The judge made the decision during a brief proceeding Wednesday morning based on medical records from the troubled actress's doctors.
The former Nickelodeon star was set to appear in court on Sept. 24 regarding her April 2012 DUI arrest in West Hollywood, but the criminal proceedings in the case were put on hold after Bynes's defense attorney, Richard Hutton, entered documents claiming the 27-year-old actress was unfit to stand trial.
Bynes was formally diagnosed with schizophrenia and bipolar disorder in September after exhibiting erratic behavior and posting worrying tweets for months.
The star's family released a statement about the progress she's made during treatment after her diagnosis.
“The Bynes family would also like to thank all of Amanda’s supporters and well-wishers for their thoughts and prayers during this difficult time. Currently, upon recommendation by the skilled healthcare professionals at UCLA Medical Center, Amanda is receiving specialized treatment in a private facility outside of Los Angeles,” the statement read.
“Amanda is making great strides towards recovery. The entire Bynes family would like to ask that they be given some measure of privacy so they can focus on Amanda’s health and well-being.”
Bynes is expected to be released from a Malibu treatment facility in the coming weeks and is set to move back in with her parents.