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SB138 • 2026

Modify alcohol, drug addiction, and mental health services laws

Modify alcohol, drug addiction, and mental health services laws

Housing
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Terry Johnson
Last action
2025-07-01
Official status
As Enrolled
Effective date
2025-09-30

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Modify alcohol, drug addiction, and mental health services laws

To amend sections 340.011, 340.03, 340.032, 340.036, 340.041, 340.05, 340.08, 5119.22, 5119.221, 5119.25, and 5119.99 and to enact section 340.038 of the Revised Code to modify various laws regarding boards of alcohol, drug addiction, and mental health services and to impose penalties for not registering recovery housing residences.

What This Bill Does

  • To amend sections 340.011, 340.03, 340.032, 340.036, 340.041, 340.05, 340.08, 5119.22, 5119.221, 5119.25, and 5119.99 and to enact section 340.038 of the Revised Code to modify various laws regarding boards of alcohol, drug addiction, and mental health services and to impose penalties for not registering recovery housing residences.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-07-01 Ohio Legislature

    As Enrolled

  2. Ohio Legislature

    As Introduced

  3. Ohio Legislature

    As Reported by the Senate Addiction and Community Revitalization Committee

  4. Ohio Legislature

    As Passed by the Senate

  5. Ohio Legislature

    As Reported by the House Children and Human Services Committee

  6. Ohio Legislature

    As Passed by the House

Official Summary Text

To amend sections 340.011, 340.03, 340.032, 340.036, 340.041, 340.05, 340.08, 5119.22, 5119.221, 5119.25, and 5119.99 and to enact section 340.038 of the Revised Code to modify various laws regarding boards of alcohol, drug addiction, and mental health services and to impose penalties for not registering recovery housing residences.

Current Bill Text

Read the full stored bill text
(136th General Assembly)

(Senate Bill
Number 138)

AN ACT

To amend sections 340.011, 340.03,
340.032, 340.036, 340.041, 340.05, 340.08, 5119.22, 5119.221,
5119.25, and 5119.99 and to enact section 340.038 of the Revised Code
to modify various laws regarding boards of alcohol, drug addiction,
and mental health services and to impose penalties for not
registering recovery housing residences.

Be
it enacted by the General Assembly of the State of Ohio:

Section
1.
That
sections 340.011, 340.03, 340.032, 340.036, 340.041, 340.05, 340.08,
5119.22
,
5119.221, 5119.25
,
and 5119.99 be amended and section 340.038 of the Revised Code be
enacted to read as follows:

Sec.
340.011.
(A)
This chapter shall be interpreted to accomplish all of the following:

(1)
Establish a unified system of treatment
and
supports
for
persons with mental illnesses and persons with addictions;

(2)
Establish a community
prevention,
treatment, and
support
system
that
is
available
for
use
in
every
alcohol, drug addiction, and mental health service district;

(3)
Protect the personal liberty of persons with mental illnesses
and
persons with addictions
so
that they may be treated in the least restrictive environment;

(4)
Encourage the development of
high
quality
high-quality
,

cost
effective
cost-effective
,
and comprehensive services, including culturally sensitive services;

(5)
Foster the development of comprehensive community
addiction
and
mental
health services

and supports
,
based on recognized local needs, especially for persons with
severe
addictions and
severe
mental
disabilities
illnesses
;

(6)
Ensure that services provided meet minimum standards established by
the director of mental health and addiction services;

(7)
Promote the delivery of
high
quality
high-quality

and
cost-effective addiction and mental health services;

(8)
Promote the participation of persons receiving mental health services
and addiction services in the planning, delivery, and evaluation of
these services.

(B)
Nothing in Chapter 340., 5119., or 5122. of the Revised Code shall be
construed as requiring a board of county commissioners to provide
resources beyond the total amount set forth in a budget and list of
addiction services, mental health services, and recovery supports
required by section 340.08 of the Revised Code and approved by the
department of mental health and addiction services under section
5119.22 of the Revised Code.

Sec.
340.03.
(A)
Subject to rules issued by the director of mental health and
addiction services after consultation with relevant constituencies as
required by division (A)(10) of section 5119.21 of the Revised Code,
each board of alcohol, drug addiction, and mental health services
shall:

(1)
Serve as the community addiction and mental health planning agency
for the county or counties under its jurisdiction, and in so doing it
shall:

(a)
Evaluate the need for facility services, addiction services, mental
health services, and recovery supports;

(b)
In cooperation with other local and regional planning and funding
bodies and with relevant ethnic organizations, evaluate strengths and
challenges and set priorities for addiction services, mental health
services, and recovery supports.
A

With
respect to setting priorities, all of the following apply:

(i)
A
board
shall include treatment and prevention services when setting
priorities for addiction services and mental health services.
When

(ii)
When
a
board sets priorities for addiction services, the board shall consult
with the county commissioners of the counties in the board's service
district regarding the services described in section 340.15 of the
Revised Code and shall give priority to those services, except that
those services shall not have a priority over services provided to
pregnant women under programs developed in relation to the mandate
established in section 5119.17 of the Revised Code.

