Texas 2009 - 81st Regular

Texas House Bill HB4688 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	By: Herrero H.B. No. 4688
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the protection and care of individuals with mental
7	7	retardation who reside in a state developmental center.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 27. Article 2.12, Code of Criminal Procedure, is
10	10	amended to read as follows:
11	11	Art. 2.12. WHO ARE PEACE OFFICERS. The following are peace
12	12	officers:
13	13	(1) sheriffs, their deputies, and those reserve
14	14	deputies who hold a permanent peace officer license issued under
15	15	Chapter 1701, Occupations Code;
16	16	(2) constables, deputy constables, and those reserve
17	17	deputy constables who hold a permanent peace officer license issued
18	18	under Chapter 1701, Occupations Code;
19	19	(3) marshals or police officers of an incorporated
20	20	city, town, or village, and those reserve municipal police officers
21	21	who hold a permanent peace officer license issued under Chapter
22	22	1701, Occupations Code;
23	23	(4) rangers and officers commissioned by the Public
24	24	Safety Commission and the Director of the Department of Public
25	25	Safety;
26	26	(5) investigators of the district attorneys', criminal
27	27	district attorneys', and county attorneys' offices;
28	28	(6) law enforcement agents of the Texas Alcoholic
29	29	Beverage Commission;
30	30	(7) each member of an arson investigating unit
31	31	commissioned by a city, a county, or the state;
32	32	(8) officers commissioned under Section 37.081,
33	33	Education Code, or Subchapter E, Chapter 51, Education Code;
34	34	(9) officers commissioned by the General Services
35	35	Commission;
36	36	(10) law enforcement officers commissioned by the
37	37	Parks and Wildlife Commission;
38	38	(11) airport police officers commissioned by a city
39	39	with a population of more than 1.18 million that operates an airport
40	40	that serves commercial air carriers;
41	41	(12) airport security personnel commissioned as peace
42	42	officers by the governing body of any political subdivision of this
43	43	state, other than a city described by Subdivision (11), that
44	44	operates an airport that serves commercial air carriers;
45	45	(13) municipal park and recreational patrolmen and
46	46	security officers;
47	47	(14) security officers and investigators commissioned
48	48	as peace officers by the comptroller;
49	49	(15) officers commissioned by a water control and
50	50	improvement district under Section 49.216, Water Code;
51	51	(16) officers commissioned by a board of trustees
52	52	under Chapter 54, Transportation Code;
53	53	(17) investigators commissioned by the Texas Medical
54	54	Board;
55	55	(18) officers commissioned by the board of managers of
56	56	the Dallas County Hospital District, the Tarrant County Hospital
57	57	District, or the Bexar County Hospital District under Section
58	58	281.057, Health and Safety Code;
59	59	(19) county park rangers commissioned under
60	60	Subchapter E, Chapter 351, Local Government Code;
61	61	(20) investigators employed by the Texas Racing
62	62	Commission;
63	63	(21) officers commissioned under Chapter 554,
64	64	Occupations Code;
65	65	(22) officers commissioned by the governing body of a
66	66	metropolitan rapid transit authority under Section 451.108,
67	67	Transportation Code, or by a regional transportation authority
68	68	under Section 452.110, Transportation Code;
69	69	(23) investigators commissioned by the attorney
70	70	general under Section 402.009, Government Code;
71	71	(24) security officers and investigators commissioned
72	72	as peace officers under Chapter 466, Government Code;
73	73	(25) an officer employed by the Department of State
74	74	Health Services under Section 431.2471, Health and Safety Code;
75	75	(26) officers appointed by an appellate court under
76	76	Subchapter F, Chapter 53, Government Code;
77	77	(27) officers commissioned by the state fire marshal
78	78	under Chapter 417, Government Code;
79	79	(28) an investigator commissioned by the commissioner
80	80	of insurance under Section 701.104, Insurance Code;
81	81	(29) apprehension specialists and inspectors general
82	82	commissioned by the Texas Youth Commission as officers under
83	83	Sections 61.0451 and 61.0931, Human Resources Code;
84	84	(30) officers appointed by the inspector general of
85	85	the Texas Department of Criminal Justice under Section 493.019,
86	86	Government Code;
87	87	(31) investigators commissioned by the Commission on
88	88	Law Enforcement Officer Standards and Education under Section
89	89	1701.160, Occupations Code;
90	90	(32) commission investigators commissioned by the
91	91	Texas Private Security Board under Section 1702.061(f),
92	92	Occupations Code;
93	93	(33) the fire marshal and any officers, inspectors, or
94	94	investigators commissioned by an emergency services district under
95	95	Chapter 775, Health and Safety Code;
96	96	(34) officers commissioned by the State Board of
97	97	Dental Examiners under Section 254.013, Occupations Code, subject
98	98	to the limitations imposed by that section; [and]
99	99	(35) investigators commissioned by the Texas Juvenile
100	100	Probation Commission as officers under Section 141.055, Human
101	101	Resources Code; and
102	102	(36) officers commissioned by the office of inspector
103	103	general established under Subchapter R, Chapter 531, Government
104	104	Code.
