VT H0764

Exempts psychiatric hospitals and expenditures for construction or renovation of psychiatric units within licensed hospitals from certificate of need requirements under 18 V.S.A. § 9435.

Creates the Psychiatric Inpatient Capacity Working Group to assess the need for additional inpatient psychiatric beds and identify barriers to their construction.

Working Group membership includes 9 members: Commissioner of Mental Health (chair), Secretary of Human Services, individuals with lived experience, licensed mental health professionals, and representatives from hospital and municipal associations.

Working Group must develop a plan to increase inpatient psychiatric beds by 25 percent of the FY2026 total by July 2028, if additional beds are determined necessary.

Working Group must submit findings and legislative recommendations by January 15, 2027, with first meeting by August 15, 2026, and dissolution on February 1, 2027; act takes effect July 1, 2026.