Bill Text: TX HB2448 | 2011-2012 | 82nd Legislature | Comm Sub

---

Bill Title: Relating to the creation of offices of inspectors general at the Health and Human Services Commission, Texas Youth Commission, Texas Department of Criminal Justice, Texas Department of Transportation, and Texas Education Agency; providing penalties.

Spectrum: Slight Partisan Bill (Republican 3-1)

Status: (Introduced - Dead) 2011-05-04 - Committee report sent to Calendars [HB2448 Detail]

Download: Texas-2011-HB2448-Comm_Sub.html

---

82R23192 EAH-D
By: Harper-Brown, Callegari, Lucio III H.B. No. 2448
Substitute the following for H.B. No. 2448:
By: Callegari C.S.H.B. No. 2448

A BILL TO BE ENTITLED
AN ACT
relating to the creation of offices of inspectors general at the
Health and Human Services Commission, Texas Youth Commission, Texas
Department of Criminal Justice, Texas Department of
Transportation, and Texas Education Agency; providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 4, Government Code, is amended
by adding Chapter 422 to read as follows:
CHAPTER 422. OFFICES OF INSPECTORS GENERAL
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 422.001. SHORT TITLE. This chapter may be cited as the
Texas Inspector General Act.
Sec. 422.002. PURPOSE. The purpose of this chapter is to
establish guidelines for the offices of inspectors general at
certain state agencies.
Sec. 422.003. DEFINITIONS. In this chapter:
(1) "Agency" means a state agency subject to this
chapter under Section 422.004.
(2) "Fraud" has the meaning assigned by Section
531.1011.
(3) "Inspector general" means the person appointed
under this chapter to serve as inspector general for an agency.
(4) "Office" means the office of inspector general for
an agency.
(5) "Provider" has the meaning assigned by Section
531.1011.
(6) "Review":
(A) includes an inspection, investigation,
audit, or similar activity; and
(B) does not include a criminal or administrative
investigation conducted by the office established for the Texas
Department of Criminal Justice.
(7) "State funds" or "state money" includes federal
funds or money received and appropriated by the state or for which
the state has oversight responsibility.
Sec. 422.004. APPLICABILITY. (a) This chapter applies
only to the:
(1) Health and Human Services Commission;
(2) Texas Youth Commission;
(3) Texas Department of Transportation;
(4) Texas Department of Criminal Justice; and
(5) Texas Education Agency.
(b) A state agency may not establish an office of inspector
general without specific legislative authorization.
Sec. 422.005. REFERENCE IN OTHER LAW. Notwithstanding any
other provision of law, a reference in law or rule to an agency's
office of inspector general means the office of inspector general
established under this chapter for that agency.
[Sections 422.006-422.050 reserved for expansion]
SUBCHAPTER B. OFFICE OF INSPECTOR GENERAL
Sec. 422.051. ESTABLISHMENT OF OFFICE. (a) Each agency
subject to this chapter shall establish an office of inspector
general in the agency.
(b) The office is governed by the inspector general for the
agency.
(c) The inspector general shall:
(1) manage daily operations of the office;
(2) supervise office staff;
(3) create office operating procedures, personnel
policies, and employment policies;
(4) allocate resources in the office;
(5) oversee office information resources systems;
(6) determine the location of office facilities; and
(7) coordinate office activities with the activities
of other state agencies, including other health and human services
agencies.
(d) The inspector general is responsible for office
procurement and contracts.
Sec. 422.052. INDEPENDENCE OF OFFICE. Except as otherwise
provided by this chapter, the office and inspector general operate
independently of the agency.
Sec. 422.053. ADMINISTRATIVE ATTACHMENT. The office is
administratively attached to the agency. The agency shall provide
to the office administrative support services.
Sec. 422.054. SERVICE LEVEL AGREEMENT. (a) The agency and
the office shall enter into a service level agreement that
establishes the performance standards and deliverables with regard
to administrative support by the agency.
(b) The service level agreement must be reviewed at least
annually to ensure that services and deliverables are provided in
accordance with the agreement.
Sec. 422.055. APPROPRIATIONS AND BUDGET. (a) The
inspector general shall submit a budget for the office in
accordance with the reporting requirements of the General
Appropriations Act.
(b) The inspector general shall submit to the Legislative
Budget Board and the agency a legislative appropriations request
and an operating budget in accordance with the service level
agreement entered into under Section 422.054 and applicable law.
(c) If required by or under law, the agency shall submit the
operating budget to the legislature. The budget is not subject to
review, alteration, or modification by the agency or the governing
body or governing officer of the agency before submission to the
legislature.
Sec. 422.056. DUTIES OF AGENCY. (a) The agency shall:
(1) provide administrative assistance to the office;
and
(2) coordinate administrative responsibilities with
the office to avoid unnecessary duplication of duties.
(b) The agency may not take an action that affects or
relates to the validity, status, or terms of an interagency
agreement or a contract to which the office is a party without the
office's approval.
[Sections 422.057-422.100 reserved for expansion]
SUBCHAPTER C. INSPECTOR GENERAL AND PERSONNEL
Sec. 422.101. APPOINTMENT; STATE OFFICER. (a) The
governing body or, at an agency that is not governed by a
multimember governing body, the governor with the advice and
consent of the senate shall appoint an inspector general to serve as
director of the office.
(b) The appointment shall be made without regard to
political affiliation, race, color, disability, sex, religion,
age, or national origin.
(c) In making the appointment, the governing body or the
governor shall consider the person's integrity, education,
training, knowledge of law, experience in the enforcement of law,
executive ability, capability for strong leadership, and
demonstrated ability in accounting, auditing, financial analysis,
management analysis, public administration, investigation,
criminal justice administration, or other closely related fields.
(d) The inspector general is a state officer.
Sec. 422.102. TERM. The inspector general serves a
two-year term that expires on February 1 of each odd-numbered year.
Sec. 422.103. ELIGIBILITY. (a) To be eligible for
appointment as inspector general, a person must:
(1) have unquestioned integrity and moral character;
(2) hold a bachelor's degree;
(3) have either:
(A) at least five years of experience as a
certified public accountant, certified internal auditor, or
certified inspector general; or
(B) a peace officer certification issued by the
Commission on Law Enforcement Officer Standards and Education that
the person has held for at least five years; and
(4) have either:
(A) at least five years of experience in a
professional or administrative position that included as a major
duty fiscal management, the review of fiscal management, or the
auditing or review of operational efficiency or program
performance; or
(B) experience carrying out law enforcement
duties to prevent fraud, waste, and abuse.
(b) The person appointed as inspector general must obtain
certification as a certified inspector general within the time
required by rules adopted by the governing body or governing
officer of the agency, as applicable.
(c) A person formerly employed by an agency as an executive
or manager may not serve as inspector general for that agency before
the fifth anniversary of the date of the termination of that
person's employment by the agency.
(d) A person is not eligible for appointment as inspector
general if the person or the person's spouse:
(1) is an officer or paid consultant of a business
entity or other organization that holds a license, certificate of
authority, or other authorization from the agency or that receives
funds from the agency;
(2) owns or controls, directly or indirectly, more
than a 10 percent interest in a business entity or other
organization receiving funds from the agency; or
(3) uses or receives a substantial amount of tangible
goods or funds from the agency, other than compensation or
reimbursement authorized by law.
(e) A person is not eligible to serve as inspector general
if the person or the person's spouse is required to register as a
lobbyist under Chapter 305 because of the person's or spouse's
activities for compensation related to the operation of the agency.
Sec. 422.104. CONFLICT OF INTEREST. (a) The inspector
general may not serve as an ex officio member on the governing body
of a governmental entity.
