2023 - 2024 LEGISLATURE LRB-1702/1 SWB:skw 2023 SENATE BILL 462 September 29, 2023 - Introduced by Senators MARKLEIN, JAMES, BALLWEG, CABRAL-GUEVARA, FELZKOWSKI, SPREITZER, TESTIN, TOMCZYK and QUINN, cosponsored by Representatives MOSES, SUMMERFIELD, CALLAHAN, C. ANDERSON, BROOKS, DITTRICH, DONOVAN, EDMING, GREEN, GUNDRUM, JACOBSON, KITCHENS, KRUG, MAXEY, MURPHY, MURSAU, NOVAK, O'CONNOR, PETRYK, ROZAR, SAPIK, SHANKLAND, SPIROS, TRANEL, ZIMMERMAN and WICHGERS. Referred to Committee on Mental Health, Substance Abuse Prevention, Children and Families. 1 AN ACT to renumber and amend 49.45 (41) (a); to amend 49.45 (41) (b), 49.45 2 (41) (c) (intro.) and 51.15 (2) (d); and to create 49.45 (41) (a) 1., 49.45 (41) (d) 3 and 51.036 of the statutes; relating to: crisis urgent care and observation 4 facilities and granting rule-making authority. Analysis by the Legislative Reference Bureau This bill requires the Department of Health Services to establish a certification process for crisis urgent care and observation facilities and a grant program to award grants to develop and support these facilities. Under the bill, a crisis urgent care and observation facility is a treatment facility that admits an individual to prevent, de-escalate, or treat the individual's mental health or substance use disorder and includes the necessary structure and staff to support the individual's needs relating to the mental health or substance use disorder. The bill provides that no person may operate a crisis urgent care and observation facility without a certification from DHS. Under the bill, a certified crisis urgent care and observation facility is not regulated as a hospital, except to the extent the facility is otherwise required due to the facility's licensure or certification for other services or purposes. The bill provides that the provisions of the bill may not be construed to prohibit, limit, or otherwise interfere with services provided by a county or a hospital or other facility that are provided consistent with the facility's existing licensure or certification, whether the facility is publicly or privately funded. The bill provides that DHS may certify crisis urgent care and observation facilities that demonstrate the ability to do certain things, including 1) accept 2023 - 2024 Legislature -2- LRB-1702/1 SWB:skw SENATE BILL 462 referrals for crisis services for adults, and, if applicable, for youth, including involuntary patients under emergency detention, walk-ins, and individuals brought by law enforcement, emergency medical responders or emergency medical services practitioners, or county crisis personnel; 2) abstain from having a requirement for medical clearance before admission assessment; 3) provide assessments for physical health, substance use disorder, and mental health; 4) provide screening for suicide and violence risk; 5) provide medication management and therapeutic counseling; 6) provide coordination of services for basic needs; 7) provide for the safety and security of both the staff and the patients; 8) have adequate staffing 24 hours a day, 7 days a week, including through use of telehealth, with a multidisciplinary team, including, as needed, psychiatrists or psychiatric nurse practitioners, nurses, licensed clinicians capable of completing assessments, peers with lived experience, and other appropriate staff; 9) allow for voluntary and involuntary treatment of individuals in crisis as a means to avoid unnecessary placement of those individuals in hospital inpatient beds and allow for an effective conversion to voluntary stabilization when warranted in the same setting; and 10) contribute, from one or more nonstate, federal, or third-party sources, an amount, as determined by DHS, in addition to any grant awarded by DHS under the bill. The bill requires that DHS must provide the Joint Committee on Finance with certain information and obtain approval of that committee before granting certification to a crisis urgent care and observation facility. The bill also requires DHS to provide an annual report to the Joint Committee on Finance regarding the facilities. Under the bill, a certified crisis urgent care and observation facility must accept adult individuals for emergency detention, and may accept youths for emergency detention. The bill provides that a certified crisis urgent care and observation facility may accept individuals for services including voluntary stabilization; observation and treatment, including for assessments for mental health or substance use disorder; screening for suicide and violence risk; and medication management and therapeutic counseling. The bill provides that a certified crisis urgent care and observation facility must coordinate to the fullest extent possible with any facility established or operated with funding received from settlement proceeds from the opiate litigation, which under current law refers to the litigation in In re: National Prescription Opiate Litigation, Case No.: MDL 2804 or any proceeding filed in a circuit court in this state containing allegations and seeking relief that is substantially similar to allegations contained and relief sought in that matter. The bill also requires that DHS promulgate rules establishing policies that encourage awareness of and communication and coordination between certified crisis urgent care and observation facilities and other facilities