AHS proposes integrating clinical substance-use functions into DMH but pauses legislative push

Agency of Human Services presenters told the Senate Committee on Government Operations that one of the reportrecommendations under consideration is to move clinical substance-use functions into the Department of Mental Health to reduce duplication for clients and providers.

"There are two different provider systems and two different billing systems within this space," the lead AHS presenter said, describing the client-facing complexity that prompted the recommendation. AHS recommended integration of clinical substance-use functions into the Department of Mental Health (DMH) as a potential improvement but said it was not submitting a legislative ask during this session.

Brenda Natwood, identified in the hearing as a policy director with AHS, told senators the agency is beginning due diligence and stakeholder outreach to assess timing, clinical and financial impacts and potential unintended consequences. "The speed in which we do this, what the specific steps are...and the due diligence to work with stakeholders and folks within the agency and the departments is all forthcoming," Natwood said.

Committee members pressed whether the agency would move forward without a bill and noted internal pushback from providers and staff. One senator said the committee should be notified and given full information before any changes are made. AHS responded that it will consult legislators and stakeholders and aims to avoid "wasting the legislatures time" by bringing proposals prematurely.

Next steps: AHS said it will continue internal analysis, consult clinical and finance staff as well as providers, and report back to the committee before pursuing statutory changes. The agency did not set a timeline for filing any legislation and said it may pursue administrative steps that do not require a bill.

This account is based on committee testimony and Q&A with AHS staff during the Feb. 4, 2026 hearing.