(b) The inspector general may not have a financial interest
in the transactions of the office, the agency, or a contractor or
provider of the agency or office.
(c) The inspector general and office staff may not
participate in partisan political activities related to the work of
the inspector general's office. The inspector general may select
the most efficient personnel available for each position in the
inspector general's office. It is against the public policy of this
state for an officer or employee of this state to recommend a person
to serve on the staff of the inspector general.
Sec. 422.105. PEACE OFFICERS. (a) The office may employ
and commission peace officers to assist the inspector general in
carrying out the duties of the office relating to detection,
investigation, and prevention of fraud, waste, and abuse in agency
programs or in programs receiving state or federal funds that are
implemented, administered, or overseen by or for a state agency.
(b) A commissioned peace officer or otherwise designated
law enforcement officer employed by the office, except for an
officer employed by the office established for the Texas Department
of Criminal Justice, is not entitled to supplemental benefits from
the law enforcement and custodial officer supplemental retirement
fund unless the officer transfers from a position, without a break
in service, that qualifies for supplemental retirement benefits
from the fund.
Sec. 422.106. EXPERTS. Subject to the availability of
funds, the inspector general may contract with certified public
accountants, qualified management consultants, or other
professional experts as necessary to independently perform the
functions of the office.
Sec. 422.107. EMPLOYEES; TRAINING. (a) The inspector
general may employ personnel as necessary to implement the duties
of the office.
(b) The inspector general shall train office personnel to
pursue, efficiently and as necessary, fraud, waste, and abuse cases
in state agency programs or other state or federally funded
programs implemented, administered, or overseen by or for the
agency.
(c) The inspector general for the Texas Department of
Criminal Justice shall train personnel to efficiently and
effectively perform law enforcement duties.
Sec. 422.108. ASSISTANCE BY AGENCY EMPLOYEES. (a) The
inspector general may require employees of a state agency to
provide assistance to the office in connection with the office's
duties relating to conducting reviews of fraud, waste, and abuse in
the provision of services for agency programs or state or federally
funded programs implemented, administered, or overseen by or for
the agency.
(b) The inspector general for the Health and Human Services
Commission may also require employees of any health and human
services agency to provide assistance under Subsection (a).
[Sections 422.109-422.150 reserved for expansion]
SUBCHAPTER D. GENERAL POWERS AND DUTIES
Sec. 422.151. GENERAL RESPONSIBILITIES. (a) The office is
responsible for:
(1) conducting reviews of fraud, waste, and abuse in
the provision or funding of services by or for the agency or under a
program implemented, administered, or overseen by or for the
agency;
(2) the enforcement of state law and the protection of
the public relating to the provision of those services; and
(3) the prevention and detection of crime relating to
the provision of those services.
(b) In addition to the responsibilities under Subsection
(a), the office established for the Texas Department of Criminal
Justice is responsible for the investigation of criminal cases and
administrative violations.
Sec. 422.152. RULEMAKING BY INSPECTOR GENERAL. (a)
Notwithstanding Section 531.0055(e) and any other law, the
inspector general shall adopt the rules necessary to administer the
functions of the office, including rules to address the imposition
of sanctions and penalties for violations and due process
requirements for imposing sanctions and penalties.
(b) A rule, standard, or form of the agency that is
necessary to accomplish the duties of the office is considered to
also be a rule, standard, or form of the office and remains in
effect as a rule, standard, or form of the office until changed by
the inspector general.
(c) The office shall submit proposed rules and adopted rules
to the agency for publication. The agency shall promptly provide
for the publication of the proposed or adopted rules in accordance
with law. The agency, including the governing body or governing
officer of the agency, may not amend or modify a rule submitted by
the office.
(d) The rules must include standards for the office that
emphasize:
(1) coordinating reviews and investigative efforts to
aggressively recover money;
(2) allocating resources to cases that have the
strongest supportive evidence and the greatest potential for
recovery of money; and
(3) maximizing opportunities for referral of cases to
the office of attorney general.
(e) In addition to the standards under Subsection (d), the
rules of the office established for the Texas Department of
Criminal Justice must include standards for the office that
emphasize the investigation of criminal cases and administrative
violations.
Sec. 422.153. PUBLIC INTEREST INFORMATION AND COMPLAINTS.
(a) The office shall develop and implement policies that provide
the public a reasonable opportunity to appear before the office and
to speak on any issue under the office's jurisdiction.
(b) The office shall prepare information of public interest
describing the functions of the office and the office's procedures
by which complaints are filed with and resolved by the office. The
office shall make the information available to the public and
appropriate state agencies.
(c) The office shall keep an information file about each
complaint filed with the office relating to a state agency or entity
receiving state or federal money and falling under the
investigatory jurisdiction of the office.
[Sections 422.154-422.200 reserved for expansion]
SUBCHAPTER E. REVIEWS, INVESTIGATIONS, AND AUDITS
Sec. 422.201. REVIEW, INVESTIGATION, AND AUDIT AUTHORITY.
(a) The inspector general may review any activity or operation of
the agency, a provider, if applicable, or a person in this state
that is related to the investigation, detection, or prevention of
fraud, waste, abuse, or employee misconduct in an agency program or
state or federally funded program implemented, administered, or
overseen by or for the agency. 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 office shall conduct reviews to protect the public
and detect and prevent fraud, waste, and abuse in the provision or
funding of services or programs.
(c) The office shall conduct internal affairs
investigations in instances of suspected fraud, waste, and abuse
and in instances of suspected misconduct by employees, contractors,
subcontractors, and vendors.
(d) The office established for the Texas Department of
Criminal Justice shall conduct criminal and administrative
investigations involving suspected misconduct by employees,
contractors, subcontractors, vendors, and offenders.
(e) A state agency or the governing body or governing
officer of a state agency may not impair or prohibit the inspector
general from initiating or completing a review, or attempt to
influence the inspector general in conducting a review.
(f) The inspector general may 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 an agency or state or federally funded
program implemented, administered, or overseen by or for the
agency.
Sec. 422.202. INITIATION OF REVIEW. The inspector general
may initiate a review:
(1) on the inspector general's own initiative;
(2) at the request of the agency or the governing body
or governing officer of the agency; or
(3) based on a complaint from any source concerning a
matter described by Section 422.201.
Sec. 422.203. ACCESS TO INFORMATION. To further a review
conducted by the office, the inspector general is entitled to
access all books, records, accounts, documents, reports, vouchers,
databases, systems, or other information, including confidential
information, electronic data, and internal records relevant to the
functions of the office that are maintained by or for a person,
state agency, or provider, if applicable, in connection with an
agency or a state or federally funded program implemented,
administered, or overseen by or for the agency.
Sec. 422.204. COOPERATION REQUIRED. To further a review
conducted by the inspector general's office, the inspector general
is entitled to full and unrestricted access to all offices, limited
access or restricted areas, employees, equipment, and computers,
including areas, equipment, and computers that contain
confidential information and internal records, relevant to the
functions of the office that are maintained by or for a person,
agency, or provider, if applicable, in connection with an agency or
a state or federally funded program implemented, administered, or
overseen by or for the agency.
Sec. 422.205. 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. 422.206. INTERNAL AUDITOR. (a) In this section,
"internal auditor" means a person appointed under Section 2102.006.
(b) The internal auditor for the 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. 422.207. 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 inspectors general for the Texas Department of
Criminal Justice and the Texas Youth Commission shall refer a
criminal or delinquent conduct case to the appropriate prosecuting
attorney or the special prosecution unit under Subchapter E,
Chapter 41.