that provide similar services. The bill requires DHS, in accordance with existing requirements to obtain approval from the Joint Committee on Finance, to request any necessary federal approval by seeking either a waiver, specifically, what is known as a 1115 waiver, or a Medical Assistance state plan amendment to add services provided by a crisis urgent care and observation facility as a type of crisis intervention service reimbursable under the Medical Assistance program. If DHS determines a state LRB-1702/1 2023 - 2024 Legislature -3- SWB:skw SENATE BILL 462 plan amendment is appropriate, DHS must follow the procedures for review by the Joint Committee on Finance, regardless of whether the amendment is expected to have a fiscal effect of $7,500,000 or more. Under the bill, if federal approval is either unnecessary or is necessary and is granted, DHS may provide reimbursement for these services. For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill. The people of the state of Wisconsin, represented in senate and assembly, do enact as follows: 1 SECTION 1. 49.45 (41) (a) of the statutes is renumbered 49.45 (41) (a) (intro.) 2 and amended to read: 3 49.45 (41) (a) (intro.) In this subsection, “crisis intervention services" means 4 crisis intervention services for the treatment of mental illness, intellectual disability, 5 substance abuse, and dementia that are provided by a any of the following: 6 2. A crisis intervention program operated by, or under contract with, a county, 7 if the county is certified as a medical assistance provider. 8 SECTION 2. 49.45 (41) (a) 1. of the statutes is created to read: 9 49.45 (41) (a) 1. A crisis urgent care and observation facility certified under s. 10 51.036. 11 SECTION 3. 49.45 (41) (b) of the statutes is amended to read: 12 49.45 (41) (b) If a county elects to become certified as a provider of crisis 13 intervention services under par. (a) 2., the county may provide crisis intervention 14 services under this subsection in the county to medical assistance recipients through 15 the medical assistance program. A county that elects to provide the services shall 16 pay the amount of the allowable charges for the services under the medical 17 assistance program that is not provided by the federal government. The department 18 shall reimburse the county under this subsection only for the amount of the allowable 2023 - 2024 Legislature -4- LRB-1702/1 SWB:skw SENATE BILL 462 SECTION 3 1 charges for those services under the medical assistance program that is provided by 2 the federal government. 3 SECTION 4. 49.45 (41) (c) (intro.) of the statutes is amended to read: 4 49.45 (41) (c) (intro.) Notwithstanding par. (b), if a county elects, pursuant to 5 par. (a) 2., to deliver crisis intervention services under the Medical Assistance 6 program on a regional basis according to criteria established by the department, all 7 of the following apply: 8 SECTION 5. 49.45 (41) (d) of the statutes is created to read: 9 49.45 (41) (d) The department shall, in accordance with all procedures set forth 10 under s. 20.940, request a waiver under 42 USC 1315 or submit a Medical Assistance 11 state plan amendment to the federal department of health and human services to 12 obtain any necessary federal approval required to provide reimbursement to crisis 13 urgent care and observation facilities certified under s. 51.036 for crisis intervention 14 services under this subsection. If the department determines submission of a state 15 plan amendment is appropriate, the department shall, notwithstanding whether the 16 expected fiscal effect of the amendment is $7,500,000 or more, submit the 17 amendment to the joint committee on finance for review in accordance with the 18 procedures under s. 49.45 (2t). If federal approval is granted or no federal approval 19 is required, the department shall provide reimbursement under s. 49.46 (2) (b) 15. 20 If federal approval is necessary but is not granted, the department may not provide 21 reimbursement for crisis intervention services provided by crisis urgent care and 22 observation facilities. 23 SECTION 6. 51.036 of the statutes is created to read: 24 51.036 Crisis urgent care and observation facilities. (1) DEFINITIONS. In 25 this section: LRB-1702/1 2023 - 2024 Legislature -5- SWB:skw SENATE BILL 462 SECTION 6 1 (a) “Crisis” means a situation caused by an individual's apparent mental or 2 substance use disorder that results in a high level of stress or anxiety for the 3 individual, persons providing care for the individual, or the public and that is not 4 resolved by the available coping methods of the individual or by the efforts of those 5 providing ordinary care or support for the individual. 6 (b) “Crisis urgent care and observation facility” means a treatment facility that 7 admits an individual to prevent, de-escalate, or treat the individual's mental health 8 or substance use disorder and includes the necessary structure and staff to support 9 the individual's needs relating to the mental health or substance use disorder. 