1. (1) A Recipient’s EFS account remains open, and all available EFS funds remain in the Recipient’s EFS account, from one (1) school year to another unless one (1) or more of the events described in subparagraphs (2)(a) through (f) occurs.

2. (2) A Recipient’s EFS account shall be closed, and all remaining EFS funds returned to the state treasurer to be used to award EFS to Eligible Students in future years, upon the earlier of:

   1. (a) The Recipient’s graduation from high school or obtainment of a high school equivalency credential approved by the State Board;
   2. (b) The Recipient’s enrollment in a Kindergarten through grade twelve (K-12) Public School;
   3. (c) The Recipient’s completion of thirteen (13) school years as a Kindergarten through grade twelve (K-12) student;
   4. (d) The Recipient’s voluntary withdrawal from the EFS Program;
   5. (e) The Department disqualifying the Recipient from participating in the Program due to the Recipient’s noncompliance with Program requirements. This includes, but is not limited to, the Recipient enrolling in a school that is not a Private School; a Recipient enrolling as an independent home school student; or the misuse or fraudulent use of funds; or
   6. (f) The Recipient ceases to be a resident of the state of Tennessee.
3. (3) An Account Holder who chooses to voluntarily withdraw from the Program at any time shall complete the procedures for withdrawal from the Program as set by the Department.
4. (4) An Account Holder may transfer the Recipient from one Private School to another Private School in accordance with procedures set by the Department.
5. (5) If an Account Holder does not follow the applicable procedures for voluntary withdrawal or transferring the student from one Private School to another Private School, the Department may remove the Recipient from the Program, return any funding in the Recipient’s EFS account to the state treasurer, and prohibit the Recipient from participating in the Program in the future.
6. (6) In order for a Recipient to continue in the Program, the Account Holder shall annually apply to renew the EFS by following the procedures developed by the Department and posted on the Department’s website.
7. (7) The Department shall provide the Account Holder with a written explanation of the allowable uses of EFS funds and the responsibilities of the Account Holder in connection with the EFS funds. The Department shall also provide to the Parent of Recipients or Recipients who have reached the age of eighteen (18) a written explanation of the Department’s duties regarding EFS funds, Eligible Students, and Recipients.

Authority: T.C.A. §§ 49-1-302 and 49-6-3501, et seq. Administrative History: Emergency rules filed March 21, 2025; effective through September 17, 2025. New rules filed June 20, 2025; effective September 18, 2025.