Honorable Pete Gallego, Chair, House Committee on Criminal Jurisprudence
FROM:
John S. O'Brien, Director, Legislative Budget Board
IN RE:
HB4385 by Vaught (Relating to the prosecution and punishment of fraud upon certain practitioners; creating an offense and providing criminal penalties.), As Introduced
The bill would amend the Penal Code as it relates to the prosecution and punishment of fraud upon certain practitioners. Under the provisions of the bill a person who is a fiduciary or who has a contractual duty to settle a claim may not misrepresent material facts, use methodologies that misstate practitioners’ fees or use a database in calculating claims that the person knew or should have known contained inaccuracies. An offense committed as defined by the bill would be punishable at all levels depending on the amount of the claim paid in violation of the amended section.
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 list of offenses 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 bill are currently being sentenced for other, possibly lesser felony, offenses.