HB 1854: Department of Health; Community Behavioral Health Clinics Certifying Office; Oversight Board; Hawaii Advisory Commission on Drug Abuse and Controlled Substances; Appropriation

A BILL FOR AN ACT

RELATING TO COMMUNITY BEHAVIORAL HEALTH CLINICS.

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

     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

     §   -1  Purpose.  The purpose of this chapter is to establish a community behavioral health clinics 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.

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

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

     "Certified community behavioral health clinic" means a behavioral health clinic that meets the criteria established by the federal Substance Abuse and Mental Health Services Administration and has been certified by the office.

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

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

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

     §   -3  Establishment of the community behavioral health clinics certifying office; staff; duties.  (a)  There is established a community behavioral health clinics certifying office within the department of health for administrative purposes only.  The office shall be headed by an executive director, who shall be appointed by the board and shall be exempt from chapter 76.  The executive director shall have experience in health care administration and behavioral health.

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

     (1)  One full-time quality manager;

     (2)  One full-time financial analyst;

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

     (4)  One full-time evaluator; and

     (5)  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.

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

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

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

          (B)  Creating and maintaining certification criteria for community behavioral health clinics; provided that the certification criteria shall be no less stringent than that required by the federal Substance Abuse and Mental Health Services Administration;

          (C)  Certifying and decertifying community behavioral health clinics;

          (D)  Monitoring compliance with certification requirements and requiring corrective action, including corrective action plans, and when necessary, the imposition of conditions, suspension, or decertification;

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

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

     (2)  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;

     (3)  Establish reasonable fees for certification application; and

     (4)  Adopt rules pursuant to chapter 91 to implement this chapter.

     §   -4  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 nine 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.  The members of the board shall include:

     (1)  One representative from each of the counties of Hawaii, Maui, Kauai, and the city and county of Honolulu, each of whom shall be a resident with lived experience in mental health or substance use conditions, or both;

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

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

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

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

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

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

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

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

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

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

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

     (1)  Review and comment upon:

          (A)  Clinic certification applications; and

          (B)  Any changes or modifications to certification criteria;

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

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

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

     (5)  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.

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

     §   -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.

     (b)  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.

     §   -6  Decertification; procedures.  (a)  The office shall adopt rules pursuant to chapter 91 to establish procedures governing the decertification of certified community behavioral health clinics.  The rules shall include:

     (1)  Provision of notice to a certified community behavioral health clinic of any proposed decertification, including the reasons for the proposed action;

     (2)  An opportunity for the certified community health clinic to respond to the proposed decertification, which may include submission of a corrective action plan;

     (3)  An opportunity for a hearing in accordance with chapter 91 after a final determination on decertification; and

     (4)  Procedures for the issuance of a final determination and order by the office.

     (b)  The office may establish additional requirements, time periods, and procedures necessary to implement this section.

     §   -7  Limitation of liability.  (a)  Certification of a community behavioral health clinic pursuant to this chapter indicates that the clinic has met applicable certification requirements at the time of review and shall not be construed as an assurance of ongoing compliance or the outcomes of services provided.

     (b)  Each certified community behavioral health clinic shall remain responsible for compliance with applicable federal and state laws and for the care and services provided to its patients.

     (c)  The State's role in certifying and overseeing community behavioral health clinics in this chapter shall be limited to the administration of the certification program and shall not be construed to expand the State's obligations beyond those expressly provided by this chapter."

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

     "§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] no more than fifteen [nor] and no 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 clinics certifying office established by section    -3.  The commission shall elect a chairperson from among its members.  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."

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $300,000 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 an executive director for the community behavioral health clinics certifying office established pursuant to this Act.

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

     SECTION 4.  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.

     SECTION 5.  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 adopted under this Act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the State.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 2026.

Report Title:

Department of Health; Community Behavioral Health Clinics Certifying Office; Oversight Board; Hawaii Advisory Commission on Drug Abuse and Controlled Substances; Appropriation

Description:

Establishes the Community Behavioral Health Clinics Certifying Office to certify and decertify community behavioral health clinics and provide technical assistance for clinics seeking certification.  Establishes the Certified Community Behavioral Health Clinics Oversight Board.  Amends the composition of the Advisory Commission on Drug Abuse and Controlled Substances to include a member from the Community Behavioral Health Clinics Certifying Office.  Appropriates funds.  (CD1)

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

A BILL FOR AN ACT

RELATING TO COMMUNITY BEHAVIORAL HEALTH CLINICS.

