Family Law - Children in Out-of-Home Placement - Voluntary Placement Agreements

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
Italics indicate opposite chamber/conference committee amendments.
*hb1181*

HOUSE BILL 1181
D4, J1 (6lr2312)
ENROLLED BILL
— Appropriations and Health/Judicial Proceedings —
Introduced by Delegate Bagnall Delegates Bagnall, Alston, Cullison, Guzzone, Hill,
Hutchinson, S. Johnson, Kaufman, Kipke, Lopez, Martinez, M. Morgan,
Reilly, Rosenberg, Ross, Szeliga, Taveras, White Holland, and Woorman

Read and Examined by Proofreaders:

_______________________________________________
Proofreader.
_______________________________________________
Proofreader.

Sealed with the Great Seal and presented to the Governor, for his approval this

_______ day of _______________ at ________________________ o’clock, ________M.

______________________________________________
Speaker.

CHAPTER ______

AN ACT concerning 1

Family Law – Children in Out–of–Home Placement – Voluntary Placement 2
Agreements 3

FOR the purpose of altering provisions relating to children who are placed in an 4
out–of–home placement by a local department of social services under a voluntary 5
placement agreement; altering the duties of the Workgroup on Children in 6
Unlicensed Settings and Pediatric Hospital Overstays; requiring the Department of 7
Human Services and the Maryland Department of Health to jointly submit a certain 8
report concerning children who are placed in an out –of–home placement under a 9
voluntary placement agreement; establishing that certain child suppo rt due to the 10
State before the effective date of this Act shall be unenforceable and uncollectable; and 11
generally relating to children in out –of–home placement and voluntary placement 12
agreements. 13
2 HOUSE BILL 1181

BY repealing and reenacting, without amendments, 1
Article – Family Law 2
Section 5–525(a) and (d) 3
Annotated Code of Maryland 4
(2019 Replacement Volume and 2025 Supplement) 5

BY repealing and reenacting, with amendments, 6
Article – Family Law 7
Section 5–525(b), (c), and (e) 8
Annotated Code of Maryland 9
(2019 Replacement Volume and 2025 Supplement) 10

BY adding to 11
Article – Family Law 12
Section 5–525(m) through (p) 13
Annotated Code of Maryland 14
(2019 Replacement Volume and 2025 Supplement) 15

BY repealing and reenacting, with amendments, 16
Chapter 479 of the Acts of the General Assembly of 2025 17
Section 2 18

BY repealing and reenacting, with amendments, 19
Chapter 480 of the Acts of the General Assembly of 2025 20
Section 2 21

Preamble 22

WHEREAS, Maryland’s Voluntary Placement Agreement system was designed to 23
allow families to access out–of–home treatment for children with serious mental illness or 24
developmental disabilities without permanently surrendering custody; and 25

WHEREAS, Current statutory and administrative procedures have resulted in 26
significant delays in placement, o ften exceeding 60 to 90 days, contributing to extended 27
pediatric inpatient stays, emergency department boarding, and unnecessary family 28
distress; and 29

WHEREAS, The local care team process, while intended to coordinate interagency 30
services, has proven larg ely ineffective in facilitating timely or appropriate supports, and 31
its required involvement has become a systemic bottleneck; and 32

WHEREAS, The 2022 General Assembly enacted legislation intended to streamline 33
access to psychiatric residential treatment for Medicaid–eligible children by clarifying the 34
authority of local behavioral health authorities to approve the educational component of 35
residential placements; however, implementation challenges and unresolved interagency 36
HOUSE BILL 1181 3

roles have limited the realization of that intent, perpetuating delays and inequities for 1
families seeking timely psychiatric residential treatment; and 2

WHEREAS, The General Assembly recognizes the urgent need to codify timelines, 3
clarify agency accountability, and eliminate duplicative procedural barriers to ensure that 4
children in crisis receive timely, clinically appropriate care; now, therefore, 5

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7

Article – Family Law 8

5–525. 9

(a) (1) In this section, “disability” means: 10

(i) a physical or mental impairment that substantially limits one or 11
more of an individual’s major life activities; 12

