(a) This subchapter apply to all facilities of the Texas Department of Mental Health and Mental Retardation and their agents.(b) All facilities are responsible for amending their contracts to ensure contractors' compliance as specified in §417.513 of this title (relating to Contractors).(c) This subchapter does not apply to:(1) psychiatric hospitals licensed by the Texas Department of Health (TDH) under Chapter 577 of the Texas Health and Safety Code; or(2) state-funded community hospitals, which are inpatient mental health facilities licensed by the Texas Department of Health under the Texas Health and Safety Code, Chapter 242, or operated by a university health system and exempted from licensure, that provides TDMHMR-funded inpatient mental health services pursuant to a contract between TDMHMR and a local authority.