As Introduced
136th General Assembly
Regular Session H. B. No. 58
2025-2026
Representatives Pizzulli, Jarrells
A B I L L
To amend section 5119.393 and to enact sections
5119.398, 5119.399, 5119.3910, 5119.3911,
5119.3912, 5119.3913, 5119.3914, and 5119.3915
of the Revised Code to create a certificate of
need program for recovery housing residences.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 5119.393 be amended and sections
5119.398, 5119.399, 5119.3910, 5119.3911, 5119.3912, 5119.3913,
5119.3914, and 5119.3915 of the Revised Code be enacted to read
as follows:
Sec. 5119.393. (A) The Each recovery housing residence
shall be inspected annually by the board of alcohol, drug
addiction, and mental health services with jurisdiction over the
area where the residence is located. As soon as practicable, but
not later than ten days after completing an inspection, the
board shall report its findings to the department of mental
health and addiction services .
(B) The department shall establish a procedure to receive
and investigate complaints from residents, staff, and the public
regarding recovery housing residences. The department may
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contract with one or more of the organizations specified in
section 5119.39 of the Revised Code to fulfill some or all of
the functions associated with receiving and investigating
complaints.
(B) Any organization under contract with the department to
receive and investigate complaints shall make reports to the
department as follows:
(1) A complaint shall be investigated by the board of
alcohol, drug addiction, and mental health services with
jurisdiction over the area where the residence that is the
subject of the complaint is located. Not less than monthly, the
contractor board shall report the status of each pending
investigation and shall report the outcome of each investigation
that has been completed since the last report was made ;
(2) As soon as practicable, but not later than ten days
after making an adverse decision, if a contractor's .
(C) For purposes of conducting the inspections and
investigations required by divisions (A) and (B) of this
section, a board may contract with individuals to serve as
inspectors and investigators.
(D) If an organization's accreditation or its equivalent
is accepted by the department for purposes of section 5119.39 of
the Revised Code, and the organization makes an adverse decision
based on the outcome of an inspection or investigation conducted
under division (A) or (B) of this section, the contractor
organization shall report that decision to the department in a
manner prescribed by the department. The organization shall make
the report as soon as practicable, but not later than ten days,
after making an adverse decision.
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Sec. 5119.398. As used in sections 5119.398 to 5119.3915
of the Revised Code:
(A) "Applicant" means any person that submits an
application for a certificate of need and who is designated in
the application as the applicant.
(B) "Certificate of need" means a written approval granted
by the director of mental health and addiction services to an
applicant to authorize conducting a reviewable activity.
(C) "Service area" means the current and projected primary
and secondary service areas to which a recovery housing
residence is or will be providing recovery housing.
(D) "Primary service area" means the geographic region,
usually comprised of the Ohio zip code in which a recovery
housing residence is located and contiguous zip codes, from
which approximately seventy-five to eighty per cent of the
residence's residents originate or are expected to originate.
(E) "Secondary service area" means the geographic region,
usually comprised of Ohio zip codes not included in the primary
service area, excluding isolated exceptions, from which a
recovery housing residence's remaining residents currently
originate or are expected to originate.
(F) "Existing building that is operated as a recovery
housing residence" means a recovery housing residence that is
certified or otherwise authorized to operate in this state in
accordance with this chapter and meets either of the following:
(1) Is actively housing individuals;
(2) Has housed individuals for at least three hundred
sixty-five consecutive days within the twenty-four months
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immediately preceding the date a certificate of need application
is filed with the director.
(G) "Reviewable activity" means any of the activities
identified under section 5119.399 of the Revised Code as being
reviewable for purposes of the certificate of need program for
recovery housing residences.
(H) "Reviewability ruling" means a ruling issued by the
director as to whether a particular proposed project is or is
not a reviewable activity.
Sec. 5119.399. (A) The following activities are reviewable
under sections 5119.398 to 5119.3914 of the Revised Code:
(1) Establishment, development, or construction of a new
building that will be operated as a recovery housing residence;
(2) Replacement of an existing building that is operated
as a recovery housing residence or purchase or any other form of
acquisition of an existing building that will be operated as a
recovery housing residence;
(3) Renovation of or addition to an existing building that
is operated as a recovery housing residence that involves a
capital expenditure of five hundred thousand dollars or more,
not including expenditures for equipment, staffing, or
operational costs;
(4) An increase in bed capacity at a recovery housing
residence;
(5) Relocation of recovery housing residence beds from one
physical building or site to another, excluding relocation of
beds within a building or among buildings located on the same
site;
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(6) Any failure to conduct a reviewable activity in
substantial accordance with the approved application for which a
certificate of need was granted, including a change in the site,
if the failure occurs within five years after implementation of
the reviewable activity for which the certificate was granted.
