Recovery Residences

Prohibits all primary inpatient or outpatient mental health providers from using recovery residences for housing, but explicitly authorizes Level IV outpatient providers to do so if housing is segregated by diagnosis.

Removes the prohibition preventing certified recovery residences from denying housing to individuals prescribed federally approved medication for substance use disorders.

Defines 'transfer' to include transferring majority ownership or operational responsibilities, and mandates level 2 background screening for new owners with 5% or greater controlling interest.

Allows existing licensed providers seeking to add services or locations to skip admitting individuals during the probationary period if they have no outstanding violations and meet specific compliance criteria.

Clarifies that a license is valid only for specific service components at identified locations and prohibits transferring licenses entirely.

Sets the effective date of the act to July 1, 2026.