105	105	SECTION 28. Sections 531.102 and 531.1021, Government Code,
106	106	are repealed.
107	107	SECTION 29. Section 411.086, Government Code, is amended to
108	108	read as follows:
109	109	Sec. 411.083. DISSEMINATION OF CRIMINAL HISTORY RECORD
110	110	INFORMATION. (a) Criminal history record information maintained
111	111	by the department is confidential information for the use of the
112	112	department and, except as provided by this subchapter, may not be
113	113	disseminated by the department.
114	114	(b) The department shall grant access to criminal history
115	115	record information to:
116	116	(1) criminal justice agencies;
117	117	(2) noncriminal justice agencies authorized by
118	118	federal statute or executive order or by state statute to receive
119	119	criminal history record information;
120	120	(3) the person who is the subject of the criminal
121	121	history record information;
122	122	(4) a person working on a research or statistical
123	123	project that:
124	124	(A) is funded in whole or in part by state funds;
125	125	or
126	126	(B) meets the requirements of Part 22, Title 28,
127	127	Code of Federal Regulations, and is approved by the department;
128	128	(5) an individual or an agency that has a specific
129	129	agreement with a criminal justice agency to provide services
130	130	required for the administration of criminal justice under that
131	131	agreement, if the agreement:
132	132	(A) specifically authorizes access to
133	133	information;
134	134	(B) limits the use of information to the purposes
135	135	for which it is given;
136	136	(C) ensures the security and confidentiality of
137	137	the information; and
138	138	(D) provides for sanctions if a requirement
139	139	imposed under Paragraph (A), (B), or (C) is violated;
140	140	(6) an individual or an agency that has a specific
141	141	agreement with a noncriminal justice agency to provide services
142	142	related to the use of criminal history record information
143	143	disseminated under this subchapter, if the agreement:
144	144	(A) specifically authorizes access to
145	145	information;
146	146	(B) limits the use of information to the purposes
147	147	for which it is given;
148	148	(C) ensures the security and confidentiality of
149	149	the information; and
150	150	(D) provides for sanctions if a requirement
151	151	imposed under Paragraph (A), (B), or (C) is violated;
152	152	(7) a county or district clerk's office; [and]
153	153	(8) the Office of Court Administration of the Texas
154	154	Judicial System; and
155	155	(9) officers commissioned by the office of inspector
156	156	general established under Subchapter R, Chapter 531, Government
157	157	Code.