(iii)
As part of setting priorities through its community addiction and
mental health plan, a board may consider any local mechanisms that
have been established for determining eligibility for services and
supports.

(c)
In accordance with guidelines issued by the director of mental health
and addiction services under division
(F)
(G)

of section 5119.22 of the Revised Code, annually develop and submit
to the department of mental health and addiction services a community
addiction and mental health plan that addresses both of the
following:

(i)
The needs of all residents of the service district currently
receiving inpatient services in state-operated hospitals, the needs
of other populations as required by state or federal law or programs,
and the needs of all children subject to a determination made
pursuant to section 121.38 of the Revised Code;

(ii)
The department's priorities for facility services, addiction
services, mental health services, and recovery supports during the
period for which the plan will be in effect. The department shall
inform all of the boards of the department's priorities in a timely
manner that enables the boards to know the department's priorities
before the boards develop and submit the plans.

In
alcohol, drug addiction, and mental health service districts that
have separate alcohol and drug addiction services and community
mental health boards, the alcohol and drug addiction services board
shall submit a community addiction plan and the community mental
health board shall submit a community mental health plan. Each board
shall consult with its counterpart in developing its plan and address
the interaction between the local addiction and mental health systems
and populations with regard to needs and priorities in developing its
plan.

The

department

director

shall
approve or disapprove the plan, in whole or in part, in accordance
with division
(G)
(H)

of section 5119.22 of the Revised Code. Eligibility for state and
federal funding shall be contingent upon an approved plan or relevant
part of a plan.

If
a board determines that it is necessary to amend an approved plan,
the board shall submit a proposed amendment to the director. The
director shall approve or disapprove all or part of the amendment in
accordance with division
(H)
(I)

of section 5119.22 of the Revised Code.

The
board shall operate in accordance with the plan approved by the

department
director
.

(d)
Promote, arrange, and implement working agreements with social
service agencies, both public and private, and with judicial
agencies.

(2)
Investigate, or request another agency to investigate, any complaint
alleging abuse or neglect of any person receiving addiction services,
mental health services, or recovery supports from a community
addiction services provider or community mental health services
provider or alleging abuse or neglect of a resident receiving
addiction services or with mental illness or severe mental disability
residing in a residential facility licensed under section 5119.34 of
the Revised Code. If the
person
is a resident of a service district other than the district
represented by the board that received the complaint, the board that
received the complaint shall refer the complaint to the board of the
district where the residential facility is located for that board to
investigate the complaint.

If
a board's
investigation
substantiates the charge of abuse or neglect, the board shall take
whatever action it determines is necessary to correct the situation,
including notification of the appropriate authorities. Upon request,
the board shall provide information about such investigations to the
department.

(3)
For the purpose of section 5119.36 of the Revised Code, cooperate
with the director of mental health and addiction services in visiting
and evaluating whether the certifiable services and supports of a
community addiction services provider or community mental health
services provider satisfy the certification standards established by
rules adopted under that section. In addition, a board may provide
input and recommendations to the department when an application for
certification or the renewal of a certification has been submitted by
a provider or when a provider is being investigated by the
department, if the board, in either of those circumstances, is aware
of information that would be beneficial to the department's
consideration of the matter.

(4)
In accordance with criteria established under division
(D)

(D)(1)

of
section 5119.22 of the Revised Code, conduct program audits that
review and evaluate the quality, effectiveness, and efficiency of
addiction services, mental health services, and recovery supports
provided by community addiction services providers and community
mental health services providers under contract with the board and
submit the board's findings and recommendations to the department of
mental health and addiction services;

(5)
In accordance with section 5119.34 of the Revised Code, review an
application for a residential facility license and provide to the
department of mental health and addiction services any information
about the applicant or facility that the board would like the
department to consider in reviewing the application;

(6)

Audit,
in
In

accordance
with

guidelines issued under division (E) of section 5119.22 of the
Revised Code and any related

rules adopted
by
the auditor of state pursuant to section 117.20 of the Revised Code,
at least annually all programs, addiction services, mental health
services, and recovery supports provided under contract with the
board. In so doing, the board may contract for or employ the services
of private auditors. A copy of the fiscal audit report shall be
provided to the director of mental health and addiction services, the
auditor of state, and the county auditor of each county in the
board's district.
under
that section, review any annual financial audit reports that have
been submitted to the board regarding each community addiction
services provider and community mental health services provider with
which the board has contracted under section 340.036 of the Revised
Code to provide services and supports certified under section 5119.36
of the Revised Code;

(7)
Recruit and promote local financial support for addiction services,
mental health services, and recovery supports from private and public
sources;

(8)
In accordance with guidelines issued by the department as necessary
to comply with state and federal laws pertaining to financial
assistance, approve fee schedules and related charges or adopt a unit
cost schedule or other methods of payment for addiction services,
mental health services, and recovery supports provided by community
addiction services providers and community mental health services
providers that have contracted with the board under section 340.036
of the Revised Code;

(9)
Submit to the director and the county commissioners of the county or
counties served by the board, and make available to the public, an
annual report of the addiction services, mental health services, and
recovery supports under the jurisdiction of the board, including a
fiscal accounting;

