By: Nelson S.B. No. 746
 
 
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to unlawful acts against and criminal offenses involving
  the Medicaid program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 36.002(9) and (12), Human Resources
  Code, are amended to read as follows:
               (9)  conspires to commit a violation of subsection (1),
  (2), (3), (4), (5), (6), (7), (8), (10), (11), (12), or (13)
  [knowingly enters into an agreement, combination, or conspiracy to
  defraud the state by obtaining or aiding another person in
  obtaining an unauthorized payment or benefit from the Medicaid
  program or a fiscal agent];
               (12)  knowingly makes, uses, or causes the making or
  use of a false record or statement material to [conceal, avoid, or
  decrease] an obligation to pay or transmit money or property to this
  state under the Medicaid program, or knowingly conceals or
  knowingly and improperly avoids or decreases an obligation to pay
  or transmit money or property to this state under the Medicaid
  program; or
               (13)  knowingly engages in conduct that constitutes a
  violation under Section 32.039(b).
         SECTION 2.  Section 36.104(b), Human Resources Code, is
  amended to read as follows:
         (b)  If the state declines to take over the action, the
  person bringing the action may proceed without the state's
  participation. On request by the state, the state is entitled to be
  served with copies of all pleadings filed in the action and be
  provided at the state's expense with copies of all deposition
  transcripts. If the person bringing the action proceeds without
  the state's participation, the court, without limiting the status
  and right of that person, may permit the state to intervene at a
  later date on a showing of good cause.  A person pursuing an action
  under this subsection may file suit for claims that accrued on or
  after September 1, 1995, the effective date of this Statute.
         SECTION 3.  Sections 36.110(b) and (c), Human Resources
  Code, are amended to read as follows:
         (b)  If the court finds that the action is based primarily on
  disclosures of specific information, other than information
  provided by the person bringing the action, relating to allegations
  or transactions in a state criminal or civil hearing, in a state
  legislative or administrative report, hearing, audit, or
  investigation, or from the news media, the court may award the
  amount the court considers appropriate but not more than 10 [seven]
  percent of the proceeds of the action. The court shall consider the
  significance of the information and the role of the person bringing
  the action in advancing the case to litigation.
         (c)  A payment to a person under this section shall be made
  from the proceeds of the action. A person receiving a payment under
  this section is also entitled to receive from the defendant an
  amount for reasonable expenses, reasonable attorney's fees, and
  costs that the court finds to have been necessarily incurred. The
  court's determination of expenses, fees, and costs to be awarded
  under this subsection shall be made only after the defendant has
  been found liable in the action or the claim is settled [state
  settles an action with a defendant that the court determined, after
  a hearing, was fair, adequate, and reasonable in accordance with
  Section 36.107(c)].
         SECTION 4.  Section 36.113(b), Human Resources Code, is
  amended to read as follows:
         (b)  The court shall dismiss [A person may not bring]an
  action or claim under this subchapter, unless opposed by the
  attorney general, if substantially the same [that is based on the
  public disclosure of] allegations or transactions as alleged in the
  action or claim were publicly disclosed in a state criminal or civil
  hearing in which the state or an agent of the state is a party, in a
  state legislative or administrative report, or other state hearing,
  audit, or investigation, or from the news media, unless the person
  bringing the action is an original source of the information. In
  this subsection, "original source" means an individual who:
               (1)  prior to a public disclosure under this
  subsection, has voluntarily disclosed to the state the information
  on which allegations or transactions in a claim are based [had
  direct and independent knowledge of the information on which the
  allegations are based and has voluntarily provided the information
  to the state before filing an action under this subchapter that is
  based on the information]; or
               (2)  has knowledge that is independent of and
  materially adds to the publicly disclosed allegation[s] or
  transactions who has voluntarily provided the information to the
  state before filing an action under this subchapter [that is based
  on the information].
         SECTION 5.  Section 36.115, Human Resources Code, is amended
  by amending Subsection (a) and adding Subsection (c) to read as
  follows:
         (a)  A person, including an employee, contractor, or agent,
  who is discharged, demoted, suspended, threatened, harassed, or in
  any other manner discriminated against in the terms and conditions
  of employment because of a lawful act taken by the person or
  associated others in furtherance of an action under this
  subchapter, including investigation for, initiation of, testimony
  for, or assistance in an action filed or to be filed under this
  subchapter, or other efforts taken by the person to stop one or more
  violations of Section 36.002 is entitled to:
               (1)  reinstatement with the same seniority status the
  person would have had but for the discrimination; and
               (2)  not less than two times the amount of back pay,
  interest on the back pay, and compensation for any special damages
  sustained as a result of the discrimination, including litigation
  costs and reasonable attorney's fees.
         (c)  A person must bring suit on an action under this section
  not later than the third anniversary of the date on which the cause
  of action accrues. For purposes of this section, the cause of
  action accrues on the date the retaliation occurs.
         SECTION 6.  Section 36.113(c), Human Resources Code, is
  repealed.
         SECTION 7.  (a) The changes in law made by this Act to
  Section 36.002, Human Resources Code, apply only to conduct that
  occurs on or after the effective date of this Act. Conduct that
  occurs before the effective date of this Act is governed by the law
  in effect at the time the conduct occurred, and that law is
  continued in effect for that purpose.
         SECTION 8.  The changes in law made by this Act to Sections
  36.110 and 36.113, Human Resources Code, apply only to a civil
  action for a violation of Section 36.002, Human Resources Code, as
  amended by this Act, commenced on or after the effective date of
  this Act. A civil action commenced before the effective date of
  this Act is governed by the law in effect immediately before the
  effective date of this Act, and that law is continued in effect for
  that purpose.
         SECTION 9.  The changes in law made by this Act to Section
  36.115, Human Resources Code, apply only to a cause of action that
  accrues on or after the effective date of this Act. A cause of
  action that accrued before the effective date of this Act is
  governed by the law applicable to the case of action immediately
  before the effective date of this Act, and that law is continued in
  effect for that purpose.
         SECTION 10.  This Act takes effect September 1, 2013.