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Tennessee General Assembly· SB 1723Signed by Governor.

Lottery, Corporation - As enacted, 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 rec, the official text

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State f/JetYt&Ssee

                            PUBLIC CHAPTER NO. 1084

                                                    SENATE BILL NO. 1723

                                                    By Roberts, Gardenhire

                                           Substituted for: House Bill No. 2080

                                                     By Littleton, Bricken

AN ACT to amend Tennessee Code Annotated, Title 4; Title 10 and Title 49, relative to the
         Tennessee Education Lottery Corporation.

         WHEREAS, the General Assembly finds that the Tennessee Education Lottery Corporation
(TELC) serves a vital public purpose in supporting education programs across this State through
lottery revenues; and

          WHEREAS, the TELC's independent structure requires strong and balanced oversight to
ensure accountability, transparency, and continued public trust; and

          WHEREAS, the appointment model used by the Tennessee Sports Wagering Council,
providing for appointments by the governor, the speaker of the Senate, and the speaker of the
House of Representatives, has proven effective in maintaining both independence and
accountability; and

          WHEREAS, the General Assembly finds it is in the best interest of this State to adopt a
similar appointment structure for the TELC's board of directors to strengthen governance and public
confidence; now, therefore,

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. Tennessee Code Annotated, Section 4-51-103, is amended by deleting the
section and substituting instead:

                    (a) On July 1, 2026, the membership of the board of directors of the corporation is
          vacated and the board ceases to exist.

                    (b)(1) There is created a board of directors to govern the corporation consisting of
                    nine (9) directors, appointed as follows:

                                       (A) Three (3) directors appointed by the governor;

                                       (B) Three (3) directors appointed by the speaker of the senate; and

                                       (C) Three (3) directors appointed by the speaker of the house of
                             representatives.

                              (2) The board appointed pursuant to subdivision (b)(1) immediately assumes
                    the full authority of the board vacated pursuant to subsection (a), and all actions,
                    contracts, and obligations of the corporation remain in full force and effect. The
                    reconstituted board shall continue the operations of the corporation without
                    interruption.

                    (c) All appointments under subsection (b) must be made to ensure diversity of
          professional expertise, geography, and demographic representation consistent with the
          mission of the corporation.
SB 1723

                   (d) The term of each director begins on the date of appointment but must be
         calculated, for purposes of the term, from July 1, 2026. For purposes of staggering the terms
         of the board, each appointing authority shall appoint one (1) director to a term of four (4)
         years, one (1) director to a term of three (3) years, and one (1) director to a term of two (2)
         years.

                   (e) After the initial terms, the term of an appointed or reappointed director is four (4)
          years; provided, that, at the end of the director's term, the director shall continue to serve
          until a replacement is appointed by the appropriate appointing authority.

                   (f)(1) Each director of the board serves at the pleasure of the appointing authority and
                   may be removed with or without cause.

                             (2) If a director is removed, such vacancy must be filled in the same manner
                   as other vacancies on the board.

                   (g)(1) A vacancy on the board must be filled for the balance of the unexpired term in
                   the same manner as the original appointment.

                             (2) A vacancy in the membership of the board shall not impair the right of the
                    directors to exercise all the powers and perform all the duties of the board.

                    (h)(1) A majority of the directors in office constitutes a quorum for the transaction of
                    business and for the exercise of any power or function of the corporation.

                             (2) Action may be taken and motions and resolutions adopted by the board at
                    a board meeting by the affirmative vote of a majority of present and voting directors.

                    (i) Directors serve without compensation, but must be reimbursed for per diem and
          travel expenses in accordance with the comprehensive travel regulations as promulgated by
          the department of finance and administration and approved by the attorney general and
          reporter for each day's service spent in the performance of the duties of the corporation.

                    (j) The directors shall elect from their membership a chair and vice chair. The
          directors shall also elect a secretary and treasurer who may, from time to time, serve as the
          acting chief executive officer of the corporation. Such officers shall serve for such terms as
          are prescribed .by the bylaws of the corporation. or until their respective successors are
          elected and qualified. A director of the board shall not hold more than one (1) office of the
          corporation, except that the same director may serve as secretary and treasurer. Such
          officers are eligible for reelection. The chair shall preside at all meetings and have all the
          powers and privileges of other directors.

                    (k) The board shall meet at least quarterly, and at other times upon call of the chair or
          a majority of the directors.

                    (1)(1) A director of the board, or a member of their immediate family, shall not have a
                    direct or indirect interest at the time of their appointment, or within a period of two (2)
                    years prior to their appointment, in any undertaking that puts their personal interest in
                    conflict with that of the corporation, including, but not limited to, any interest, through
                    ownership, stock, or otherwise, in a major procurement contract or a participating
                    retailer; provided, that a director, or a member of such director's immediate family,
                    may hold an incidental interest not to exceed one percent (1 %). of the outstanding
                    ~tock of a participating retailer.

                              (2) A director shall not make a contribution to the campaign of a candidate for
                    th~ general assembly or :to a .canclid.ate for governor.

           or {m) The board of directors may delegate to one (1) or more .of its directors, to the

          chief exe~utive offfcer, to any. agent or employee of the corporation such powers and
          duties as it may' deem proper.

          SECTION 2. Tennessee Code Annotated, Section 4-51-124, is amended by deleting
subdivision (a)(9);' ·and is further amended by deleting subsections (b) and (c) and substituting:

                    (b) Information related to the hiring, employment, retention, performance evaluation,
          c.ompensation, or contractual.~ teJms of •• the chief executive officer .or president of the
          corporaticm are public records and. s·ubject to title 1.0, chapter 7; provid~d, 'that personally
          identifying information remains confidential and is subject to redaction pursuant to § 10-7-
          503(a)(5).

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SB 1723
                    (c) Notwithstanding another law to the contrary and except as provided in subsection

          (a), the corporation shall comply with all .public record and public meeting requirements
          applicable to state agencies, including, but not limited to, title 10, chapter 7, and title 8,
          chapter 44.
          SECTION 3. ,Tennessee Code Annotated, Section 4-51-129(4)(C), is amended by deleting
the subdivision and substituting:

                A copy of any audit performed by the comptroller of the treasury or any independent

          certified public accountant or firm shall be transmitted to the governor, the speaker of the
          senate, the speaker of the house of representatives, the chairs of the state and local
          government committee of the senate and the state government committee of the house of
          representatives, the chair of the senate finance, ways and means committee, the chair of the
          committee of the house of representatives having jurisdiction over matters pertaining to
          finance, the state treasurer and, _if applicable, the comptroller of the treasury;
          SECTION 4. For administrative purposes, the Tennessee Education Lottery Corporation
remains an independent instrumentality of this state and is not subject to supervision or control by a
department or agency, except as specifically provided by law.
          SECTIOf'J 5. For purposes of carrying out administrative duties necessary to effectuate this
act,.this-act takes effect upon becoming a law, the public welfare requiring it. For all other purposes,
this act takes effect July 1, 2026, the public welfare requiring it.

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         SENATE BILL NO. 1723

PASSED:  April 21, 2026

         n
                                                 RANDY l\cNALLY
                                   SPEAKER OF THE~ENATE

            c?J~

                             CAMERON SEXTON, SPEAKER
                             HOUSE OF REPRESENTATIVES

~ ~ APPROVED this ;;;;J- day of ~       2026

         ~lu_

                    BILL LEE, GOVERNOR
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