(10)
Establish a method for evaluating referrals for court-ordered
treatment and affidavits filed pursuant to section 5122.11 of the
Revised Code in order to assist the probate division of the court of
common pleas in determining whether there is probable cause that a
respondent is subject to court-ordered treatment and whether
alternatives to hospitalization are available and appropriate;

(11)
Designate the treatment services, provider, facility, or other
placement for each person involuntarily committed to the board
pursuant to Chapter 5122. of the Revised Code. The board shall
provide the least restrictive and most appropriate alternative that
is available for any person involuntarily committed to it and shall
assure that the list of addiction services, mental health services,
and recovery supports submitted and approved in accordance with
division (B) of section 340.08 of the Revised Code are available to
persons with severe mental disabilities residing within its service
district. The board shall establish the procedure for authorizing
payment for the services and supports, which may include prior
authorization in appropriate circumstances. In accordance with
section 340.037 of the Revised Code, the board may provide addiction
services and mental health services directly to a person with a
severe mental disability when life or safety is endangered and when
no community addiction services provider or community mental health
services provider is available to provide the service.

(12)
Ensure that housing built, subsidized, renovated, rented, owned, or
leased by the board or a community addiction services provider or
community mental health services provider has been approved as
meeting minimum fire safety standards and that persons residing in
the housing have access to appropriate and necessary services,
including culturally relevant services, from a community addiction
services provider or community mental health services provider. This
division does not apply to residential facilities licensed pursuant
to section 5119.34 of the Revised Code.

(13)
Establish a mechanism for obtaining advice and involvement of persons
receiving addiction services, mental health services, or recovery
supports on matters pertaining to services and supports in the
alcohol, drug addiction, and mental health service district;

(14)
Perform the duties required by rules adopted under section 5119.22 of
the Revised Code regarding referrals by the board or community mental
health services providers under contract with the board of
individuals with mental illness or severe mental disability to class
two residential facilities licensed under section 5119.34 of the
Revised Code and effective arrangements for ongoing mental health
services for the individuals. The board is accountable in the manner
specified in the rules for ensuring that the ongoing mental health
services are effectively arranged for the individuals.

(15)
Perform the duties required by section 9.21 of the Revised Code
regarding credit card accounts, including the requirement to adopt a
written policy before first holding a credit card account.

(B)
Each board of alcohol, drug addiction, and mental health services
shall establish such rules, operating procedures, standards, and
bylaws, and
shall

perform
such other duties
,

as may be necessary or proper to carry out the purposes of this
chapter.

(C)
A board of alcohol, drug addiction, and mental health services may
receive by gift, grant, devise, or bequest any moneys, lands, or
property for the benefit of the purposes for which the board is
established, and may hold and apply it according to the terms of the
gift, grant, or bequest. All money received, including accrued
interest, by gift, grant, or bequest shall be deposited in the
treasury of the county, the treasurer of which is custodian of the
alcohol, drug addiction, and mental health services funds
,

to the credit of the board

and
.
The money

shall be

made

available for use by the board for purposes stated by the donor or
grantor.

(D)
No member or employee of a board of alcohol, drug addiction, and
mental health services shall be liable for injury or damages caused
by any action or inaction taken within the scope of the member's
official duties or the employee's employment, whether or not such
action or inaction is expressly authorized by this section or any
other section of the Revised Code, unless such action or inaction
constitutes willful or wanton misconduct. Chapter 2744. of the
Revised Code applies to any action or inaction by a member or
employee of a board taken within the scope of the member's official
duties or employee's employment. For the purposes of this division,
the conduct of a member or employee shall not be considered willful
or wanton misconduct if the member or employee acted in good faith
and in a manner that the member or employee reasonably believed was
in or was not opposed to the best interests of the board and, with
respect to any criminal action or proceeding, had no reasonable cause
to believe the conduct was unlawful.

(E)
The meetings held by any committee established by a board of alcohol,
drug addiction, and mental health services shall be considered to be
meetings of a public body subject to section 121.22 of the Revised
Code.

(F)(1)
A board of alcohol, drug addiction, and mental health services may
establish a rule, operating procedure, standard, or bylaw to allow
the executive director of the board to execute both of the following
types of contracts valued at twenty-five thousand dollars or less, as
determined by the board, on behalf of the board without the board's
prior approval:

(a)
Emergency contracts for clinical services or recovery support
services;

(b)
Standard service contracts pertaining to the board's operations.

(2)
If a board establishes a rule, operating procedure, standard, or
bylaw under division (F)(1) of this section, both of the following
shall be the case:

(a)
The board shall define the scope of contracts described in divisions
(F)(1)(a) and (b) of this section in that rule, operating procedure,
standard, or bylaw.

(b)
The board shall disclose the existence of a contract executed
pursuant to the rule, operating procedure, standard, or bylaw at the
first board meeting that occurs after the contract was executed and
ensure that a record of that disclosure is included in the written
minutes of that meeting.

