S.B. No. 1777 aims to regulate certain group homes in Texas by prohibiting payments for referrals to these homes if they are not properly licensed. The bill redesignates Chapter 769 of the Health and Safety Code to Chapter 767 and includes a definition of "group home," which refers to establishments providing lodging and certain services to three or more unrelated residents without offering personal care services. It also outlines exemptions for various licensed facilities and establishments, such as child-care facilities and retirement communities.

Additionally, the bill establishes requirements for criminal history checks for group home employees and imposes penalties for non-compliance. Specifically, it prohibits health care providers and their employees from accepting payments for referring potential residents to unlicensed group homes, classifying violations of this provision as a Class B misdemeanor. The bill is set to take effect on September 1, 2025, and will take precedence over any conflicting legislation from the 89th Legislature.