HB 2095

This bill adds a requirement that TSAC promulgate rules to establish criteria for the restriction or suspension of an eligible postsecondary institution's participation in this state's financial aid programs for noncompliance with applicable statutory or regulatory requirements. Present law establishes the Tennessee student assistance program. Generally, the program provides nonrepayable financial assistance, from funds appropriated for that purpose, directly to needy undergraduate students who: (1) Are Tennessee residents; (2) Are enrolled in an eligible program of study at an institution of postsecondary education in this state that is either: (A) A public college or university; (B) A public vocational or technical institute; (C) A nonprofit institution of higher education in this state as defined under regulations promulgated by TSAC; or (D) Are enrolled in a private business, trade, or technical school that is located in this state, accredited by a regional accrediting association, the Council on Occupational Education, or the Accrediting Commission of Career Schools and Colleges, and authorized to operate by the THEC pursuant to the Tennessee Higher Education Authorization Act of 2016. A school that, on July 1, 2016, was accredited by the Accrediting Council for Independent Colleges and Schools and whose students received an award re ma in eligible for the Tennessee student assistance award; provided, that the school receives accreditation by an accrediting agency recognized by the United States department of education, remains accredited by such an accrediting agency, and is authorized to operate by the THEC; (3) Have complied with other applicable general requirements for receipt of financial aid; and (4) Are not incarcerated. This bill revises the eligible postsecondary institutions to include: (1) An institution in the state university and community college system, or an institution in the University of Tennessee system; (2) An eligible independent postsecondary institution, as defined by present law concerning lottery-funded financial aid; or (3) A postsecondary institution that was eligible for awards and whose students received such awards in the academic year beginning July 1, 2025, and that remains accredited by an accrediting agency recognized by the United States department of educatio n. This bill adds a requirement that, before paying out the awards, TSAC first determine that an eligible postsecondary institution complied with state statutory and regulatory financial aid requirements, including any requirements stipulated to in a TSAC c ompliance review. Present law requires that the awards be based on the financial need of the student as measured by the parents' ability, or the student's ability if the student is emancipated and not receiving any financial assistance from the student's parents or guardi an, to contribute to the student's educational expenses. This bill bases the award on the student's financial need. This bill defines "financial need"" to mean having a valid student aid index (SAI) on a student's FAFSA that is at or under the eligible S AI established by THEC's executive director. This bill removes the present law limitation on the number of academic year equivalents that a student who is satisfactorily completing their academic work may receive an award. Present law authorizes TSAC to revoke an award to a student who fails to comply with the rules of TSAC with respect to the use of such assistance, fails to attain the minimum level of achievement prescribed for the retention of the assistance, fails to o bserve the rules, regulations or conditions prescribed or imposed by the institution attended on students, or for any reason is expelled or suspended from the institution attended or is absent without leave. This bill instead authorizes TSAC to revoke th e reward of a recipient who falsifies information on the application. This bill removes the October 1 deadline for THEC's annual report on scholarship programs. Present law generally authorizes a student who receives a Tennessee Hope scholarship to continue to receive the award until: (1) The student earns an advanced degree; or (2) Five years have passed from the date of the student's initial enrollment at any postsecondary institution. This bill adds that scholarship eligibility ends when the student earns a bachelor's degree unless the student maintains continuous enrollment toward an advanced degree. Present law caps the number of years that a student may receive the foster child tuition grant at six. This bill specifies that the terminating events for a Tennessee Hope scholarship will apply to the foster child tuition grant. This bill removes the March 1 deadline for the annual report regarding state workforce need projections and credential production. This bill deletes a requirement that public institutions of higher education develop an annual source reduction, recycling and waste management plan consistent with the state solid waste plan. Present law requires THEC to require all state institutions of higher education to collaborate and develop a transfer pathway for at least the 50 undergraduate majors for which the demand from students is the highest and in those fields of study for whic h the development of a transfer pathway is feasible based on the nature of the field of study. This bill separates non-technical associate degree pathways from technical transfer pathways. The non-technical associate degree pathways will continue to ope ra te the same as under present law. The technical transfer pathways will: (1) Consist of approved coursework from a certificate, diploma, or associate of applied science program; (2) Include coursework that is transferrable to an associate or bachelor's degree at a participating institution; and (3) Include credit or clock hours in the pathway that are determined by the degree, as prescribed by THEC. This bill adds a requirement that all new or existing technical transfer pathways be reviewed on a rotating basis at least once every five years. Present law requires that THEC's meetings be made available for viewing by the public over the internet by streaming and archived video. This bill specifies that THEC may conduct private meetings to discuss or deliberate on matters related to senior adm inistration, personnel positions, and contracts; provided, that the commission shall not take action on matters related to senior administration, personnel positions, and contracts in a private meeting. This bill removes the May 1 deadline for publication of THEC's annual Tennessee Postsecondary Education Fact Book. This bill authorizes THEC to designate public and private nonprofit institutions of higher education as transfer designation institutions that prioritize the success of students with transfer credit. This bill specifies that education offered to an apprentice through a registered apprenticeship program approved by the department of labor and workforce development by or on behalf of a sponsor or employer associated with the registered apprenticeship p rogram number is exempt from regulatory oversight by THEC under the Tennessee Higher Education Authorization Act of 2016. This bill deletes the requirement that public institutions of higher education operating hearing centers submit an annual report to THEC. This bill removes several obsolete provisions of law and makes some technical clarifications related to financial aid. ON MARCH 2, 2026, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 2141, AS AMENDED. AMENDMENT #1 sp ecifies a Tennessee HOPE foster child tuition grant recipient will continue to be eligible for the grant for six years; provided that the recipient's eligibility will end upon attainment of a bachelor's degree unless the student maintains continuous enrollment toward an advanced degree . This amendment also limits the subject for which THEC is authorized to conduct private meetings to matters related to personnel or contracts; provided, that the commission shall not take action on matters related to personnel or contracts in a private meeting."