CHAPTER 577. PRIVATE MENTAL HOSPITALS AND OTHER MENTAL HEALTH FACILITIES
HEALTH AND SAFETY CODE
TITLE 7. MENTAL HEALTH AND MENTAL RETARDATION
SUBTITLE C. TEXAS MENTAL HEALTH CODE
CHAPTER 577. PRIVATE MENTAL HOSPITALS AND OTHER MENTAL HEALTH
FACILITIES
SUBCHAPTER A. GENERAL PROVISIONS; LICENSING AND PENALTIES
Sec. 577.001. LICENSE REQUIRED. (a) A person or political
subdivision may not operate a mental hospital without a license
issued by the department under this chapter.
(b) A community center or other entity designated by the Texas
Department of Mental Health and Mental Retardation to provide
mental health services may not operate a mental health facility
that provides court-ordered mental health services without a
license issued by the department under this chapter.
Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991. Amended by Acts 1993, 73rd Leg., ch. 573, Sec. 4.02, eff.
Sept. 1, 1993.
Sec. 577.0011. DEFINITIONS. In this chapter:
(1) "Board" means the Texas Board of Health.
(2) "Department" means the Texas Department of Health.
Added by Acts 1993, 73rd Leg., ch. 573, Sec. 4.03, eff. Sept. 1,
1993.
Sec. 577.002. EXEMPTIONS FROM LICENSING REQUIREMENT. A mental
health facility operated by the Texas Department of Mental Health
and Mental Retardation or a federal agency need not be licensed
under this chapter.
Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991. Amended by Acts 1993, 73rd Leg., ch. 573, Sec. 4.04, eff.
Sept. 1, 1993.
Sec. 577.003. ADDITIONAL LICENSE NOT REQUIRED. A mental
hospital licensed under this chapter that the Texas Department of
Mental Health and Mental Retardation designates to provide mental
health services is not required to obtain an additional license
to provide court-ordered mental health services.
Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991. Amended by Acts 1993, 73rd Leg., ch. 573, Sec. 4.04, eff.
Sept. 1, 1993.
Sec. 577.004. LICENSE APPLICATION. (a) An applicant for a
license under this chapter must submit a sworn application to the
department on a form prescribed by the department.
(b) The department shall prepare the application form and make
the form available on request.
(c) The application must be accompanied by a nonrefundable
application fee and by a license fee. The department shall return
the license fee if the application is denied.
(d) The application must contain:
(1) the name and location of the mental hospital or mental
health facility;
(2) the name and address of the physician to be in charge of the
hospital care and treatment of the patients;
(3) the names and addresses of the mental hospital owners,
including the officers, directors, and principal stockholders if
the owner is a corporation or other association, or the names and
addresses of the members of the board of trustees of the
community center or the directors of the entity designated by the
department to provide mental health services;
(4) the bed capacity to be authorized by the license;
(5) the number, duties, and qualifications of the professional
staff;
(6) a description of the equipment and facilities of the mental
hospital or mental health facility; and
(7) other information required by the department, including
affirmative evidence of ability to comply with the department's
rules and standards.
(e) The applicant must submit a plan of the mental hospital or
mental health facility premises that describes the buildings and
grounds and the manner in which the various parts of the premises
are intended to be used.
Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991.
Sec. 577.005. INVESTIGATION AND LICENSE ISSUANCE. (a) The
department shall conduct an investigation as considered necessary
after receiving the proper license application and the required
fees.
(b) The department shall issue a license if it finds that the
premises are suitable and that the applicant is qualified to
operate a mental hospital or a mental health facility that
provides court-ordered inpatient mental health services, in
accordance with the requirements and standards prescribed by law
and the department.
(c) A license is issued to the applicant for the premises
described and for the bed capacity specified by the license.
(d) The license is not transferable or assignable.
Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991.
Sec. 577.006. FEES. (a) The department shall charge each
hospital an annual license fee for an initial license or a
license renewal.
(b) The board by rule shall adopt the fees authorized by
Subsection (a) according to a schedule under which the number of
beds in the hospital determines the amount of the fee. The fee
may not exceed $15 a bed. A minimum license fee may be
established. The minimum fee may not exceed $1,000.
(c) The board by rule shall adopt fees for hospital plan reviews
according to a schedule under which the amounts of the fees are
based on the estimated construction costs.
(d) The fees imposed under the schedule may not exceed the
following:
Cost of Construction
Fee
(1) $ 100,000 or less
$ 500
(2) $ 100,001 - $ 600,000
$1,500
(3) $ 600,001 - $ 2,000,000
$3,000
(4) $ 2,000,001 - $ 5,000,000
$4,500
(5) $ 5,000,001 - $10,000,000
$6,000
(6) $ 10,000,001 and over
$7,500
(e) The department shall charge a fee for field surveys of
construction plans reviewed under this section. The board by rule
shall adopt a fee schedule for the surveys that provides a
minimum fee of $500 and a maximum fee of $1,000 for each survey
conducted.
(f) The department annually shall review the fee schedules to
ensure that the fees charged are based on the estimated costs to
and level of effort expended by the department.