(ii) a record of having a physical or mental impairment that 13
substantially limits one or more of an individual’s major life activities; or 14

(iii) being regarded as having a physical or mental impairment that 15
substantially limits one or more of an individual’s major life activities. 16

(2) “Disability” shall be construed in accordance with the ADA 17
Amendments Act of 2008, P.L. 110–325. 18

(b) (1) The Administration shall establish a program of out –of–home 19
placement for minor children: 20

(i) who are placed in the custody of a local department, for a period 21
of not more than 180 days, by a parent or legal guardian under a voluntary placement 22
agreement; 23

(ii) who are abused, abandoned, neglected, or dependent, if a 24
juvenile court: 25

1. has determined that continued residence in the child’s 26
home is contrary to the child’s welfare; and 27

2. has committed the child to the custody or guardianship of 28
a local department; or 29

(iii) who, with the approval of the Administration, are placed in an 30
out–of–home placement by a local department under a voluntary placement agreement 31
subject to paragraph (2) of this subsection. 32
4 HOUSE BILL 1181

(2) (i) A local department may not seek legal GUARDIANSHIP OR 1
custody of a child under a voluntary placement agreement if the child has a developmental 2
disability or a mental illness and the purpose of the voluntary placement agreement is to 3
obtain treatment or care related to the child’s disability that the parent is unable to provide. 4

(ii) A child described in subparagraph (i) of this paragraph may 5
remain in an out –of–home placement, INCLUDING A RESIDENTIAL PLACEMENT, under 6
a voluntary placement agreement for more than 180 days if the child’s disability 7
necessitates care or treatment in the out–of–home placement and a juvenile court makes a 8
finding that continuation of the placement is in the best interests of the child. 9

(iii) Each local department shall designate, from existing staff, a staff 10
person to administer requests for voluntary pl acement agreements for children with 11
developmental disabilities or mental illnesses. 12

(IV) IF A LOCAL DEPARTMENT RECEIVES A REQUEST F OR A 13
VOLUNTARY PLACEMENT AGREEMENT, THE LOCAL DEPARTMENT SHALL: 14

1. WITHIN 5 BUSINESS DAYS AFTER RECEIVING THE 15
REQUEST, SCHEDULE AN ASSESSME NT MEETING WITH THE CHILD’S FAMILY AND 16
TREATING PROVIDER; AND 17

2. WITHIN 5 BUSINESS DAYS AFTER THE ASSESSMENT 18
MEETING, ISSUE A WRITTEN ELIGIBILITY DETERMINATION TO THE CHILD’S FAMILY 19
AND REFERRING PROVIDER. 20

(V) 1. EACH LOCAL DEPARTMENT SHA LL REPORT ANY 21
DELAY IN ASSESSING THE CHILD AND PROVIDING AN ELIGIBILITY DETERMINATION 22
AS REQUIRED UNDER SU BPARAGRAPH (IV) OF THIS PARAGRAPH TO THE 23
ADMINISTRATION, INCLUDING REASONS FO R THE DELAY AND CORR ECTIVE 24
ACTIONS TAKEN BY THE LOCAL DEPARTMENT. 25

2. NOTHING IN THIS SUBPA RAGRAPH MAY BE 26
INTERPRETED TO PREVENT A LOCAL CARE TEAM FROM PROVIDING THE CHILD AND 27
FAMILY WITH ALTERNATIVE OR INTERIM SERVICES. 28

[(iv)] (VI) Each local department shall report annually to the 29
Administration on the number of requests for voluntary placement agreements for children 30
with developmental disabilities or mental illnesses that have been received, the outcome of 31
each request, and the reason for each denial. 32

[(v) On receipt of a request for a volunta ry placement agreement for 33
a child with a developmental disability or a mental illness, a local department shall discuss 34
the child’s case at the next meeting of the local care team for the purpose of determining 35
HOUSE BILL 1181 5

whether any alternative or interim services for the child and family may be provided by 1
any agency.] 2

(3) (i) The Administration shall establish a program of out –of–home 3
placement for former CINAs: 4

