Texas 2009 - 81st Regular

Texas House Bill HB2426 Compare Versions

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1	1	81R29564 YDB-D
2	2	By: Gattis H.B. No. 2426
3	3	Substitute the following for H.B. No. 2426:
4	4	By: Solomons C.S.H.B. No. 2426
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the creation of the office of inspector general,
10	10	including the required appointment of deputy inspectors general at
11	11	the Health and Human Services Commission, Texas Youth Commission,
12	12	Texas Department of Criminal Justice, Texas Education Agency, and
13	13	Texas Department of Transportation; providing penalties.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Subtitle B, Title 4, Government Code, is amended
16	16	by adding Chapter 422 to read as follows:
17	17	CHAPTER 422. OFFICE OF INSPECTOR GENERAL
18	18	SUBCHAPTER A. GENERAL PROVISIONS
19	19	Sec. 422.001. SHORT TITLE. This chapter may be cited as the
20	20	Office of Inspector General Act.
21	21	Sec. 422.002. DEFINITIONS. In this chapter:
22	22	(1) "Agency" means a board, commission, committee,
23	23	department, office, division, or other agency of the executive
24	24	branch of state government. The term does not include an
25	25	institution of higher education as defined by Section 61.003,
26	26	Education Code.
27	27	(2) "Commission" means the Health and Human Services
28	28	Commission.
29	29	(3) "Fraud" means an intentional deception or
30	30	misrepresentation made by a person with the knowledge that the
31	31	deception could result in some unauthorized benefit to that person
32	32	or some other person. The term includes any act that constitutes
33	33	fraud under applicable federal or state law.
34	34	(4) "Furnished," in reference to items or services:
35	35	(A) means items or services provided directly by,
36	36	provided under the direct supervision of, or ordered by:
37	37	(i) a physician or other individual
38	38	licensed under state law to practice the individual's profession,
39	39	either as an employee or in the individual's own capacity;
40	40	(ii) a provider; or
41	41	(iii) another supplier of services; and
42	42	(B) does not include services ordered by one
43	43	party but billed for and provided by or under the supervision of
44	44	another.
45	45	(5) "Hold on payment" means the temporary denial of
46	46	reimbursement under a federal program for items or services
47	47	furnished by a specified provider.
48	48	(6) "Inspector general" means the inspector general
49	49	appointed under Section 422.101.
50	50	(7) "Office" means the office of inspector general
51	51	established under this chapter.
52	52	(8) "Program exclusion" means the suspension of a
53	53	provider's authorization under a federal program to request
54	54	reimbursement for items or services furnished by that provider.
55	55	(9) "Provider" means a person, firm, partnership,
56	56	corporation, agency, association, institution, or other entity
57	57	that was or is approved by the commission to provide:
58	58	(A) medical assistance under contract or
59	59	provider agreement with the commission; or
60	60	(B) third-party billing vendor services under a
61	61	contract or provider agreement with the commission.
62	62	(10) "Review" includes an audit, inspection,
63	63	investigation, evaluation, or similar activity.
64	64	(11) "State funds" or "state money" includes federal
65	65	funds or money received and appropriated by the state or for which
66	66	the state has oversight responsibility.
67	67	Sec. 422.003. APPLICATION OF SUNSET ACT. The office of
68	68	inspector general is subject to Chapter 325 (Texas Sunset Act).
69	69	Unless continued in existence as provided by that chapter, the
70	70	office is abolished and this chapter expires September 1, 2021.
71	71	Sec. 422.004. AGENCY ESTABLISHMENT OF INSPECTOR GENERAL
72	72	OFFICE. An agency may not establish an office of inspector general
73	73	without specific legislative authorization.
74	74	Sec. 422.005. REFERENCE IN OTHER LAW. (a) Notwithstanding
75	75	any other provision of law, a reference in law or rule to an
76	76	agency's office of inspector general means the office of inspector
77	77	general established under this chapter.
78	78	(b) Notwithstanding any other provision of law, a reference
79	79	in law or rule to the commission's office of investigations and
80	80	enforcement or the commission's office of inspector general means
81	81	the office of inspector general established under this chapter.
82	82	[Sections 422.006-422.050 reserved for expansion]
83	83	SUBCHAPTER B. ADMINISTRATION
84	84	Sec. 422.051. OFFICE OF INSPECTOR GENERAL. (a) The office
85	85	of inspector general is an agency of this state.
86	86	(b) The office is governed by the inspector general.
87	87	(c) The office shall have its principal office and
88	88	headquarters in Austin.
89	89	(d) The office consists of the inspector general, deputy
90	90	inspectors general, and other personnel necessary to carry out the
91	91	duties of the inspector general.
92	92	Sec. 422.052. INDEPENDENCE OF OFFICE. (a) Except as
93	93	otherwise provided by this chapter, the office and inspector
94	94	general operate independently of any other agency.
95	95	(b) The inspector general, a deputy inspector general, and
96	96	the office staff are not employees of any other agency.
97	97	Sec. 422.053. ADMINISTRATIVE ATTACHMENT. A person
98	98	designated by the inspector general to serve as the deputy
99	99	inspector general for an agency, together with office staff
100	100	assigned to the deputy inspector general, are administratively
101	101	attached to the assigned agency. The assigned agency shall provide
102	102	to office personnel administrative support services.
103	103	Sec. 422.054. SERVICE LEVEL AGREEMENT. (a) The office and
104	104	each agency to which a deputy inspector general is appointed shall
105	105	enter into a service level agreement that establishes the
106	106	performance standards and deliverables with regard to
107	107	administrative support provided to the office by the agency.
108	108	(b) The service level agreement must be reviewed at least
109	109	annually to ensure that services and deliverables are provided in
110	110	accordance with the agreement.
111	111	(c) The commission shall provide to the deputy inspector
112	112	general designated for the commission and that person's staff, for
113	113	the state fiscal biennium beginning September 1, 2009, the same
114	114	level of administrative support the commission provided to the
115	115	office established under former Section 531.102 for the state
116	116	fiscal biennium beginning September 1, 2007. This subsection
117	117	expires January 1, 2012.
118	118	[Sections 422.055-422.100 reserved for expansion]
119	119	SUBCHAPTER C. INSPECTOR GENERAL AND PERSONNEL
120	120	Sec. 422.101. APPOINTMENT. (a) From a list of three or
121	121	more names submitted to the governor by the Legislative Budget
122	122	Board, the governor, with the advice and consent of the senate,
123	123	shall appoint an inspector general to serve as director of the
124	124	office.
125	125	(b) The appointment shall be made without regard to race,
126	126	color, disability, sex, religion, age, or national origin.
127	127	(c) In preparing the list and in making the appointment, the
128	128	Legislative Budget Board and the governor, respectively, shall
129	129	consider the person's knowledge of laws, experience in the
130	130	enforcement of law, honesty, integrity, education, training,
131	131	executive ability, capability for strong leadership, and
132	132	demonstrated ability in accounting, auditing, financial analysis,
133	133	law, management analysis, public administration, investigation,
134	134	criminal justice administration, or other closely related fields.
135	135	Sec. 422.102. TERM; VACANCY. (a) The inspector general
136	136	serves a two-year term that expires on February 1 of each
137	137	odd-numbered year. The inspector general may be reappointed to one
138	138	or more subsequent terms.
139	139	(b) The governor shall fill a vacancy in the office of
140	140	inspector general for the unexpired term in the same manner as the
141	141	inspector general is appointed under Section 422.101(a).
142	142	Sec. 422.103. ELIGIBILITY. (a) A person is not eligible
143	143	for appointment as inspector general or designation as a deputy
144	144	inspector general if the person or the person's spouse:
145	145	(1) is an officer or paid consultant of a business
146	146	entity or other organization that holds a license, certificate of
147	147	authority, or other authorization from an agency for which a deputy
148	148	inspector general is appointed or that receives funds from an
149	149	agency for which a deputy inspector general is appointed;
150	150	(2) owns or controls, directly or indirectly, more
151	151	than a 10 percent interest in a business entity or other
152	152	organization receiving funds from an agency for which a deputy
153	153	inspector general is appointed; or
154	154	(3) uses or receives a substantial amount of tangible
155	155	goods or funds from an agency for which a deputy inspector general
156	156	is appointed, other than compensation or reimbursement authorized
157	157	by law.
158	158	(b) A person is not eligible to serve as inspector general
159	159	or deputy inspector general if the person or the person's spouse is
160	160	required to register as a lobbyist under Chapter 305 because of the
161	161	person's or spouse's activities for compensation related to the
162	162	operation of an agency for which a deputy inspector general is
163	163	appointed.
164	164	(c) A person who is a former or current executive or manager
165	165	of an agency may not be appointed as the inspector general or a
166	166	deputy inspector general for that agency before the fifth
167	167	anniversary of the person's last day of service with the agency.
168	168	(d) The inspector general, a deputy inspector general, or an
169	169	employee of the office may not during the person's term of
170	170	appointment or employment:
171	171	(1) become a candidate for any elective office;
172	172	(2) hold another elected or appointed public office
173	173	except for an appointment on a governmental advisory board or study
174	174	commission or as otherwise expressly authorized by law;
175	175	(3) be actively involved in the affairs of any
176	176	political party or political organization; or
177	177	(4) actively participate in any campaign for any
178	178	elective office.
179	179	Sec. 422.104. CONFLICT OF INTEREST. (a) The inspector
180	180	general may not serve as an ex officio member on the governing body
181	181	of a governmental entity.
182	182	(b) The inspector general may not have a financial interest
183	183	in the transactions of the office or an agency.
184	184	(c) The inspector general and the deputy inspector general
185	185	designated for the commission may not have a financial interest in
186	186	the transactions of a provider.
187	187	Sec. 422.105. REMOVAL. The governor, with the advice and
188	188	consent of the senate, may remove the inspector general from office
189	189	as provided by Section 9, Article XV, Texas Constitution.
190	190	Sec. 422.106. DEPUTY INSPECTORS GENERAL. (a) Subject to
191	191	available appropriations and as necessary to carry out the powers
192	192	and duties of the inspector general under this chapter and other
193	193	laws granting jurisdiction to or applicable to the inspector
194	194	general, the inspector general may designate a person to serve as
195	195	the deputy inspector general for any agency or serve as a deputy
196	196	inspector general for more than one agency.
197	197	(b) The inspector general shall designate persons to serve
198	198	as the deputy inspectors general for each of the following
199	199	agencies:
200	200	(1) the Health and Human Services Commission;
201	201	(2) the Texas Youth Commission;
202	202	(3) the Texas Department of Criminal Justice;
203	203	(4) the Texas Education Agency; and
204	204	(5) the Texas Department of Transportation.
205	205	(c) A deputy inspector general is an at-will employee and
206	206	may be discharged by the inspector general without a hearing.
207	207	(d) A deputy inspector general shall report to and perform
208	208	duties as directed by the inspector general.
209	209	(e) Each agency to which a deputy inspector general is
210	210	appointed shall provide to the agency's designated deputy inspector
211	211	general facilities and support services, including suitable office
212	212	space, furniture, computer and communications equipment,
213	213	administrative support, and salary and benefits as provided by the
214	214	General Appropriations Act.
215	215	Sec. 422.107. PEACE OFFICERS. (a) The office may employ
216	216	and commission peace officers to assist the inspector general in
217	217	carrying out the duties of the office relating to detection,
218	218	investigation, and prevention of criminal wrongdoing, malfeasance,
219	219	misfeasance, or fraud, waste, and abuse in programs at an agency or
220	220	in programs receiving state or federal funds that are implemented,
221	221	administered, or overseen by or for an agency.
222	222	(b) A commissioned peace officer or otherwise designated
223	223	law enforcement officer employed by the office is not entitled to
224	224	supplemental benefits from the law enforcement and custodial
225	225	officer supplemental retirement fund unless the officer transfers
226	226	from a position, without a break in service, that qualifies for
227	227	supplemental retirement benefits from the fund.
228	228	Sec. 422.108. IN-HOUSE GENERAL COUNSEL. The inspector
229	229	general shall employ an in-house general counsel. The general
230	230	counsel must:
231	231	(1) be an attorney licensed to practice law in this
232	232	state;
233	233	(2) be in good standing with the State Bar of Texas;
234	234	and
235	235	(3) have at least five years of continuing experience
236	236	in advising senior executive management in the public or private
237	237	sector on contracts and contract management.
238	238	Sec. 422.109. EXPERTS. Subject to the availability of
239	239	funds, the inspector general and deputy inspectors general may
240	240	contract with certified public accountants, qualified management
241	241	consultants, or other professional experts as necessary to
242	242	independently perform the functions of the office.
243	243	Sec. 422.110. EMPLOYEES; TRAINING. (a) The inspector
244	244	general may appoint, employ, promote, and remove personnel as the
245	245	inspector general considers necessary for the efficient and
246	246	effective administration of the office.
247	247	(b) The inspector general shall train office personnel to
248	248	pursue, efficiently and as necessary, fraud, waste, and abuse cases
249	249	in programs at an agency or in other state or federally funded
250	250	programs implemented, administered, or overseen by or for the
251	251	agency.
252	252	Sec. 422.111. ASSISTANCE BY AGENCY EMPLOYEES. (a) The
253	253	inspector general may require employees of an agency to provide
254	254	information, resources, or other assistance to the office as the
255	255	inspector general considers necessary to fulfill the duties and
256	256	responsibilities imposed on the office under this chapter and other
257	257	law in connection with the investigation of fraud, waste, and abuse
258	258	in the provision of services for programs at an agency or in state
259	259	or federally funded programs implemented, administered, or
260	260	overseen by or for the agency.
261	261	(b) The inspector general or the deputy inspector general
262	262	for the commission may also require employees of any health and
263	263	human services agency to provide assistance under Subsection (a).
264	264	Sec. 422.112. MERIT SYSTEM. (a) The office may establish a
265	265	merit system for its employees.