(g) The department may establish staggered license renewal dates
and dates on which fees are due.
(h) A fee adopted under this chapter must be based on the
estimated cost to and level of effort expended by the department
to conduct the activity for which the fee is imposed.
(i) All license fees collected shall be deposited in the state
treasury to the credit of the department to administer and
enforce this chapter. These fees may be appropriated only to the
department.
Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991. Amended by Acts 1999, 76th Leg., ch. 1411, Sec. 8.01, eff.
Sept. 1, 1999.
Sec. 577.007. CHANGE IN BED CAPACITY. A mental hospital or
mental health facility may increase the bed capacity authorized
by the license at any time with the department's approval and may
decrease the capacity at any time by notifying the department.
Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991.
Sec. 577.008. REQUIREMENT OF PHYSICIAN IN CHARGE. Each licensed
private mental hospital shall be in the charge of a physician who
has at least three years experience as a physician in psychiatry
in a mental hospital or who is certified by the American Board of
Psychiatry and Neurology or by the American Osteopathic Board of
Psychiatry and Neurology.
Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991.
Sec. 577.009. LIMITATION ON CERTAIN CONTRACTS. A community
center or other entity the Texas Department of Mental Health and
Mental Retardation designates to provide mental health services
may not contract with a mental health facility to provide
court-ordered mental health services unless the facility is
licensed by the department.
Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991. Amended by Acts 1993, 73rd Leg., ch. 573, Sec. 4.04, eff.
Sept. 1, 1993.
Sec. 577.010. RULES AND STANDARDS. (a) The Texas Board of
Mental Health and Mental Retardation shall adopt rules and
standards the board considers necessary and appropriate to ensure
the proper care and treatment of patients in a private mental
hospital or mental health facility required to obtain a license
under this chapter.
(b) The rules must encourage mental health facilities licensed
under this chapter to provide inpatient mental health services in
ways that are appropriate for the diversity of the state.
(c) The standards for community-based crisis stabilization and
crisis residential services must be less restrictive than the
standards for mental hospitals.
(d) The department shall send a copy of the rules to each mental
hospital or mental health facility licensed under this chapter.
Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991. Amended by Acts 1993, 73rd Leg., ch. 573, Sec. 4.05, eff.
Sept. 1, 1993.
Sec. 577.0101. NOTIFICATION OF TRANSFER OR REFERRAL. (a) The
board shall adopt rules governing the transfer or referral of a
patient from a private mental hospital to an inpatient mental
health facility.
(b) The rules must provide that before a private mental hospital
may transfer or refer a patient, the hospital must:
(1) provide to the receiving inpatient mental health facility
notice of the hospital's intent to transfer a patient;
(2) provide to the receiving inpatient mental health facility
information relating to the patient's diagnosis and condition;
and
(3) obtain verification from the receiving inpatient mental
health facility that the facility has the space, personnel, and
services necessary to provide appropriate care to the patient.
(c) The rules must also require that the private mental hospital
send the patient's appropriate records, or a copy of the records,
if any, to the receiving inpatient mental health facility.
Added by Acts 1993, 73rd Leg., ch. 705, Sec. 4.07, eff. Aug. 30,
1993.
Sec. 577.011. RECORDS AND REPORTS. The department may require a
license holder to make annual, periodical, or special reports to
the department and to keep the records the department considers
necessary to ensure compliance with this subtitle and the
department's rules and standards.
Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991.
Sec. 577.012. DESTRUCTION OF RECORDS. (a) A private mental
hospital licensed under this chapter may authorize the disposal
of any medical record on or after the 10th anniversary of the
date on which the patient who is the subject of the record was
last treated in the hospital.
(b) If a patient was younger than 18 years of age when last
treated, the hospital may authorize the disposal of records
relating to the patient on or after the later of the patient's
20th birthday or the 10th anniversary of the date on which the
patient was last treated.
(c) The hospital may not destroy medical records that relate to
any matter that is involved in litigation if the hospital knows
that the litigation has not been finally resolved.
Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991.
Sec. 577.013. INVESTIGATIONS. (a) The department may make
investigations it considers necessary and proper to obtain
compliance with this subtitle and the department's rules and
standards.
(b) An agent of the department may at any reasonable time enter
the premises of a private mental hospital or mental health
facility licensed under this chapter to:
(1) inspect the facilities and conditions;
(2) observe the hospital's or facility's care and treatment
program; and
(3) question the employees of the hospital or facility.
(c) An agent of the department may examine or transcribe any
records or documents relevant to the investigation.
(d) All information and materials obtained or compiled by the
department in connection with a complaint and investigation
concerning a mental hospital licensed under this chapter are
confidential and not subject to disclosure, discovery, subpoena,
or other means of legal compulsion for their release to anyone
other than the department or its employees or agents involved in
the enforcement action except that this information may be
disclosed to:
(1) persons involved with the department in the enforcement
action against the licensed mental hospital;
(2) the licensed mental hospital that is the subject of the
enforcement action, or the licensed mental hospital's authorized
representative;
(3) appropriate state or federal agencies that are authorized to
inspect, survey, or investigate licensed mental hospital
services;
(4) law enforcement agencies; and
(5) persons engaged in bona fide research, if all
individual-identifying information and information identifying
the licensed mental hospital has been deleted.
