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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of a state court to hear cases involving |
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insurance and Medicaid fraud. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 2, Government Code, is amended |
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by adding Chapter 23A to read as follows: |
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CHAPTER 23A. STATE COURT ON INSURANCE AND MEDICAID FRAUD |
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Sec. 23A.001. DEFINITION. In this chapter, "state court" |
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means the state court established under this chapter to hear |
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certain cases involving insurance and Medicaid fraud. |
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Sec. 23A.002. APPLICABILITY OF OTHER LAW. Except to the |
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extent of a conflict with this chapter, a law, other than Chapter 24 |
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and Subchapter D, Chapter 51, that applies to: |
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(1) a district court of Travis County, including a law |
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relating to how a case is appealed from the district court, applies |
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to the state court; and |
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(2) a district judge, including any law providing for |
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the qualifications, compensation, or retirement benefits of |
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district court judges, applies to a state court judge. |
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Sec. 23A.003. APPOINTMENTS TO STATE COURT BY GOVERNOR; |
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TERMS; VACANCIES. (a) The governor shall appoint with the advice |
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and consent of the senate eight judges and one presiding judge to |
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the state court. |
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(b) The judges serve staggered terms of two years, with four |
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judges' terms expiring January 1 of each odd-numbered year and five |
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judges' terms, including that of the presiding judge, expiring |
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January 1 of each even-numbered year. |
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(c) The governor shall fill any vacancy on the court for the |
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remainder of the unexpired term. |
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Sec. 23A.004. DISQUALIFICATION. The fact that at least two |
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members of the state court are disqualified to determine a case in |
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the court shall be certified to the governor. The governor |
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immediately shall commission the requisite number of persons who |
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are learned in the law to try and determine the case. |
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Sec. 23A.005. LOCATION; TERMS OF COURT. The state court may |
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sit at any time during the year at the seat of government or, at the |
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court's discretion, at any other location in this state for the |
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transaction of business, and each term of either court shall begin |
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and end with each calendar year. |
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Sec. 23A.006. ADJOURNMENT. (a) A state court may adjourn |
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from day to day or for the periods that the court considers proper. |
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(b) If a quorum of a state court is not present on any day of |
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the term, a judge of the court or the bailiff attending the court |
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may adjourn the court from time to time until a quorum is present, |
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but the court may not be finally adjourned for the term. |
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Sec. 23A.007. CIVIL JURISDICTION. The state court has |
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concurrent jurisdiction with the district courts in all actions, |
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proceedings, and remedies involving an allegation of: |
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(1) Medicaid fraud under Chapter 36, Human Resources |
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Code; or |
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(2) the commission of an unfair method of competition |
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or an unfair or deceptive act or practice in the business of |
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insurance under Chapter 541, Insurance Code, or Section 17.46, |
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Business & Commerce Code. |
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Sec. 23A.008. WRIT POWER. A judge of the state court may, |
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either in termtime or vacation, grant writs of mandamus, |
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injunction, sequestration, attachment, garnishment, certiorari, |
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and supersedeas and all other writs necessary to the enforcement of |
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the court's jurisdiction. |
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Sec. 23A.009. COURT SITTING IN PANELS. (a) Each state |
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court may sit in panels of not fewer than three judges for the |
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purpose of hearing cases. |
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(b) If more than one panel is used, the state court shall |
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establish rules to periodically rotate the judges among the panels. |
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Permanent civil panels without rotation may not be established. |
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(c) A majority of a panel constitutes a quorum for the |
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transaction of business, and the concurrence of a majority of a |
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panel is necessary for a decision. |
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Sec. 23A.010. COURT SITTING EN BANC. (a) The presiding |
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judge of the state court, under rules established by the court, |
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shall convene the court en banc for the transaction of all business |
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other than the hearing of cases and may convene the court en banc |
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for the purpose of hearing cases. |
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(b) When convened en banc, a majority of the membership of |
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the state court constitutes a quorum, and the concurrence of a |
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majority of the court sitting en banc is necessary for a decision. |
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Sec. 23A.011. SEAL. The clerk of the state court shall |
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obtain a seal for the court. The seal shall have a star with five |
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points and the words "The State Court of Texas on Insurance and |
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Medicaid Fraud" engraved on it. |
