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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of the office of inspector general; |
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providing penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 4, Government Code, is amended |
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by adding Chapter 422 to read as follows: |
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CHAPTER 422. OFFICE OF INSPECTOR GENERAL |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 422.001. SHORT TITLE. This chapter may be cited as the |
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Texas Inspector General Act. |
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Sec. 422.002. DEFINITIONS. In this chapter: |
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(1) "Commission" means the Health and Human Services |
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Commission. |
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(2) "Fraud" means an intentional deception or |
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misrepresentation made by a person with the knowledge that the |
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deception could result in some unauthorized benefit to that person |
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or some other person. The term includes any act that constitutes |
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fraud under applicable federal or state law. |
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(3) "Furnished," in reference to items or services: |
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(A) means items or services provided directly by, |
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provided under the direct supervision of, or ordered by: |
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(i) a physician or other individual |
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licensed under state law to practice the individual's profession, |
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either as an employee or in the individual's own capacity; |
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(ii) a provider; or |
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(iii) another supplier of services; and |
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(B) does not include services ordered by one |
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party but billed for and provided by or under the supervision of |
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another. |
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(4) "Hold on payment" means the temporary denial of |
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reimbursement under a federal program for items or services |
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furnished by a specified provider. |
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(5) "Inspector general" means the inspector general |
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appointed under Section 422.055. |
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(6) "Office" means the office of inspector general |
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established under this chapter. |
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(7) "Program exclusion" means the suspension of a |
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provider's authorization under a federal program to request |
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reimbursement for items or services furnished by that provider. |
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(8) "Provider" means a person, firm, partnership, |
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corporation, agency, association, institution, or other entity |
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that was or is approved by the commission to provide: |
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(A) medical assistance under contract or |
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provider agreement with the commission; or |
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(B) third-party billing vendor services under a |
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contract or provider agreement with the commission. |
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(9) "Review" includes an audit, inspection, |
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investigation, evaluation, or similar activity. |
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Sec. 422.003. APPLICATION OF SUNSET ACT. The office of |
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inspector general is subject to Chapter 325 (Texas Sunset Act). |
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Unless continued in existence as provided by that chapter, the |
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office is abolished and this chapter expires September 1, 2019. |
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Sec. 422.004. REFERENCE IN OTHER STATUTES. Notwithstanding |
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any other provision of law, a reference in law or rule to the |
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commission's office of investigations and enforcement or the |
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commission's office of inspector general means the office of |
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inspector general established under this chapter. |
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Sec. 422.005. INTERFERENCE PROHIBITED. The governor, the |
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legislature or a committee of the legislature, or a state agency may |
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not prevent the inspector general or a deputy inspector general |
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from initiating, performing, or completing an investigation, |
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audit, or review or any other compliance or enforcement activity |
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pursued by the office under this chapter or other law. |
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[Sections 422.006-422.050 reserved for expansion] |
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SUBCHAPTER B. ADMINISTRATION AND COMPLAINTS |
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Sec. 422.051. OFFICE OF INSPECTOR GENERAL. (a) The office |
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of inspector general is an agency of this state. |
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(b) The office is governed by the inspector general. |
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(c) The office shall have its principal office and |
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headquarters in Austin. |
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Sec. 422.052. INDEPENDENCE OF OFFICE. (a) Except as |
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otherwise provided by this chapter, the office and inspector |
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general operate independently of the commission. |
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(b) The inspector general and the office staff are not |
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employees of the commission. |
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Sec. 422.053. SERVICE LEVEL AGREEMENT; FUNDS. (a) The |
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office shall enter into a service level agreement with the |
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commission and each state agency that has a designated deputy |
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inspector general. The agreement must establish the performance |
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standards and deliverables with regard to administrative support by |
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the commission or agency. |
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(b) The service level agreement must be reviewed at least |
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annually to ensure that services and deliverables are provided in |
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accordance with the agreement. |
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(c) The commission shall request, apply for, and receive for |
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the office any appropriations or other money from this state or the |
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federal government. |
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(d) The commission shall provide to the office for the state |
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fiscal biennium beginning September 1, 2007, the same level of |
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administrative support the commission provided to the office |
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established under former Section 531.102 for the state fiscal |
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biennium beginning September 1, 2005. This subsection expires |
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January 1, 2010. |
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Sec. 422.054. BUDGET. (a) The inspector general shall |
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submit a budget in accordance with the reporting requirements of |
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the General Appropriations Act. |
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(b) The inspector general shall submit to the commission a |
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legislative appropriations request and an operating budget in |
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accordance with the service level agreement entered into under |
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Section 422.053 and applicable law. |
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(c) The commission shall submit the office's appropriations |
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request and, if required by or under law, operating budget to the |
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legislature. The request or budget is not subject to review, |
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alteration, or modification by the commission or executive |
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commissioner before submission to the legislature. |
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Sec. 422.055. INSPECTOR GENERAL: APPOINTMENT BY GOVERNOR; |
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QUALIFICATIONS. (a) The inspector general is appointed by the |
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governor with the advice and consent of the senate. |
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(b) The appointment shall be made without regard to race, |
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color, disability, sex, religion, age, or national origin. |
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(c) In making the appointment, the governor shall consider |
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the person's knowledge of laws, experience in the enforcement of |
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law, honesty, integrity, education, training, and executive |
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ability. |
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Sec. 422.056. ELIGIBILITY. (a) A person is not eligible |
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for appointment as inspector general or deputy inspector general if |
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the person or the person's spouse: |
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(1) is an officer or paid consultant of a business |
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entity or other organization that holds a license, certificate of |
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authority, or other authorization from a state agency or that |
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receives funds from a state agency; |
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(2) owns or controls, directly or indirectly, more |
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than a 10 percent interest in a business entity or other |
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organization receiving funds from a state agency; or |
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(3) uses or receives a substantial amount of tangible |
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goods or funds from a state agency, other than compensation or |
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reimbursement authorized by law. |
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(b) A person is not eligible to serve as inspector general |
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or deputy inspector general if the person or the person's spouse is |
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required to register as a lobbyist under Chapter 305 because of the |
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person's or spouse's activities for compensation related to the |
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operation of a state agency. |
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Sec. 422.057. TERM; VACANCY. (a) The inspector general |
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serves a two-year term expiring February 1 of each odd-numbered |
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year. |
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(b) The governor by appointment shall fill a vacancy in the |
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office of inspector general for the unexpired term. |
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Sec. 422.058. CONFLICT OF INTEREST. (a) The inspector |
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general may not serve as an ex officio member on the governing body |
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of a governmental entity. |
