As Introduced

136th General Assembly

Regular Session H. B. No. 515

2025-2026

To amend sections 340.02 and 340.036 of the Revised Code regarding the composition of boards of alcohol, drug addiction, and mental health services and regarding board contracts.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 340.02 and 340.036 of the Revised Code be amended to read as follows:

Sec. 340.02. (A) For each alcohol, drug addiction, and mental health service district, there shall be appointed a board of alcohol, drug addiction, and mental health services. As provided in this section, the board shall consist of eighteen members, fifteen members, fourteen members, twelve members, or nine members.

In a single-county district, the size of the board shall be determined by the board of county commissioners representing the county that constitutes the district. In a joint-county district, the size of the board shall be determined jointly by all of the boards of county commissioners representing the counties that constitute the district.

The determination of board size shall be made by selecting one of the options described in division (B) of this section. After an option is selected and implemented, a subsequent determination of board size may be made, except that subsequent determinations shall not occur more frequently than once every four calendar years.

If a selected option would result in a change in board size, before the option may be implemented the board of county commissioners or boards of county commissioners, as the case may be, shall send a representative to a meeting of the board of alcohol, drug addiction, and mental health services to solicit feedback about the matter. After considering any feedback received, the board or boards of county commissioners may proceed with implementing the change in board size. If the change results in a reduction of board members, the reduction shall be implemented by not filling vacancies as they occur.

To implement a selected option that would result in the establishment of a new board of alcohol, drug addiction, and mental health services or in a change in size of an existing board, the board or boards of county commissioners, as the case may be, shall adopt a resolution specifying the board size that has been selected. The board or boards of county commissioners also shall notify the department of behavioral health of the board size that has been selected.

(B)(1) In the case of a board of alcohol, drug addiction, and mental health services that is established on or after October 3, 2023, any of the following options may be selected for purposes of division (A) of this section:

(a) To establish the board as an eighteen-member board;

(b) To establish the board as a fifteen-member board;

(d) To establish the board as a twelve-member board;

(e) To establish the board as a nine-member board;

(f) To change the board's size after it has been established by selecting a number of members that is eighteen, fifteen, fourteen, twelve, or nine, as the case may be.

(2) In the case of a board of alcohol, drug addiction, and mental health services that existed immediately prior to October 3, 2023, either of the following options may be selected for purposes of division (A) of this section:

(a) To continue the board's operation as an eighteen-member or fourteen-member board, as a board of that size was authorized prior to October 3, 2023, in which case no further action is required;

(b) To change the board's size by selecting a number of members that is eighteen, fifteen, fourteen, twelve, or nine as the case may be.

(C) All members shall be residents of the service district. The membership shall, as nearly as possible, reflect the ~~composition~~ political party preferences of the population of the service district ~~as to race and sex~~, based on state and federal partisan general election results in the service district during the last ten years.

The director of behavioral health shall appoint one-third of the members of the board and the board of county commissioners shall appoint two-thirds of the members. In a joint-county district, the board of county commissioners of each participating county shall appoint members in as nearly as possible the same proportion as that county's population bears to the total population of the district, except that at least one member shall be appointed from each participating county.

The director of behavioral health shall ensure that at least one member of the board is a clinician with experience in the delivery of mental health services, at least one member of the board is a person who has received or is receiving mental health services, at least one member of the board is a parent or other relative of such a person, at least one member of the board is a clinician with experience in the delivery of addiction services, at least one member of the board is a person who has received or is receiving addiction services, and at least one member of the board is a parent or other relative of such a person. A single member who meets both qualifications may fulfill the requirement for a clinician with experience in the delivery of mental health services and a clinician with experience in the delivery of addiction services.

No member or employee of a board of alcohol, drug addiction, and mental health services shall serve as a member of the board of any provider with which the board of alcohol, drug addiction, and mental health services has entered into a contract for the provision of services or facilities. No member of a board of alcohol, drug addiction, and mental health services shall be an employee of any provider with which the board has entered into a contract for the provision of services or facilities. No person shall be an employee of a board and such a provider unless the board and provider both agree in writing.

