The House Appropriations Committee voted to adopt amendments and report House Bill 10‑12 (Health and Human Services) out of committee after a lengthy statement of purpose and debate on behavioral health, provider rates and information‑technology modernization.

Representative Jason Nelson, who presented the DHHS package, said the house budget reflects a range of behavioral‑health investments including increases for substance‑use disorder vouchers, inpatient and community treatment, provider inflationary adjustments and a hybrid financing plan for a new state hospital. “This is a very important area of the budget because there’s a lot of growth in the care for people with behavioral‑health needs and addiction needs,” Nelson said.

Major items described in the DHHS package included:
- A $2.5 million increase for SUD (substance‑use disorder) vouchers and $500,000 for related medical services for people admitted to behavioral‑health facilities;
- $22.5 million to respond to House Bill 13‑77 to expand treatment services in county and regional jails;
- Provider inflationary increases across multiple provider categories (three separate increases described; one higher request was reduced by $2.0 million during committee deliberations);
- Continued funding for Community Connect programs ($4,761,000) and related utilization funding ($4,458,881.40) plus a $4,016,908 increase for the Free Through Recovery program for people released from corrections;
- A proposed new North Dakota State Hospital estimated at about $330 million (committee referenced a $200 million SIF appropriation and a $130 million Bank of North Dakota line of credit to finance construction); the facility was described as roughly 61 beds in committee discussion;
- A 24‑bed contract in the northeast region with an 80/20 state/provider cost share and an 80% state share amounting to $12,960,000;
- One‑time IT funding to continue migration from a legacy mainframe (committee referenced approximately $15 million in this biennium to advance the work);
- One‑time appropriations and carryover authority for unfinished facility projects (including an exemption to carry forward $1,950,000 for a Northwest Human Service Center behavioral‑health facility already under construction).

Representative Nelson said the $330 million figure for the new state hospital came from a design study with estimated costs of roughly $332 million; the governor had proposed $300 million, and the committee’s package moved toward the higher estimate and described a financing plan that uses a mix of SIF funds and a Bank of North Dakota line of credit.

Committee members asked for reporting and a steering committee for the new state hospital. Nelson said the committee inserted language requiring progress reports and a legislative steering committee with members from both chambers to receive updates on design and construction.

Several smaller but targeted appropriations were also discussed and amended. The committee moved $750,000 for juvenile justice diversion services to the Department of Health and Human Services rather than to a statewide regional education association; it added $637,661 to start a fetal alcohol spectrum disorder clinic at the University of North Dakota; and it included a $3,457,736 payment to the Anne Carlson Center to cover a retroactive rate shortfall for certain high‑need developmental‑disability services.

Representative Nelson moved the do‑pass on House Bill 10‑12 as amended; the committee approved the motion on recorded roll calls and will send the bill to the House floor.

Ending: Committee members also discussed carryover authority for projects that will not be finished this biennium—Representative Richter’s amendment to exempt $1,950,000 of general funds for completion of a Northwest Human Service Center behavioral‑health facility was adopted to allow the project to continue into the next biennium.