Senate amends mental‑health grant bill, shrinks $105M ask to $64M and adds service-term requirement

The Senate Appropriations Committee approved an amended version of Senate Bill 2‑096 that would provide state grant funding to encourage regional acute psychiatric care delivered by private providers instead of building large state facilities.

Senator Matherne, the bill sponsor, said the bill aims to expand local access to acute psychiatric services and reduce trauma associated with out‑of‑area transfers. “People getting treatment in their community closer to their home provides an atmosphere wherein they have a better chance of maintaining wellness throughout their lives,” Matherne said during committee remarks.

Major amendment and program rules: The committee adopted an amendment that reduced the bill’s appropriation from an initial $105 million request down to $64 million. The amendment also tightened grant terms: any grant to a private provider must be accompanied by a contract requiring the provider to deliver mental‑health services for at least 10 years.

Committee debate and related legislation: Committee members discussed how SB 2‑096 intersects with other pending measures, including a House‑sponsored proposal (referred to in committee as HB 14‑68) that would appropriate $16 million to a single hospital project. Senator Davison, who said he voted against SB 2‑096 in subcommittee, urged caution and recommended that some of these proposals be handled through the main human services budget (the transcript references the Human Services budget bill, 10/12). Members also debated geographic scope after an amendment inserted the word “quadrant” to indicate the grants would be awarded across four broad regions rather than strictly by the eight human‑services regions; sponsors said that would allow cooperation between two adjoining service areas (for example, Minot and Williston in the northwest).

Fiscal and program considerations: The amendment reduced the statewide appropriation to $64 million and added eligibility and contracting language to ensure grants fund services (not simply construction) and that providers commit to multi‑year service. Committee members raised concerns about whether the money would be allocated to a single large project or spread across multiple regional projects; supporters argued the language allows the department to negotiate with providers and structure cooperative projects across service areas.

Committee vote: The committee recorded a close final roll call on the due‑pass recommendation for SB 2‑096 as amended; the committee recorded the final outcome in its minutes as ‘‘Motion passed’’ and the transcript references the numerical committee tally as 9 yes, 7 no (noted in committee roll call as “Motion passed 970” in the transcript). The committee adopted the amendment earlier in the hearing and then recommended the bill move forward as amended.

Next steps: The bill will be carried forward by Senator Matherne and is likely to receive further scrutiny when the human services budget returns to the Senate later in the session. Committee members signaled they would continue to compare SB 2‑096 with the large state hospital request contained in the broader human services budget to decide how best to align state investments.