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(b) The inspector general may not have a financial interest |
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in the transactions of the office, a health and human services |
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agency, or a health or human services provider. |
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Sec. 422.059. REMOVAL. The governor, with the advice and |
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consent of the senate, may remove the inspector general from office |
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as provided by Section 9, Article XV, Texas Constitution. |
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Sec. 422.060. DEPUTY INSPECTORS GENERAL. (a) The |
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inspector general, in consultation with the office of the governor |
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and as necessary to implement this chapter, may designate persons |
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to serve as deputy inspectors general for state agencies that |
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implement or administer federal programs. |
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(b) A deputy inspector general shall report to and perform |
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duties as directed by the inspector general. |
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(c) Each state agency that has a designated deputy inspector |
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general shall provide to the deputy inspector general facilities |
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and support services, including suitable office space, furniture, |
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computer and communications equipment, administrative support, and |
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salary and benefits as provided by the General Appropriations Act. |
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Sec. 422.061. PEACE OFFICERS. (a) The office may employ |
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and commission peace officers, in a number not to exceed 15 percent |
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of the total number of employees of the office, to assist the |
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inspector general in carrying out the duties of the office relating |
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to detection, investigation, and prevention of fraud, waste, and |
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abuse in federal programs or programs receiving federal funds that |
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are implemented or administered by state agencies. |
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(b) A commissioned peace officer or otherwise designated |
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law enforcement officer employed by the office is not entitled to |
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supplemental benefits from the law enforcement and custodial |
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officer supplemental retirement fund unless the officer transfers |
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from a position, without a break in service, that qualifies for |
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supplemental retirement benefits from the fund. |
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Sec. 422.062. EXPERTS. Subject to the availability of |
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funds, the inspector general and deputy inspectors general may |
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contract with certified public accountants, qualified management |
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consultants, or other professional experts as necessary to |
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independently perform the functions of the office. |
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Sec. 422.063. EMPLOYEES; TRAINING. (a) The inspector |
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general may employ personnel as necessary to implement the duties |
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of the office. |
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(b) The inspector general shall train office personnel to |
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pursue, efficiently and as necessary, priority Medicaid and other |
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fraud, waste, and abuse cases in health and human services programs |
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or other state or federally funded programs. |
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(c) The inspector general may require employees of state |
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agencies, including health and human services agencies, to provide |
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assistance to the office in connection with the office's duties |
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relating to the investigation of fraud, waste, and abuse in the |
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provision of services for federal or federally funded programs. |
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Sec. 422.064. MERIT SYSTEM. (a) The office may establish a |
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merit system for its employees. |
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(b) The merit system may be maintained in conjunction with |
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other state agencies that are required by federal law to operate |
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under a merit system. |
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Sec. 422.065. PUBLIC INTEREST INFORMATION AND COMPLAINTS. |
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(a) The office shall develop and implement policies that provide |
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the public a reasonable opportunity to appear before the office and |
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to speak on any issue under the office's jurisdiction. |
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(b) The office shall prepare information of public interest |
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describing the functions of the office and the office's procedures |
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by which complaints are filed with and resolved by the office. The |
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office shall make the information available to the public and |
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appropriate state agencies. |
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(c) The office shall keep an information file about each |
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complaint filed with the office relating to a state agency or entity |
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receiving federal money and falling under the jurisdiction of the |
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office. |
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[Sections 422.066-422.100 reserved for expansion] |
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SUBCHAPTER C. GENERAL POWERS AND DUTIES |
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Sec. 422.101. GENERAL RESPONSIBILITIES. (a) The office is |
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responsible for the investigation of fraud, waste, and abuse, as |
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defined in applicable state and federal law, in this state's |
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implementation or administration by a state agency of a state or |
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federally funded program, including a health and human services |
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program. |
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(b) The office shall set clear objectives, priorities, and |
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performance standards for the office that emphasize: |
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(1) coordinating investigative efforts to |
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aggressively recover money; |
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(2) allocating resources to cases that have the |
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strongest supportive evidence and the greatest potential for |
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recovery of money; and |
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(3) maximizing opportunities for referral of cases to |
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the office of the attorney general in accordance with this chapter. |
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Sec. 422.102. GENERAL POWERS. The office has all the powers |
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necessary or appropriate to carry out its responsibilities and |
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functions under this chapter and other law. In addition to performing |
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functions and duties otherwise provided by law, the office may: |
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(1) provide for coordination between the office and |
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special investigative units formed by managed care organizations |
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under Section 531.113 or entities with which managed care |
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organizations contract under that section; |
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(2) audit the use and effectiveness of state or |
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federal funds, including contract and grant funds, administered by |
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a person or state agency; |
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(3) conduct reviews, investigations, and inspections |
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relating to the funds described by Subdivision (2); |
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(4) recommend policies promoting economical and |
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efficient administration of the funds described by Subdivision (2) |
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and the prevention and detection of fraud, waste, and abuse in |
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administration of those funds; and |
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(5) conduct internal affairs investigations in |
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instances of fraud, waste, and abuse and in instances of misconduct |
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by employees, contractors, subcontractors, and vendors. |
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Sec. 422.103. HEALTH AND HUMAN SERVICES RESPONSIBILITIES. |
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The office is responsible for: |
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(1) the investigation of fraud, waste, and abuse in |
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the provision or funding of health or human services by this state; |
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(2) the enforcement of state law relating to the |
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provision of those services to protect the public; and |
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(3) the prevention and detection of crime relating to |
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the provision of those services. |
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Sec. 422.104. RULEMAKING BY INSPECTOR GENERAL. (a) |
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Notwithstanding Section 531.0055(e) and any other law, the |
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inspector general shall adopt the rules necessary to administer the |
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functions of the office, including rules to address the imposition |
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of sanctions and penalties for violations and due process |
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requirements for imposing sanctions and penalties. |
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(b) A rule, standard, or form adopted by the executive |
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commissioner, commission, or a state agency, including a health and |
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human services agency, that is necessary to accomplish the duties |
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of the office is considered to also be a rule, standard, or form of |
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the office and remains in effect as a rule, standard, or form of the |
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office until changed by the inspector general. |
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(c) The rules must include standards for the office that |
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emphasize: |
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(1) coordinating investigative efforts to |
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aggressively recover money; |
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(2) allocating resources to cases that have the |
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strongest supportive evidence and the greatest potential for |
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recovery of money; and |
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(3) maximizing opportunities for referral of cases to |
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the office of the attorney general. |
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Sec. 422.105. AUTHORITY OF STATE AUDITOR TO CONDUCT TIMELY |