266	266	(b) The merit system may be maintained in conjunction with
267	267	other agencies that are required by federal law to operate under a
268	268	merit system.
269	269	[Sections 422.113-422.150 reserved for expansion]
270	270	SUBCHAPTER D. GENERAL POWERS AND DUTIES
271	271	Sec. 422.151. GENERAL RESPONSIBILITIES. (a) The office is
272	272	responsible for:
273	273	(1) the investigation of any matter pertaining to or
274	274	involving an agency that receives state or federal funds; and
275	275	(2) the investigation, prevention, and detection of
276	276	criminal misconduct and wrongdoing and of fraud, waste, and abuse,
277	277	as defined in applicable state and federal law, in the provision or
278	278	funding of services by or for an agency or under a program
279	279	implemented, administered, or overseen by or for the agency.
280	280	(b) The inspector general shall set clear objectives,
281	281	priorities, and performance standards for the office that
282	282	emphasize:
283	283	(1) coordinating investigative efforts to
284	284	aggressively recover money;
285	285	(2) allocating resources to cases that have the
286	286	strongest supportive evidence and the greatest potential for
287	287	recovery of money; and
288	288	(3) maximizing opportunities for referral of cases to
289	289	the office of the attorney general in accordance with this chapter
290	290	and other applicable law.
291	291	(c) The inspector general shall investigate allegations of
292	292	fraud, waste, abuse, misconduct, nonfeasance, misfeasance, and
293	293	malfeasance, and violations of this chapter or other law.
294	294	(d) The office may:
295	295	(1) conduct criminal, civil, and administrative
296	296	investigations and initiate reviews of an agency as considered
297	297	appropriate by the inspector general; and
298	298	(2) receive and investigate complaints from any source
299	299	on its own initiative.
300	300	(e) The inspector general shall perform all other duties and
301	301	exercise all other powers granted to the inspector general's office
302	302	by this chapter or another law.
303	303	Sec. 422.152. GENERAL POWERS. The office has all the powers
304	304	necessary or appropriate to carry out its responsibilities and
305	305	functions under this chapter and other law. In addition to
306	306	performing functions and duties otherwise provided by law, the
307	307	office may:
308	308	(1) audit the use and effectiveness of state or
309	309	federal funds, including contract and grant funds, administered by
310	310	a person or an agency;
311	311	(2) conduct reviews, investigations, and inspections
312	312	relating to the funds described by Subdivision (1);
313	313	(3) recommend policies promoting economical and
314	314	efficient administration of the funds described by Subdivision (1)
315	315	and the prevention and detection of fraud, waste, and abuse in
316	316	administration of those funds; and
317	317	(4) conduct internal affairs investigations in
318	318	instances of fraud, waste, and abuse and in instances of misconduct
319	319	by employees, contractors, subcontractors, and vendors.
320	320	Sec. 422.153. RULEMAKING BY INSPECTOR GENERAL. (a)
321	321	Notwithstanding Section 531.0055(e) and any other law, the
322	322	inspector general shall adopt the rules necessary to administer the
323	323	functions of the office, including rules to address the imposition
324	324	of sanctions and penalties for violations and due process
325	325	requirements for imposing sanctions and penalties.
326	326	(b) A rule, standard, or form adopted by an agency that is
327	327	necessary to accomplish the duties of the office is considered to
328	328	also be a rule, standard, or form of the office and remains in
329	329	effect as a rule, standard, or form of the office until changed by
330	330	the inspector general.
331	331	(c) The rules must include standards for the office that
332	332	emphasize:
333	333	(1) coordinating investigative efforts to
334	334	aggressively recover money;
335	335	(2) allocating resources to cases that have the
336	336	strongest supportive evidence and the greatest potential for
337	337	recovery of money; and
338	338	(3) maximizing opportunities for referral of cases to
339	339	the office of the attorney general.
340	340	Sec. 422.154. STATE AUDITOR AUDITS, INVESTIGATIONS, AND
341	341	ACCESS TO INFORMATION NOT IMPAIRED. This subchapter or other law
342	342	related to the operation of the inspector general does not:
343	343	(1) take precedence over the authority of the state
344	344	auditor to conduct audits under Chapter 321 or other law; or
345	345	(2) prohibit the state auditor from conducting an
346	346	audit, investigation, or other review or from having full and
347	347	complete access to all records and other information, including
348	348	witnesses and electronic data, that the state auditor considers
349	349	necessary for the audit, investigation, or other review.
350	350	Sec. 422.155. PUBLIC PAMPHLET. (a) The office shall
351	351	provide information of public interest in the form of a pamphlet
352	352	that describes:
353	353	(1) the functions of the office, including the
354	354	functions of the inspector general;
355	355	(2) the matters or issues that may be subject to an
356	356	investigation or review performed by the office; and
357	357	(3) the manner in which a person may report an
358	358	allegation of fraud, abuse, or criminal wrongdoing to the office.
359	359	(b) The office shall make the information described by
360	360	Subsection (a) available to state officers and employees and to the
361	361	public.
362	362	Sec. 422.156. INTERNET WEBSITE. (a) The office shall
363	363	maintain an Internet website accessible to the public.
364	364	(b) The office shall post in a conspicuous place on the
365	365	office's Internet website the public interest pamphlet prepared
366	366	under Section 422.155.
367	367	(c) The office shall ensure that the office's Internet
368	368	website allows a person to report to the office an allegation of
369	369	fraud, abuse, or criminal wrongdoing related to an agency. A report
370	370	submitted through the office's Internet website, in person, or
371	371	through another means of communication may be anonymous.
372	372	Sec. 422.157. SEAL. The seal of the office shall be a
373	373	five-pointed star in the center with the words "Office of Inspector
374	374	General, State of Texas" engraved around the margin. The seal shall
375	375	be used to authenticate official documents issued by the office.
376	376	Sec. 422.158. EXECUTIVE ORDERS. (a) The governor may issue
377	377	executive orders directing agencies to implement recommendations
378	378	issued by the office for corrective or remedial actions promoting
379	379	the economical and efficient administration of money and the
380	380	detection of fraud.
381	381	(b) The governor shall submit to the lieutenant governor,
382	382	the speaker of the house of representatives, the state auditor, and
383	383	the comptroller a report of the executive orders issued under this
384	384	chapter and the compliance by agencies with those orders.
385	385	Sec. 422.159. DEFENSE BY ATTORNEY GENERAL. The attorney
386	386	general shall defend any action brought against the inspector
387	387	general, a deputy inspector general, or an employee or officer of
388	388	the office as a result of that person's official act or omission,
389	389	whether or not the person has terminated service with the office at
390	390	the time the action is instituted.
391	391	Sec. 422.160. INTERAGENCY COORDINATION. (a) The office
392	392	and the attorney general shall enter into a memorandum of
393	393	understanding to develop and implement joint written procedures for
394	394	processing cases of suspected fraud, waste, or abuse, as those
395	395	terms are defined by state or federal law, or other violations of
396	396	state or federal law under programs at an agency for which a deputy
397	397	inspector general is appointed or in programs at any agency
398	398	receiving state or federal funds that are implemented,
399	399	administered, or overseen by the agency.
400	400	(b) The memorandum of understanding shall require:
401	401	(1) the office and the attorney general to set
402	402	priorities and guidelines for referring cases to appropriate
403	403	agencies or other entities for investigation, prosecution, or other
404	404	disposition to enhance deterrence of fraud, waste, abuse, or other
405	405	violations of state or federal law, including a violation of
406	406	Chapter 102, Occupations Code, in programs and to maximize the
407	407	imposition of penalties, the recovery of money, and the successful
408	408	prosecution of cases;
409	409	(2) the office to refer each case of suspected fraud,
410	410	waste, or abuse to the attorney general not later than the 20th
411	411	business day after the date the office determines that the
412	412	existence of fraud, waste, or abuse is reasonably indicated;
413	413	(3) the attorney general to take appropriate action in
414	414	response to each case referred to the attorney general, which
415	415	action may include direct initiation of prosecution, with the
416	416	consent of the appropriate local district or county attorney,
417	417	direct initiation of civil litigation, referral to an appropriate
418	418	United States attorney, a district attorney, or a county attorney,
419	419	or referral to a collection agency for initiation of civil
420	420	litigation or other appropriate action;
421	421	(4) the office to keep detailed records for cases
422	422	processed by the office or the attorney general, including
423	423	information on the total number of cases processed and, for each
424	424	case:
425	425	(A) the agency and division to which the case is
426	426	referred for investigation;
427	427	(B) the date on which the case is referred; and
428	428	(C) the nature of the suspected fraud, waste, or
429	429	abuse;
430	430	(5) the office to notify each appropriate division of
431	431	the office of the attorney general of each case referred by the
432	432	office of inspector general;
433	433	(6) the attorney general to ensure that information
434	434	relating to each case investigated by the attorney general is
435	435	available to each division of the attorney general's office with
436	436	responsibility for investigating suspected fraud, waste, or abuse;
437	437	(7) the attorney general to notify the office of each
438	438	case the attorney general declines to prosecute or prosecutes
439	439	unsuccessfully;
440	440	(8) representatives of the office and the attorney
441	441	general to meet not less than quarterly to share case information
442	442	and determine the appropriate agency and division to investigate
443	443	each case; and
444	444	(9) the office and the attorney general to submit
445	445	information requested by the comptroller about each resolved case
446	446	for the comptroller's use in improving fraud detection.
447	447	(c) An exchange of information under this section between
448	448	the attorney general and the office or any other agency does not
449	449	affect whether the information is subject to disclosure under
450	450	Chapter 552.
451	451	(d) With respect to Medicaid fraud, in addition to the
452	452	provisions required by Subsection (b), the memorandum of
453	453	understanding required by this section must also ensure that no
454	454	barriers to direct fraud referrals to the attorney general's
455	455	Medicaid fraud control unit or unreasonable impediments to
456	456	communication between Medicaid agency employees and the Medicaid
457	457	fraud control unit are imposed and must include procedures to
458	458	facilitate the referral of cases directly to the attorney general.
459	459	Sec. 422.161. INFORMATION AND TECHNOLOGY. The office may
460	460	obtain information or technology necessary to enable the office to
461	461	meet its responsibilities under this chapter or other law.
462	462	[Sections 422.162-422.200 reserved for expansion]
463	463	SUBCHAPTER E. REVIEWS, INVESTIGATIONS, AND AUDITS
464	464	Sec. 422.201. REVIEW, INVESTIGATION, AND AUDIT AUTHORITY.
465	465	(a) The inspector general may evaluate any activity or operation
466	466	of:
467	467	(1) an agency;
468	468	(2) a provider, in connection with an activity listed
469	469	in Section 422.002(9) or in connection with the provider's
470	470	relationship with the commission or a health and human services
471	471	agency as defined by Section 531.001; or
472	472	(3) a person in this state in relation to the
473	473	investigation, detection, or prevention of fraud, waste, abuse, or
474	474	employee misconduct in a program at an agency or in a state or
475	475	federally funded program implemented, administered, or overseen by
476	476	or for the agency.
477	477	(b) A review may include an investigation or other inquiry
478	478	into a specific act or allegation of, or a specific financial
479	479	transaction or practice that may involve, impropriety,
480	480	malfeasance, or nonfeasance in the obligation, spending, receipt,
481	481	or other use of state or federal money.
482	482	(c) The office shall conduct reviews and inspections to
483	483	protect the public and detect and prevent fraud, waste, and abuse in
484	484	the provision or funding of services or programs by or for an
485	485	agency.
486	486	(d) An agency or the governing body or governing officer of
487	487	an agency may not impair or prohibit the inspector general from
488	488	initiating or completing a review.
489	489	(e) With respect to an agency, the inspector general may
490	490	audit and review the use and effectiveness of state or federal
491	491	funds, including contract and grant funds, administered by a person
492	492	or agency receiving the funds in connection with an agency or state
493	493	or federally funded program implemented, administered, or overseen
494	494	by or for the agency.
495	495	Sec. 422.202. CLAIMS CRITERIA FOR INVESTIGATIONS. The
496	496	office by rule shall set specific claims criteria that, when met,
497	497	require the office to begin an investigation.
498	498	Sec. 422.203. INITIATION OF REVIEW. The inspector general
499	499	may initiate a review:
500	500	(1) on the inspector general's own initiative;
501	501	(2) at the request of an agency or the governing body
502	502	or governing officer of the agency; or
503	503	(3) based on a complaint from any source concerning a
504	504	matter described by Section 422.201.
505	505	Sec. 422.204. ACCESS TO INFORMATION. (a) To further a
506	506	review conducted by the office, the inspector general or a deputy
507	507	inspector general is entitled to access all books, records,
508	508	accounts, documents, reports, vouchers, databases, systems, or
509	509	other information, including confidential information, electronic
510	510	data, and internal records relevant to the functions of the office
511	511	that are maintained by or for a person, agency, or provider, if
512	512	applicable, in connection with an agency or a state or federally
513	513	funded program implemented, administered, or overseen by or for the
514	514	agency. The inspector general's authority under this subsection
515	515	supersedes any claim of privilege.
516	516	(b) The inspector general or deputy inspector general may
517	517	not access data or other information the release of which is
518	518	restricted under federal law unless the appropriate federal agency
519	519	approves the release to the office or its agent.
520	520	Sec. 422.205. COOPERATION REQUIRED. To further a review
521	521	conducted by the inspector general's office, the inspector general
522	522	or deputy inspector general may require medical or other
523	523	professional assistance from an agency or an auditor, accountant,
524	524	or other employee of the agency.
525	525	Sec. 422.206. EMPLOYEE REPORTS. The inspector general may
526	526	require employees at an agency to report to the office information
527	527	regarding fraud, waste, misuse or abuse of funds or resources,
528	528	corruption, or illegal acts.