158	158	(c) The department may disseminate criminal history record
159	159	information under Subsection (b)(1) only for a criminal justice
160	160	purpose. The department may disseminate criminal history record
161	161	information under Subsection (b)(2) only for a purpose specified in
162	162	the statute or order. The department may disseminate criminal
163	163	history record information under Subsection (b)(4), (5), or (6)
164	164	only for a purpose approved by the department and only under rules
165	165	adopted by the department. The department may disseminate criminal
166	166	history record information under Subsection (b)(7) only to the
167	167	extent necessary for a county or district clerk to perform a duty
168	168	imposed by law to collect and report criminal court disposition
169	169	information. Criminal history record information disseminated to a
170	170	clerk under Subsection (b)(7) may be used by the clerk only to
171	171	ensure that information reported by the clerk to the department is
172	172	accurate and complete. The dissemination of information to a clerk
173	173	under Subsection (b)(7) does not affect the authority of the clerk
174	174	to disclose or use information submitted by the clerk to the
175	175	department. The department may disseminate criminal history record
176	176	information under Subsection (b)(8) only to the extent necessary
177	177	for the office of court administration to perform a duty imposed by
178	178	law to compile court statistics or prepare reports. The office of
179	179	court administration may disclose criminal history record
180	180	information obtained from the department under Subsection (b)(8) in
181	181	a statistic compiled by the office or a report prepared by the
182	182	office, but only in a manner that does not identify the person who
183	183	is the subject of the information.
184	184	(d) The department is not required to release or disclose
185	185	criminal history record information to any person that is not in
186	186	compliance with rules adopted by the department under this
187	187	subchapter or rules adopted by the Federal Bureau of Investigation
188	188	that relate to the dissemination or use of criminal history record
189	189	information.
190	190	SECTION 1. Section 261.404, Family Code, is amended by
191	191	adding Subsection (b-1) to read as follows:
192	192	(b-1) If an investigation under this section reveals
193	193	evidence of abuse, neglect, or exploitation of a resident or client
194	194	of a state developmental center as defined by Section 531.002,
195	195	Health and Safety Code and a caseworker of the department or a
196	196	supervisor of a caseworker believes that the abuse, neglect, or
197	197	exploitation is a criminal offense, the caseworker or supervisor
198	198	shall immediately notify the Health and Human Services Commission's
199	199	office of inspector general and promptly provide the Health and
200	200	Human Services Commission's office of inspector general with a copy
201	201	of the department's investigation report.
202	202	SECTION 2. Subchapter F, Chapter 411, Government Code, is
203	203	amended by adding Section 411.1144 to read as follows:
204	204	SECTION 3. Subchapter C, Chapter 531, Government Code, is
205	205	amended by adding Section 531.1022 to read as follows:
206	206	Sec. 531.1022. ASSISTING CERTAIN INVESTIGATIONS BY LAW
207	207	ENFORCEMENT. (a) The office of inspector general shall employ and
208	208	commission peace officers for the sole purpose of assisting a state
209	209	or local law enforcement agency in the investigation of an alleged
210	210	criminal offense involving a resident or client of a state
211	211	developmental center as defined by Section 531.002, Health and
212	212	Safety Code.
213	213	(b) The office of inspector general shall prepare a final
214	214	report for each investigation conducted under this section. The
215	215	office shall ensure that the report does not contain identifying
216	216	information of an individual mentioned in the report. The final
217	217	report must include:
218	218	(1) a summary of the activities performed by the
219	219	office of inspector general in conducting the investigation;
220	220	(2) a statement regarding whether the investigation
221	221	resulted in a finding that an alleged criminal offense was
222	222	committed; and
223	223	(3) a description of the alleged criminal offense that
224	224	was committed.
225	225	(c) The office of inspector general shall deliver the final
226	226	report to the:
227	227	(1) executive commissioner;
228	228	(2) commissioner of the Department of Aging and
229	229	Disability Services;
230	230	(3) commissioner of the Department of Family and
231	231	Protective Services;
232	232	(4) Aging and Disability Services Council;
233	233	(5) governor;
234	234	(6) lieutenant governor;
235	235	(7) speaker of the house of representatives;
236	236	(8) standing committees of the senate and house of
237	237	representatives with primary jurisdiction over state developmental
238	238	centers;
239	239	(9) state auditor;
240	240	(10) alleged victim and the alleged victim's legally
241	241	authorized representative; and
242	242	(11) office of the independent ombudsman for state
243	243	developmental centers.
244	244	(d) A final report regarding an investigation is subject to
245	245	required disclosure under Chapter 552. All information and
246	246	materials compiled by the office of inspector general in connection
247	247	with an investigation are confidential, and not subject to
248	248	disclosure under Chapter 552, and not subject to disclosure,
249	249	discovery, subpoena, or other means of legal compulsion for their
250	250	release to anyone other than the office or its employees or agents
251	251	involved in the investigation conducted by the office, except that
252	252	this information may be disclosed to the office of the attorney
253	253	general, the state auditor's office, and law enforcement agencies.