1. whose commitment to a local department was rescinded 5
after the individuals reached the age of 18 years but before the individuals reached the age 6
of 20 years and 6 months; and 7

2. who did not exit foster care due to reunification, adoption, 8
guardianship, marriage, or uniformed services duty. 9

(ii) The Administration shall adopt regulation s that include 10
eligibility requirements in accordance with federal law and regulations for providing 11
assistance to individuals at least 18 years old. 12

(iii) A local department may not seek legal custody of a former CINA 13
under a voluntary placement agreement. 14

(iv) A former CINA described in subparagraph (i) of this paragraph 15
may remain in an out –of–home placement under a voluntary placement agreement for 16
more than 180 days if the former CINA continues to comply with the voluntary placement 17
agreement and a juvenile court makes a finding that the continuation of the placement is 18
in the best interests of the former CINA. 19

(v) 1. A local department shall advise a child, in writing, before 20
emancipation of the right to reenter care and the procedures for reentering care under this 21
paragraph. 22

2. If a local department has knowledge that a former CINA 23
described in subparagraph (i) of this paragraph is homeless, as defined in 42 U.S.C. § 24
11434a, including by obtaining inf ormation regarding the former CINA’s homelessness in 25
an application for public assistance or through contact between the former CINA and a 26
caseworker, the local department shall contact the former CINA and advise the former 27
CINA of the right to reenter care and procedures for reentering care under this paragraph. 28

(c) In establishing the out–of–home placement program the Administration shall: 29

(1) provide time–limited family reunification services to a child placed in 30
an out–of–home placement and to the parents or guardian of the child, in order to facilitate 31
the child’s safe and appropriate reunification within a timely manner; 32

(2) concurrently develop and implement a permanency plan that is in the 33
best interests of the child; and 34

6 HOUSE BILL 1181

(3) IN CONSULTATI ON WITH THE MARYLAND DEPARTMENT OF 1
HEALTH, provide training on an annual basis for the staff at each local department who 2
administer requests for voluntary placement agreements for children with developmental 3
disabilities or mental illnesses under subsection (b) of this section, INCLUDING TRAINING 4
ON: 5

(I) TIMELINE AND PROCEDURAL COMPLIANCE; 6

(II) TRAUMA–INFORMED FAMILY ENGAGEMENT; AND 7

(III) INTERAGENCY COORDINATION. 8

(d) (1) The local department shall provide 24–hour a day care and supportive 9
services for a child who is committed to its custody or guardianship in an out –of–home 10
placement on a short –term basis or placed in accordance with a voluntary placement 11
agreement. 12

(2) (i) A child may not be committed to the custody or guardianship of 13
a local department and placed in an out –of–home placement solely because the child’s 14
parent or guardian lacks shelter or has a disability or solely because the child’s parents are 15
financially unable to provide treatment or care for a child with a developmen tal disability 16
or mental illness. 17

(ii) The local department shall make appropriate referrals to 18
emergency shelter services and other services for the homeless family with a child which 19
lacks shelter. 20

(e) (1) Unless a court orders that reasonable effo rts are not required under § 21
3–812 of the Courts Article or § 5 –323 of this title, reasonable efforts shall be made to 22
preserve and reunify families: 23

(i) prior to the placement of a child in an out –of–home placement, 24
to prevent or eliminate the need for removing the child from the child’s home; and 25

(ii) to make it possible for a child to safely return to the child’s home. 26

(2) In determining the reasonable efforts to be made and in making the 27
reasonable efforts described under paragraph (1) of this subsection[,]: 28

(I) A CHILD ’S PARENT OR LEGAL GU ARDIAN NEED NOT 29
EXHAUST ALL HOME– AND COMMUNITY–BASED SERVICES; AND 30

(II) the child’s safety and health shall be the primary concern. 31

HOUSE BILL 1181 7

(3) Reasonable efforts to place a child for adoption or with a legal guardian 1
may be made concurrently with the reasonable efforts described under paragraph (1) of this 2
subsection. 3

