1. (1) As a condition of a Private School’s accepting payments from an EFS, the Private School shall agree to:

   1. (a) Maintain the school’s status as a Category I, II, or III school in compliance with all applicable laws and State Board rules;
   2. (b) Ensure Recipients in grades three through eleven (3-11) are administered a nationally standardized achievement test that is aligned to the respective Private School’s instructional program as determined by State Board Rules 0520-07-02 or the Tennessee Comprehensive Assessment Program (“TCAP”) tests in math and English language arts for the grade in which the Recipient is enrolled, or successor tests approved by the State Board, for each year of enrollment in the Program;
   3. (c) By June 30 of each year, provide to the Recipient’s Parent and to the Office of Research and Education Accountability (OREA) in the office of the Tennessee Comptroller of the Treasury the results of the annual test administered to Recipients, using a form developed and provided by OREA. Scores may be provided to the OREA using aggregated, deidentified data if the data allows the OREA to group and analyze the results by Recipient grade level, household income level, sex, and race. Test results and other data pertaining to students who are not Recipients are not subject to the reporting requirements of this section;
   4. (d) Accept reimbursement payments for tuition and fees from an Account Holder pursuant to the payment schedule identified by the Department;
   5. (e) Receive EFS funds through a process established by the Department;
   6. (f) Use the funds in an EFS only as provided in section 0520-01-24-.07 of this rule for educational purposes;
   7. (g) Not to, in any manner, refund or rebate EFS funds or share EFS funds with an Account Holder or Recipient; and
   8. (h) Notify the Department of the Recipient’s withdrawal within five (5) business days of receipt of the Recipient’s notice of withdrawal.
2. (2) All contracts entered into between a Private School and an Account Holder or a Recipient are the responsibility of the private parties involved and do not obligate the state in any way.
3. (3) The creation of the Program does not expand the regulatory authority of the state or authorize any entity to impose additional rules, regulations, or requirements on Private Schools beyond those necessary to enforce the requirements of the Program. Private Schools enrolling Recipients with an EFS remain autonomous and independent and are not agents of the state; they maintain the maximum freedom to educate students without government control and without being required to alter their creed, practices, admission policies, hiring policies, or curriculum in order to accept EFS funds.
4. (4) The Department may suspend or terminate a Private School from participating in the Program if the Department determines the Private School has failed to comply with the requirements of the Act, these rules, or the procedures set by the Department.
5. (5) If the Department suspends or terminates a Private School’s participation, the Department shall notify the affected Recipients, the Account Holder, and the Private School of the decision. If a Private School is suspended or terminated or if a Private School withdraws from the Program, affected Recipients remain eligible to participate in the Program.

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.