The bill establishes a behavioral health teaching clinic designation and enhancement rate in Washington for eligible licensed or certified behavioral health agencies, recognizing their vital role as safety net providers for individuals with mental health or substance use disorders. It aims to address the financial challenges these agencies face due to inadequate Medicaid reimbursement rates by designating certain agencies as behavioral health teaching clinics, which must meet specific criteria, including training interns and providing equitable access to services. The bill mandates that these designated clinics receive enhanced reimbursement rates and outlines a collaborative process for establishing these rates, while also requiring consultation with tribal governments to ensure effective implementation.

Additionally, the bill updates definitions related to behavioral health services, introducing new terms such as "first responders," "intensive behavioral health treatment facility," and "mental health peer-run respite center," which enhance clarity within the behavioral health framework. It modifies existing definitions by refining language and removing outdated references, such as updating the term "mentally ill persons" and adjusting the language surrounding "state minimum standards." These changes aim to improve the effectiveness of behavioral health services and ensure they align with current mental health standards and practices, ultimately enhancing the capacity and sustainability of community behavioral health agencies while supporting workforce development in the sector.