(4) If continuation of reasonable efforts to reunify the child with the child’s 4
parents or guardian is determined to be inconsistent wi th the permanency plan for the 5
child: 6

(i) reasonable efforts shall be made to place the child in a timely 7
manner in accordance with the permanency plan, including consideration of both in–State 8
and out –of–state placements, and to complete the steps to finalize the permanent 9
placement of the child; and 10

(ii) in a case in which the parent of the child is receiving treatment 11
in a residential substance use disorder treatment program with beds or services for 12
patients’ children and the child is in the pre sence of the child’s parent for the duration of 13
the child’s parent’s treatment, the local department shall file a report with the court that 14
explains: 15

1. why the child was not placed with the parent; 16

2. any efforts the local department has made toward 17
placement of the child; and 18

3. any difficulties with placing the child with the parent. 19

(M) (1) A PARENT OR LEGAL GUARDIAN WHO ENTERS INTO A VOLUNTARY 20
PLACEMENT AGREEMENT UNDER THIS SECTION R ETAINS ALL LEGAL AND 21
EDUCATIONAL DECISION–MAKING RIGHTS, UNLESS OTHERWISE AGREED. 22

(2) A LOCAL DEPARTMENT MAY NOT REQUIRE A PARENT OR LEGAL 23
GUARDIAN TO RELINQUI SH CUSTODY OR GUARDI ANSHIP OF A CHILD TO ACCESS 24
SERVICES. 25

(N) (1) A LOCAL DEPARTMENT SHA LL NOTIFY THE PARENT OR LEGAL 26
GUARDIAN OF A CHILD SUBJECT TO A VOLUNTARY PLACEMENT AGREEMENT OF THE 27
RIGHT TO PETITION TH E COURT FOR A MODIFI CATION OF AN EXISTIN G CHILD 28
SUPPORT OBLIGATION. 29

(2) (I) 1. THE EXCEPT AS PROVIDED IN SUBSUBPARAGRAPH 2 30
OF THIS SUBPARAGRAPH , THE ADMINISTRATION AND THE CHILD SUPPORT 31
ENFORCEMENT ADMINISTRATION SHALL COLLABORATE TO ESTAB LISH UNIFORM 32
CRITERIA FOR WAIVING OR REDUCING CHILD SU PPORT OBLIGATIONS FO R 33
LOW–INCOME FAMILIES WHO ENTER MAY NOT REFER A CHILD’S CASE TO THE CHILD 34
8 HOUSE BILL 1181

SUPPORT ENFORCEMENT ADMINISTRATION IF THE CHILD’S FAMILY ENTERS INTO A 1
VOLUNTARY PLACEMENT AGREEMENT UNDER THIS SECTION. 2

(II) ON OR BEFORE OCTOBER 1, 2026, THE CHILD SUPPORT 3
ENFORCEMENT ADMINISTRATION SHALL FILE A MOTION TO MOD IFY ANY CHILD 4
SUPPORT ORDER ISSUED UNDER A VOLUNTARY PLACEMENT AGREEMENT. 5

2. THE ADMINISTRATION MAY RE FER THE CASE OF A 6
CHILD WHOSE FAMILY H AS ENTERED INTO A VO LUNTARY PLACEMENT AGREEMENT 7
UNDER THIS SECTION T O THE CHILD SUPPORT ADMINISTRATION IF A C HILD 8
SUPPORT ORDER WILL N OT ADVERSELY AFFECT THE CHILD OR IMPEDE THE 9
COMPLETION OF THE CHILD’S PERMANENCY PLAN. 10

(II) THE COURT MAY NOT ORD ER THE PAYMENT OF CH ILD 11
SUPPORT BY THE PAREN T OR GUARDIAN OF A C HILD PLACED IN OUT –OF–HOME 12
PLACEMENT BY A LOCAL DEPARTMENT IN ACCORD ANCE WITH A VOLUNTAR Y 13
PLACEMENT AGREEMENT UNDER THIS SECTION IF A CH ILD SUPPORT ORDER WI LL 14
ADVERSELY AFFECT THE CHILD OR IMPEDE THE COMPLETION OF THE CH ILD’S 15
PERMANENCY PLAN. 16

