Education - As introduced, enacts the "K-12 Block Grant Act," which distributes block grants to each LEA to improve the quality of education; appropriates $250 million from excess state tax revenues over collected in fiscal years 2015-2016 and 2016-2017 for K-12 block grants. - Amends TCA Title 9 and Title 49.
  • Bill History
  • Amendments
  • Video
  • Summary
  • Fiscal Note
  • Votes
  • Actions For HB0841Date
    Received from House, Passed on First Consideration05/09/2017
    Engrossed; ready for transmission to Sen.05/09/2017
    Passed H., as am., Ayes 56, Nays 30, PNV 105/09/2017
    Sponsor(s) Added.05/09/2017
    H. adopted am. (Amendment 2 - HA0641)05/09/2017
    H. adopted am. (Amendment 1 - HA0631)05/09/2017
    H. Placed on Regular Calendar 2 for 5/9/201705/09/2017
    Placed on cal. Calendar & Rules Committee for 5/8/201705/08/2017
    Rec. for pass. if am., ref. to Calendar & Rules Committee05/08/2017
    Placed on cal. Finance, Ways & Means Committee for 5/8/201705/08/2017
    Rec for pass if am by s/c ref. to Finance, Ways & Means Committee05/08/2017
    Placed on s/c cal Finance, Ways & Means Subcommittee for 5/8/201705/03/2017
    Placed on s/c cal Finance, Ways & Means Subcommittee for 5/2/201704/26/2017
    Placed behind the budget04/26/2017
    Placed on s/c cal Finance, Ways & Means Subcommittee for 4/26/201704/19/2017
    Assigned to s/c Finance, Ways & Means Subcommittee04/19/2017
    Rec. for pass; ref to Finance, Ways & Means Committee04/12/2017
    Placed on cal. Education Administration & Planning for 4/11/201704/05/2017
    Rec. for pass by s/c ref. to Education Administration & Planning04/04/2017
    Placed on s/c cal Education Administration & Planning Subcommittee for 4/4/201703/29/2017
    Action Def. in s/c Education Administration & Planning Subcommittee to 4/4/201703/28/2017
    Placed on s/c cal Education Administration & Planning Subcommittee for 3/28/201703/22/2017
    Action Def. in s/c Education Administration & Planning Subcommittee to 3/28/201703/21/2017
    Placed on s/c cal Education Administration & Planning Subcommittee for 3/21/201703/15/2017
    Sponsor(s) Added.02/15/2017
    Assigned to s/c Education Administration & Planning Subcommittee02/14/2017
    P2C, ref. to Education Administration & Planning02/13/2017
    Intro., P1C.02/09/2017
    Filed for intro.02/08/2017
    Actions For SB0831Date
    Sponsor(s) Added.04/10/2018
    Action deferred in Senate Finance, Ways & Means to first calendar of 201805/09/2017
    Placed on Senate Finance, Ways, and Means Committee calendar for 5/9/201705/08/2017
    Action deferred in Senate Finance, Ways, and Means Committee to 5/8/201705/03/2017
    Placed on Senate Finance, Ways, and Means Committee calendar for 5/3/201705/03/2017
    Action deferred in Senate Finance, Ways, and Means Committee to 5/3/201705/02/2017
    Placed on Senate Finance, Ways, and Means Committee calendar for 5/2/201705/01/2017
    Action deferred in Senate Finance, Ways, and Means Committee to 5/2/201705/01/2017
    Placed on Senate Finance, Ways, and Means Committee calendar for 5/1/201704/26/2017
    Recommended for passage, refer to Senate Finance, Ways & Means Committee04/05/2017
    Placed on Senate Education Committee calendar for 4/5/201704/04/2017
    Action deferred in Senate Education Committee to 4/5/201704/04/2017
    Placed on Senate Education Committee calendar for 4/4/201703/29/2017
    Action deferred in Senate Education Committee to 4/5/201703/29/2017
    Placed on Senate Education Committee calendar for 3/29/201703/22/2017
    Passed on Second Consideration, refer to Senate Education Committee02/13/2017
    Introduced, Passed on First Consideration02/09/2017
    Filed for introduction02/08/2017
  • AmendmentsFiscal Memos
    HA0631Amendment 1-0 to HB0841Fiscal Memo for HA0631 (8721)  
    HA0641Amendment 2-0 to HB0841 
    No amendments for SB0831.