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AUDITS NOT IMPAIRED. This chapter or other law related to the |
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operation of the inspector general does not take precedence over |
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the authority of the state auditor to conduct an audit under Chapter |
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321 or other law. |
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Sec. 422.106. EXECUTIVE ORDERS. (a) The governor may issue |
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executive orders directing state agencies to implement |
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recommendations issued by the office for corrective or remedial |
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actions promoting the economical and efficient administration of |
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money and the detection of fraud. |
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(b) The governor may submit to the lieutenant governor, the |
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speaker of the house of representatives, the state auditor, and the |
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comptroller a report of the executive orders issued under this |
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chapter and the compliance by state agencies with those orders. |
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Sec. 422.107. DEFENSE BY ATTORNEY GENERAL. The attorney |
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general shall defend any action brought against the inspector |
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general, a deputy inspector general, or an employee or officer of |
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the office as a result of that person's official act or omission, |
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whether or not the person has terminated service with the office at |
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the time the action is instituted. |
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Sec. 422.108. INTERAGENCY COORDINATION. (a) The office |
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and the attorney general shall enter into a memorandum of |
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understanding to develop and implement joint written procedures for |
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processing cases of suspected fraud, waste, or abuse, as those |
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terms are defined by state or federal law, or other violations of |
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state or federal law under any state or federally funded program |
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implemented or administered by a state agency. |
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(b) The memorandum of understanding shall require: |
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(1) the office and the attorney general to set |
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priorities and guidelines for referring cases to appropriate state |
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agencies for investigation, prosecution, or other disposition to |
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enhance deterrence of fraud, waste, abuse, or other violations of |
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state or federal law, including a violation of Chapter 102, |
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Occupations Code, in the programs and to maximize the imposition of |
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penalties, the recovery of money, and the successful prosecution of |
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cases; |
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(2) the office to refer each case of suspected fraud, |
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waste, or abuse to the attorney general not later than the 20th |
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business day after the date the office determines that the |
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existence of fraud, waste, or abuse is reasonably indicated; |
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(3) the attorney general to take appropriate action in |
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response to each case referred to the attorney general, which |
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action may include direct initiation of prosecution, with the |
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consent of the appropriate local district or county attorney, |
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direct initiation of civil litigation, referral to an appropriate |
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United States attorney, a district attorney, or a county attorney, |
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or referral to a collection agency for initiation of civil |
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litigation or other appropriate action; |
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(4) the office to keep detailed records for cases |
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processed by the office or the attorney general, including |
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information on the total number of cases processed and, for each |
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case: |
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(A) the agency and division to which the case is |
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referred for investigation; |
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(B) the date on which the case is referred; and |
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(C) the nature of the suspected fraud, waste, or |
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abuse; |
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(5) the office to notify each appropriate division of |
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the office of the attorney general of each case referred by the |
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office of inspector general; |
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(6) the attorney general to ensure that information |
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relating to each case investigated by the attorney general is |
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available to each division of the attorney general's office with |
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responsibility for investigating suspected fraud, waste, or abuse; |
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(7) the attorney general to notify the office of each |
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case the attorney general declines to prosecute or prosecutes |
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unsuccessfully; |
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(8) representatives of the office and the attorney |
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general to meet not less than quarterly to share case information |
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and determine the appropriate agency and division to investigate |
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each case; and |
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(9) the office and the attorney general to submit |
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information requested by the comptroller about each resolved case |
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for the comptroller's use in improving fraud detection. |
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(c) An exchange of information under this section between |
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the attorney general and the office or any other state agency does |
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not affect whether the information is subject to disclosure under |
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Chapter 552. |
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(d) With respect to Medicaid fraud, in addition to the |
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provisions required by Subsection (b), the memorandum of |
|
understanding required by this section must also ensure that no |
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barriers to direct fraud referrals to the attorney general's |
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Medicaid fraud control unit or unreasonable impediments to |
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communication between Medicaid agency employees and the Medicaid |
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fraud control unit are imposed and must include procedures to |
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facilitate the referral of cases directly to the attorney general. |
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Sec. 422.109. SEMIANNUAL REPORT. The office and the |
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attorney general shall jointly prepare and submit a semiannual |
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report to the governor, the lieutenant governor, the speaker of the |
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house of representatives, the state auditor, the comptroller, and |
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each member of the legislature concerning the activities of the |
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office and the attorney general in detecting and preventing fraud, |
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waste, and abuse under any state or federally funded program |
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implemented or administered by a state agency that is reviewed by |
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the office under this chapter. The report may be consolidated with |
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any other report relating to the same subject matter the office or |
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the attorney general is required to submit under other law. |
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Sec. 422.110. INFORMATION AND TECHNOLOGY. The office may |
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obtain information or technology necessary to enable the office to |
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meet its responsibilities under this chapter or other law. |
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Sec. 422.111. AWARD FOR REPORTING FRAUD, WASTE, ABUSE, OR |
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OVERCHARGES. (a) If the office determines that the report results |
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in the recovery of an administrative or civil penalty imposed by |
|
law, the office may grant an award to an individual who reports: |
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(1) activity that constitutes fraud, waste, or abuse |
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of money related to any federal program implemented or administered |
|
by a state agency; or |
|
(2) overcharges in a program described by Subdivision |
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(1). |
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(b) The office may not grant an award to an individual in |
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connection with a report if the office or attorney general had |
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independent knowledge of the activity reported by the individual. |
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(c) The office shall determine the amount of an award |
|
granted under this section. The amount may not exceed five percent |
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of the amount of the administrative or civil penalty imposed by law |
|
that resulted from the individual's report. |
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(d) In determining the amount of an award granted under this |
|
section, the office: |
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(1) shall consider the importance of the report in |
|
ensuring the fiscal integrity of the program; and |
|
(2) may consider whether the individual participated |
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in the reported fraud, waste, abuse, or overcharge. |
|
(e) A person who brings an action under Subchapter C, |
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Chapter 36, Human Resources Code, is not eligible for an award under |
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this section. |
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[Sections 422.112-422.150 reserved for expansion] |
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SUBCHAPTER D. INVESTIGATIONS AND ENFORCEMENT ACTIONS |
|
Sec. 422.151. AGENCY COOPERATION. Each state agency shall |
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provide assistance as necessary for the office to perform the |
|
office's duties relating to the investigation of fraud, waste, and |
|
abuse in the implementation of any state or federally funded |
|
program. The office is entitled to access any information |
|
maintained by a state agency or by any provider, including internal |
|
records, relevant to the functions of the office. |
|
Sec. 422.152. CLAIMS CRITERIA FOR INVESTIGATIONS. The |
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office by rule shall set specific claims criteria that, when met, |
|
require the office to begin an investigation. |
|
Sec. 422.153. REVIEW AND AUDIT AUTHORITY. (a) The |
|
inspector general may evaluate any activity or operation of a state |
|
agency, including a health and human services agency, a health or |
|
human services provider, or a person in this state that is related |
|
to the investigation, detection, or prevention of fraud, waste, and |
|
abuse or employee misconduct in a state or federally funded |
|
program. A review may include an investigation or other inquiry |
|
