The bill seeks to reform the treatment of inmates in state facilities by limiting the use of segregated confinement and promoting alternative therapeutic and rehabilitative options. It introduces a new subchapter that defines key terms related to segregated confinement, such as "residential rehabilitation unit" and "special population," which includes vulnerable groups like young, elderly, and disabled inmates. The legislation restricts the duration of segregated confinement to a maximum of fifteen consecutive days and no more than twenty days within a sixty-day period, except in exceptional circumstances. It also mandates that inmates with serious mental illnesses be diverted to appropriate mental health treatment units and requires regular assessments to address their mental health needs.

Additionally, the bill establishes guidelines for the management of inmates in residential rehabilitation units, including criteria for discharge and independent reviews of continued stays. It emphasizes the need for a least restrictive environment, mandating a minimum of four hours of out-of-cell programming for those in segregated confinement and six hours for those in rehabilitation units. The bill prohibits the use of restraints during out-of-cell activities unless justified by a risk assessment and ensures that basic needs are not withheld as punishment. Furthermore, it requires specialized training for staff, monthly reporting on inmate demographics and conditions, and annual compliance assessments, all aimed at enhancing rehabilitation while maintaining safety and security within correctional facilities.