By:  Capelo                                                       H.B. No. 3012



A BILL TO BE ENTITLED

AN ACT

relating to the prevention and detection of fraud.                            
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 61, Health and Safety Code, is amended by 
amending Section 61.066 to read as follows:
	(a)  A hospital district may adopt reasonable procedures for 
minimizing the opportunity for fraud, for establishing and 
maintaining methods for detecting and identifying situations in 
which a question of fraud may exist, and for administrative 
hearings to be conducted on disqualifying persons or discontinuing 
services to persons in cases where fraud appears to exist.
	(b)  Procedures established by a hospital district for 
administrative hearings conducted under this section shall provide 
for appropriate due process, including procedures for appeals.
	(c)  Causes for disqualification include the false 
representation of a present or past fact relating to immigration 
status, residency, income, or resources made by a person seeking 
health care assistance.
	(d)  Causes for disqualification of or discontinuance of 
services to persons receiving health care assistance include:
		(1)  presentation of a fraudulent or altered drug 
prescription; and  
		(2)  abuse of prescription drug assistance, including 
resale of drugs.
	(e)  A hospital district may seek reimbursement for the costs 
of services, provided or paid by the district, from persons who are 
disqualified, or whose services are discontinued under this 
section.
	SECTION 2.  This Act takes effect September 1, 2003.