into a specific act or allegation of, or a specific financial |
|
transaction or practice that may involve, impropriety, |
|
malfeasance, or nonfeasance in the obligation, spending, receipt, |
|
or other use of state or federal money. |
|
(b) The executive commissioner, the commission, or an |
|
agency of this state, including a health and human services agency, |
|
may not impair or prohibit the inspector general from initiating or |
|
completing a review. |
|
(c) The inspector general may audit and review the use and |
|
effectiveness of state or federal funds, including contract and |
|
grant funds, administered by a person or state agency receiving the |
|
funds in connection with a state or federally funded program. |
|
Sec. 422.154. INITIATION OF REVIEW. The inspector general |
|
may initiate a review: |
|
(1) on the inspector general's own initiative; |
|
(2) at the request of the commission, the executive |
|
commissioner, or the presiding officer of a state agency; or |
|
(3) based on a complaint from any source concerning a |
|
matter described by Section 422.153. |
|
Sec. 422.155. INTEGRITY REVIEW. (a) The office shall |
|
conduct an integrity review to determine whether there is |
|
sufficient basis to warrant a full investigation on receipt of any |
|
complaint of fraud, waste, or abuse of funds in the state Medicaid |
|
program from any source. |
|
(b) An integrity review must begin not later than the 30th |
|
day after the date the office receives a complaint or has reason to |
|
believe that Medicaid fraud, waste, or abuse has occurred. An |
|
integrity review shall be completed not later than the 90th day |
|
after the date the review began. |
|
(c) If the findings of an integrity review give the office |
|
reason to believe that an incident of fraud involving possible |
|
criminal conduct has occurred in the state Medicaid program, the |
|
office must take the following action, as appropriate, not later |
|
than the 30th day after the completion of the integrity review: |
|
(1) if a provider is suspected of fraud involving |
|
criminal conduct, the office must refer the case to the state's |
|
Medicaid fraud control unit, provided that the criminal referral |
|
does not preclude the office from continuing its investigation of |
|
the provider or preclude the imposition of appropriate |
|
administrative or civil sanctions; or |
|
(2) if there is reason to believe that a recipient of |
|
funds has defrauded the Medicaid program, the office may conduct a |
|
full investigation of the suspected fraud. |
|
Sec. 422.156. ACCESS TO INFORMATION. (a) To further a |
|
review conducted by the office, the inspector general is entitled |
|
to full and unrestricted access to all offices, limited access or |
|
restricted areas, employees, books, papers, records, documents, |
|
equipment, computers, databases, systems, accounts, reports, |
|
vouchers, or other information, including confidential |
|
information, electronic data, and internal records relevant to the |
|
functions of the office, maintained by a person, a state agency, |
|
including a health and human services agency, or a health or human |
|
services provider in connection with a state or federally funded |
|
program. |
|
(b) The inspector general may not access data or other |
|
information the release of which is restricted under federal law |
|
unless the appropriate federal agency approves the release to the |
|
office or its agent. |
|
Sec. 422.157. COOPERATION REQUIRED. To further a review |
|
conducted by the inspector general's office, the inspector general |
|
may require medical or other professional assistance from the |
|
executive commissioner, the commission, a state agency, including a |
|
health and human services agency, or an auditor, accountant, or |
|
other employee of the commission or agency. |
|
Sec. 422.158. REFERRAL TO STATE MEDICAID FRAUD CONTROL |
|
UNIT. (a) At the time the office learns or has reason to suspect |
|
that a health or human services provider's records related to |
|
participation in the state Medicaid program are being withheld, |
|
concealed, destroyed, fabricated, or in any way falsified, the |
|
office shall immediately refer the case to the state's Medicaid |
|
fraud control unit. |
|
(b) A criminal referral under Subsection (a) does not |
|
preclude the office from continuing its investigation of a health |
|
or human services provider or the imposition of appropriate |
|
administrative or civil sanctions. |
|
Sec. 422.159. HOLD ON CLAIM REIMBURSEMENT PAYMENT; |
|
EXCLUSION FROM PROGRAMS. (a) In addition to other instances |
|
authorized under state or federal law, the office shall impose |
|
without prior notice a hold on payment of claims for reimbursement |
|
submitted by a health or human services provider to compel |
|
production of records related to participation in the state |
|
Medicaid program or on request of the state's Medicaid fraud |
|
control unit, as applicable. |
|
(b) The office must notify the health or human services |
|
provider of the hold on payment not later than the fifth working day |
|
after the date the payment hold is imposed. |
|
(c) The office shall, in consultation with the state's |
|
Medicaid fraud control unit, establish guidelines under which holds |
|
on payment or exclusions from a state or state-funded program: |
|
(1) may permissively be imposed on a health or human |
|
services provider; or |
|
(2) shall automatically be imposed on a provider. |
|
(d) A health or human services provider subject to a hold on |
|
payment or excluded from a program under this section is entitled to |
|
a hearing on the hold or exclusion. A hearing under this subsection |
|
is a contested case hearing under Chapter 2001. The State Office of |
|
Administrative Hearings shall conduct the hearing. After the |
|
hearing, the office, subject to judicial review, shall make a final |
|
determination. The commission, a health and human services agency, |
|
and the attorney general are entitled to intervene as parties in the |
|
contested case. |
|
Sec. 422.160. REQUEST FOR EXPEDITED HEARING. (a) On timely |
|
written request by a health or human services provider subject to a |
|
hold on payment under Section 422.159, other than a hold requested |
|
by the state's Medicaid fraud control unit, the office shall file a |
|
request with the State Office of Administrative Hearings for an |
|
expedited administrative hearing regarding the hold. |
|
(b) The health or human services provider must request an |
|
expedited hearing not later than the 10th day after the date the |
|
provider receives notice from the office under Section 422.159(b). |
|
Sec. 422.161. INFORMAL RESOLUTION. (a) The inspector |
|
general shall adopt rules that allow a health or human services |
|
provider subject to a hold on payment under Section 422.159, other |
|
than a hold requested by the state's Medicaid fraud control unit, to |
|
seek an informal resolution of the issues identified by the office |
|
in the notice provided under that section. |
|
(b) A health or human services provider must seek an |
|
informal resolution not later than the 10th day after the date the |
|
provider receives notice from the office under Section 422.159(b). |
|
(c) A health or human services provider's decision to seek |
|
an informal resolution does not extend the time by which the |
|
provider must request an expedited administrative hearing under |
|
Section 422.160. |
|
(d) A hearing initiated under Section 422.159 shall be |
|
stayed at the office's request until the informal resolution |
|
process is completed. |
|
Sec. 422.162. EMPLOYEE REPORTS. The inspector general may |
|
require employees at the commission or a state agency, including a |
|
health and human services agency, to report to the office |
|
information regarding fraud, waste, misuse or abuse of funds or |
|
resources, corruption, or illegal acts. |
|
Sec. 422.163. SUBPOENAS. (a) The inspector general may |
|
issue a subpoena to compel the attendance of a relevant witness or |
|
the production, for inspection or copying, of relevant evidence in |
|
connection with a review conducted under this subchapter. |
|
(b) A subpoena may be served personally or by certified |
|
mail. |
|
(c) If a person fails to comply with a subpoena, the |
|
inspector general, acting through the attorney general, may file |
|
suit to enforce the subpoena in a district court in this state. |
|
(d) On finding that good cause exists for issuing the |
|
subpoena, the court shall order the person to comply with the |
|
subpoena. The court may hold in contempt a person who fails to obey |
|
the court order. |
|
(e) The reimbursement of the expenses of a witness whose |
|
attendance is compelled under this section is governed by Section |
|
2001.103. |
|
Sec. 422.164. INTERNAL AUDITOR. (a) In this section, |
|
"internal auditor" means a person appointed under Section 2102.006. |
|
(b) The internal auditor for a health and human services |
|
agency shall provide the inspector general with a copy of the |
|
agency's internal audit plan to: |
|
(1) assist in the coordination of efforts between the |
|
inspector general and the internal auditor; and |
|
(2) limit duplication of effort regarding reviews by |
|
the inspector general and internal auditor. |
|
(c) The internal auditor shall provide to the inspector |
|
general all final audit reports concerning audits of any: |
|
(1) part or division of the agency; |
|
(2) contract, procurement, or grant; and |
|
(3) program conducted by the agency. |
|
Sec. 422.165. COOPERATION WITH LAW ENFORCEMENT OFFICIALS |
|
AND OTHER ENTITIES. (a) The inspector general may provide |
|
information and evidence relating to criminal acts to the state |
|
auditor's office and appropriate law enforcement officials. |
|
(b) The inspector general may refer matters for further |
|
civil, criminal, and administrative action to appropriate |
|
administrative and prosecutorial agencies, including the attorney |
|
general. |
|
(c) The inspector general may enter into a memorandum of |
|
understanding with a law enforcement or prosecutorial agency, |
|
including the attorney general, to assist in conducting a review |
|
under this subchapter. |
|
Sec. 422.166. COOPERATION AND COORDINATION WITH STATE |
|
AUDITOR. (a) The state auditor may, on request of the inspector |
|
general, provide appropriate information or other assistance to the |
|
inspector general or office, as determined by the state auditor. |
|
(b) The inspector general may meet with the state auditor's |
|
office to coordinate a review conducted under this subchapter, |
|
share information, or schedule work plans. |
|
(c) The state auditor is entitled to access all information |
|
maintained by the inspector general, including vouchers, |
|
electronic data, internal records, and information obtained under |
|
Section 422.156 or subject to Section 422.173. |
|
(d) Any information obtained or provided by the state |
|
auditor under this section is confidential and not subject to |
|
disclosure under Chapter 552. |
|
Sec. 422.167. PREVENTION. (a) The inspector general may |
|
recommend to the commission, the executive commissioner, or the |
|
presiding officer of a state agency policies on: |
|
(1) promoting economical and efficient administration |
|
of state or federal funds administered by an individual or entity |
|
that received the funds from a state agency, including a health and |
|
human services agency; and |
|
(2) preventing and detecting fraud, waste, and abuse |
|
in the administration of those funds. |
|
(b) The inspector general may provide training or other |
|
education regarding the prevention of fraud, waste, and abuse to |
|
employees of a state agency, including a health and human services |
|
agency. The training or education provided must be approved by the |
|
presiding officer of the agency. |
|
Sec. 422.168. RULEMAKING BY EXECUTIVE COMMISSIONER OR |
|
PRESIDING OFFICER OF STATE AGENCY. The executive commissioner or |
|
the presiding officer of a state agency, as applicable, may adopt |
|
rules governing a state agency's response to reports and referrals |
|
from the inspector general on issues identified by the inspector |
|
general related to the agency or a contractor of the agency. |
|
Sec. 422.169. ALLEGATIONS OF MISCONDUCT AGAINST PRESIDING |
|
OFFICER. If a review by the inspector general involves allegations |
|
that a presiding officer of a state agency has engaged in |
|
misconduct, the inspector general shall report to the governor |
|
during the review until the report is completed or the review is |
|
closed without a finding. |
|
Sec. 422.170. PERIODIC REPORTING REQUIRED. The inspector |
|
general shall timely inform the governor, the attorney general, the |
|
state auditor, the presiding officer, and the relevant state agency |
|
of the initiation of a review of a state agency program and the |
|
ongoing status of each review. |
|
Sec. 422.171. REPORTING OFFICE FINDINGS. The inspector |
|
general shall report the findings of the office to: |
|
(1) the presiding officer of the state agency; |
|
(2) the governor; |
|
(3) the lieutenant governor; |
|
(4) the speaker of the house of representatives; |
|
(5) the comptroller; |
|
(6) the state auditor; and |
|
(7) the attorney general. |
|
Sec. 422.172. FLAGRANT VIOLATIONS; IMMEDIATE REPORT. The |
|
inspector general shall immediately report to the presiding officer |
|
of a state agency associated with the review, the governor's |
|
general counsel, and the state auditor a particularly serious or |
|
flagrant problem relating to the administration of a program, |
|
operation of a state agency, or interference with an inspector |
|
general review. |
|
Sec. 422.173. INFORMATION CONFIDENTIAL. (a) Except as |
|
provided by this chapter, all information and material compiled by |
|
the inspector general during a review under this subchapter is: |
|
(1) confidential and not subject to disclosure under |
|
Chapter 552; and |
|
(2) not subject to disclosure, discovery, subpoena, or |
|
other means of legal compulsion for release to anyone other than the |
|
state auditor's office, the state agency, or the office or its |
|
agents involved in the review related to that information or |
|
material. |
|
(b) As the inspector general determines appropriate, |
|
information relating to a review may be disclosed to: |
|
(1) a law enforcement agency; |
|
(2) the attorney general; |
|
(3) the state auditor; or |
|
(4) the state agency. |
|
(c) A person that receives information under Subsection (b) |
