SB 1723

Under present law, the Tennessee education lottery corporation is governed by a seven-member board of directors, all of whom are appointed to five-year terms by the governor, subject to confirmation by joint resolution adopted by each house of the general assembly prior to the commencement of the term of office. On July 1, 2026, this bill vacates the existing board and replaces it with a nine-member board to consist of three appointees each by the governor, the speaker of the senate, and the speaker of the house of representatives. The terms of initial appoint ees to the reconstituted board will be staggered and all subsequent appointments shall be for four-year terms. Appointments to the reconstituted board will not be subject to legislative confirmation. Under present law, the governor may remove a member for neglect of duty or misconduct in office, following notice and opportunity for a hearing. This bill makes appointees subject to removal solely at the pleasure of their appointing authority. This bill adds to present law by specifying that: (1) The board members are eligible for reelection; (2) The chair presides at all meetings and has all the powers and privileges of other directors; and (3) The board meets at least quarterly. Present law classifies as confidential all information relative to the hiring or retention of the chief executive officer or president of the lottery corporation. Under this bill, information related to the hiring, employment, retention, performance eva luation, compensation, or contractual terms of the chief executive officer or president of the corporation are public records; provided, that personally identifying information remains confidential and is subject to redaction. This bill specifies that only those records and meetings that are specifically exempted from the public records and open meetings laws are not subject to public inspection. This bill schedules the lottery corporation for governmental entity review with a termination date of June 30, 2031. ON APRIL 20, 2026, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 1723, AS AMENDED. AMENDMENT #1 requires a copy of any audit of the Tennessee education lottery corporation performed by the comptroller of the treasury or any independent certified public accountant or firm to be transmitted to the governor, the speakers of the senate and the house of representatives, the chairs of the state and local government committee of the senate and the state government committee of the house of representatives, the chair of the senate finance, ways and means committee, the chair of the committee o f the house of representatives having jurisdiction over matters pertaining to finance, the state treasurer, and the comptroller of the treasury. Present law requires an audit to be transmitted to the governor, the speaker of the senate, the speaker of the house of representatives, the chairs of the state and local government committee of the senate and the state government committee of the house of representatives, the state treasurer, and the comptroller of the treasury.