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Committee hears bill to create community-based rehabilitative residential mental health homes
Summary
Lawmakers heard testimony on AB514, a proposal to create licensed community-based rehabilitative residential mental health homes for young adults and adults. Medicaid staff outlined projected general fund and federal drawdown impacts; advocates including NAMI Nevada supported the measure.
The Nevada Senate Finance Committee heard testimony June 1 on Assembly Bill 514, which would create a licensed community-based rehabilitative residential mental health care model for young adults and adults and seek federal matching via a state plan amendment or waiver.
The bill’s sponsor, Assemblymember Tracy Brown, said the measure "comes from the joint interim standing committee on Health and Human Services" and is intended to help the state comply with a Department of Justice ruling while expanding rehabilitative residential services in community settings.
Stacey Weeks of the Medicaid Division told the committee, "Everything in your bill right now in section 17.5 in the current reprint is accurate." Weeks gave the committee a fiscal overview: implementation-year general fund impact for 2025–26 of $30,800; a second figure for the same year of $551,899 (largely implementation and pursuing a waiver or a 1915(i) state plan amendment); an estimated federal drawdown thereafter; $92,400 for 2026; and $1,000,639.954 for 2027. Weeks said much of the longer-term cost would be offset by federal matching once the state obtains the appropriate federal authority.
Assemblymember Brown characterized the proposal as "community based living" and said the model is meant to be a community-based rehabilitative approach rather than an institutional setting. Senator Titus asked about licensing and whether a new license type would be required. Weeks confirmed the bill creates a new provider license type and said the population’s needs justify stricter licensure standards.
Sarah Adler of NAMI Nevada testified in support, saying the bill "will be a great assist to our community." No callers registered opposition or neutral testimony during the hearing.
The committee closed the AB514 hearing after limited questions and moved on to the next agenda item.
Implementation details: sponsors and Medicaid staff said the state will pursue either a Medicaid waiver or a 1915(i) state plan amendment to obtain federal matching. The bill language in the reprint locates the core provisions in section 17.5.
The hearing record does not show a committee vote on the measure at this meeting.
