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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Enrolled
House Bill 2015
Sponsored by Representative NOSSE; Representatives DIEHL, HARBICK, PHAM H (Presession
filed.)
CHAPTER .................................................
AN ACT
Relating to behavioral health; and declaring an emergency.
Whereas licensed residential behavioral health programs in Oregon face hurdles to development
and ongoing operations that are impacting the state’s ability to quickly benefit from current and
future investments designed to increase bed capacity; and
Whereas the Oregon Health Authority is encouraged to study options to overcome barriers, both
administrative and financial, that are preventing the state from optimally developing and operating
residential behavioral health programs across Oregon; now, therefore,
Be It Enacted by the People of the State of Oregon:
SECTION 1.
(1) As used in this section:
(a) “Facility” means:
(A) A residential treatment facility;
(B) A residential treatment home;
(C) A secure residential treatment facility; or
(D) A secure residential treatment home.
(b) “Medical assistance” has the meaning given that term in ORS 414.025.
(c) “Residential treatment facility” has the meaning given that term in ORS 443.400.
(d) “Residential treatment home” has the meaning given that term in ORS 443.400.
(e) “Secure residential treatment facility” means a facility described in ORS 443.465.
(f) “Secure residential treatment home” means a home described in ORS 443.465.
(2) The Oregon Health Authority shall:
(a) Study potential allowable alternatives or exceptions to current nurse staffing re-
quirements in secure residential treatment facilities to address workforce challenges while
balancing the safety of providers and consumers.
(b) Assess all methodologies permitted by federal law for reimbursing facilities. The au-
thority shall consider alternatives to the current reimbursement rate methodology used by
the authority and recommend a methodology that considers:
(A) Staffing costs for a facility;
(B) The need to incentivize a facility to hold open a resident’s room when a resident is
removed from the facility for a brief period of time;
(C) The need to pay facility staff a professional wage;
(D) The need to incentivize a facility to operate, develop and staff as large of a program
as is possible and safe; and
(E) The need to encourage facilities to serve residents with similar levels of care needs.
Enrolled House Bill 2015 (HB 2015-B) Page 1
(c) Determine whether the authority may, under federal law, administer residential be-
havioral health services to medical assistance recipients through options other than through
the state’s Home and Community-Based Services waiver, under 42 U.S.C. 1396n(c), or a state
plan amendment under 42 U.S.C. 1396n(i). To the extent that alternative models of adminis-
tering residential behavioral health services to medical assistance recipients are permissible
under federal law, the authority shall:
(A) Analyze alternative models that have been approved by the Centers for Medicare and
Medicaid Services for use in other states;
(B) Evaluate the cost of any alternative models; and
(C) Develop recommendations about:
(i) Alternative options that would allow the authority to increase reimbursement rates
for facilities;
(ii) Alternative options that would not subject facilities to a requirement that facilities
provide an eviction process that is as protective as state landlord-tenant law;
(iii) How alternative models may support facilities in serving residents with high acuity
behavioral health needs and what protections are available to ensure that residents with high
acuity behavioral health needs are not prematurely or inappropriately discharged for prob-
lematic behaviors;
(iv) A discharge process for residents who decline to participate in treatment and are
therefore not suited for continued services by a facility; and
(v) An appeal process for both facilities and residents.
(d) Determine the feasibility of supporting the direct discharge of a resident, when
deemed medically necessary and clinically prudent, from a facility to other types of housing
without requiring a third-party referral.
(e) Evaluate options for providing, and develop recommendations for funding, capacity
payments to facilities when a resident is hospitalized or temporarily absent due to a law
enforcement encounter.
(f) Study needed actions and take appropriate actions to fill the capacity of newly licensed
facilities.
(3) No later than September 15, 2026, the authority shall report its findings and recom-
mendations from the studies conducted under this section, in the manner provided in ORS
192.245, to the interim committees of the Legislative Assembly related to health.
SECTION 2.
(1) As used in this section:
(a) “Facility” means:
(A) A residential treatment facility;
(B) A residential treatment home;
(C) A secure residential treatment facility; or
(D) A secure residential treatment home.
