By: Harris, Chris S.B. No. 209 73R2129 CBH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the crime victims compensation fund; providing 1-3 penalties. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. The Crime Victims Compensation Act (Article 1-6 8309-1, Vernon's Texas Civil Statutes) is amended by adding Section 1-7 5A to read as follows: 1-8 Sec. 5A. UTILIZATION REVIEW. (a) The attorney general may 1-9 adopt rules under which the attorney general may conduct or 1-10 contract for a utilization review of applications for benefits or 1-11 claims for pecuniary loss relating to psychological, psychiatric, 1-12 or other mental health services. 1-13 (b) In this section, "utilization review" means a system for 1-14 prospective, concurrent, or retrospective review of the necessity 1-15 and appropriateness of services being provided or proposed to be 1-16 provided to a victim. 1-17 SECTION 2. Section 9(a), Crime Victims Compensation Act 1-18 (Article 8309-1, Vernon's Texas Civil Statutes), is amended to read 1-19 as follows: 1-20 (a) The attorney general on the attorney general's own 1-21 motion or on request of the claimant may reconsider a decision 1-22 making or denying an award or determining its amount. The attorney 1-23 general shall reconsider at least annually every award being paid 1-24 in installments. An order on reconsideration of an award shall not 2-1 require refund of amounts previously paid unless the award was paid 2-2 by mistake or obtained by fraud. 2-3 SECTION 3. The Crime Victims Compensation Act (Article 2-4 8309-1, Vernon's Texas Civil Statutes) is amended by adding 2-5 Sections 10A, 10B, and 10C to read as follows: 2-6 Sec. 10A. PUBLIC LETTER OF REPRIMAND. (a) The attorney 2-7 general may issue a letter of reprimand against a person if the 2-8 attorney general finds that the person has filed or has caused to 2-9 be filed under this Act an application for benefits or claim for 2-10 pecuniary loss that contains a statement or representation that the 2-11 person knows to be false. 2-12 (b) The attorney general must give the person notice of the 2-13 proposed action before issuing the letter. 2-14 (c) A proposal to issue a letter of reprimand is considered 2-15 a contested case for purposes of the Administrative Procedure and 2-16 Texas Register Act (Article 6252-13a, Vernon's Texas Civil 2-17 Statutes). 2-18 (d) A letter of reprimand issued under this section is 2-19 public information. 2-20 Sec. 10B. CIVIL PENALTY. (a) A person is subject to a 2-21 civil penalty of not less than $100 or more than $5,000 for each 2-22 application for benefits or claim for pecuniary loss that the 2-23 person files or causes to be filed under this Act that contains a 2-24 statement or representation that the person knows to be false. 2-25 (b) The attorney general shall institute and conduct the 2-26 suit authorized by this section in the name of this state. 2-27 (c) A civil penalty recovered under this section shall be 3-1 deposited to the credit of the Compensation to Victims of Crime 3-2 Fund. 3-3 (d) The civil penalty authorized by this section is in 3-4 addition to any other civil, administrative, or criminal penalty 3-5 provided by law. 3-6 Sec. 10C. ADMINISTRATIVE PENALTY. (a) A person who 3-7 presents or causes to be presented to the attorney general an 3-8 application for benefits or claim for pecuniary loss that contains 3-9 a statement or representation the person knows to be false is 3-10 liable to the attorney general for: 3-11 (1) the amount paid because of the false application 3-12 for benefits or claim for pecuniary loss and interest on that 3-13 amount determined at the rate provided by law for legal judgments 3-14 and accruing from the date on which the payment was made; 3-15 (2) payment of an administrative penalty not to exceed 3-16 twice the amount paid because of the false application for benefits 3-17 or claim for pecuniary loss; and 3-18 (3) payment of an administrative penalty of not more 3-19 than $5,000 for each item or service for which payment was claimed. 3-20 (b) In determining the amount of the penalty to be assessed 3-21 under Subsection (a)(3) of this section, the attorney general shall 3-22 consider: 3-23 (1) the seriousness of the violation; 3-24 (2) whether the person had previously submitted a 3-25 false application for benefits or claim for pecuniary loss; and 3-26 (3) the amount necessary to deter the person from 3-27 submitting future false applications for benefits or claims for 4-1 pecuniary loss. 4-2 (c) If after an examination of the facts the attorney 4-3 general concludes that the person did submit a false application 4-4 for benefits or claim for pecuniary loss, the attorney general may 4-5 issue a preliminary report stating the facts on which the attorney 4-6 general based that conclusion, recommending that an administrative 4-7 penalty under this section be imposed and recommending the amount 4-8 of the proposed penalty. 4-9 (d) The attorney general shall give written notice of the 4-10 report to the person charged with submitting the false application 4-11 for benefits or claim for pecuniary loss. The notice must include 4-12 a brief summary of the facts, a statement of the amount of the 4-13 recommended penalty, and a statement of the person's right to an 4-14 informal review of the fact of the submission of the false 4-15 application or claim, the amount of the penalty, or both the false 4-16 application or claim and the amount of the penalty. 4-17 (e) Not later than the 10th day after the date on which the 4-18 person charged with submitting the false application for benefits 4-19 or claim for pecuniary loss receives the notice, the person may 4-20 either give the attorney general written consent to the report, 4-21 including the recommended penalty, or make a written request for an 4-22 informal review by the attorney general. 