529	529	Sec. 422.207. SUBPOENAS. (a) The inspector general may
530	530	issue a subpoena to compel the attendance of a relevant witness at a
531	531	hearing or deposition under this chapter or to compel the
532	532	production, for inspection or copying, of books, papers, records,
533	533	documents, or other relevant materials, including electronic data,
534	534	in connection with a review, hearing, or deposition conducted under
535	535	this chapter. The inspector general may issue a subpoena for the
536	536	records of any person receiving any funds from an agency under a
537	537	contract for the delivery of goods or services to this state.
538	538	(b) The inspector general may delegate the authority to
539	539	issue subpoenas to a deputy inspector general.
540	540	(c) A subpoena may be served personally or by certified
541	541	mail. If a person fails to comply with a subpoena, the inspector
542	542	general, acting through the attorney general, may file suit to
543	543	enforce the subpoena in a district court in this state.
544	544	(d) On finding that good cause exists for issuing the
545	545	subpoena, the court shall order the person to comply with the
546	546	subpoena. The court may hold in contempt a person who fails to obey
547	547	the court order.
548	548	(e) The reimbursement of the expenses of a witness whose
549	549	attendance is compelled under this section is governed by Section
550	550	2001.103.
551	551	(f) Nothing in this section limits or alters a person's
552	552	rights under state or federal law.
553	553	Sec. 422.208. INTERNAL AUDITOR. (a) In this section,
554	554	"internal auditor" means a person appointed under Section 2102.006.
555	555	(b) The internal auditor for an agency shall provide the
556	556	inspector general with a copy of the agency's internal audit plan
557	557	to:
558	558	(1) assist in the coordination of efforts between the
559	559	inspector general and the internal auditor; and
560	560	(2) limit duplication of effort regarding reviews by
561	561	the inspector general and internal auditor.
562	562	(c) The internal auditor shall provide to the inspector
563	563	general all final audit reports concerning audits of any:
564	564	(1) part or division of the agency;
565	565	(2) contract, procurement, or grant; and
566	566	(3) program conducted by the agency.
567	567	Sec. 422.209. COOPERATION WITH LAW ENFORCEMENT OFFICIALS
568	568	AND OTHER ENTITIES. (a) The inspector general may provide
569	569	information and evidence relating to criminal acts to the state
570	570	auditor's office and appropriate law enforcement officials.
571	571	(b) The inspector general may refer matters for further
572	572	civil, criminal, and administrative action to appropriate
573	573	administrative and prosecutorial agencies, including the attorney
574	574	general.
575	575	(c) The inspector general may enter into a memorandum of
576	576	understanding with a law enforcement or prosecutorial agency,
577	577	including the attorney general, to assist in conducting a review
578	578	under this chapter.
579	579	(d) The office may conduct joint investigations with the
580	580	attorney general or law enforcement agencies.
581	581	(e) The attorney general or prosecutor shall inform the
582	582	inspector general on whether an investigation is ongoing with
583	583	regard to any matter referred by the inspector general.
584	584	(f) The attorney general or a prosecutor that decides not to
585	585	investigate or prosecute a complaint alleging criminal conduct
586	586	referred to the attorney general or prosecutor by the inspector
587	587	general shall promptly notify the inspector general of that
588	588	decision.
589	589	Sec. 422.210. COOPERATION AND COORDINATION WITH STATE
590	590	AUDITOR. (a) The state auditor may, on request of the inspector
591	591	general, provide appropriate information or other assistance to the
592	592	inspector general or office, as determined by the state auditor.
593	593	(b) The inspector general may meet with the state auditor's
594	594	office to coordinate a review conducted under this chapter, share
595	595	information, or schedule work plans.
596	596	(c) The state auditor is entitled to access all information
597	597	maintained by the inspector general, including vouchers,
598	598	electronic data, internal records, and information obtained under
599	599	Section 422.204 or subject to Section 422.253.
600	600	(d) Any information obtained or provided by the state
601	601	auditor under this section is confidential and not subject to
602	602	disclosure under Chapter 552.
603	603	Sec. 422.211. PREVENTION. (a) The inspector general may
604	604	recommend to an agency or the presiding officer of the agency
605	605	policies on:
606	606	(1) promoting economical and efficient administration
607	607	of state or federal funds administered by an individual or entity
608	608	that received the funds from an agency; and
609	609	(2) preventing and detecting fraud, waste, and abuse
610	610	in the administration of those funds.
611	611	(b) The inspector general may provide training or other
612	612	education regarding the prevention of fraud, waste, and abuse to
613	613	employees of an agency. The training or education provided must be
614	614	approved by the presiding officer of the agency.
615	615	Sec. 422.212. AWARD FOR REPORTING FRAUD, WASTE, ABUSE, OR
616	616	OVERCHARGES. (a) If the office determines that the report results
617	617	in the recovery of an administrative or civil penalty imposed by
618	618	law, the office may grant an award to an individual who reports:
619	619	(1) activity that constitutes fraud, waste, or abuse
620	620	of money related to any agency programs or in programs receiving
621	621	state or federal funds that are implemented, administered, or
622	622	overseen by the agency; or
623	623	(2) overcharges in a program described by Subdivision
624	624	(1).
625	625	(b) The office may not grant an award to an individual in
626	626	connection with a report if the office or attorney general had
627	627	independent knowledge of the activity reported by the individual.
628	628	(c) The office shall determine the amount of an award
629	629	granted under this section. The amount may not exceed five percent
630	630	of the amount of the administrative or civil penalty imposed by law
631	631	that resulted from the individual's report.
632	632	(d) In determining the amount of an award granted under this
633	633	section, the office:
634	634	(1) shall consider the importance of the report in
635	635	ensuring the fiscal integrity of the program; and
636	636	(2) may consider whether the individual participated
637	637	in the reported fraud, waste, abuse, or overcharge.
638	638	(e) A person who brings an action under Subchapter C,
639	639	Chapter 36, Human Resources Code, is not eligible for an award under
640	640	this section.
641	641	Sec. 422.213. RULEMAKING BY PRESIDING OFFICER OF AGENCY.
642	642	An agency may adopt rules governing the agency's response to
643	643	reports and referrals from the inspector general on issues
644	644	identified by the inspector general related to the agency or a
645	645	contractor of the agency.
646	646	Sec. 422.214. ALLEGATIONS OF MISCONDUCT AGAINST PRESIDING
647	647	OFFICER. If a review by the inspector general involves allegations
648	648	that a presiding officer of the governing body of an agency, or if
649	649	applicable the single state officer who governs the agency, has
650	650	engaged in misconduct, the inspector general shall report to the
651	651	governor during the review until the report is completed or the
652	652	review is closed without a finding.
653	653	Sec. 422.215. RIGHT TO DECLINE INVESTIGATION. The
654	654	inspector general may decline to investigate a complaint that the
655	655	inspector general determines:
656	656	(1) is trivial, frivolous, or vexatious;
657	657	(2) was not made in good faith;
658	658	(3) is based on a situation for which too much time has
659	659	passed to justify an investigation;
660	660	(4) may not be adequately investigated with the
661	661	resources available, considering established priorities; or
662	662	(5) addresses a matter that is not within the
663	663	inspector general's investigatory authority.
664	664	[Sections 422.216-422.250 reserved for expansion]
665	665	SUBCHAPTER F. REPORTS
666	666	Sec. 422.251. REPORTING OFFICE FINDINGS. Unless the
667	667	findings would compromise an ongoing investigation by the attorney
668	668	general or law enforcement, the inspector general shall report the
669	669	findings of the office in connection with a review conducted under
670	670	this chapter to:
671	671	(1) the presiding officer of the governing body of the
672	672	agency, or if applicable the single state officer who governs the
673	673	agency;
674	674	(2) the governor;
675	675	(3) the lieutenant governor;
676	676	(4) the speaker of the house of representatives;
677	677	(5) the comptroller;
678	678	(6) the state auditor; and
679	679	(7) the attorney general.
680	680	Sec. 422.252. FLAGRANT VIOLATIONS. The inspector general
681	681	may report to the presiding officer of the governing body of the
682	682	agency associated with the review, or if applicable the single
683	683	state officer who governs the agency, the governor, and the state
684	684	auditor a particularly serious or flagrant problem relating to the
685	685	administration of a program, operation of the agency, or
686	686	interference with an inspector general review.
687	687	Sec. 422.253. INFORMATION CONFIDENTIAL. (a) Except as
688	688	provided by this chapter, all information and material compiled by
689	689	the inspector general during a review under this chapter is:
690	690	(1) confidential and not subject to disclosure under
691	691	Chapter 552; and
692	692	(2) not subject to disclosure, discovery, subpoena, or
693	693	other means of legal compulsion for release to anyone other than the
694	694	state auditor's office, the agency that is the subject of a review,
695	695	or the office or its agents involved in the review related to that
696	696	information or material.
697	697	(b) As the inspector general determines appropriate,
698	698	information relating to a review may be disclosed to:
699	699	(1) a law enforcement agency;
700	700	(2) the attorney general;
701	701	(3) the state auditor; or
702	702	(4) the agency that is the subject of a review.
703	703	(c) A person that receives information under Subsection (b)
704	704	may not disclose the information except to the extent that
705	705	disclosure is consistent with the authorized purpose for which the
706	706	person received the information.
707	707	Sec. 422.254. DRAFT OF FINAL REVIEW REPORT; AGENCY
708	708	RESPONSE. (a) Except in cases in which the office has determined
709	709	that potential fraud, waste, or abuse exists, the office shall
710	710	provide a draft of the final review report of any investigation,
711	711	audit, or review of the operations of an agency to the presiding
712	712	officer of the governing body of the agency, or if applicable to the
713	713	single state officer who governs the agency, before publishing the
714	714	office's final review report.
715	715	(b) The agency may provide a response to the office's draft
716	716	report in the manner prescribed by the office not later than the
717	717	10th day after the date the draft report is received by the agency.
718	718	The inspector general by rule shall specify the format of and
719	719	requirements for the agency response.
720	720	(c) Notwithstanding Subsection (a), the office may not
721	721	provide a draft report to the presiding officer of the governing
722	722	body of the agency, or if applicable to the single state officer who
723	723	governs the agency, if in the inspector general's opinion providing
724	724	the draft report could negatively affect any anticipated civil or
725	725	criminal proceedings.
726	726	(d) The office may include any portion of the agency's
727	727	response in the office's final report.
728	728	Sec. 422.255. FINAL REVIEW REPORTS; AGENCY RESPONSE. (a)
729	729	The inspector general shall prepare a final report for each review
730	730	conducted under this chapter. The final report must include:
731	731	(1) a summary of the activities performed by the
732	732	inspector general in conducting the review;
733	733	(2) a determination of whether wrongdoing was found;
734	734	and
735	735	(3) a description of any findings of wrongdoing.
736	736	(b) The inspector general's final review reports are
737	737	subject to disclosure under Chapter 552.
738	738	(c) All working papers and other documents related to
739	739	compiling the final review reports remain confidential and are not
740	740	subject to disclosure under Chapter 552.
741	741	(d) Not later than the 60th day after the date the office
742	742	issues a final report that identifies deficiencies or
743	743	inefficiencies in, or recommends corrective measures in the
744	744	operations of, an agency, the agency shall file a response that
745	745	includes:
746	746	(1) an implementation plan and timeline for
747	747	implementing corrective measures; or
748	748	(2) the agency's rationale for declining to implement
749	749	corrective measures for the identified deficiencies or
750	750	inefficiencies or the office's recommended corrective measures, as
751	751	applicable.
752	752	Sec. 422.256. COSTS. (a) The inspector general shall
753	753	maintain information regarding the cost of reviews.
754	754	(b) The inspector general may cooperate with appropriate
755	755	administrative and prosecutorial agencies, including the attorney
756	756	general, in recovering costs incurred under this chapter from
757	757	nongovernmental entities, including contractors or individuals
758	758	involved in:
759	759	(1) violations of applicable state or federal rules or
760	760	statutes;
761	761	(2) abusive or wilful misconduct; or
762	762	(3) violations of a provider contract or program
763	763	policy.
764	764	Sec. 422.257. SEMIANNUAL REPORT; LEGISLATIVE REPORT. (a)
765	765	The office shall prepare and submit a semiannual report to the
766	766	governor, the lieutenant governor, the speaker of the house of
767	767	representatives, the state auditor, the comptroller, and each
768	768	member of the legislature concerning:
769	769	(1) any completed final review; and
770	770	(2) the activities of the office and the attorney
771	771	general in detecting and preventing fraud, waste, and abuse under
772	772	any agency programs or in programs receiving state or federal funds
773	773	that are implemented, administered, or overseen by an agency that
774	774	is reviewed by the office under this chapter.
775	775	(b) Not later than December 1 of each even-numbered year,
776	776	the office shall issue to each member of the legislature a report
777	777	that contains the information required under Subsection (a) for the
778	778	two years immediately preceding the legislative session. The
779	779	office shall make the report available to the public.
780	780	[Sections 422.258-422.300 reserved for expansion]
781	781	SUBCHAPTER G. HEALTH AND HUMAN SERVICES POWERS AND DUTIES
782	782	Sec. 422.301. GENERAL HEALTH AND HUMAN SERVICES POWERS.
783	783	The office has all the powers necessary or appropriate to carry out
784	784	its responsibilities and functions under this chapter and other law
785	785	in relation to health and human services matters. In addition to
786	786	performing functions and duties otherwise provided by law, the
787	787	office may provide for coordination between the office and special
788	788	investigative units formed by managed care organizations under
789	789	Section 531.113 or entities with which managed care organizations
790	790	contract under that section.
791	791	Sec. 422.302. HEALTH AND HUMAN SERVICES RESPONSIBILITIES.
792	792	The office is responsible for:
793	793	(1) the investigation of fraud, waste, and abuse in
794	794	the provision or funding of health or human services by this state;
795	795	(2) the enforcement of state law relating to the
796	796	provision of those services to protect the public; and
797	797	(3) the prevention and detection of crime relating to
798	798	the provision of those services.