254	254	(e) The office of inspector general shall prepare an annual
255	255	status report of its activities under this section. The annual
256	256	report may not contain identifying information of an individual
257	257	mentioned in the report. The annual status report must include
258	258	information that is aggregated and disaggregated by individual
259	259	state developmental center.
260	260	(1) the number and type of alleged offenses
261	261	investigated by the office;
262	262	(2) the number and type of alleged offenses involving
263	263	an employee of a state developmental center;
264	264	(3) the relationship of an alleged victim to an
265	265	alleged perpetrator;
266	266	(4) the number of investigations conducted that
267	267	involve the suicide, death, or hospitalization of an alleged
268	268	victim; and
269	269	(5) the number of completed investigations in which
270	270	commission of the alleged offense was confirmed or unsubstantiated
271	271	or in which the investigation was inconclusive, and a description
272	272	of the reason that allegations were unsubstantiated or the
273	273	investigation was inconclusive.
274	274	(f) The office of inspector general shall:
275	275	(1) submit the annual status report to the:
276	276	(A) executive commissioner;
277	277	(B) commissioner of the Department of Aging and
278	278	Disability Services;
279	279	(C) commissioner of the Department of Family and
280	280	Protective Services;
281	281	(D) Aging and Disability Services Council;
282	282	(E) Family and Protective Services Council;
283	283	(F) governor;
284	284	(G) lieutenant governor;
285	285	(H) speaker of the house of representatives;
286	286	(I) standing committees of the senate and house
287	287	of representatives with primary jurisdiction over state
288	288	developmental centers;
289	289	(J) state auditor; and
290	290	(K) comptroller; and
291	291	(2) publish the report on the Internet website of the
292	292	office of inspector general.
293	293	(g) An annual status report submitted under this section is
294	294	public information under Chapter 552.
295	295	SECTION 4. Chapter 531, Government Code, is amended by
296	296	adding Subchapter R to read as follows:
297	297	SUBCHAPTER R. INSPECTOR GENERAL
298	298	Sec. 531.701. DEFINITIONS. In this subchapter:
299	299	(1) "Fraud" has the meaning assigned by Section
300	300	531.1011.
301	301	(2) "Inspector general" means the inspector general
302	302	appointed under this subchapter.
303	303	(3) "Office" means the Office of Inspector General.
304	304	(4) "Provider" has the meaning assigned by Section
305	305	531.1011.
306	306	(5) "Review" includes an inspection, investigation,
307	307	audit, or similar activity.
308	308	(6) "State funds" or "state money" includes federal
309	309	funds or money received and appropriated by the state or for which
310	310	the state has oversight responsibility.
311	311	Sec. 531.702. REFERENCE IN OTHER LAW. Notwithstanding any
312	312	other provision of law, a reference in law or rule to the
313	313	commission's office of inspector general or the commission's office
314	314	of investigations and enforcement means the Office of Inspector
315	315	General.
316	316	Sec. 531.703. OFFICE OF INSPECTOR GENERAL; ADMINISTRATIVE
317	317	ATTACHMENT. (a) The office of inspector general is responsible
318	318	for:
319	319	(1) the investigation of fraud, waste, and abuse in
320	320	the provision or funding of health or human services by this state;
321	321	(2) the enforcement of state law relating to the
322	322	provision of those services to protect the public; and
323	323	(3) the investigation, prevention and detection of
324	324	crime relating to the provision of those services.
325	325	(b) The office is part of the single state Medicaid agency
326	326	and is administratively attached to the commission. The commission
327	327	shall provide to the office administrative support services from
328	328	the commission and from health and human services agencies.
329	329	Sec. 531.704. SERVICE LEVEL AGREEMENT; FUNDS. (a) The
330	330	commission and the office shall enter into a service level
331	331	agreement that establishes the performance standards and
332	332	deliverables with regard to administrative support by the
333	333	commission.
