degree;
SECTION 3. Tennessee Code Annotated, Section 49-4-1003, is amended by deleting
subdivision (11) and substituting instead the following:
(11) "Semester hour" means the credit hour used by an educational institution, if
the institution is on a semester system, or its equivalent if the institution is on a system
other than a semester system, and includes:
(A) A credit hour used by an educational institution pursuant to the
institution's competency-based model; and
(B) Each semester hour attempted, whether remedial or for credit toward
a degree, but does not include any semester hour attempted before graduating
from high school or earning a high school equivalency diploma;
SECTION 4. Tennessee Code Annotated, Section 49-4-1005, is amended by deleting
the section and substituting instead the following:
The following are limitations and conditions on eligibility for tuition reimbursement
under the program:
(1)
(A) At an educational institution, as defined in § 49-4-1003(2)(A),
a member must maintain satisfactory academic progress and, for
undergraduate, vocational, or technical programs, a minimum grade point
average of 2.0, and for a master's program, a minimum grade point
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average of 3.0, as determined by the educational institution attended for
the semester for which the member applies for tuition reimbursement; or
(B) At an educational institution, as defined in § 49-6-1003(2)(B),
a member must maintain satisfactory academic progress as determined
by the educational institution in which the member is enrolled;
(2) A member receiving tuition reimbursement under this part who
ceases to be eligible for the reimbursement because the member fails to
maintain satisfactory academic progress or the required grade point average at
the end of any semester may regain eligibility for tuition reimbursement at the
end of any subsequent semester in which satisfactory academic progress and
the required grade point average are established;
(3)
(A) At an educational institution, as defined in § 49-4-1003(2)(A),
tuition reimbursement must be paid on behalf of a member for no more
than one hundred thirty (130) semester hours toward the member's first
bachelor's degree. A member ceases to be eligible for tuition
reimbursement under this part upon the first of the following events to
occur:
(i) The member has attempted one hundred thirty (130)
semester hours at an educational institution, as defined in § 49-4-
1003(2)(A), toward the member's first bachelor's degree, inclusive
of any postsecondary semester hours earned prior to receipt of
tuition reimbursement under this part; or
(ii) The member has earned their first bachelor's degree;
or
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(B) At an educational institution, as defined in § 49-6-1003(2)(B),
tuition reimbursement must be paid on behalf of a member for no more
than the number of courses or terms required, on average, for students
enrolled in the educational institution to earn their first bachelor's degree,
as determined by the institution. A member ceases to be eligible for
tuition reimbursement under this part upon the first of the following events
to occur:
(i) The member has attempted the number of courses or
terms required, on average, for students enrolled in an
educational institution, as defined in § 49-4-1003(2)(B), to earn
their first bachelor's degree, as determined by the institution; or
(ii) The member has earned their first bachelor's degree;
(4)
(A) At an educational institution, as defined in § 49-4-1003(2)(A),
tuition reimbursement must be paid on behalf of a member for no more
forty (40) semester hours toward the member's first master's degree. A
member ceases to be eligible for tuition reimbursement under this part
upon the first of the following events to occur:
(i) The member has attempted forty (40) semester hours
at an educational institution, as defined in § 49-4-1003(2)(A),
toward the member's first master's degree, inclusive of any post-
baccalaureate semester hours earned prior to receipt of tuition
reimbursement under this part; or
(ii) The member has earned their first master's degree; or
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(B) At an educational institution, as defined in § 49-6-1003(2)(B),
tuition reimbursement must be paid on behalf of a member for no more
than the number of courses or terms required, on average, for students
enrolled in the educational institution to earn their first master's degree, as
determined by the institution. A member ceases to be eligible for tuition
reimbursement under this part upon the first of the following events to
occur:
(i) The member has attempted the number of courses or
terms required, on average, for students enrolled in an
educational institution, as defined in § 49-4-1003(2)(B), to earn
their first master's degree, as determined by the institution; or
(ii) The member has earned their first bachelor's degree;
(5) Tuition reimbursement must be paid to an educational institution, as
defined in § 49-4-1003(2)(A), on behalf of a member for no more than twenty-four
(24) semester hours toward a certificate or diploma from a vocational or technical
program. A member is no longer eligible for tuition reimbursement under this
part when the member has attempted twenty-four (24) semester hours toward a
certificate or diploma from a vocational or technical program, inclusive of any
semester hours earned in that same vocational or technical program prior to
receipt of tuition reimbursement under this part. It is not required that tuition
reimbursement under this part apply toward a member's first certificate or
diploma from a vocational or technical program;
(6) Notwithstanding subdivisions (3)(A) and (4)(A), a member who is
enrolled in an officer-producing program at an educational institution, as defined
in § 49-4-1003(2)(A), is exempt from the semester and semester-hour limits for
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tuition reimbursement under this part for up to thirty (30) additional semester
hours for the limited purpose of allowing the member to complete the courses
required to accept a commission upon graduation with the member's first
bachelor's or master's degree;
(7) Tuition reimbursement amounts that a member is eligible to receive
under this part must be offset and reduced by the aggregate amount of state and
federal education financial assistance received by the member during the
semester or educational term, unless federal law or regulation requires
otherwise, in which case federal priority controls. Such assistance includes, but
is not limited to, the Tennessee Promise scholarship, the Tennessee Reconnect
grant, the Tennessee HOPE scholarship, and similar state assistance, as such
assistance programs or grants may be amended, as well as Tennessee student
assistance awards, the federal Pell grant, Montgomery GI Bill benefits, Post-9/11
GI Bill benefits, and federal tuition assistance program benefits;
(8) Members eligible for federal tuition assistance must apply for and use
federal tuition assistance;
(9) A member is ineligible for tuition reimbursement pursuant to this part
if the member is suspended from receiving federal tuition assistance due to
academic performance or recoupment;
(10) Members receiving a reserve officer training corps scholarship must
exhaust the benefits of the reserve officer training corps scholarship in order to
be eligible for tuition reimbursement under this part;
(11) Members must be in good standing and currently active in the
Tennessee national guard; and
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(12) Members must submit an application for tuition reimbursement
under this part within forty-five (45) days of course completion, or term
completion for members seeking tuition reimbursement at an educational
institution, as defined in § 49-4-1003(2)(B).
SECTION 5. This act takes effect July 1, 2026, the public welfare requiring it.