Senate approves bill to reconstitute Tennessee Education Lottery board, add audits and transparency

Senate Bill 17‑23 passed third reading in the Tennessee Senate after sponsors described changes to the Tennessee Education Lottery Corporation's board and transparency requirements. Senator Roberts said the bill “vacates and reconstitutes the Tennessee Education Lottery Corporation board of directors effective 07/01/2026” and would change appointments to a nine‑member board with three appointees from the governor, three from the House Speaker and three from the Senate Speaker.

The sponsor framed the bill as bringing the lottery into alignment with other state entities and increasing public accountability. Roberts said parts of the corporation’s records “are not subject to a public record request” under current arrangements and that the bill requires audits performed by the comptroller or a CPA be delivered to the chairs of the Senate and House finance committees. The floor record shows some colleagues expressed concern that reassigning appointment and removal authority could reduce the corporation’s operational independence.

Senator Yarborough and others warned that making board members serve “at the pleasure of” legislative leaders risks politicizing oversight and undermining fiduciary independence. Senator Roberts argued that legislative oversight is appropriate given the “billions of dollars” flowing through the corporation and that citizens currently lack a clear accountability path. The bill was declared passed (Ayes 25, Nays 5).