334	334	(b) The service level agreement must be reviewed at least
335	335	annually to ensure that services and deliverables are provided in
336	336	accordance with the agreement.
337	337	(c) The commission shall request, apply for, and receive for
338	338	the office any appropriations or other money from this state or the
339	339	federal government, and shall disburse all such funds to the office
340	340	as appropriated.
341	341	(d) The commission shall provide to the office for the state
342	342	fiscal biennium beginning September 1, 2009, the same level of
343	343	administrative support the commission provided to the office
344	344	established under former Section 531.102 for the state fiscal
345	345	biennium beginning September 1, 2007. This subsection expires
346	346	January 1, 2012.
347	347	Sec. 531.705. DUTIES OF COMMISSION. (a) The commission
348	348	shall:
349	349	(1) provide administrative assistance to the office;
350	350	and
351	351	(2) coordinate administrative responsibilities with
352	352	the office to avoid unnecessary duplication of duties.
353	353	(b) The commission may not take an action that affects or
354	354	relates to the validity, status, or terms of an interagency
355	355	agreement or a contract to which the office is a party without the
356	356	office's approval.
357	357	Sec. 531.706. INDEPENDENCE OF OFFICE. (a) Except as
358	358	otherwise provided by this chapter, the office and inspector
359	359	general operate independently of the commission.
360	360	(b) The inspector general, not the executive commissioner,
361	361	supervises the office staff and manages the operations of the
362	362	office.
363	363	(c) The inspector general shall have operational authority
364	364	over and responsibility for the:
365	365	(1) management of the daily operations of the office,
366	366	including the organization and management of the office and office
367	367	operating procedures;
368	368	(2) allocation of resources within the office;
369	369	(3) personnel and employment policies;
370	370	(4) contracting, purchasing, and related policies,
371	371	subject to other laws relating to state agency contracting and
372	372	purchasing;
373	373	(5) information resources systems used by the office;
374	374	(6) location of office facilities;
375	375	(7) coordination of office activities with activities
376	376	of other state agencies, including other health and human services
377	377	agencies.
378	378	Sec. 531.707. INSPECTOR GENERAL: APPOINTMENT AND TERM. (a)
379	379	The governor shall appoint an inspector general to serve as
380	380	director of the office.
381	381	(b) The inspector general reports to the governor and serves
382	382	a two-year term that expires on February 1 of each odd-numbered
383	383	year.
384	384	(c) The inspector general is a state officer.
385	385	Section 531.708. CONFLICT OF INTEREST. (a) The inspector
386	386	general may not serve as an ex officio member on the governing body
387	387	of a governmental entity.
388	388	(b) The inspector general may not have a financial interest
389	389	in the transactions of the office, a health and human services
390	390	agency, or a health or human services provider.
391	391	Section 531.709. RULEMAKING BY INSPECTOR GENERAL. (a)
392	392	Notwithstanding Section 531.0055 (e) and any other law, the
393	393	inspector general shall adopt the rules necessary to administer the
394	394	functions of the office, including rules to address the imposition
395	395	of sanctions and penalties for violations and due process
396	396	requirements for imposing sanctions and penalties, as well as rules
397	397	relating to the eligibility of providers and contractors to
398	398	participate in health and human services programs.
399	399	(b) A rule, standard, or form adopted by the executive
400	400	commissioner, the commission, or a health and human services agency
401	401	that is necessary to accomplish the duties of the office is
402	402	considered to also be a rule, standard, or form of the office and
403	403	remains in effect as a rule, standard, or form of the office until
404	404	changed by the inspector general.
405	405	(c) The office may submit proposed rules and adopted rules
406	406	to the commission for publication. The executive commissioner or
407	407	commission may not amend or modify a rule submitted by the office.
408	408	(d) The rules must include standards for the office that
409	409	emphasize:
410	410	(1) coordinating investigative efforts to
411	411	aggressively recover money;
412	412	(2) allocating resources to cases that have the
413	413	strongest supportive evidence and the greatest potential for
414	414	recovery of money; and
415	415	(3) maximizing opportunities for referral of cases to
416	416	the office of the attorney general.
