Amends TCA Title 49, Chapter 4, Part 9.

This bill expands the definition of "eligible independent postsecondary institution" to include, for purposes of eligibility of nontraditional students for scholarships and grants funded from net proceeds of the state lottery, a private postsecondary institution with the following characteristics: (1) Has established a partnership with this state pursuant to a memorandum of understanding executed in 2013; (2) Is accredited by a regional accrediting association; (3) Utilizes a competency-based model; (4) Has established and continuously maintains a physical campus or location of operation within this state; (5) Maintains a governing body or advisory board based in Tennessee with oversight of Tennessee operations; and (6) Has been chartered in this state as a not-for-profit entity for at least five consecutive years. This bill also specifies that "semester hour" includes any credit hour used by an eligible postsecondary institution pursuant to the institution's competency-based model. This bill further specifies that for the purposes of the present law statute governing nontraditional students, the following present law provisions that reference "eligible postsecondary institution" and "semester hour" must be interpreted to include the definitions used in this bill: (1) The general definitions and eligibility requirements governing scholarships and grants funded from net proceeds of the state lottery; (2) The provisions governing continuation of HOPE scholarships and terminating events; and (3) The provisions governing medical or personal leave of absence from school.