S.B. No. 1342 seeks to enhance the regulation of psychiatric residential treatment facilities in Texas by establishing a mandatory licensing requirement, replacing the previous voluntary certification process. The bill amends the Health and Safety Code to change the terminology from "youth treatment facility" to "psychiatric residential treatment facility" and stipulates that no person may operate such a facility without a license issued by the commission. It outlines the application process for obtaining a license, including nonrefundable application and renewal fees, and mandates inspections to ensure compliance with the new standards. Additionally, the bill introduces provisions for Medicaid reimbursement for services provided by licensed facilities and establishes minimum standards for licensing, including accreditation and treatment protocols for individuals aged 21 and younger with severe emotional disturbances.

Furthermore, the bill introduces new definitions and requirements for facilities caring for children and individuals with mental health needs, specifically creating a licensing category under Chapter 577A of the Health and Safety Code. It clarifies the conditions under which a caretaker can provide care in their home and repeals Section 577A.003 of the Health and Safety Code. 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 required. Existing facilities licensed under Chapter 42 will not need to obtain a new license 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 (Health and Safety Code 577, Human Resources Code 32, Human Resources Code 42)