    NOTE: Each fiscal memorandum applies only to the amendment(s) identified in the memorandum. The fiscal memorandum must be matched to any amendments that have been adopted.

  • Videos containing keyword: HB0841

  • Fiscal Summary

    Increase State Revenue - $250,000,000/FY17-18/K-12 Block Grant Fund Increase State Expenditures - $250,147,700/FY17-18/General Fund $142,200/Each Year FY18-19 through FY26-27/General Fund $25,000,000/Each FY17-18 through FY26-27/K-12 Block Grant Fund Increase Local Revenue - $25,000,000/Each Year FY17-18 through FY26-27/Local Education Agencies


    Bill Summary

    This bill requires the department of education to administer a K-12 block grant program, which grants will be supplemental to BEP funding.

    From funds available for K-12 block grants on August 1, 2017, the department will distribute grants to each LEA based on the prior year ADM of the LEA. Each LEA may use block grant funds to improve the quality of education within the LEA in a manner deemed appropriate by the local board of education. No block grant funds may be used for salaries or other recurring expenditures.

    An LEA must submit a written report, by February 1, 2018, on the use of block grant funds to the department, the state board of education, the finance, ways and means committees of the senate and the house of representatives, the education committee of the senate, the education administration and planning committee of the house of representatives, and the director of the office of legislative budget analysis.

    This bill provides, from excess state tax revenue over-collected in fiscal years 2015-2016 and 2016-2017 and deposited in the general fund, for an appropriation of $250 million for the grants.

    ON MAY 9, 2017, THE HOUSE ADOPTED AMENDMENTS #1 AND #2 AND PASSED HOUSE BILL 841, AS AMENDED.

    AMENDMENT #1 rewrites this bill to enact the Education Investment Act to create a K-12 block grant program and a trust fund to fund the program.

    This amendment establishes the education investment endowment fund as a revocable trust to be administered by the state treasurer. The following persons will serve on the trust's board of trustees:

    (1) The state treasurer;
    (2) The comptroller of the treasury;
    (3) The secretary of state;
    (4) The commissioner of education; and
    (5) The commissioner of finance and administration.

    The full text of this amendment specifies requirements for the organization of the trust and the manner in which the trust's funds must be invested.

    This amendment prohibits the principal of the trust from being expended for any purpose but allows principal to be transferred to a revenue fluctuation reserve upon recommendation of the commissioner of finance and administration in any year in which the revenue fluctuation reserve is used to meet unexpected shortfalls of revenues; provided, that any transfer must be made in accordance with an appropriations act approved by the general assembly. This amendment limits the purposes for which trust income may be expended to funding a K-12 block grant program and paying expenses incurred in administering and investing the trust assets.

    Effective January 1, 2019, this amendment requires the department of education to administer a K-12 block grant program. K-12 block grants are supplemental to BEP funding. From moneys in the education investment special reserve account available on August 1, 2019, and on each August 1 thereafter, the department will distribute grants to each LEA based on the prior year ADM of the LEA. Each LEA may use block grant funds to improve the quality of education within the LEA in a manner deemed appropriate by the local board of education and consistent with the eligible purposes identified by the department. Eligible purposes for grant funds include priority areas identified in the ESSA state plan and may include other purposes approved by the department; provided, that no block grant funds may be used for salaries or other recurring expenditures. By February 1, 2020, and on each February 1 thereafter, each LEA must report on the use of block grant funds to the department, the state board of education, the finance, ways and means committees of the senate and the house of representatives, the education committee of the senate, the education administration and planning committee of the house of representatives, and the director of the office of legislative budget analysis.

