RELATING TO COMMUNITY BEHAVIORAL HEALTH CLINICS.

SB3274

THE SENATE

S.B. NO.

3274

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to community behavioral health clinics
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION 1.
�
The Hawaii Revised Statutes is amended by
adding a new chapter to title 19 to be appropriately designated and to read as
follows:

"
Chapter

certified community behavioral health clinics

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� -1
�
Purpose.
�

The purpose of this chapter is to establish a community behavioral
health clinic certifying office to certify community behavioral health clinics
and provide technical assistance for clinics seeking certification under
federal guidelines to promote consistency and accessibility for all people of
the State to mental health and substance use services.

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� -2
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Definitions.
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As used in this chapter, unless the context
otherwise requires:

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"Board" means the
certified community behavioral health clinics oversight board.

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"Certified community behavioral
health clinic" means a behavioral health clinic that has been certified by
the community behavioral health clinic certifying office.

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"Office" means the
community behavioral health clinic certifying office.

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"Person" means one or more
individuals, a company, corporation, partnership, association, or any other
type of legal entity.

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"Prospective payment
system" means a payment methodology that establishes a fixed rate for
services provided by a certified community behavioral health clinic.

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� -3
�
Establishment of the community behavioral
health clinics certifying office; staff; duties.
�
(a)
�

There is established a community behavioral health certifying office
within the department of health for administrative purposes only.
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The office shall be headed by an executive
director, who shall be appointed by the board and shall be exempt from chapter
76.
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The executive director shall have
experience in health care administration and behavioral health.

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(b)
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At a minimum, the staff of the office shall consist of:

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(1)
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One full-time
quality manager;

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(2)
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One full-time
financial analyst;

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(3)
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One full-time
administrative assistant to the executive director;

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(4)
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One full-time
evaluator; and

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(5)
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One full-time data
engineer;

provided that the staff listed in this subsection shall
be exempt from chapter 76 and shall serve at the pleasure of the executive
director of the office.

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(c)
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The office shall have the following powers and duties:

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(1)
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Administer a
certified community behavioral health clinic program, which shall include but not
be limited to:

���������
(A)
�
Creating and
maintaining a prospective payment system, including analysis of cost reports
for rebasing;

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(B)
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Creating and
maintaining certification criteria for community behavioral health clinics;

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(C)
�
Certifying
community behavioral health clinics and monitoring and, when necessary, providing
corrective action to certified community behavioral health clinics;

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(D)
�
Providing
technical assistance to certified community behavioral health clinics and to
clinics seeking certification on certification requirements and the prospective
payment system; and

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(E)
�
Coordinating and
collaborating with government and private entities to ensure federal compliance,
including submission of required data and reports;

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(2)
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Participate and
engage with individuals and public and private entities to ensure successful
delivery of mental health and substance use services to all people of the State
through certified community behavioral health clinics;

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(3)
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Establish
reasonable fees for certification application; and

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(4)
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Adopt rules
pursuant to chapter 91 for the purposes of implementing this chapter.

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� -4
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Certified community behavioral health clinics
oversight board; established.
�
(a)
�
There is established a certified community
behavioral health clinics oversight board within the department of health for
administrative purposes only.
�
The board
shall be composed of eleven members to be appointed by the governor pursuant to
section 26-34 for staggered terms; provided that at least fifty per cent of the
board shall be residents of a county with a population less than 500,000.
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The members of the board shall include:

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(1)
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Per populated
island, one resident with lived experience in mental health or substance use
conditions, or both;

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(2)
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One representative
from a federally qualified health center;

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(3)
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One representative
from a substance use treatment provider;

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(4)
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One representative
from an adult mental health treatment provider;

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(5)
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One representative
from an inpatient psychiatric facility, inpatient acute care hospital, or
hospital outpatient clinic; and

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(6)
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One board
certified physician in the field of pediatrics or child psychiatry.

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(b)
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The following shall serve as ex officio, nonvoting members of the board:

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(1)
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The governor, or
the governor's designee;

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(2)
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The director of
health, or the director's designee;

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(3)
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The superintendent
of education, or the superintendent's designee; and

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(4)
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The administrator
of the med-QUEST division of the department of human services, or the
administrator's designee.

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(c)
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The board shall perform the following duties and functions:

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(1)
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Review and comment
upon:

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(A)
�
Clinic
certification applications; and

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(B)
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Any changes or
modifications to certification criteria;

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(2)
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Decertify a
certified community behavioral health clinic as appropriate if the certified
community behavioral health clinic has not made required corrective action;

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(3)
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Encourage
efficient and coordinated use of federal, state, and private resources in the
provision of services;

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(4)
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Identify gaps in
services and coordinate responsibilities of various public or private agencies
for such missing services;

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(5)
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Advocate for the
needs of individuals with mental health or substance use conditions or both
before the legislature and the public and to the governor; and

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(6)
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Support and
conduct outreach activities to identify individuals with mental health or
substance use conditions, or both, and their families to obtain services,
including access to crisis services or other specialized services.

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(d)
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Members of the board shall serve without compensation, but shall be paid
their necessary expenses in attending meetings of the board.

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� -5
�
Certified community behavioral health clinics;
certification; operations.
�
(a)
�
No person, public or private, shall operate a
certified community behavioral health clinic with the expectation of payment
for services under a prospective payment system unless the community behavioral
health clinic has been certified by the office pursuant to this chapter.

