LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 24, 1997
         
         
      TO: Honorable Hugo Berlanga, Chair            IN RE:  House Bill No. 820, Committee Report 1st House, Substituted
          Committee on Public Health                              By: Cuellar
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB820 ( Relating 
to civil actions to recover fraudulent Medicaid claims.) this 
office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB820-Committee Report 1st House, Substituted
         
No significant fiscal implication to the State is anticipated.
         
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 implement Texas Performance Review 
Recommendation FR 8 in Disturbing the Peace: The Challenge of 
Change in Texas Government.  The bill would amend Chapter 36 
of the Texas Human Resources Code, the Medicaid Fraud Prevention 
Act, which prohibits fraudulent conduct with regard to the Texas 
Medicaid program.  A private party would be allowed to bring 
suit on behalf of the State of Texas for violations of Chapter 
36.  The person filing the private lawsuit would be required 
to serve a copy of the petition on the State of Texas, and within 
the next 60 days the Attorney General may investigate the allegations 
and intervene and proceed with the action or decline to take 
over the action.  The bill would also allow the Attorney General 
to bring a federal action as a relator under 31 U.S.C. Section 
3730. Contingent upon the passage of S.B. No. 741 or similar 
legislation, the Health and Human Services Commission (HHSC) 
would be required to enter into a memorandum of understanding 
with the Attorney General to provide investigative support in 
cases under Chapter 36. 

Because the Attorney General would 
have discretion to bring these lawsuits and could seek investigative 
assistance from HHSC, the Attorney General estimates that any 
increased workload could be absorbed with existing resources. 
 The Comptroller estimates that there will be some savings to 
the State as a result of implementing the provisions of the 
bill but cannot estimate the amount of any savings.
         
 
          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   529   Health and Human Services Commission
                                         302   Office of the Attorney General
                                         304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,BB