Lottery, Scholarships and Programs

Plain English Breakdown

The bill summary and official digest do not provide specific details on the exact number of additional schools that will qualify under new rules, making it difficult to predict financial impacts accurately.

Lottery Scholarship Expansion

This bill allows private postsecondary institutions in Tennessee that are candidates for accreditation by a regional accrediting association to receive Tennessee HOPE scholarship funds from the state lottery.

What This Bill Does

• Expands eligibility criteria for private postsecondary institutions to include those that are candidates for accreditation by a regional accrediting association and have their primary campus domiciled in Tennessee.
• Does not change existing eligibility criteria such as being chartered as a non-profit entity or having been established for at least 100 years.

Who It Names or Affects

• Students who receive Tennessee HOPE scholarships funded by lottery proceeds
• Private postsecondary institutions in Tennessee that are candidates for regional accreditation

Terms To Know

Tennessee HOPE scholarship

A financial aid program funded by the state lottery to help students pay for college.

Regional accrediting association

An organization that evaluates and certifies educational institutions based on specific standards of quality.

Limits and Unknowns

• The bill could increase state spending if more private schools become eligible to receive lottery funds.
• It is unclear how many additional schools will qualify under the new rules, making it hard to predict exact financial impacts.

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

HOUSE BILL 777
By Reeves

SENATE BILL 1085
By Johnson

SB1085
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.