Amends Section 10.68A(a)(7) of SL 2009-451, as amended, to direct that the Department of Health and Human Services’ restructuring of the Medicaid child mental health, developmental disabilities, and substance abuse residential services program addresses requiring the completion of an assessment, in addition to other specified criteria, to ensure the appropriateness of placement, before a child can be admitted to Level III or Level IV placement. Limits the length of placement to no more than 180 days (was, 120 days). Provides that any exceptions to the time limit will require a psychological or psychiatric assessment that may be completed by the Critical Access Behavioral Health Agency (CABHA) for CABHAs, or an independent psychological or psychiatric assessment for non-CABHAs (was, required an independent psychiatric assessment to make an exception to the length of stay). Requires submission of a discharge plan for the placement request to be complete; however, does not condition receipt of authorization approval upon all signatures. Directs the local management entity to designate appropriate individuals who can sign the discharge plan within 24 hours of receipt.