|
may not disclose the information except to the extent that |
|
disclosure is consistent with the authorized purpose for which the |
|
person first obtained the information. |
|
Sec. 422.174. DRAFT OF FINAL REVIEW REPORT; AGENCY |
|
RESPONSE. (a) Except in cases in which the office has determined |
|
that potential fraud, waste, or abuse exists, the office shall |
|
provide a draft of the final review report of any investigation, |
|
audit, or review of the operations of a state agency to the |
|
presiding officer of the agency before publishing the office's |
|
final review report. |
|
(b) A state agency may provide a response to the office's |
|
draft report in the manner prescribed by the office not later than |
|
the 10th day after the date the draft report is received by the |
|
agency. The inspector general by rule shall specify the format and |
|
requirements of the agency response. |
|
(c) Notwithstanding Subsection (a), the office may not |
|
provide a draft report to the presiding officer of the agency if in |
|
the inspector general's opinion providing the draft report could |
|
negatively affect any anticipated civil or criminal proceedings. |
|
(d) The office may include any portion of the agency's |
|
response in the office's final report. |
|
Sec. 422.175. FINAL REVIEW REPORTS; AGENCY RESPONSE. (a) |
|
The inspector general shall prepare a final report for each review |
|
conducted under this subchapter. The final report must include: |
|
(1) a summary of the activities performed by the |
|
inspector general in conducting the review; |
|
(2) a determination of whether wrongdoing was found; |
|
and |
|
(3) a description of any findings of wrongdoing. |
|
(b) The inspector general's final review reports are |
|
subject to disclosure under Chapter 552. |
|
(c) All working papers and other documents related to |
|
compiling the final review reports remain confidential and are not |
|
subject to disclosure under Chapter 552. |
|
(d) Not later than the 60th day after the date the office |
|
issues a final report that identifies deficiencies or |
|
inefficiencies in, or recommends corrective measures in the |
|
operations of, a state agency, the agency shall file a response that |
|
includes: |
|
(1) an implementation plan and timeline for |
|
implementing corrective measures; or |
|
(2) the agency's rationale for declining to implement |
|
corrective measures for the identified deficiencies or |
|
inefficiencies or the office's recommended corrective measures, as |
|
applicable. |
|
Sec. 422.176. STATE AUDITOR AUDITS, INVESTIGATIONS, AND |
|
ACCESS TO INFORMATION NOT IMPAIRED. This subchapter or other law |
|
related to the operation of the inspector general does not prohibit |
|
the state auditor from conducting an audit, investigation, or other |
|
review or from having full and complete access to all records and |
|
other information, including witnesses and electronic data, that |
|
the state auditor considers necessary for the audit, investigation, |
|
or other review. |
|
Sec. 422.177. COSTS. (a) The inspector general shall |
|
maintain information regarding the cost of reviews. |
|
(b) The inspector general may cooperate with appropriate |
|
administrative and prosecutorial agencies, including the attorney |
|
general, in recovering costs incurred under this subchapter from |
|
nongovernmental entities, including contractors or individuals |
|
involved in: |
|
(1) violations of applicable state or federal rules or |
|
statutes; |
|
(2) abusive or wilful misconduct; or |
|
(3) violations of a provider contract or program |
|
policy. |
|
Sec. 422.178. ADMINISTRATIVE OR CIVIL PENALTY; INJUNCTION. |
|
(a) The office may: |
|
(1) act for a state agency in the assessment by the |
|
office of administrative or civil penalties the agency is |
|
authorized to assess under applicable law; and |
|
(2) request that the attorney general obtain an |
|
injunction to prevent a person from disposing of an asset |
|
identified by the office as potentially subject to recovery by the |
|
office due to the person's fraud, waste, or abuse. |
|
(b) If the office imposes an administrative or civil penalty |
|
under Subsection (a) for a state agency: |
|
(1) the state agency may not impose an administrative |
|
or civil penalty against the same person for the same violation; and |
|
(2) the office shall impose the penalty under |
|
applicable rules of the office, this subchapter, and applicable |
|
laws governing the imposition of a penalty by the state agency. |
|
SECTION 2. Section 531.001, Government Code, is amended by |
|
adding Subdivision (4-a) to read as follows: |
|
(4-a) "Office of inspector general" means the office |
|
of inspector general established under Chapter 422. |
|
SECTION 3. Section 531.008(c), Government Code, is amended |
|
to read as follows: |
|
(c) The executive commissioner shall establish the |
|
following divisions and offices within the commission: |
|
(1) the eligibility services division to make |
|
eligibility determinations for services provided through the |
|
commission or a health and human services agency related to: |
|
(A) the child health plan program; |
|
(B) the financial assistance program under |
|
Chapter 31, Human Resources Code; |
|
(C) the medical assistance program under Chapter |
|
32, Human Resources Code; |
|
(D) the nutritional assistance programs under |
|
Chapter 33, Human Resources Code; |
|
(E) long-term care services, as defined by |
|
Section 22.0011, Human Resources Code; |
|
(F) community-based support services identified |
|
or provided in accordance with Section 531.02481; and |
|
(G) other health and human services programs, as |
|
appropriate; |
|
(2) [the office of inspector general to perform fraud
|
|
and abuse investigation and enforcement functions as provided by
|
|
Subchapter C and other law;
|
|
[(3)] the office of the ombudsman to: |
|
(A) provide dispute resolution services for the |
|
commission and the health and human services agencies; and |
|
(B) perform consumer protection functions |
|
related to health and human services; |
|
(3) [(4)] a purchasing division as provided by Section |
|
531.017; and |
|
(4) [(5)] an internal audit division to conduct a |
|
program of internal auditing in accordance with [Government Code,] |
|
Chapter 2102. |
|
SECTION 4. Section 531.105, Government Code, is amended to |
|
read as follows: |
|
Sec. 531.105. FRAUD DETECTION TRAINING. (a) The office of |
|
inspector general [commission] shall develop and implement a |
|
program to provide annual training to contractors who process |
|
Medicaid claims and appropriate staff of the commission and other |
|
health and human services agencies [the Texas Department of Health
|
|
and the Texas Department of Human Services] in identifying |
|
potential cases of fraud, waste, or abuse under the state Medicaid |
|
program. The training provided to the contractors and staff must |
|
include clear criteria that specify: |
|
(1) the circumstances under which a person should |
|
refer a potential case to the office [commission]; and |
|
(2) the time by which a referral should be made. |
|
(b) The commission and other health and human services |
|
agencies [The Texas Department of Health and the Texas Department
|
|
of Human Services], in cooperation with the office of inspector |
|
general [commission], shall periodically set a goal of the number |
|
of potential cases of fraud, waste, or abuse under the state |
|
Medicaid program that each agency will attempt to identify and |
|
refer to the office [commission]. The office [commission] shall |
|
include information on the agencies' goals and the success of each |
|
agency in meeting the agency's goal in the report required by |
|
Section 422.109 [531.103(c)]. |
|
SECTION 5. Sections 531.106(a), (b), (d), (e), (f), and |
|
(g), Government Code, are amended to read as follows: |
|
(a) The office of inspector general [commission] shall use |
|
learning or neural network technology to identify and deter fraud |
|
in the Medicaid program throughout this state. |
|
(b) The office of inspector general [commission] shall |
|
contract with a private or public entity to develop and implement |
|
the technology. The office [commission] may require the entity it |
|
contracts with to install and operate the technology at locations |
|
specified by the office [commission], including the office of |
|
inspector general's [commission] offices. |
|
(d) The office of inspector general [commission] shall |
|
require each health and human services agency that performs any |
|
aspect of the state Medicaid program to participate in the |
|
implementation and use of the technology. |
|
(e) The office of inspector general [commission] shall |
|
maintain all information necessary to apply the technology to |
|
claims data covering a period of at least two years. |
|
(f) The office of inspector general [commission] shall |
|
investigate [refer] cases identified by the technology and shall |
|
refer cases to the [commission's office of investigations and
|
|
enforcement or the] office of the attorney general for prosecution, |
|
as appropriate. |
|
(g) Each month, the learning or neural network technology |
|
implemented under this section must match bureau of vital |
|
statistics death records with Medicaid claims filed by a provider. |
|
If the office of inspector general [commission] determines that a |
|
provider has filed a claim for services provided to a person after |
|
the person's date of death, as determined by the bureau of vital |
|
statistics death records, the office [commission] shall |
|
investigate [refer] the case [for investigation to the commission's
|
|
office of investigations and enforcement]. |
|
SECTION 6. Section 531.1061, Government Code, is amended to |
|
read as follows: |
|
Sec. 531.1061. FRAUD INVESTIGATION TRACKING SYSTEM. |
|
(a) The office of inspector general [commission] shall use an |
|
automated fraud investigation tracking system [through the
|
|
commission's office of investigations and enforcement] to monitor |
|
the progress of an investigation of suspected fraud, waste, abuse, |
|
or insufficient quality of care under the state Medicaid program. |
|
(b) For each case of suspected fraud, waste, abuse, or |
|
insufficient quality of care identified by the learning or neural |
|
network technology required under Section 531.106, the automated |
|
fraud investigation tracking system must: |
|
(1) receive electronically transferred records |
|
relating to the identified case from the learning or neural network |
|
technology; |
|
(2) record the details and monitor the status of an |
|
investigation of the identified case, including maintaining a |
|
record of the beginning and completion dates for each phase of the |
|
case investigation; |
|
(3) generate documents and reports related to the |
|
status of the case investigation; and |
|
(4) generate standard letters to a provider regarding |
|
the status or outcome of an investigation. |
|
(c) The office of inspector general [commission] shall |
|
require each health and human services agency that performs any |
|
aspect of the state Medicaid program to participate in the |
|
implementation and use of the automated fraud investigation |
|
tracking system. |
|
SECTION 7. Section 531.1062(a), Government Code, is amended |
|
to read as follows: |
|
(a) The office of inspector general [commission] shall use |
|
an automated recovery monitoring system to monitor the collections |
|
process for a settled case of fraud, waste, abuse, or insufficient |
|
quality of care under the state Medicaid program. |
|
SECTION 8. Sections 531.107(a), (b), and (f), Government |
|
Code, are amended to read as follows: |
|
(a) The Medicaid and Public Assistance Fraud Oversight Task |
|
Force advises and assists the [commission and the commission's] |
|
office of inspector general [of investigations and enforcement] in |
|
improving the efficiency of fraud investigations and collections. |
|
(b) The task force is composed of a representative of the: |
|
(1) attorney general's office, appointed by the |
|
attorney general; |
|
(2) comptroller's office, appointed by the |
|
comptroller; |
|
(3) Department of Public Safety, appointed by the |
|
public safety director; |
|
(4) state auditor's office, appointed by the state |
|
auditor; |
|
(5) office of inspector general, appointed by the |
|
inspector general [commission, appointed by the commissioner of
|
|
health and human services]; |
|
(6) [Texas] Department of Aging and Disability [Human] |
|
Services, appointed by the commissioner of aging and disability |
|
[human] services; |
|
(7) Texas Department of Insurance, appointed by the |
|
commissioner of insurance; and |
|
(8) [Texas] Department of State Health Services, |
|
appointed by the commissioner of state [public] health services. |
|
(f) At least once each fiscal quarter, the [commission's] |
|
office of inspector general [of investigations and enforcement] |
|
shall provide to the task force: |
|
(1) information detailing: |
|
(A) the number of fraud referrals made to the |
|
office and the origin of each referral; |
|
(B) the time spent investigating each case; |
|
(C) the number of cases investigated each month, |
|
by program and region; |
|
(D) the dollar value of each fraud case that |
|
results in a criminal conviction; and |
|
(E) the number of cases the office rejects and |
|
the reason for rejection, by region; and |
|
(2) any additional information the task force |
|
requires. |
|
SECTION 9. Section 531.108, Government Code, is amended to |
|
read as follows: |
|
Sec. 531.108. FRAUD PREVENTION. (a) [The commission's
|
|
office of investigations and enforcement shall compile and
|
|
disseminate accurate information and statistics relating to:
|
|
[(1)fraud prevention; and
|
|
[(2) post-fraud referrals received and accepted or
|
|
rejected from the commission's case management system or the case
|
|
management system of a health and human services agency.
|
|
[(b)The commission shall:
|
|
[(1) aggressively publicize successful fraud
|
|
prosecutions and fraud-prevention programs through all available
|
|
means, including the use of statewide press releases issued in
|
|
coordination with the Texas Department of Human Services; and
|
|
[(2) ensure that a toll-free hotline for reporting
|
|
suspected fraud in programs administered by the commission or a
|
|
health and human services agency is maintained and promoted, either
|
|
by the commission or by a health and human services agency.