No person shall serve as a member of the board of alcohol, drug addiction, and mental health services whose spouse, child, parent, brother, sister, grandchild, stepparent, stepchild, stepbrother, stepsister, father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law serves as a member of the board of any provider with which the board of alcohol, drug addiction, and mental health services has entered into a contract for the provision of services or facilities. No person shall serve as a member or employee of the board whose spouse, child, parent, brother, sister, stepparent, stepchild, stepbrother, stepsister, father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law serves as a county commissioner of a county or counties in the alcohol, drug addiction, and mental health service district.

Each year each board member shall attend at least one inservice training session provided or approved by the department of behavioral health.

Each member shall be appointed for a term of four years, commencing the first day of July, except that when a board is established on or after October 3, 2023, the initial appointments shall be staggered among the members as equally as possible with terms of two years, three years, and four years.

No member shall serve more than two consecutive four-year terms under the same appointing authority. A member may serve for three consecutive terms under the same appointing authority only if one of the terms is for less than two years. A member who has served two consecutive four-year terms or three consecutive terms totaling less than ten years is eligible for reappointment by the same appointing authority one year following the end of the second or third term, respectively.

When a vacancy occurs, appointment for the expired or unexpired term shall be made in the same manner as an original appointment. The board shall notify the appointing authority either by certified mail or, if the board has record of an internet identifier of record associated with the authority, by ordinary mail and by that internet identifier of record of any vacancy and shall fill the vacancy within sixty days following that notice. As used in this paragraph, "internet identifier of record" has the same meaning as in section 9.312 of the Revised Code.

Any member of the board may be removed from office by the appointing authority at will. Before a member may be removed at will, the member shall be informed in writing of the proposed removal and afforded an opportunity for a public hearing. Upon the absence of a member within one year from either four board meetings or from two board meetings without prior notice, the board shall notify the appointing authority, which may vacate the appointment and appoint another person to complete the member's term.

Members of the board shall serve without compensation, but shall be reimbursed for actual and necessary expenses incurred in the performance of their official duties, as defined by rules of the department of behavioral health.

Sec. 340.036. (A) Subject to division (B) of this section and rules adopted by the director of behavioral health after consultation with relevant constituencies as required by division (A)(10) of section 5119.21 of the Revised Code, each board of alcohol, drug addiction, and mental health services shall provide for the continuum of care pursuant to section 340.032 of the Revised Code by entering into contracts with all of the following:

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

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

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

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

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

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

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

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

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

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

(b) Continuity of care.

(2) The board may review cost elements specific to the provider's services and supports under contract with the board.

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

(4) The board may contract with a government entity, for-profit entity, or nonprofit entity. Any such entity may be faith-based. No board shall deny a contract to or refuse to contract with a for-profit entity or nonprofit entity, including a faith-based entity, based solely on the entity's for-profit or nonprofit status.

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

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

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

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

(D) If a party to a contract entered into under this section intends not to enter into a contract for a subsequent term, the other party shall be given written notice at least sixty days before the expiration date of the current contract. If neither party provides such notice, a subsequent contract shall be entered into upon successful negotiation of contract terms.

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

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

(2) Eligibility criteria for applicants;

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

(4) Selection criteria;

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

Section 2. That existing sections 340.02 and 340.036 of the Revised Code are hereby repealed.

Section 3. The version of section RC 340.036 of the Revised Code that is scheduled to take effect March 30, 2026, is presented in this act as a composite of the section as amended by both H.B. 96 and S.B. 138 of the 136th General Assembly. The General Assembly, applying the principle stated in division (B) of section 1.52 of the Revised Code that amendments are to be harmonized if reasonably capable of simultaneous operation, finds that the composite is the resulting version of the section in effect prior to the effective date of the section as presented in this act.