4-23 (f) If the person charged with submitting the false 4-24 application for benefits or claim for pecuniary loss consents to 4-25 the penalty recommended by the attorney general or fails to timely 4-26 request an informal review, the attorney general shall assess the 4-27 penalty. The attorney general shall give the person written notice 5-1 of the attorney general's action. The person shall pay the penalty 5-2 not later than the 30th day after the date on which the person 5-3 receives the notice. 5-4 (g) If the person charged with submitting a false 5-5 application for benefits or claim for pecuniary loss requests an 5-6 informal review as provided by Subsection (e) of this section, the 5-7 attorney general shall conduct the review. The attorney general 5-8 shall give the person written notice of the results of the review. 5-9 (h) Not later than the 10th day after the date on which the 5-10 person charged with submitting the false application for benefits 5-11 or claim for pecuniary loss receives the notice prescribed by 5-12 Subsection (g) of this section, the person may make to the attorney 5-13 general a written request for a hearing. The hearing must be 5-14 conducted in accordance with the Administrative Procedure and Texas 5-15 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes). 5-16 (i) If, after informal review, a person who has been ordered 5-17 to pay a penalty fails to request a formal hearing in a timely 5-18 manner, the attorney general shall assess the penalty. The 5-19 attorney general shall give the person written notice of that 5-20 action. The person shall pay the penalty not later than the 30th 5-21 day after the date on which the person receives the notice. 5-22 (j) Except as provided by Subsection (k) of this section, 5-23 not later than the 30th day after the date on which the attorney 5-24 general issues a final decision after a hearing under Subsection 5-25 (h) of this section, a person who has been ordered to pay a penalty 5-26 under this section shall pay the penalty in full. 5-27 (k) If the person seeks judicial review of either the fact 6-1 of the submission of a false application for benefits or claim for 6-2 pecuniary loss or the amount of the penalty or of both the fact of 6-3 the submission and the amount of the penalty, the person shall 6-4 forward the amount of the penalty to the attorney general for 6-5 placement in an escrow account or, instead of payment into an 6-6 escrow account, post with the attorney general a supersedeas bond 6-7 in a form approved by the attorney general for the amount of the 6-8 penalty. The bond must be effective until all judicial review of 6-9 the order or decision is final. 6-10 (l) Failure to forward the money to or to post the bond with 6-11 the attorney general within the period provided by Subsection (j) 6-12 or (k) of this section results in a waiver of all legal rights to 6-13 judicial review. If the person charged fails to forward the money 6-14 or post the bond within the period provided by Subsection (f), (i), 6-15 (j), or (k) of this section, the attorney general may enforce the 6-16 penalty and interest in the manner provided by law for legal 6-17 judgments. An action to enforce a penalty order under this section 6-18 must be initiated in a court of competent jurisdiction in Travis 6-19 County or in the county from which the false application for 6-20 benefits or claim for pecuniary loss was submitted. 6-21 (m) Judicial review of an attorney general order or review 6-22 under this section assessing a penalty is under the substantial 6-23 evidence rule. A suit may be initiated by filing a petition with a 6-24 district court in Travis County, as provided by Section 19, 6-25 Administrative Procedure and Texas Register Act (Article 6252-13a, 6-26 Vernon's Texas Civil Statutes). 6-27 (n) If a penalty is reduced or not assessed, the attorney 7-1 general shall remit to the person the appropriate amount plus 7-2 accrued interest if the penalty has been paid or shall execute a 7-3 release of the bond if a supersedeas bond has been posted. The 7-4 accrued interest on amounts remitted by the attorney general under 7-5 this subsection shall be paid at a rate equal to the rate provided 7-6 by law for legal judgments and shall be paid for the period 7-7 beginning on the date the penalty is paid to the attorney general 7-8 under this section and ending on the date the penalty is remitted. 7-9 (o) All funds collected under this section shall be 7-10 deposited to the credit of the Compensation to Victims of Crime 7-11 Fund. 7-12 SECTION 4. Sections 10A, 10B, and 10C, Crime Victims 7-13 Compensation Act (Article 8309-1, Vernon's Texas Civil Statutes), 7-14 as added by Section 3 of this Act, apply only to an application for 7-15 benefits or claim for pecuniary loss that is filed on or after the 7-16 effective date of this Act. An application for benefits or claim 7-17 for pecuniary loss that is filed before the effective date of this 7-18 Act is governed by the law in effect when the application for 7-19 benefits or claim for pecuniary loss was filed, and that law is 7-20 continued in effect for that purpose. 7-21 SECTION 5. The importance of this legislation and the 7-22 crowded condition of the calendars in both houses create an 7-23 emergency and an imperative public necessity that the 7-24 constitutional rule requiring bills to be read on three several 7-25 days in each house be suspended, and this rule is hereby suspended, 7-26 and that this Act take effect and be in force from and after its 7-27 passage, and it is so enacted.