By: Oliverson H.B. No. 2819

A BILL TO BE ENTITLED

AN ACT

relating to the licensing and regulation of outpatient behavioral health centers; authorizing civil and administrative penalties; imposing fees.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle C, Title 7, Health and Safety Code, is amended by adding Chapter 577B to read as follows:

CHAPTER 577B. OUTPATIENT BEHAVIORAL HEALTH CENTERS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 577B.001. DEFINITIONS. In this chapter:

(1) "Commission" means the Health and Human Services Commission.

(2) "Outpatient behavioral health center" means a private facility that provides partial hospitalization services or intensive outpatient mental health services for persons with substance use disorders or who are experiencing mental illness.

Sec. 577B.002. EXEMPTIONS. This chapter does not apply to:

(1) a mental hospital;

(2) a private mental hospital or other mental health facility licensed under Chapter 577; or

(3) a psychiatric residential youth treatment facility certified under Chapter 577A.

Sec. 577B.003. RULES. The executive commissioner shall adopt rules necessary to implement this chapter.

SUBCHAPTER B. LICENSING, FEES, AND INSPECTIONS

Sec. 577B.051. LICENSE REQUIRED. A person may not operate an outpatient behavioral health center without a license issued by the commission under this chapter.

Sec. 577B.052. LICENSE APPLICATION. (a) An applicant for a license under this chapter must submit a sworn application to the commission on a form prescribed by the commission.

(b) The commission 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 commission shall return the license fee if the application is denied.

(d) The application must contain:

(1) the name and location of the outpatient behavioral health center;

(2) the name and address of the physician to be in charge of the treatment of patients;

(3) the name and address of the outpatient behavioral health center owners, including the officers, directors, and principal stockholders if the owner is a corporation or other association;

(4) the number, duties, and qualifications of the professional staff;

(5) a description of the equipment and facilities of the outpatient behavioral health center; and

(6) other information required by the commission, including affirmative evidence of ability to comply with the commission's rules and standards.

(e) The applicant must submit a plan of the outpatient behavioral health center premises that describes the buildings and grounds and the manner in which the various parts of the premises are intended to be used.

(f) Subsection (e) does not apply to an application submitted for an outpatient behavioral health center that is in operation on September 1, 2025. This subsection expires September 1, 2026.

Sec. 577B.053. INVESTIGATION. The commission shall conduct an investigation as considered necessary after receiving the completed license application and the required fees.

Sec. 577B.054. ISSUANCE AND RENEWAL OF LICENSE. (a) The commission shall issue a license if the commission finds that the premises are suitable and that the applicant is qualified to operate an outpatient behavioral health center, in accordance with the requirements and standards prescribed by law and the commission.

(b) A license issued to the applicant under this chapter:

(1) is valid only for the premises described by the license; and

(2) is not transferable or assignable.

(c) A license issued under this chapter expires on the second anniversary of the date the license is issued or renewed.

(d) The commission shall renew a license if:

(1) the license holder submits to the commission a fee established by the executive commissioner under Section 577B.055; and

(2) on inspection and investigation the commission determines the license holder meets the requirements of this chapter and commission rules.

Sec. 577B.055. FEES. (a) The executive commissioner by rule shall adopt fees for the application for a license and for the renewal of a license in amounts reasonable and necessary to cover the cost of administering this chapter.

(b) All fees collected under this chapter shall be deposited to the credit of the general revenue fund.

SUBCHAPTER C. REGULATION OF OUTPATIENT BEHAVIORAL HEALTH CENTERS

Sec. 577B.101. MINIMUM STANDARDS. The executive commissioner shall adopt minimum standards to ensure proper care and treatment of patients in an outpatient behavioral health center.

SUBCHAPTER D. ENFORCEMENT

Sec. 577B.151. PENALTIES. A facility licensed under this chapter is subject to a civil penalty under Section 571.023 or an administrative penalty under Section 571.025, as applicable, for a violation of this chapter or a rule adopted under this chapter.

SECTION 2. Section 577.002(b), Health and Safety Code, is amended to read as follows:

(b) This chapter does not apply to:

(1) a psychiatric residential youth treatment facility certified under Chapter 577A; or

(2) an outpatient behavioral health center licensed under Chapter 577B.

SECTION 3. Section 577A.002, Health and Safety Code, is amended to read as follows:

Sec. 577A.002. EXEMPTIONS. This chapter does not apply to:

(1) a mental hospital; [or]

(2) a private mental hospital or other mental health facility licensed under Chapter 577; or

(3) an outpatient behavioral health center licensed under Chapter 577B.

SECTION 4. (a) As soon as practicable after the effective date of this Act, the executive commissioner of the Health and Human Services Commission shall adopt rules necessary to implement Chapter 577B, Health and Safety Code, as added by this Act.

(b) Notwithstanding Chapter 577B, Health and Safety Code, as added by this Act, an outpatient behavioral health center described by that chapter is not required to be licensed under that chapter until September 1, 2026.

SECTION 5. This Act takes effect September 1, 2025.