Amends TCA Title 4, Chapter 49 and Title 49.

This bill requires the department of education to develop a grant a program to provide supplemental funding to LEAs operating a voluntary pre-K program approved by the department. In order to qualify for a grant, an LEA must: (1) Submit a grant application for a pre-K program determined by the department to be high quality based on program management, continued or sustained improvement in the performance of participating children, the strength of the instruction or curriculum, and other measures required by the department; and (2) Submit a grant application that demonstrates the LEA's need for one or more pre-K classrooms based on the LEA's eligible student population, the number of students on the waiting list, and the ability of the LEA to staff additional classrooms. This bill encourages the department to prioritize the awarding of grants to LEAs operating a voluntary pre-kindergarten program that is located in a county designated as a distressed rural county or located in a county designated as a distressed or at-risk county by the Appalachian Regional Commission. Under present law, 80 percent of the privilege tax collected from sports wagering licensees must be deposited into the lottery for education account. This bill redirects these funds to a new account created to provide supplemental funding for voluntary pre-K programs.