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SB 1723

Lottery, Corporation - As introduced, vacates and reconstitutes the board of directors of the Tennessee education lottery corporation; requires certain information maintained by the corporation to be subject to a public records request; terminates the lottery corporation on June 30, 2030. - Amends TCA Title 4; Title 10 and Title 49.

114th Regular Session (2025-2026) Introduced by Kerry Roberts

SB 1723 reconstitutes and expands the TELC Board (from 7 to 9 members) with per diem reimbursement and quarterly meetings, while preserving TELC’s status as an independent state in

Signed by Senate Speaker
#corporation #lottery
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Bill Summary · SB 1723

Summary of SB 1723 (Session 114) – Tennessee

Jurisdiction

  • Tennessee General Assembly
  • Amends: Tennessee Code Annotated Titles 4, 10, and 49
  • Topic: Tennessee Education Lottery Corporation (TELC)

Purpose and Intent

  • Vacate and reconstitute the TELC Board of Directors, effective July 1, 2026.
  • Increase the size of the TELC Board from 7 to 9 members.
  • Formalize director reimbursement for per diem and travel expenses.
  • Require the TELC Board to meet at least quarterly.
  • Clarify TELC’s status as an independent instrumentality of the state, not subject to supervision or control by a department or agency, except as otherwise provided by law.
  • Change the audit reporting requirement for TELC audits to be sent to specific legislative chairs rather than broader committees.

Key Provisions and Changes

  1. Board Reconstitution and Size

    • Vacate the current TELC Board and reconstitute it starting July 1, 2026.
    • Increase Board composition from 7 to 9 directors (adding two new directors).
    • Current law states TELC directors do not receive compensation but are reimbursed for actual and reasonable expenses or a per diem up to the General Assembly level.

  2. Reimbursement and Meeting Requirements

    • TELC directors would be reimbursed for per diem and travel expenses (in addition to existing reimbursement practices for travel).
    • Board must meet quarterly at minimum.
    • This represents an expansion of director compensation practices (through per diem) and a formalized meeting schedule.

  3. TELC Autonomy

    • TELC will remain an independent instrumentality of the state.
    • TELC is not subject to supervision or control by a state department or agency, except as otherwise provided by law.

  4. Audit Reporting

    • A copy of any audit performed by the Comptroller of the Treasury (COT) or an independent certified public accountant (CPA) must be submitted to:
      • Chairs of the Finance, Ways and Means Committees of the Senate and House (instead of the prior arrangement which referenced State and Local Government committees).
    • TELC can fulfill this using existing resources; no significant new expenditure is anticipated from this change.

Who is Affected

  • Tennessee Education Lottery Corporation (TELC): Board composition, governance processes, and expense reimbursements.
  • TELC Board Directors: Eligibility for per diem and travel reimbursements; required quarterly meetings.
  • Tennessee General Assembly committees: Specifically the chairs of Finance, Ways and Means (Senate and House) who would receive audit copies.
  • State finances: Minor near-term impact due to increased per diem and travel reimbursements for two new directors and the current directors’ per diem reimbursements.

Financial Implications

  • Estimated General Fund expenditures for FY 2026-27 and subsequent years: $14,700.
  • Breakdown (approximate):
    • Two additional directors: per diem and travel reimbursements.
    • Current directors: per diem reimbursement (in addition to existing travel reimbursements).
    • Calculated totals for Board reimbursements (FY26-27 and later): roughly $14,660.
  • TELC’s audit reporting change does not require new significant expenditures.

Procedural and Timeline Highlights

  • Effective date of board changes: July 1, 2026.
  • The bill is amended to adjust the audit reporting requirement as described.
  • Current legislative action history shows the bill moving through Senate committees with amendments and fiscal notes, with scheduled readings and considerations in 2026.

What to Watch

  • Final legislative fate and any adjustments to the number of directors or compensation levels.
  • Any potential implications of TELC’s autonomy on oversight or coordination with state agencies.
  • Subsequent fiscal impact beyond initial $14,700 if per diem rates or meeting frequency change.

If you’d like, I can provide a side-by-side comparison of current law versus SB 1723’s proposed language, or a plain-language explainer of what “independent instrumentality” means in this context.

Compiled from official sources — confirm details with the bill’s official record.

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