Lottery, Scholarships and Programs - As introduced, creates two special accounts in the state treasury, the K-12 lottery capital outlay special account and the early learning program account, for excess lottery funds; requires the comptroller of the treasury to develop and administer a program to provide grants from such accounts to local education agencies to be used for capital outlay projects for K-12 educational facilities and for new or existing pre-K programs. - Amends TCA Title 4, Chapter 51; Title 8, Chapter 4; Title 9 and Title 49.

SB 840 creates two new state treasury accounts to redirect excess lottery funds: a "K-12 lottery capital outlay special account" for school building projects and an "early learning program account" for pre-K programs. Funds exceeding $250 million annually in the lottery for education account are split equally between these accounts. The comptroller will administer annual grants to local school districts based on student enrollment, requiring funds to supplement - never replace - existing education budgets for facility upgrades or pre-K operations. Unspent funds carry forward yearly, and interest on these accounts stays within the accounts.