HB 2819

relating to the licensing and regulation of outpatient behavioral
health centers; authorizing civil and administrative penalties;
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
(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:
(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
(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
(4)  the number, duties, and qualifications of the
(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
(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
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
(b)  A license issued to the applicant under this chapter:
(1)  is valid only for the premises described by the
(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;
(2)  on inspection and investigation the commission
determines the license holder meets the requirements of this
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
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
(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
SECTION 3.  Section 577A.002, Health and Safety Code, is
Sec. 577A.002.  EXEMPTIONS.  This chapter does not apply to:
(2)  a private mental hospital or other mental health
facility licensed under Chapter 577; or
(3)  an outpatient behavioral health center licensed
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.