Amends TCA Title 4, Chapter 49; Title 37, Chapter 5, Part 5; Title 49 and Title 71, Chapter 3.

PROMISING FUTURES PROGRAM<br /> <br /> This bill requires the department of education to create and, by July 1, 2024, implement the promising futures program to provide scholarships to assist parents and legal guardians of children who are not school age to develop early language and literacy skills in high-quality early care and learning programs. This bill requires the department to do the following: <br /> <br /> (1) Appoint, by July 1, 2023, an advisory group that makes recommendations to the department on the implementation of the promising futures program, including, but not limited to, recommending qualifications to be considered a high-quality early care and learning program.<br /> <br /> (2) Establish procedures to determine a child's eligibility to receive a scholarship; <br /> <br /> (3) Establish an income verification process for purposes of determining if the child is a member of a household with an annual income that does not exceed the state median income; <br /> <br /> (4) Verify the amount of a promising futures scholarship awarded to a child does not exceed the cost of tuition and mandatory fees charged to all children attending the high-quality early care and learning program less all other available financial aid, which must be credited first to tuition and fees; <br /> <br /> (5) Pay scholarship funds directly to the high-quality early care and learning program in which the child who received the scholarship is enrolled; <br /> <br /> (6) Determine scholarship amounts by implementing a sliding fee scale for parent co-payments; <br /> <br /> (7) Conduct a cost study to determine the cost of quality child care considering a child's age, the type of early learning setting, and the county of residence; <br /> <br /> (8) Implement a lottery process if the department receives more applications for children who meet the eligibility requirements than the amount of scholarships for which funding is available in the promising futures account; <br /> <br /> (9) Ensure that each child who receives a scholarship continues to meet the requirements of eligibility; <br /> <br /> (10) Review and consider the recommendations made by the advisory group; develop the qualifications for a high-quality early care and learning program based upon the department's review and consideration of the recommendations; and ensure that high-quality early care and learning programs that provide care to children who are recipients of a promising futures scholarship continue to meet the qualifications; <br /> <br /> (11) Use leading edge technology solutions to establish a best-in-class web portal to help families search for high-quality early care and learning programs, apply for a promising futures scholarship, and apply for other financial aid the department deems necessary to include in an easily navigable web portal; <br /> <br /> (12) Use best practice outreach programs to notify families who may be eligible to receive a promising futures scholarship; <br /> <br /> (13) Establish the number of days a child who receives a scholarship must attend a high-quality early care and learning program; and <br /> <br /> (14) Ensure that each child who receives a scholarship attends a high-quality early care and learning program for the number of days established by (13). <br /> <br /> This bill prohibits the amount of a promising futures scholarship from exceeding the lesser of the following:<br /> <br /> (A) The cost of tuition and mandatory fees charged by the high-quality early care and learning program, less any other available financial aid or parent co-pay, which must be credited first to the child's tuition and mandatory fees; or<br /> <br /> (B) $4,500 per child each year.<br /> <br /> ELIGIBILITY FOR SCHOLARSHIP<br /> <br /> This bill provides that to be eligible to receive a promising futures scholarship, a parent's or legal guardian's child must meet the following criteria: <br /> <br /> (1) Be no less than six weeks of age and not eligible to attend a public school due to being under the age of five; <br /> <br /> (2) Be a member of a household with an annual income for the previous year that does not exceed the state median income; or reside with a foster parent or an adoptive parent;<br /> <br /> (3) Reside with a parent or legal guardian who is employed and works for more than 30 hours per week or who is enrolled in and attending an eligible school or training program approved by the department; <br /> <br /> (4) Be accepted to a high-quality early care and learning program; and <br /> <br /> (5) Be a citizen of this state. <br /> <br /> PROMISING FUTURES ACCOUNT<br /> <br /> This bill creates within the state treasury a "promising futures account." Amounts remaining in the account at the end of each fiscal year must not revert to the general fund. Money in the account must be invested by the state treasurer pursuant to law for the sole benefit of the account. All earnings attributable to such investments must be credited to the promising futures account.<br /> <br /> FUNDING FOR PROMISING FUTURES ACCOUNT<br /> <br /> Under present law, 80 percent of the privilege tax collected under the Tennessee Sports Gaming Act must be distributed by the sports wagering advisory council to the state treasurer for deposit into the lottery for education account. This bill deletes this provision and provides, instead, the following:<br /> <br /> (1) For fiscal year 2023-2024, 60 percent of the privilege tax collected must be distributed by the council to the state treasurer for deposit into the promising futures account; and 20 percent of the privilege tax collected must be distributed by the council to the state treasurer for deposit into the lottery for education account;<br /> <br /> (2) For fiscal year 2024-2025, 70 percent of the privilege tax collected must be distributed by the council to the state treasurer for deposit into the promising futures account; and 10 percent of the privilege tax collected must be distributed by the council to the state treasurer for deposit into the lottery for education account; and<br /> <br /> (3) For fiscal year 2025-2026 and each fiscal year after, 80 percent of the privilege tax collected must be distributed by the council to the state treasurer for deposit into the promising futures account.<br /> <br /> SUPSENSION OR TERMINATION OF PARTICIPATION<br /> <br /> The department is authorized to suspend or terminate a parent's or legal guardian's participation in the program if the department determines that the parent or legal guardian fails to comply with any of the provided provisions. If a high-quality early care and learning program knowingly uses promising futures scholarship funds with the intent to defraud the promising futures program, then the department is authorized to refer the matter to the appropriate enforcement authority for criminal prosecution.<br />