(d) The inspector general may enter into a memorandum of
understanding with a law enforcement or prosecutorial agency,
including the office of the attorney general, to assist in
conducting a review under this subchapter.
Sec. 422.208. 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 422.203 or subject to Section 422.254.
(d) Any information obtained or provided by the state
auditor under this section is confidential and not subject to
disclosure under Chapter 552.
Sec. 422.209. AUTHORITY OF STATE AUDITOR AND SUNSET
ADVISORY COMMISSION NOT IMPAIRED. (a) This chapter or other law
related to the operation of an inspector general does not take
precedence over the authority of the state auditor to conduct an
audit under Chapter 321 or other law.
(b) This chapter or other law related to the operation of an
inspector general does not take precedence over the authority of
the Sunset Advisory Commission or other legislative bodies to
review an agency under other law.
Sec. 422.210. PREVENTION. (a) The inspector general may
recommend to the 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; 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, or abuse to
employees of a state agency. The training or education provided
must be approved by the agency director.
[Sections 422.211-422.250 reserved for expansion]
SUBCHAPTER F. REPORTS
Sec. 422.251. PERIODIC REPORTING TO STATE AUDITOR AND
AGENCY REQUIRED. The inspector general shall timely inform the
state auditor and the agency director of the initiation of a review
of an agency program and the ongoing status of each review.
Sec. 422.252. REPORTING OFFICE FINDINGS. The inspector
general shall report the findings of the office for any review
conducted under Subchapter E to:
(1) the governing body or governing officer of the
agency, as applicable;
(2) the governor;
(3) the lieutenant governor;
(4) the speaker of the house of representatives;
(5) the state auditor's office; and
(6) appropriate law enforcement and prosecutorial
agencies, including the office of the attorney general, if the
findings suggest the probability of criminal conduct.
Sec. 422.253. FLAGRANT VIOLATIONS; IMMEDIATE REPORT. The
inspector general shall immediately report to the governing body or
governing officer of the agency, as applicable, the governor's
general counsel, and the state auditor a problem that the inspector
general determines is particularly serious or flagrant and that
relates to the administration of a program, operation of a state
agency, or interference with an inspector general review.
Sec. 422.254. INFORMATION CONFIDENTIAL. (a) Except as
provided by this section and Sections 422.251, 422.252, 422.255,
422.256, 531.103, and 531.1031, all information and material
compiled or maintained by the inspector general during a review
under this chapter 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 agency, or the office or its agents
involved in the review related to that information or material.
(b) As the inspector general determines appropriate based
on evidence sufficient to support an allegation, information
relating to a review may be disclosed to:
(1) a law enforcement agency;
(2) a district or county attorney with jurisdiction;
(3) the attorney general's office;
(4) the state auditor's office; or
(5) the 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. 422.255. DRAFT OF FINAL REVIEW REPORT; AGENCY
RESPONSE. (a) Except in cases in which the office has determined
that fraud, waste, or abuse exists, the office shall provide a draft
of the final review report of any review of the operations of a
state agency to the state agency director before publishing the
office's final review report.
(b) The state agency director 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 state agency director. 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 state agency director 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 state agency's
response in the office's final report.
Sec. 422.256. FINAL REVIEW REPORTS; AGENCY RESPONSE. (a)
The inspector general shall prepare a final report for each review
conducted under this chapter. 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 or
substantial waste was found; and
(3) a description of any findings of wrongdoing or
substantial waste or, if no wrongdoing or substantial waste was
found, a statement indicating that finding.
(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 state agency shall file a
response that includes:
(1) an implementation plan and timeline for
implementing corrective measures; or
(2) the state agency's rationale for declining to
implement corrective measures for the identified deficiencies or
inefficiencies or the office's recommended corrective measures, as
applicable.
(e) Unless otherwise prohibited by this chapter or other
law, the inspector general shall deliver a copy of each final report
to:
(1) the agency director of the subject state agency;
(2) the governing body or governing officer of the
state agency;
(3) any appropriate advisory council;
(4) the governor;
(5) the lieutenant governor;
(6) the speaker of the house of representatives;
(7) any appropriate law enforcement and prosecutorial
agencies;
(8) the state auditor; and
(9) any appropriate licensing or certification
agencies.
Sec. 422.257. 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 office of
the attorney general, in recovering costs incurred under this
chapter 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.
(c) In a criminal prosecution to which this chapter applies,
the attorney representing the state shall request that the court
require restitution as a condition of a convicted person's
community supervision or parole.
[Sections 422.258-422.300 reserved for expansion]
SUBCHAPTER G. PENALTIES
Sec. 422.301. 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 an agency:
(1) the 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 chapter, applicable laws
governing the imposition of a penalty by the agency, and any other
applicable law.
SECTION 2. Section 493.019, Government Code, is amended to
read as follows:
Sec. 493.019. ENFORCEMENT OFFICERS. In accordance with
Section 422.105, the [The] inspector general appointed under
Chapter 422 may appoint employees who are certified by the
Commission on Law Enforcement Officer Standards and Education as
qualified to be peace officers to serve under the direction of the
inspector general and assist the inspector general in performing
the enforcement duties of the department.
SECTION 3. Section 493.028(b), Government Code, is amended
to read as follows:
(b) The inspector general of the department appointed under
Chapter 422 shall on a quarterly basis prepare and deliver to the
board of directors of the special prosecution unit a report
concerning any alleged criminal offense concerning the department
and described by Article 104.003(a), Code of Criminal Procedure,
that occurred during the preceding calendar quarter.
SECTION 4. Section 501.174, Government Code, is amended to
read as follows:
Sec. 501.174. DEPARTMENT TO ADOPT POLICY. The department
shall adopt a policy providing for:
(1) a designated administrator at each correctional
facility to post information throughout the facility describing how
an inmate may confidentially contact the ombudsperson regarding a
sexual assault;
(2) an inmate to write a confidential letter to the
ombudsperson regarding a sexual assault;
(3) employees at correctional facilities, on
notification of the occurrence of a sexual assault, to immediately:
(A) contact the ombudsperson and the office of
the inspector general; and
(B) ensure that the alleged victim is safe;
(4) the office of the inspector general established
under Chapter 422, at the time the office is notified of the sexual
assault, to arrange for a medical examination of the alleged victim
to be conducted in accordance with Article 56.06, Code of Criminal
Procedure, or, if an appropriate employee of the office of the
inspector general is not available at the time the office is
notified of the sexual assault, a qualified employee at the
correctional facility to conduct a medical examination of the
alleged victim in accordance with Article 56.06, Code of Criminal
Procedure;
(5) a grievance proceeding under Section 501.008 based
on an alleged sexual assault to be exempt from any deadline
applicable to grievances initiated under that section; and
(6) each correctional facility to collect statistics
on all alleged sexual assaults against inmates confined in the
facility and to report the statistics to the ombudsperson.
SECTION 5. Section 501.176(b), Government Code, is amended
to read as follows:
(b) The report must include public information regarding:
(1) each investigation and monitoring activity
relating to sexual assault completed during the fiscal year by the
ombudsperson and the inspector general appointed under Chapter 422;
and
(2) statistics collected by the ombudsperson
regarding allegations of sexual assault.
SECTION 6. Section 501.177, Government Code, is amended to
read as follows:
Sec. 501.177. STATE AUDITOR AUDITS, INVESTIGATIONS, AND
ACCESS TO INFORMATION NOT IMPAIRED. This subchapter or other law
related to the operation of the ombudsperson or related to the
office of the inspector general established under Chapter 422 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.
