Amends TCA Title 33 and Title 71.

This bill requires the bureau of TennCare to submit, no later than December 31, 2023, to the federal centers for medicare and medicaid services an application for a research and demonstration waiver under Section 1115 of the federal Social Security Act to provide housing solutions for Tennesseans in need of mental health services, subject to appropriation by the general assembly and the terms and conditions imposed by the waiver. This bill requires the director of TennCare to ensure that the submitted waiver application includes the requirement that TennCare provide the following: (1) Rent or temporary housing for up to six months for individuals with mental health disabilities or disorders, or who are experiencing other mental health challenges and who are (i) transitioning out of institutional care or congregate settings, including, but not limited to, nursing facilities, large group homes, congregate residential settings, institutions for mental diseases, correctional facilities, and acute care hospitals; (ii) homeless, at risk of homelessness, or transitioning out of an emergency shelter; or (iii) youth transitioning out of the child welfare system, including foster care; and (2) Traditional respite services, day habilitation programs and sobering centers, pre-tenancy and tenancy sustaining services, housing transition navigation services, and one-time transition and moving costs.