SB 1777

relating to a prohibition on payments for certain group home
referrals; creating a criminal offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Chapter 769, Health and Safety Code, as added by
Chapter 141 (S.B. 188), Acts of the 88th Legislature, Regular
Session, 2023, is redesignated as Chapter 767, Health and Safety
Code, and amended to read as follows:
CHAPTER 767 [769].  REGULATION OF CERTAIN GROUP HOMES
Sec. 767.001  [769.001].  DEFINITION.  In this chapter,
"group home" means an establishment that:
(1)  provides, in one or more buildings, lodging to
three or more residents who are unrelated by blood or marriage to
the owner of the establishment; and
(2)  provides those residents with community meals,
light housework, meal preparation, transportation, grocery
shopping, money management, laundry services, or assistance with
self-administration of medication but does not provide personal
care services as defined by Section 247.002.
Sec. 767.002  [769.002].  EXEMPTIONS.  This chapter does
(1)  a person who holds a license issued under Chapter
(2)  a person, establishment, or facility exempt from
licensing under Section 142.003(a)(19), 242.003(3), or 247.004(4);
(3)  a hotel as defined by Section 156.001, Tax Code;
(6)  a child-care facility as defined by Section
(7)  a family violence shelter center as defined by
Section 51.002, Human Resources Code; or
(8)  a sorority or fraternity house or other dormitory
associated with an institution of higher education.
Sec. 767.003  [769.003].  CRIMINAL HISTORY RECORD
INFORMATION REQUIREMENT FOR APPLICANTS AND EMPLOYEES; CRIMINAL
PENALTY.  (a)  An owner or operator of a group home shall obtain
criminal history record information maintained by the Department of
Public Safety of the State of Texas on each individual who is an
applicant for employment with or an employee of the group home.
(b)  An owner or operator of a group home may not hire or
continue to employ an individual for whom the owner or operator
obtains criminal history record information on the applicant's or
employee's conviction of an offense under Chapter 19, 20, 20A, 21,
22, 25, 28, 29, 30, 31, 32, 33, 33A, 34, 35, 35A, or 71, Penal Code,
or Section 48.015, 48.02, 48.03, or 48.04, Penal Code, or any other
offense punishable as a Class A misdemeanor or a felony.
(c)  An owner or operator of a group home who violates
Subsection (b) commits an offense. An offense under this section is
Sec. 767.004.  PROHIBITED PAYMENT FOR CERTAIN GROUP HOME
REFERRALS; CRIMINAL PENALTY.  (a)  In this section, "health care
provider" means an individual who is licensed, certified, or
otherwise authorized to provide health care services in this state.
(b)  A health care provider or employee or contractor of a
health care provider may not accept any form of payment for
referring a potential resident to a group home, including a group
home operating under the home and community-based services (HCS)
waiver program, if the group home is owned or operated by a person
who does not hold a license or permit for the group home issued in
accordance with applicable state laws or local regulations.
(c)  A health care provider or employee or contractor of a
health care provider who violates this section commits an offense.
An offense under this section is a Class B misdemeanor.
SECTION 2.  To the extent of any conflict, this Act prevails
over another Act of the 89th Legislature, Regular Session, 2025,
relating to nonsubstantive additions to and corrections in enacted
SECTION 3.  This Act takes effect September 1, 2025.