799	799	Sec. 422.303. INTEGRITY REVIEW FOR MEDICAID PROGRAM. (a)
800	800	The deputy inspector general designated for the commission shall
801	801	conduct an integrity review to determine whether there is
802	802	sufficient basis to warrant a full investigation on receipt of any
803	803	complaint of fraud, waste, or abuse of funds in the state Medicaid
804	804	program from any source.
805	805	(b) An integrity review under this section must begin not
806	806	later than the 30th day after the date the office receives a
807	807	complaint or has reason to believe that Medicaid fraud, waste, or
808	808	abuse has occurred. An integrity review shall be completed not
809	809	later than the 90th day after the date the review began.
810	810	(c) If the findings of an integrity review give the office
811	811	reason to believe that an incident of fraud involving possible
812	812	criminal conduct has occurred in the state Medicaid program, the
813	813	office must take the following action, as appropriate, not later
814	814	than the 30th day after the completion of the integrity review:
815	815	(1) if a provider is suspected of fraud involving
816	816	criminal conduct, the office must refer the case to the state's
817	817	Medicaid fraud control unit, provided that the criminal referral
818	818	does not preclude the office from continuing its investigation of
819	819	the provider or preclude the imposition of appropriate
820	820	administrative or civil sanctions; or
821	821	(2) if there is reason to believe that a recipient of
822	822	funds has defrauded the Medicaid program, the office may conduct a
823	823	full investigation of the suspected fraud.
824	824	Sec. 422.304. REFERRAL TO STATE MEDICAID FRAUD CONTROL
825	825	UNIT. (a) At the time the office learns or has reason to suspect
826	826	that a health or human services provider's records related to
827	827	participation in the state Medicaid program are being withheld,
828	828	concealed, destroyed, fabricated, or in any way falsified, the
829	829	office shall immediately refer the case to the state's Medicaid
830	830	fraud control unit.
831	831	(b) A criminal referral under Subsection (a) does not
832	832	preclude the office from continuing its investigation of a health
833	833	or human services provider or the imposition of appropriate
834	834	administrative or civil sanctions.
835	835	Sec. 422.305. HOLD ON CLAIM REIMBURSEMENT PAYMENT;
836	836	EXCLUSION FROM PROGRAMS. (a) In addition to other instances
837	837	authorized under state or federal law, the office shall impose
838	838	without prior notice a hold on payment of claims for reimbursement
839	839	submitted by a health or human services provider to compel
840	840	production of records related to participation in the state
841	841	Medicaid program or on request of the state's Medicaid fraud
842	842	control unit, as applicable.
843	843	(b) The office must notify the health or human services
844	844	provider of the hold on payment not later than the fifth working day
845	845	after the date the payment hold is imposed.
846	846	(c) The office shall, in consultation with the state's
847	847	Medicaid fraud control unit, establish guidelines under which holds
848	848	on payment or exclusions from a health and human services program:
849	849	(1) may permissively be imposed on a health or human
850	850	services provider; or
851	851	(2) shall automatically be imposed on a provider.
852	852	(d) A health or human services provider subject to a hold on
853	853	payment or excluded from a program under this section is entitled to
854	854	a hearing on the hold or exclusion. A hearing under this subsection
855	855	is a contested case hearing under Chapter 2001. The State Office of
856	856	Administrative Hearings shall conduct the hearing. After the
857	857	hearing, the office, subject to judicial review, shall make a final
858	858	determination. The commission, a health and human services agency,
859	859	and the attorney general are entitled to intervene as parties in the
860	860	contested case.
861	861	Sec. 422.306. REQUEST FOR EXPEDITED HEARING. (a) On timely
862	862	written request by a health or human services provider subject to a
863	863	hold on payment under Section 422.305, other than a hold requested
864	864	by the state's Medicaid fraud control unit, the office shall file a
865	865	request with the State Office of Administrative Hearings for an
866	866	expedited administrative hearing regarding the hold.
867	867	(b) The health or human services provider must request an
868	868	expedited hearing not later than the 10th day after the date the
869	869	provider receives notice from the office under Section 422.305(b).
870	870	Sec. 422.307. INFORMAL RESOLUTION. (a) The inspector
871	871	general shall adopt rules that allow a health or human services
872	872	provider subject to a hold on payment under Section 422.305, other
873	873	than a hold requested by the state's Medicaid fraud control unit, to
874	874	seek an informal resolution of the issues identified by the office
875	875	in the notice provided under that section.
876	876	(b) A health or human services provider that seeks an
877	877	informal resolution must do so not later than the 10th day after the
878	878	date the provider receives notice from the office under Section
879	879	422.305(b).
880	880	(c) A health or human services provider's decision to seek
881	881	an informal resolution does not extend the time by which the
882	882	provider must request an expedited administrative hearing under
883	883	Section 422.306.
884	884	(d) A hearing initiated under Section 422.305 shall be
885	885	stayed at the office's request until the informal resolution
886	886	process is completed.
887	887	[Sections 422.308-422.450 reserved for expansion]
888	888	SUBCHAPTER J. PENALTIES
889	889	Sec. 422.451. ADMINISTRATIVE OR CIVIL PENALTY; INJUNCTION.
890	890	(a) The office may request that the attorney general obtain an
891	891	injunction to prevent a person from disposing of an asset
892	892	identified by the office as potentially subject to recovery by the
893	893	office due to the person's fraud, waste, or abuse.
894	894	(b) The office may act for an agency in assessing
895	895	administrative or civil penalties the agency is authorized to
896	896	assess under applicable law if:
897	897	(1) the inspector general is required to designate a
898	898	deputy inspector general for the agency under Section 422.106;
899	899	(2) the agency is a health and human services agency as
900	900	defined by Section 531.001; or
901	901	(3) the penalty is imposed in connection with fraud,
902	902	waste, or abuse in the use of state or federal funds.
903	903	(c) If the office imposes an administrative or civil penalty
904	904	under Subsection (b) for an agency:
905	905	(1) the agency may not impose an administrative or
906	906	civil penalty against the same person for the same violation; and
907	907	(2) the office shall impose the penalty under
908	908	applicable rules of the office, this chapter, and applicable laws
909	909	governing the imposition of a penalty by the agency.
910	910	SECTION 2. Chapter 321, Government Code, is amended by
911	911	adding Section 321.024 to read as follows:
912	912	Sec. 321.024. FEDERAL STIMULUS MONEY RESPONSIBILITIES. (a)
913	913	The state auditor has oversight responsibility for any federal
914	914	stimulus funds the state receives under the American Recovery and
915	915	Reinvestment Act of 2009 (Pub. L. No. 111-5). The state auditor may
916	916	audit any matter relating to or involving a department that
917	917	receives federal stimulus funds.
918	918	(b) The state auditor may request assistance of the office
919	919	of inspector general established under Chapter 422 for an audit
920	920	conducted under this section.
921	921	SECTION 3. Section 493.019, Government Code, is amended to
922	922	read as follows:
923	923	Sec. 493.019. ENFORCEMENT OFFICERS. In accordance with
924	924	Section 422.107, the [The] inspector general appointed under
925	925	Chapter 422 may appoint employees who are certified by the
926	926	Commission on Law Enforcement Officer Standards and Education as
927	927	qualified to be peace officers to serve under the direction of the
928	928	inspector general and assist the inspector general in performing
929	929	the enforcement duties of the department.
930	930	SECTION 4. Section 493.026, Government Code, as added by
931	931	Chapter 263 (S.B. 103), Acts of the 80th Legislature, Regular
932	932	Session, 2007, is renumbered as Section 493.028, Government Code,
933	933	and amended to read as follows:
934	934	Sec. 493.028 [493.026]. INSPECTOR GENERAL REPORT ON
935	935	CRIMINAL OFFENSES. (a) In this section, "special prosecution
936	936	unit" means the special prosecution unit established under
937	937	Subchapter E, Chapter 41.
938	938	(b) The inspector general appointed under Chapter 422 [of
939	939	the department] shall on a quarterly basis prepare and deliver to
940	940	the board of directors of the special prosecution unit a report
941	941	concerning any alleged criminal offense concerning the department
942	942	and described by Article 104.003(a), Code of Criminal Procedure,
943	943	that occurred during the preceding calendar quarter.
944	944	SECTION 5. Section 501.174, Government Code, is amended to
945	945	read as follows:
946	946	Sec. 501.174. DEPARTMENT TO ADOPT POLICY. The department
947	947	shall adopt a policy providing for:
948	948	(1) a designated administrator at each correctional
949	949	facility to post information throughout the facility describing how
950	950	an inmate may confidentially contact the ombudsperson regarding a
951	951	sexual assault;
952	952	(2) an inmate to write a confidential letter to the
953	953	ombudsperson regarding a sexual assault;
954	954	(3) employees at correctional facilities, on
955	955	notification of the occurrence of a sexual assault, to immediately:
956	956	(A) contact the ombudsperson and the office of
957	957	the inspector general; and
958	958	(B) ensure that the alleged victim is safe;
959	959	(4) the office of the inspector general established
960	960	under Chapter 422, at the time the office is notified of the sexual
961	961	assault, to arrange for a medical examination of the alleged victim
962	962	to be conducted in accordance with Article 56.06, Code of Criminal
963	963	Procedure, or, if an appropriate employee of the office of the
964	964	inspector general is not available at the time the office is
965	965	notified of the sexual assault, a qualified employee at the
966	966	correctional facility to conduct a medical examination of the
967	967	alleged victim in accordance with Article 56.06, Code of Criminal
968	968	Procedure;
969	969	(5) a grievance proceeding under Section 501.008 based
970	970	on an alleged sexual assault to be exempt from any deadline
971	971	applicable to grievances initiated under that section; and
972	972	(6) each correctional facility to collect statistics
973	973	on all alleged sexual assaults against inmates confined in the
974	974	facility and to report the statistics to the ombudsperson.
975	975	SECTION 6. Section 501.176(b), Government Code, is amended
976	976	to read as follows:
977	977	(b) The report must include public information regarding:
978	978	(1) each investigation and monitoring activity
979	979	relating to sexual assault completed during the fiscal year by the
980	980	ombudsperson and the inspector general appointed under Chapter 422;
981	981	and
982	982	(2) statistics collected by the ombudsperson
983	983	regarding allegations of sexual assault.
984	984	SECTION 7. Section 501.177, Government Code, is amended to
985	985	read as follows:
986	986	Sec. 501.177. STATE AUDITOR AUDITS, INVESTIGATIONS, AND
987	987	ACCESS TO INFORMATION NOT IMPAIRED. This subchapter or other law
988	988	related to the operation of the ombudsperson or related to the
989	989	office of the inspector general established under Chapter 422 does
990	990	not prohibit the state auditor from conducting an audit,
991	991	investigation, or other review or from having full and complete
992	992	access to all records and other information, including witnesses
993	993	and electronic data, that the state auditor considers necessary for
994	994	the audit, investigation, or other review.
995	995	SECTION 8. Section 501.178, Government Code, is amended to
996	996	read as follows:
997	997	Sec. 501.178. AUTHORITY OF STATE AUDITOR TO CONDUCT TIMELY
998	998	AUDITS NOT IMPAIRED. This subchapter or other law related to the
999	999	operation of the ombudsperson or of the office of the inspector
1000	1000	general established under Chapter 422 does not take precedence over
1001	1001	the authority of the state auditor to conduct an audit under Chapter
1002	1002	321 or other law.
1003	1003	SECTION 9. Section 531.001, Government Code, is amended by
1004	1004	adding Subdivision (4-a) to read as follows:
1005	1005	(4-a) "Office of inspector general" means the office
1006	1006	of inspector general established under Chapter 422.
1007	1007	SECTION 10. Section 531.008(c), Government Code, is amended
1008	1008	to read as follows:
1009	1009	(c) The executive commissioner shall establish the
1010	1010	following divisions and offices within the commission:
1011	1011	(1) the eligibility services division to make
1012	1012	eligibility determinations for services provided through the
1013	1013	commission or a health and human services agency related to:
1014	1014	(A) the child health plan program;
1015	1015	(B) the financial assistance program under
1016	1016	Chapter 31, Human Resources Code;
1017	1017	(C) the medical assistance program under Chapter
1018	1018	32, Human Resources Code;
1019	1019	(D) the nutritional assistance programs under
1020	1020	Chapter 33, Human Resources Code;
1021	1021	(E) long-term care services, as defined by
1022	1022	Section 22.0011, Human Resources Code;
1023	1023	(F) community-based support services identified
1024	1024	or provided in accordance with Section 531.02481; and
1025	1025	(G) other health and human services programs, as
1026	1026	appropriate;
1027	1027	(2) [the office of inspector general to perform fraud
1028	1028	and abuse investigation and enforcement functions as provided by
1029	1029	Subchapter C and other law;
1030	1030	[(3)] the office of the ombudsman to:
1031	1031	(A) provide dispute resolution services for the
1032	1032	commission and the health and human services agencies; and
1033	1033	(B) perform consumer protection functions
1034	1034	related to health and human services;
1035	1035	(3) [(4)] a purchasing division as provided by Section
1036	1036	531.017; and
1037	1037	(4) [(5)] an internal audit division to conduct a
1038	1038	program of internal auditing in accordance with [Government Code,]
1039	1039	Chapter 2102.
1040	1040	SECTION 11. Section 531.1031(a)(2), Government Code, is
1041	1041	amended to read as follows:
1042	1042	(2) "Participating agency" means:
1043	1043	(A) the Medicaid fraud enforcement divisions of
1044	1044	the office of the attorney general; [and]
1045	1045	(B) each board or agency with authority to
1046	1046	license, register, regulate, or certify a health care professional
1047	1047	or managed care organization that may participate in the state
1048	1048	Medicaid program; and
1049	1049	(C) the office of inspector general.
