Creates New Jersey Mental Health Residential Reform Treatment Act.

New Jersey Assembly Bill A5823 establishes a licensure pathway for non-hospital based inpatient residential mental health treatment facilities serving adolescents (12-21) and adults requiring 45-120 day care. These facilities would provide comprehensive treatment including medication management, trauma-informed therapies, and holistic services - addressing a gap where current hospital-based care focuses only on short-term stabilization. The bill mandates strict licensing requirements covering staffing ratios, staff training, treatment plans, facility safety, and operator qualifications, while also creating a Mental Health Workforce Development Program with grants, loan forgiveness, and salary incentives to address the shortage of mental health professionals. This aims to improve access to mid-to-long-term care, reduce hospital strain, and align with similar models in states like Pennsylvania and Florida.