SB 321

This bill creates an advisory task force on state reimbursement rates, attached to the department of health for administrative purposes, to make recommendations on annual adjustmen ts 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. The advisory task force consists of the following members:  Three members appointed by the speaker of the house of representatives;  Three members appointed by the speaker of the senate;  The commissioner of labor and workforce development or the commissioner's designee;  The commissioner of mental health and substance abuse services or the commissioner's designee;  The director of TennCare or the director's designee; and  The commissioner of disability and aging or the commissioner's designee. This bill provides that (i) the members appointed by the two speakers must each represen t a different health-related profession, (ii) the rest of the members serve as ex officio non-voting members, (iii) initial terms must be staggered, and (iv) all subsequent appointments are for six-year terms. COMPENSATION AND TRAVEL EXPENSES This bill provides that 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 th e department of finance and administration and approved by the attorney general. MEETINGS The commissioner of labor and workforce development serves as chair and must call the first meeting. The advisory task force may conduct meetings by electronic or other means of communication for the benefit of the public and the task force in connection with a meeting authorized by law as long as a physical quorum is maintained at the location of the meeting where recommendations will be adopted. TASKFORCE DUTIES This bill authorizes the task force to determine the reason for, and solutions to, the healthcare frontline workforce shortage and to make recommendations to agencies with provider contracts to ensure the (i) 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 (ii) administrative costs to such agencies who employ direct support professionals are reasonable based on the services provided. This bill requires the advisory task force to consider all of the following:  The provider agency's cost of doing business with the state and the inherent burdens associated with state contracts.  The salaries and benefits of similar professionals employed by the state and other similar agencies.  The impact of the direct support professional's employment on their ability to receive other state and federal benefits.  The cost-of-living adjustments experienced by direct support professionals in this state.  The provider agency's cost of providing benefits and administrative support to direct support professionals.  Any barriers to licensure or employment for direct support professionals created by statute, administrative rules, or employment arrangements. This b ill requires the task force to 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 legislative committees with juri s diction over finance and health-related matters, the governor, and the commissioner of finance and administration. SUNSET REVIEW This bill provides that the task force terminates on June 30, 2027, for purposes of the Tennessee Governmental Entity Review Law. ON MARCH 24, 2025, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 4198, AS AMENDED. AMENDMENT #1 makes the following revisions:  Adds as members to the advisory task force (i) the commissioner of children's services or the commissioner's designee and (ii) the commissioner of health or the commissioner's designee.  Attaches the task force to the department of labor and workforce and development, instead of the department of health, for administrative purposes.  Requires the task force to elect a chair and vice chair for a two-year term at the first meeting, instead of having the commissioner of labor and workforce development serve as chair.  Requires the chair to (i) p lan the agenda for all meetings; (ii) appoint subcommittees, as deemed necessary; (iii) coordinate with the department of labor and workforce development for logistics of the meetings and posting of the required public notice; (iv) chair each meeting of the task force; and (v) be responsible for the development, production, and submission of the yearly recommendations in the annual report, as prescribed in this amendment.  Requires the vice chair to fulfill the requirements and responsibilities of the chair in the chair's absence.  Provides that 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 amendment.  Revises the provision authorizing the task force to conduct meetings by electronic or other means of communication authorized by law as long as a physical quorum is maintained at the location of the meeting where recommendations will be adopted to, instead, authorize the task force to conduct meetings by electronic or other means of communication authorized by law as long as the task force conducts at least one in-person meeting per calendar year.  Revises the provision authorizing the task force to determine the reason for and solutions to the healthcare frontline workforce shortage to, instead, only determine the likely reason for such shortage.  Authorizes the task force to r equest relevant qualitative and quantitative data from impacted industries, associations representing such industries, and state agencies.  Requires the task force to make recommendations as part of an annual report as described in this amendment.