Creates the select committee on quality improvement in state hospitals and requires the select committee to receive updates, monitor, and make recommendations to the governor, the office of financial management, and the legislature in certain areas, with respect to the state hospitals.

Creates the governor's behavioral health innovation fund.

Requires long-term planning for the state hospitals and recommendations for the use of funds from the governor's fund to be informed by certain consultants who shall make recommendations to the governor, the legislature, and the select committee by October 1, 2016.

Authorizes the department of social and health services to apply to the office of financial management to receive funds from the governor's fund.

Requires the department of social and health services to: (1) Provide quarterly implementation progress reports to the select committee and the office of financial management; and

(2) Assure that the state hospitals have adopted and implemented certain best practice policies and include information regarding the status of the adoption and implementation of these policies in its quarterly reports.

Expires July 1, 2019.