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