SECTION 7. Section 501.178, Government Code, is amended to
read as follows:
Sec. 501.178. AUTHORITY OF STATE AUDITOR TO CONDUCT TIMELY
AUDITS NOT IMPAIRED. This subchapter or other law related to the
operation of the ombudsperson or of the office of the inspector
general established under Chapter 422 does not take precedence over
the authority of the state auditor to conduct an audit under Chapter
321 or other law.
SECTION 8. 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 for the
commission.
SECTION 9. 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 10. Sections 531.101(a) and (b), Government Code,
are amended to read as follows:
(a) The office of inspector general [commission] may grant
an award to an individual who reports activity that constitutes
fraud or abuse of funds in the state Medicaid program or reports
overcharges in the program if the office [commission] determines
that the disclosure results in the recovery of an administrative
penalty imposed under Section 32.039, Human Resources Code. The
office [commission] may not grant an award to an individual in
connection with a report if the office [commission] or attorney
general had independent knowledge of the activity reported by the
individual.
(b) The office of inspector general [commission] shall
determine the amount of an award. The award may not exceed five
percent of the amount of the administrative penalty imposed under
Section 32.039, Human Resources Code, that resulted from the
individual's disclosure. In determining the amount of the award,
the office [commission] shall consider how important the disclosure
is in ensuring the fiscal integrity of the program. The office
[commission] may also consider whether the individual participated
in the fraud, abuse, or overcharge.
SECTION 11. Section 531.102, Government Code, is amended to
read as follows:
Sec. 531.102. OFFICE OF INSPECTOR GENERAL: CLAIMS CRITERIA
FOR INVESTIGATION; REFERRAL TO FRAUD CONTROL UNIT; HOLD ON PAYMENT.
(a) [The commission, through the commission's office of inspector
general, is responsible for the investigation of fraud and abuse in
the provision of health and human services and the enforcement of
state law relating to the provision of those services. The
commission may obtain any information or technology necessary to
enable the office to meet its responsibilities under this
subchapter or other law.
[(a-1) The governor shall appoint an inspector general to
serve as director of the office. The inspector general serves a
one-year term that expires on February 1.
[(b) The commission, in consultation with the inspector
general, shall set clear objectives, priorities, and performance
standards for the office that emphasize:
[(1) coordinating investigative efforts to
aggressively recover money;
[(2) allocating resources to cases that have the
strongest supportive evidence and the greatest potential for
recovery of money; and
[(3) maximizing opportunities for referral of cases to
the office of the attorney general in accordance with Section
531.103.
[(c) The commission shall train office staff to enable the
staff to pursue priority Medicaid and other health and human
services fraud and abuse cases as necessary.
[(d) The commission may require employees of health and
human services agencies to provide assistance to the office in
connection with the office's duties relating to the investigation
of fraud and abuse in the provision of health and human services.
The office is entitled to access to any information maintained by a
health and human services agency, including internal records,
relevant to the functions of the office.
[(e)] The commission, in consultation with the inspector
general, by rule shall set specific claims criteria that, when met,
require the office of inspector general to begin an investigation.
(b) [(f)(1)] If the office of inspector general
[commission] receives a complaint of Medicaid fraud or abuse from
any source, the office must conduct an integrity review to
determine whether there is sufficient basis to warrant a full
investigation. An integrity review must begin not later than the
30th day after the date the office [commission] receives a
complaint or has reason to believe that fraud or abuse has occurred.
An integrity review shall be completed not later than the 90th day
after it began.
(c) [(2)] If the findings of an integrity review give the
office of inspector general reason to believe that an incident of
fraud or abuse involving possible criminal conduct has occurred in
the 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) [(A)] if a provider is suspected of fraud or abuse
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, which investigation may lead to the
imposition of appropriate administrative or civil sanctions; or
(2) [(B)] if there is reason to believe that a
recipient has defrauded the Medicaid program, the office may
conduct a full investigation of the suspected fraud.
(d) [(g)(1)] Whenever the office of inspector general
learns or has reason to suspect that a provider's records 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. However, such criminal
referral does not preclude the office from continuing its
investigation of the provider, which investigation may lead to the
imposition of appropriate administrative or civil sanctions.
(e) [(2)] In addition to other instances authorized under
state or federal law, the office of inspector general shall impose
without prior notice a hold on payment of claims for reimbursement
submitted by a provider to compel production of records or when
requested by the state's Medicaid fraud control unit, as
applicable. The office must notify the provider of the hold on
payment not later than the fifth working day after the date the
payment hold is imposed.
(f) [(3)] On timely written request by a provider subject to
a hold on payment under Subsection (e) [Subdivision (2)], other
than a hold requested by the state's Medicaid fraud control unit,
the office of inspector general shall file a request with the State
Office of Administrative Hearings or the hearings division of the
Health and Human Services Commission for an expedited
administrative hearing regarding the hold. The provider must
request an expedited hearing under this subsection [subdivision]
not later than the 10th day after the date the provider receives
notice from the office under Subsection (e) [Subdivision (2)].
(g) [(4)] The inspector general [commission] shall adopt
rules that allow a provider subject to a hold on payment under
Subsection (e) [Subdivision (2)], 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 of inspector
general in the notice provided under that subsection [subdivision].
A provider must seek an informal resolution under this subsection
[subdivision] not later than the deadline prescribed by Subsection
(f) [Subdivision (3)]. A provider's decision to seek an informal
resolution under this subsection [subdivision] does not extend the
time by which the provider must request an expedited administrative
hearing under Subsection (f) [Subdivision (3)]. However, a hearing
initiated under Subsection (f) [Subdivision (3)] shall be stayed at
the office's request until the informal resolution process is
completed.
(h) [(5)] The office of inspector general shall, in
consultation with the state's Medicaid fraud control unit,
establish guidelines under which holds on payment, [or] program
exclusions, administrative actions, or other sanctions:
(1) [(A)] may permissively be imposed on or taken
against a provider; or
(2) [(B)] shall automatically be imposed on or taken
against a provider.
(i) [(h)] In addition to performing functions and duties
otherwise provided by law, the office of inspector general may:
(1) take administrative action, impose administrative
sanctions, and assess administrative penalties otherwise
authorized by law on behalf of the commission or a health and human
services agency;
(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 or abuse;
(3) provide for coordination between the office and
special investigative units formed by managed care organizations
under Section 531.113 or entities with which managed care
organizations contract under that section;
(4) audit the use and effectiveness of state or
federal funds, including contract and grant funds, administered by
a person or state agency receiving the funds from a health and human
services agency;
(5) conduct investigations relating to the funds
described by Subdivision (4); [and]
(6) recommend policies promoting economical and
efficient administration of the funds described by Subdivision (4)
and the prevention and detection of fraud and abuse in
administration of those funds;
(7) request the attorney general to represent the
office of inspector general in a legal proceeding that arises from a
review conducted by the office and coordinate the activities of the
office with the office of the attorney general during the legal
proceeding;
(8) settle for the commission a case filed in response
to a review conducted by the office; and
(9) recover overpayments, assessments, and
liabilities in a settlement regardless of the origin of the
overpayment, assessment, or liability.
(j) [(i)] Notwithstanding any other provision of law, a
reference in law or rule to the commission's office of
investigations and enforcement means the office of inspector
general established under Chapter 422 [this section].
[(j) The office shall prepare a final report on each audit
or investigation conducted under this section. The final report
must include:
[(1) a summary of the activities performed by the
office in conducting the audit or investigation;
[(2) a statement regarding whether the audit or
investigation resulted in a finding of any wrongdoing; and
[(3) a description of any findings of wrongdoing.]
(k) A final report on an audit or investigation is subject
to required disclosure under Chapter 552. All information and
materials compiled during the audit or investigation remain
confidential and not subject to required disclosure [in accordance
with Section 531.1021(g)].
