The bill would amend amend the Insurance and Health and Safety Codes as they relate to the regulation of discount health care programs.  Under the provisions of the bill, a person who willfully operates as, or aids and abets another operating as, a discount health care program operator in violation of Section   7001.101, Insurance Code commits insurance fraud and is subject to Chapter 35, Penal Code and a person that collects fees for purported membership in a discount health care program, but purposefully fails to provide the promised benefits commits an offense of theft and is subject to Chapter 31, Penal Code.  Under current statute both insurance fraud and theft are punishable at all levels based on the amount of the claim, value, or service provided. 

A Class C Misdemeanor is punishable by a fine not to exceed $500.  A Class B Misdemeanor is punishable by confinement in a county jail for any term of not more than 180 days, or, in addition to confinement, a fine not to exceed $2,000.  A Class A Misdemeanor is punishable by confinement in a county jail for any term of not more than one year, or, in addition to confinement, a fine not to exceed $4,000.  A state jail felony is punishable by confinement in a state jail for any term of not more than two years or less than 180 days, or, in addition to confinement, a fine not to exceed $10,000.  A felony of the third degree is punishable by imprisonment in the institutional division for any term of not more than 10 years or less than 2 years, or, in addition to confinement, a fine not to exceed $10,000.  A felony of the second degree is punishable by imprisonment in the institutional division for any term of not more than 20 years or less than 2 years, or, in addition to confinement, a fine not to exceed $10,000.  A felony of the first degree is punishable by imprisonment in the institutional division for any term of not more than 99 years or less than 5 years, or, in addition to confinement, a fine not to exceed $10,000.

Expanding the types of behavior punishable by imprisonment is expected to result in increased demands upon the correctional resources of counties or of the State due to longer terms of probation, or, longer terms of confinement in county jails or prison. It is expected individuals who would be affected by the provisions of the bill are currently being sentenced for other offenses.