76R11770 KKA-D
By Dutton H.B. No. 990
Substitute the following for H.B. No. 990:
By Gray C.S.H.B. No. 990
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to administrative procedures and criminal convictions for
1-3 welfare fraud.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter C, Chapter 531, Government Code, is
1-6 amended by adding Section 531.109 to read as follows:
1-7 Sec. 531.109. ADMINISTRATIVE FINDING OF FRAUD; IMMUNITY FROM
1-8 CRIMINAL PROSECUTION. (a) The commission by rule shall adopt
1-9 administrative procedures to be used by the commission or an
1-10 appropriate health and human services agency in determining whether
1-11 an individual has engaged in fraudulent conduct to obtain or
1-12 attempt to obtain:
1-13 (1) financial assistance and services under Chapter
1-14 31, Human Resources Code;
1-15 (2) food stamps under the food stamp program
1-16 administered under Chapter 33, Human Resources Code; or
1-17 (3) medical assistance under the state Medicaid
1-18 program.
1-19 (b) The commission or a health and human services agency may
1-20 not seek criminal prosecution of an individual alleged to have
1-21 engaged in fraudulent conduct in obtaining or attempting to obtain
1-22 assistance or benefits described by Subsection (a) and may use only
1-23 the administrative procedures established under this section to
1-24 sanction that individual if:
2-1 (1) the individual has not previously engaged in
2-2 fraudulent conduct in obtaining or attempting to obtain assistance
2-3 or benefits described by Subsection (a); and
2-4 (2) the monetary value of the assistance or benefits
2-5 obtained or sought by the individual through the allegedly
2-6 fraudulent conduct is less than $5,000.
2-7 (c) The commission may provide for the imposition of an
2-8 administrative penalty against an individual determined to have
2-9 engaged in fraudulent conduct through the administrative procedures
2-10 established under Subsection (a).
2-11 (d) The administrative procedures must require the
2-12 commission or appropriate agency to provide written notice to an
2-13 individual of an allegation that the individual has engaged in
2-14 fraudulent conduct in obtaining or attempting to obtain assistance
2-15 or benefits described by Subsection (a). The notice must include:
2-16 (1) a specific description of the allegedly fraudulent
2-17 conduct, including the monetary value of any benefits or assistance
2-18 the individual received as a result of the alleged conduct;
2-19 (2) a copy of the procedures adopted under this
2-20 section;
2-21 (3) a statement that an administrative penalty may be
2-22 imposed against the individual, if a penalty is authorized by the
2-23 commission under Subsection (c);
2-24 (4) a statement that a finding of fraudulent conduct
2-25 will subject the individual to criminal prosecution for subsequent
2-26 fraudulent conduct to which Subsection (a) applies; and
2-27 (5) a statement that the individual is entitled to
3-1 submit a written response or to request a hearing before the
3-2 commission or the appropriate agency.
3-3 (e) After considering any written response and after
3-4 conducting a hearing, if requested, the commission or appropriate
3-5 agency shall determine whether the individual engaged in fraudulent
3-6 conduct in obtaining or attempting to obtain assistance or benefits
3-7 described by Subsection (a). If the commission or agency
3-8 determines that the individual engaged in fraudulent conduct, the
3-9 commission or agency:
3-10 (1) shall:
3-11 (A) issue a finding of fraudulent conduct;
3-12 (B) maintain a permanent record of the finding;
3-13 and
3-14 (C) seek recovery from the individual of the
3-15 amount of benefits or assistance, if any, obtained through the
3-16 fraudulent conduct; and
3-17 (2) may impose an administrative penalty against the
3-18 individual, if a penalty is authorized by the commission under
3-19 Subsection (c).
3-20 (f) A hearing under this section shall be conducted in the
3-21 manner provided for a contested case hearing under Chapter 2001.
3-22 (g) The administrative procedures required by this section
3-23 may be combined with any other appropriate administrative procedure
3-24 conducted by the commission or an appropriate health and human
3-25 services agency.
3-26 (h) Except as provided by Subsection (i), an individual who
3-27 engages in fraudulent conduct in obtaining or attempting to obtain
4-1 assistance or benefits listed under Subsection (a) with a monetary
4-2 value of less than $5,000 may be convicted of perjury under Section
4-3 37.02, Penal Code, tampering with a governmental record under
4-4 Section 37.10, Penal Code, an offense against property under Title
4-5 7, Penal Code, or an offense under Section 33.011, Human Resources
4-6 Code, in connection with the fraudulent conduct only if the
4-7 individual has been found under this section by the commission or
4-8 an appropriate agency to have previously engaged in fraudulent
4-9 conduct to which Subsection (a) applies.
4-10 (i) The immunity from conviction granted by Subsection (h)
4-11 does not apply to an individual who fails to pay or defaults in a
4-12 payment plan relating to an amount sought by the commission or an
4-13 appropriate agency under Subsection (e)(1)(C) or imposed under
4-14 Subsection (e)(2).
4-15 SECTION 2. Section 531.109, Government Code, as added by
4-16 this Act, applies only to conduct committed on or after the
4-17 effective date of this Act. Conduct committed before the effective
4-18 date of this Act is covered by the law in effect when the conduct
4-19 was committed, and the former law is continued in effect for that
4-20 purpose.
4-21 SECTION 3. This Act takes effect September 1, 1999.
4-22 SECTION 4. The importance of this legislation and the
4-23 crowded condition of the calendars in both houses create an
4-24 emergency and an imperative public necessity that the
4-25 constitutional rule requiring bills to be read on three several
4-26 days in each house be suspended, and this rule is hereby suspended.