(b) “Residential treatment facility” has the meaning given that term in ORS 443.400.
(c) “Residential treatment home” has the meaning given that term in ORS 443.400.
(d) “Secure residential treatment facility” means a facility described in ORS 443.465.
(e) “Secure residential treatment home” means a home described in ORS 443.465.
(f) “Transition aged youth residential treatment home” means a residential treatment
home for young adults between the ages of 17.5 and 25 years of age who experience complex
behavioral health challenges.
(2) The Oregon Health Authority shall adopt rules to:
(a) Support facilities in developing early transition plans for residents.
(b) Establish a separate licensing process for transition aged youth residential treatment
homes.
(3) No later than September 15, 2025, the authority shall submit an interim report, in the
manner provided in ORS 192.245, to the interim committees of the Legislative Assembly re-
Enrolled House Bill 2015 (HB 2015-B) Page 2
lated to health, about the authority’s progress in carrying out the provisions of this section
and any recommendations for needed legislative changes.
(4) No later than September 15, 2026, the authority shall submit a final report, in the
manner provided in ORS 192.245, to the interim committees of the Legislative Assembly re-
lated to health, about the authority’s progress in carrying out the provisions of this section
and any recommendations for needed legislative changes.
SECTION 3. Notwithstanding any other provision of law, the General Fund appropriation
made to the Oregon Health Authority by section 1 (1), chapter ___, Oregon Laws 2025 (En-
rolled House Bill 5025), for the biennium beginning July 1, 2025, is increased by $706,070 to
carry out the provisions of sections 1 and 2 of this 2025 Act.
SECTION 4. Notwithstanding any other provision of law, the General Fund appropriation
made to the Oregon Health Authority by section 1 (2), chapter ___, Oregon Laws 2025 (En-
rolled House Bill 5025), for the biennium beginning July 1, 2025, is increased by $581,259 to
carry out the provisions of sections 1 and 2 of this 2025 Act.
SECTION 5. Notwithstanding any other law limiting expenditures, the limitation on ex-
penditures established by section 5 (1), chapter ___, Oregon Laws 2025 (Enrolled House Bill
5025), for the biennium beginning July 1, 2025, as the maximum limit for payment of expenses
from federal funds, excluding federal funds described in section 2, chapter ___, Oregon Laws
2025 (Enrolled House Bill 5025), collected or received by the Oregon Health Authority, is in-
creased by $706,070 to carry out the provisions of sections 1 and 2 of this 2025 Act.
SECTION 6.
Notwithstanding any other law limiting expenditures, the limitation on ex-
penditures established by section 5 (2), chapter ___, Oregon Laws 2025 (Enrolled House Bill
5025), for the biennium beginning July 1, 2025, as the maximum limit for payment of expenses
from federal funds, excluding federal funds described in section 2, chapter ___, Oregon Laws
2025 (Enrolled House Bill 5025), collected or received by the Oregon Health Authority, is in-
creased by $271,818 to carry out the provisions of sections 1 and 2 of this 2025 Act.
SECTION 7.
Sections 1 and 2 of this 2025 Act are repealed on January 2, 2027.
SECTION 8. This 2025 Act being necessary for the immediate preservation of the public
peace, health and safety, an emergency is declared to exist, and this 2025 Act takes effect
on its passage.
Enrolled House Bill 2015 (HB 2015-B) Page 3
Passed by House June 18, 2025
..................................................................................
Timothy G. Sekerak, Chief Clerk of House
..................................................................................
Julie Fahey, Speaker of House
Passed by Senate June 23, 2025
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Rob Wagner, President of Senate
Received by Governor:
........................M.,........................................................., 2025
Approved:
........................M.,........................................................., 2025
..................................................................................
Tina Kotek, Governor
Filed in Office of Secretary of State:
........................M.,........................................................., 2025
..................................................................................
Tobias Read, Secretary of State
Enrolled House Bill 2015 (HB 2015-B) Page 4