S.B. No. 1342 is a legislative bill aimed at regulating psychiatric residential treatment facilities in Texas by establishing a mandatory licensing requirement. The bill amends the Health and Safety Code, changing the terminology from "youth treatment facility" to "psychiatric residential treatment facility" and replacing the previous voluntary certification process with a licensing requirement issued by the commission. It sets forth minimum standards for licensing, including accreditation and compliance with federal regulations, and expands Medicaid reimbursement to cover psychiatric treatment and related services provided by these licensed facilities. The bill also introduces penalties for facilities that fail to comply with the new regulations.

Additionally, the bill creates a new category for psychiatric residential treatment facilities under Chapter 577A of the Health and Safety Code and clarifies criteria for living arrangements in caretaker homes. It mandates that caretakers must have written agreements with parents, care for no more than six children (excluding related children), and not receive compensation for their care. The executive commissioner of the Health and Human Services Commission is tasked with adopting necessary rules for implementation, and state agencies may delay implementation if federal waivers are needed. Importantly, facilities licensed under Chapter 42 of the Human Resources Code will not need to obtain a license under Chapter 577A until their current license expires. The bill is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Health and Safety Code 577.002, Human Resources Code 32.024, Human Resources Code 42.041 (Human Resources Code 42, Human Resources Code 32, Health and Safety Code 577)