LB 454 — Change provisions relating to regional behavioral health authorities and the Behavioral Health Services Fund

ER83 ER83 LB454 LB454 MLU2025 -LEGISLATIVE 05/13/2025BILL MLU454 -Approved 05/13/2025by Ethe ANDGovernor RJune AMENDMENTS4, TO2025 LB 454   Introduced by Guereca,Quick, 7,35. Chairman Enrollment and Review 1.

On  pageA 1,BILL strikeFOR beginningAN withACT "powers" in line 3 through "authorities" in line 4 and insert "provisions relating to regionalpublic behavioral health authorities and thewelfare; Behavioral Health Services Fund".

-1-to amend section 71-809, Reissue Revised Statutes of Nebraska, and section 71-812, Revised Statutes Cumulative Supplement, 2024;

to change provisions relating to regional behavioral health authorities and the Behavioral Health Services Fund;

and to repeal the original sections.

Be it enacted by the people of the State of Nebraska, Section 1.

Section 71-809, Reissue Revised Statutes of Nebraska, is amended to read:

71-809 (1) Each regional behavioral health authority shall be responsible for the development and coordination of publicly funded behavioral health services within the behavioral health region pursuant to rules and regulations adopted and promulgated by the department, including, but not limited to, (a) administration and management of the regional behavioral health authority, (b) integration and coordination of the public behavioral health system within the behavioral health region, (c) comprehensive planning for the provision of an appropriate array of community-based behavioral health services and continuum of care for the region, (d) submission for approval by the division of an annual budget and a proposed plan for the funding and administration of publicly funded behavioral health services within the region, (e) submission of annual reports and other reports as required by the division, (f) initiation and oversight of contracts for the provision of publicly funded behavioral health services, and (g) coordination with the division in conducting audits of publicly funded behavioral health programs and services.

(2) Each regional behavioral health authority shall adopt a policy for use in determining the financial eligibility of all consumers and shall adopt a uniform schedule of fees and copays, based on the policy and schedule developed by the division, to be assessed against consumers utilizing community-based behavioral health services in the region.

The methods used to determine the financial eligibility of all consumers shall take into account taxable income, the number of family members dependent on the consumer's income, liabilities, and other factors as determined by the division.

The policy and the schedule of fees and copays shall be approved by the regional governing board and included with the budget plan submitted to the division annually.

Providers shall charge fees consistent with the schedule of fees and copays in accordance with the financial eligibility of all consumers but not in excess of the actual cost of the service.

Each regional behavioral health authority shall assure that its policy and schedule of fees and copays are applied uniformly by the providers in the region.

(3) Except for services being provided by a regional behavioral health authority on July 1, 2004, under applicable state law in effect prior to such date, no regional behavioral health authority shall provide behavioral health services funded in whole or in part with revenue received and administered by the division under the Nebraska Behavioral Health Services Act unless:

(a) There has been a public competitive bidding process for such services or the process is authorized pursuant to subsection (5) of this section;

(b) There are no qualified and willing providers to provide such services;

and (c) The regional behavioral health authority receives written authorization from the director and enters into a contract with the division to provide such services.

(4) Each regional behavioral health authority shall comply with all applicable rules and regulations of the department relating to the provision of behavioral health services by such authority, including, but not limited to, rules and regulations which (a) establish definitions of conflicts of interest for regional behavioral health authorities and procedures in the event such conflicts arise, (b) establish uniform and equitable public bidding procedures for such services, and (c) require each regional behavioral health authority to establish and maintain a separate budget and separately account for all revenue and expenditures for the provision of such services.

(5) A behavioral health services provider may, with approval by the department, provide new behavioral health services or expand the capacity of existing services if the provider (a) meets the department's required network enrollment standards, (b) is enrolled as a network provider with the department and a regional behavioral health authority, and (c) is contracted with a regional behavioral health authority.

Sec.

2.

Section 71-812, Revised Statutes Cumulative Supplement, 2024, is amended to read:

71-812 (1) The Behavioral Health Services Fund is created.

The fund shall be administered by the division and shall contain cash funds appropriated by the Legislature or otherwise received by the department for the provision of behavioral health services from any other public or private source and directed by the Legislature for credit to the fund.

Transfers may be made from the fund -1- LB454 LB454 2025 to the General Fund at the direction of the Legislature.

(2) The Behavioral Health Services Fund shall be used to encourage and facilitate the statewide development and provision of community-based behavioral health services, including, but not limited to, (a) the provision of grants, loans, and other assistance for such purpose and (b) reimbursement to providers of such services.

(3)(a) Money transferred to the fund under section 76-903 shall be used for housing-related assistance for very low-income adults with serious mental illness or substance abuse disorder, except that if the division determines that all housing-related assistance obligations under this subsection have been fully satisfied, the division may distribute any excess, up to twenty percent of such money, to regional behavioral health authorities for acquisition or rehabilitation of housing to assist such persons.

The division shall manage and distribute such funds based upon a formula established by the division, in consultation with regional behavioral health authorities and the department, in a manner consistent with and reasonably calculated to promote the purposes of the public behavioral health system enumerated in section 71-803.

The division shall contract with each regional behavioral health authority for the provision of such assistance.

Each regional behavioral health authority may contract with qualifying public, private, or nonprofit entities for the provision of such assistance.

(b) For purposes of this subsection:

(i) Adult with serious mental illness means a person eighteen years of age or older who has, or at any time during the immediately preceding twelve months has had, a diagnosable mental, behavioral, or emotional disorder of sufficient duration to meet diagnostic criteria identified in the most recent edition of the Diagnostic and Statistical Manual of Mental Disorders and which has resulted in functional impairment that substantially interferes with or limits one or more major life functions.

Serious mental illness does not include DSM V codes, substance abuse disorders, or developmental disabilities unless such conditions exist concurrently with a diagnosable serious mental illness;

(ii) Housing-related assistance includes rental payments, utility payments, security and utility deposits, landlord risk mitigation payments, and other related costs and payments;

(iii) Landlord risk mitigation payment means a payment provided to a landlord who leases or rents property to a very low-income adult with serious mental illness which may be used to pay for excessive damage to the rental property, any lost rent, any legal fees incurred by the landlord in excess of the security deposit, or any other expenses incurred by the landlord as a result of leasing or renting the property to such individual;

and (iv) Very low-income means a household income of fifty percent or less of the applicable median family income estimate as established by the United States Department of Housing and Urban Development.

(4) Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Sec.

3.

Original section 71-809, Reissue Revised Statutes of Nebraska, and section 71-812, Revised Statutes Cumulative Supplement, 2024, are repealed.