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~tate of ~ennessee
PUBLIC CHAPTER NO. 144
HOUSE BILL NO. 498
By Representatives Hale, Miller, Behn, Clemmons, Lamberth, Powell
Substituted for: Senate Bill No. 321
By Senators Massey, Southerland, Oliver, Reeves
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;
(8) 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 children's services or the commissioner's
designee;
(E) The commissioner of health or the commissioner's designee;
(F) The commissioner of mental health and substance abuse
services or the commissioner's designee;
(G) The director of TennCare or the director's designee; and
(H) The commissioner of disability and aging or the
commissioner's designee.
(2) The members appointed under subdivisions (b)(1 )(A) and (8) shall
each represent a different health-related profession.
(3) The members listed in subdivisions (b)(1 )(C)-(H) 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 (8): HB498
(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 labor and workforce
development for administrative purposes.
( d) The commissioner of labor and workforce development shall call the first
meeting.
(e)
(1) The task force shall elect a chair and vice chair from among the
appointed members for a two-year term at the first meeting.
(2) The chair shall:
(A) Plan the agenda for all meetings;
(B) Appoint subcommittees, as deemed necessary;
(C) Coordinate with the department of labor and workforce
development for logistics of the meetings and posting of the required
public notice;
(D) Chair each meeting of the task force; and
(E) Be responsible for the development, production, and
submission of the yearly recommendations in the annual report, as
prescribed in subsection U).
(3) The vice chair shall fulfill the requirements and responsibilities of the
chair in the chair's absence.
(f) The members of the task force receive no compensation for their service on
the task force, nor are the members entitled to per diem or travel expenses for the
purposes of carrying out their duties under this section.
(g) The advisory task force may conduct meetings by electronic or other means
of communication pursuant to § 8-44-108, provided that the task force conducts at least
one ( 1) in person meeting per calendar year.
(h) 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
(8) Administrative costs to such agencies who employ direct
support professionals are reasonable based on the services provided;
(2) Determine the likely reason for and solutions to the healthcare
frontline workforce shortage; and
(3) Request relevant qualitative and quantitative data from impacted
industries, associations representing such industries, and state agencies.
2 HB498
(i) 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
(6) Any barriers to licensure or employment for direct support
professionals created by statute, administrative rules, or employment
arrangements.
U) The task force shall make recommendations as part of an annual report to the
relevant state officials and agencies holding provider contracts by August 1 of each year,
beginning in 2026. The annual report must also be submitted to the chair of the senate
finance, ways and means committee, the chair of the committee of the hou$e 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
3 HOUSE BILL NO. 498
PASSED: March 24, 2025
APPROVED this ~
BILL LEE, GOVERNOR
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CAMERON SEXTON, SPEAKER
HOUSE OF REPRESENTATIVES
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SPEAKER OF THE SENATE
day of l ti" I 2025