Regular Session
Government Affairs & Regulatory Compliance Analysis
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.
Sen. Borris Miles·Senate Bill·Regular Session
This legislation has regulatory implications for the following Texas businesses and organizations:
Significant regulatory changes (effective 2025-09-01). Review with your legal and compliance teams to understand implications.
Affected business types:
lowMinimal cost impact anticipated.
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Key implementation requirements and action items for compliance with this legislation
To establish an affirmative defense against criminal charges, you must implement:
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation 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.
This bill's path through the Texas Legislature
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Common questions about SB1137
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.
SB1137 was authored by Texas Senator Borris Miles during the Regular Session.
SB1137 was signed into law by Governor Greg Abbott on June 20, 2025.
SB1137 is enforced by County/District Attorneys, Local Law Enforcement (Police/Sheriff) and Texas Health and Human Services Commission (Complaint referrals).
The regulatory priority for SB1137 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB1137 is estimated as "low". This may vary based on industry and implementation requirements.
SB1137 addresses topics including crimes, crimes--miscellaneous, health, health--general and mental health & substance abuse.
Key dates for SB1137: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.
SB1137 establishes the following penalties: criminal penalty of Class B Misdemeanor (Standard TX: up to 180 days jail and/or $2,000 fine) for Group home consultant referring a resident to an unlicensed/unpermitted home without meeting specific geographic or financial exceptions, or failing to disclose known complaints.; criminal penalty of Class A Misdemeanor (Standard TX: up to 1 year jail and/or $4,000 fine) for Group home owner/operator hiring or continuing to employ an individual with a prohibited criminal history (Note: This is a recodification of existing law from Ch. 769 to Ch. 767).. Consult with legal counsel for specific applicability to your situation.
SB1137 primarily affects healthcare providers and medical facilities. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