417	417	Sec. 531.710. EMPLOYEES; MEDICAL REVIEW OFFICER; TRAINING.
418	418	(a) The inspector general may employ personnel as necessary
419	419	to implement the duties of the office.
420	420	(b) The inspector general shall employ a physician as the
421	421	medical review officer to perform reviews and provide information
422	422	and consultation as appropriate when the matter at issue involves
423	423	or requires medical expertise.
424	424	(c) The inspector general shall train office personnel to
425	425	pursue priority Medicaid and other health and human services fraud,
426	426	waste, and abuse cases efficiently and as necessary.
427	427	(d) The inspector general may contract with certified
428	428	public accountants, management consultants, or other professional
429	429	experts necessary to enable the inspector general and office
430	430	personnel to independently perform the functions of the inspector
431	431	general's office.
432	432	(e) The inspector general may require employees of health
433	433	and human services agencies to provide assistance to the office in
434	434	connection with the office's duties relating to the investigation
435	435	of fraud, waste, and abuse in the provision of health and human
436	436	services.
437	437	Sec. 531.711. REVIEW AUTHORITY. (a) The inspector general
438	438	may any activity or operation of a health and human services agency,
439	439	health or human services provider, or person in this state that is
440	440	related to the investigation, detection, or prevention of fraud,
441	441	waste, abuse or employee misconduct in a state or state-funded
442	442	health or human services program. A review may include an
443	443	inspection, investigation, audit, or other similar activity [or
444	444	other] inquiring[y] into a specific act or allegation of, or a
445	445	specific financial transaction or practice that may involve,
446	446	impropriety, malfeasance, or nonfeasance in the obligation,
447	447	spending, receipt, or other use of state money.
448	448	(b) The executive commissioner, the commission, or a health
449	449	and human services agency of this state may not impair, prohibit, or
450	450	attempt to influence the inspector general in initiating,
451	451	conducting, or completing a review.
452	452	(c) The inspector general may conduct reviews, including
453	453	financial or performance audits regarding the use and effectiveness
454	454	of state funds, including contract and grant funds, administered by
455	455	a person or state agency receiving the funds in connection with a
456	456	state or state-funded health or human services program.
457	457	Sec. 531.712. INITIATION OF REVIEW. The inspector general
458	458	may initiate a review:
459	459	(1) on the inspector general's own initiative;
460	460	(2) at the request of the commission or executive
461	461	commissioner; or
462	462	(3) based on a complaint from any source concerning a
463	463	matter described by Section 531.711.
464	464	Sec. 531.713. INTEGRITY REVIEW. (a) The office shall
465	465	conduct an integrity review to determine whether there is
466	466	sufficient basis to warrant a full investigation on receipt of any
467	467	complaint of fraud, waste, or abuse of funds in the state Medicaid
468	468	program from any source.
469	469	(b) An integrity review must begin not later than the 30th
470	470	day after the date the office receives a complaint or has reason to
471	471	believe that Medicaid fraud, waste, or abuse has occurred. An
472	472	integrity review shall be completed not later than the 90th day
473	473	after the date the review began.
474	474	(c) If the findings of an integrity review give the office
475	475	reason to believe that an incident of fraud involving possible
476	476	criminal conduct has occurred in the state Medicaid program, the
477	477	office must take the following action, as appropriate, not later
478	478	than the 30th day after the completion of the integrity review:
479	479	(1) if a provider is suspected of fraud involving
480	480	criminal conduct, the office must refer the case to the state's
481	481	Medicaid fraud control unit, provided that the criminal referral
482	482	does not preclude the office from continuing its investigation of
483	483	the provider or preclude the imposition of appropriate
484	484	administrative or civil sanctions; or
485	485	(2) if there is reason to believe that a recipient of
486	486	funds has defrauded the Medicaid program, the office may conduct a
487	487	full investigation of the suspected fraud.
488	488	Sec. 531.714. ACCESS TO INFORMATION. (a) To further a
489	489	review conducted by the office, the inspector general is entitled
490	490	to full and unrestricted access to all offices, limited-access or
491	491	restricted areas, employees, books, papers, records, documents,
492	492	equipment, computers, databases, systems, accounts, reports,
493	493	vouchers, or other information, including confidential
494	494	information, electronic data, and internal records relevant to the
495	495	functions of the office, maintained by a person, health and human
496	496	services agency, or health or human services provider in connection
497	497	with a state or state-funded health or human services program.