|
|
[(c)] The office of inspector general [commission] shall |
|
develop a cost-effective method of identifying applicants for |
|
public assistance in counties bordering other states and in |
|
metropolitan areas selected by the office [commission] who are |
|
already receiving benefits in other states. If economically |
|
feasible, the office [commission] may develop a computerized |
|
matching system. |
|
(b) [(d)] The office of inspector general [commission] |
|
shall: |
|
(1) verify automobile information that is used as |
|
criteria for eligibility; and |
|
(2) establish a computerized matching system with the |
|
Texas Department of Criminal Justice to prevent an incarcerated |
|
individual from illegally receiving public assistance benefits |
|
administered by the commission. |
|
(c) [(e)] The office of inspector general [commission] |
|
shall submit to the governor and Legislative Budget Board a |
|
semiannual report on the results of computerized matching of office |
|
[commission] information with information from neighboring states, |
|
if any, and information from the Texas Department of Criminal |
|
Justice. The report may be consolidated with any other report |
|
relating to the same subject matter the office [commission] is |
|
required to submit under other law. |
|
SECTION 10. Section 531.109, Government Code, is amended to |
|
read as follows: |
|
Sec. 531.109. SELECTION AND REVIEW OF CLAIMS. (a) The |
|
office of inspector general [commission] shall annually select and |
|
review a random, statistically valid sample of all claims for |
|
reimbursement under the state Medicaid program, including the |
|
vendor drug program, for potential cases of fraud, waste, or abuse. |
|
(b) In conducting the annual review of claims under |
|
Subsection (a), the office of inspector general [commission] may |
|
directly contact a recipient by telephone or in person, or both, to |
|
verify that the services for which a claim for reimbursement was |
|
submitted by a provider were actually provided to the recipient. |
|
(c) Based on the results of the annual review of claims, the |
|
office of inspector general [commission] shall determine the types |
|
of claims at which office [commission] resources for fraud, waste, |
|
and abuse detection should be primarily directed. |
|
SECTION 11. Sections 531.110(a), (c), (d), (e), and (f), |
|
Government Code, are amended to read as follows: |
|
(a) The office of inspector general [commission] shall |
|
conduct electronic data matches for a recipient of assistance under |
|
the state Medicaid program at least quarterly to verify the |
|
identity, income, employment status, and other factors that affect |
|
the eligibility of the recipient. |
|
(c) The commission and other health and human services |
|
agencies [Texas Department of Human Services] shall cooperate with |
|
the office of inspector general [commission] by providing data or |
|
any other assistance necessary to conduct the electronic data |
|
matches required by this section. |
|
(d) The office of inspector general [commission] may |
|
contract with a public or private entity to conduct the electronic |
|
data matches required by this section. |
|
(e) The office of inspector general [commission, or a health
|
|
and human services agency designated by the commission,] by rule |
|
shall establish procedures to verify the electronic data matches |
|
conducted by the office [commission] under this section. Not later |
|
than the 20th day after the date the electronic data match is |
|
verified, the commission and other health and human services |
|
agencies [Texas Department of Human Services] shall remove from |
|
eligibility a recipient who is determined to be ineligible for |
|
assistance under the state Medicaid program. |
|
(f) The office of inspector general [commission] shall |
|
report biennially to the legislature the results of the electronic |
|
data matching program. The report must include a summary of the |
|
number of applicants who were removed from eligibility for |
|
assistance under the state Medicaid program as a result of an |
|
electronic data match conducted under this section. |
|
SECTION 12. Section 531.111, Government Code, is amended to |
|
read as follows: |
|
Sec. 531.111. FRAUD DETECTION TECHNOLOGY. The office of |
|
inspector general [commission] may contract with a contractor who |
|
specializes in developing technology capable of identifying |
|
patterns of fraud exhibited by Medicaid recipients to: |
|
(1) develop and implement the fraud detection |
|
technology; and |
|
(2) determine if a pattern of fraud by Medicaid |
|
recipients is present in the recipients' eligibility files |
|
maintained by the commission and other health and human services |
|
agencies [Texas Department of Human Services]. |
|
SECTION 13. Section 531.113, Government Code, is amended to |
|
read as follows: |
|
Sec. 531.113. MANAGED CARE ORGANIZATIONS: SPECIAL |
|
INVESTIGATIVE UNITS OR CONTRACTS. (a) Each managed care |
|
organization that provides or arranges for the provision of health |
|
care services to an individual under a government-funded program, |
|
including the Medicaid program and the child health plan program, |
|
shall: |
|
(1) establish and maintain a special investigative |
|
unit within the managed care organization to investigate fraudulent |
|
claims and other types of program waste or abuse by recipients and |
|
service providers; or |
|
(2) contract with another entity for the investigation |
|
of fraudulent claims and other types of program waste or abuse by |
|
recipients and service providers. |
|
(b) Each managed care organization subject to this section |
|
shall adopt a plan to prevent and reduce fraud, waste, and abuse and |
|
annually file that plan with the [commission's] office of inspector |
|
general for approval. The plan must include: |
|
(1) a description of the managed care organization's |
|
procedures for detecting and investigating possible acts of fraud, |
|
waste, or abuse; |
|
(2) a description of the managed care organization's |
|
procedures for the mandatory reporting of possible acts of fraud, |
|
waste, or abuse to the [commission's] office of inspector general; |
|
(3) a description of the managed care organization's |
|
procedures for educating and training personnel to prevent fraud, |
|
waste, and abuse; |
|
(4) the name, address, telephone number, and fax |
|
number of the individual responsible for carrying out the plan; |
|
(5) a description or chart outlining the |
|
organizational arrangement of the managed care organization's |
|
personnel responsible for investigating and reporting possible |
|
acts of fraud, waste, or abuse; |
|
(6) a detailed description of the results of |
|
investigations of fraud, waste, and abuse conducted by the managed |
|
care organization's special investigative unit or the entity with |
|
which the managed care organization contracts under Subsection |
|
(a)(2); and |
|
(7) provisions for maintaining the confidentiality of |
|
any patient information relevant to an investigation of fraud, |
|
waste, or abuse. |
|
(c) If a managed care organization contracts for the |
|
investigation of fraudulent claims and other types of program waste |
|
or abuse by recipients and service providers under Subsection |
|
(a)(2), the managed care organization shall file with the |
|
[commission's] office of inspector general: |
|
(1) a copy of the written contract; |
|
(2) the names, addresses, telephone numbers, and fax |
|
numbers of the principals of the entity with which the managed care |
|
organization has contracted; and |
|
(3) a description of the qualifications of the |
|
principals of the entity with which the managed care organization |
|
has contracted. |
|
(d) The [commission's] office of inspector general may |
|
review the records of a managed care organization to determine |
|
compliance with this section. |
|
(e) The inspector general [commissioner] shall adopt rules |
|
as necessary to accomplish the purposes of this section. |
|
SECTION 14. Sections 531.114(b) and (g), Government Code, |
|
are amended to read as follows: |
|
(b) If after an investigation the office of inspector |
|
general [commission] determines that a person violated Subsection |
|
(a), the office [commission] shall: |
|
(1) notify the person of the alleged violation not |
|
later than the 30th day after the date the office [commission] |
|
completes the investigation and provide the person with an |
|
opportunity for a hearing on the matter; or |
|
(2) refer the matter to the appropriate prosecuting |
|
attorney for prosecution. |
|
(g) The office of inspector general [commission] shall |
|
adopt rules as necessary to implement this section. |
|
SECTION 15. Section 533.001, Government Code, is amended by |
|
adding Subdivision (3-a) to read as follows: |
|
(3-a) "Inspector general" means the inspector general |
|
appointed under Chapter 422. |
|
SECTION 16. Section 533.005(a), Government Code, is amended |
|
to read as follows: |
|
(a) A contract between a managed care organization and the |
|
commission for the organization to provide health care services to |
|
recipients must contain: |
|
(1) procedures to ensure accountability to the state |
|
for the provision of health care services, including procedures for |
|
financial reporting, quality assurance, utilization review, and |
|
assurance of contract and subcontract compliance; |
|
(2) capitation rates that ensure the cost-effective |
|
provision of quality health care; |
|
(3) a requirement that the managed care organization |
|
provide ready access to a person who assists recipients in |
|
resolving issues relating to enrollment, plan administration, |
|
education and training, access to services, and grievance |
|
procedures; |
|
(4) a requirement that the managed care organization |
|
provide ready access to a person who assists providers in resolving |
|
issues relating to payment, plan administration, education and |
|
training, and grievance procedures; |
|
(5) a requirement that the managed care organization |
|
provide information and referral about the availability of |
|
educational, social, and other community services that could |
|
benefit a recipient; |
|
(6) procedures for recipient outreach and education; |
|
(7) a requirement that the managed care organization |
|
make payment to a physician or provider for health care services |
|
rendered to a recipient under a managed care plan not later than the |
|
45th day after the date a claim for payment is received with |
|
documentation reasonably necessary for the managed care |
|
organization to process the claim, or within a period, not to exceed |
|
60 days, specified by a written agreement between the physician or |
|
provider and the managed care organization; |
|
(8) a requirement that the commission, on the date of a |
|
recipient's enrollment in a managed care plan issued by the managed |
|
care organization, inform the organization of the recipient's |
|
Medicaid certification date; |
|
(9) a requirement that the managed care organization |
|
comply with Section 533.006 as a condition of contract retention |
|
and renewal; |
|
(10) a requirement that the managed care organization |
|
provide the information required by Section 533.012 and otherwise |
|
comply and cooperate with the [commission's] office of inspector |
|
general; |
|
(11) a requirement that the managed care |
|
organization's usages of out-of-network providers or groups of |
|
out-of-network providers may not exceed limits for those usages |
|
relating to total inpatient admissions, total outpatient services, |
|
and emergency room admissions determined by the commission; |
|
(12) if the commission finds that a managed care |
|
organization has violated Subdivision (11), a requirement that the |
|
managed care organization reimburse an out-of-network provider for |
|
health care services at a rate that is equal to the allowable rate |
|
for those services, as determined under Sections 32.028 and |
|
32.0281, Human Resources Code; |
|
(13) a requirement that the organization use advanced |
|
