Tennessee charter schools receive automatic renewal when they meet requirements

Bodies that approve charter schools must automatically renew schools that meet the requirements and submit the state board's renewal application. These rules cover Tennessee public charter schools and the bodies that approve them. Schools must meet or exceed at least 75% of the measures in each section of the school performance framework in each of the three immediately preceding school years. Schools must also earn an above-expectations or significantly-above-expectations student growth rating in each of those years and have no significant audit findings during their current charter agreement. Approving bodies must adopt renewal policies aligned with their school performance standards. They must tell every school annually whether it is on track for renewal and publish that status in their annual report. These rules took effect July 1, 2026. Approving bodies must report automatic renewal approvals to the education department and charter school commission within 10 days.

Eligible charter school operators may apply to open another school through a local school board or directly through the Tennessee public charter school commission. These applications seek to repeat an existing charter school model. The commission's decision cannot be appealed. For schools it approves, the commission serves as both the approving body and school district. The local board route requires at least one school authorized by a local board or the commission that has operated for at least three full school years. The direct commission route requires a commission-authorized school with at least three full school years of operation. The operator must apply within the same district where it already operates that school. The commission must approve or deny a completed application within 90 days of receiving it. Missing that deadline means approval. A denial must give objective reasons in writing. The operator has 30 days from receiving the denial to submit a corrected application. The commission then has 60 days from receiving it to decide; missing that deadline means approval. These application rules took effect July 1, 2026.

Charter school boards approve lottery policies that rank enrollment preferences. Charter schools may also submit student-member nominees through the Tennessee public charter school commission. Lottery rules apply when a public charter school holds an enrollment lottery. Student nominations are for an annual student-member appointment. Lottery policies must rank children in the sponsor's preschool program, students from charter schools with approved transfer agreements, siblings, and district residents who attended another public school the previous year. The policy includes a preference for economically disadvantaged students if the school uses it. Students living outside the district must receive the last preference. Student-member nominees must be high school juniors or seniors. Each local school board may nominate no more than one student, including a charter school student. Charter school boards may submit nominees to the commission, which may nominate no more than one student. Lottery rules took effect May 19, 2026, when the law was signed. Student nomination rules took effect July 1, 2026.

Schools, districts, and local funding bodies follow financial reporting and audit rules. Commission-authorized charter schools pay the commission an annual oversight fee. Local funding bodies must provide school revenue collection records when requested by a district or a charter school they fund. The commission's annual fee is capped at the lesser of 3% of a charter school's per-student state and local funding or $463,000. District and charter schools with less than $50,000 combined in internal school funds and student activity funds need no separate audit of each fund. The funds must still be audited as part of the required general school audit. Districts must submit a complete, certified budget signed by the school director and local funding body. Their annual financial report must be signed by the school director and local legislative body. Reports submitted or revised after December 1 cannot reduce per-student funding for charter schools within the district. Districts cannot receive state funds if they have not provided all required records and reports for the current or preceding school year. District records and reports sent to the education commissioner must be available to the state comptroller on request. These rules took effect July 1, 2026. District budgets are due within 30 days after each fiscal year begins. Annual financial reports are due on or before October 1 for the school year ending the preceding June 30. District audit reports are due within 10 days of receipt.

The Tennessee public charter school commission may require a district to contract with it to provide certain services for commission-authorized charter schools. The charter school must be authorized by the commission and located within the district's boundaries. Contracts may cover special education services and placements, alternative schools, and assessments for special education eligibility. Services must follow the laws and rules governing them. The district does not have to develop services to enter the contract. The contract must set the service terms, and the commission must repay the district's actual cost. This contract authority took effect July 1, 2026.