Amends TCA Title 49.

Beginning with the 2024-2025 school year and applying to each school year thereafter, this bill requires each principal of a public school or public charter school to (i) ensure that no material in the school's library collection contains sexually explicit content, regardless of the amount of sexually explicit content contained within the material and (ii) remove all material that contains sexually explicit content. Under this bill, if a school principal is notified in writing by a stakeholder of the presence of sexually explicit material in the library collection of the school, then the principal must notify the director of schools for the LEA or the director of the public charter school in writing of the principal's receipt of such notice, and the principal must review and render a decision on the material no later than five business days from the date on which the principal received the written notice from the stakeholder to confirm the presence or absence of sexually explicit content in the material. The principal must notify the stakeholder and the director of schools for the LEA or the director of the public charter school, in writing, of whether the principal confirmed the presence of sexually explicit content in the material. If the principal confirms the presence of sexually explicit content in the material, then, regardless of the amount of sexually explicit content contained within the material, the principal must remove the sexually explicit material from the school's library collection. WITHHOLDING STATE FUNDS FOR VIOLATIONS Under this bill, if the principal (i) fails to timely review the material for sexually explicit content as required; (ii) fails to notify the stakeholder and the director of schools for the LEA or the director of the public charter school, in writing, of whether the principal confirmed the presence of sexually explicit content in the material; or (iii) fails to remove sexually explicit material from the school's library collection, then the commissioner of education must withhold state funds from the LEA or public charter school, in the current or upcoming school year, in the following amounts: (1) For a first or second violation in one school year, a warning describing the reduction in funding that could result if more violations are found; (2) For a third violation committed in one school year, 2 percent of the annual state funds generated by the school in the TISA; (3) For a fourth violation committed in one school year, 4 percent of the annual state funds generated by the school in the TISA; (4) For a fifth violation committed in one school year, 6 percent of the annual state funds generated by the school in the TISA; (5) For a sixth violation committed in one school year, 8 percent of the annual state funds generated by the school in the TISA; and (6) For a seventh violation committed in one school year, 10 percent of the annual state funds generated by the school in the TISA. If funds are withheld pursuant to this bill, then the funds must be withheld until the LEA or public charter school has remedied the violation by ensuring that the school principal does the following: (1) Timely reviews the material for sexually explicit content as required under this bill, and notifies the stakeholder and the director of schools for the LEA or the director of the public charter school, the department of education, and the state textbook and instructional materials quality commission, in writing, of whether the principal confirmed the presence or absence of sexually explicit content in the material; or (2) Provides sufficient evidence, as determined by the state textbook and instructional materials quality commission, to the commission and the department of education that the sexually explicit material has been removed from the school's library collection. The percentage of any funds withheld pursuant to this bill must be calculated by the department based on the amount of state funds generated by the school in the TISA for the previous school year. If a public charter school did not generate state funds in the previous school year, then the percentage of any funds withheld pursuant to this bill must be based on the average amount of state funds generated by the schools in the LEA in which the public charter school is located. STAKEHOLDER APPEAL PROCESS Under this bill, if a stakeholder who notified a principal of the presence of sexually explicit content in material contained in the library collection of the principal's school disagrees with the principal's determination that the material does not contain sexually explicit content, then the stakeholder may appeal the determination to the state textbook and instructional materials quality commission. The commission must review the material and render a decision within 60 business days of the appeal being filed. Further, this bill requires the state textbook and instructional materials quality commission to provide notice of its determination regarding the material to the stakeholder, the principal who made the original determination, the director of schools for the LEA or the director of the public charter school, and the commissioner of education. If the state textbook and instructional materials quality commission determines that the material contains sexually explicit content, then the principal must remove the sexually explicit material. A failure to remove the sexually explicit material subjects the LEA or public charter school to the penalties under this bill. The LEA or public charter school may remedy the violation as provided for under this bill. ANNUAL REPORT This bill requires the state textbook and instructional materials quality commission to compile an annual report on the appeals the commission received pursuant to this bill. The commission must submit the report on or before July 1 of each year to the speaker of the senate, the speaker of the house of representatives, the chair of the education committee of the senate, and the chairs of the education administration and education instruction committees of the house of representatives. The report must contain the following information: (i) the district from which the appeal was received; (ii) the name of the school from where the original notification was filed; (iii) the name, author, and publisher of the book; and (iv) the current status of the review by the commission.