Texas's Chemical Dependency Treatment Facility License

In Texas, "a facility providing or offering chemical dependency treatment in Texas shall have a license issued by the Texas Health and Human Services Commission" unless it falls into a listed exemption (26 Tex. Admin. Code 564.401(a)). The rules sit in chapter 564 of Title 26, where they were transferred from Title 25 effective April 30, 2024. They are short, specific and unusually clear about timelines, which makes Texas one of the more predictable states to license in, provided the file is complete.

Who needs a Texas license, and who is exempt?

Any facility providing or offering chemical dependency treatment needs one, "for each physical location at which it provides residential services or outpatient services" (564.401(b)). The listed exemptions include:

• facilities operated by the federal government or directly by the State of Texas;
• facilities HHSC licenses under certain other Health and Safety Code chapters;
• educational programs for intoxicated drivers;
• an individual who personally provides counseling or support services but does not offer a chemical dependency treatment program;
• the private practice of a licensed health care practitioner or licensed chemical dependency counselor personally rendering services within the scope of their license in their own office;
• religious organizations registered under Health and Safety Code chapter 464, subchapter C;
• 12-step or similar self-help programs that charge participants nothing, let them stay anonymous and do not offer a treatment program;
• juvenile justice facilities and programs; and
• a satellite office where staff work under the supervision of a licensed outpatient facility and the services fall within that facility's license.

The license "is not transferable to a separate legal entity or to a different physical address" (564.401(c)). A new owner or a new address means a new application.

Which documents does an initial application need?

Section 564.403(a) lists the core: a complete licensure application, an operational plan, the items on HHSC's new applicant checklist, proof of liability insurance and the application fee. The operational plan is where most of the work is. It describes the services, staffing, policies and procedures the facility will actually run, and HHSC reads it against the standards in the rest of chapter 564, from client rights and screening to medication and, for residential sites, physical plant requirements.

How long does HHSC take?

Texas is one of the few states that writes its clocks into the rule (564.403):

1. Within 45 days of receiving the application, HHSC notifies the applicant that it is materially complete or lists what is missing.
2. If an on-site inspection is needed, HHSC conducts it within 45 days of receiving a materially complete packet.
3. HHSC reports any deficiencies found on site within 30 days, and the applicant must show corrective action in the time the report sets.
4. HHSC issues the license within 45 days of receiving all required evidence of compliance and fees.

Two hard edges frame those clocks. If the applicant has not shown compliance within six months of HHSC receiving the application, the application is denied, and the applicant may reapply only after another six months with a new application and fee (564.403(f)). And the applicant "shall not provide chemical dependency treatment before receiving written notice of licensure approval" (564.403(g)). Once licensed, the certificate is displayed at each outpatient location and each approved residential site.

What does the license cost?

Section 564.408 publishes the fee schedule. The base fee for an initial or renewal license, which includes application and review, is $1,200. Each outpatient or residential site at a separate physical address adds $125, and each bed adds $35. Fees are paid by cashier's check or money order and are not refundable. A facility pays the full licensure fee for any period in which it provides treatment, and failing to tell HHSC about a closure does not excuse the fee.

How does renewal work?

A Texas license "expires two years from the date of issuance." The licensee files for renewal and pays the renewal fee at least 60 days before expiry, and a facility may not provide services after the expiration date unless it submitted the application update and fee by that date (564.404).

Which changes need approval, and which need notice?

Section 564.405 splits changes into two groups. A facility must apply, pay and receive written approval before adding a new detoxification service, adding or moving a residential site, or increasing residential beds. If the facility does not provide what HHSC needs within six months, the change application may be denied, with a six-month wait to reapply. A facility must notify HHSC in writing before adding a new residential, day treatment or outpatient service, adding or moving an outpatient site, or serving a new age group or gender, and must notify HHSC before or immediately after a name change, a closure, a decrease in beds or the end of a service.

A site where services stop for more than 60 days has its license automatically retired unless the facility asks for inactive status, which is limited to 60 days (564.406). HHSC may inspect at any reasonable time, scheduled or unannounced, and may interview staff and clients and copy records (564.407).

What happens after a revocation?

HHSC may act against an applicant or facility if an owner, governing body member, administrator, clinical staff member or other associated person has a documented history of client abuse, exploitation or neglect, violates the statute or rules, or owes HHSC money (564.409(a)). If a facility's license is revoked, its governing body, administrators and management may not apply for, or be associated with, a new application until they petition HHSC and show they were not responsible for the problem or that enough time has passed (564.409(e)). That is a point to check on every principal before an application goes in.

Are opioid treatment programs licensed differently in Texas?

Narcotic treatment programs follow a separate chapter, 26 Tex. Admin. Code chapter 563, which has its own section on applications, fees and permits. An opioid treatment program also needs SAMHSA certification, OTP accreditation and DEA registration; the sequence is in opening an opioid treatment program and on our OTP approval hub.

Can we prepare the Texas application?

We write the operational plan and policies to chapter 564, assemble the application and checklist items, prepare the site for HHSC's inspection, and draft corrective action responses. Your owner or officer signs the application and pays HHSC. The State License package is $1,995 for an outpatient site or $2,995 for a residential or detox site, and each added site or service is $595. Counselors joining your program from out of state can use White Glove Counseling's guide to the Texas LPC for out-of-state counselors. Sources are on the Texas page.