Tennessee Bills

SB 748 changes how Tennessee's TennCare program reimburses ambulance services. It requires TennCare to pay public or private ambulance providers in Tennessee at least 67.5% of Medicare's rate for emergency transports and 100% of Medicare's rate for non-emergency transports. This applies specifically to ambulance services with a base of operations in Tennessee that bill for covered services provided to TennCare recipients. The bill amends Tennessee law to establish these specific reimbursement rates relative to Medicare's allowable charges.

SB 334, the "Tennessee Medicaid Modernization and Access Act of 2025," requires TennCare to update reimbursement rates for key healthcare services - including obstetrics/gynecology, primary care, outpatient mental health, and substance use disorder treatment - to match either the Medicare fee schedule or average commercial rates (whichever is higher) starting in 2025. This directly affects Medicaid beneficiaries (by improving access to these services) and healthcare providers (by ensuring fairer payments). The bill mandates annual rate reviews to maintain alignment with federal guidelines and allows providers to request administrative hearings for payment disputes. It also includes provisions for quality-based incentive payments in underserved areas and requires annual reports on fiscal impacts and service access improvements.

SB 1172 creates the "African American Cultural and Historical Grant Fund" within Tennessee's state general fund to support capital projects at facilities highlighting African American contributions, culture, or history. Administered by the Tennessee Historical Commission, the fund provides grants for new facilities in culturally significant areas, renovations of existing facilities, or restoration of nationally registered historic sites. Grants prioritize projects that enhance facilities named for significant African Americans or improve the aesthetic value of cultural sites, with program expenses limited to 5% of annual funding. The Commission must submit annual reports to legislative finance committees starting in 2026, and unspent funds carry forward annually without reverting to the general fund.

SB 647 creates a $250 million medical expense relief fund to help the next of kin or estate of a person who died while enrolled in TennCare pay outstanding medical bills and related costs, including unpaid premiums and benefits. The Tennessee Department of Human Services will administer the fund, requiring applicants to submit documentation of the deceased person's medical debt and financial need. Grants may be awarded directly to families, estates, or medical providers, but must be used exclusively for the deceased's medical expenses. The fund, initially funded by a state appropriation, will carry forward any unspent balance to the next fiscal year.

SB 1236 removes Tetrahydrocannabinolic acid (THCa) and Tetrahydrocannabiphorol (THCp) from the list of authorized hemp-derived cannabinoids under Tennessee law. It amends definitions to clarify that "Total THC" calculations exclude THCa (using a conversion factor) and explicitly prohibits products containing these substances. This bill directly affects hemp product manufacturers, retailers, and distributors who would need to reformulate or remove products containing THCa or THCp to comply. The legislation also requires state testing to verify cannabinoid profiles using post-decarboxylation methods to determine legal THC limits.

SB 1394 amends Tennessee's budget documentation requirements by removing outdated references to calendar year 1977 and fiscal year 1977-1978. It updates the law to require budget documents to include only the current fiscal year and the latest completed calendar year, eliminating obsolete historical data. This procedural change affects how state budget documents are prepared and submitted, streamlining the documentation process. The bill does not alter budget amounts or policy, only updating the required historical references in budget filings.

SB 1367 exempts the retail sale of food and food ingredients from Tennessee's state sales tax, meaning consumers will no longer pay sales tax on most grocery purchases. The bill adjusts tax revenue distribution to ensure counties and municipalities receive equivalent funding that would have been generated from the food tax, while removing a prior requirement to allocate half of the food tax revenue for K-12 education. Key provisions include revising tax code sections to eliminate the food tax and update business licensing requirements tied to food sales. The exemption and related changes will take effect on July 1, 2025.

SB 1465 would exempt labor and service costs (including repair and installation) from Tennessee's sales and use tax when these charges are separately listed on a customer's invoice. This applies to businesses selling tangible personal property, such as appliances, furniture, or electronics, where labor costs are itemized separately from the product price. The bill amends tax code to remove these separately stated labor charges from the taxable base, meaning customers would no longer pay tax on such labor. The exemption would take effect on July 1, 2026, for most purposes.

SB 210 establishes separate reimbursement rates for rural and urban ambulance services under Tennessee's TennCare program. Rural ambulance providers will receive 100% of Medicare's allowable charge for services to TennCare recipients, while urban providers receive 67.5%. The bill also authorizes emergency medical services equipment grants for for-profit rural ambulance providers. It defines "rural" and "urban" areas using federal standards (per 42 CFR 414.605) to determine service locations. This directly affects ambulance service providers operating in rural versus urban areas and ensures TennCare covers their services at these adjusted rates.

SB 1474 redefines "drag racing" as "street drag racing" throughout Tennessee law and expands the offense to include reckless driving or drifting stunts on commercial properties (like shopping centers), not just public roads. It defines "drifting" as steering to lose traction for skidding, allows police to impound vehicles used in the offense or to flee, and makes reckless endangerment from street drag racing a Class E felony. The bill directly affects drivers engaging in street racing or drifting, property owners on commercial sites where such activities occur, and law enforcement handling related arrests. Key changes include requiring arrests to be taken before a magistrate (not issued a citation) and mandating vehicle impoundment for evidence collection.

SB 1475 increases penalties for aggravated cruelty to animals in Tennessee from a Class E felony to a Class D felony under Title 39, Section 39-14-212. It also adds this offense to the list of crimes that can lead to a juvenile being classified as a serious youthful offender under Title 37, Section 37-1-131. The bill directly affects individuals convicted of severe animal cruelty and juvenile offenders charged with this specific offense. Key changes include updating felony classifications in both criminal and juvenile justice codes, with the law taking effect July 1, 2026. The bill does not alter existing penalties for other animal cruelty offenses.

SB 1080 would redirect 50% of Tennessee counties' real estate transfer tax collections (previously retained by the state) to local governments starting July 2025. Counties would receive these funds to fund transportation infrastructure (requiring at least 50% of the allocation), schools, road projects, and other one-time expenses like public facilities or capital debt. The bill prohibits using these funds for salaries/benefits or replacing existing state/local funding for roads. It ensures counties cannot "supplant" current funding streams when using these tax revenues for infrastructure projects.