BILL ANALYSIS Senate Research Center C.S.S.B. 1777 89R23004 EAS-D By: Miles Health & Human Services 4/15/2025 Committee Report (Substituted) AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Patients leaving the hospital often face difficult decisions about where to live to receive the environment they need. Group homes can provide that environment. Patients trust medical professionals for guidance, but with group homes in Texas largely unregulated, this trust can be exploited. If a medical professional receives financial compensation for referring a patient to a group home, it creates a harmful incentive and breaks patient trust. S.B. 1777 key provisions include: Prohibits medical professionals and contracted hospital staff from receiving payment for referring patients to unlicensed group homes. Establishing a Class B misdemeanor penalty for violations of this provision. The substitute simply strikes references to HCS waiver homes to only focus on unlicensed group homes. C.S.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 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 C.S.S.B. 1777
89R23004 EAS-D By: Miles
Health & Human Services
4/15/2025
Committee Report (Substituted)
Senate Research Center
C.S.S.B. 1777
89R23004 EAS-D
By: Miles
Health & Human Services
4/15/2025
Committee Report (Substituted)
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
* Patients leaving the hospital often face difficult decisions about where to live to receive the environment they need. Group homes can provide that environment.
* Patients trust medical professionals for guidance, but with group homes in Texas largely unregulated, this trust can be exploited.
* If a medical professional receives financial compensation for referring a patient to a group home, it creates a harmful incentive and breaks patient trust.
S.B. 1777 key provisions include:
* Prohibits medical professionals and contracted hospital staff from receiving payment for referring patients to unlicensed group homes.
* Establishing a Class B misdemeanor penalty for violations of this provision.
* The substitute simply strikes references to HCS waiver homes to only focus on unlicensed group homes.
C.S.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 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.