SECTION 12. Sections 531.103(a), (c), and (d), Government
Code, are amended to read as follows:
(a) The [commission, acting through the commission's]
office of inspector general[,] and the office of the attorney
general shall enter into a memorandum of understanding to develop
and implement joint written procedures for processing cases of
suspected fraud, waste, or abuse, as those terms are defined by
state or federal law, or other violations of state or federal law
under the state Medicaid program or other program administered by
the commission or a health and human services agency, including the
financial assistance program under Chapter 31, Human Resources
Code, a nutritional assistance program under Chapter 33, Human
Resources Code, and the child health plan program. The memorandum
of understanding shall require:
(1) the office of inspector general and the office of
the attorney general to set priorities and guidelines for referring
cases to appropriate state agencies for investigation,
prosecution, or other disposition to enhance deterrence of fraud,
waste, abuse, or other violations of state or federal law,
including a violation of Chapter 102, Occupations Code, in the
programs and maximize the imposition of penalties, the recovery of
money, and the successful prosecution of cases;
(1-a) the office of inspector general to refer each
case of suspected provider fraud, waste, or abuse to the office of
the attorney general not later than the 20th business day after the
date the office of inspector general determines that the existence
of fraud, waste, or abuse is reasonably indicated;
(1-b) the office of the attorney general to take
appropriate action in response to each case referred to the
attorney general, which action may include direct initiation of
prosecution, with the consent of the appropriate local district or
county attorney, direct initiation of civil litigation, referral to
an appropriate United States attorney, a district attorney, or a
county attorney, or referral to a collections agency for initiation
of civil litigation or other appropriate action;
(2) the office of inspector general to keep detailed
records for cases processed by that office or the office of the
attorney general, including information on the total number of
cases processed and, for each case:
(A) the agency and division to which the case is
referred for investigation;
(B) the date on which the case is referred; and
(C) the nature of the suspected fraud, waste, or
abuse;
(3) the office of inspector general to notify each
appropriate division of the office of the attorney general of each
case referred by the office of inspector general;
(4) the office of the attorney general to ensure that
information relating to each case investigated by that office is
available to each division of the office with responsibility for
investigating suspected fraud, waste, or abuse;
(5) the office of the attorney general to notify the
office of inspector general of each case the attorney general
declines to prosecute or prosecutes unsuccessfully;
(6) representatives of the office of inspector general
and of the office of the attorney general to meet not less than
quarterly to share case information and determine the appropriate
agency and division to investigate each case; and
(7) the office of inspector general and the office of
the attorney general to submit information requested by the
comptroller about each resolved case for the comptroller's use in
improving fraud detection.
(c) The office of inspector general [commission] and the
office of the attorney general shall jointly prepare and submit a
semiannual report to the governor, lieutenant governor, speaker of
the house of representatives, and comptroller concerning the
activities of the office of the attorney general and the office of
inspector general [those agencies] in detecting and preventing
fraud, waste, and abuse under the state Medicaid program or other
program administered by the commission or a health and human
services agency. The report may be consolidated with any other
report relating to the same subject matter the office of inspector
general [commission] or office of the attorney general is required
to submit under other law.
(d) The office of inspector general [commission] and the
office of the attorney general may not assess or collect
investigation and attorney's fees on behalf of any state agency
unless the office of inspector general, the office of the attorney
general, or another [other] state agency collects a penalty,
restitution, or other reimbursement payment to the state.
SECTION 13. Section 531.1031(a)(2), Government Code, is
amended to read as follows:
(2) "Participating agency" means:
(A) the Medicaid fraud enforcement divisions of
the office of the attorney general; [and]
(B) each board or agency with authority to
license, register, regulate, or certify a health care professional
or managed care organization that may participate in the state
Medicaid program; and
(C) the office of inspector general.
SECTION 14. Section 531.104(a), Government Code, is amended
to read as follows:
(a) The office of inspector general [commission] and the
attorney general shall execute a memorandum of understanding under
which the office [commission] shall provide investigative support
as required to the attorney general in connection with cases under
Subchapter B, Chapter 36, Human Resources Code. Under the
memorandum of understanding, the office [commission] shall assist
in performing preliminary investigations and ongoing
investigations for actions prosecuted by the attorney general under
Subchapter C, Chapter 36, Human Resources Code.
SECTION 15. 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 health and human
services agencies [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 Texas Department of Health and the Texas Department
of Human Services, in cooperation with the 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 commission. The
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 531.103(c).]
SECTION 16. 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,
waste, and abuse 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 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) Cases [The commission shall refer cases] identified by
the technology shall be referred to the [commission's] office of
inspector general [investigations and enforcement] or the office of
the attorney general, 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 commission or the office of inspector general 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 commission shall refer] the
case shall be referred for investigation to the office of inspector
general or the office of the attorney general, as appropriate [to
the commission's office of investigations and enforcement].
SECTION 17. 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 may [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 18. 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 19. 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 [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 [commission],
appointed by the inspector general [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 [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 20. Sections 531.108 and 531.109, Government Code,
are amended to read as follows:
Sec. 531.108. FRAUD PREVENTION. (a) The [commission's]
office of inspector general [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 office's [commission's] case management system or
the case management system of a health and human services agency.
(b) The office of inspector general [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 office, the
commission, or a health and human services agency is maintained and
promoted[, either] by the office, 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.
(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.
(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 and
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.
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 and the commission shall determine the
types of claims at which office and commission resources for fraud,
waste, and abuse detection should be primarily directed.
SECTION 21. 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 office
[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 22. 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 providers and 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 provider's files or recipients'
eligibility files maintained by the commission or other health and
human services agencies; and
(3) identify a person who obtains or receives services
fraudulently, the date on which the person obtained or received the
services, and the location where the services were provided [Texas
Department of Human Services].
SECTION 23. Section 531.1112, Government Code, is amended
to read as follows:
Sec. 531.1112. STUDY CONCERNING INCREASED USE OF TECHNOLOGY
TO STRENGTHEN FRAUD DETECTION AND DETERRENCE; IMPLEMENTATION. (a)
The commission and the [commission's] office of inspector general
shall jointly study the feasibility of increasing the use of
technology to strengthen the detection and deterrence of fraud in
the state Medicaid program. The study must include the
determination of the feasibility of using technology to verify a
person's citizenship and eligibility for coverage.
(b) The commission shall implement any methods the
commission and the [commission's] office of inspector general
determine are effective at strengthening fraud detection and
deterrence.
SECTION 24. 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 25. 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 inspector general [commission] shall adopt rules as
necessary to implement this section.
SECTION 26. Section 531.115, Government Code, is amended to
read as follows:
Sec. 531.115. FEDERAL FELONY MATCH. The office of
inspector general [commission] shall develop and implement a system
to cross-reference data collected for the programs listed under
Section 531.008(c) with the list of fugitive felons maintained by
the federal government.
SECTION 27. 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; and
(16) a requirement that the managed care organization
refund to the commission, through the office of inspector general,
an overpayment made by the managed care organization to a provider
that is identified as a result of a review conducted under Chapter
422 or Subchapter C, Chapter 531, according to rules adopted by the
inspector general.
SECTION 28. Section 533.012(c), Government Code, is amended
to read as follows:
(c) The [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.
SECTION 29. Section 811.001(9), Government Code, is amended
to read as follows:
(9) "Law enforcement officer" means a member of the
retirement system who:
(A) has been commissioned as a law enforcement
officer by the Department of Public Safety, the Texas Alcoholic
Beverage Commission, the Parks and Wildlife Department, or the
office of inspector general established under Chapter 422 at the
Texas Youth Commission; and
(B) is recognized as a commissioned law
enforcement officer by the Commission on Law Enforcement Officer
Standards and Education.