Sec.
340.032.
Subject
to rules adopted by the director of mental health and addiction
services after consultation with relevant constituencies as required
by division (A)(10) of section 5119.21 of the Revised Code, each
board of alcohol, drug addiction, and mental health services shall do
all of the following:

(A)
Establish, to the extent resources are available, a community-based
continuum of care that includes all of the following as essential
elements:

(1)
Prevention and wellness management services;

(2)
At least both of the following outreach and engagement activities:

(a)
Locating persons in need of addiction services and persons in need of
mental health services to inform them of available addiction
services, mental health services, and recovery supports;

(b)
Helping persons who receive addiction services and persons who
receive mental health services obtain services necessary to meet
basic human needs for food, clothing, shelter, medical care, personal
safety, and income.

(3)
Assessment services;

(4)
Care coordination;

(5)
Residential services;

(6)
At least the following outpatient services:

(a)
Nonintensive;

(b)
Intensive, such as partial hospitalization and assertive community
treatment;

(c)
Withdrawal management;

(d)
Emergency and crisis.

(7)
Where appropriate, at least the following inpatient services:

(a)
Psychiatric care;

(b)
Medically managed alcohol or drug treatment.

(8)
At least all of the following recovery supports:

(a)
Peer support;

(b)
A wide range of housing and support services, including recovery
housing residences;

(c)
Employment, vocational, and educational opportunities;

(d)
Assistance with social, personal, and living skills;

(e)
Multiple paths to recovery such as twelve-step approaches and parent
advocacy connection;

(f)
Support, assistance, consultation, and education for families,
friends, and persons receiving addiction services, mental health
services, and recovery supports.

(9)
In accordance with section 340.033 of the Revised Code, an array of
addiction services and recovery supports for all levels of opioid and
co-occurring drug addiction;

(10)
Any additional elements the department of mental health and addiction
services, pursuant to section 5119.21 of the Revised Code, determines
are necessary to establish the community-based continuum of care.

(B)
Ensure that the rights of persons receiving any elements of the
community-based continuum of care are protected;

(C)
Ensure that persons receiving any elements of the community-based
continuum of care are able to utilize grievance procedures applicable
to the elements
;

(D)
Inform persons seeking or receiving addiction services, mental health
services, or recovery supports and family members and caregivers of
such persons, as well as the community in general, about available
elements of the community-based continuum of care and facilitate the
referral of persons to appropriate services and supports
.

Sec.
340.036.
(A)
Subject to division (B) of this section and rules adopted by the
director of mental health and addiction services after consultation
with relevant constituencies as required by division (A)(10) of
section 5119.21 of the Revised Code, each board of alcohol, drug
addiction, and mental health services shall
enter

provide
for the continuum of care pursuant to section 340.032 of the Revised
Code by entering
into
contracts with all of the following:

(1)
Public and private facilities for the operation of facility services;

(2)
Community addiction services providers for addiction services and
recovery supports;

(3)
Community mental health services providers for mental health services
and recovery supports.

(B)
No board shall do any of the following:

(1)
Contract with a residential facility required to be licensed under
section 5119.34 of the Revised Code unless the facility is so
licensed;

(2)
Contract with a community addiction services provider or community
mental health services provider for certifiable services and supports
unless the certifiable services and supports are certified under
section 5119.36 of the Revised Code;

(3)
Contract with a community addiction services provider or community
mental health services provider for recovery supports that are
required by the director to meet quality criteria or core
competencies unless the recovery supports meet the criteria or
competencies.

(C)
When a board contracts with a community addiction services provider
or community mental health services provider for addiction services,
mental health services, or recovery supports, all of the following
apply:

(1)
The board shall consider both of the following:

(a)
The cost effectiveness and quality of the provider's services and
supports;

(b)
Continuity of care.

(2)
The board may review cost elements
,
including salary costs, of the

specific
to the provider's
services
and supports

under contract with the board
.

(3)
The board may establish, in a way that is most effective and
efficient in meeting local needs, a utilization review process as
part of the contract.

(4)
The board may contract with a government entity, for-profit entity,
or nonprofit entity. Any such entity may be faith-based.

(5)
The contract shall include terms that specify a process by which
either contracting party may terminate the contract before it is
scheduled to expire, with at least thirty days' notice, for any cause
the party considers necessary for the early termination of the
contract. The process shall include procedures under which the party
subject to the early termination decision may appeal that decision to
the terminating party's governing board.

(6)
The contract shall provide for the transition of care, when
applicable to client services, for an additional sixty days under the
terms of the current contract, in both of the following
circumstances:

(a)
If notice is provided that the contract will be terminated early as
permitted under the terms of the contract pursuant to division (C)(5)
of this section;

(b)
If the contract is not entered into for a subsequent term pursuant to
division (D) of this section.

(D)
If a party to a contract entered into under this section
proposes
not to renew the contract or proposes substantial changes in contract
terms
intends
not to enter into a contract for a subsequent term
,
the other party shall be given written notice at least
one
hundred twenty
sixty

days
before the expiration date of the
current

contract.