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Sec. 23A.012. APPEALS. An appeal from the state court is in |
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the same manner as an appeal from a district court of Travis County. |
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Sec. 23A.013. FUNDING; USE OF MONEY. (a) Existing |
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appropriations to the attorney general available for the purpose |
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shall be used to establish the state court. |
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(b) The legislature shall use money the state saves or |
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recovers as a result of a proceeding in the state court established |
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under this chapter to fund the court. |
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SECTION 2. Chapter 51, Government Code, is amended by |
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adding Subchapter B-1 to read as follows: |
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SUBCHAPTER B-1. CLERK OF STATE COURT |
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Sec. 51.151. DEFINITION. In this subchapter, "state court" |
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means the state court established under Chapter 23A. |
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Sec. 51.152. APPOINTMENT OF CLERK. The state court shall |
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appoint a clerk of the court who: |
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(1) shall give bond in the manner provided by this |
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subchapter; and |
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(2) may hold office for four years subject to removal |
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by the appointing court for good cause, entered in the minutes of |
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the court. |
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Sec. 51.153. OATH; BOND. The clerk of the state court must |
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sign the oath prescribed for officers of this state and must give a |
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bond in the amount of $5,000. The bond must be approved by the state |
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court and is subject to the same conditions as the bond required of |
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a district clerk. |
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Sec. 51.154. DEPUTY CLERK. (a) The state court, or the |
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clerk of the state court with the court's approval, may appoint a |
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stenographer employed by the court to act as a deputy clerk to |
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perform the clerk's duties during the absence, illness, or other |
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disability of the clerk. |
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(b) The stenographer appointed deputy clerk shall perform |
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the duties of the clerk in the name of the clerk and shall sign the |
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deputy clerk's own name as deputy clerk after signing the clerk's |
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name. |
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Sec. 51.155. REMOVAL OF CLERK. The state court may remove |
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the clerk for good cause, entered in the minutes of the court. |
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Sec. 51.156. DUTIES AND LIABILITIES. (a) The clerk of the |
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state court shall perform the duties for the state court that a |
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district clerk performs for a district court. |
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(b) The clerk of the state court is subject to the |
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liabilities prescribed for a district clerk. |
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SECTION 3. Effective January 1, 2014, Section 36.008, Human |
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Resources Code, is amended to read as follows: |
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Sec. 36.008. USE OF MONEY RECOVERED. The legislature, in |
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appropriating money recovered under this chapter, shall: |
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(1) use a percentage of the funds recovered to fund the |
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state court established under Chapter 23A, Government Code; and |
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(2) consider the requirements of the attorney general |
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and other affected state agencies in investigating Medicaid fraud |
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and enforcing this chapter. |
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SECTION 4. Effective January 1, 2014, Section 36.051(b), |
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Human Resources Code, is amended to read as follows: |
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(b) An action under this section shall be brought in the |
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state court established under Chapter 23A, Government Code, or in |
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the [a] district court of [Travis County or of] a county in which |
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any part of the unlawful act occurred, is occurring, or is about to |
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occur. |
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SECTION 5. Effective January 1, 2014, Section 36.052(d), |
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Human Resources Code, is amended to read as follows: |
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(d) An action under this section shall be brought in the |
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state court established under Chapter 23A, Government Code, or |
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[Travis County or] in a county in which any part of the unlawful act |
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occurred. |
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SECTION 6. Effective January 1, 2014, Section 36.053(e), |
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Human Resources Code, is amended to read as follows: |
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(e) If a person fails to file a statement as required by |
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Subsection (b)(1) or fails to submit to an examination as required |
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by Subsection (b)(2), the attorney general may file in the state |
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court established under Chapter 23A, Government Code, [a district
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court of Travis County] a petition for an order to compel the person |
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to file the statement or submit to the examination within a period |
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stated by court order. Failure to comply with an order entered |
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under this subsection is punishable as contempt. |
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SECTION 7. Effective January 1, 2014, Sections 36.054(f) |
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and (j), Human Resources Code, are amended to read as follows: |
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(f) A person may file a petition, stating good cause, to |
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extend the return date for the demand or to modify or set aside the |
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demand. A petition under this section shall be filed in the state |