1050	1050	SECTION 12. Section 531.104(a), Government Code, is amended
1051	1051	to read as follows:
1052	1052	(a) The office of inspector general [commission] and the
1053	1053	attorney general shall execute a memorandum of understanding under
1054	1054	which the office [commission] shall provide investigative support
1055	1055	as required to the attorney general in connection with cases under
1056	1056	Subchapter B, Chapter 36, Human Resources Code. Under the
1057	1057	memorandum of understanding, the office [commission] shall assist
1058	1058	in performing preliminary investigations and ongoing
1059	1059	investigations for actions prosecuted by the attorney general under
1060	1060	Subchapter C, Chapter 36, Human Resources Code.
1061	1061	SECTION 13. Section 531.105, Government Code, is amended to
1062	1062	read as follows:
1063	1063	Sec. 531.105. FRAUD DETECTION TRAINING. (a) The office of
1064	1064	inspector general [commission] shall develop and implement a
1065	1065	program to provide annual training to contractors who process
1066	1066	Medicaid claims and appropriate staff of the health and human
1067	1067	services agencies [Texas Department of Health and the Texas
1068	1068	Department of Human Services] in identifying potential cases of
1069	1069	fraud, waste, or abuse under the state Medicaid program. The
1070	1070	training provided to the contractors and staff must include clear
1071	1071	criteria that specify:
1072	1072	(1) the circumstances under which a person should
1073	1073	refer a potential case to the office [commission]; and
1074	1074	(2) the time by which a referral should be made.
1075	1075	(b) The commission and other health and human services
1076	1076	agencies [Texas Department of Health and the Texas Department of
1077	1077	Human Services], in cooperation with the office of inspector
1078	1078	general [commission], shall periodically set a goal of the number
1079	1079	of potential cases of fraud, waste, or abuse under the state
1080	1080	Medicaid program that each agency will attempt to identify and
1081	1081	refer to the office [commission]. [The commission shall include
1082	1082	information on the agencies' goals and the success of each agency in
1083	1083	meeting the agency's goal in the report required by Section
1084	1084	531.103(c).]
1085	1085	SECTION 14. Sections 531.106(a), (b), (d), (e), (f), and
1086	1086	(g), Government Code, are amended to read as follows:
1087	1087	(a) The office of inspector general [commission] shall use
1088	1088	learning or neural network technology to identify and deter fraud,
1089	1089	waste, and abuse in the Medicaid program throughout this state.
1090	1090	(b) The office of inspector general [commission] shall
1091	1091	contract with a private or public entity to develop and implement
1092	1092	the technology. The office [commission] may require the entity it
1093	1093	contracts with to install and operate the technology at locations
1094	1094	specified by the office [commission, including commission
1095	1095	offices].
1096	1096	(d) The office of inspector general [commission] shall
1097	1097	require each health and human services agency that performs any
1098	1098	aspect of the state Medicaid program to participate in the
1099	1099	implementation and use of the technology.
1100	1100	(e) The office of inspector general [commission] shall
1101	1101	maintain all information necessary to apply the technology to
1102	1102	claims data covering a period of at least two years.
1103	1103	(f) Cases [The commission shall refer cases] identified by
1104	1104	the technology shall be referred to the [commission's] office of
1105	1105	inspector general [investigations and enforcement] or the office of
1106	1106	the attorney general, as appropriate.
1107	1107	(g) Each month, the learning or neural network technology
1108	1108	implemented under this section must match bureau of vital
1109	1109	statistics death records with Medicaid claims filed by a provider.
1110	1110	If the commission or the office of inspector general determines
1111	1111	that a provider has filed a claim for services provided to a person
1112	1112	after the person's date of death, as determined by the bureau of
1113	1113	vital statistics death records, [the commission shall refer] the
1114	1114	case shall be referred for investigation to the office of inspector
1115	1115	general or the office of the attorney general, as appropriate [to
1116	1116	the commission's office of investigations and enforcement].
1117	1117	SECTION 15. Section 531.1061, Government Code, is amended
1118	1118	to read as follows:
1119	1119	Sec. 531.1061. FRAUD INVESTIGATION TRACKING SYSTEM. (a)
1120	1120	The office of inspector general [commission] shall use an automated
1121	1121	fraud investigation tracking system [through the commission's
1122	1122	office of investigations and enforcement] to monitor the progress
1123	1123	of an investigation of suspected fraud, waste, abuse, or
1124	1124	insufficient quality of care under the state Medicaid program.
1125	1125	(b) For each case of suspected fraud, waste, abuse, or
1126	1126	insufficient quality of care identified by the learning or neural
1127	1127	network technology required under Section 531.106, the automated
1128	1128	fraud investigation tracking system must:
1129	1129	(1) receive electronically transferred records
1130	1130	relating to the identified case from the learning or neural network
1131	1131	technology;
1132	1132	(2) record the details and monitor the status of an
1133	1133	investigation of the identified case, including maintaining a
1134	1134	record of the beginning and completion dates for each phase of the
1135	1135	case investigation;
1136	1136	(3) generate documents and reports related to the
1137	1137	status of the case investigation; and
1138	1138	(4) generate standard letters to a provider regarding
1139	1139	the status or outcome of an investigation.
1140	1140	(c) The office of inspector general may [commission shall]
1141	1141	require each health and human services agency that performs any
1142	1142	aspect of the state Medicaid program to participate in the
1143	1143	implementation and use of the automated fraud investigation
1144	1144	tracking system.
1145	1145	SECTION 16. Section 531.1062(a), Government Code, is
1146	1146	amended to read as follows:
1147	1147	(a) The office of inspector general [commission] shall use
1148	1148	an automated recovery monitoring system to monitor the collections
1149	1149	process for a settled case of fraud, waste, abuse, or insufficient
1150	1150	quality of care under the state Medicaid program.
1151	1151	SECTION 17. Sections 531.107(a), (b), and (f), Government
1152	1152	Code, are amended to read as follows:
1153	1153	(a) The Medicaid and Public Assistance Fraud Oversight Task
1154	1154	Force advises and assists the [commission and the commission's]
1155	1155	office of inspector general [investigations and enforcement] in
1156	1156	improving the efficiency of fraud investigations and collections.
1157	1157	(b) The task force is composed of a representative of the:
1158	1158	(1) attorney general's office, appointed by the
1159	1159	attorney general;
1160	1160	(2) comptroller's office, appointed by the
1161	1161	comptroller;
1162	1162	(3) Department of Public Safety, appointed by the
1163	1163	public safety director;
1164	1164	(4) state auditor's office, appointed by the state
1165	1165	auditor;
1166	1166	(5) office of inspector general [commission],
1167	1167	appointed by the inspector general [commissioner of health and
1168	1168	human services];
1169	1169	(6) [Texas] Department of Aging and Disability [Human]
1170	1170	Services, appointed by the commissioner of aging and disability
1171	1171	[human] services;
1172	1172	(7) Texas Department of Insurance, appointed by the
1173	1173	commissioner of insurance; and
1174	1174	(8) [Texas] Department of State Health Services,
1175	1175	appointed by the commissioner of state [public] health services.
1176	1176	(f) At least once each fiscal quarter, the [commission's]
1177	1177	office of inspector general [investigations and enforcement] shall
1178	1178	provide to the task force:
1179	1179	(1) information detailing:
1180	1180	(A) the number of fraud referrals made to the
1181	1181	office and the origin of each referral;
1182	1182	(B) the time spent investigating each case;
1183	1183	(C) the number of cases investigated each month,
1184	1184	by program and region;
1185	1185	(D) the dollar value of each fraud case that
1186	1186	results in a criminal conviction; and
1187	1187	(E) the number of cases the office rejects and
1188	1188	the reason for rejection, by region; and
1189	1189	(2) any additional information the task force
1190	1190	requires.
1191	1191	SECTION 18. Sections 531.108 and 531.109, Government Code,
1192	1192	are amended to read as follows:
1193	1193	Sec. 531.108. FRAUD PREVENTION. (a) [The commission's
1194	1194	office of investigations and enforcement shall compile and
1195	1195	disseminate accurate information and statistics relating to:
1196	1196	[(1) fraud prevention; and
1197	1197	[(2) post-fraud referrals received and accepted or
1198	1198	rejected from the commission's case management system or the case
1199	1199	management system of a health and human services agency.
1200	1200	[(b) The commission shall:
1201	1201	[(1) aggressively publicize successful fraud
1202	1202	prosecutions and fraud-prevention programs through all available
1203	1203	means, including the use of statewide press releases issued in
1204	1204	coordination with the Texas Department of Human Services; and
1205	1205	[(2) ensure that a toll-free hotline for reporting
1206	1206	suspected fraud in programs administered by the commission or a
1207	1207	health and human services agency is maintained and promoted, either
1208	1208	by the commission or by a health and human services agency.
1209	1209	[(c)] The office of inspector general [commission] shall
1210	1210	develop a cost-effective method of identifying applicants for
1211	1211	public assistance in counties bordering other states and in
1212	1212	metropolitan areas selected by the office [commission] who are
1213	1213	already receiving benefits in other states. If economically
1214	1214	feasible, the office [commission] may develop a computerized
1215	1215	matching system.
1216	1216	(b) [(d)] The office of inspector general [commission]
1217	1217	shall:
1218	1218	(1) verify automobile information that is used as
1219	1219	criteria for eligibility; and
1220	1220	(2) establish a computerized matching system with the
1221	1221	Texas Department of Criminal Justice to prevent an incarcerated
1222	1222	individual from illegally receiving public assistance benefits
1223	1223	administered by the commission.
1224	1224	(c) [(e)] The office of inspector general [commission]
1225	1225	shall submit to the governor and Legislative Budget Board a
1226	1226	semiannual report on the results of computerized matching of office
1227	1227	and commission information with information from neighboring
1228	1228	states, if any, and information from the Texas Department of
1229	1229	Criminal Justice. The report may be consolidated with any other
1230	1230	report relating to the same subject matter the office [commission]
1231	1231	is required to submit under other law.
1232	1232	Sec. 531.109. SELECTION AND REVIEW OF CLAIMS. (a) The
1233	1233	office of inspector general [commission] shall annually select and
1234	1234	review a random, statistically valid sample of all claims for
1235	1235	reimbursement under the state Medicaid program, including the
1236	1236	vendor drug program, for potential cases of fraud, waste, or abuse.
1237	1237	(b) In conducting the annual review of claims under
1238	1238	Subsection (a), the office of inspector general [commission] may
1239	1239	directly contact a recipient by telephone or in person, or both, to
1240	1240	verify that the services for which a claim for reimbursement was
1241	1241	submitted by a provider were actually provided to the recipient.
1242	1242	(c) Based on the results of the annual review of claims, the
1243	1243	office of inspector general and the commission shall determine the
1244	1244	types of claims at which office and commission resources for fraud,
1245	1245	waste, and abuse detection should be primarily directed.
1246	1246	SECTION 19. Sections 531.110(a), (c), (d), (e), and (f),
1247	1247	Government Code, are amended to read as follows:
1248	1248	(a) The office of inspector general [commission] shall
1249	1249	conduct electronic data matches for a recipient of assistance under
1250	1250	the state Medicaid program at least quarterly to verify the
1251	1251	identity, income, employment status, and other factors that affect
1252	1252	the eligibility of the recipient.
1253	1253	(c) The commission and other health and human services
1254	1254	agencies [Texas Department of Human Services] shall cooperate with
1255	1255	the office of inspector general [commission] by providing data or
1256	1256	any other assistance necessary to conduct the electronic data
1257	1257	matches required by this section.
1258	1258	(d) The office of inspector general [commission] may
1259	1259	contract with a public or private entity to conduct the electronic
1260	1260	data matches required by this section.
1261	1261	(e) The office of inspector general [commission], or a
1262	1262	health and human services agency designated by the office
1263	1263	[commission], by rule shall establish procedures to verify the
1264	1264	electronic data matches conducted by the office [commission] under
1265	1265	this section. Not later than the 20th day after the date the
1266	1266	electronic data match is verified, the commission and other health
1267	1267	and human services agencies [Texas Department of Human Services]
1268	1268	shall remove from eligibility a recipient who is determined to be
1269	1269	ineligible for assistance under the state Medicaid program.
1270	1270	(f) The office of inspector general [commission] shall
1271	1271	report biennially to the legislature the results of the electronic
1272	1272	data matching program. The report must include a summary of the
1273	1273	number of applicants who were removed from eligibility for
1274	1274	assistance under the state Medicaid program as a result of an
1275	1275	electronic data match conducted under this section.
1276	1276	SECTION 20. Section 531.111, Government Code, is amended to
1277	1277	read as follows:
1278	1278	Sec. 531.111. FRAUD DETECTION TECHNOLOGY. The office of
1279	1279	inspector general [commission] may contract with a contractor who
1280	1280	specializes in developing technology capable of identifying
1281	1281	patterns of fraud exhibited by Medicaid recipients to:
1282	1282	(1) develop and implement the fraud detection
1283	1283	technology; and
1284	1284	(2) determine if a pattern of fraud by Medicaid
1285	1285	recipients is present in the recipients' eligibility files
1286	1286	maintained by the commission or other health and human services
1287	1287	agencies [Texas Department of Human Services].
1288	1288	SECTION 21. Section 531.1112, Government Code, is amended
1289	1289	to read as follows:
1290	1290	Sec. 531.1112. STUDY CONCERNING INCREASED USE OF TECHNOLOGY
1291	1291	TO STRENGTHEN FRAUD DETECTION AND DETERRENCE; IMPLEMENTATION. (a)
1292	1292	The commission and the [commission's] office of inspector general
1293	1293	shall jointly study the feasibility of increasing the use of
1294	1294	technology to strengthen the detection and deterrence of fraud in
1295	1295	the state Medicaid program. The study must include the
1296	1296	determination of the feasibility of using technology to verify a
1297	1297	person's citizenship and eligibility for coverage.
1298	1298	(b) The commission shall implement any methods the
1299	1299	commission and the [commission's] office of inspector general
1300	1300	determine are effective at strengthening fraud detection and
1301	1301	deterrence.