During
the first sixty days of this one-hundred-twenty-day period, both
parties shall attempt to resolve any dispute through good faith
collaboration and negotiation in order to continue to provide
services and supports to persons in need. If the dispute has not been
resolved sixty days before the expiration date of the contract,
either party may notify the director of the unresolved dispute. The
director may require both parties to submit the dispute to another
entity with the cost to be shared by the parties. Not later than
twenty days before the expiration date of the contract or a later
date to which both parties agree, the other entity shall issue to the
parties and director recommendations on how the dispute may be
resolved. The director shall adopt rules establishing the procedures
of this dispute resolution process
If
neither party provides such notice, a subsequent contract shall be
entered into upon successful negotiation of contract terms
.

(E)
Section 307.86 of the Revised Code does not apply to contracts
entered into under this section
.
,
but a board of alcohol, drug addiction, and mental health services
may choose to use a competitive selection process to enter into
contracts for services and supports. The board's selection
determinations shall allow for compliance with the notice
requirements of divisions (C)(5) and (D) of this section. Any
competitive selection process used under this section shall prohibit
conflicts of interest and shall include the following elements:

(1)
Notice of opportunity for submission of applications for contracts;

(2)
Eligibility criteria for applicants;

(3)
Consideration of the scope of services and supports proposed by
applicants;

(4)
Selection criteria;

(5)
Timelines for application submission and the award of contracts.

Sec.
340.038.
The
department of mental health and addiction services, in collaboration
with boards of alcohol, drug addiction, and mental health services
and other stakeholders, shall develop a data sharing and integration
plan. The plan shall specify data sharing and integration procedures
that the department and the boards shall use to improve the
management and administration of programs offering addiction or
mental health services and to ensure that the essential elements of a
board's continuum of care are available, as appropriate, to persons
seeking or receiving addiction or mental health services.

Sec.
340.041.
In
addition to such other duties as may be lawfully imposed, the
executive director of a board of alcohol, drug addiction, and mental
health services shall:

(A)
Serve as executive officer of the board and, subject to the prior
approval of the board for each contract, except contracts, if any, to
which division (F) of section 340.03 of the Revised Code applies,
execute contracts on its behalf;

(B)
Supervise addiction services, mental health services, recovery
supports, and facilities provided, operated, contracted, or supported
by the board to the extent of determining that services, supports,
and facilities are being administered in conformity with this chapter
and rules of the director of mental health and addiction services;

(C)
Provide consultation to community addiction services providers and
community mental health services providers;

(D)
Recommend to the board the changes necessary to increase the
effectiveness of addiction services, mental health services, and
recovery supports and other matters necessary or desirable to carry
out this chapter;

(E)
Employ and remove from office such employees and consultants in the
classified civil service and, subject to the approval of the board,
employ and remove from office such other employees and consultants as
may be necessary for the work of the board, and fix their
compensation and reimbursement within the limits set by the salary
schedule and the budget approved by the board;

(F)
Encourage the development and expansion of preventive, treatment, and
consultative services, as well as recovery supports, in the fields of
addiction services and mental health services with emphasis on
continuity of care;

(G)
Prepare for board approval an annual report of the addiction
services, mental health services, recovery supports, and facilities
under the jurisdiction of the board, including a fiscal accounting of
all services and supports;

(H)
Conduct such studies
and
activities
as
may be necessary and practicable for the promotion of mental health,

the

promotion
of addiction services, and the prevention of mental illness,
emotional disorders, and addiction
,
including developing and disseminating informational materials to
educate the public about mental illness and addiction treatment and
prevention and the availability of services and supports
;

(I)
Authorize the county auditor, or in a joint-county district the
county auditor designated as the auditor for the district, to issue
warrants for the payment of board obligations approved by the board,
provided that all payments from funds distributed to the board by the
department of mental health and addiction services are in accordance
with the budget submitted pursuant to section 340.08 of the Revised
Code, as approved by the department of mental health and addiction
services.

Sec.
340.05.
If
a community addiction services provider or community mental health
services provider receives a complaint alleging abuse or neglect of
an individual with mental illness or severe mental disability, or an
individual receiving addiction services, who resides in a residential
facility licensed under section 5119.34 of the Revised Code, the
provider shall report the complaint to the board of alcohol, drug
addiction, and mental health services serving the alcohol, drug
addiction, and mental health service district in which the
residential facility is located. A board of alcohol, drug addiction,
and mental health services that receives
such
a report from a community addiction services provider or community
mental health services provider of such
a
complaint
alleging
abuse or neglect of an individual with mental illness or severe
mental disability or an individual receiving addiction services
shall
report the complaint to the director of mental health and addiction
services for the purpose of the director conducting an investigation
under section 5119.34 of the Revised Code. The board may enter the
facility with or without the director and, if the health and safety
of a resident is in
immediate

danger,
take any necessary action to protect the resident. The board's action
shall not violate any resident's rights specified in rules adopted by
the department of mental health and addiction services under section
5119.34 of the Revised Code. The board shall
immediately

promptly

report
to the director regarding the board's actions under this section.

