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.