It happens everywhere to some extent, but probably not as much as people want to believe, at least in East TN. As has been stated, there are kids who will "shop around", and I've known a couple of those. To me, that's not a big deal. Recruiting does happen though. About 10 or so years ago, my coworker had a son who was a nice athlete at Volunteer. He was approached on a couple of occasions by a couple of different D-B coaches during his freshman and sophomore seasons. It was nothing terribly overt, but was more of a friendly "you should come play for us" type of thing. My coworker didn't get upset about it, but her son wanted to finish out his high school years with the kids he grew up with. I'd guess that most "recruiting" is probably like that, if you want to classify that as recruiting.
You want to see recruiting? You should come down to South Florida sometime. The "transfer" rules in Florida are extremely lax, or so I've been told. I can believe it. Down here it's the HAVES and the HAVE NOTS, and the have nots get picked apart during the off season by the haves. Just this year, our two city schools lost multiple starters. Westwood lost 4 starters to Vero Beach, including two guys who are committed to Indiana and FSU. All of those guys were impact players for Vero. They also lost a 4 star safety to IMG that is projected to go to UGA. Westwood, which is usually a solid playoff team finished the season 0-8. Central lost 5 starters and Okeechobee lost a 3 star WR/DB to another local school. Central and Okeechobee finished a combined 5-13.