(1) The youth placement committee may recommend youth for residential placement or treatment if:

(a) the youth experiences severe delinquent, social, behavioral and/or mental health problems that prevent adjustment to his family, school and/or community;

(b) the youth is a danger to himself or others;

(c) intensive residential treatment or a residential placement is necessary to restore or develop an acceptable personal or community adjustment;

(d) all other lesser restrictive alternatives cannot meet the needs of the youth; and

(e) there is a current mental health diagnosis and:

(i) a certificate of need and preauthorization through a DPHHS mental health services contractor, which supports the recommended placement in a residential treatment facility; or

(ii) a formal assessment of the youth which supports the need for a residential placement.

(2) Placement in any residential treatment or a residential placement outside of Montana will not be approved, unless:

(a) there are no available programs, facilities or other placements in Montana accessible during the next 10 days which can provide appropriate treatment or services for the youth; or

(b) the placement is in closer proximity to the youth's family than any placement available within the state; and

(c) the placement can provide the appropriate services and treatment of the youth at a cost less than that offered by any available placement within the state.

(3) Placement in residential treatment or a residential placement shall not exceed six months, unless extension of the placement is authorized in writing by the department in non-participating districts or the presiding youth court judge in participating districts.   Any extension may only be made following the placement committee review and recommendation to the department or the presiding youth court judge.

(a) Extensions will be granted if:

(i) the youth is making active, consistent and measurable progress toward changing the behaviors which mandated placement;

(ii) the youth has a continuing need for intensive treatment; and

(iii) the youth will be able to be reunified with his family or reintegrated into the community within a reasonable amount of time.

(4) No youth shall be placed in residential treatment or a residential placement unless:

(a) there is a contract with DPHHS or;

(b) an individual placement agreement signed by the provider and the placing agency which contains the following:

(i) identification of the problems of the youth which require placement;

(ii) services to be provided for the youth;

(iii) duration of the placement;

(iv) desired outcome of the services or treatment to be provided with a description of the instrument to be used to measure the outcome;

(v) the requirement for a discharge plan that includes:

(A) provisions for any medically necessary or recommended mental health services to be provided in the community; and

(B) a description of a step down or transfer plan which may be initiated if emergency removal of the youth is required by either the facility or placing worker;

(vi) costs for services or placement; and

(vii) identification of financially responsible party.