A bill to amend the Public Health Service Act to clarify the meaning of least restrictive setting for the mentally ill and to require as a condition to the receipt of grants for mental health that States have in effect plans governing the release of individuals in inpatient mental health facilities.

Amends the Public Health Service Act to revise the meaning of least restrictive setting for the mentally ill for purposes of community mental health grants.

Requires States to have plans in effect governing the release of individuals from inpatient mental health facilities in order to receive such grants.