(e) The following information is subject to disclosure in
accordance with Section 552.001 et seq., Government Code:
(1) a notice of alleged violation against the licensed mental
hospital, which notice shall include the provisions of law which
the licensed mental hospital is alleged to have violated, and the
nature of the alleged violation;
(2) the pleadings in the administrative proceeding; and
(3) a final decision or order by the department.
Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991. Amended by Acts 1999, 76th Leg., ch. 1444, Sec. 16, eff.
Aug. 30, 1999.
Sec. 577.014. OATHS. The department or its agent may administer
oaths, receive evidence, and examine witnesses in conducting an
investigation or other proceeding under this chapter.
Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991.
Sec. 577.015. SUBPOENAS. (a) The department or its agent, in
conducting an investigation or other proceeding under this
chapter, may issue subpoenas to compel the attendance and
testimony of witnesses and the production of documents or records
anywhere in this state that are related to the matter under
inquiry.
(b) If a person refuses to obey a subpoena, the department may
apply to the district court of Travis County for an order
requiring obedience to the subpoena.
Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991.
Sec. 577.016. DENIAL, SUSPENSION, PROBATION, OR REVOCATION OF
LICENSE. (a) The department may deny, suspend, or revoke a
license if the department finds that the applicant or licensee
has substantially failed to comply with:
(1) department rules;
(2) this subtitle; or
(3) Chapters 104 and 225.
(b) The department must give the applicant or license holder
notice of the proposed action, an opportunity to demonstrate or
achieve compliance, and an opportunity for a hearing before
taking the action.
(c) The department may suspend a license for 10 days pending a
hearing if after an investigation the department finds that there
is an immediate threat to the health or safety of the patients or
employees of a private mental hospital or mental health facility
licensed under this chapter. The department may issue necessary
orders for the patients' welfare.
(d) The department shall send the license holder or applicant a
copy of the department's decision by registered mail. If the
department denies, suspends, or revokes a license, the department
shall include the findings and conclusions on which the
department based its decision.
(e) A license holder whose license is suspended or revoked may
not admit new patients until the license is reissued.
(f) If the department finds that a private mental hospital or
mental health facility is in repeated noncompliance under
Subsection (a) but that the noncompliance does not endanger
public health and safety, the department may schedule the
hospital or facility for probation rather than suspending or
revoking the license of the hospital or facility. The department
shall provide notice to the hospital or facility of the probation
and of the items of noncompliance not later than the 10th day
before the date the probation period begins. The department shall
designate a period of not less than 30 days during which the
hospital or facility will remain under probation. During the
probation period, the hospital or facility must correct the items
that were in noncompliance and report the corrections to the
department for approval.
(g) The department may suspend or revoke the license of a
private mental hospital or mental health facility that does not
comply with the applicable requirements within the applicable
probation period.
Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991. Amended by Acts 1993, 73rd Leg., ch. 705, Sec. 3.12, eff.
Sept. 1, 1993; Acts 2003, 78th Leg., ch. 802, Sec. 14, 15, eff.
June 20, 2003.
Sec. 577.017. HEARINGS. (a) The department's legal staff may
participate in a hearing under this chapter.
(b) The hearing proceedings shall be recorded in a form that can
be transcribed if notice of appeal is filed.
Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991.
Sec. 577.018. JUDICIAL REVIEW OF DEPARTMENT DECISION. (a) An
applicant or license holder may appeal from a department decision
by filing notice of appeal in the district court of Travis County
and with the department not later than the 30th day after
receiving a copy of the department's decision.
(b) The department shall certify and file with the court a
transcript of the case proceedings on receiving notice of appeal.
The transcript may be limited by stipulation.
(c) The court shall hear the case on the record and may consider
other evidence the court determines necessary to determine
properly the issues involved. The substantial evidence rule does
not apply.
(d) The court may affirm or set aside the department decision or
may remand the case to the department for further proceedings.
(e) The department shall pay the cost of the appeal unless the
court affirms the department's decision, in which case the
applicant or license holder shall pay the cost of the appeal.
Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991.
Sec. 577.019. INJUNCTION. (a) The department, in the name of
the state, may maintain an action in a district court of Travis
County or in the county in which the violation occurs for an
injunction or other process against any person to restrain the
person from operating a mental hospital or mental health facility
that is not licensed as required by this chapter.
(b) The district court may grant any prohibitory or mandatory
relief warranted by the facts, including a temporary restraining
order, temporary injunction, or permanent injunction.
(c) At the request of the department or on the initiative of the
attorney general or district or county attorney, the attorney
general or the appropriate district or county attorney shall
institute and conduct a suit authorized by this section in the
name of the state. The attorney general may recover reasonable
expenses incurred in instituting and conducting a suit authorized
by this section, including investigative costs, court costs,
reasonable attorney fees, witness fees, and deposition expenses.
Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991. Amended by Acts 1993, 73rd Leg., ch. 705, Sec. 3.13, eff.
Sept. 1, 1993.