LK Education Bulletin

School Board members concerned with the potential implications of the new School Support Organization Act (SSO Act) requested that the Tennessee Attorney General issue an opinion on whether the SSO Act creates any liability for the School Board or its members (professionally or personally), should a SSO experience a misappropriation of funds.

The Attorney General stated that as a general proposition, the SSO Act does not create liability on the part of school boards or their members when SSO funds are misappropriated. Further, a Tennessee statute specifically provides that the local board of education, director of schools, local school principal or any other school official shall not incur liability for the failure of a SSO to safeguard SSO funds.

The intent of the SSO Act was not to create liability on the part of the school board or a school board member. Rather, the intent of the Act was to place certain fiscal requirements upon the individual SSOs. The overall goal of the Act was to address concerns that parents and other persons who support these organizations have in ensuring that the money raised is safeguarded and used for its intended purposes.

The Act does place certain affirmative duties on school boards to adopt policies concerning cooperative agreements, SSOs, and other regulations. If these policies are followed, School Boards and their members should be insulated from any professional or personal liability.