SECTION 30. Section 814.104(b), Government Code, is amended
to read as follows:
(b) A member who is at least 55 years old and who has at
least 10 years of service credit as a commissioned peace officer
engaged in criminal law enforcement activities of the Department of
Public Safety, the Texas Alcoholic Beverage Commission, the Parks
and Wildlife Department, or the office of inspector general
established under Chapter 422 at the Texas Youth Commission, or as a
custodial officer, is eligible to retire and receive a service
retirement annuity.
SECTION 31. Section 815.505, Government Code, is amended to
read as follows:
Sec. 815.505. CERTIFICATION OF NAMES OF LAW ENFORCEMENT AND
CUSTODIAL OFFICERS. Not later than the 12th day of the month
following the month in which a person begins or ceases employment as
a law enforcement officer or custodial officer, the Public Safety
Commission, the Texas Alcoholic Beverage Commission, the Parks and
Wildlife Commission, the office of inspector general established
under Chapter 422 at the Texas Youth Commission, the Board of
Pardons and Paroles, or the Texas Board of Criminal Justice, as
applicable, shall certify to the retirement system, in the manner
prescribed by the system, the name of the employee and such other
information as the system determines is necessary for the crediting
of service and financing of benefits under this subtitle.
SECTION 32. 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 use of a federal or state database or network
by an office of inspector general established under Chapter 422.
SECTION 33. Section 21.014(b), Human Resources Code, is
amended to read as follows:
(b) The [person employed by the department as] inspector
general appointed under Chapter 422, Government Code, for the
Health and Human Services Commission shall make reports to and
consult with the agency director [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 34. 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,
for the Health and Human Services Commission.
SECTION 35. Section 32.0291, Human Resources Code, is
amended to read as follows:
Sec. 32.0291. PREPAYMENT REVIEWS AND POSTPAYMENT HOLDS.
(a) Notwithstanding any other law, the office of inspector general
or 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 or the hearings division of the Health and
Human Services Commission 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 of inspector general
[department] under Subsection (b). The office of inspector general
[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 of inspector general [department]
in imposing the hold is relevant, credible, and material to the
issue of fraud, waste, abuse, or wilful misrepresentation.
(d) The 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 of inspector general [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 36. Section 32.032, Human Resources Code, is
amended to read as follows:
Sec. 32.032. PREVENTION AND DETECTION OF FRAUD, WASTE, AND
ABUSE. The inspector general [department] shall adopt reasonable
rules for minimizing the opportunity for fraud, waste, and abuse,
for establishing and maintaining methods for detecting and
identifying situations in which a question of fraud, waste, or
abuse in the program may exist, and for referring cases where fraud,
waste, or abuse appears to exist to the appropriate law enforcement
agencies for prosecution.
SECTION 37. Sections 32.0321(a) through (d), Human
Resources Code, are amended to read as follows:
(a) The office of inspector general [department] by rule may
recommend to the department and the department by rule may require
that each provider of medical assistance in a provider type that has
demonstrated significant potential for fraud, waste, or abuse to
file with the department a surety bond in a reasonable amount. The
office and the department by rule shall each require a provider of
medical assistance to file with the department a surety bond in a
reasonable amount if the office [department] identifies a pattern
of suspected fraud, waste, 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, waste, or abuse.
(b) The bond under Subsection (a) must be payable to the
department to compensate the department for damages resulting from
or penalties or fines imposed in connection with an act of fraud,
waste, or abuse committed by the provider under the medical
assistance program.
(c) Subject to Subsection (d) or (e), the office of
inspector general and the 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 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 and the 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 38. 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 39. Sections 32.033(d) through (h), Human Resources
Code, are amended to read as follows:
(d) A separate and distinct cause of action in favor of the
state is hereby created, and the office of inspector general
[department] may, without written consent, take direct civil action
in any court of competent jurisdiction. A suit brought under this
section need not be ancillary to or dependent upon any other action.
(e) The [department's] right of recovery of the office of
inspector general is limited to the amount of the cost of medical
care services paid by the department. Other subrogation rights
granted under this section are limited to the cost of the services
provided.
(f) The inspector general [commissioner] may waive the
[department's] right of recovery of the office of inspector general
in whole or in part when the inspector general [commissioner] finds
that enforcement would tend to defeat the purpose of public
assistance.
(g) The office of inspector general [department] may
designate an agent to collect funds the office [department] has a
right to recover from third parties under this section. The
department shall use any funds collected under this section to pay
costs of administering the medical assistance program.
(h) The inspector general [department] may adopt rules for
the enforcement of the office's [its] right of recovery.
SECTION 40. Sections 32.039(c) through (r) and (u) through
(x), Human Resources Code, are amended to read as follows:
(c) A person who commits a violation under Subsection (b) is
liable to the department for:
(1) the amount paid, if any, as a result of the
violation and interest on that amount determined at the rate
provided by law for legal judgments and accruing from the date on
which the payment was made; and
(2) payment of an administrative penalty, assessed by
the office of inspector general, in [of] an amount not to exceed
twice the amount paid, if any, as a result of the violation, plus an
amount:
(A) not less than $5,000 or more than $15,000 for
each violation that results in injury to an elderly person, as
defined by Section 48.002(a)(1) [48.002(1)], a disabled person, as
defined by Section 48.002(a)(8)(A) [48.002(8)(A)], or a person
younger than 18 years of age; or
(B) not more than $10,000 for each violation that
does not result in injury to a person described by Paragraph (A).
(d) Unless the provider submitted information to the
department for use in preparing a voucher that the provider knew or
should have known was false or failed to correct information that
the provider knew or should have known was false when provided an
opportunity to do so, this section does not apply to a claim based
on the voucher if the department calculated and printed the amount
of the claim on the voucher and then submitted the voucher to the
provider for the provider's signature. In addition, the provider's
signature on the voucher does not constitute fraud. The inspector
general [department] shall adopt rules that establish a grace
period during which errors contained in a voucher prepared by the
department may be corrected without penalty to the provider.
(e) In determining the amount of the penalty to be assessed
under Subsection (c)(2), the office of inspector general
[department] shall consider:
(1) the seriousness of the violation;
(2) whether the person had previously committed a
violation; and
(3) the amount necessary to deter the person from
committing future violations.
(f) If after an examination of the facts the office of
inspector general [department] concludes that the person committed
a violation, the office [department] may issue a preliminary report
stating the facts on which it based its conclusion, recommending
that an administrative penalty under this section be imposed and
recommending the amount of the proposed penalty.
(g) The office of inspector general [department] shall give
written notice of the report to the person charged with committing
the violation. The notice must include a brief summary of the
facts, a statement of the amount of the recommended penalty, and a
statement of the person's right to an informal review of the alleged
violation, the amount of the penalty, or both the alleged violation
and the amount of the penalty.
(h) Not later than the 10th day after the date on which the
person charged with committing the violation receives the notice,
the person may either give the office of inspector general
[department] written consent to the report, including the
recommended penalty, or make a written request for an informal
review by the office [department].
(i) If the person charged with committing the violation
consents to the penalty recommended by the office of inspector
general [department] or fails to timely request an informal review,
the office [department] shall assess the penalty. The office
[department] shall give the person written notice of its action.
The person shall pay the penalty not later than the 30th day after
the date on which the person receives the notice.
(j) If the person charged with committing the violation
requests an informal review as provided by Subsection (h), the
office of inspector general [department] shall conduct the review.
The office [department] shall give the person written notice of the
results of the review.
