Legislative Update Friday, January 15, 2021

112TH TENNESSEE GENERAL ASSEMBLY GAVELS IN 2021 SESSION Legislature Swears in New Members, Assigns Committees before Organizational Period

The first half of the 112th Tennessee General Assembly commenced on Tuesday, ushering in a wave of new lawmakers, committee appointments, and the election of constitutional officers. Among an array of changes, the most notable is the revamp of the 111th House committee assignments which lowers the amount of full standing committees to 40 from 43, and blends subcommittee structures to resemble those of former House Speakers Beth Harwell of Nashville and Rep. Glen Casada, R-Franklin.

While many chairmen retained their positions through the transition, there were a number of change ups for key committees. Replacing former House member Timothy Hill of Blountville, Rep. Kevin Vaughan, R-Collierville takes over as Chairman of Commerce. Rep. John Ragan, R-Oak Ridge, replaces former Government Operations Chairman Martin Daniel of Knoxville, and Rep. Sabi Kumar, R-Springfield, replaces Rep. Robin Smith, R-Hixson, as Chairman of Insurance. Other noteworthy changes include the bifurcation of the House Judiciary Committee into the Criminal Justice and Civil Justice Committees, and of the House Education Committee into Education Administration and Education Instruction.

Senate chairmanships remain largely unchanged from last session with the exception of Sen. Brian Kelsey, R- Germantown, taking over for former Somerville senator Delores Gresham as Education Chairman, and the appointment of Sen. Richard Briggs, R-Knoxville, as Chairman of State & Local Committee. The full list of Senate and House committees for the 112th General Assembly are included with this update.

LEGISLATURE ELECTS NEW COMPTROLLER OF THE TREASURY Former Deputy Comptroller Jason Mumpower Assumes New Role

In a Joint Convention on Tuesday, Jason Mumpower was elected Tennessee’s 35th Comptroller of the Treasury by the Tennessee General Assembly. In his new role, he is responsible for leading the Office of the Comptroller of the Treasury, which comprises 12 divisions and more than 560 employees, and ensuring the Office fulfills its mission to make government work better.

Prior to his service with the Comptroller’s Office, Mumpower served in the legislature as the State Representative for Sullivan and Johnson counties. He was first elected to office at age 23 and during his 14- year tenure, he held the positions of House Majority Leader and House Minority Leader. He joined the Comptroller’s Office in December 2010, serving as former Comptroller Justin P. Wilson’s Deputy Comptroller and Chief of Staff.

Comptroller Mumpower has received numerous awards and recognitions during his career, including being named Legislator of the Year on multiple occasions by several organizations. He is also a Jason E. Mumpower, Tennessee’s 35th Comptroller of the Treasury. Source: comptroller.tn.gov

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recipient of the National Federation of Independent Businesses’ Guardian of Small Business Award and the Future Farmers of America’s Lifetime Alumni Award.

Comptroller Mumpower is a graduate of King University (née King College) with a B.A. in Economics and a minor in Political Science. In June of 2013, he graduated from Harvard University’s John F. Kennedy School of Government Senior Executives in State and Local Government program. Comptroller Mumpower is also a Rule 31 Listed General Civil Mediator.

Comptroller Mumpower is an Eagle Scout and is active in many community organizations and projects, including the Rotary Club of Bristol, TN/VA and the chambers of commerce in Kingsport, Bristol, and Johnson County, Tennessee. He currently serves as a member of King University's Board of Trustees.

Comptroller Mumpower resides in Bristol, Tennessee with his wife, Alicia, and son, Max.

LAWMAKERS APPROVE TENNCARE III DEMONSTRATION WAIVER Resolution Adopts “Block Grant” Medicaid Waiver Approved by Trump Administration

In a break from norm, the legislature hurriedly passed a resolution this week that would convert the federal share of the state’s Medicaid program into a first-of-its-kind modified “block grant,” offering TennCare officials broader management authority of the health care program while giving Tennessee an opportunity to share in potential cost-savings.

The landmark decision approved by the Trump Administration last week creates an alternative Medicaid financing structure by allotting Tennessee a federal lump sum, or “block grant,” in exchange for more flexibility in administering the program to achieve mutual cost-savings. If the state can operate the program at a lower cost than the cap and maintain or improve quality, the state then shares in the savings. This model differs from the current financing structure which automatically keeps up with rising per-person Medicaid enrollment and costs.

The negotiated agreement draws on Tennessee’s record of maintaining costs and routinely spending under the budget neutrality gap. Under the terms, TennCare will have a specified spending cap based on historical spending, inflation, and predicted future enrollment changes; however, a notable provision of the agreement is that this annual funding cap will increase if enrollment grows.

Advancing through six committees in just three days, the highly unusual course of Republican leadership to pass legislation the first week of session signaled expediency to approve the waiver request before the federal transition of power next week. At least some lawmakers believe cementing the 10-year agreement will make it more difficult for the Biden Administration to reverse the decision after his inauguration.

Opponents of the legislation, including many large health organizations, worry that incentives to cut costs could lead to shrinkages in enrollment, services, or coverage. While state officials have repeatedly insisted they have no intentions to reduce enrollment or coverage through the block grant, they did admit to new authority to stop covering some medications which could threaten access to some beneficiaries. Changes to medication coverage are expected to take months, if not more than a year, to implement.

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