2009 Texas Code
HEALTH AND SAFETY CODE
TITLE 7. MENTAL HEALTH AND MENTAL RETARDATION
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.