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

     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

     §   -1  Purpose.  The purpose of this chapter is to establish a community behavioral health clinics 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.

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

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

     "Certified community behavioral health clinic" means a behavioral health clinic that meets the criteria established by the federal Substance Abuse and Mental Health Services Administration and has been certified by the office.

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

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

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

     §   -3  Establishment of the community behavioral health clinics certifying office; staff; duties.  (a)  There is established a community behavioral health clinics certifying office within the department of health for administrative purposes only.  The office shall be headed by an executive director, who shall be appointed by the board and shall be exempt from chapter 76.  The executive director shall have experience in health care administration and behavioral health.

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

     (1)  One full-time quality manager;

     (2)  One full-time financial analyst;

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

     (4)  One full-time evaluator; and

     (5)  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.

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

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

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

          (B)  Creating and maintaining certification criteria for community behavioral health clinics; provided that the certification criteria shall be no less stringent than that required by the federal Substance Abuse and Mental Health Services Administration;

          (C)  Certifying and decertifying community behavioral health clinics;

          (D)  Monitoring compliance with certification requirements and requiring corrective action, including corrective action plans, and when necessary, the imposition of conditions, suspension, or decertification;

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

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

     (2)  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;

     (3)  Establish reasonable fees for certification application; and

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

     §   -4  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 nine 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.  The members of the board shall include:

     (1)  One representative from each of the counties of Hawaii, Maui, Kauai, and the city and county of Honolulu, each of whom shall be a resident with lived experience in mental health or substance use conditions, or both;

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

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

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

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

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

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

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

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

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

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

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

     (1)  Review and comment upon:

          (A)  Clinic certification applications; and

          (B)  Any changes or modifications to certification criteria;

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

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

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

     (5)  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.

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

     §   -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.

     (b)  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.

     §   -6  Decertification; procedures.  (a)  The office shall establish, by rule adopted pursuant to chapter 91, procedures governing the decertification of certified community behavioral health clinics.  The rules shall include:

     (1)  Provision of notice to a certified community behavioral health clinic of any proposed decertification, including the reasons for the proposed action;

     (2)  An opportunity for the certified community health clinic to respond to the proposed decertification, which may include submission of a corrective action plan;

     (3)  An opportunity for a hearing in accordance with chapter 91 after a final determination on decertification; and

     (4)  Procedures for the issuance of a final determination and order by the office.

     (b)  The office may establish additional requirements, time periods, and procedures necessary to implement this section.

     §   -7  Limitation of liability.  (a)  Certification of a community behavioral health clinic pursuant to this chapter indicates that the clinic has met applicable certification requirements at the time of review and shall not be construed as an assurance of ongoing compliance or the outcomes of services provided.

     (b)  Each certified community behavioral health clinic shall remain responsible for compliance with applicable federal and state laws and for the care and services provided to its patients.

     (c)  The State's role in certifying and overseeing community behavioral health clinics in this chapter shall be limited to the administration of the certification program and shall not be construed to expand the State's obligations beyond those expressly provided by this chapter."

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

     "§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] no 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 clinics certifying office established by section    -3.  The commission shall elect a chairperson from among its members.  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."

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

     "(a)  There is established, within the department of health for administrative purposes, a state council on mental health.  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.  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.  The council shall be composed of residents of the State, including individuals representing:

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

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

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

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

     (5)  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

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

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           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 clinics certifying office established pursuant to this Act.

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

     SECTION 5.  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.

     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 adopted under this Act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the State.

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

     SECTION 8.  This Act shall take effect on July 1, 3000.

Report Title:

Department of Health; Community Behavioral Health Clinics Certifying Office; Oversight Board; Hawaii Advisory Commission on Drug Abuse and Controlled Substances; State Council on Mental Health; Appropriation

Description:

Establishes the Community Behavioral Health Clinics Certifying Office to certify and decertify community behavioral health clinics and provide technical assistance for clinics seeking certification.  Establishes the Certified Community Behavioral Health Clinics Oversight Board.  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 Clinics Certifying Office.  Establishes decertification process.  Limits state liability.  Appropriates funds.  Effective 7/1/3000.  (SD2)

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

A BILL FOR AN ACT

RELATING TO COMMUNITY BEHAVIORAL HEALTH CLINICS.

