Amends TCA Title 49.

Subject to appropriation, this bill requires the state to provide funding to the department of education to develop and administer a system of grants to LEAs to supplement the funding each LEA receives for special education through the BEP. Funding received by the department pursuant to this bill will be distributed to each LEA in an amount equal to 30 percent of the funding amount the LEA receives in the same year for special education through the BEP. This bill specifies that an LEA is not required to apply to the department to receive a grant under this bill; however, in order to receive the grant in a subsequent fiscal year, an LEA must submit a report to the department, in a manner directed by the department, detailing how the LEA used the grant funds provided under this bill. This bill requires LEAs to use all grant funds received under this bill for special education purposes. An LEA will not be required to match any percentage of the grant funds provided to the LEA. Grants will not supplant any existing funding for special education, and must be made in compliance with all applicable state and federal laws.