    Except as otherwise specified in this summary, this bill takes effect January 1, 2019.

    AMENDMENT #2 requires the state treasurer, by February 1, 2019, and on each February 1 thereafter, to submit a written report on all investments, reinvestments, deposits, transfers, appropriations, balances, withdrawals, expenses, allocations, distributions, and trust income generated each fiscal year in the education investment endowment fund to the education administration and planning and education committees of the house and senate.

  • FiscalNote for HB0841/SB0831 filed under HB0841

  • House Floor and Committee Votes

    HB0841 by Fitzhugh - FLOOR VOTE: AS AMENDED PASSAGE ON THIRD CONSIDERATION 5/9/2017
    Passed
              Ayes...............................................56
              Noes...............................................30
              Present and not voting...................1

              Representatives voting aye were: Akbari, Beck, Brooks H, Brooks K, Byrd, Camper, Carr, Clemmons, Coley, Cooper, Doss, Dunn, Eldridge, Faison, Farmer, Favors, Fitzhugh, Forgety, Gant, Gilmore, Goins, Hardaway, Hicks, Hill M, Hill T, Hulsey, Jernigan, Johnson, Jones, Keisling, Lollar, Love, Lynn, Marsh, Matheny, McDaniel, Miller, Mitchell, Parkinson, Powell, Ragan, Rogers, Sexton J, Shaw, Smith, Staples, Stewart, Swann, Thompson, Towns, Travis, Turner, VanHuss, White M, Whitson -- 56.
              Representatives voting no were: Alexander, Butt, Calfee, Carter, Casada, Crawford, Curcio, Daniel, Gravitt, Halford, Hawk, Holt, Kane, Kumar, Lamberth, Littleton, Matlock, Moody, Pody, Reedy, Sanderson, Sexton C, Sherrell, Sparks, Terry, Tillis, Weaver, White D, Williams, Zachary -- 30.
              Representatives present and not voting were: Madame Speaker Harwell -- 1.

              HB0841 by Fitzhugh - HOUSE FINANCE, WAYS, AND MEANS COMMITTEE:
    Rec. for pass. if am., ref. to Calendar & Rules Committee 5/8/2017
              Voice Vote - Ayes Prevail Rep(s). Carter, Hawk, Williams requested to be recorded as voting No

              HB0841 by Fitzhugh - HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE:
    Rec for pass if am by s/c ref. to Finance, Ways & Means Committee 5/8/2017
              Voice Vote - Ayes Prevail Rep(s). Hawk, Williams requested to be recorded as voting No

              HB0841 by Fitzhugh - HOUSE CALENDAR & RULES COMMITTEE:
    H. Placed on Regular Calendar 2 for 5/9/2017 5/8/2017
              Voice Vote - Ayes Prevail

              HB0841 by Fitzhugh - HOUSE EDUCATION COMMITTEE:
    Rec. for pass; ref to Finance, Ways & Means Committee 4/11/2017
              Voice Vote - Ayes Prevail Rep(s). Kane, Lollar, Matlock, Moody, Weaver requested to be recorded as voting No.

              HB0841 by Fitzhugh - HOUSE EDUCATION ADMINISTRATION SUBCOMMITTEE:
    Rec. for pass by s/c ref. to Education Administration & Planning 4/4/2017
              Voice Vote - Ayes Prevail

    Senate Floor and Committee Votes

    SB0831 by Swann - SENATE EDUCATION COMMITTEE:
    Recommended for passage, refer to Senate Finance, Ways, and Means Committee 4/5/2017
    Passed
              Ayes................................................5
              Noes................................................3
              Present and not voting...................1

              Senators voting aye were: Crowe, Dickerson, Gardenhire, Haile, Tracy -- 5.
              Senators voting no were: Gresham, Hensley, Kelsey -- 3.
              Senators present and not voting were: Tate -- 1.