SB 2512

This bill levies a data transaction privilege tax on a person's assessable base , which this bill defines to mean the annual gross revenues derived from data transactions from digital advertising services in this state . The tax rate is 9.5% of the assessable base and applies only to persons with an assessable base of $50,000,000 or more. The full text of this bill describes an apportionment factor that will be used to calculate the tax, the schedule for reporting and paying the tax, and penalties for nonpayment. This bill allocates the proceeds of the data transaction privilege tax to a special account in the state treasury to be known as the universal pre-K fund. The fund must be administered by the department and used exclusively to fund, establish, and maintain a universal pre-kindergarten program in each public and public charter elementary school in Tennessee. F ive-tenths percent of the revenue from the data transaction privilege tax m ust be paid into the state treasury and earmarked and allocated to the de partment of revenue for the administration and enforcement of the tax . The provisions of this bill related to the data transaction privilege tax take effect January 1, 2027, except for rulemaking authorization necessary to implement the tax, which takes effect upon becoming a law. Present law authorizes LEAs to implement pre-k programs and authorizes a program in which LEAs can apply for state funding to establish pre-K for at-risk children. This bill makes the implementation of pre-K mandatory for all LEAs beginning in the 2027-2 028 school year. This bill requires LEAs to use a lottery system to enroll pre-K students if the number of applicants for pre-K exceeds availability. This bill specifies various requirements for pre-K classrooms, such as a maximum class size of 20 students, having at least one licensed teacher per classroom who is certified in early childhood education , having at least one e ducational assistant per classroom , p rovide at least 5. 5 hours of quality instructional time per day , and other requirements specified in the full tex t of this bill. An LEA may contract and enter into collaborative agreements for the operation of a pre-kindergarten program with non-school system entities in the geographical area served by the LEA, including, but not limited to, nonprofit and for-profit child care prov iders and Head Start programs. An LEA shall not contract or collaborate with a child care provider licensed by the department of human services, unless the provider has attained the highest designation under the rated licensing system administered by the department, pursuant to title 71, chapter 3, part 5. This bill deletes the requirement that LEAs applying for funding of a pre-K program create a community pre-K advisory council. Subject to appropriations, this bill requires the state to fund 100% of the costs required for an LEA to provide the number of classrooms, and to employ the number of licensed teachers and educational assistants, required for the LEA to provide a pre-K program . Subject to appropriations, the commissioner of education shall allocate to each LEA an amount sufficient for the LEA to serve all eligible children in the LEA's pre-kindergarten program. I f an LEA receives an allocation for pre-K that is less than the allocation the LEA received for the prior school year, then the local government may appropriate and allocate funds to the LEA to make up for the state cuts without being subject to a continuation of funding effort requirement as to those funds for any year during which the state reinstates the funding or restores the previous cuts, and during any subsequent year should the state fail to restore the funding cuts. This bill prohibits LEAs from charging tuition for pre-K for eligible children; however, an LEA may charge fees for child care provided outside the instructional day of the LEA's pre-kindergarten program. This bill modifies and eliminated certain duties of the office of early learning in the department of education to reflect that pre-K will be required statewide.