Emergency Medical Care Facilities, P.C. v. Division of Tenncare et al.

Article II of Tennessee’s Constitution vests legislative authority in the General Assembly. We have held, however, that the General Assembly may “grant an administrative agency the power to promulgate rules and regulations which have the effect of law in the agency’s area of operation.” Bean v. McWherter, 953 S.W.2d 197, 199 (Tenn. 1997). The General Assembly frequently has done so. But it also established important guardrails for administrative agencies by enacting the Uniform Administrative Procedures Act. One of those guardrails is the requirement that agencies engage in notice-and-comment rulemaking: a process that gives the public and other affected parties an opportunity to weigh in. Here, we consider whether a reimbursement cap imposed by TennCare is a “rule” within the meaning of the Uniform Administrative Procedures Act that should have been promulgated through the notice-and-comment process. We hold that it is and reverse the Court of Appeals’ contrary decision.