BILL ANALYSIS Senate Research Center S.B. 1777 89R10486 EAS-D By: Miles Health & Human Services 4/4/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT When patients are leaving the hospital, they may face a difficult decision of where to live that can provide that they need. Group homes can provide that environment. Patients rely on the medical staff at hospitals to be a trusted source. A medical professional should maintain their dedication to the patient. As group homes across Texas remain largely unregulated, it is easy to trust a medical professional and end up in a bad group home that can be damaging to a person's health. If a medical professional receives financial compensation from a group home for a referral, it can break the trust between the patient and the medical professional and create a bad incentive structure. S.B. 1777 prohibits a medical professional or contracted professional of a hospital from receiving payment for a referral to a group home. It creates a class B misdemeanor for violating this section. As proposed, S.B. 1777 amends current law relating to a prohibition on payments for certain group home referrals and creates a criminal offense. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Redesignates Chapter 769, Health and Safety Code, as added by Chapter 141 (S.B. 188), Acts of the 88th Legislature, Regular Session, 2023, as Chapter 767, Health and Safety Code, and amends it, as follows: CHAPTER 767. REGULATION OF CERTAIN GROUP HOMES Sec. 767.001. DEFINITION. Redesignates existing Section 769.001 as Section 767.001 and makes no further changes. Sec. 767.002. EXEMPTIONS. Redesignates existing Section 769.002 as Section 767.002 and makes no further changes. Sec. 767.003. CRIMINAL HISTORY RECORD INFORMATION REQUIREMENT FOR APPLICANTS AND EMPLOYEES; CRIMINAL PENALTY. Redesignates existing Section 769.003 as Section 767.003 and makes no further changes. Sec. 767.004. PROHIBITED PAYMENT FOR CERTAIN GROUP HOME REFERRALS; CRIMINAL PENALTY. (a) Defines "health care provider." (b) Prohibits a health care provider or employee or contractor of a health care provider from accepting 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) Provides that a health care provider or employee or contractor of a health care provider who violates this section commits an offense. Provides that an offense under this section is a Class B misdemeanor. SECTION 2. Provides that, 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 codes. SECTION 3. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 1777
89R10486 EAS-D By: Miles
Health & Human Services
4/4/2025
As Filed
Senate Research Center
S.B. 1777
89R10486 EAS-D
By: Miles
Health & Human Services
4/4/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
When patients are leaving the hospital, they may face a difficult decision of where to live that can provide that they need. Group homes can provide that environment.
Patients rely on the medical staff at hospitals to be a trusted source. A medical professional should maintain their dedication to the patient. As group homes across Texas remain largely unregulated, it is easy to trust a medical professional and end up in a bad group home that can be damaging to a person's health. If a medical professional receives financial compensation from a group home for a referral, it can break the trust between the patient and the medical professional and create a bad incentive structure.
S.B. 1777 prohibits a medical professional or contracted professional of a hospital from receiving payment for a referral to a group home. It creates a class B misdemeanor for violating this section.
As proposed, S.B. 1777 amends current law relating to a prohibition on payments for certain group home referrals and creates a criminal offense.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Redesignates Chapter 769, Health and Safety Code, as added by Chapter 141 (S.B. 188), Acts of the 88th Legislature, Regular Session, 2023, as Chapter 767, Health and Safety Code, and amends it, as follows:
CHAPTER 767. REGULATION OF CERTAIN GROUP HOMES
Sec. 767.001. DEFINITION. Redesignates existing Section 769.001 as Section 767.001 and makes no further changes.
Sec. 767.002. EXEMPTIONS. Redesignates existing Section 769.002 as Section 767.002 and makes no further changes.
Sec. 767.003. CRIMINAL HISTORY RECORD INFORMATION REQUIREMENT FOR APPLICANTS AND EMPLOYEES; CRIMINAL PENALTY. Redesignates existing Section 769.003 as Section 767.003 and makes no further changes.
Sec. 767.004. PROHIBITED PAYMENT FOR CERTAIN GROUP HOME REFERRALS; CRIMINAL PENALTY. (a) Defines "health care provider."
(b) Prohibits a health care provider or employee or contractor of a health care provider from accepting 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) Provides that a health care provider or employee or contractor of a health care provider who violates this section commits an offense. Provides that an offense under this section is a Class B misdemeanor.
SECTION 2. Provides that, 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 codes.
SECTION 3. Effective date: September 1, 2025.