The Tennessee Education Lottery Scholarship (TELS) program was designed to meet the unique needs of the state of Tennessee while also incorporating the hallmark elements of existing merit-based aid programs in other states. Developed through a process involving elected officials and members of the academic community, the TELS program aims to address the following broad public policy objectives: (1) Improve academic achievement in high school through scholarship incentive (GAMS, HOPE, ASPIRE); (2) Provide financial assistance as a means of promoting access to higher education (ASPIRE, Access); (3) Retain the state's "best and brightest" students in Tennessee colleges and universities (GAMS); and (4) Enhance and promote economic and community development through workforce training (Wilder-Naifeh). The Tennessee Education Lottery began operations on January 20, 2004. Lottery proceeds fund scholarships for Tennessee students attending eligible public or private institutions and universities across the state. Initial qualification and renewal criteria for the program were set in 2003. The legislature adjusted the qualification criteria in 2005 and the renewal criteria in 2008. Additionally, the legislature added a Non-traditional Student Grant and Dual Enrollment Grant in 2005 and several smaller provisions in 2006 and 2008. Finally, lottery scholarship coverage for summer school enrollments of six credit hours or more began in summer 2012 for students who first received the scholarship in fall 2009 or after. The report contains data tables and figures relevant to the program overview, recipient demographics, scholarship renewal, college retention for scholarship non-renewals, graduation rates with TELS intact, 6 year graduation rates for TELS recipients, and longitudinal renewal, retention and graduation rates. Appended are: (1) Percentage of freshmen attending public post-secondary on a lottery scholarship, fall 2004-fall 2012; (2) Lottery scholarship receipt by scholarship program and Institution, TELS first-time freshmen and overall recipients, fall 2012; (3) Lottery scholarship receipt by gender and institution, TELS first-time freshmen and over all recipients fall 2012; (4) Lottery scholarship receipt by ethnicity and institution, TELS first-time freshmen and over recipients, fall 2012; (5) Lottery scholarship receipt by adjusted gross family income and institution, TELS first-time freshmen, fall 2012; (6) Lottery scholarship receipt by institution and qualifications met, TELS first-time freshmen, Fall 2012; Lottery scholarship receipt by institution and qualifications met, TELS first-time freshmen, fall 2012; (7) 1 year lottery scholarship renewal by institution TELS, first time freshmen, fall 2009-fall 2011; and (8) Longitudinal scholarship renewal rates and graduation rates by institution, TELS, first time freshmen, fall 2006.