1302	1302	SECTION 22. Section 531.113, Government Code, is amended to
1303	1303	read as follows:
1304	1304	Sec. 531.113. MANAGED CARE ORGANIZATIONS: SPECIAL
1305	1305	INVESTIGATIVE UNITS OR CONTRACTS. (a) Each managed care
1306	1306	organization that provides or arranges for the provision of health
1307	1307	care services to an individual under a government-funded program,
1308	1308	including the Medicaid program and the child health plan program,
1309	1309	shall:
1310	1310	(1) establish and maintain a special investigative
1311	1311	unit within the managed care organization to investigate fraudulent
1312	1312	claims and other types of program waste or abuse by recipients and
1313	1313	service providers; or
1314	1314	(2) contract with another entity for the investigation
1315	1315	of fraudulent claims and other types of program waste or abuse by
1316	1316	recipients and service providers.
1317	1317	(b) Each managed care organization subject to this section
1318	1318	shall adopt a plan to prevent and reduce fraud, waste, and abuse and
1319	1319	annually file that plan with the [commission's] office of inspector
1320	1320	general for approval. The plan must include:
1321	1321	(1) a description of the managed care organization's
1322	1322	procedures for detecting and investigating possible acts of fraud,
1323	1323	waste, or abuse;
1324	1324	(2) a description of the managed care organization's
1325	1325	procedures for the mandatory reporting of possible acts of fraud,
1326	1326	waste, or abuse to the [commission's] office of inspector general;
1327	1327	(3) a description of the managed care organization's
1328	1328	procedures for educating and training personnel to prevent fraud,
1329	1329	waste, and abuse;
1330	1330	(4) the name, address, telephone number, and fax
1331	1331	number of the individual responsible for carrying out the plan;
1332	1332	(5) a description or chart outlining the
1333	1333	organizational arrangement of the managed care organization's
1334	1334	personnel responsible for investigating and reporting possible
1335	1335	acts of fraud, waste, or abuse;
1336	1336	(6) a detailed description of the results of
1337	1337	investigations of fraud, waste, and abuse conducted by the managed
1338	1338	care organization's special investigative unit or the entity with
1339	1339	which the managed care organization contracts under Subsection
1340	1340	(a)(2); and
1341	1341	(7) provisions for maintaining the confidentiality of
1342	1342	any patient information relevant to an investigation of fraud,
1343	1343	waste, or abuse.
1344	1344	(c) If a managed care organization contracts for the
1345	1345	investigation of fraudulent claims and other types of program waste
1346	1346	or abuse by recipients and service providers under Subsection
1347	1347	(a)(2), the managed care organization shall file with the
1348	1348	[commission's] office of inspector general:
1349	1349	(1) a copy of the written contract;
1350	1350	(2) the names, addresses, telephone numbers, and fax
1351	1351	numbers of the principals of the entity with which the managed care
1352	1352	organization has contracted; and
1353	1353	(3) a description of the qualifications of the
1354	1354	principals of the entity with which the managed care organization
1355	1355	has contracted.
1356	1356	(d) The [commission's] office of inspector general may
1357	1357	review the records of a managed care organization to determine
1358	1358	compliance with this section.
1359	1359	(e) The inspector general [commissioner] shall adopt rules
1360	1360	as necessary to accomplish the purposes of this section.
1361	1361	SECTION 23. Sections 531.114(b) and (g), Government Code,
1362	1362	are amended to read as follows:
1363	1363	(b) If after an investigation the office of inspector
1364	1364	general [commission] determines that a person violated Subsection
1365	1365	(a), the office [commission] shall:
1366	1366	(1) notify the person of the alleged violation not
1367	1367	later than the 30th day after the date the office [commission]
1368	1368	completes the investigation and provide the person with an
1369	1369	opportunity for a hearing on the matter; or
1370	1370	(2) refer the matter to the appropriate prosecuting
1371	1371	attorney for prosecution.
1372	1372	(g) The inspector general [commission] shall adopt rules as
1373	1373	necessary to implement this section.
1374	1374	SECTION 24. Section 533.001, Government Code, is amended by
1375	1375	adding Subdivision (3-a) to read as follows:
1376	1376	(3-a) "Inspector general" means the inspector general
1377	1377	appointed under Chapter 422.
1378	1378	SECTION 25. Section 533.005(a), Government Code, is amended
1379	1379	to read as follows:
1380	1380	(a) A contract between a managed care organization and the
1381	1381	commission for the organization to provide health care services to
1382	1382	recipients must contain:
1383	1383	(1) procedures to ensure accountability to the state
1384	1384	for the provision of health care services, including procedures for
1385	1385	financial reporting, quality assurance, utilization review, and
1386	1386	assurance of contract and subcontract compliance;
1387	1387	(2) capitation rates that ensure the cost-effective
1388	1388	provision of quality health care;
1389	1389	(3) a requirement that the managed care organization
1390	1390	provide ready access to a person who assists recipients in
1391	1391	resolving issues relating to enrollment, plan administration,
1392	1392	education and training, access to services, and grievance
1393	1393	procedures;
1394	1394	(4) a requirement that the managed care organization
1395	1395	provide ready access to a person who assists providers in resolving
1396	1396	issues relating to payment, plan administration, education and
1397	1397	training, and grievance procedures;
1398	1398	(5) a requirement that the managed care organization
1399	1399	provide information and referral about the availability of
1400	1400	educational, social, and other community services that could
1401	1401	benefit a recipient;
1402	1402	(6) procedures for recipient outreach and education;
1403	1403	(7) a requirement that the managed care organization
1404	1404	make payment to a physician or provider for health care services
1405	1405	rendered to a recipient under a managed care plan not later than the
1406	1406	45th day after the date a claim for payment is received with
1407	1407	documentation reasonably necessary for the managed care
1408	1408	organization to process the claim, or within a period, not to exceed
1409	1409	60 days, specified by a written agreement between the physician or
1410	1410	provider and the managed care organization;
1411	1411	(8) a requirement that the commission, on the date of a
1412	1412	recipient's enrollment in a managed care plan issued by the managed
1413	1413	care organization, inform the organization of the recipient's
1414	1414	Medicaid certification date;
1415	1415	(9) a requirement that the managed care organization
1416	1416	comply with Section 533.006 as a condition of contract retention
1417	1417	and renewal;
1418	1418	(10) a requirement that the managed care organization
1419	1419	provide the information required by Section 533.012 and otherwise
1420	1420	comply and cooperate with the [commission's] office of inspector
1421	1421	general;
1422	1422	(11) a requirement that the managed care
1423	1423	organization's usages of out-of-network providers or groups of
1424	1424	out-of-network providers may not exceed limits for those usages
1425	1425	relating to total inpatient admissions, total outpatient services,
1426	1426	and emergency room admissions determined by the commission;
1427	1427	(12) if the commission finds that a managed care
1428	1428	organization has violated Subdivision (11), a requirement that the
1429	1429	managed care organization reimburse an out-of-network provider for
1430	1430	health care services at a rate that is equal to the allowable rate
1431	1431	for those services, as determined under Sections 32.028 and
1432	1432	32.0281, Human Resources Code;
1433	1433	(13) a requirement that the organization use advanced
1434	1434	practice nurses in addition to physicians as primary care providers
1435	1435	to increase the availability of primary care providers in the
1436	1436	organization's provider network;
1437	1437	(14) a requirement that the managed care organization
1438	1438	reimburse a federally qualified health center or rural health
1439	1439	clinic for health care services provided to a recipient outside of
1440	1440	regular business hours, including on a weekend day or holiday, at a
1441	1441	rate that is equal to the allowable rate for those services as
1442	1442	determined under Section 32.028, Human Resources Code, if the
1443	1443	recipient does not have a referral from the recipient's primary
1444	1444	care physician; and
1445	1445	(15) a requirement that the managed care organization
1446	1446	develop, implement, and maintain a system for tracking and
1447	1447	resolving all provider appeals related to claims payment, including
1448	1448	a process that will require:
1449	1449	(A) a tracking mechanism to document the status
1450	1450	and final disposition of each provider's claims payment appeal;
1451	1451	(B) the contracting with physicians who are not
1452	1452	network providers and who are of the same or related specialty as
1453	1453	the appealing physician to resolve claims disputes related to
1454	1454	denial on the basis of medical necessity that remain unresolved
1455	1455	subsequent to a provider appeal; and
1456	1456	(C) the determination of the physician resolving
1457	1457	the dispute to be binding on the managed care organization and
1458	1458	provider.
1459	1459	SECTION 26. Sections 533.012(a), (b), (c), and (e),
1460	1460	Government Code, are amended to read as follows:
1461	1461	(a) Each managed care organization contracting with the
1462	1462	commission under this chapter shall submit to the office of
1463	1463	inspector general [commission]:
1464	1464	(1) a description of any financial or other business
1465	1465	relationship between the organization and any subcontractor
1466	1466	providing health care services under the contract;
1467	1467	(2) a copy of each type of contract between the
1468	1468	organization and a subcontractor relating to the delivery of or
1469	1469	payment for health care services;
1470	1470	(3) a description of the fraud control program used by
1471	1471	any subcontractor that delivers health care services; and
1472	1472	(4) a description and breakdown of all funds paid to
1473	1473	the managed care organization, including a health maintenance
1474	1474	organization, primary care case management, and an exclusive
1475	1475	provider organization, necessary for the office [commission] to
1476	1476	determine the actual cost of administering the managed care plan.
1477	1477	(b) The information submitted under this section must be
1478	1478	submitted in the form required by the office of inspector general
1479	1479	[commission] and be updated as required by the office [commission].
1480	1480	(c) The office [commission's office] of inspector general
1481	1481	[investigations and enforcement] shall review the information
1482	1482	submitted under this section as appropriate in the investigation of
1483	1483	fraud in the Medicaid managed care program.
1484	1484	(e) Information submitted to the office of inspector
1485	1485	general [commission] under Subsection (a)(1) is confidential and
1486	1486	not subject to disclosure under Chapter 552[, Government Code].
1487	1487	SECTION 27. Section 811.001(9), Government Code, is amended
1488	1488	to read as follows:
1489	1489	(9) "Law enforcement officer" means a member of the
1490	1490	retirement system who:
1491	1491	(A) has been commissioned as a law enforcement
1492	1492	officer by the Department of Public Safety, the Texas Alcoholic
1493	1493	Beverage Commission, the Parks and Wildlife Department, or the
1494	1494	office of inspector general at the Texas Youth Commission or its
1495	1495	successor in function; and
1496	1496	(B) is recognized as a commissioned law
1497	1497	enforcement officer by the Commission on Law Enforcement Officer
1498	1498	Standards and Education.
1499	1499	SECTION 28. Section 814.104(b), Government Code, is amended
1500	1500	to read as follows:
1501	1501	(b) A member who is at least 55 years old and who has at
1502	1502	least 10 years of service credit as a commissioned peace officer
1503	1503	engaged in criminal law enforcement activities of the Department of
1504	1504	Public Safety, the Texas Alcoholic Beverage Commission, the Parks
1505	1505	and Wildlife Department, or the office of inspector general at the
1506	1506	Texas Youth Commission or its successor in function, or as a
1507	1507	custodial officer, is eligible to retire and receive a service
1508	1508	retirement annuity.
1509	1509	SECTION 29. Section 815.505, Government Code, is amended to
1510	1510	read as follows:
1511	1511	Sec. 815.505. CERTIFICATION OF NAMES OF LAW ENFORCEMENT AND
1512	1512	CUSTODIAL OFFICERS. Not later than the 12th day of the month
1513	1513	following the month in which a person begins or ceases employment as
1514	1514	a law enforcement officer or custodial officer, the Public Safety
1515	1515	Commission, the Texas Alcoholic Beverage Commission, the Parks and
1516	1516	Wildlife Commission, the office of inspector general at the Texas
1517	1517	Youth Commission or its successor in function, the Board of Pardons
1518	1518	and Paroles, or the Texas Board of Criminal Justice, as applicable,
1519	1519	shall certify to the retirement system, in the manner prescribed by
1520	1520	the system, the name of the employee and such other information as
1521	1521	the system determines is necessary for the crediting of service and
1522	1522	financing of benefits under this subtitle.
1523	1523	SECTION 30. Section 2054.376(b), Government Code, is
1524	1524	amended to read as follows:
1525	1525	(b) This subchapter does not apply to:
1526	1526	(1) the Department of Public Safety's use for criminal
1527	1527	justice or homeland security purposes of a federal database or
1528	1528	network;
1529	1529	(2) a Texas equivalent of a database or network
1530	1530	described by Subdivision (1) that is managed by the Department of
1531	1531	Public Safety;
1532	1532	(3) the uniform statewide accounting system, as that
1533	1533	term is used in Subchapter C, Chapter 2101;
1534	1534	(4) the state treasury cash and treasury management
1535	1535	system; [or]
1536	1536	(5) a database or network managed by the comptroller
1537	1537	to:
1538	1538	(A) collect and process multiple types of taxes
1539	1539	imposed by the state; or
1540	1540	(B) manage or administer fiscal, financial,
1541	1541	revenue, and expenditure activities of the state under Chapter 403
1542	1542	and Chapter 404; or
1543	1543	(6) the use for criminal justice and statutorily
1544	1544	mandated confidentiality purposes of a federal or state database or
1545	1545	network by the office of inspector general established under
1546	1546	Chapter 422.
1547	1547	SECTION 31. Section 21.014(b), Human Resources Code, is
1548	1548	amended to read as follows:
1549	1549	(b) The [person employed by the department as] inspector
1550	1550	general appointed under Chapter 422, Government Code, shall make
1551	1551	reports to and consult with the agency director [chairman of the
1552	1552	board] regarding:
1553	1553	(1) the selection of internal audit topics;
1554	1554	(2) the establishment of internal audit priorities;
1555	1555	and
1556	1556	(3) the findings of each regular or special internal
1557	1557	audit initiative.
