Senate committee approves new licensure for residential treatment centers for youth

Senate Bill 191, sponsored by Senator Cuffe, would create a new licensure category — residential treatment centers (RTCs) — intended to fill a gap between high‑acuity psychiatric residential treatment facilities and other non‑healthcare residential programs. The Senate committee recommended the bill do pass on second reading.

The nut graf: proponents said the new RTC license would enable providers offering lower‑acuity behavioral health services for youth to qualify as a health care facility so that private insurers will reimburse treatment in‑state, keeping more Montana children closer to home and expanding capacity that currently sends many families out of state.

Senator Cuffe described the unmet need and provided several anecdotal stories from a facility in his district called Turning Winds, citing graduates who later found stable employment or educational success. He said the bill would create about 60 jobs at a minimum wage starting point and allow facilities to be treated as healthcare providers eligible for insurance reimbursement; proponents clarified that the bill is not creating Medicaid eligibility changes but affects private insurance recognition.

Department of Public Health and Human Services staff testified in informational roles at the committee hearing; the bill passed committee with a recorded vote of 42 ayes and 8 nays on second reading as recorded by the clerk.

If enacted, the statute would establish licensing standards and room‑and‑board regulatory authority for RTCs, require oversight by DPHHS and extend appropriate educational funding and services to children placed in licensed RTCs.

Votes recorded: committee recommendation to pass recorded 42–8. The committee report later listed SB 191 among bills recommended to pass that day.