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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 1195
Sponsored by COMMITTEE ON EARLY CHILDHOOD AND BEHAVIORAL HEALTH
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced. The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act tells OHA to make new rules and study certain residential mental health set-
tings. (Flesch Readability Score: 61.8).
Directs the Oregon Health Authority to conduct studies and adopt rules relating to residential
treatment facilities, residential treatment homes, secure residential treatment facilities and secure
residential treatment homes. Requires the authority to report findings and recommendations to the
Legislative Assembly.
Sunsets on January 2, 2027.
Declares an emergency, effective on passage.
A BILL FOR AN ACT
Relating to residential behavioral health services; 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:
NOTE:Matter in boldfaced type in an amended section is new; matter [ italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 4699
SB 1195
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(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.
(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.
(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.
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SB 1195
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(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) Allow a new residential treatment facility or residential treatment home to accept a
conditional referral of a prospective resident before the licensure process has been com-
pleted, subject to a requirement that the prospective resident may not be placed in the new
residential treatment facility or residential treatment home until the licensure process has
been completed.
(b) Support facilities in developing early transition plans for residents.
(c) 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-
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.
Sections 1 and 2 of this 2025 Act are repealed on January 2, 2027.
SECTION 4. 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.
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