1558	1558	SECTION 32. Section 32.003, Human Resources Code, is
1559	1559	amended by adding Subdivision (5) to read as follows:
1560	1560	(5) "Office of inspector general" means the office of
1561	1561	inspector general established under Chapter 422, Government Code.
1562	1562	SECTION 33. Section 32.0291, Human Resources Code, is
1563	1563	amended to read as follows:
1564	1564	Sec. 32.0291. PREPAYMENT REVIEWS AND POSTPAYMENT HOLDS.
1565	1565	(a) Notwithstanding any other law, the office of inspector general
1566	1566	or department may:
1567	1567	(1) perform a prepayment review of a claim for
1568	1568	reimbursement under the medical assistance program to determine
1569	1569	whether the claim involves fraud, waste, or abuse; and
1570	1570	(2) as necessary to perform that review, withhold
1571	1571	payment of the claim for not more than five working days without
1572	1572	notice to the person submitting the claim.
1573	1573	(b) Notwithstanding any other law, the office of inspector
1574	1574	general [department] may impose a postpayment hold on payment of
1575	1575	future claims submitted by a provider if the office [department]
1576	1576	has reliable evidence that the provider has committed fraud, waste,
1577	1577	abuse, or wilful misrepresentation regarding a claim for
1578	1578	reimbursement under the medical assistance program. The office
1579	1579	[department] must notify the provider of the postpayment hold not
1580	1580	later than the fifth working day after the date the hold is imposed.
1581	1581	(c) On timely written request by a provider subject to a
1582	1582	postpayment hold under Subsection (b), the office of inspector
1583	1583	general [department] shall file a request with the State Office of
1584	1584	Administrative Hearings for an expedited administrative hearing
1585	1585	regarding the hold. The provider must request an expedited hearing
1586	1586	under this subsection not later than the 10th day after the date the
1587	1587	provider receives notice from the office of inspector general
1588	1588	[department] under Subsection (b). The office of inspector general
1589	1589	[department] shall discontinue the hold unless the office
1590	1590	[department] makes a prima facie showing at the hearing that the
1591	1591	evidence relied on by the office of inspector general [department]
1592	1592	in imposing the hold is relevant, credible, and material to the
1593	1593	issue of fraud, waste, abuse, or wilful misrepresentation.
1594	1594	(d) The inspector general [department] shall adopt rules
1595	1595	that allow a provider subject to a postpayment hold under
1596	1596	Subsection (b) to seek an informal resolution of the issues
1597	1597	identified by the office of inspector general [department] in the
1598	1598	notice provided under that subsection. A provider must seek an
1599	1599	informal resolution under this subsection not later than the
1600	1600	deadline prescribed by Subsection (c). A provider's decision to
1601	1601	seek an informal resolution under this subsection does not extend
1602	1602	the time by which the provider must request an expedited
1603	1603	administrative hearing under Subsection (c). However, a hearing
1604	1604	initiated under Subsection (c) shall be stayed at the office's
1605	1605	[department's] request until the informal resolution process is
1606	1606	completed.
1607	1607	SECTION 34. Section 32.032, Human Resources Code, is
1608	1608	amended to read as follows:
1609	1609	Sec. 32.032. PREVENTION AND DETECTION OF FRAUD, WASTE, AND
1610	1610	ABUSE. The inspector general [department] shall adopt reasonable
1611	1611	rules for minimizing the opportunity for fraud, waste, and abuse,
1612	1612	for establishing and maintaining methods for detecting and
1613	1613	identifying situations in which a question of fraud, waste, or
1614	1614	abuse in the program may exist, and for referring cases where fraud,
1615	1615	waste, or abuse appears to exist to the appropriate law enforcement
1616	1616	agencies for prosecution.
1617	1617	SECTION 35. Sections 32.0321(a), (b), (c), and (d), Human
1618	1618	Resources Code, are amended to read as follows:
1619	1619	(a) The office of inspector general [department] by rule may
1620	1620	require each provider of medical assistance in a provider type that
1621	1621	has demonstrated significant potential for fraud or abuse to
1622	1622	file with the office [department] a surety bond in a reasonable
1623	1623	amount. The office [department] by rule shall require a provider of
1624	1624	medical assistance to file with the office [department] a surety
1625	1625	bond in a reasonable amount if the office [department] identifies a
1626	1626	pattern of suspected fraud or abuse involving criminal conduct
1627	1627	relating to the provider's services under the medical assistance
1628	1628	program that indicates the need for protection against potential
1629	1629	future acts of fraud or abuse.
1630	1630	(b) The bond under Subsection (a) must be payable to the
1631	1631	office of inspector general [department] to compensate the office
1632	1632	[department] for damages resulting from or penalties or fines
1633	1633	imposed in connection with an act of fraud or abuse committed by the
1634	1634	provider under the medical assistance program.
1635	1635	(c) Subject to Subsection (d) or (e), the office of
1636	1636	inspector general [department] by rule may require each provider of
1637	1637	medical assistance that establishes a resident's trust fund account
1638	1638	to post a surety bond to secure the account. The bond must be
1639	1639	payable to the office [department] to compensate residents of the
1640	1640	bonded provider for trust funds that are lost, stolen, or otherwise
1641	1641	unaccounted for if the provider does not repay any deficiency in a
1642	1642	resident's trust fund account to the person legally entitled to
1643	1643	receive the funds.
1644	1644	(d) The office of inspector general [department] may not
1645	1645	require the amount of a surety bond posted for a single facility
1646	1646	provider under Subsection (c) to exceed the average of the total
1647	1647	average monthly balance of all the provider's resident trust fund
1648	1648	accounts for the 12-month period preceding the bond issuance or
1649	1649	renewal date.
1650	1650	SECTION 36. Section 32.0322, Human Resources Code, is
1651	1651	amended to read as follows:
1652	1652	Sec. 32.0322. CRIMINAL HISTORY RECORD INFORMATION.
1653	1653	(a) The office of inspector general and the department may obtain
1654	1654	from any law enforcement or criminal justice agency the criminal
1655	1655	history record information that relates to a provider under the
1656	1656	medical assistance program or a person applying to enroll as a
1657	1657	provider under the medical assistance program.
1658	1658	(b) The office of inspector general [department] by rule
1659	1659	shall establish criteria for revoking a provider's enrollment or
1660	1660	denying a person's application to enroll as a provider under the
1661	1661	medical assistance program based on the results of a criminal
1662	1662	history check.
1663	1663	SECTION 37. Section 32.070(d), Human Resources Code, is
1664	1664	amended to read as follows:
1665	1665	(d) This section does not apply to a computerized audit
1666	1666	conducted using the Medicaid Fraud Detection Audit System or an
1667	1667	audit or investigation of fraud, waste, and abuse conducted by the
1668	1668	Medicaid fraud control unit of the office of the attorney general,
1669	1669	the office of the state auditor, the office of [the] inspector
1670	1670	general, or the Office of Inspector General in the United States
1671	1671	Department of Health and Human Services.
1672	1672	SECTION 38. Section 33.015(e), Human Resources Code, is
1673	1673	amended to read as follows:
1674	1674	(e) The department shall require a person exempted under
1675	1675	this section from making a personal appearance at department
1676	1676	offices to provide verification of the person's entitlement to the
1677	1677	exemption on initial eligibility certification and on each
1678	1678	subsequent periodic eligibility recertification. If the person
1679	1679	does not provide verification and the department considers the
1680	1680	verification necessary to protect the integrity of the food stamp
1681	1681	program, the department shall initiate a fraud referral to the
1682	1682	[department's] office of inspector general established under
1683	1683	Chapter 422, Government Code.
1684	1684	SECTION 39. Section 61.001(7), Human Resources Code, is
1685	1685	amended to read as follows:
1686	1686	(7) "Office of inspector general" means the office of
1687	1687	inspector general established under Chapter 422, Government Code
1688	1688	[Section 61.0451].
1689	1689	SECTION 40. Sections 61.0451(a), (d), (f), and (g), Human
1690	1690	Resources Code, are amended to read as follows:
1691	1691	(a) The office of inspector general shall investigate [is
1692	1692	established at the commission for the purpose of investigating]:
1693	1693	(1) crimes committed by commission employees,
1694	1694	including parole officers employed by or under a contract with the
1695	1695	commission; and
1696	1696	(2) crimes and delinquent conduct committed at a
1697	1697	facility operated by the commission or at a residential facility
1698	1698	operated by another entity under a contract with the commission.
1699	1699	(d) The office of inspector general may employ and
1700	1700	commission inspectors [general] as peace officers in accordance
1701	1701	with Section 422.107, Government Code, for the purpose of carrying
1702	1702	out the duties described by this section. An inspector [general]
1703	1703	shall have all of the powers and duties given to peace officers
1704	1704	under Article 2.13, Code of Criminal Procedure.
1705	1705	(f) If the inspector general is not a commissioned peace
1706	1706	officer, the inspector general [The executive commissioner] shall
1707	1707	select a commissioned peace officer as chief inspector [general].
1708	1708	The chief inspector [general] is subject to the requirements of
1709	1709	this section and may only be discharged for cause.
1710	1710	(g) The [chief] inspector general shall on a quarterly basis
1711	1711	prepare and deliver a report concerning the operations of the
1712	1712	office of inspector general to:
1713	1713	(1) the executive commissioner;
1714	1714	(2) the advisory board;
1715	1715	(3) the governor;
1716	1716	(4) the lieutenant governor;
1717	1717	(5) the speaker of the house of representatives;
1718	1718	(6) the standing committees of the senate and house of
1719	1719	representatives with primary jurisdiction over correctional
1720	1720	facilities;
1721	1721	(7) the state auditor; and
1722	1722	(8) the comptroller.
1723	1723	SECTION 41. Sections 61.098(d) and (e), Human Resources
1724	1724	Code, are amended to read as follows:
1725	1725	(d) Notwithstanding Subsection (c), the office of inspector
1726	1726	general shall immediately provide the special prosecution unit with
1727	1727	a report concerning an alleged criminal offense or delinquent
1728	1728	conduct concerning the commission and described by Article
1729	1729	104.003(a), Code of Criminal Procedure, if the [chief] inspector
1730	1730	general reasonably believes the offense or conduct is particularly
1731	1731	serious and egregious.
1732	1732	(e) The [chief] inspector general of the office of inspector
1733	1733	general, at the direction of the board of directors of the special
1734	1734	prosecution unit, shall notify the foreman of the appropriate grand
1735	1735	jury, in the manner provided by Article 20.09, Code of Criminal
1736	1736	Procedure, if:
1737	1737	(1) the [chief] inspector general receives credible
1738	1738	evidence of illegal or improper conduct by commission officers,
1739	1739	employees, or contractors that the inspector general reasonably
1740	1740	believes jeopardizes the health, safety, and welfare of children in
1741	1741	the custody of the commission;
1742	1742	(2) the [chief] inspector general reasonably believes
1743	1743	the conduct:
1744	1744	(A) could constitute an offense under Article
1745	1745	104.003(a), Code of Criminal Procedure; and
1746	1746	(B) involves the alleged physical or sexual abuse
1747	1747	of a child in the custody of a commission facility or an
1748	1748	investigation related to the alleged abuse; and
1749	1749	(3) the [chief] inspector general has reason to
1750	1750	believe that information concerning the conduct has not previously
1751	1751	been presented to the appropriate grand jury.
1752	1752	SECTION 42. Section 64.055(b), Human Resources Code, is
1753	1753	amended to read as follows:
1754	1754	(b) The independent ombudsman shall immediately report to
1755	1755	the governor, the lieutenant governor, the speaker of the house of
1756	1756	representatives, the state auditor, and the office of the inspector
1757	1757	general established under Chapter 422, Government Code, [of the
1758	1758	commission] any particularly serious or flagrant:
1759	1759	(1) case of abuse or injury of a child committed to the
1760	1760	commission;
1761	1761	(2) problem concerning the administration of a
1762	1762	commission program or operation;
1763	1763	(3) problem concerning the delivery of services in a
1764	1764	facility operated by or under contract with the commission; or
1765	1765	(4) interference by the commission with an
1766	1766	investigation conducted by the office.
1767	1767	SECTION 43. Section 64.056(b), Human Resources Code, is
1768	1768	amended to read as follows:
1769	1769	(b) The records of the independent ombudsman are
1770	1770	confidential, except that the independent ombudsman shall:
1771	1771	(1) share with the office of inspector general
1772	1772	established under Chapter 422, Government Code, [of the commission]
1773	1773	a communication with a child that may involve the abuse or neglect
1774	1774	of the child; and
1775	1775	(2) disclose its nonprivileged records if required by
1776	1776	a court order on a showing of good cause.
