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SB1137

Regular Session

Relating to group home consultant referrals; creating a criminal offense.

Critical
Low Cost
Effective:2025-09-01
SB1137
Critical
Relating to group home consultant referrals; creating a criminal offense.
Critical Compliance Urgency
Requires immediate attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
County/District AttorneysLocal Law EnforcementTexas Health and Human Services ...
Primary Author: Sen. Borris Miles
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: August 1, 2025 (Recommended to ensure staff training and contract updates are finalized prior to the law taking effect).
  • Agency Rulemaking: None. This statute is self-executing penal code. Do not await guidance from HHSC; local law enforcement and District Attorneys have immediate discretion to prosecute violations starting September 1.

Immediate Action Plan

  • 1. Database Scrub: Immediately categorize all facilities in your referral database as "Licensed," "Unlicensed/Permitted," or "Unknown." Suspend referrals to "Unknowns."
  • 2. Draft Defense Forms: Create the *Affordability Affidavit* and *Complaint Disclosure Acknowledgement* for use by intake staff.
  • 3. Update Employee Handbooks: For group home operators, insert the specific list of disqualifying criminal offenses into hiring manuals.
  • 4. Establish Verification Routine: Assign a compliance officer to verify facility licenses against the HHSC or local municipal database monthly.

Operational Changes Required

Contracts

  • Vendor Agreements (with Group Homes): Insert a "Warranty of Licensure" clause requiring facilities to provide current proof of state licensure or local permitting and to immediately notify your agency of any suspension or revocation.
  • Client Service Agreements: Add a "Referral Limitations & Disclosure" section. Explicitly state that referrals are prioritized to licensed facilities and that unlicensed referrals occur only under statutory exceptions (financial hardship or geographic unavailability).
  • Employment Contracts (Group Home Operators): Update "Termination for Cause" provisions to explicitly cite Texas Health and Safety Code Chapter 767 as grounds for immediate dismissal to comply with the mandatory employment ban.

Hiring/Training

  • Consultant Training: Staff must be trained on the "Triage Protocol." They are legally prohibited from referring to an unlicensed home unless they document that (A) the client cannot afford a licensed home, or (B) no licensed home exists in the region.
  • Employee Audit (Group Home Operators): Conduct an immediate audit of all current personnel files against the prohibited offense list in Chapter 767. Recodification often triggers enforcement sweeps; ensure no "grandfathered" employees with disqualifying records remain on payroll.

Reporting & Record-Keeping

To establish an affirmative defense against criminal charges, you must implement:

  • License Verification Log: A timestamped record showing the licensure status of a facility *at the moment* the referral was made.
  • Affordability Affidavit: A standardized form where the client attests to their inability to pay for licensed care, justifying the referral to an unlicensed home.
  • Complaint Disclosure Acknowledgement: A form signed by the client confirming they were verbally informed of any "actual knowledge" the consultant possesses regarding complaints against the unlicensed facility.

Fees & Costs

  • Administrative Overhead: Expect increased operational costs related to vetting facilities and maintaining the verification logs.
  • Legal Defense: Review E&O insurance policies; most exclude coverage for criminal defense costs.

Strategic Ambiguities & Considerations

  • "Geographic Region": The statute permits referral to an unlicensed home if no licensed home is in the "geographic region," but fails to define this term (e.g., zip code, county, or radius). Guidance: Define "region" narrowly in your internal policy (e.g., "within the specific municipality requested by the client") to avoid overstepping.
  • "Actual Knowledge": You must disclose known complaints. The law does not specify if this includes unverified rumors or only formal regulatory findings. Guidance: Adopt a policy of disclosing *all* logged complaints to the client to mitigate "failure to disclose" liability.

Need Help Understanding Implementation?

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Feb 6, 2025
Passed Senate
Apr 29, 2025
Passed House
May 28, 2025
Signed
Jun 20, 2025
TopicsCrimesCrimes--miscellaneousHealthHealth--generalMental Health & Substance Abuse
03

Senate Authors

Sen. Borris MilesDemocrat · Primary Author
Coauthors (1)

House Sponsors

Rep. Lauren Ashley SimmonsDemocrat · Primary Sponsor
Joint Sponsors

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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Quick Reference

Frequently Asked Questions

Common questions about SB1137

Q

What does Texas SB1137 do?

Effective September 1, 2025, SB1137 creates a new criminal offense (Class B Misdemeanor) for "Group Home Consultants" who refer clients to unlicensed or unpermitted group homes without meeting strict financial or geographic exceptions. Additionally, the bill recodifies existing Class A Misdemeanor penalties for group home operators who employ individuals with prohibited criminal histories, signaling renewed enforcement interest from local prosecutors. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: August 1, 2025 (Recommended to ensure staff training and contract updates are finalized prior to the law taking effect).

Q

Who authored SB1137?

SB1137 was authored by Texas Senator Borris Miles during the Regular Session.

Q

When was SB1137 signed into law?

SB1137 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB1137?

SB1137 is enforced by County/District Attorneys, Local Law Enforcement (Police/Sheriff) and Texas Health and Human Services Commission (Complaint referrals).

Q

How urgent is compliance with SB1137?

The compliance urgency for SB1137 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of SB1137?

The cost impact of SB1137 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB1137 address?

SB1137 addresses topics including crimes, crimes--miscellaneous, health, health--general and mental health & substance abuse.

Legislative data provided by LegiScanLast updated: November 25, 2025

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