§ 27-60-113. Out-of-Home Placement for Children and Youth With Mental or Behavioral Needs – Rules – Report – Legislative Declaration – Repeal

1. 1. The general assembly finds and declares that:
      1. The COVID-19 pandemic has lead to an emergency need for increased placements for children and youth with behavioral or mental health needs, including those involved with the child welfare system; and
      2. As the state works to transition to the critical requirements of the federal “Family First Prevention Services Act”, it must ensure a smooth transition by helping existing residential child care facilities transition to qualified residential treatment programs or psychiatric residential treatment facilities.
   2. Therefore, the general assembly declares that the state should provide resources to qualified residential treatment programs, psychiatric residential treatment facilities, or therapeutic foster care providers to address this emergency situation and ensure there are high-quality providers available to meet these needs.
2. On or before August 1, 2021, the state department shall develop a program to provide emergency resources to licensed providers to help remove barriers such providers face in serving children and youth whose behavioral or mental health needs require services and treatment in a residential child care facility. Any such licensed provider shall meet the requirements of a qualified residential treatment program, as defined in section 26-5.4-102, a psychiatric residential treatment facility, as defined in section 26-5.4-103 (19.5), or therapeutic foster care, as defined in section 26-6-102 (39).
3. The state department may promulgate rules concerning the placement of a child or youth in the program. The rules may address quality assurance monitoring, admissions, discharge planning, appropriate length of stay, an appeals process for children and youth who are determined ineligible for the program, and compliance with applicable federal law, including the federal “Family First Prevention Services Act”; except that rules concerning the placement of a child or youth who is not in the custody of a state or county department of human or social services shall not inappropriately apply compliance with such act.
4. 1. On or before December 31, 2021, the state department shall contract with licensed providers for the delivery of services to children and youth who are determined eligible for and placed in the program. A provider that contracts with the state department shall not:
      1. Deny admittance of a child or youth if the child or youth otherwise meets the eligibility criteria for the program; or
      2. Discharge a child or youth based on the severity or complexity of the child or youth’s physical, behavioral, or mental health needs; except that the state department may arrange for the placement of a child or youth with an alternate contracted provider if the placement with the alternate provider is better suited to deliver services that meet the needs of the child or youth.
   2. The state department shall reimburse a provider directly for the costs associated with the placement of a child or youth in the program for the duration of the treatment, including the costs the provider demonstrates are necessary in order for the provider to operate continuously during this period.
   3. The state department shall coordinate with the department of health care policy and financing to support continuity of care and payment for services for any children or youth placed in the program.
   4. The state department shall reimburse the provider one hundred percent of the cost of unutilized beds in the program to ensure available space for emergency residential out-of-home placements.
5. 1. A hospital, health-care provider, provider of case management services, school district, managed care entity, or state or county department of human or social services may refer a family for the placement of a child or youth in the program. The entity referring a child or youth for placement in the program shall submit or assist the family with submitting an application to the state department for review. The state department shall consider each application as space becomes available. The state department shall approve admissions into the program and determine admission and discharge criteria for placement.
   2. The state department shall develop a discharge plan for each child or youth placed in the program. The plan must include the eligible period of placement of the child or youth and shall identify the entity that will be responsible for the placement costs if the child or youth remains with the provider beyond the date of eligibility identified in the plan.
   3. The entity or family that places the child or youth in the program retains the right to remove the child or youth from the program any time prior to the discharge date specified by the state department.
6. Within seven days after submitting an application to the state department for placing a child or youth in the program, the state department shall work with the referring entity and the child’s or youth’s parents or legal guardians to ensure the child or youth is assessed for eligibility for enrollment into the state medical assistance program. A child or youth who is eligible for enrollment into the state medical assistance program shall be enrolled. Enrollment of a child or youth into the state medical assistance program does not constitute automatic placement into the program.
7. No later than November 1, 2022, 2023, and 2024, the state department shall submit a written report to the house of representatives public and behavioral health and human services committee, the senate health and human services committee, or their successor committees, and the joint budget committee. At a minimum, the report must include:
   1. The number of applications received for placement of children and youth in the program;
   2. The number of children and youth accepted for placement in the program;
   3. The duration of each placement; and
   4. The daily rate paid to each provider for placement of children and youth.
8. This section is intended to provide enhanced emergency services resulting from the increased need for services due to the COVID-19 pandemic. No later than September 30, 2024, the state department shall submit recommendations to the house of representatives public and behavioral health and human services committee, the senate health and human services committee, or their successor committees, and the joint budget committee about how to provide necessary services for children and youth in need of residential care, including hospital step-down services on an ongoing basis.
9. This section is repealed, effective July 1, 2025.

Source: L. 2021: Entire section added, (SB 21-137), ch. 362, p. 2371, § 17, effective June 28.

Editor’s note: Section 38 of chapter 362 (SB 21-137), Session Laws of Colorado 2021, provides that section 17 of the act adding this section takes effect only if SB 21-288 becomes law and takes effect either upon the effective date of SB 21-137 or one day after the passage of SB 21-288, whichever is later. SB 21-288 became law and took effect June 11, 2021, and SB 21-137 took effect June 28, 2021.

Cross references: For the short title (“Behavioral Health Recovery Act of 2021”) and the legislative declaration in SB 21-137, see sections 1 and 2 of chapter 362, Session Laws of Colorado 2021.