(k) Not later than the 10th day after the date on which the
person charged with committing the violation receives the notice
prescribed by Subsection (j), the person may make to the office of
inspector general [department] a written request for a hearing.
The hearing must be conducted in accordance with Chapter 2001,
Government Code.
(l) If, after informal review, a person who has been ordered
to pay a penalty fails to request a formal hearing in a timely
manner, the office of inspector general [department] shall assess
the penalty. The office [department] shall give the person written
notice of its action. The person shall pay the penalty not later
than the 30th day after the date on which the person receives the
notice.
(m) Within 30 days after the date on which the inspector
general's [board's] order issued after a hearing under Subsection
(k) becomes final as provided by Section 2001.144, Government Code,
the person shall:
(1) pay the amount of the penalty;
(2) pay the amount of the penalty and file a petition
for judicial review contesting the occurrence of the violation, the
amount of the penalty, or both the occurrence of the violation and
the amount of the penalty; or
(3) without paying the amount of the penalty, file a
petition for judicial review contesting the occurrence of the
violation, the amount of the penalty, or both the occurrence of the
violation and the amount of the penalty.
(n) A person who acts under Subsection (m)(3) within the
30-day period may:
(1) stay enforcement of the penalty by:
(A) paying the amount of the penalty to the court
for placement in an escrow account; or
(B) giving to the court a supersedeas bond that
is approved by the court for the amount of the penalty and that is
effective until all judicial review of the [department's] order of
the inspector general is final; or
(2) request the court to stay enforcement of the
penalty by:
(A) filing with the court a sworn affidavit of
the person stating that the person is financially unable to pay the
amount of the penalty and is financially unable to give the
supersedeas bond; and
(B) giving a copy of the affidavit to the office
of inspector general [commissioner] by certified mail.
(o) If the office of inspector general [commissioner]
receives a copy of an affidavit under Subsection (n)(2), the office
[commissioner] may file with the court, within five days after the
date the copy is received, a contest to the affidavit. The court
shall hold a hearing on the facts alleged in the affidavit as soon
as practicable and shall stay the enforcement of the penalty on
finding that the alleged facts are true. The person who files an
affidavit has the burden of proving that the person is financially
unable to pay the amount of the penalty and to give a supersedeas
bond.
(p) If the person charged does not pay the amount of the
penalty and the enforcement of the penalty is not stayed, the office
of inspector general [department] may forward the matter to the
attorney general for enforcement of the penalty and interest as
provided by law for legal judgments. An action to enforce a penalty
order under this section must be initiated in a court of competent
jurisdiction in Travis County or in the county in which the
violation was committed.
(q) Judicial review of an [a department] order or review by
the office of inspector general under this section assessing a
penalty is under the substantial evidence rule. A suit may be
initiated by filing a petition with a district court in Travis
County, as provided by Subchapter G, Chapter 2001, Government Code.
(r) If a penalty is reduced or not assessed, the department
shall remit to the person the appropriate amount plus accrued
interest if the penalty has been paid or the office of inspector
general shall execute a release of the bond if a supersedeas bond
has been posted. The accrued interest on amounts remitted by the
department under this subsection shall be paid at a rate equal to
the rate provided by law for legal judgments and shall be paid for
the period beginning on the date the penalty is paid to the
department under this section and ending on the date the penalty is
remitted.
(u) Except as provided by Subsection (w), a person found
liable for a violation under Subsection (c) that resulted in injury
to an elderly person, as defined by Section 48.002(a)(1), a
disabled person, as defined by Section 48.002(a)(8)(A), or a person
younger than 18 years of age may not provide or arrange to provide
health care services under the medical assistance program for a
period of 10 years. The inspector general [department] by rule may
provide for a period of ineligibility longer than 10 years. The
period of ineligibility begins on the date on which the
determination that the person is liable becomes final.
(v) Except as provided by Subsection (w), a person found
liable for a violation under Subsection (c) that did not result in
injury to an elderly person, as defined by Section 48.002(a)(1), a
disabled person, as defined by Section 48.002(a)(8)(A), or a person
younger than 18 years of age may not provide or arrange to provide
health care services under the medical assistance program for a
period of three years. The inspector general [department] by rule
may provide for a period of ineligibility longer than three years.
The period of ineligibility begins on the date on which the
determination that the person is liable becomes final.
(w) The inspector general [department] by rule may
prescribe criteria under which a person described by Subsection (u)
or (v) is not prohibited from providing or arranging to provide
health care services under the medical assistance program. The
criteria may include consideration of:
(1) the person's knowledge of the violation;
(2) the likelihood that education provided to the
person would be sufficient to prevent future violations;
(3) the potential impact on availability of services
in the community served by the person; and
(4) any other reasonable factor identified by the
inspector general [department].
(x) Subsections (b)(1-b) through (1-f) do not prohibit a
person from engaging in:
(1) generally accepted business practices, as
determined by inspector general [department] rule, including:
(A) conducting a marketing campaign;
(B) providing token items of minimal value that
advertise the person's trade name; and
(C) providing complimentary refreshments at an
informational meeting promoting the person's goods or services;
(2) the provision of a value-added service if the
person is a managed care organization; or
(3) other conduct specifically authorized by law,
including conduct authorized by federal safe harbor regulations (42
C.F.R. Section 1001.952).
SECTION 41. Section 32.070(d), Human Resources Code, is
amended to read as follows:
(d) This section does not apply to a computerized audit
conducted using the Medicaid Fraud Detection Audit System or an
audit or investigation of fraud, waste, and abuse conducted by the
Medicaid fraud control unit of the office of the attorney general,
the office of the state auditor, the office of [the] inspector
general, or the Office of Inspector General in the United States
Department of Health and Human Services.
SECTION 42. 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 established for the
Health and Human Services Commission under Chapter 422, Government
Code.
SECTION 43. Section 61.001(7), Human Resources Code, is
amended to read as follows:
(7) "Office of inspector general" means the office of
inspector general established under Chapter 422, Government Code,
for the commission [Section 61.0451].
SECTION 44. Sections 61.0451(a), (d), (f), and (g), Human
Resources Code, are amended to read as follows:
(a) The office of inspector general shall investigate [is
established at the commission for the purpose of investigating]:
(1) crimes committed by commission employees,
including parole officers employed by or under a contract with the
commission; and
(2) crimes and delinquent conduct committed at a
facility operated by the commission, a residential facility
operated by another entity under a contract with the commission, or
any facility in which a child committed to the custody of the
commission is housed or receives medical or mental health
treatment.
(d) The office of inspector general may employ and
commission inspectors [general] as peace officers in accordance
with Section 422.105, Government Code, for the purpose of carrying
out the duties described by this section. An inspector [general]
shall have all of the powers and duties given to peace officers
under Article 2.13, Code of Criminal Procedure.
(f) If the inspector general is not a commissioned peace
officer, the inspector general [The executive commissioner] shall
select a commissioned peace officer as chief inspector [general].
The chief inspector [general] is subject to the requirements of
this section and may only be discharged for cause.
(g) The [chief] inspector general shall on a quarterly basis
prepare and deliver a report concerning the operations of the
office of inspector general to:
(1) the executive commissioner;
(2) the advisory board;
(3) the governor;
(4) the lieutenant governor;
(5) the speaker of the house of representatives;
(6) the standing committees of the senate and house of
representatives with primary jurisdiction over correctional
facilities;
(7) the state auditor; and
(8) the comptroller.