(B) The following are not subject to review under sections
5119.398 to 5119.3914 of the Revised Code:
(1) Acquisition of computer hardware or software;
(2) Acquisition of a telephone system;
(3) Construction or acquisition of parking facilities;
(4) Correction of cited deficiencies that are in violation
of federal, state, or local fire, building, or safety statutes,
ordinances, rules, or regulations;
(5) Continued operation on and after the effective date of
this section of a recovery housing residence that was
established and in operation prior to the effective date of this
section, as long as the continued operation does not involve any
of the activities described in division (A) of this section;
(6) Acquisition of an existing building that is operated
as a recovery housing residence that does not involve a change
in the number of beds;
(7) Mergers, consolidations, or other corporate
reorganizations of recovery housing residences that do not
involve a change in the number of beds;
(8) Construction, repair, or renovation of bathroom
facilities;
(9) Construction of laundry facilities, waste disposal
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facilities, dietary department projects, heating and air
conditioning projects, and administrative offices;
(10) Removal of asbestos from a building.
Sec. 5119.3910. (A) The director of mental health and
addiction services shall administer a certificate of need
program for recovery housing residences in accordance with this
section, rules adopted pursuant to section 5119.3913 of the
Revised Code, and all of the following:
(1) The director shall issue rulings on whether a
particular proposed project is a reviewable activity.
(2) The director shall review applications for
certificates of need.
(3) If the project proposed in a certificate of need
application meets all of the applicable certificate of need
criteria for approval under rules adopted pursuant to section
5119.3913 of the Revised Code, the director shall grant a
certificate of need for all or part of the project that is the
subject of the application. The director may grant the
certificate with conditions that the holder of the certificate
is required to meet.
(4) During the period beginning with the granting of a
certificate of need and ending five years after implementation
of the reviewable activity for which the certificate was
granted, the director shall monitor the activities of the person
granted the certificate to determine whether the reviewable
activity is conducted in substantial accordance with the
certificate.
(B) The director's grant of a certificate of need does not
affect, and sets no precedent for, the director's decision to
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grant or deny other applications for similar reviewable
activities.
Sec. 5119.3911. Each application for a certificate of need
shall be submitted to the director of mental health and
addiction services on forms and in the manner prescribed by the
director. The application shall include the information required
by rules adopted pursuant to section 5119.3913 of the Revised
Code.
An application also shall be accompanied by an application
fee, which is nonrefundable unless the director determines that
the application cannot be accepted. The amount of the fee shall
be established according to whichever of the following applies
in the case of the proposed project that is being reviewed under
the application:
(A) If the proposed project is based on a specific number
of resident beds, the fee is an amount that equals two hundred
fifty dollars for each bed.
(B) If the proposed project is not based on a specific
number of resident beds, the fee is an amount that the director
specifies according to rules adopted pursuant to section
5119.3913 of the Revised Code.
Sec. 5119.3912. (A) No person shall carry out a reviewable
activity unless a certificate of need for the activity has been
granted under section 5119.3910 of the Revised Code. No person
shall carry out any reviewable activity if a certificate of need
authorizing that activity has been withdrawn, is expired, or is
void under rules adopted pursuant to section 5119.3913 of the
Revised Code.
No person shall separate portions of any proposal for any
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reviewable activity to evade the requirements of sections
5119.398 to 5119.3914 of the Revised Code.
No person granted a certificate of need shall carry out
the reviewable activity authorized by the certificate of need
other than in substantial accordance with the approved
application for the certificate of need.
(B) The director of mental health and addiction services
shall evaluate and may investigate evidence that appears to
demonstrate that any person has violated division (A) of this
section. If the director elects to conduct an investigation, the
director shall mail to the alleged violator by certified mail,
return receipt requested, a notice that an investigation is
underway.
The director or the director's designee may conduct a site
visit to investigate an alleged violation of division (A) of
this section.
Each investigation under this section shall be conducted
in a manner that protects resident confidentiality. Names or
other identifying information about any resident shall not be
made public without the written consent of the resident or the
resident's guardian, or, if the resident is a minor, the
resident's parent or guardian.
(C) In accordance with rules adopted under section
5119.3913 of the Revised Code, the director shall impose a civil
penalty on a person if the director determines that the person
has violated division (A) of this section.
