Senate Bill 305 establishes a grant program for mental health clubhouses, which are defined as nonresidential rehabilitation programs that support individuals diagnosed with or awaiting diagnosis for mental illnesses, without providing direct treatment. The bill mandates the Department of Health Services to award grants totaling up to $300,000 per fiscal year, with a maximum of $50,000 allocated to each clubhouse. To qualify for these grants, clubhouses must meet specific criteria, including having members who are under treatment for mental illness, raising matching funds, providing voluntary activities, maintaining a distinct physical space, and allowing member participation in administration.

The grant program is set to expire at the end of the 2029-30 fiscal year, with no funds to be encumbered after June 30, 2030. The bill includes new legal language to create sections 20.435 (5) (bk) and 46.67 of the statutes, detailing the grant amounts and eligibility requirements for the clubhouses.