Sec.
340.08.
In
accordance with rules or guidelines issued by the director of mental
health and addiction services, each board of alcohol, drug addiction,
and mental health services shall do all of the following:

(A)
Submit to the department of mental health and addiction services a
proposed budget of receipts and expenditures for all federal, state,
and local moneys the board expects to receive.

(1)
The proposed budget shall identify funds the board has available for
included opioid and co-occurring drug addiction services and recovery
supports.

(2)
The proposed budget shall identify funds the board and public
children services agencies in the board's service district have
available to fund jointly the services described in section 340.15 of
the Revised Code.

(3)
The board's proposed budget for expenditures of state and federal
funds distributed to the board by the department shall be deemed an
application for funds, and the
department

director

shall
approve or disapprove the budget for these expenditures in whole or
in part in accordance with division
(G)
(H)

of section 5119.22 of the Revised Code.

If
a board determines that it is necessary to amend an approved budget,
the board shall submit a proposed amendment to the director. The
director shall approve or disapprove all or part of the amendment in
accordance with division
(H)
(I)

of section 5119.22 of the Revised Code.

(B)
Submit to the department a proposed list of addiction services,
mental health services, and recovery supports the board intends to
make available. The board shall include the services and supports
required by section 340.032 of the Revised Code to be included in the
community-based continuum of care and the services required by
section 340.15 of the Revised Code. The board shall explain the
manner in which the board intends to make such services and supports
available. The list shall be compatible with the budget submitted
pursuant to division (A) of this section. The
department

director

shall
approve or disapprove the list in whole or in part in accordance with
division
(G)
(H)

of section 5119.22 of the Revised Code.

If
a board determines that it is necessary to amend an approved list,
the board shall submit a proposed amendment to the director. The
director shall approve or disapprove all or part of the amendment in
accordance with division
(H)
(I)

of section 5119.22 of the Revised Code.

(C)
Enter into a continuity of care agreement with the state institution
operated by the department of mental health and addiction services
and designated as the institution serving the district encompassing
the board's service district. The continuity of care agreement shall
outline the department's and the board's responsibilities to plan for
and coordinate with each other to address the needs of board
residents who are patients in the institution, with an emphasis on
managing appropriate hospital bed day use and discharge planning. The
continuity of care agreement shall not require the board to provide
addiction services, mental health services, or recovery supports
other than those on the list of services and supports submitted by
the board pursuant to division (B) of this section and approved by
the
department

director

in
accordance with division
(G)
(H)

of section 5119.22 of the Revised Code.

(D)
In conjunction with the department, operate a coordinated system for
tracking and monitoring persons found not guilty by reason of
insanity and committed pursuant to section 2945.40 of the Revised
Code who have been granted a conditional release and persons found
incompetent to stand trial and committed pursuant to section 2945.39
of the Revised Code who have been granted a conditional release. The
system shall do all of the following:

(1)
Centralize responsibility for the tracking of those persons;

(2)
Provide for uniformity in monitoring those persons;

(3)
Provide a mechanism to allow prompt rehospitalization,
reinstitutionalization, or detention when a violation of the
conditional release or decompensation occurs.

(E)

Submit

To
ensure the safety of persons seeking or receiving addiction services,
mental health services, or recovery supports, submit
to
the department a report summarizing all of the following:

(1)
Complaints and grievances received by the board concerning the rights
of persons seeking or receiving addiction services, mental health
services, or recovery supports;

(2)
Investigations of the complaints and grievances;

(3)
Outcomes of the investigations.

(F)
Provide to the department information to be submitted to the
community behavioral health information system or systems established
by the department under Chapter 5119. of the Revised Code.

(G)
Annually, and upon any change in membership, submit to the department
a list of all current members of the board of alcohol, drug
addiction, and mental health services, including the appointing
authority for each member, and the member's specific qualification
for appointment pursuant to section 340.02 or 340.021 of the Revised
Code, if applicable.

(H)
Submit to the department other information as is reasonably required
for purposes of the department's operations, service evaluation,
reporting activities, research, system administration, and oversight.

(I)
Annually update and publish on the board's web site a list of all
opioid treatment programs licensed under section 5119.37 of the
Revised Code that are operating within the board's district, based on
information obtained from any of the following:

(1)
The federal substance abuse and mental health services
administration's opioid treatment program directory;

(2)
A resource directory created by the department of mental health and
addiction services;

(3)
The list maintained by the department of mental health and addiction
services pursuant to division (P) of section 5119.37 of the Revised
Code.