(III) THE STATE MAY NOT ACCEPT AN ASSIGNMENT OF THE 17
RIGHT TO CHILD SUPPORT FOR A CHILD PLACE D IN AN OUT –OF–HOME PLACEMENT 18
BY A LOCAL DEPARTMEN T IN ACCORDANCE WITH A VOLUNTARY PLACEMEN T 19
AGREEMENT UNDER THIS SECTION IF THE ADMINISTRATION DETERMINES THAT THE 20
ASSIGNMENT OF AN EXI STING SUPPORT OBLIGA TION TO THE STATE WILL 21
ADVERSELY AFFECT THE CHILD OR IMPEDE THE COMPLETION OF THE CH ILD’S 22
PERMANENCY PLAN. 23

(O) (1) A THE LOCAL BEHAVIORAL HEALTH AUTHORITY SHA LL BE 24
NOTIFIED OF A CHILD WITH SPECIAL NEEDS WHO IS THE SUBJECT OF A VOLUNTARY 25
PLACEMENT AGREEMENT REQUEST FOR PSYCHIAT RIC RESIDENTIAL TREA TMENT 26
AND WHO IS ELIG IBLE TO RECEIVE MEDI CAL ASSISTANCE SHALL BE REFERRED 27
DIRECTLY TO THE LOCAL BEHAVIORAL HEALTH AUTHORITY. 28

(2) NOTHING IN THIS SUBSE CTION MAY BE INTERPR ETED TO 29
PREVENT A LOCAL CARE TEAM FROM PROVIDING THE CHILD AND FAMILY WITH 30
ALTERNATIVE OR INTERIM SERVICES. 31

(P) (1) ON OR BEFORE JULY 1, 2027, AND EACH JULY 1 THEREAFTER, 32
EACH LOCAL DEPARTMENT SHALL REPORT TO THE DEPARTMENT: 33

(I) THE NUMBER OF VOLUNT ARY PLACEMENT AGREEM ENT 34
REQUESTS RECEIVED IN THE PRECEDING YEAR; 35
HOUSE BILL 1181 9

(II) THE AVERAGE TIME IT TOOK FOR THE LOCAL DEPARTMENT 1
TO MAKE A DETERMINATION AND PLACEMENT; 2

(III) THE NUMBER OF REQUES TS THAT WERE DENIED AND THE 3
REASONS FOR THE DENIALS; AND 4

(IV) THE AVERAGE LENGTH O F A HOSPITAL STAY FO R A CHILD 5
AWAITING A PLACEMENT. 6

(2) ON OR BEFORE SEPTEMBER DECEMBER 1, 2027, AND EACH 7
SEPTEMBER DECEMBER 1 THEREAFTER, THE DEPARTMENT SHALL PUBLISH ON ITS 8
WEBSITE AGGREGATED S TATEWIDE DATA COMPIL ED FROM THE LOCAL 9
DEPARTMENT REPORTS UNDER PARAGRAPH (1) OF THIS SUBSECTION. 10

Chapter 479 of the Acts of 2025 11

SECTION 2. AND BE IT FURTHER ENACTED, That: 12

(a) (1) In this section, “child in an unlicensed setting” means an individual 13
under the age of 21 years in an out–of–home placement who is residing in a hotel, an office 14
building, a shelter, or any other unlicensed setting. 15

(2) “Child in an unlicensed setting” does not include an individual under 16
the age of 21 years who is receiving a self –independent living stipend, living with kin 17
awaiting approval for a placement, or on aftercare with a parent. 18

(b) (1) There is a Workgroup on Children in Unlicensed Settings and Pediatric 19
Hospital Overstays in the State. 20

(2) The Workgroup shall consist of representatives who have experience 21
and knowledge of working with children with behavioral health challenges, adver se 22
childhood experiences, and developmental disabilities, including: 23

