Tennessee Code Title 49. Education § 49-3-106

(a) Subject to available appropriations, the department shall allocate student-generated outcome incentive dollars to an LEA based on the achievement of member students in the LEA's public schools.

(b) An LEA may receive student-generated outcome incentive dollars if the member students in the LEA's public schools achieve the outcome goals established by the department. The department shall establish outcome goals by rule in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. Before the department begins the rulemaking process, the department shall submit the proposed outcome goals to the state board. The state board shall issue a positive, neutral, or negative recommendation for the proposed outcome goals. The state board's recommendation for the proposed outcome goals must be included in the filing of the rule with the office of the secretary of state.

(c) The department shall allocate available appropriations for student-generated outcome incentive dollars to LEAs in direct proportion to the number of outcome incentive dollars generated by students who are members in each of the LEA's public schools, relative to the total number of outcome incentive dollars generated by all Tennessee public school students.

(d) Funding allocations made pursuant to subsections (a)-(c) are based on the data collected for the LEA during the immediately preceding school year.

(e) Funds allocated pursuant to this part that remain unexpended at the end of a fiscal year shall not revert to the general fund but must be used to supplement future allocations of outcome incentive dollars pursuant to this section.

(f) The commissioner shall convene a group of individuals with relevant experience or expertise to advise the commissioner regarding outcome incentive dollars and outcome goals. The group must consist of: