Dinah Morley, acting director of the young people's mental health charity, said the second draft did not do enough to improve support for adolescents.
"It was disappointing that most of the things we wanted were not included," said Morley.
YoungMinds said the bill should ensure that adolescent in-patients are placed in age-appropriate units and that the needs of the family are considered when a parent or young person is a patient.
The new version will be examined by a Parliamentary committee, which will produce a report on the bill in March next year. The original draft was published in 2002.
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