(i) the Secretary of Health, or the Secretary’s designee; 24

(ii) the Secretary of Human Services, or the Secretary’s designee; 25

(iii) the Secretary of Juvenile Services, or the Secretary’s designee; 26

(iv) the State Public Defender, or the State Public Defender’s 27
designee; and 28

(v) the following members, appointed by the Governor: 29

10 HOUSE BILL 1181

1. one representative of the Maryland Association of 1
Resources for Families and Youth; 2

2. one representative of Disability Rights Maryland; 3

3. one representative of the Community Behavioral Health 4
Association of Maryland; 5

4. one representative of Maryland Legal Aid; 6

5. one representative of the Court Appointed Special 7
Advocates of Maryland; 8

6. one representative of the National Association of Social 9
Workers – Maryland who is a hospital–based clinical social worker; 10

7. one representative of the Maryland Chapter of the 11
American Academy of Pediatrics; 12

8. one representative of the Maryland Hospital Association; 13

9. one representative of a specialty psychiatric hospital; 14

10. one representative of a residential treatment provider in 15
the State; and 16

11. one representative of a family of a child in foster care, as 17
defined in § 8–101(h) of the Human Services Article. 18

(3) The members of the Workgroup shall elect the chair and vice chair of 19
the Workgroup. 20

(4) The Workgroup shall meet before August 1, 2025, and at least once 21
every 30 days thereafter. 22

(5) The State Council on Child Abuse and Neglect shall provide staff for 23
the Workgroup. 24

(6) A member of the Workgroup: 25

(i) may not receive compensation as a member of the Workgroup; 26
but 27

(ii) is entitled to reimbursement for expenses under the Standard 28
State Travel Regulations, as provided in the State budget. 29

(c) (1) The Workgroup shall: 30
HOUSE BILL 1181 11

(i) complete an assessment of the number, type, and cost of the 1
additional beds and supportive services needed to place all children in pediatric ov erstays 2
and other unlicensed settings in the least restrictive settings; 3

(ii) develop a comprehensive and sustainable resource development 4
plan designed to increase the number of licensed settings and end the use of pediatric 5
overstays and unlicensed settings; 6

(iii) develop an implementation plan with comprehensive data to 7
inform the plan; [and] 8

(iv) determine the anticipated timeline for when the practice of 9
placing children in unlicensed settings will cease; 10

(V) STUDY VOLUNTARY PLAC EMENT AGREEMENTS FOR 11
CHILDREN WITH A DEVELOPMENTAL DISABILITY OR MENTAL ILLNESS; AND 12

(VI) RECOMMEND STATUTORY AND BUDGETARY CHANGE S 13
NECESSARY TO TRANSFER FUNDING FROM THE DEPARTMENT OF HUMAN SERVICES 14
TO THE MARYLAND DEPARTMENT OF HEALTH. 15

(2) On or before October 1, [2025] 2026, the Workgroup shall report its 16
findings and recommendations to the Governor, THE JOINT COMMITTEE ON CHILDREN, 17
YOUTH, AND FAMILIES, and, in accordance with § 2 –1257 of the State Government 18
Article, the General Assembly. 19

Chapter 480 of the Acts of 2025 20

SECTION 2. AND BE IT FURTHER ENACTED, That: 21

(a) (1) In this section, “child in an unlicensed setting” means an individual 22
under the age of 21 years in an out–of–home placement who is residing in a hotel, an office 23
building, a shelter, or any other unlicensed setting. 24

(2) “Child in an unlicensed setting” does not include an individual under 25
the age of 21 years who is receiving a self –independent living stipend, living with kin 26
awaiting approval for a placement, or on aftercare with a parent. 27

(b) (1) There is a Workgroup on Children in Unlicensed Settings and Pediatric 28
Hospital Overstays in the State. 29

(2) The Workgroup shall consist of representatives who have experience 30
and knowledge of working with children with behavioral health challenges, adverse 31
childhood experiences, and developmental disabilities, including: 32