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

     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

     §   -1  Purpose.  The purpose of this chapter is to establish a community behavioral health clinics 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.

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

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

     "Certified community behavioral health clinic" means a behavioral health clinic that meets the criteria established by the federal Substance Abuse and Mental Health Services Administration and has been certified by the office.

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

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

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

     §   -3  Establishment of the community behavioral health clinics certifying office; staff; duties.  (a)  There is established a community behavioral health clinics certifying office within the department of health for administrative purposes only.  The office shall be headed by an executive director, who shall be appointed by the board and shall be exempt from chapter 76.  The executive director shall have experience in health care administration and behavioral health.

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

     (1)  One full-time quality manager;

     (2)  One full-time financial analyst;

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

     (4)  One full-time evaluator; and

     (5)  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.

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

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

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

          (B)  Creating and maintaining certification criteria for community behavioral health clinics; provided that the certification criteria shall be no less stringent than that required by the federal Substance Abuse and Mental Health Services Administration;

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

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

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

     (2)  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;

     (3)  Establish reasonable fees for certification application; and

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

     §   -4  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 nine 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.  The members of the board shall include:

     (1)  One representative from each of the counties of Hawaii, Maui, Kauai, and the city and county of Honolulu, each of whom shall be a resident with lived experience in mental health or substance use conditions, or both;

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

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

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

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

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

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

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

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

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

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

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

     (1)  Review and comment upon:

          (A)  Clinic certification applications; and

          (B)  Any changes or modifications to certification criteria;

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

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

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

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

     (6)  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.

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

     §   -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.

     (b)  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."

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

     "§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] no 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 clinics certifying office established by section    -3.  The commission shall elect a chairperson from among its members.  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."

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

     "(a)  There is established, within the department of health for administrative purposes, a state council on mental health.  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.  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.  The council shall be composed of residents of the State, including individuals representing:

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

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

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

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

     (5)  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

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

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           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 clinics certifying office established pursuant to this Act.

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

     SECTION 5.  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.

     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 adopted under this Act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the State.

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

     SECTION 8.  This Act shall take effect on July 1, 3000.

Report Title:

Department of Health; Community Behavioral Health Clinics Certifying Office; Oversight Board; Hawaii Advisory Commission on Drug Abuse and Controlled Substances; State Council on Mental Health; Appropriation

Description:

Establishes the Community Behavioral Health Clinics 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.  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 Clinics Certifying Office.  Appropriates funds.  Effective 7/1/3000.  (SD1)

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

A BILL FOR AN ACT

RELATING TO COMMUNITY BEHAVIORAL HEALTH CLINICS.

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

     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

     §   -1  Purpose.  The purpose of this chapter is to establish a community behavioral health clinics 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.

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

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

     "Certified community behavioral health clinic" means a behavioral health clinic that meets the criteria established by the federal Substance Abuse and Mental Health Services Administration and has been certified by the office.

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

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

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

     §   -3  Establishment of the community behavioral health clinics certifying office; staff; duties.  (a)  There is established a community behavioral health clinics certifying office within the department of health for administrative purposes only.  The office shall be headed by an executive director, who shall be appointed by the board and shall be exempt from chapter 76.  The executive director shall have experience in health care administration and behavioral health.

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

     (1)  One full-time quality manager;

     (2)  One full-time financial analyst;

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

     (4)  One full-time evaluator; and

     (5)  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.

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

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

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

          (B)  Creating and maintaining certification criteria for community behavioral health clinics; provided that the certification criteria shall be no less stringent than that required by the federal Substance Abuse and Mental Health Services Administration;

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

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

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

     (2)  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;

     (3)  Establish reasonable fees for certification application; and

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

     §   -4  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 ten 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.  The members of the board shall include:

     (1)  One representative from each of the counties of Hawaii, Maui, Kauai, and the city and county of Honolulu, each of whom shall be a resident with lived experience in mental health or substance use conditions, or both;

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

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

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

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

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

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

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

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

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

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

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

     (1)  Review and comment upon:

          (A)  Clinic certification applications; and

          (B)  Any changes or modifications to certification criteria;

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

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

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

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

     (6)  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.

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

     §   -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.

     (b)  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."

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

     "§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] no 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 clinics certifying office established by section    -3.  The commission shall elect a chairperson from among its members.  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."

