An Act to Ensure the Financial Stability of Behavioral Health
Maine Legislature, Session 132, LD 1443
Committee: Health and Human Services
Sponsors: BENNETT, CRAFTS
Amends: 22 MRSA §20-B

Legislative Document
No. 1443
S.P. 584
In Senate, April 3, 2025
An Act to Ensure the Financial Stability of Behavioral Health 
Service Providers and Housing Assistance Providers
(EMERGENCY)
Reference to the Committee on Health and Human Services suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BENNETT of Oxford.
Cosponsored by Representative CRAFTS of Newcastle and
Senators: BALDACCI of Penobscot, MOORE of Washington, TALBOT ROSS of 
Cumberland, TIMBERLAKE of Androscoggin, Representatives: ANKELES of Brunswick, 
CARLOW of Buxton, SALISBURY of Westbrook, SHAGOURY of Hallowell.
Emergency preamble.  Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, the Department of Health and Human Services has experienced delays in 
awarding contracts to, finalizing contracts with and making payments to behavioral health 
service providers, housing assistance providers and other similar nonprofit service 
providers; and
Whereas, the department relies on these service providers to provide essential 
services; and
Whereas, delays in contract awards, finalization and payment have required service 
providers to access loans or lines of credit to bridge temporary financial gaps; and
Whereas, without timely contract awards, finalization and payment from the 
department, a service provider must pay expenses, including staff salaries and rent, out of 
the provider's own line of credit, which can create cash flow challenges that threaten the 
provider's solvency and the availability of services; and
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  22 MRSA §20-B is enacted to read:
§20-B.  Continuation of contract payments; payment of expenses and interest
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "In good standing" means that a service provider has successfully complied with 
the terms and conditions of its most recent contract with the department and has no 
unresolved or outstanding compliance concerns.
B.  "Previous contract rate" means the payment rate or structure established under the 
most recent contract between a service provider and the department.
C.  "Service provider" means an entity, including, but not limited to, a private or 
nonprofit behavioral health agency, housing assistance provider or other nonprofit 
organization that contracts with the department to provide services.
2.  Continuation of contract payments during delays.  The department shall continue 
payments to a service provider in good standing at the service provider's previous contract 
rate when a delay in contract awarding, finalization or payment of more than 30 calendar 
days has occurred since the expiration of the previous contract.
3.  Administrative expenses and interest charged to service providers accessing 
lines of credit or loans.  The department shall pay administrative expenses and interest 
charged on lines of credit or loans accessed by a service provider when a delay in awarding, 
finalization or payment of a department contract requires the service provider to access the 
line of credit or loan.
Emergency clause.  In view of the emergency cited in the preamble, this legislation 
takes effect when approved.
SUMMARY
This bill requires the Department of Health and Human Services to continue payments 
to service providers, including, but not limited to, private or nonprofit behavioral health 
agencies, housing assistance providers and other nonprofit organizations, in good standing 
with the department at their previous contract rates when delays in new contract awarding, 
finalization or payment exceed 30 days.  It also requires the department to pay 
administrative expenses and interest charged on lines of credit or loans accessed by a 
service provider when a delay in awarding, finalization or payment of a department contract 
requires the service provider to access the line of credit or loan.