SECTION 45. Sections 61.098(d) and (e), Human Resources
Code, are amended to read as follows:
(d) Notwithstanding Subsection (c), the office of inspector
general shall immediately provide the special prosecution unit with
a report concerning an alleged criminal offense or delinquent
conduct concerning the commission and described by Article
104.003(a), Code of Criminal Procedure, if the [chief] inspector
general reasonably believes the offense or conduct is particularly
serious and egregious.
(e) The [chief] inspector general of the office of inspector
general, at the direction of the board of directors of the special
prosecution unit, shall notify the foreman of the appropriate grand
jury, in the manner provided by Article 20.09, Code of Criminal
Procedure, if:
(1) the [chief] inspector general receives credible
evidence of illegal or improper conduct by commission officers,
employees, or contractors that the inspector general reasonably
believes jeopardizes the health, safety, and welfare of children in
the custody of the commission;
(2) the [chief] inspector general reasonably believes
the conduct:
(A) could constitute an offense under Article
104.003(a), Code of Criminal Procedure; and
(B) involves the alleged physical or sexual abuse
of a child in the custody of a commission facility or an
investigation related to the alleged abuse; and
(3) the [chief] inspector general has reason to
believe that information concerning the conduct has not previously
been presented to the appropriate grand jury.
SECTION 46. Section 64.055(b), Human Resources Code, is
amended to read as follows:
(b) The independent ombudsman shall immediately report to
the governor, the lieutenant governor, the speaker of the house of
representatives, the state auditor, and the office of the inspector
general established under Chapter 422, Government Code, for [of]
the commission any particularly serious or flagrant:
(1) case of abuse or injury of a child committed to the
commission;
(2) problem concerning the administration of a
commission program or operation;
(3) problem concerning the delivery of services in a
facility operated by or under contract with the commission; or
(4) interference by the commission with an
investigation conducted by the office.
SECTION 47. Section 64.056(b), Human Resources Code, is
amended to read as follows:
(b) The records of the independent ombudsman are
confidential, except that the independent ombudsman shall:
(1) share with the office of inspector general
established under Chapter 422, Government Code, for [of] the
commission a communication with a child that may involve the abuse
or neglect of the child; and
(2) disclose its nonprivileged records if required by
a court order on a showing of good cause.
SECTION 48. 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
Board;
(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 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, Insurance Code;
(29) apprehension specialists [and inspectors
general] commissioned by the Texas Youth Commission as officers
under Section [Sections 61.0451 and] 61.0931, Human Resources Code;
(30) [officers appointed by the inspector general 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;
(31) [(32)] commission investigators commissioned by
the Texas Private Security Board under Section 1702.061(f),
Occupations Code;
(32) [(33)] the fire marshal and any officers,
inspectors, or investigators commissioned by an emergency services
district under Chapter 775, Health and Safety Code;
(33) [(34)] officers commissioned by the State Board
of Dental Examiners under Section 254.013, Occupations Code,
subject to the limitations imposed by that section;
(34) [(35)] investigators commissioned by the Texas
Juvenile Probation Commission as officers under Section 141.055,
Human Resources Code; [and]
(35) [(36)] the fire marshal and any related officers,
inspectors, or investigators commissioned by a county under
Subchapter B, Chapter 352, Local Government Code; and
(36) officers commissioned by an office of inspector
general established under Chapter 422, Government Code.
SECTION 49. Section 1(2), Article 18.21, Code of Criminal
Procedure, is amended to read as follows:
(2) "Authorized peace officer" means:
(A) a sheriff or a sheriff's deputy;
(B) a constable or deputy constable;
(C) a marshal or police officer of an
incorporated city;
(D) a ranger or officer commissioned by the
Public Safety Commission or the director of the Department of
Public Safety;
(E) an investigator of a prosecutor's office;
(F) a law enforcement agent of the Alcoholic
Beverage Commission;
(G) a law enforcement officer commissioned by the
Parks and Wildlife Commission; or
(H) an enforcement officer appointed by the
inspector general [executive director] of the Texas Department of
Criminal Justice under Section 493.019, Government Code.
SECTION 50. Section 531.1021, Government Code, is repealed.
SECTION 51. (a) The amendment 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 52. (a) A person serving on the effective date of
this Act as inspector general for a state agency subject to Chapter
422, Government Code, as added by this Act, shall serve as the
inspector general considered appointed for the agency under Chapter
422, Government Code, as added by this Act, until February 1, 2013,
and may be reappointed under Chapter 422 if the person has the
qualifications required under that chapter.
(b) Not later than February 1, 2013, the governor or the
governing body of a state agency subject to Chapter 422, Government
Code, as added by this Act, as applicable, shall appoint an
inspector general for the office of inspector general of that
agency to a term expiring February 1, 2015.
SECTION 53. A contract or proceeding primarily related to a
function transferred to an office of inspector general established
under this Act is transferred to the office. The transfer does not
affect the status of a proceeding or the validity of a contract.
SECTION 54. (a) All personnel and assets currently
assigned to the inspector general of a state agency subject to
Chapter 422, Government Code, as added by this Act, shall be
promptly transferred to the office of inspector general for that
agency established under Chapter 422 along with any equipment,
documents, and records currently assigned to or used by the
inspector general of that agency. Inventory of personnel,
equipment, documents, records, and assets to be transferred under
this section shall be accomplished jointly by the transferring
agency and the inspector general considered appointed under Chapter
422 for that agency. All funds previously appropriated or used,
from any source, by the transferring agency in support of the
transferred functions, personnel, equipment, documents, records,
or assets shall also be contemporaneously transferred to the
office.
(b) For purposes of this section, "currently assigned"
means:
(1) all personnel and vacant full-time equivalent
positions assigned to or supporting a transferred function at any
time during the state fiscal biennium beginning September 1, 2009;
and
(2) all inventory and equipment assigned to a
transferred function or transferring personnel or that was in the
possession of transferring personnel on or at any time after
October 31, 2010.
(c) All state and federal funding, including funding for
overhead costs, support costs, and lease or colocation lease costs,
for the functions to be transferred to an office of inspector
general established under Chapter 422, Government Code, as added by
this Act, shall be reallocated to that office.
(d) For purposes of federal single state agency funding
requirements, any federal funds that may not be appropriated
directly to the office of inspector general for an agency subject to
Chapter 422, Government Code, as added by this Act, shall be
transferred from the single state agency receiving the funds to the
office of inspector general if the funds are intended for a function
performed by the office.
SECTION 55. On the effective date of this Act:
(1) all functions, activities, employees, rules,
forms, money, property, contracts, memorandums of understanding,
records, and obligations of a previously established office of
inspector general of an agency subject to Chapter 422, Government
Code, as added by this Act, become functions, activities,
employees, rules, forms, money, property, contracts, memorandums
of understanding, records, and obligations of the office of
inspector general established under Chapter 422, without a change
in status; and
(2) all money appropriated for the operations of a
previously established office of inspector general at an agency
subject to Chapter 422, Government Code, as added by this Act,
including money for providing administrative support, is
considered appropriated to the office of inspector general
established under Chapter 422.
SECTION 56. (a) Each agency subject to Chapter 422,
Government Code, as added by this Act, shall take all action
necessary to provide for the orderly transfer of the assets and
responsibilities of any previously established office of inspector
general for that agency to the office of inspector general
established under Chapter 422.
(b) A rule or form adopted by a previously established
office of inspector general of an agency subject to Chapter 422,
Government Code, as added by this Act, is a rule or form of the
office of inspector general established under Chapter 422 and
remains in effect until changed by the office of inspector general.
(c) A reference in law or administrative rule to a
previously established office of inspector general of an agency
subject to Chapter 422, Government Code, as added by this Act, means
the office of inspector general established under Chapter 422.
SECTION 57. 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 58. 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, 2011.