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SB2078 • 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
Watson, Hicks G
Last action
2026-03-11
Official status
Assigned to General Subcommittee of Senate Education Committee
Effective date
Not listed

Plain English Breakdown

The candidate explanation included speculative information about what happens after the initial report is submitted, which is not covered in the official text.

Lottery Scholarship Report

This bill requires THEC to report on fiscal years since 2004 when lottery funds were insufficient for full scholarship funding.

What This Bill Does

  • Requires THEC to create a one-time report about fiscal years from 2004 through 2026 where lottery money was not enough for full scholarship and grant funding.
  • The report must list all such fiscal years, indicating whether there were pro rata reductions or draws on the general shortfall reserve subaccount.
  • THEC needs to send this report to certain committees in both houses of the Tennessee legislature by October 1, 2027.

Who It Names or Affects

  • Tennessee Higher Education Commission (THEC)
  • Senators and Representatives on education and finance committees

Terms To Know

pro rata reduction
A decrease in the amount of scholarships based on a proportional share.
general shortfall reserve subaccount
An account used to cover any shortage when lottery funds are not enough for educational programs.

Limits and Unknowns

  • The bill does not specify what happens after the initial report is submitted.
  • It's unclear if there will be future reports beyond the one-time requirement.

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

    Introduced, Passed on First Consideration

  5. 2026-02-02 Tennessee General Assembly

    Assigned to s/c Higher Education Subcommittee

  6. 2026-02-02 Tennessee General Assembly

    P2C, ref. to Education Committee

  7. 2026-01-22 Tennessee General Assembly

    Filed for introduction

  8. 2026-01-22 Tennessee General Assembly

    Intro., P1C.

  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 
HOUSE BILL 1863
By Hicks G

SENATE BILL 2078
By Watson
SB2078
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.