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PUBLIC CHAPTER NO. 960
HOUSE BILL NO. 1816
By Representatives Williams, Lamberth, Hawk, Powers
Substituted for: Senate Bill No. 2533
By Senators Haile, Massey, Reeves, Yager
AN ACT to amend Tennessee Code Annotated, Title 33; Title 38 and Title 41, relative to
mental health.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 33-11-103, is amended by adding the
following as new subsections:
(t) Notwithstanding another law to the contrary, the council shall allocate funds
held in the opioid abatement fund as follows:
(1) From amounts that are not required to be disbursed to the counties
pursuant to subsection (p), it is the legislative intent that the council shall
allocate:
(A) Twelve million three hundred thousand dollars ($12,300,000)
to the bureau of TennCare to be distributed in the amount of four million
one hundred thousand dollars ($4,100,000) per year in fiscal years 2026-
2027, 2027-2028, and 2028-2029 for the purpose of supplementing the
per member per month adult mobile crisis payments paid to the nonprofit
community behavioral health provider contracted entities that provide
mobile crisis services across this state for TennCare enrollees. It is the
legislative intent that the bureau of TennCare will consult with the
Tennessee Association of Mental Health Organizations on the formula to
be utilized in the distribution of funding pursuant to this subdivision
(t)(1 )(A); and
(8) Twenty-five million dollars ($25,000,000) to the department of
mental health and substance abuse services in fiscal year 2026-2027 for
the purpose of funding crisis, residential, and inpatient treatment services
for uninsured individuals with co-occurring mental health and substance
use disorders. Funds must be used to expand access, capacity, and
stabilization services for such population; and
(2) For amounts paid into the opioid abatement fund on or after July 1,
2026, and not allocated pursuant to subdivision (t)(1 }, ten percent (10%) of the
funds available to the council after accounting for proceeds required to be
disbursed to the counties pursuant to subsection (p) must be allocated to the
department of mental health and substance abuse services for deposit into a
separate account within the opioid abatement fund. Amounts in this account must
be used exclusively for the purposes set forth in subdivision (t)(1 )(8), including
crisis, residential, and inpatient treatment services for uninsured individuals with
co-occurring mental health and substance use disorders. Disbursements to this
account must be made at the time county disbursements are made pursuant to
subsection (p).
(u) Funds allocated pursuant to subsection (t) must supplement and not supplant
existing state appropriations for behavioral health and substance use disorder services.
HB1816
(v) The allocations made pursuant to subsection (t) must not reduce, offset, or
otherwise affect the distribution of proceeds to counties or municipalities from opioid
settlements.
SECTION 2. This act takes effect July 1, 2026, the public welfare requiring it.
2
HOUSE BILL NO. 1816
PASSED: April 23, 2026
CAMERON SEXTON, SPEAKER
HOUSE OF REPRESENTATIVES
RANDY MCNALL
SPEAKER OF THE SENAT
9 ~ APPROVED this ft. day of 2026
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