Sec.
5119.22.
The
director of mental health and addiction services, with respect to all
mental health and addiction facilities, addiction services, mental
health services, and recovery supports established and operated or
provided under Chapter 340. of the Revised Code, shall do all of the
following:

(A)
Adopt rules pursuant to Chapter 119. of the Revised Code that may be
necessary to carry out the purposes of this chapter and Chapters 340.
and 5122. of the Revised Code
.
;

(B)
Review and evaluate the community-based continuum of care required by
section 340.032 of the Revised Code to be established in each service
district, taking into account the findings and recommendations of the
board of alcohol, drug addiction, and mental health services of the
district submitted under division (A)(4) of section 340.03 of the
Revised Code and the priorities and plans of the department of mental
health and addiction services, including the needs of residents of
the district currently receiving services in state-operated
hospitals, and make recommendations for needed improvements to boards
of alcohol, drug addiction, and mental health services;

(C)
At the director's discretion, provide to boards of alcohol, drug
addiction, and mental health services state or federal funds, in
addition to those allocated under section 5119.23 of the Revised
Code, for special programs or projects the director considers
necessary but for which local funds are not available;

(D)
(D)(1)

Establish criteria
to
be taken into account
by

which

each
board of alcohol, drug addiction, and mental health services
reviews
and evaluates
when
it conducts program audits under section 340.03 of the Revised Code
to review and evaluate
the
quality, effectiveness, and efficiency of the facility services,
addiction services, mental health services, and recovery supports for
which it contracts under section 340.036 of the Revised Code. The
criteria shall include requirements ensuring appropriate utilization
of the services and supports. The department shall assess each
board's evaluation of the services and supports and the compliance of
each board with this section, Chapter 340. of the Revised Code, and
other state or federal law and regulations.
The

(2)
The
department,
in cooperation with the board, periodically shall review and evaluate
the quality, effectiveness, and efficiency of
both
of
the

following:

(a)
The

facility services, addiction services, mental health services, and
recovery supports for which each board contracts under section
340.036 of the Revised Code

and the
;

(b)
The
facilities,
addiction services, and mental health services that each board
operates or provides under section 340.037 of the Revised Code.

The

The

department
shall collect information that is necessary to perform
these
functions
its
review and evaluation
.

(E)

Issue
guidelines to be followed by each board of alcohol, drug addiction,
and mental health services when it reviews under division (A)(6) of
section 340.03 of the Revised Code any annual financial audit reports
submitted to the board by community addiction services providers and
community mental health services providers;

(F)

To
the extent the director determines necessary and after consulting
with boards of alcohol, drug addiction, and mental health services,
community addiction services providers, and community mental health
services providers, develop and operate, or contract for the
operation of, a community behavioral health information system or
systems. The department shall specify the information that must be
provided by the boards and providers for inclusion in the system or
systems.

Boards
of alcohol, drug addiction, and mental health services, community
addiction services providers, and community mental health services
providers shall submit information requested by the department in the
form and manner and in accordance with time frames prescribed by the
department. Information collected by the department may include all
of the following:

(1)
Information on addiction services, mental health services, and
recovery supports provided;

(2)
Financial information regarding expenditures of federal, state, or
local funds;

(3)
Information about persons served.

The
department shall not collect any personal information from the boards
or providers except as required or permitted by state or federal law
for purposes related to payment, health care operations, program and
service evaluation, reporting activities, research, system
administration, and oversight.

(F)
(G)

In consultation with representatives of boards of alcohol, drug
addiction, and mental health services and after consideration of
recommendations made by the medical director appointed under section
5119.11 of the Revised Code, establish all of the following:

(1)
Guidelines, including a timetable, for the boards' development and
submission of proposed community addiction and mental health plans,
budgets, and lists of addiction services, mental health services, and
recovery supports under sections 340.03 and 340.08 of the Revised
Code;

(2)
Procedures, including a timetable, for the director's review and
approval or disapproval of the plans, budgets, and lists;

(3)
Procedures for corrective action regarding the plans, budgets, and
lists, including submission of revised or new plans, budgets, and
lists;

(4)
Procedures for the director to follow in offering technical
assistance to boards to assist them in making the plans, budgets, and
lists acceptable or in making proposed amendments to approved plans,
budgets, and lists meet criteria for approval;

(5)
Procedures for issuing time-limited waivers under section 5119.221 of
the Revised Code.

(G)
(H)

Review each board's proposed community addiction and mental health
plan, budget, and list of addiction services, mental health services,
and recovery supports submitted pursuant to sections 340.03 and
340.08 of the Revised Code and approve or disapprove the plan, the
budget, and the list in whole or in part. The director shall
disapprove a board's proposed budget in whole or in part if the
proposed budget would not make available in the board's service
district the essential elements of the community-based continuum of
care required by section 340.032 of the Revised Code, including,
except as otherwise authorized by a time-limited waiver issued under
section 5119.221 of the Revised Code, an array of addiction services
and recovery supports for all levels of opioid and co-occurring drug
addiction.

Prior
to a final decision to disapprove a plan, budget, or list in whole or
in part, a representative of the director shall meet with the board
and discuss the reason for the action the director proposes to take
and any corrective action that should be taken to make the plan,
budget, or list acceptable to the director. In addition, the director
shall offer technical assistance to the board to assist it to make
the plan, budget, or list acceptable. The director shall give the
board a reasonable time in which to revise the plan, budget, or list.
The board thereafter shall submit a revised plan, budget, or list or
a new plan, budget, or list.

(H)
(I)

Approve or disapprove all or part of proposed amendments that a board
of alcohol, drug addiction, or mental health services submits under
section 340.03 or 340.08 of the Revised Code to an approved community
addiction and mental health plan, budget, or list of addiction
services, mental health services, and recovery supports.

