Amends TCA Title 49.

This bill provides that If the department of education ("department") administers an education scholarship program that grants scholarships to a student in any of the grades K-12 for the primary purpose of paying for the expenses associated with the student attending a private school, then the department must ensure that an amount equivalent to the scholarship amount received by the student through such a program is disbursed to the LEA in which the student was enrolled before participating in a scholarship program, if the student meets the following criteria: (1) Was enrolled in and attended a school in the LEA for the one full school year immediately preceding the school year in which the student began participating in the scholarship program; and (2) Generated TISA funds for the LEA in which the student was enrolled in the year immediately preceding the school year in which the student began participating in the scholarship program. This bill requires the department to disburse the amount described above to the respective LEA each year in which the student who generated the initial disbursement participates in a scholarship program. If a student who generates a disbursement withdraws or is suspended from participating in a scholarship program re-enrolls in the respective LEA or enrolls in another LEA or public charter school, then disbursements to the student's former LEA terminate. Additionally, any funds that are improperly disbursed to an LEA must be returned to the department. This bill does not apply to the education savings account pilot program until the first fiscal year immediately following the third fiscal year in which the program enrolled participating students.