practice nurses in addition to physicians as primary care providers |
|
to increase the availability of primary care providers in the |
|
organization's provider network; |
|
(14) a requirement that the managed care organization |
|
reimburse a federally qualified health center or rural health |
|
clinic for health care services provided to a recipient outside of |
|
regular business hours, including on a weekend day or holiday, at a |
|
rate that is equal to the allowable rate for those services as |
|
determined under Section 32.028, Human Resources Code, if the |
|
recipient does not have a referral from the recipient's primary |
|
care physician; and |
|
(15) a requirement that the managed care organization |
|
develop, implement, and maintain a system for tracking and |
|
resolving all provider appeals related to claims payment, including |
|
a process that will require: |
|
(A) a tracking mechanism to document the status |
|
and final disposition of each provider's claims payment appeal; |
|
(B) the contracting with physicians who are not |
|
network providers and who are of the same or related specialty as |
|
the appealing physician to resolve claims disputes related to |
|
denial on the basis of medical necessity that remain unresolved |
|
subsequent to a provider appeal; and |
|
(C) the determination of the physician resolving |
|
the dispute to be binding on the managed care organization and |
|
provider. |
|
SECTION 17. Sections 533.012(a), (b), (c), and (e), |
|
Government Code, are amended to read as follows: |
|
(a) Each managed care organization contracting with the |
|
commission under this chapter shall submit to the office of |
|
inspector general [commission]: |
|
(1) a description of any financial or other business |
|
relationship between the organization and any subcontractor |
|
providing health care services under the contract; |
|
(2) a copy of each type of contract between the |
|
organization and a subcontractor relating to the delivery of or |
|
payment for health care services; |
|
(3) a description of the fraud control program used by |
|
any subcontractor that delivers health care services; and |
|
(4) a description and breakdown of all funds paid to |
|
the managed care organization, including a health maintenance |
|
organization, primary care case management, and an exclusive |
|
provider organization, necessary for the office [commission] to |
|
determine the actual cost of administering the managed care plan. |
|
(b) The information submitted under this section must be |
|
submitted in the form required by the office of inspector general |
|
[commission] and be updated as required by the office [commission]. |
|
(c) The office [commission's office] of inspector general |
|
[investigations and enforcement] shall review the information |
|
submitted under this section as appropriate in the investigation of |
|
fraud in the Medicaid managed care program. The comptroller may |
|
review the information in connection with the health care fraud |
|
study conducted by the comptroller. |
|
(e) Information submitted to the office of inspector |
|
general [commission] under Subsection (a)(1) is confidential and |
|
not subject to disclosure under Chapter 552[, Government Code]. |
|
SECTION 18. Section 2054.376(b), Government Code, is |
|
amended to read as follows: |
|
(b) This subchapter does not apply to: |
|
(1) the Department of Public Safety's use for criminal |
|
justice or homeland security purposes of a federal database or |
|
network; |
|
(2) a Texas equivalent of a database or network |
|
described by Subdivision (1) that is managed by the Department of |
|
Public Safety; |
|
(3) the uniform statewide accounting system, as that |
|
term is used in Subchapter C, Chapter 2101; |
|
(4) the state treasury cash and treasury management |
|
system; [or] |
|
(5) a database or network managed by the comptroller |
|
to: |
|
(A) collect and process multiple types of taxes |
|
imposed by the state; or |
|
(B) manage or administer fiscal, financial, |
|
revenue, and expenditure activities of the state under Chapter 403 |
|
and Chapter 404; or |
|
(6) the office of inspector general's use, for |
|
criminal justice and statutorily mandated confidentiality |
|
purposes, of a federal or state database or network. |
|
SECTION 19. Section 21.014(b), Human Resources Code, is |
|
amended to read as follows: |
|
(b) The [person employed by the department as] inspector |
|
general shall make reports to and consult with the chairman of the |
|
board regarding: |
|
(1) the selection of internal audit topics; |
|
(2) the establishment of internal audit priorities; |
|
and |
|
(3) the findings of each regular or special internal |
|
audit initiative. |
|
SECTION 20. Section 32.003, Human Resources Code, is |
|
amended by adding Subdivision (5) to read as follows: |
|
(5) "Office of inspector general" means the office of |
|
inspector general established under Chapter 422, Government Code. |
|
SECTION 21. Section 32.0291, Human Resources Code, is |
|
amended to read as follows: |
|
Sec. 32.0291. PREPAYMENT REVIEWS AND POST PAYMENT HOLDS. |
|
(a) Notwithstanding any other law, the office of inspector general |
|
[department] may: |
|
(1) perform a prepayment review of a claim for |
|
reimbursement under the medical assistance program to determine |
|
whether the claim involves fraud, waste, or abuse; and |
|
(2) as necessary to perform that review, withhold |
|
payment of the claim for not more than five working days without |
|
notice to the person submitting the claim. |
|
(b) Notwithstanding any other law, the office of inspector |
|
general [department] may impose a postpayment hold on payment of |
|
future claims submitted by a provider if the office [department] |
|
has reliable evidence that the provider has committed fraud, waste, |
|
abuse, or wilful misrepresentation regarding a claim for |
|
reimbursement under the medical assistance program. The office |
|
[department] must notify the provider of the postpayment hold not |
|
later than the fifth working day after the date the hold is imposed. |
|
(c) On timely written request by a provider subject to a |
|
postpayment hold under Subsection (b), the office of inspector |
|
general [department] shall file a request with the State Office of |
|
Administrative Hearings for an expedited administrative hearing |
|
regarding the hold. The provider must request an expedited hearing |
|
under this subsection not later than the 10th day after the date the |
|
provider receives notice from the office [department] under |
|
Subsection (b). The office [department] shall discontinue the hold |
|
unless the office [department] makes a prima facie showing at the |
|
hearing that the evidence relied on by the office [department] in |
|
imposing the hold is relevant, credible, and material to the issue |
|
of fraud, waste, abuse, or wilful misrepresentation. |
|
(d) The office of inspector general [department] shall |
|
adopt rules that allow a provider subject to a postpayment hold |
|
under Subsection (b) to seek an informal resolution of the issues |
|
identified by the office [department] in the notice provided under |
|
that subsection. A provider must seek an informal resolution under |
|
this subsection not later than the deadline prescribed by |
|
Subsection (c). A provider's decision to seek an informal |
|
resolution under this subsection does not extend the time by which |
|
the provider must request an expedited administrative hearing under |
|
Subsection (c). However, a hearing initiated under Subsection (c) |
|
shall be stayed at the office's [department's] request until the |
|
informal resolution process is completed. |
|
SECTION 22. Section 32.032, Human Resources Code, is |
|
amended to read as follows: |
|
Sec. 32.032. PREVENTION AND DETECTION OF FRAUD AND ABUSE. |
|
The office of inspector general [department] shall adopt reasonable |
|
rules for minimizing the opportunity for fraud and abuse, for |
|
establishing and maintaining methods for detecting and identifying |
|
situations in which a question of fraud or abuse in the program may |
|
exist, and for referring cases where fraud or abuse appears to exist |
|
to the appropriate law enforcement agencies for prosecution. |
|
SECTION 23. Sections 32.0321(a), (b), (c), and (d), Human |
|
Resources Code, are amended to read as follows: |
|
(a) The office of inspector general [department] by rule may |
|
require each provider of medical assistance in a provider type that |
|
has demonstrated significant potential for fraud or abuse to |
|
file with the office [department] a surety bond in a reasonable |
|
amount. The office [department] by rule shall require a provider of |
|
medical assistance to file with the office [department] a surety |
|
bond in a reasonable amount if the office [department] identifies a |
|
pattern of suspected fraud or abuse involving criminal conduct |
|
relating to the provider's services under the medical assistance |
|
program that indicates the need for protection against potential |
|
future acts of fraud or abuse. |
|
(b) The bond under Subsection (a) must be payable to the |
|
office of inspector general [department] to compensate the office |
|
[department] for damages resulting from or penalties or fines |
|
imposed in connection with an act of fraud or abuse committed by the |
|
provider under the medical assistance program. |
|
(c) Subject to Subsection (d) or (e), the office of |
|
inspector general [department] by rule may require each provider of |
|
medical assistance that establishes a resident's trust fund account |
|
to post a surety bond to secure the account. The bond must be |
|
payable to the office [department] to compensate residents of the |
|
bonded provider for trust funds that are lost, stolen, or otherwise |
|
unaccounted for if the provider does not repay any deficiency in a |
|
resident's trust fund account to the person legally entitled to |
|
receive the funds. |
|
(d) The office of inspector general [department] may not |
|
require the amount of a surety bond posted for a single facility |
|
provider under Subsection (c) to exceed the average of the total |
|
average monthly balance of all the provider's resident trust fund |
|
accounts for the 12-month period preceding the bond issuance or |
|
renewal date. |
|
SECTION 24. Section 32.0322, Human Resources Code, is |
|
amended to read as follows: |
|
Sec. 32.0322. CRIMINAL HISTORY RECORD INFORMATION. |
|
(a) The office of inspector general and the department may obtain |
|
from any law enforcement or criminal justice agency the criminal |
|
history record information that relates to a provider under the |
|
medical assistance program or a person applying to enroll as a |
|
provider under the medical assistance program. |
|
(b) The office of inspector general [department] by rule |
|
shall establish criteria for revoking a provider's enrollment or |
|
denying a person's application to enroll as a provider under the |
|
medical assistance program based on the results of a criminal |
|
history check. |
|
SECTION 25. Section 33.015(e), Human Resources Code, is |
|
amended to read as follows: |
|
(e) The department shall require a person exempted under |
|
this section from making a personal appearance at department |
|
offices to provide verification of the person's entitlement to the |
|
exemption on initial eligibility certification and on each |
|
subsequent periodic eligibility recertification. If the person |
|
does not provide verification and the department considers the |
|
verification necessary to protect the integrity of the food stamp |
|
program, the department shall initiate a fraud referral to the |
|
[department's] office of inspector general. |
|
SECTION 26. Section 20.038, Business & Commerce Code, is |
|
amended to read as follows: |
|
Sec. 20.038. EXEMPTION FROM SECURITY FREEZE. A security |
|
freeze does not apply to a consumer report provided to: |
|
(1) a state or local governmental entity, including a |
|
law enforcement agency or court or private collection agency, if |
|
the entity, agency, or court is acting under a court order, warrant, |
