LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 24, 1995



 TO:     Honorable Hugo Berlanga, Chair         IN RE:  House Bill No. 2523
         Committee on Public Health                     By: McDonald
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2523 (Relating to the prevention of Medicaid fraud; imposing
civil penalties.) this office has determined the following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill would amend Title 2, Human Resources Code by adding
Chapter 36, which defines actions that are considered unlawful
acts for purposes of Medicaid fraud.  The bill allows for civil
remedies that include restitution and interest, as well as
penalties of $10,000 to $50,000 plus three times the value of the
amount of restitution. 

The bill would require the Health and Human Services Commission
and health and human service agencies to give the OAG access to
Medicaid records.  The bill would authorize the HHS Commissioners
or other HHS commissioners to revoke the license of any provider
found guilty of Medicaid fraud.

The bill allows the Office of the Attorney General (OAG) to
recover costs it incurs in obtaining injunctive relief, civil
remedies, or in conducting investigations.  Money recovered by
the Attorney General  would be deposited into a special account
in the General Revenue Fund that would be dedicated only for
appropriation to the OAG for the enforcement of these provisions. 
Estimates of this dedicated General Revenue cannot be determined.    




 The fiscal implication to  the State cannot be determined.

No fiscal implication to units of local government is
anticipated.


Source:   Health and Human Services Commission, Department of
Human Services,
                         Office of the Attorney General
          LBB Staff: JK, AZ, DF