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Ohio Recovery Housing Overhaul: New Standards and Certification Requirements Reshape Sober Living Spaces

Client Alert

For years, the State of Ohio lacked uniformity over the operation of “recovery houses” — sometimes referred to as “sober living” spaces, “halfway houses,” and so on. Ohio law broadly defines these as residences “for individuals recovering from alcohol use disorder or drug addiction that provide an alcohol-free and drug-free living environment, peer support, assistance with obtaining alcohol and drug addiction services, and other recovery assistance for alcohol use disorder and drug addiction.” See R.C. 5199.01(A)(17). 

Operators could, for example, voluntarily obtain certification through the Ohio-certifying body or, alternatively, elect to run their recovery residence(s) with no oversight and/or certification — in turn, creating a statewide system of residential recovery spaces that provided inconsistent functions and standards. That system, however, is in the midst of a complete overhaul. 

Now, “recovery houses” (and all other similarly named residential recovery spaces) have statutory standards to satisfy pre-operation — a process which is a considerable undertaking. 

One new measure requires all existing recovery housing residences, as well as those intending to operate in the future, to register with the Ohio Department of Mental Health & Addiction Services (OHMHAS). Under Ohio law, existing operators were required to register on or before October 3, 2023; however, the form remains open for late filings and updates as necessary. Newly established recovery housing residences have a grace period of thirty (30) days from the start of their operation (i.e., the date on which the first resident occupies the residence) to complete the OHMHAS registration form. 

In addition to the OHMHAS registration requirement, effective January 1, 2025, the State of Ohio will begin enforcing new requirements which bar individuals and/or entities from operating, advertising, or even representing any residence as a “recovery housing residence, sober living home, or any other alcohol and drug free housing for persons recovering from alcohol use disorder” or substance use disorder without taking the appropriate certification steps through, without limitation, Ohio Recovery Housing or Oxford House, Inc. See R.C. 5119.39.

Certification is a substantial process — requiring, among other things, policies and procedures governing residents’ rights and responsibilities; a resident agreement and legally compliant leasing arrangement; and completion of, and compliance with, a checklist of pre-operation deliverables. 

The range of requirements as applied to the individual circumstances of each recovery housing operator can make identifying priorities and achieving compliance incredibly complex. For more information or for assistance navigating and completing the recovery housing registration and/or certification processes, please contact Monica Andress at (330) 253-9153 or mbandress@bmdllc.com.


Corporate Transparency Act Update 3/14/24

On March 1, 2024, a federal district court in the Northern District of Alabama concluded that the Corporate Transparency Act (“CTA”) exceeded Congressional powers and enjoined the Department of the Treasury from enforcing the CTA against the plaintiffs. National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.). On March 11, 2024, the U.S. Department of Justice appealed the district court’s decision to the Eleventh Circuit Court of Appeals.

The Ohio State University Launches Its Accelerated Bachelor of Science in Nursing Program

In response to Ohio’s nursing shortage, The Ohio State University College of Nursing is accepting applications for its new Accelerated Bachelor of Science in Nursing program (aBSN). Created for students with a bachelor’s degree in non-nursing fields, the aBSN allows such students to obtain their nursing degree within 18 months. All aBSN students will participate in high-quality coursework and gain valuable clinical experience. Upon completion of the program, graduates will be eligible to take the State Board, National Council of Licensure Exam for Registered Nursing (NCLEX-RN).

Another Transparency Obligation: The FinCEN Beneficial Ownership Information Reporting Requirements

Many physician practices and healthcare businesses are facing a new set of federal transparency requirements that require action now. The U.S. Department of Treasury Financial Crimes Enforcement Network (“FinCEN”) Beneficial Ownership Information Reporting Requirements (the “Rule”), which was promulgated pursuant to the 2021 bipartisan Corporate Transparency Act, is intended to help curb illegal finance and other impermissible activity in the United States.

“In for a Penny, in for a Pound” is No Longer the Case for Florida Lawyers

On April 1, 2024, newly adopted Rule 1.041 to the Florida Rules of Civil Procedures goes into effect which creates a procedure for an attorney to appear in a limited manner in civil proceedings.  Currently, when a Florida attorney appears in a civil proceeding, he or she is reasonable for handling all aspects of the case for their client.  This new rule authorizes an attorney to file a notice limiting the attorney’s appearance to particular proceedings or specified matters prior to any appearance before the court.  For example, an attorney can now appear for the limited purpose of filing and arguing a motion to dismiss.  Once the motion to dismiss is heard by the court, the attorney may file a notice of termination of limited appearance and will have no further obligations in the case.

Enhancing Privacy Protections for Substance Use Disorder Patient Records

On February 8, 2024, the U.S. Department of Health and Human Services (“HHS”) finalized updated rules to 42 CFR Part 2 (“Part 2”) for the protection of Substance Use Disorder (“SUD”) patient records. The updated rules reflect the requirement that the Part 2 rules be more closely aligned with the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) privacy, breach notification, and enforcement rules as mandated by the Coronavirus Aid, Relief, and Economic Security Act of 2020.