|
subpoena, or administrative subpoena; |
|
(2) a child support agency as defined by Section |
|
101.004, Family Code, acting to investigate or collect child |
|
support payments or acting under Title IV-D of the Social Security |
|
Act (42 U.S.C. Section 651 et seq.); |
|
(3) the office of inspector general [Health and Human
|
|
Services Commission] acting to investigate fraud, waste, or abuse |
|
in state agencies under Chapter 422, Government Code, or other law |
|
[under Section 531.102, Government Code]; |
|
(4) the comptroller acting to investigate or collect |
|
delinquent sales or franchise taxes; |
|
(5) a tax assessor-collector acting to investigate or |
|
collect delinquent ad valorem taxes; |
|
(6) a person for the purposes of prescreening as |
|
provided by the Fair Credit Reporting Act (15 U.S.C. Section 1681 et |
|
seq.), as amended; |
|
(7) a person with whom the consumer has an account or |
|
contract or to whom the consumer has issued a negotiable |
|
instrument, or the person's subsidiary, affiliate, agent, |
|
assignee, prospective assignee, or private collection agency, for |
|
purposes related to that account, contract, or instrument; |
|
(8) a subsidiary, affiliate, agent, assignee, or |
|
prospective assignee of a person to whom access has been granted |
|
under Section 20.037(b); |
|
(9) a person who administers a credit file monitoring |
|
subscription service to which the consumer has subscribed; |
|
(10) a person for the purpose of providing a consumer |
|
with a copy of the consumer's report on the consumer's request; |
|
(11) a check service or fraud prevention service |
|
company that issues consumer reports: |
|
(A) to prevent or investigate fraud; or |
|
(B) for purposes of approving or processing |
|
negotiable instruments, electronic funds transfers, or similar |
|
methods of payment; |
|
(12) a deposit account information service company |
|
that issues consumer reports related to account closures caused by |
|
fraud, substantial overdrafts, automated teller machine abuses, or |
|
similar negative information regarding a consumer to an inquiring |
|
financial institution for use by the financial institution only in |
|
reviewing a consumer request for a deposit account with that |
|
institution; or |
|
(13) a consumer reporting agency that: |
|
(A) acts only to resell credit information by |
|
assembling and merging information contained in a database of |
|
another consumer reporting agency or multiple consumer reporting |
|
agencies; and |
|
(B) does not maintain a permanent database of |
|
credit information from which new consumer reports are produced. |
|
SECTION 27. Article 2.12, Code of Criminal Procedure, is |
|
amended to read as follows: |
|
Art. 2.12. WHO ARE PEACE OFFICERS. The following are peace |
|
officers: |
|
(1) sheriffs, their deputies, and those reserve |
|
deputies who hold a permanent peace officer license issued under |
|
Chapter 1701, Occupations Code; |
|
(2) constables, deputy constables, and those reserve |
|
deputy constables who hold a permanent peace officer license issued |
|
under Chapter 1701, Occupations Code; |
|
(3) marshals or police officers of an incorporated |
|
city, town, or village, and those reserve municipal police officers |
|
who hold a permanent peace officer license issued under Chapter |
|
1701, Occupations Code; |
|
(4) rangers and officers commissioned by the Public |
|
Safety Commission and the Director of the Department of Public |
|
Safety; |
|
(5) investigators of the district attorneys', criminal |
|
district attorneys', and county attorneys' offices; |
|
(6) law enforcement agents of the Texas Alcoholic |
|
Beverage Commission; |
|
(7) each member of an arson investigating unit |
|
commissioned by a city, a county, or the state; |
|
(8) officers commissioned under Section 37.081, |
|
Education Code, or Subchapter E, Chapter 51, Education Code; |
|
(9) officers commissioned by the General Services |
|
Commission; |
|
(10) law enforcement officers commissioned by the |
|
Parks and Wildlife Commission; |
|
(11) airport police officers commissioned by a city |
|
with a population of more than 1.18 million that operates an airport |
|
that serves commercial air carriers; |
|
(12) airport security personnel commissioned as peace |
|
officers by the governing body of any political subdivision of this |
|
state, other than a city described by Subdivision (11), that |
|
operates an airport that serves commercial air carriers; |
|
(13) municipal park and recreational patrolmen and |
|
security officers; |
|
(14) security officers and investigators commissioned |
|
as peace officers by the comptroller; |
|
(15) officers commissioned by a water control and |
|
improvement district under Section 49.216, Water Code; |
|
(16) officers commissioned by a board of trustees |
|
under Chapter 54, Transportation Code; |
|
(17) investigators commissioned by the Texas Medical |
|
[State] Board [of Medical Examiners]; |
|
(18) officers commissioned by the board of managers of |
|
the Dallas County Hospital District, the Tarrant County Hospital |
|
District, or the Bexar County Hospital District under Section |
|
281.057, Health and Safety Code; |
|
(19) county park rangers commissioned under |
|
Subchapter E, Chapter 351, Local Government Code; |
|
(20) investigators employed by the Texas Racing |
|
Commission; |
|
(21) officers commissioned under Chapter 554, |
|
Occupations Code; |
|
(22) officers commissioned by the governing body of a |
|
metropolitan rapid transit authority under Section 451.108, |
|
Transportation Code, or by a regional transportation authority |
|
under Section 452.110, Transportation Code; |
|
(23) investigators commissioned by the attorney |
|
general under Section 402.009, Government Code; |
|
(24) security officers and investigators commissioned |
|
as peace officers under Chapter 466, Government Code; |
|
(25) an officer employed by the [Texas] Department of |
|
State Health Services under Section 431.2471, Health and Safety |
|
Code; |
|
(26) officers appointed by an appellate court under |
|
Subchapter F, Chapter 53, Government Code; |
|
(27) officers commissioned by the state fire marshal |
|
under Chapter 417, Government Code; |
|
(28) an investigator commissioned by the commissioner |
|
of insurance under Section 701.104 [Article 1.10D], Insurance Code; |
|
(29) apprehension specialists commissioned by the |
|
Texas Youth Commission as officers under Section 61.0931, Human |
|
Resources Code; |
|
(30) officers appointed by the executive director of |
|
the Texas Department of Criminal Justice under Section 493.019, |
|
Government Code; |
|
(31) investigators commissioned by the Commission on |
|
Law Enforcement Officer Standards and Education under Section |
|
1701.160, Occupations Code; |
|
(32) commission investigators commissioned by the |
|
Texas [Commission on] Private Security Board under Section |
|
1702.061(f), Occupations Code; |
|
(33) the fire marshal and any officers, inspectors, or |
|
investigators commissioned by an emergency services district under |
|
Chapter 775, Health and Safety Code; [and] |
|
(34) officers commissioned by the State Board of |
|
Dental Examiners under Section 254.013, Occupations Code, subject |
|
to the limitations imposed by that section; and |
|
(35) officers commissioned by the office of inspector |
|
general established under Chapter 422, Government Code. |
|
SECTION 28. The following sections of the Government Code |
|
are repealed: |
|
(1) Section 531.102; |
|
(2) Section 531.1021; |
|
(3) Section 531.103; and |
|
(4) Section 531.104. |
|
SECTION 29. (a) The repeal by this Act of Section 531.102, |
|
Government Code, does not affect the validity of a complaint, |
|
investigation, or other proceeding initiated under that section |
|
before the effective date of this Act. A complaint, investigation, |
|
or other proceeding initiated under that section is continued in |
|
accordance with the changes in law made by this Act. |
|
(b) The repeal by this Act of Section 531.1021, Government |
|
Code, does not affect the validity of a subpoena issued under that |
|
section before the effective date of this Act. A subpoena issued |
|
under that section before the effective date of this Act is governed |
|
by the law that existed when the subpoena was issued, and the former |
|
law is continued in effect for that purpose. |
|
SECTION 30. (a) The person serving as inspector general |
|
under Section 531.102(a-1), Government Code, on the effective date |
|
of this Act shall serve as the inspector general appointed under |
|
Chapter 422, Government Code, as added by this Act, until February |
|
1, 2009, and may be reappointed under Chapter 422 if the person has |
|
the qualifications required under that chapter. |
|
(b) Not later than February 1, 2009, the governor shall |
|
appoint an inspector general for the office of inspector general |
|
under Chapter 422, Government Code, as added by this Act, to a term |
|
expiring February 1, 2011. |
|
SECTION 31. On the effective date of this Act: |
|
(1) all functions, activities, employees, rules, |
|
forms, money, property, contracts, memorandums of understanding, |
|
records, and obligations of the office of inspector general under |
|
Section 531.102(a-1), Government Code, become functions, |
|
activities, employees, rules, forms, money, property, contracts, |
|
memorandums of understanding, records, and obligations of the |
|
office of inspector general appointed under Chapter 422, Government |
|
Code, as added by this Act, without a change in status; and |
|
(2) all money appropriated for the office of inspector |
|
general under Section 531.102(a-1), Government Code, including |
|
money for providing administrative support, is considered |
|
appropriated to office of inspector general appointed under Chapter |
|
422, Government Code, as added by this Act. |
|
SECTION 32. A state agency for which a deputy inspector |
|
general is designated by the inspector general after October 1, |
|
2007, not later than the 90th day after the date of the designation |
|
shall transfer to the office of inspector general established under |
|
Chapter 422, Government Code, as added by this Act, all personnel, |
|
vacant full-time equivalent positions, and assets engaged in the |
|
performance of or the support of agency functions relating to the |
|
detection, investigation, and prevention of fraud, waste, and abuse |
|
in the implementation or administration of state or federally |
|
funded programs. |
|
SECTION 33. (a) The Health and Human Services Commission |
|
shall take all action necessary to provide for the orderly transfer |
|
of the assets and responsibilities of the commission's office of |
|
inspector general to the office of inspector general established |
|
under Chapter 422, Government Code, as added by this Act. |
|
(b) A rule or form adopted by the office of inspector |
|
general of the Health and Human Services Commission is a rule or |
|
form of the office of inspector general established under Chapter |
|
422, Government Code, as added by this Act, and remains in effect |
|
until changed by the office of inspector general. |
|
(c) A reference in law or administrative rule to the office |
|
of inspector general of the Health and Human Services Commission |
|
means the office of inspector general established under Chapter |
|
422, Government Code, as added by this Act. |
|
SECTION 34. If before implementing any provision of this |
|
Act a state agency determines that a waiver or authorization from a |
|
federal agency is necessary for implementation of that provision, |
|
the agency affected by the provision shall request the waiver or |
|
authorization and may delay implementing that provision until the |
|
waiver or authorization is granted. |
|
SECTION 35. This Act takes effect immediately if it |
|
receives a vote of two-thirds of all the members elected to each |
|
house, as provided by Section 39, Article III, Texas Constitution. |
|
If this Act does not receive the vote necessary for immediate |
|
effect, this Act takes effect September 1, 2007. |