TN HB2177

Schools with less than $50,000 in combined internal school and student activity funds are exempted from conducting separate audits for each fund, though these funds must still be included in general school audits

Public charter schools meeting performance thresholds for three consecutive years—including 75% of performance framework indicators and "above expectations" or higher TVAAS scores with no significant audit findings—qualify as "high-performing" and receive automatic renewal approval

Charter school enrollment lottery preferences are restructured to allow each school's governing body to determine the priority order among categories including pre-K students, economically disadvantaged students, siblings, and students with articulation agreements

The Tennessee Public Charter School Commission gains authority to require LEAs to contract for special education services, alternative school placements, and eligibility assessments for commission-authorized charter schools, with the commission reimbursing actual costs

Charter school governing bodies with schools operating at least three years may apply for replication directly to the commission, with applications deemed approved if not acted upon within 90 days; most provisions take effect July 1, 2026