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

     "(a)  There is established, within the department of health for administrative purposes, a state council on mental health.  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.  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.  The council shall be composed of residents of the State, including individuals representing:

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

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

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

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

     (5)  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

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

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           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 clinics certifying office established pursuant to this Act.

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

     SECTION 5.  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.

     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.

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

     SECTION 8.  This Act shall take effect on July 1, 3000.

Report Title:

Department of Health; Community Behavioral Health Clinics Certifying Office; Oversight Board; Hawaii Advisory Commission on Drug Abuse and Controlled Substances; State Council on Mental Health; Appropriation

Description:

Establishes the Community Behavioral Health Clinics 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.  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 Clinics Certifying Office.  Appropriates funds.  Effective 7/1/3000.  (HD1)

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

A BILL FOR AN ACT

relating to community behavioral health clinics.

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

     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

     §   -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.

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

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

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

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

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

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

     §   -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.  The office shall be headed by an executive director, who shall be appointed by the board and shall be exempt from chapter 76.  The executive director shall have experience in health care administration and behavioral health.

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

     (1)  One full-time quality manager;

     (2)  One full-time financial analyst;

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

     (4)  One full-time evaluator; and

     (5)  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.

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

     (1)  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;

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

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

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

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

     (2)  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;

     (3)  Establish reasonable fees for certification application; and

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

     §   -4  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.  The members of the board shall include:

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

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

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

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

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

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

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

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

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

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

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

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

     (1)  Review and comment upon:

          (A)  Clinic certification applications; and

          (B)  Any changes or modifications to certification criteria;

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

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

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

     (5)  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

     (6)  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.

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

     §   -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.

     (b)  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.

     §   -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:

     (1)  All fees collected under this chapter; and

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

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

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

     "§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.  The commission shall elect a chairperson from among its members.  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."

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

     "(a)  There is established, within the department of health for administrative purposes, a state council on mental health.  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.  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.  The council shall be composed of residents of the State, including individuals representing:

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

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

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

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

     (5)  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

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

     SECTION 4.  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.

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

     SECTION 5.  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.

     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.

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

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

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.

STAND. COM. REP. NO.  850-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1854

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Finance, to which was referred H.B. No. 1854, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO COMMUNITY BEHAVIORAL HEALTH CLINICS,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Establish and appropriate funds for the Community Behavioral Health Clinics Certifying Office to certify community behavioral health clinics and provide technical assistance for clinics seeking certification;

     (2)  Establish the Certified Community Behavioral Health Clinics Oversight Board; and

     (3)  Amend 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 Clinics Certifying Office.

     Your Committee received testimony in support of this measure from the Department of Health and State Council on Mental Health. Your Committee received testimony in opposition to this measure from the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1854, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

STAND. COM. REP. NO.  350-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 1854

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Health, to which was referred H.B. No. 1854 entitled:

"A BILL FOR AN ACT RELATING TO COMMUNITY BEHAVIORAL HEALTH CLINICS,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Establish the Community Behavioral Health Clinics Certifying Office to certify community behavioral health clinics and provide technical assistance for clinics seeking certification;

     (2)  Establish the Certified Community Behavioral Health Clinics Oversight Board;

     (3)  Establish the Certified Community Behavioral Health Clinics Special Fund; and

     (4)  Amend 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 Clinics Certifying Office.

     Your Committee received testimony in support of this measure from the Department of Health; Department of Human Services; State Council on Mental Health; and two individuals.  Your Committee received comments on this measure from the Department of the Attorney General.

     Your Committee finds that establishing a statewide certification and oversight framework for certified community behavioral health clinics will strengthen the delivery, coordination, and accountability of mental health and substance use services.  Your Committee further finds that creating a certifying office, prospective payment system, and an oversight board will promote consistency, ensure federal compliance, and support equitable access to behavioral health care across the State.  This measure will address gaps in services, improve coordination among providers, and support long‑term system sustainability.

     Your Committee has amended this measure by:

     (1)  Clarifying that the criteria for certifying a community behavioral health clinic shall be no less stringent than that required by the federal Substance Abuse and Mental Health Services Administration;

     (2)  Amending the composition of the Certified Community Behavioral Health Clinics Oversight Board to include a representative from each of the counties who have a lived experience of mental health or substance use issues;

     (3)  Deleting the Special Fund;

     (4)  Changing the appropriation to an unspecified amount;

     (5)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (6)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider an appropriation amount of $800,000.

     As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1854, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1854, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Health,