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court established under Chapter 23A, Government Code, [a district
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court of Travis County] and must be filed before the earlier of: |
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(1) the return date specified in the demand; or |
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(2) the 20th day after the date the demand is served. |
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(j) If a person fails to comply with an investigative |
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demand, or if copying and reproduction of the documentary material |
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demanded cannot be satisfactorily accomplished and the person |
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refuses to surrender the documentary material, the attorney general |
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may file in the state court established under Chapter 23A, |
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Government Code, [a district court of Travis County] a petition for |
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an order to enforce the investigative demand. |
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SECTION 8. Effective January 1, 2014, Section 541.004, |
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Insurance Code, is amended to read as follows: |
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Sec. 541.004. VENUE FOR ACTIONS INVOLVING DEPARTMENT OR |
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COMMISSIONER. An action under this chapter in which the department |
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or commissioner is a party must be brought in the state court |
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established under Chapter 23A, Government Code [a district court in
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Travis County]. |
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SECTION 9. Effective January 1, 2014, Section 541.106(a), |
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Insurance Code, is amended to read as follows: |
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(a) If a person refuses to comply with a subpoena issued in |
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connection with a hearing under this subchapter or refuses to |
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testify with respect to a matter about which the person may be |
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lawfully interrogated, on application of the department, the state |
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court established under Chapter 23A, Government Code, or a |
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district court in [Travis County or in] the county in which the |
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person resides may order the person to comply with the subpoena or |
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testify. |
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SECTION 10. Effective January 1, 2014, Section 541.202, |
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Insurance Code, is amended to read as follows: |
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Sec. 541.202. VENUE FOR INJUNCTIVE ACTION. An action for an |
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injunction under this subchapter may be commenced in: |
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(1) the state court established under Chapter 23A, |
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Government Code; or |
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(2) a district court in: |
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(A) [(1)] the county in which the person against |
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whom the action is brought: |
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(i) [(A)] resides; |
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(ii) [(B)] has the person's principal place |
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of business; or |
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(iii) [(C)] is engaging in business; or |
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(B) [(2)] the county in which the transaction or |
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a substantial portion of the transaction occurred[; or
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[(3) Travis County]. |
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SECTION 11. Effective January 1, 2014, Section 541.303(b), |
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Insurance Code, is amended to read as follows: |
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(b) Venue for the action is in the state court established |
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under Chapter 23A, Government Code [a district court in Travis
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County]. |
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SECTION 12. Effective January 1, 2014, Section 541.405(a), |
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Insurance Code, is amended to read as follows: |
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(a) A person aggrieved by the denial of a petition under |
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Section 541.402 or the adoption, amendment, or repeal of or failure |
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to adopt a rule under this subchapter may file a petition in the |
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state court established under Chapter 23A, Government Code, [a
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district court in Travis County] for: |
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(1) a declaratory judgment on the validity or |
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applicability of an adopted, amended, or repealed rule; or |
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(2) review of the denial of a petition under Section |
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541.402. |
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SECTION 13. Not later than December 1, 2013, the Texas |
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Supreme Court shall adopt rules the court determines necessary to |
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establish the state court on insurance and Medicaid fraud |
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established under Chapter 23A, Government Code, as added by this |
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Act. |
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SECTION 14. Not later than January 1, 2014, the governor |
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shall appoint the judges and presiding judge of the state court on |
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insurance and Medicaid fraud established under Chapter 23A, |
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Government Code, as added by this Act. To enable the staggering of |
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terms as required by Section 23A.003(b), Government Code, the |
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governor shall appoint four judges whose terms expire on January 1 |
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of the next odd-numbered year and five judges, including the |
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presiding judge, whose terms expire on January 1 of the next |
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even-numbered year. |
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SECTION 15. The changes in law made by this Act apply only |
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to a case filed on or after January 1, 2014. A case filed before |
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January 1, 2014, is governed by the law in effect on the date the |
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case was filed, and the former law is continued in effect for that |
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purpose. |
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SECTION 16. Except as otherwise provided by this Act, this |
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Act takes effect September 1, 2013. |