By Dutton H.B. No. 990 76R1622 KKA-D 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 may provide for the imposition of an 1-20 administrative penalty against an individual determined to have 1-21 engaged in fraudulent conduct through the administrative procedures 1-22 established under Subsection (a). 1-23 (c) The administrative procedures must require the 1-24 commission or appropriate agency to provide written notice to an 2-1 individual of an allegation that the individual has engaged in 2-2 fraudulent conduct to obtain or attempt to obtain assistance or 2-3 benefits described by Subsection (a). The notice must include: 2-4 (1) a specific description of the allegedly fraudulent 2-5 conduct, including the monetary value of any benefits or assistance 2-6 the individual received as a result of the alleged conduct; 2-7 (2) a copy of the procedures adopted under this 2-8 section; 2-9 (3) a statement that an administrative penalty may be 2-10 imposed against the individual, if a penalty is authorized by the 2-11 commission under Subsection (b); 2-12 (4) a statement that a finding of fraudulent conduct 2-13 will subject the individual to criminal prosecution for subsequent 2-14 fraudulent conduct to which Subsection (a) applies; and 2-15 (5) a statement that the individual is entitled to 2-16 submit a written response or to request a hearing before the 2-17 commission or the appropriate agency. 2-18 (d) After considering any written response and after 2-19 conducting a hearing, if requested, the commission or appropriate 2-20 agency shall determine whether the individual engaged in fraudulent 2-21 conduct to obtain or attempt to obtain assistance or benefits 2-22 described by Subsection (a). If the commission or agency 2-23 determines that the individual engaged in fraudulent conduct, the 2-24 commission or agency: 2-25 (1) shall: 2-26 (A) issue a finding of fraudulent conduct; 2-27 (B) maintain a permanent record of the finding; 3-1 and 3-2 (C) seek recovery from the individual of the 3-3 amount of benefits or assistance, if any, obtained through the 3-4 fraudulent conduct; and 3-5 (2) may impose an administrative penalty against the 3-6 individual, if a penalty is authorized by the commission under 3-7 Subsection (b). 3-8 (e) A hearing under this section shall be conducted in the 3-9 manner provided for a contested case hearing under Chapter 2001. 3-10 (f) The administrative procedures required by this section 3-11 may be combined with any other appropriate administrative procedure 3-12 conducted by the commission or an appropriate health and human 3-13 services agency. 3-14 (g) Except as provided by Subsection (h), an individual who 3-15 engages in fraudulent conduct to obtain or attempt to obtain 3-16 assistance or benefits listed under Subsection (a) may be convicted 3-17 of perjury under Section 37.02, Penal Code, tampering with a 3-18 governmental record under Section 37.10, Penal Code, an offense 3-19 against property under Title 7, Penal Code, or an offense under 3-20 Section 33.011, Human Resources Code, in connection with the 3-21 fraudulent conduct only if the individual has been found under this 3-22 section by the commission or an appropriate agency to have 3-23 previously engaged in fraudulent conduct to which Subsection (a) 3-24 applies. 3-25 (h) The immunity from conviction granted by Subsection (g) 3-26 does not apply to an individual who fails to pay or defaults in a 3-27 payment plan relating to an amount sought by the commission or an 4-1 appropriate agency under Subsection (d)(1)(C) or imposed under 4-2 Subsection (d)(2). 4-3 SECTION 2. Section 531.109, Government Code, as added by 4-4 this Act, applies only to conduct committed on or after the 4-5 effective date of this Act. Conduct committed before the effective 4-6 date of this Act is covered by the law in effect when the conduct 4-7 was committed, and the former law is continued in effect for that 4-8 purpose. 4-9 SECTION 3. This Act takes effect September 1, 1999. 4-10 SECTION 4. The importance of this legislation and the 4-11 crowded condition of the calendars in both houses create an 4-12 emergency and an imperative public necessity that the 4-13 constitutional rule requiring bills to be read on three several 4-14 days in each house be suspended, and this rule is hereby suspended.