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GM 1246

Informing the Legislature that on June 25, 2026, the Governor signed the following bill into law: HB1854 HD1 SD2 CD1 (ACT 145).

2026 Regular Session

Establishes a state-run Office to certify, fund (via a prospective payment system), and oversee certified community behavioral health clinics to standardize access to mental health

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Bill Summary · GM 1246

Comprehensive Summary of GM 1246 (HB 1854, CD1) – Hawaii, 2026

Purpose and intent

  • Establish a formal state framework for certified community behavioral health clinics (CCBHCs) to improve consistency, quality, and accessibility of mental health and substance use services across Hawaii.
  • Create a dedicated office within the Department of Health to certify clinics, maintain a prospective payment system, set criteria, and provide technical assistance to clinics seeking certification.
  • Establish an oversight board to review certifications, coordinate resources, and advocate for service needs.

Key provisions and changes

  • New Chapter: Certified Community Behavioral Health Clinics (CCBHCs)

    • Adds a new chapter to Hawaii Revised Statutes (Title 19) to govern the certification and oversight of community behavioral health clinics.
    • Defines:
    • “Certified community behavioral health clinic” as a clinic meeting federal criteria and certified by the new Office.
    • “Office” as the CCBHC certifying office within the Department of Health.
    • Prospective payment system, to be used for reimbursement.
    • Establishes the CCBHC certifying office with administrative structure, led by an executive director (appointed by the board; exempt from civil service).
    • Staffing requirements for the Office (examples):
    • Quality manager, financial analyst, administrative assistant, evaluator, data engineer (all exempt from chapter 76 and at the executive director’s pleasure).
    • Powers and duties of the Office:
    • Administer the CCBHC program, including:
      • Develop and maintain the prospective payment system (PPS) and cost report analysis.
      • Create and maintain certification criteria at least as stringent as federal requirements.
      • Certify and decertify clinics.
      • Monitor compliance and impose corrective actions, including suspension or decertification when necessary.
      • Provide technical assistance to clinics on certification and PPS.
      • Coordinate with government and private entities for federal compliance and data reporting.
    • Engage with stakeholders to ensure delivery of mental health and substance-use services statewide.
    • Set reasonable certification application fees.
    • Adopt rules to implement the chapter (pursuant to Hawaii’s administrative rules process).

  • CCBHC Oversight Board

    • Establishes the Certified Community Behavioral Health Clinics Oversight Board within the Department of Health.
    • Composition (nine voting members) appointed by the Governor; at least 50% must be residents of a county with population under 500,000.
    • Membership categories:
    • One representative from each county (Hawaii, Maui, Kauai, Honolulu) with lived experience in mental health or substance use.
    • Representatives from:
      • Federally Qualified Health Center (FQHC)
      • Substance use treatment provider
      • Adult mental health treatment provider
      • Inpatient psychiatric facility, inpatient acute care hospital, or hospital outpatient clinic
      • A board-certified physician in pediatrics or child psychiatry
    • Ex officio nonvoting members:
    • Governor or designee; Director of Health or designee; Superintendent of Education or designee; Administrator of Med-QUEST (Department of Human Services) or designee
    • Board duties:
    • Review and comment on clinic certification applications and changes to certification criteria.
    • Promote efficient use of federal, state, and private resources.
    • Identify service gaps and coordinate agency responsibilities.
    • Advocate for mental health/substance use needs before the legislature and public.
    • Support outreach to identify individuals and families in need of services, including crisis services.
    • Compensation: members serve without pay but may receive reasonable expenses.

  • Certification and operations

    • Clinics cannot operate as CCBHCs or seek PPS payments without state certification.
    • State can support department-operated mental health centers in meeting certification criteria.
    • The Office may establish additional requirements, timeframes, and procedures.

  • Advisory and related statutory changes

    • Amends Hawaii Revised Statutes §329-2 to include a member of the state advisory commission on drug abuse and controlled substances who has knowledge of mental health and substance use, and to designate a representative from the CCBHC certifying office as part of the commission’s structure. The commission remains part of the Department of Health for administrative purposes, with an ex officio nonvoting representative attending both the commission and the state council on mental health.

  • Funding and effective date

    • Appropriates $300,000 in general revenues for fiscal year 2026-2027 to implement the Act, including hiring an executive director for the Office.
    • Effective date: July 1, 2026.

Who/what is affected

  • Certified Community Behavioral Health Clinics: but only after Office certification and PPS establishment.
  • Department of Health: administrative home for the new Office and the Oversight Board.
  • Health and service providers: potential reliance on PPS payments and certification criteria; clinics seeking certification will interact with the Office.
  • Community members in Hawaii: broader access to standardized mental health and substance use services through certified clinics.
  • State advisory structures: advisory commission on drug abuse and controlled substances and the state council on mental health will interact with the new Office and board.

Procedural and timeline aspects

  • Establishment of the Office and Oversight Board, with staffing and rules to be developed under Chapter 91 (administrative rules).
  • Certification process for clinics, including possible decertification procedures with notice, opportunity to respond, and hearings.
  • Fees for certification applications to be set by the Office.
  • Initial funding authorized for fiscal year 2026-2027 to hire staff, including the executive director.
  • Take effect July 1, 2026, with later rulemaking and certification processes following.

Potential impact (summary)

  • Creates a formal state-managed framework to certify and oversee CCBHCs, aligning state practices with federal guidelines (SAMHSA standards) and ensuring standardized access to behavioral health and substance use services.
  • Establishes a dedicated PPS system and oversight mechanism to monitor quality, compliance, and funding disbursement.
  • Aims to expand access and coordination of services across Hawaii, particularly in rural or underserved areas, through a structured governance and accountability model.

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

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