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Ohio Recovery Housing Operators Beware: House Bill 58 Seeks to Make Major Changes

Client Alert

On February 18th, Ohio State Representatives Justin Pizzulli (R-District 90)  and Dontavius Jarrells (D-District 1) introduced House Bill (HB) 58, which proposes sweeping changes to Ohio’s current recovery housing landscape. HB 58 gives local Alcohol, Drug Addiction, and Mental Health (ADAMH) Boards (and their designees) authority to inspect recovery residences and investigate complaints levied against recovery residences (by residents, staff, or the public).

HB 58 also requires the Ohio Department of Mental Health and Addiction Services (OMHAS) to begin to issue Certificates of Need (CONs) to recovery homes seeking to engage in a “reviewable activity”.

Reviewable activities include but are not limited to:

    • Establishment, development, or construction of a new building that will be operated as a recovery housing residence;
    • 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;
    • Renovation of or addition to an existing building that is operated as a recovery housing residence that involves a capital expenditure of $500,000 or more, not including expenditures for equipment, staffing, or operational costs;
    • An increase in bed capacity at a recovery housing residence; and
    • Relocation of recovery housing residence beds from one physical building or site to another.

Under HB 58, as proposed, OMHAS will administer the CON program for recovery housing residences, approving or denying reviewable activities and issuing CONs if the reviewable activity is approved.

OMHAS will consider the following criteria (among others) when deciding whether to issue a CON to an operator:

    • 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;
    • 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;
    • 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;
    • The activity's short-term and long-term financial feasibility and cost-effectiveness; and
    • 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.

To obtain a CON, operators will be required to submit an application and pay a non-refundable application fee to OMHAS. Further, when OMHAS grants a CON, it will monitor the activities of the recovery residence for up to five years after implementation of the reviewable activity for which the certificate was granted to ensure compliance.

Last, HB 58 requires establishment of a recovery housing residence fund funded by CON application fees and penalties assessed against operators. Alcohol, Drug Addiction, and Mental Health Boards will use the fund to pay for conducting inspections and investigations of recovery residences.

If you have questions about HB 58 or Ohio’s current regulations surrounding recovery homes, please contact BMD Member Daphne Kackloudis at dlkackloudis@bmdllc.com

or BMD Attorney Jordan Burdick at jaburdick@bmdllc.com.


Corporate Transparency Act Overhauled: U.S. Entities No Longer Required to Report

The Department of Treasury has issued an interim final rule significantly altering the Corporate Transparency Act (CTA). As of March 21, 2025, all U.S.-created entities and their beneficial owners are exempt from reporting requirements. Only non-U.S. entities registered to do business in the U.S. must still report, but they are not required to disclose U.S. citizen owners. Business owners should stay informed on these changes and consult legal counsel for compliance guidance.

ODM to Implement Medicaid Work Requirements: What Providers and Medicaid Expansion Recipients Need to Know

The Ohio Department of Medicaid (ODM) has submitted a waiver to impose work requirements for Medicaid expansion recipients. If approved, the new eligibility criteria will take effect on January 1, 2026. A federal public comment period is open until April 7, 2025.

Ohio Appellate Court Rules in Favor of Gender-Affirming Care

On March 18, 2025, the 10th District Court of Appeals in Franklin County ruled that Ohio’s House Bill (HB) 68, which restricts puberty blockers and hormone therapy for minors seeking gender-affirming care, violates the Health Care Freedom Amendment and is therefore unenforceable. The court found that the law unlawfully interferes with parental rights and medical decision-making. The case, Moe v. Yost, has been remanded, and Ohio Attorney General Dave Yost intends to appeal.

HHS Revokes Public Comment Requirement on Certain Policy Changes

The U.S. Department of Health and Human Services (HHS) has revoked the Richardson Waiver, eliminating the requirement for public notice and comment on certain policy changes. This decision allows HHS to implement new policies more quickly, potentially affecting healthcare funding rules like Medicaid work requirements. While it speeds up policymaking, it also reduces opportunities for stakeholder input, raising concerns over transparency and unintended consequences for healthcare providers, states, and patients.

Don't Get Caught Dazed and Confused: Another Florida Court Weighs in on Employer Obligations to Accommodate Medical Marijuana Use

A Florida trial court ruled in Giambrone v. Hillsborough County that employers may need to accommodate off-duty medical marijuana use under the Florida Civil Rights Act (FCRA). This contrasts with prior rulings and raises new compliance challenges for employers. With the case on appeal, now is the time to review workplace drug policies.