89R8739 LRM-D
 
  By: Hagenbuch S.B. No. 1640
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to access to criminal history record information for
  purposes of the Medicaid program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 411.1143, Government Code, as effective
  April 1, 2025, is amended by amending Subsection (a-1) and adding
  Subsection (e) to read as follows:
         (a-1)  Criminal history record information the Health and
  Human Services Commission or the office of inspector general is
  authorized to obtain under Subsection (a) includes criminal history
  record information relating to:
               (1)  a person that:
                     (A)  has a direct or indirect ownership interest,
  or a combination of direct and indirect ownership interests, that
  equals five percent or more in the provider or person applying to
  enroll as a provider;
                     (B)  owns an interest of five percent or more in a
  mortgage, deed of trust, promissory note, or other obligation
  secured by the provider or person applying to enroll as a provider
  if that interest equals at least five percent of the value of the
  property or other assets of the provider or person applying to
  enroll as a provider;
                     (C)  is an officer or director of the provider or
  person applying to enroll as a provider if that provider or
  applicant is organized as a corporation; or
                     (D)  is a partner in the provider or person
  applying to enroll as a provider if that provider or applicant is
  organized as a partnership [a person with a direct or indirect
  ownership or control interest, as defined by 42 C.F.R. Section
  455.101, in a provider of five percent or more]; and
               (2)  a managing employee of the provider or person
  applying to enroll as a provider [a person whose information is
  required to be disclosed in accordance with 42 C.F.R. Part 1001].
         (e)  In this section:
               (1)  "Managing employee," with respect to a provider or
  person applying to enroll as a provider, means an individual,
  including a general manager, business manager, administrator, or
  director, who:
                     (A)  exercises operational or managerial control
  over all or part of the provider or applicant; or
                     (B)  directly or indirectly conducts the daily
  operations of all or part of the provider or applicant.
               (2)  "Medicaid agency" means the single state agency
  administering or supervising the administration of the state
  Medicaid plan.
               (3)  "Ownership interest," with respect to a provider
  or person applying to enroll as a provider, means having equity in
  the provider's or applicant's capital, stock, or profits.
               (4)  "Provider" means:
                     (A)  an individual or entity that provides
  Medicaid services under an agreement with the Medicaid agency; or
                     (B)  an individual or entity that engages in the
  delivery of health care services through the Medicaid managed care
  program and that is authorized by this state to deliver those
  services.
         SECTION 2.  This Act takes effect April 1, 2025, if this Act
  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 effect on that
  date, this Act takes effect September 1, 2025.