Amends TCA Title 49.

IN-STATE RESIDENTIAL MENTAL HEALTH FACILITY Present law provides that an LEA must allocate funding in an amount equal to the per pupil state and local funds received by the LEA to a state-licensed residential mental health facility on a prorated daily basis for the student's length of stay if, among other things, the student admitted to the residential mental health facility was enrolled in and attended a public school in this state for the one full school year immediately preceding the student's admission to the facility and is enrolled in a public school in this state at the time of admission to the facility. Beginning with the 2024-2025 school year and applying to each school year thereafter, this bill replaces those requirements, providing, instead, that an LEA must allocate funding in an amount equal to the per pupil state and local funds received by the LEA to a state-licensed residential mental health facility on a prorated daily basis for the student's length of stay if, among other things, the student admitted to the residential mental health facility is enrolled in a public school in this state at the time of admission to the facility, and the student's parents or legal guardians are residents of this state. OUT-OF-STATE RESIDENTIAL MENTAL HEALTH FACILITY Present law provides that an LEA must allocate funding in an amount equal to the per pupil state and local funds received by the LEA to an out-of-state residential mental health facility on a prorated daily basis for the student's length of stay if, among other things, (i) the residential mental health facility serves at least 15 Tennessee students per school year, and (ii) the student admitted to the residential mental health facility was enrolled in and attended a public school in this state for the one full school year immediately preceding the student's admission to the facility, is enrolled in a public school in this state at the time of admission to the facility, and has an active IEP from an LEA in this state at the time of the medical placement decision. Beginning with the 2024-2025 school year and applying to each school year thereafter, this bill replaces those requirements, providing, instead, that an LEA must allocate funding in an amount equal to the per pupil state and local funds received by the LEA to an out-of-state residential mental health facility on a prorated daily basis for the student's length of stay if, among other things, the student admitted to the residential mental health facility was enrolled in and attended a public school in this state immediately preceding the student's admission to the facility, and the student's parents or legal guardians are residents of this state at the time of the student's admission to the facility.