16121.4. (Added by Stats. 2026, Ch. 26, Sec. 29.)

(a) (1) Adoption Assistance Program (AAP) payments may be made on behalf of an otherwise eligible child in a facility licensed as a short-term residential therapeutic program if the responsible public agency has confirmed that the short-term residential therapeutic program is necessary for the temporary resolution of the mental health, behavioral health, or emotional health needs of the child.

(2) (A) AAP benefits may be authorized to pay for an eligible child’s short-term residential therapeutic program if the placement is justified by a specific condition and authorization does not exceed a 12-month cumulative period of time, unless an exception is granted pursuant to paragraph (3).

(B) Transition planning shall begin when the child enters the short-term residential therapeutic program. If additional time is needed to transition the child home according to the transition plan, payment at the rate described in subdivision (b) may continue up to an additional 60 calendar days if the child remains in the placement. If the services the child needs to transition out of the short-term residential therapeutic program cannot be put in place within the additional 60 calendar days, payment may continue for an additional 30 days if the reason for the extension is documented in the child’s transition plan and authorized by the responsible public agency based upon a specific finding that the additional time is necessary because of the delay in services.

(3) An additional one-time six-month cumulative period of time may be provided when a psychiatrist or physician provides current documentation to demonstrate that the current short-term residential therapeutic program services are benefiting the child and that the child requires additional short-term residential therapeutic program services. If the child is not placed in a short-term residential therapeutic program, the psychiatrist or physician shall provide current documentation to demonstrate that the child would benefit from returning to the short-term residential therapeutic program.

(b) The AAP rate paid on behalf of a child in a facility licensed as a short-term residential therapeutic program shall be consistent with either of the following:

(1) The rate shall not exceed the rate paid for a foster care placement in a short-term residential therapeutic program.

(2) On the date that the department notifies the Legislature that the California Statewide Automated Welfare System and the statewide child welfare information system (known as the California Automated Response and Engagement System or CWS-CARES) can perform the necessary automation to implement the Tiered Rate Structure and the Legislature makes an appropriation as described in subdivision (h) of Section 11461, the AAP rate paid on behalf of a child in a short-term residential therapeutic program shall not exceed the sum of all of the following:

(A) The Tier 3+ Care and Supervision rate established under paragraph (3) of subdivision (h) of Section 11461.

(B) The Tier 3+ administrative and other activities rate established under paragraph (2) of subdivision (e) of Section 11462.

(C) The Tier 3+ Immediate Needs Funding established under subparagraph (B) of paragraph (1) of subdivision (d) of Section 16562.

(d) The designation of the placement facility shall be made, after consultation with the responsible public agency, by the adoptive parents. A short-term residential therapeutic program placement shall only be made as part of a plan for the return of the child to the adoptive family and the adoptive parents shall actively participate in the reunification plan.

(e) AAP benefits, as described in this section, shall only be authorized for an eligible child in a facility licensed as a short-term residential therapeutic program in California and shall not be authorized for any other out-of-home placement option within California.

(f) Following discharge from a short-term residential therapeutic program, the child shall be eligible for payment to be made for wraparound services, as described in Section 16121.3.

(g) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement, interpret, or make specific this section by means of all-county letters or similar written instructions, which shall be exempt from submission to or review by the Office of Administrative Law. These all-county letters or similar instructions shall have the same force and effect as regulations.

(h) This section shall become operative on January 1, 2028.