1. (1) The licensee holding or receiving funds or property for the service recipient as trustee or representative payee will adhere to all laws, state and federal, that govern his fiduciary position and relation to the service recipient. A licensee may not retaliate against an employee, volunteer or other individual who reports a violation of the licensee’s fiduciary obligation to the service recipient.
2. (2) The licensee shall prohibit staff, volunteers and proprietors from soliciting or borrowing money or property from service recipients.
3. (3) The licensee shall ensure that all money received, held and/or disbursed on behalf of the service recipient is for the strict, personal benefit of the service recipient.
4. (4) The licensee shall not mix funds with those of the service recipient. The licensee shall maintain a separate account in a federally insured financial institution for the deposit and/or disbursement of service recipient funds.
5. (5) The licensee shall not take funds or property of the service recipient for the licensee’s personal or organizational use or gain.
6. (6) The licensee shall maintain a written account of all monies received or disbursed on behalf of the service recipient. No less than annually, the licensee shall provide the service recipient or the service recipient’s legal representative a report of all funds held and disbursed on behalf of the service recipient.
7. (7) The licensee shall identify the source of each service recipient’s funding in the applicable service recipient’s chart. This identification shall specifically list whether the funding is public and, if so, identify the exact funding source(s) (e.g. Social Security Disability, Supplemental Nutrition Assistance Program (SNAP), Wellpoint, BlueCare, UnitedHealthcare Community Plan, TennCare Select, etc.).
8. (8) The licensee shall obtain and maintain liability insurance in the name of the organization sufficient to cover reasonably foreseeable liabilities of the agency.

Authority: T.C.A. §§ 4-4-103, 33-1-302, 33-1-305, 33-1-309, and 33-2-404. Administrative History: Original rule filed May 26, 1988; effective July 11, 1988. Amendment filed May 28, 2010; to have been effective August 26, 2010. Stay of amendment filed by the Tennessee Department of Mental Health and Substance Abuse Services on July 21, 2010; new effective date November 9, 2010. Withdrawal of amendment filed August 2, 2010. Amendment filed August 30, 2010; to have been effective January 29, 2011. Stay of amendment filed by the Tennessee Department of Mental Health and Substance Abuse Services on January 29, 2011; new effective date March 7, 2011. Withdrawal of amendment filed by the Tennessee Department of Mental Health and Substance Abuse Services on February 25, 2011. Repeal and new rules filed November 30, 2016; effective February 28, 2017. Administrative corrections made to agency names in December 2022 pursuant to Public Chapter 575 of 2012. Amendments filed February 24, 2026; effective May 25, 2026.