Senator José Hinojosa, sponsor of Senate Bill 437, told the Senate Health & Human Services Committee the measure would revise how civil and administrative penalties are assessed for chemical dependency treatment facilities regulated by the Health and Human Services Commission (HHSC).

Hinojosa said demand for rehabilitation services has risen, driven in part by fentanyl and a 22% increase in substance misuse after the COVID-19 pandemic, and that some facilities are financially strained. He said prior efforts—Senate Bill 2013 and a later measure, Senate Bill 2474—sought to study oversight and modify penalties but that a prior bill was vetoed in a broader property tax dispute.

Under the bill, the sponsor said, HHSC would be required to consider a facility’s financial viability and the level of culpability in a violation when setting penalties, with the goal of avoiding unnecessary closures that would reduce access to addiction services. Committee public testimony was closed and the bill was left pending.