Disability and Aging, Dept. Of - As enacted, directs the commissioner and the director of TennCare to develop guidelines for service providers for hiring qualified family members as a family caregiver; specifies that the department and the bureau of TennCare shall not prohibit qualified individuals from employment as a family caregiver at a service provider agency based on certain listed criteria. - Amends TCA Title 52 and Title 71.

HB 712 requires Tennessee's Department of Disability and Aging and TennCare to create and publish guidelines for hiring family members as caregivers for individuals with disabilities receiving Medicaid services. It prohibits service providers from denying employment to qualified family caregivers based on factors like family relationships, residence, age, guardianship status, or specific Medicaid waiver programs (including Katie Beckett and self-determination waivers). The bill also prevents providers from reducing benefits for individuals with disabilities solely because care is provided by a family member, unless through the person-centered planning process. This directly affects family caregivers seeking employment, disability service providers, and individuals receiving long-term care services under Tennessee's Medicaid programs.