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 operations. The grant program is set to expire at the end of the 2029-30 fiscal year.

The bill also includes new legal language, specifically creating sections 20.435 (5) (bk) and 46.67 of the statutes. Section 20.435 (5) (bk) outlines the allocation of funds for mental health clubhouse grants, while section 46.67 details the eligibility requirements and conditions for awarding these grants. Notably, no funds may be encumbered under this program after June 30, 2030, ensuring a clear timeline for the grant's implementation and expiration.