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LB 454

Change provisions relating to regional behavioral health authorities and the Behavioral Health Services Fund

109th Legislature (2025-2026) Introduced by Dan Quick

LB 454 lets DHHS-approved providers expand behavioral health services without new bids and adds housing-related aid for very low‑income adults with substance use disorders.

Approved by Governor on June 4, 2025
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Bill Summary · LB 454

Summary — LB 454 (2025)

Title: Change provisions relating to regional behavioral health authorities and the Behavioral Health Services Fund
Status: Enacted — Approved by Governor June 4, 2025
Introduced: January 21, 2025 (Sen. Dan Quick)
Statutes amended: Neb. Rev. Stat. §71‑809 and §71‑812

Purpose

LB 454 revises how regional behavioral health authorities (RBHAs) may contract for behavioral health services and expands allowable uses of the Behavioral Health Services Fund to include housing-related assistance for very low‑income adults with substance abuse disorder (in addition to adults with serious mental illness).

Key provisions

  • Contracting/competitive bidding (§71‑809)

    • Reframes the exceptions to the general requirement that RBHAs use a public competitive bidding process before providing behavioral health services themselves.
    • Authorizes a behavioral health services provider, with department (DHHS/division) approval, to:
    • provide new behavioral health services or
    • expand capacity of existing services, if the provider (a) meets the department’s network enrollment standards, (b) is enrolled as a network provider with the department and the RBHA, and (c) is contracted with the RBHA.
    • Maintains the RBHA obligation to comply with applicable department rules (conflict‑of‑interest, bidding procedures, separate budgeting/accounting).
    • Note: Earlier drafts included a one‑year pilot‑project path; that pilot language was removed in amendments adopted prior to final enactment.

  • Behavioral Health Services Fund (§71‑812)

    • Money transferred to the Behavioral Health Services Fund under §76‑903 may now be used for housing‑related assistance for very low‑income adults with either:
    • serious mental illness, or
    • substance abuse disorder.
    • If housing obligations are fully satisfied, up to 20% of such monies may be distributed to RBHAs for acquisition or rehabilitation of housing to assist these persons.
    • Defines “housing‑related assistance” to include rental/utility payments, security deposits, landlord risk mitigation payments, and related costs; includes definitions for “adult with serious mental illness” and “very low‑income.”

Who is affected

  • Regional behavioral health authorities — contracting flexibility and ongoing compliance obligations with DHHS rules.
  • Behavioral health providers — may be able to start or expand services more quickly if they meet enrollment and contracting criteria.
  • Very low‑income adults with substance use disorder — newly eligible for housing‑related assistance funded from specified transfers.
  • Landlords and housing entities — potential recipients of risk‑mitigation payments and housing rehabilitation/acquisition funds.

Procedural/timeline notes

  • Advanced from Health & Human Services Committee with amendments (AM547 / AM952 incorporated during process).
  • Passed Legislature on Final Reading: 46–2–1.
  • Presented to Governor May 29, 2025; approved June 4, 2025.
  • Original statute language repealed and replaced as specified in the enacted bill.

Potential implications

  • Could speed availability/expansion of behavioral health services by allowing DHHS‑approved, enrolled providers to add services without a new full competitive bid process.
  • Expands housing support resources to include those with substance use disorder, potentially increasing access to housing‑stability interventions integrated with behavioral health services.
  • Retains departmental oversight via enrollment standards, approvals, contracts, and existing rulemaking authority.

Compiled from official sources — confirm details with the bill’s official record.

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