Committee hears sponsor testimony on bill to shorten ADAMH contract notice, require data plan and criminalize uncertified recovery housing

The Ohio House Children and Human Services Committee on a first hearing received sponsor testimony on Senate Bill 138, which would shorten contract‑notice requirements between local Alcohol, Drug Addiction and Mental Health (ADAMH) boards and service providers, require a statewide data‑sharing and integration plan with the state behavioral health agency, and make operating or advertising uncertified recovery housing a first‑degree misdemeanor.

Senator Johnson, sponsor of the bill, told the committee the legislation is “the culmination of several years of work, research, and compromise” and that it focuses on three primary areas: contracting changes, a data‑sharing requirement with the state agency, and new enforcement for uncertified recovery housing. “The 120 day notice has been slashed in half to only needing at least 60 days notice if either party no longer wishes to enter into another contract,” he said, adding the bill would provide a six‑month runway after enactment for local boards and providers to adjust.

The bill directs the Ohio Department of Mental Health and Addiction Services (OhioMHAS) to collaborate with ADAMH boards to develop a data‑sharing and integration plan. “Data is the lifeblood of the ADAMH boards and everyone involved in recovery planning,” Senator Johnson said, arguing that better data will help boards “effectively serve residents.” He also said the bill would add enforcement by making it a misdemeanor of the first degree for recovery residences that operate or advertise without certification or accreditation.

Committee members pressed for implementation details. Representative Brownlee, a behavioral health provider, asked whether model approaches for measuring outcomes already exist or whether the state would be starting from scratch; Brownlee emphasized that investment will be needed so providers can capture and share consistent data. “There will need to be some investment for providers to be able to build up start using the new methods of data capture,” Brownlee said.

Representative Odioso asked about the bill’s changes to financial audit requirements. Under the provision described in testimony, ADAMH boards would no longer be required to conduct audits themselves; instead, boards would be required to review annual financial audit reports for each community addiction or community health service provider. Senator Johnson said that provision was one of the more complex compromise points and deferred finer details to agency and provider witnesses, noting stakeholders had hashed out that language during negotiations.

Several members sought detail on the bill’s continuum‑of‑care mapping and on whether an existing OhioMHAS interface referenced in the state budget would serve the bill’s data goals. Senator Johnson said the specific system “is evolving” and asked stakeholders and experts testifying later to describe technical and timeline specifics; he also warned that federal rules, including HIPAA and federal Medicaid requirements, present hurdles for data sharing that state agencies and providers must navigate.

Senator Johnson framed the bill as addressing both bad actors and the need for better coordination: he said some unregulated recovery operators have preyed on people with addiction and that local ADAMH boards currently lack authority to stop that conduct. He cited Scioto County as an example of an area that has been “a hotbed for some of these exploitative groups.” He also said the bill aims to balance local boards’ frontline knowledge with provider input and statewide coordination.

The hearing did not include a committee vote on Senate Bill 138; sponsor testimony concluded and members indicated the committee will follow up and hear more testimony in future meetings. Near the end of the session the committee approved the previous meeting’s minutes by unanimous consent with no objections and adjourned.

The committee will receive agency and provider witnesses in later hearings to address the technical questions members raised about audits, the data system, certification capacity and inspection/enforcement resources for recovery housing.