Sec. 5119.3913. (A) The director of mental health and
addiction services shall adopt rules establishing procedures and
criteria for reviews of applications for certificates of need
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and issuance, denial, or withdrawal of certificates of need.
(1) The criteria for reviews of applications for
certificates of need shall relate to the need for the reviewable
activity and shall pertain to all of the following:
(a) The impact of the reviewable activity on the cost and
quality of recovery housing in the relevant service area,
including the historical and projected utilization of the
services to which the application pertains and the effect of the
reviewable activity on utilization of other providers of similar
services;
(b) The quality of the services to be provided as a result
of the activity, as evidenced by the historical performance of
the persons that will be involved in providing the services and
by the provisions that are proposed in the application to ensure
quality, including adequate available personnel, available
ancillary and support services, available equipment, size and
configuration of physical space, and relations with other
providers;
(c) The impact of the reviewable activity on the
availability and accessibility of the type of services proposed
in the application to the population of the relevant service
area, and the level of access to the services proposed in the
application that will be provided to underserved individuals
such as recipients of public assistance;
(d) The activity's short-term and long-term financial
feasibility and cost-effectiveness, the impact of the activity
on the applicant's costs and charges, and a comparison of the
applicant's costs and charges with those of providers of similar
services in the applicant's proposed service area;
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(e) The advantages, disadvantages, and costs of
alternatives to the reviewable activity;
(f) The impact of the activity on all other providers of
similar services in the relevant service area, including the
impact on their utilization, market share, and financial status;
(g) The historical performance of the applicant and
related or affiliated parties in complying with previously
granted certificates of need and any applicable certification,
accreditation, or licensure requirements;
(h) The historical performance of the applicant and
related or affiliated parties in providing cost-effective
recovery housing;
(i) The special needs and circumstances of the applicant
or population proposed to be served by the proposed project,
including research activities, prevalence of conditions
necessitating recovery housing, unusual demographic
characteristics, cost-effective contractual affiliations, and
other special circumstances;
(j) The appropriateness of the zoning status of the
proposed site of the activity.
(2) The criteria for reviews of applications shall include
a formula for determining each county's need for recovery
housing residences and may include other formulas for
determining that need.
(B) The director shall adopt rules regarding all of the
following, in addition to the rules required by division (A) of
this section:
(1) A timeframe for issuing a ruling in response to a
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request for a determination on whether a particular project is a
reviewable activity;
(2) A timeframe for granting or denying certificate of
need applications;
(3) Application fees that apply in the case of proposed
projects that are not based on a specific number of resident
beds;
(4) Information required to be submitted as part of a
certificate of need application;
(5) A process for revising a pending certificate of need
application, including permissible revisions and timeframe for
submitting them;
(6) A timeframe for commencing a project after a
certificate of need is approved and any requirements to
demonstrate reasonable progress;
(7) When a certificate of need can be withdrawn, expires,
or becomes void;
(8) The amount of any civil penalties to be imposed on
persons violating section 5119.3912 of the Revised Code;
(9) Timeframes and requirements for notices of appeal;
(10) Any other rules the director considers necessary to
carry out the purposes of sections 5119.398 to 5119.3914 of the
Revised Code.
(C) Rules adopted under this section shall be adopted in
accordance with Chapter 119. of the Revised Code.
Sec. 5119.3914. (A) All of the following may appeal to the
director of mental health and addiction services:
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(1) An applicant for a certificate of need regarding a
decision issued by the director to grant or deny a certificate
of need application;
(2) A person that requested a reviewability ruling
regarding a resulting ruling issued by the director;
(3) The holder of a certificate of need regarding a
decision issued by the director to withdraw a certificate of
need or to declare a certificate of need void;
(4) Any person determined by the director to have violated
section 5119.3912 of the Revised Code regarding that
determination or the penalties imposed.
(B) The appeal by the applicant or person shall be made in
accordance with Chapter 119. of the Revised Code, and the
director shall provide an adjudication hearing in accordance
with that chapter. The applicant or person that was a party to
and participated in an adjudication hearing conducted under this
division may appeal to the tenth district court of appeals the
decision issued by the director following the adjudication
hearing.
Sec. 5119.3915. The recovery housing residence fund is
created in the state treasury. The fund shall consist of
certificate of need application fees paid under section
5119.3911 of the Revised Code and penalties paid under section
5119.3912 of the Revised Code. The fund shall be used by boards
of alcohol, drug addiction, and mental health services to assist
with the costs incurred in conducting the inspections and
complaint investigations required by section 5119.393 of the
Revised Code.
Section 2. That existing section 5119.393 of the Revised
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Code is hereby repealed. 332