If
the director disapproves of all or part of any proposed amendment,
the director shall provide the board an opportunity to present its
position. The director shall inform the board of the reasons for the
disapproval and of the criteria that must be met before the proposed
amendment may be approved. The director shall give the board a
reasonable time within which to meet the criteria and shall offer
technical assistance to the board to help it meet the criteria.

Sec.
5119.221.
(A)
The director of mental health and addiction services, in accordance
with procedures established under division
(F)(5)
(G)(5)

of section 5119.22 of the Revised Code, may issue to a board of
alcohol, drug addiction, and mental health services a time-limited
waiver of the requirement of section 340.033 of the Revised Code that
ambulatory detoxification and medication-assisted treatment be made
available within the borders of the board's service district if the
director determines that both of the following apply:

(1)
The board seeking the waiver has made reasonable efforts to make
ambulatory detoxification and medication-assisted treatment available
within the borders of the board's service district;

(2)
Ambulatory detoxification and medication-assisted treatment can be
made available through one or more contracts between the board
seeking the waiver and community addiction services providers that
are located not more than thirty miles beyond the borders of the
board's service district.

(B)
Each waiver issued under this section shall specify the amount of
time for which it is in effect and whether it applies to ambulatory
detoxification, medication-assisted treatment, or both.

Sec.
5119.25.
(A)
The director of mental health and addiction services may withhold
funds, in whole or in part, that otherwise are to be allocated to a
board of alcohol, drug addiction, and mental health services under
section 5119.23 of the Revised Code if either of the following
circumstances apply:

(1)
The board fails to comply with Chapter 340. or 5119. of the Revised
Code or rules of the department of mental health and addiction
services;

(2)
The board denies available service on the basis of race, color,
religion, ancestry, military status, sex, age, national origin,
disability as defined in section 4112.01 of the Revised Code, or
developmental disability.

(B)
The director shall withhold funds, in whole or in part, that
otherwise are to be allocated to a board under section 5119.23 of the
Revised Code if either of the following circumstances apply:

(1)
The director, under division
(G)
(H)

of section 5119.22 of the Revised Code, disapproves all or part of
the board's proposed community addiction and mental health plan,
budget, or list of addiction services, mental health services, and
recovery supports;

(2)
The board's use of state and federal funds fails to comply with the
board's approved budget, including approved amendments to the budget.

(C)
The director shall issue a notice identifying the areas of
noncompliance and the action necessary to achieve compliance. The
director may offer technical assistance to the board to achieve
compliance. The board shall have thirty days from receipt of the
notice of noncompliance to present its position that it is in
compliance or to submit to the director evidence of corrective action
the board took to achieve compliance. Before withholding funds, the
director or the director's designee shall hold a hearing within
thirty days of receipt of the board's position or evidence to
determine if there are continuing violations and that either
assistance is rejected or the board is unable, or has failed, to
achieve compliance. The director may appoint a representative from
another board of alcohol, drug addiction, and mental health services
to serve as a mentor for the board in developing and executing a plan
of corrective action to achieve compliance. Any such representative
shall be from a board that is in compliance with Chapter 340. of the
Revised Code, this chapter, and the department's rules. Subsequent to
the hearing process, if it is determined that compliance has not been
achieved, the director may allocate all or part of the withheld funds
to one or more community mental health services providers or
community addiction services providers to provide the mental health
service, addiction service, or recovery support for which the board
is not in compliance until the time that there is compliance.

(D)
The director shall adopt rules in accordance with Chapter 119. of the
Revised Code to implement this section.

Sec.
5119.99.
(A)
Whoever violates section 5119.333
,
division (A) of section 5119.392, or division (A) of section 5119.395

of the Revised Code is guilty of a misdemeanor of the first degree.

(B)
Whoever violates section 5119.27 or 5119.28, division (P) of section
5119.36, or division (A)(1) or (2) of section 5119.37 of the Revised
Code is guilty of a felony of the fifth degree.

Section
2.
That
existing sections 340.011, 340.03, 340.032, 340.036, 340.041, 340.05,
340.08, 5119.22
,
5119.221, 5119.25
,
and 5119.99 of the Revised Code are hereby repealed.

Section
3.
The
amendment by this act of section 340.036 of the Revised Code takes
effect six months after the effective date of this section and
applies to contracts entered into or modified on or after the date
the amendment takes effect.

Section
4.
If
a board of alcohol, drug addiction, and mental health services holds
a credit card account on the effective date of this section, but has
not adopted a written policy that complies with the requirements of
section 9.21 of the Revised Code regarding the use of credit card
accounts, the board shall adopt such a written policy not later than
three months after the effective date of this section.

Speaker
___________________ of the House of Representatives.

President
___________________ of the Senate.

Passed
________________________, 20____

Approved
________________________, 20____

Governor.

The section numbering of law
of a general and permanent nature is complete and in conformity with
the Revised Code.

Director, Legislative
Service Commission.

Filed
in the office of the Secretary of State at Columbus, Ohio, on the
____ day of ___________, A. D. 20____.

Secretary of State.

File
No. _________ Effective Date ___________________