SB 778 - This act creates the offense of possession of a controlled substance in a drug-free homeless service zone, which shall be a class A misdemeanor. A drug-free homeless service zone is an area within 300 feet of the premises of a facility-based service, which is a housing provider that receives federal, state, or local funds for providing shelter to homeless persons or that provides treatment, care, or other services to homeless persons. This act modifies the offense of distribution of a controlled substance in a protected location to add drug-free homeless service zones to the list of protected locations. This offense is a Class A felony. If an operator of a facility-based service pleads or is found guilty of either offense created in this act, the operator shall be ineligible to apply for homelessness assistance grants administered by the state for 3 years. Finally, operators of facility-based services shall post signage, as specified in the act, that identifies the building and its grounds as a drug-free homeless service zone. SARAH HASKINS