Directs DHS to establish Children's Partial Hospitalization Pilot Program.

This bill establishes a 36-month pilot program allowing New Jersey's NJ FamilyCare health insurance program to reimburse non-hospital-based partial hospitalization services for children aged 5-14 with mental health needs. It directly affects low-income children requiring intensive outpatient mental health care and providers who can apply to participate. The key provision changes current reimbursement rules - previously requiring services to occur in a hospital - to permit care at non-hospital locations, while maintaining all other federal and state eligibility requirements. The program requires the Department of Human Services to select one provider, monitor outcomes, and report findings to the Governor and Legislature within 36 months of selection.