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SB 803

Scholarships and Financial Aid - As introduced, adds an institution accredited by the National Accrediting Commission of Career Arts and Sciences (NACCAS) that has its primary campus domiciled in this state as an eligible postsecondary institution in which a student may be enrolled for purposes of receiving a Tennessee Promise scholarship; conditions the availability of the scholarship at such an institution on there being no available enrollment slots in a Tennessee college of applied technology in the student's county of residence for the student's desired program of study. - Amends TCA Title 49.

114th Regular Session (2025-2026) Introduced by Becky Massey

Expands Tennessee Promise to include eligible NACCAS-accredited Tennessee institutions, but only if no TCAT slots exist in the student’s county for the chosen program.

Failed in Senate Education Committee
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Bill Summary · SB 803

Summary of Bill: SB 803 / HB 738 (Session 114) – Tennessee Promise Expansion to NACCAS-Accredited Institutions

Purpose and Intent

  • Expands the Tennessee Promise Scholarship to include eligible students who enroll at certain nationally accredited postsecondary institutions (NACCAS-accredited) whose primary campus is in Tennessee.
  • These institutions would be eligible in addition to, and only if, there's no available enrollment capacity at a Tennessee College of Applied Technology (TCAT) in the student’s county for the desired program.

Key Provisions

Expanded Eligible Institutions

  • Adds an institution accredited by the National Accrediting Commission of Career Arts and Sciences (NACCAS) with its primary campus domiciled in Tennessee as an eligible postsecondary institution for Tennessee Promise.

Eligibility Condition (Enrollment Slots Requirement)

  • Before a student can receive a Tennessee Promise scholarship at a NACCAS-accredited institution, TSAC must first determine that there are no available enrollment slots at a TCAT in the student’s county for the student’s desired program.
  • If TCAT slots are available in the student’s county for the chosen program, the student must enroll at the TCAT to be eligible for the Tennessee Promise scholarship.

Applicable Academic Programs and Timelines

  • For TCATs and the existing Promise framework:
    • The scholarship model continues to be based on tuition and mandatory fees minus other gift aid; gift aid must first cover tuition and mandatory fees.
    • For four-year public or eligible private institutions (including qualifying NACCAS institutions), the scholarship covers the average cost at the public two-year institutions minus other gift aid (with gift aid applied first to tuition/fees).
  • Beginning with the fall semester of the 2025-2026 academic year, the bill adds eligible programs at NACCAS institutions:
    • Under current law, this provision would apply to eligible postsecondary institutions as defined in the new subdivision (b)(3)(C), which includes NACCAS institutions.

Definitions (New/Modified)

  • Adds a new subdivision defining an “eligible postsecondary institution” as an institution accredited by NACCAS with its primary Tennessee campus.

Effective Date

  • The act takes effect July 1, 2025.
  • Applies to Tennessee Promise scholarships awarded for the 2025-2026 academic year and each subsequent year.

Affected Parties

Students

  • Eligible students may receive Tennessee Promise funding if they enroll at a NACCAS-accredited Tennessee institution that has its primary campus in Tennessee, subject to the no-available-TCAT-slot requirement in their county.

Postsecondary Institutions

  • NACCAS-accredited institutions with primary campuses in Tennessee become eligible recipients of Tennessee Promise under this bill, expanding options for students.
  • TCATs remain gatekeepers: if a TCAT has available slots in the student’s program in the student’s county, TCAT enrollment is required to receive Promise funds.

Tennessee Student Assistance Corporation (TSAC)

  • Responsible for determining slot availability at TCATs before approving Promise eligibility at NACCAS institutions.

Fiscal Impact (From Fiscal Notes)

  • Total estimated increase in state expenditures for the Tennessee Promise Special Reserve Account:
    • FY 2025-2026: approximately $495,900 (base estimate for the broader NACCAS expansion; variant estimates exist if amended). FY 2026-2027 and subsequent years: over $595,100 (increasing with enrollment growth).
  • Amended fiscal analysis (for the cosmetology/barbering dual-enrollment variant):
    • FY 2025-2026: approximately $211,100
    • FY 2026-2027 and subsequent years: over $252,400
  • Assumptions cited:
    • ~27 NACCAS institutions statewide (original analysis) or ~14 in amended version.
    • Several TCATs in counties with no waitlists may limit a portion of otherwise eligible students.
    • Average TN Promise award per student cited as about $982 (three-year average).

Procedural/Timeline Highlights

  • Effective Date: July 1, 2025.
  • Applies to the 2025-2026 academic year and thereafter.
  • Legislative history indicates passage through House and Senate Education committees, with scheduling and amendments reflecting the above changes.

Summary of Impact

  • The bill broadens access to Tennessee Promise by permitting enrollment at NACCAS-accredited institutions in Tennessee, provided TCAT capacity constraints in the student’s county do not exist for the desired program.
  • Expected enrollment impact is modest-to-moderate, with additional eligible students projected in the hundreds in the early years, contingent on program capacity and applicant demand.
  • Fiscal impact is an incremental increase in state funding for Promise awards, offset by the program structure of grant aid first applying to tuition/fees.

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

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