S.B. No. 1137 amends the Health and Safety Code by redesignating Chapter 769 to Chapter 767 and introduces new regulations concerning group homes. The bill defines a "group home" and outlines exemptions for certain facilities, such as licensed establishments and retirement communities. It mandates that owners or operators of group homes must obtain criminal history record information for all applicants and employees, prohibiting the hiring of individuals with specific criminal convictions. Violations of this requirement are classified as a Class A misdemeanor.

Additionally, the bill establishes regulations for group home consultants, who are defined as individuals that refer potential residents to specific group homes for compensation. It prohibits these consultants from referring potential residents to unlicensed or unpermitted group homes unless certain conditions are met, such as the absence of licensed homes in the area or financial constraints faced by the potential resident. Consultants must also inform potential residents of any known complaints against the unlicensed homes. Violating these provisions is classified as a Class B misdemeanor. The act is set to take effect on September 1, 2025.