10 (2) CERTIFICATION REQUIRED; EXEMPTION; GRANTS. (a) The department shall 11 establish a certification process for crisis urgent care and observation facilities and 12 a grant program to award grants to develop and support crisis urgent care and 13 observation facilities. No person may operate a crisis urgent care and observation 14 facility without a certification under this section. The department may limit the 15 number of certifications it grants to operate crisis urgent care and observation 16 facilities. The department shall, using the department's division of the state into 17 regions by county, include statewide geographic consideration in its evaluation of 18 applications for certification under this section to ensure geographic diversity among 19 the regions in the location of crisis urgent care and observation facilities certified 20 under this section. 21 (b) 1. A crisis urgent care and observation facility certified under this section 22 is not subject to facility regulation under ch. 50, unless otherwise required due to the 23 facility's licensure or certification for other services or purposes. A crisis urgent care 24 and observation facility is not a hospital subject to approval under ss. 50.32 to 50.39 25 and nothing in this subsection limits services a hospital may provide under ch. 50. 2023 - 2024 Legislature -6- LRB-1702/1 SWB:skw SENATE BILL 462 SECTION 6 1 2. Notwithstanding par. (d), the department shall promote certification and 2 encourage any facility that is licensed as a hospital under ch. 50 and provides 3 services consistent with those described in par. (c) 1. to 9. to apply for certification 4 under this section. The requirements under this section may not be construed to 5 prohibit, limit, or otherwise interfere with services provided by a county or a hospital 6 or other facility that are provided consistent with the facility's existing licensure or 7 certification, whether the facility is publicly or privately funded. 8 3. Notwithstanding s. 150.93, any hospital that expands psychiatric bed 9 capacity to accommodate admissions under this section may increase its approved 10 bed capacity by the number of psychiatric beds added under this subdivision. 11 4. The department shall take into account the geography of hospital facilities 12 granted certification under subd. 2. when considering certification applications for 13 other crisis urgent care and observations facilities. 14 (c) Subject to par. (d), the department may grant a certification to a crisis urgent 15 care and observation facility that specifies in an application the level of care the 16 facility can provide to patients and demonstrates in the application its ability to do 17 all of the following: 18 1. Accept referrals for crisis services for adults and, if applicable, for youth, 19 including involuntary patients under emergency detention, walk-ins, and 20 individuals brought by law enforcement, emergency medical responders or 21 emergency medical services practitioners, or county crisis personnel. 22 2. Abstain from having a requirement for medical clearance before admission 23 assessment. 24 3. Provide assessments for physical health, substance use disorder, and mental 25 health. LRB-1702/1 2023 - 2024 Legislature -7- SWB:skw SENATE BILL 462 SECTION 6 1 4. Provide screening for suicide and violence risk. 2 5. Provide medication management and therapeutic counseling. 3 6. Provide coordination of services for basic needs. 4 7. Provide for the safety and security of both the staff and the patients. 5 8. Have adequate staffing 24 hours a day, 7 days a week, including through use 6 of telehealth, as described under s. 49.45 (61), with a multidisciplinary team that 7 includes, as needed, psychiatrists or psychiatric nurse practitioners, nurses, 8 licensed clinicians capable of completing assessments, peers with lived experience, 9 and other appropriate staff. 10 9. Allow for voluntary and involuntary treatment of individuals in crisis as a 11 means to avoid unnecessary placement of those individuals in hospital inpatient 12 beds and allow for an effective conversion to voluntary stabilization when warranted 13 in the same setting. 14 10. Contribute, from at least one nonstate, federal, or 3rd-party revenue 15 source, an amount, as determined by the department, in addition to any grant 16 awarded by the department under this section. 17 (d) Before the department may grant certification to a facility under this 18 section, the department shall submit the proposal for certification to the joint 19 committee on finance for approval. If the cochairpersons of the joint committee on 20 finance do not notify the department within 14 working days after the date of the 21 submittal under this paragraph that the committee has scheduled a meeting for the 22 purpose of reviewing the proposal, the department may grant certification of that 23 facility as described in the proposal. If, within 14 working days after the date of the 24 submittal under this paragraph, the cochairpersons of the committee notify the 25 department that the committee has scheduled a meeting for the purpose of reviewing 2023 - 2024 Legislature -8- LRB-1702/1 SWB:skw SENATE BILL 462 SECTION 6 1 the proposal, the department may grant certification of that facility only upon 2 approval by the committee. When submitting a proposal regarding certification of 3 a facility under this paragraph, the department shall provide the joint committee on 4 finance with all of the following information about the facility proposed for 5 certification: 6 1. The department's rationale for selecting the facility. 7 2. Where the facility is to be located. 8 3. A specific description of the entity that will be awarded certification.