Senate Bill 1936 establishes a regulatory framework for prescribed pediatric extended care centers in Tennessee, introducing a new part to the Tennessee Code Annotated that defines essential terms such as "basic services," "medically dependent or technologically dependent minor," and "center." The bill requires individuals wishing to own or operate these centers to obtain a license, which involves meeting specific application requirements, including financial viability documentation and background checks for key personnel. It outlines the licensing process, including initial and renewal applications, fees, and conditions for license denial, suspension, or revocation. Operational standards are also set, limiting care to a maximum of twelve hours within a twenty-four-hour period and capping patient capacity at sixty minors.

Furthermore, the bill emphasizes parental involvement in the care of minors and prohibits the department from interfering with parental authority, except in cases where it may limit authorized services. It mandates the creation of rules for minimum operational standards, including licensing, service provision, building conditions, personnel qualifications, sanitary conditions, and record maintenance. Additionally, the bill includes provisions for coverage and benefits for enrollees at these centers, contingent upon federal approval, and requires the director to seek necessary federal waivers by December 31, 2026. The act will take effect upon becoming law for rule promulgation purposes, with other provisions effective starting January 1, 2027.