TennesseeSB 0714114th General Assembly (2025-2026)Senate

AN ACT to amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7 and Title 49, relative to education.

Sponsored By: Sponsor information unavailable

Signed by Governor

Education

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 3 benefits, 3 costs, 1 mixed.

School employees face new dismissal powers

In districts under oversight, the oversight board can fire any district employee, including the school director, with or without cause. Contract terms still apply, and tenured teachers and principals keep their legal due-process protections. Contract employees fired for cause lose compensation due from the termination date, including separation-only pay, unless withholding violates their contract. The board must choose a qualified replacement unless it finds the position redundant or unnecessary. A replacement school director must have a written contract lasting no more than four years.

School improvement plans and fraud reporting

Oversight boards must assess district needs each year and update improvement plans with measurable goals. Reviews cover student results, attendance, teacher qualifications and retention, class sizes, teaching materials, parent involvement, training, student needs, safety, finances, contracts, facilities, and grant opportunities. Plans must address early reading, attendance, career training, workforce credentials, student supports, and better use of state, federal, and local funding. They must also address management, financial, technology, fraud, and internal-control problems found in the review. Districts and their schools must provide requested information within 60 days; boards may hire outside reviewers. Annual progress reports go to the governor, legislative leaders, education commissioner, legislative education committees, and local funding body. Board members must report suspected crimes tied to district duties to law enforcement and the district attorney, plus the U.S. attorney when applicable. They must also notify the comptroller when suspected conduct involves public funds.

State fund supports school oversight boards

The law creates a state treasury reserve fund for school oversight boards, managed by the education department. It states lawmakers' intent to provide $500,000 to $1 million once for fiscal year 2026–2027; it does not itself guarantee that appropriation. Boards must apply and show good cause to receive money for oversight operations. Unspent money carries forward instead of returning to the general fund. The fund does not provide direct household payments.

State oversight for struggling school districts

The law creates a nine-member oversight board for Tennessee school districts meeting at least four of six triggers. The triggers are: at least 50% of students lack proficiency in math and at least 50% in English; at least 25% of schools earned D or F grades in the most recent graded year; at least 25% of students missed 10% or more of the school year; at least one school had priority status in each of the previous five years; a comptroller audit found management, accounting, internal-control, fraud, waste, abuse, or mismanagement problems; or more than two interim school directors served during the previous four years. The education commissioner must give written notice to the district, governor, and legislative speakers. Oversight starts by July 1 after notice and lasts four years. If the district still meets four triggers, nine new members replace the board for another two years. The governor appoints five county residents, the House speaker appoints one county resident and one state resident, and the Senate speaker appoints two county residents. Appointing officials fill vacancies and may remove their members; members receive the same compensation as local school board members. The governor calls the first meeting, and the board must follow open-meeting and public-records laws. The chair may create committees, and the board may hire up to three staff or reassign district staff. It sets those staff salaries, which the district pays. The act takes effect upon becoming law.

Local school leaders face state limits

Oversight boards can require or stop discretionary actions within a local school board's or school director's authority. They must find the direction necessary to improve district performance, operations, or management. This power includes decisions about policies and opening, closing, or combining schools. If the local board refuses a required action, the oversight board can act in its place. A director who refuses a required action or takes a prohibited action can be fired for cause. While oversight operates, local boards cannot bring, join, or fund lawsuits challenging oversight actions taken lawfully under this authority. This lawsuit limit does not itself prevent households or other parties from suing.

School budgets and spending need approval

Districts under oversight must submit budgets and budget changes for oversight approval before sending them for adoption. Oversight boards can veto whole budgets or individual items and require revisions. They can submit a budget themselves if the local board fails to submit or revise it; special school districts must adopt the approved budget. Covered contracts, renewals, amendments, purchases, and spending of $50,000 or more also need prior approval on board-set schedules. Budgets and spending items are deemed approved after 15 business days without a veto, denial, or request for further review. Before signing a covered contract, the local board chair must certify its submission and approval or lack of denial within that period. Missing, fraudulent, or misleading certification makes the contract unenforceable. Teacher and principal employment contracts, salaries, and benefits are excluded, but director and other employee contracts and compensation are covered. Specified contracts entered into, renewed, or amended before the law took effect are exempt from the purchase and spending restriction. The local board must report unsubmitted contracts below $50,000 on schedules set by the oversight board.

Charter schools gain stronger oversight review

Districts under oversight cannot deny specified amended charter applications, school conversions, renewals, or charter changes without oversight-board approval. Proposed denials and reasons must reach the oversight board at least 15 business days before the final-decision deadline. If the oversight board disagrees, the local board must approve the application or request. Applicants can appeal an approved denial to the Tennessee Public Charter School Commission. When a district must list vacant or underused property, the oversight board must approve the list and can add property available to charter schools. The approved list goes to the education department and comptroller with written certification from the local board chair. If the local board fails to comply, the oversight board submits and certifies the list itself. These rules limit local control but do not automatically transfer property or approve every charter application.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Janice Bowling

    Republican • Senate

  • Paul Rose

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 440 • No: 434

House vote • 4/22/2026

FLOOR VOTE: MESSAGE CALENDAR 2 MOTION TO ADOPT CONFERENCE COMMITTEE REPORT 4/22/2026

Yes: 73 • No: 19

Senate vote • 4/22/2026

FLOOR VOTE: Motion to Table Minority Conference Report Motion to Adopt Conference Committee Report 4/22/2026

Yes: 26 • No: 6

Senate vote • 4/22/2026

FLOOR VOTE: Motion to Adopt Conference Committee Report 4/22/2026

Yes: 27 • No: 6

Senate vote • 4/22/2026

FLOOR VOTE: Previous Question Motion to Adopt Conference Committee Report 4/22/2026

Yes: 27 • No: 6

House vote • 4/22/2026

FLOOR VOTE: MESSAGE CALENDAR 2 MOTION TO ADOPT MINORITY CONFERENCE COMMITTEE REPORT 4/22/2026

Yes: 13 • No: 72

House vote • 4/22/2026

FLOOR VOTE: MESSAGE CALENDAR 2 PREVIOUS QUESTION MOTION TO ADOPT CONFERENCE COMMITTEE REPORT 4/22/2026

Yes: 73 • No: 17

House vote • 4/22/2025

FLOOR VOTE: REGULAR CALENDAR MOTION TO CONSIDER AMENDMENT # 3 BY PARKINSON AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/22/2025

Yes: 25 • No: 63

House vote • 4/22/2025

FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/22/2025

Yes: 63 • No: 30

House vote • 4/22/2025

FLOOR VOTE: REGULAR CALENDAR MOTION TO CONSIDER AMENDMENT # 8 BY PARKINSON AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/22/2025

Yes: 21 • No: 71

House vote • 4/22/2025

FLOOR VOTE: REGULAR CALENDAR MOTION TO CONSIDER AMENDMENT # 6 BY PARKINSON AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/22/2025

Yes: 24 • No: 69

House vote • 4/22/2025

FLOOR VOTE: REGULAR CALENDAR MOTION TO CONSIDER AMENDMENT # 5 BY PARKINSON AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/22/2025

Yes: 24 • No: 66

Senate vote • 4/22/2025

FLOOR VOTE: as Amended Third Consideration 4/22/2025

Yes: 27 • No: 6

Senate vote • 4/16/2025

SENATE FINANCE, WAYS AND MEANS COMMITTEE

Yes: 9 • No: 2

Senate vote • 3/26/2025

SENATE EDUCATION COMMITTEE

Yes: 8 • No: 1

Bill Text

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