SENATE BILL 321
By Massey
HOUSE BILL 498
By Wright
HB0498
001945
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AN ACT to amend Tennessee Code Annotated, Title 4;
Title 62 and Title 63, relative to state agencies.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 63, Chapter 1, Part 1, is amended by
adding the following as a new section:
63-1-177.
(a) There is created an advisory task force on state reimbursement rates to
make recommendations on annual adjustments to the reimbursement rates paid to
agencies that perform healthcare functions and services in this state, the purpose of
which is to ensure such reimbursement rates are adequate.
(b)
(1) The advisory task force consists of:
(A) Three (3) members appointed by the speaker of the house of
representatives;
(B) Three (3) members appointed by the speaker of the senate;
(C) The commissioner of labor and workforce development or the
commissioner's designee;
(D) The commissioner of mental health and substance abuse
services or the commissioner's designee;
(E) The director of TennCare or the director's designee; and
(F) The commissioner of disability and aging or the
commissioner's designee.
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(2) The members appointed under subdivisions (b)(1)(A) and (B) shall
each represent a different health-related profession.
(3) The members listed in subdivisions (b)(1)(C)-(F) serve as ex officio
non-voting members.
(4)
(A) In order to stagger the terms of the members appointed under
subdivisions (b)(1)(A) and (B):
(i) The members appointed by the speaker of the house of
representatives shall serve initial terms of three (3) years; and
(ii) The members appointed by the speaker of the senate
shall serve initial terms of four (4) years.
(B) All subsequent appointments are for six-year terms that begin
on July 1 and end on June 30 of each applicable year.
(c) The task force is attached to the department of health for administrative
purposes.
(d) The commissioner of labor and workforce development shall serve as chair
of the advisory task force, and shall call the first meeting.
(e) The members of the task force serve without compensation but must receive
reimbursement for their necessary expenses. All reimbursement for travel expenses
must be in accordance with the comprehensive travel regulations as promulgated by the
department of finance and administration and approved by the attorney general and
reporter.
(f) The advisory task force may conduct meetings by electronic or other means
of communication pursuant to § 8-44-108 for the benefit of the public and the task force
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in connection with a meeting authorized by law; provided, that a physical quorum must
be maintained at the location of the meeting where recommendations will be adopted.
(g) The task force is authorized to:
(1) Make recommendations to agencies with provider contracts to ensure
the:
(A) Salaries and benefits of essential agency staff persons are
sufficient to fund the appropriate level of care vital to this state's most
vulnerable citizens; and
(B) Administrative costs to such agencies who employ direct
support professionals are reasonable based on the services provided;
and
(2) Determine the reason for and solutions to the healthcare frontline
workforce shortage.
(h) The advisory task force shall consider:
(1) The provider agency's cost of doing business with the state and the
inherent burdens associated with state contracts;
(2) The salaries and benefits of similar professionals employed by the
state and other similar agencies;
(3) The impact of the direct support professional's employment on their
ability to receive other state and federal benefits;
(4) The cost-of-living adjustments experienced by direct support
professionals in this state;
(5) The provider agency's cost of providing benefits and administrative
support to direct support professionals; and
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(6) Any barriers to licensure or employment for direct support
professionals created by statute, administrative rules, or employment
arrangements.
(i) The task force shall make recommendations to the relevant state officials and
agencies holding provider contracts by August 1 of each year, beginning in 2026.
Additionally, the annual report must be submitted to the chair of the senate finance,
ways and means committee, the chair of the committee of the house of representatives
with jurisdiction over subject matters pertaining to finance, the chair of the senate health
and welfare committee, the chair of the committee of the house of representatives
having jurisdiction over subject matters pertaining to health, the governor, and the
commissioner of finance and administration.
SECTION 2. Tennessee Code Annotated, Section 4-29-248(a), is amended by inserting
the following as a new subdivision:
( ) Advisory task force on state reimbursement rates, created by § 63-1-177;
SECTION 3. For the purpose of appointing members to the advisory task force, this act
takes effect upon becoming a law, the public welfare requiring it. For all other purposes, this act
takes effect July 1, 2025, the public welfare requiring it.