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(b)
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Notwithstanding any other law to the contrary, a department of health
community mental health center may provide services necessary to meet
certification criteria established by the office.

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� -6
�
Certified community behavioral health clinic
special fund; established; deposits; expenditures.
�
(a) There is established within the state
treasury the certified community behavioral health clinic special fund, to be
administered by the office, into which shall be deposited:

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(1)
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All fees collected
under this chapter; and

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(2)
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Appropriations
made by the legislature to the fund.

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(b)
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Moneys in the special fund shall be expended by the office to assist in
offsetting program expenses of the office."

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SECTION
2
.
�
Section 329-2,
Hawaii Revised Statutes, is amended to read as follows:

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"
�329-2
�
Hawaii advisory
commission on drug abuse and controlled substances; number; appointment.
�
There shall be established a state advisory
commission on drug abuse and controlled substances consisting of not more than
fifteen nor less than nine members appointed by the governor, as provided in
section 26-34.
�
The members shall be
selected on the basis of their ability to contribute to the solution of
problems arising from the abuse of controlled substances, and to the extent
possible, shall represent the pharmacological, medical, community and business
affairs, youth action, educational, legal defense, enforcement, and corrections
segments of the community.
�
One of the
appointed members shall be a member of the state council on mental health
established by section 334-10, and shall be knowledgeable about the community
and the relationships between mental health, mental illness, and substance
abuse.
�
One of the appointed members
shall be a representative from the certified community behavioral health clinic
certifying office established by section -3.
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The commission shall elect a chairperson from
among its members.
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The members shall
serve without compensation, but shall be paid their necessary expenses in
attending meetings of the commission.
�

The commission shall be a part of the department of health for
administrative purposes; provided that the department of health shall appoint
an ex-officio non-voting representative to the commission who shall regularly
attend meetings of both this commission and the state council on mental health,
and make regular reports to both bodies."

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SECTION
3
.
�
Section 334-10,
Hawaii Revised Statutes, is amended by amending subsection (a) to read as
follows:

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"
(
a)
�
There is established,
within the department of health for administrative purposes, a state council on
mental health.
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The council shall consist
of [
twenty-one
]
twenty-two
members appointed by the governor as
provided in section 26-34.
�
In making
appointments to the council, the governor shall ensure that all service area
boards of the State are represented, and that a majority of the members are
nonproviders of mental health or other health services, and that a majority of
the members are not state employees.
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The
number of parents of children with serious emotional disturbances shall be
sufficient to provide adequate representation of such children in the
deliberations of the council.
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The
council shall be composed of residents of the State, including individuals
representing:

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(1)
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The principal
state agencies with respect to mental health, education, vocational
rehabilitation, criminal justice, housing, medicaid, and social services;

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(2)
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Public and private
entities concerned with the need, planning, operation, funding, and use of
mental health services and related support services;

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(3)
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Adults with
serious mental illnesses who are receiving, or have received, mental health
services;

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(4)
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The families of
such adults or families of children with serious emotional disturbances; [
and
]

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(5)
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The Hawaii
advisory commission on drug abuse and controlled substances who shall be a
person knowledgeable about the community and the relationships between mental
health, mental illness, and substance abuse[
.
]
; and

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(6)
�
The certified
community behavioral health clinic certifying office established pursuant to
section ‑3.
"

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SECTION 4.
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There is appropriated out of the general
revenues of the State of Hawaii the sum of $800,000 or so much thereof as may
be necessary for fiscal year 2026-2027 to carry out the purposes of this Act,
including the hiring of necessary staff for the community behavioral health
clinic certifying office established pursuant to this Act.

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The sum appropriated shall be
expended by the department of health for the purposes of this Act.

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SECTION 5.
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If any provision of this Act, or the
application thereof to any person or circumstance, is held invalid, the
invalidity does not affect other provisions or applications of the Act that can
be given effect without the invalid provision or application, and to this end
the provisions of this Act are severable.

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SECTION
6.
�
If any part of this Act is found to
be in conflict with federal requirements that are a prescribed condition for
the allocation of federal funds to the State, the conflicting part of this Act
is inoperative solely to the extent of the conflict and with respect to the
agencies directly affected, and this finding does not affect the operation of
the remainder of this Act in its application to the agencies concerned.
�
The rules under this Act shall meet federal
requirements that are a necessary condition to the receipt of federal funds by
the State.

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SECTION 7.
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Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

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SECTION 8.
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This Act shall take effect on July 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

Department
of Health; Community Behavioral Health Clinics Certifying Office;

Oversight Board;
New Special Fund
; Hawaii Advisory Commission on Drug
Abuse and Controlled Substances; State Council on Mental Health; Appropriation

Description:

Establishes
the Community Behavioral Health Clinic Certifying Office to certify community
behavioral health clinics and provide technical assistance for clinics seeking
certification.
�
Establishes the Certified
Community Behavioral Health Clinics Oversight Board.
�
Establishes the Certified Community
Behavioral Health Clinic Special Fund.
�

Amends the composition of the Advisory Commission on Drug Abuse and
Controlled Substances and State Council on Mental Health to include a member
from the Community Behavioral Health Clinic Certifying Office.
�
Appropriates funds.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.