12 HOUSE BILL 1181

(i) the Secretary of Health, or the Secretary’s designee; 1

(ii) the Secretary of Human Services, or the Secretary’s designee; 2

(iii) the Secretary of Juvenile Services, or the Secretary’s designee; 3

(iv) the State Public Defender, or the State Public Defender’s 4
designee; and 5

(v) the following members, appointed by the Governor: 6

1. one representative of the Maryland Association of 7
Resources for Families and Youth; 8

2. one representative of Disability Rights Maryland; 9

3. one representative of the Community Behavioral Health 10
Association of Maryland; 11

4. one representative of Maryland Legal Aid; 12

5. one representative of the Court Appointed Special 13
Advocates of Maryland; 14

6. one representative of the National Association of Social 15
Workers – Maryland who is a hospital–based clinical social worker; 16

7. one representative of the Maryland Chapter of t he 17
American Academy of Pediatrics; 18

8. one representative of the Maryland Hospital Association; 19

9. one representative of a specialty psychiatric hospital; 20

10. one representative of a residential treatment provider in 21
the State; and 22

11. one representative of a family of a child in foster care, as 23
defined in § 8–101(h) of the Human Services Article. 24

(3) The members of the Workgroup shall elect the chair and vice chair of 25
the Workgroup. 26

(4) The Workgroup shall meet before August 1, 2 025, and at least once 27
every 30 days thereafter. 28

HOUSE BILL 1181 13

(5) The State Council on Child Abuse and Neglect shall provide staff for 1
the Workgroup. 2

(6) A member of the Workgroup: 3

(i) may not receive compensation as a member of the Workgroup; 4
but 5

(ii) is entitled to reimbursement for expenses under the Standard 6
State Travel Regulations, as provided in the State budget. 7

(c) (1) The Workgroup shall: 8

(i) complete an assessment of the number, type, and cost of the 9
additional beds and supportive services needed to place all children in pediatric overstays 10
and other unlicensed settings in the least restrictive settings; 11

(ii) develop a comprehensive and sustainable resource development 12
plan designed to increase the number of licensed settings and end the use of pediatric 13
overstays and unlicensed settings; 14

(iii) develop an implementation plan with comprehensive data to 15
inform the plan; [and] 16

(iv) determine the anticipated timeline for when the practice of 17
placing children in unlicensed settings will cease; 18

(V) STUDY VOLUNTARY PLAC EMENT AGREEMENTS FOR 19
CHILDREN WITH A DEVELOPMENTAL DISABILITY OR MENTAL ILLNESS; AND 20

(VI) RECOMMEND STATUTORY AND BUDGETARY CHANGE S 21
NECESSARY TO TRANSFER FUNDING FROM THE DEPARTMENT OF HUMAN SERVICES 22
TO THE MARYLAND DEPARTMENT OF HEALTH. 23

(2) On or before October 1, [2025] 2026, the Workgroup shall report its 24
findings and recommendations to the Governor, THE JOINT COMMITTEE ON CHILDREN, 25
YOUTH, AND FAMILIES, and, in accordance with § 2 –1257 of the State Governm ent 26
Article, the General Assembly. 27

SECTION 2. AND BE IT FURTHER ENACTED, That, on or before October 1, 2029, 28
the Department of Human Services and the Maryland Department of Health shall submit 29
a joint report to the Governor, the Joint Committee on Children, Youth, and Families, and, 30
in accordance with § 2 –1257 of the State Government Article, the General Assembly that 31
contains the following information concerning children who are placed in an out –of–home 32
placement under a voluntary placement agreement: 33

14 HOUSE BILL 1181

(1) the impact on hospital discharge delays; 1

(2) family outcomes and reunification rates; 2

(3) the implementation status of voluntary placement agreement reform; 3
and 4

(4) recommendations for changes in the law. 5

SECTION 3. AND BE IT FURTHER ENACTED, That the balance of any child 6
support owed to the State before the effective date of this Act for a child whose parent or 7
guardian has entered into a voluntary placement agreement with a local department shall 8
be unenforceable and uncollectable on the taking effect of this Act. 9

SECTION 3. 4. AND BE IT FURTHER ENACTED, That this Act shall take effect 10
July October 1, 2026. 11

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.