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Amend HB 1743 as follows:                                                    

(1)  On page 9, between lines 3 and 4, insert the following 	new SECTION, appropriately numbered, and renumber the sections of 
the bill accordingly:
	SECTION ___.  Subchapter C, Chapter 531, Government Code, is 
amended by adding Section 531.1005 to read as follows:
	Sec. 531.1005.  DEFINITIONS.  In this subchapter:                       
		(1)  "Abuse" means:                                                    
			(A)  a provider practice that is inconsistent with 
sound fiscal, business, or medical practices and results in 
unnecessary cost to the Medicaid program or in reimbursement for 
services that are not medically necessary or that fail to meet 
professionally recognized standards for health care; and
			(B)  recipient practices that result in 
unnecessary cost to the Medicaid program.
		(2)  "Fraud" means an intentional deception or 
misrepresentation made by a person with the knowledge that the 
deception could result in some unauthorized benefit to the person 
or another person.  The term includes an act that constitutes fraud 
under applicable federal or state law.
		(3)  "Furnished" means the provision of items or 
services directly by or under the direct supervision of, or ordered 
by, a practitioner or other individual (either as an employee or in 
the person's own capacity), a provider, or another supplier of 
items or services.  The term does not include the provision of items 
or services ordered by one party but billed for and provided by or 
under the supervision of another party.
		(4)  "Hold on payment" means the temporary denial of 
reimbursement under the Medicaid program for items or services 
furnished by a specified provider.
		(5)  "Practitioner" means a physician or other 
individual licensed under state law to practice the person's 
profession.
		(6)  "Program exclusion" means the suspension of a 
provider from being authorized under the Medicaid program to 
request reimbursement for items or services furnished by that 
specific provider.
		(7)  "Provider" means a person that was or is approved 
by the department to:
			(A)  provide medical assistance under a contract 
or provider agreement with the department; or
			(B)  provide third-party billing vendor services 
to other providers under a contract or provider agreement with the 
department.
	(2)  On page 9, line 5, strike "(f) and (g)" and substitute 
"(f), (g), (h), (i), and (j)".
	(3)  On page 9, strike lines 17-27, and on page 10, strike 
lines 1-4, and substitute the following:
	(f)  If the department receives a complaint of Medicaid fraud 
or abuse from any source or identifies any questionable practices, 
the department must conduct an integrity review to determine 
whether there is sufficient basis to warrant a full investigation.  
The department shall begin the integrity review not later than the 
30th day after the department receives a complaint or identifies a 
questionable practice.  The department shall complete the integrity 
review not later than the 60th day after the department begins the 
review.
	(g)  If the results of the integrity review give the 
department reason to believe that an incident of fraud or abuse has 
occurred in the Medicaid program, the department, not later than 
the 30th day after the review is completed, shall:
		(1)  refer the case to the attorney general's Medicaid 
fraud control unit if a provider is suspected of fraud or abuse; or
		(2)  conduct a full investigation if the department has 
reason to believe that a recipient has committed fraud or abuse.
	(h)  In connection with the investigation of fraud or abuse 
in the provision of health and human services, the department shall 
impose a hold on payment of claims for reimbursement submitted by a 
provider or impose a program exclusion with respect to a provider, 
as applicable, to compel the production of records or when 
requested by the attorney general's Medicaid fraud control unit.  
The department shall notify the provider of the hold on payment or 
the program exclusion not later than the fifth working day after the 
date the hold or exclusion is imposed.
	(i)  The department, by documented policy or administrative 
procedure, shall establish protocols under which, after 
consultation with the attorney general's Medicaid fraud control 
unit, the department:
		(1)  may decide to impose a hold on payment or a program 
exclusion; or
		(2)  is required to automatically impose a hold on 
payment or a program exclusion.
	(j)  If the department learns or has reason to suspect that a 
provider's records are being withheld, concealed, destroyed, 
fabricated, or falsified in any way, the department shall presume 
that fraud has occurred and shall immediately refer the case to the 
attorney general's Medicaid fraud control unit.
	(4)  Strike SECTION 10 of the bill (page 10, line 27, through 
page 12, line 12) and substitute the following appropriately 
numbered section:
	SECTION ___.  Section 531.104, Government Code, is amended 
by adding Subsection (c) to read as follows:
	(c)  The memorandum of understanding must provide that the 
department is required to permit:
		(1)  Medicaid agencies to make direct fraud referrals 
to the attorney general's Medicaid fraud control unit; and
		(2)  unimpeded communication between Medicaid agency 
employees and the unit.
	(5)  On page 13, strike lines 25 and 26 and substitute 
"531.104, Government Code, as necessary to comply with Section 
531.104(c), Government Code, as added by this Act."
	(6)  On page 14, between lines 15 and 16, insert the 
following appropriately numbered section:
	SECTION ___.  Section 531.103(e), Government Code, is 
repealed.