CHAPTER 577.  PRIVATE MENTAL HOSPITALS AND OTHER MENTAL HEALTH
FACILITIES

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 board by rule shall adopt:

                       (1) an application fee;

                       (2) a license fee;

                       (3) a fee schedule for reviewing the plan of the hospital or
         facility premises; and

                       (4) a fee schedule for field surveys of construction plans.

         (b) The department may establish staggered license renewal
dates and dates on which fees are due.

         (c) A fee adopted under this chapter must be based on the
estimated cost to and the level of effort expended by the
department to conduct the activity for which the fee is imposed.

         (d) The fees should be designed to recover all of the
department's cost in granting the initial license and in renewing
the license, but may not exceed $250.

         (e) The fee for a plan review or field survey may not exceed
$650.

         (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) Fees collected under this chapter shall be deposited in the
state treasury in a separate fund and may be appropriated for
salaries, maintenance, travel expenses, repairs, printing,
postage, and other uses and purposes prescribed by this subtitle.

Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991.

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.

Added by Acts 1991, 72nd Leg., ch. 76, Sec. 1, eff. Sept. 1,
1991.

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, 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.

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.

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