1777	1777	SECTION 44. Section 20.038, Business & Commerce Code, is
1778	1778	amended to read as follows:
1779	1779	Sec. 20.038. EXEMPTION FROM SECURITY FREEZE. A security
1780	1780	freeze does not apply to a consumer report provided to:
1781	1781	(1) a state or local governmental entity, including a
1782	1782	law enforcement agency or court or private collection agency, if
1783	1783	the entity, agency, or court is acting under a court order, warrant,
1784	1784	subpoena, or administrative subpoena;
1785	1785	(2) a child support agency as defined by Section
1786	1786	101.004, Family Code, acting to investigate or collect child
1787	1787	support payments or acting under Title IV-D of the Social Security
1788	1788	Act (42 U.S.C. Section 651 et seq.);
1789	1789	(3) the office of inspector general [Health and Human
1790	1790	Services Commission] acting to investigate fraud, waste, or abuse
1791	1791	in state agencies under Chapter 422, Government Code, or other law
1792	1792	[under Section 531.102, Government Code];
1793	1793	(4) the comptroller acting to investigate or collect
1794	1794	delinquent sales or franchise taxes;
1795	1795	(5) a tax assessor-collector acting to investigate or
1796	1796	collect delinquent ad valorem taxes;
1797	1797	(6) a person for the purposes of prescreening as
1798	1798	provided by the Fair Credit Reporting Act (15 U.S.C. Section 1681 et
1799	1799	seq.), as amended;
1800	1800	(7) a person with whom the consumer has an account or
1801	1801	contract or to whom the consumer has issued a negotiable
1802	1802	instrument, or the person's subsidiary, affiliate, agent,
1803	1803	assignee, prospective assignee, or private collection agency, for
1804	1804	purposes related to that account, contract, or instrument;
1805	1805	(8) a subsidiary, affiliate, agent, assignee, or
1806	1806	prospective assignee of a person to whom access has been granted
1807	1807	under Section 20.037(b);
1808	1808	(9) a person who administers a credit file monitoring
1809	1809	subscription service to which the consumer has subscribed;
1810	1810	(10) a person for the purpose of providing a consumer
1811	1811	with a copy of the consumer's report on the consumer's request;
1812	1812	(11) a check service or fraud prevention service
1813	1813	company that issues consumer reports:
1814	1814	(A) to prevent or investigate fraud; or
1815	1815	(B) for purposes of approving or processing
1816	1816	negotiable instruments, electronic funds transfers, or similar
1817	1817	methods of payment;
1818	1818	(12) a deposit account information service company
1819	1819	that issues consumer reports related to account closures caused by
1820	1820	fraud, substantial overdrafts, automated teller machine abuses, or
1821	1821	similar negative information regarding a consumer to an inquiring
1822	1822	financial institution for use by the financial institution only in
1823	1823	reviewing a consumer request for a deposit account with that
1824	1824	institution; or
1825	1825	(13) a consumer reporting agency that:
1826	1826	(A) acts only to resell credit information by
1827	1827	assembling and merging information contained in a database of
1828	1828	another consumer reporting agency or multiple consumer reporting
1829	1829	agencies; and
1830	1830	(B) does not maintain a permanent database of
1831	1831	credit information from which new consumer reports are produced.
1832	1832	SECTION 45. Article 2.12, Code of Criminal Procedure, is
1833	1833	amended to read as follows:
1834	1834	Art. 2.12. WHO ARE PEACE OFFICERS. The following are peace
1835	1835	officers:
1836	1836	(1) sheriffs, their deputies, and those reserve
1837	1837	deputies who hold a permanent peace officer license issued under
1838	1838	Chapter 1701, Occupations Code;
1839	1839	(2) constables, deputy constables, and those reserve
1840	1840	deputy constables who hold a permanent peace officer license issued
1841	1841	under Chapter 1701, Occupations Code;
1842	1842	(3) marshals or police officers of an incorporated
1843	1843	city, town, or village, and those reserve municipal police officers
1844	1844	who hold a permanent peace officer license issued under Chapter
1845	1845	1701, Occupations Code;
1846	1846	(4) rangers and officers commissioned by the Public
1847	1847	Safety Commission and the Director of the Department of Public
1848	1848	Safety;
1849	1849	(5) investigators of the district attorneys', criminal
1850	1850	district attorneys', and county attorneys' offices;
1851	1851	(6) law enforcement agents of the Texas Alcoholic
1852	1852	Beverage Commission;
1853	1853	(7) each member of an arson investigating unit
1854	1854	commissioned by a city, a county, or the state;
1855	1855	(8) officers commissioned under Section 37.081,
1856	1856	Education Code, or Subchapter E, Chapter 51, Education Code;
1857	1857	(9) officers commissioned by the General Services
1858	1858	Commission;
1859	1859	(10) law enforcement officers commissioned by the
1860	1860	Parks and Wildlife Commission;
1861	1861	(11) airport police officers commissioned by a city
1862	1862	with a population of more than 1.18 million that operates an airport
1863	1863	that serves commercial air carriers;
1864	1864	(12) airport security personnel commissioned as peace
1865	1865	officers by the governing body of any political subdivision of this
1866	1866	state, other than a city described by Subdivision (11), that
1867	1867	operates an airport that serves commercial air carriers;
1868	1868	(13) municipal park and recreational patrolmen and
1869	1869	security officers;
1870	1870	(14) security officers and investigators commissioned
1871	1871	as peace officers by the comptroller;
1872	1872	(15) officers commissioned by a water control and
1873	1873	improvement district under Section 49.216, Water Code;
1874	1874	(16) officers commissioned by a board of trustees
1875	1875	under Chapter 54, Transportation Code;
1876	1876	(17) investigators commissioned by the Texas Medical
1877	1877	Board;
1878	1878	(18) officers commissioned by the board of managers of
1879	1879	the Dallas County Hospital District, the Tarrant County Hospital
1880	1880	District, or the Bexar County Hospital District under Section
1881	1881	281.057, Health and Safety Code;
1882	1882	(19) county park rangers commissioned under
1883	1883	Subchapter E, Chapter 351, Local Government Code;
1884	1884	(20) investigators employed by the Texas Racing
1885	1885	Commission;
1886	1886	(21) officers commissioned under Chapter 554,
1887	1887	Occupations Code;
1888	1888	(22) officers commissioned by the governing body of a
1889	1889	metropolitan rapid transit authority under Section 451.108,
1890	1890	Transportation Code, or by a regional transportation authority
1891	1891	under Section 452.110, Transportation Code;
1892	1892	(23) investigators commissioned by the attorney
1893	1893	general under Section 402.009, Government Code;
1894	1894	(24) security officers and investigators commissioned
1895	1895	as peace officers under Chapter 466, Government Code;
1896	1896	(25) an officer employed by the Department of State
1897	1897	Health Services under Section 431.2471, Health and Safety Code;
1898	1898	(26) officers appointed by an appellate court under
1899	1899	Subchapter F, Chapter 53, Government Code;
1900	1900	(27) officers commissioned by the state fire marshal
1901	1901	under Chapter 417, Government Code;
1902	1902	(28) an investigator commissioned by the commissioner
1903	1903	of insurance under Section 701.104, Insurance Code;
1904	1904	(29) apprehension specialists [and inspectors
1905	1905	general] commissioned by the Texas Youth Commission as officers
1906	1906	under Section [Sections 61.0451 and] 61.0931, Human Resources Code;
1907	1907	(30) [officers appointed by the inspector general of
1908	1908	the Texas Department of Criminal Justice under Section 493.019,
1909	1909	Government Code;
1910	1910	[(31)] investigators commissioned by the Commission
1911	1911	on Law Enforcement Officer Standards and Education under Section
1912	1912	1701.160, Occupations Code;
1913	1913	(31) [(32)] commission investigators commissioned by
1914	1914	the Texas Private Security Board under Section 1702.061(f),
1915	1915	Occupations Code;
1916	1916	(32) [(33)] the fire marshal and any officers,
1917	1917	inspectors, or investigators commissioned by an emergency services
1918	1918	district under Chapter 775, Health and Safety Code;
1919	1919	(33) [(34)] officers commissioned by the State Board
1920	1920	of Dental Examiners under Section 254.013, Occupations Code,
1921	1921	subject to the limitations imposed by that section; [and]
1922	1922	(34) [(35)] investigators commissioned by the Texas
1923	1923	Juvenile Probation Commission as officers under Section 141.055,
1924	1924	Human Resources Code; and
1925	1925	(35) officers commissioned by the office of inspector
1926	1926	general established under Chapter 422, Government Code.
1927	1927	SECTION 46. The following sections of the Government Code
1928	1928	are repealed:
1929	1929	(1) Section 531.102;
1930	1930	(2) Section 531.1021; and
1931	1931	(3) Section 531.103.
1932	1932	SECTION 47. (a) The repeal by this Act of Section 531.102,
1933	1933	Government Code, does not affect the validity of a complaint,
1934	1934	investigation, or other proceeding initiated under that section
1935	1935	before the effective date of this Act. A complaint, investigation,
1936	1936	or other proceeding initiated under that section is continued in
1937	1937	accordance with the changes in law made by this Act.
1938	1938	(b) The repeal by this Act of Section 531.1021, Government
1939	1939	Code, does not affect the validity of a subpoena issued under that
1940	1940	section before the effective date of this Act. A subpoena issued
1941	1941	under that section before the effective date of this Act is governed
1942	1942	by the law that existed when the subpoena was issued, and the former
1943	1943	law is continued in effect for that purpose.
1944	1944	SECTION 48. (a) As soon as practicable after the effective
1945	1945	date of this Act, the Legislative Budget Board shall submit to the
1946	1946	governor a list with the names of at least three persons who may be
1947	1947	appointed as inspector general for the office of inspector general
1948	1948	as required by Chapter 422, Government Code, as added by this Act.
1949	1949	(b) As soon as practicable after the date the governor
1950	1950	receives the list under Subsection (a) of this section, the
1951	1951	governor shall appoint an inspector general for the office of
1952	1952	inspector general established under Chapter 422, Government Code,
1953	1953	as added by this Act, to a term expiring February 1, 2011.
1954	1954	(c) A person serving on the effective date of this Act as
1955	1955	inspector general for a state agency subject to Chapter 422,
1956	1956	Government Code, as added by this Act, shall serve as the deputy
1957	1957	inspector general designated for the agency under Chapter 422,
1958	1958	Government Code, as added by this Act, unless and until replaced by
1959	1959	the inspector general.
1960	1960	SECTION 49. A contract or proceeding primarily related to a
1961	1961	function transferred to the office of inspector general established
1962	1962	under this Act is transferred to the office. The transfer does not
1963	1963	affect the status of a proceeding or the validity of a contract.
1964	1964	SECTION 50. (a) All personnel and assets currently
1965	1965	assigned to the inspector general of an agency subject to Chapter
1966	1966	422, Government Code, as added by this Act, shall be promptly
1967	1967	transferred to the office of inspector general established under
1968	1968	Chapter 422 along with any equipment, documents, and records
1969	1969	currently assigned to or used by the inspector general of that
1970	1970	agency. Inventory of personnel, equipment, documents, records, and
1971	1971	assets to be transferred under this section shall be accomplished
1972	1972	jointly by the transferring agency and the inspector general
1973	1973	serving under Chapter 422. All funds previously appropriated or
1974	1974	used, from any source, by the transferring agency in support of the
1975	1975	transferred functions, personnel, equipment, documents, records,
1976	1976	or assets shall also be contemporaneously transferred to the
1977	1977	office.
1978	1978	(b) For purposes of this section, "currently assigned"
1979	1979	means:
1980	1980	(1) all personnel and vacant full-time equivalent
1981	1981	positions assigned to or supporting a transferred function at any
1982	1982	time during the state fiscal biennium beginning September 1, 2007;
1983	1983	and
1984	1984	(2) all inventory and equipment assigned to a
1985	1985	transferred function or transferring personnel or that was in the
1986	1986	possession of transferring personnel on or at any time after
1987	1987	October 31, 2008.
1988	1988	(c) All state and federal funding, including funding for
1989	1989	overhead costs, support costs, and lease or colocation lease costs,
1990	1990	for the functions to be transferred to the office of inspector
1991	1991	general established under Chapter 422, Government Code, as added by
1992	1992	this Act, shall be reallocated to that office.
1993	1993	(d) For purposes of federal single state agency funding
1994	1994	requirements, any federal funds for an agency subject to Chapter
1995	1995	422, Government Code, as added by this Act, that may not be
1996	1996	appropriated directly to the office of inspector general shall be
1997	1997	transferred from the single state agency receiving the funds to the
1998	1998	office of inspector general established under Chapter 422 if the
1999	1999	funds are intended for a function performed by the office.
2000	2000	SECTION 51. On the effective date of this Act:
2001	2001	(1) all functions, activities, employees, rules,
2002	2002	forms, money, property, contracts, memorandums of understanding,
2003	2003	records, and obligations of a previously established office of
2004	2004	inspector general of an agency subject to Chapter 422, Government
2005	2005	Code, as added by this Act, become functions, activities,
2006	2006	employees, rules, forms, money, property, contracts, memorandums
2007	2007	of understanding, records, and obligations of the office of
2008	2008	inspector general established under Chapter 422, without a change
2009	2009	in status; and
2010	2010	(2) all money appropriated or budgeted for the
2011	2011	operations of a previously established office of inspector general
2012	2012	at an agency subject to Chapter 422, Government Code, as added by
2013	2013	this Act, including money for providing administrative support, is
2014	2014	considered appropriated for the use of the office of inspector
2015	2015	general established under Chapter 422.
2016	2016	SECTION 52. (a) Each agency subject to Chapter 422,
2017	2017	Government Code, as added by this Act, shall take all action
2018	2018	necessary to provide for the orderly transfer of the assets and
2019	2019	responsibilities of any previously established office of inspector
2020	2020	general for that agency to the office of inspector general
2021	2021	established under Chapter 422.
2022	2022	(b) A rule or form adopted by a previously established
2023	2023	office of inspector general of an agency subject to Chapter 422,
2024	2024	Government Code, as added by this Act, is a rule or form of the
2025	2025	office of inspector general established under Chapter 422 and
2026	2026	remains in effect until changed by the office of inspector general.
2027	2027	(c) A reference in law or administrative rule to a
2028	2028	previously established office of inspector general of an agency
2029	2029	subject to Chapter 422, Government Code, as added by this Act, means
2030	2030	the office of inspector general established under Chapter 422.
2031	2031	SECTION 53. If before implementing any provision of this
2032	2032	Act a state agency determines that a waiver or authorization from a
2033	2033	federal agency is necessary for implementation of that provision,
2034	2034	the agency affected by the provision shall request the waiver or
2035	2035	authorization and may delay implementing that provision until the
2036	2036	waiver or authorization is granted.
2037	2037	SECTION 54. This Act takes effect immediately if it
2038	2038	receives a vote of two-thirds of all the members elected to each
2039	2039	house, as provided by Section 39, Article III, Texas Constitution.
2040	2040	If this Act does not receive the vote necessary for immediate
2041	2041	effect, this Act takes effect September 1, 2009.