498	498	(b) The inspector general may not access data or other
499	499	information the release of which is restricted under federal law
500	500	unless the office is in compliance with all applicable federal
501	501	regulations governing such access.
502	502	Sec. 531.715. COOPERATION REQUIRED. To further a review
503	503	conducted by the inspector general's office, the inspector general
504	504	may require medical or other professional assistance from the
505	505	executive commissioner, the commission, a health and human services
506	506	agency, or an auditor, accountant, or other employee of the
507	507	commission or agency.
508	508	Sec. 531.716. REFERRAL TO STATE MEDICAID FRAUD CONTROL
509	509	UNIT. (a) At the time the office learns or has reason to suspect
510	510	that a health or human services provider 's records related to
511	511	participation in the state Medicaid program are being withheld,
512	512	concealed, destroyed, fabricated, or in any way falsified, the
513	513	office shall immediately refer the case to the state's Medicaid
514	514	fraud control unit.
515	515	(b) A criminal referral under Subsection (a) does not
516	516	preclude the office from continuing its investigation of a health
517	517	or human services provider or the imposition of appropriate
518	518	administrative or civil sanctions.
519	519	Sec. 531.717. HOLD ON CLAIM REIMBURSEMENT PAYMENT;
520	520	EXCLUSION FROM PROGRAMS. (a) In addition to other instances
521	521	authorized under state or federal law, the office shall impose
522	522	without prior notice a hold on payment of claims for reimbursement
523	523	submitted by a health or human services provider to compel
524	524	production of records related to participation in the state
525	525	Medicaid program or on request of the state's Medicaid fraud
526	526	control unit, as applicable.
527	527	(b) The office must notify the health or human services
528	528	provider of the hold on payment not later than the fifth working day
529	529	after the date the payment hold is imposed.
530	530	(c) The office shall, in consultation with the state's
531	531	Medicaid fraud control unit, establish guidelines under which holds
532	532	on payment or exclusions from a state or state-funded program:
533	533	(1) may permissively be imposed on a health or human
534	534	services provider; or
535	535	(2) shall automatically be imposed on a provider.
536	536	(d) A health or human services provider subject to a hold on
537	537	payment or excluded from a program under this section is entitled to
538	538	a hearing on the hold or exclusion. A hearing under this subsection
539	539	is a contested case hearing under Chapter 2001. The State Office of
540	540	Administrative Hearings shall conduct the hearing. After the
541	541	hearing, the office, subject to judicial review, shall make a final
542	542	determination. The commission, a health and human services agency,
543	543	and the office of the attorney general are entitled to intervene as
544	544	parties in the contested case.
545	545	Sec. 531.718. REQUEST FOR EXPEDITED HEARING. (a) On timely
546	546	written request by a health or human services provider subject to a
547	547	hold on payment under Section 531.717, other than a hold requested
548	548	by the state's Medicaid fraud control unit, the office shall file a
549	549	request with the State Office of Administrative Hearings for an
550	550	expedited administrative hearing regarding the hold.
551	551	(b) The health or human services provider must request an
552	552	expedited hearing not later than the 10th day after the date the
553	553	provider receives notice from the office under Section 531.717(b).
554	554	(c) The office may enter into a memorandum of understanding
555	555	with the State Office of Administrative Hearings to facilitate the
556	556	docketing and hearing of contested case hearings.
557	557	Sec. 531.719. INFORMAL RESOLUTION. (a) The inspector
558	558	general shall adopt rules that allow a health or human services
559	559	provider subject to a hold on payment under Section 531.717, other
560	560	than a hold requested by the state's Medicaid fraud control unit, to
561	561	seek an informal resolution of the issues identified by the office
562	562	in the notice provided under that section.
563	563	(b) A health or human services provider must seek an
564	564	informal resolution not later than the 10th day after the date the
565	565	provider receives notice from the office under Section 531.717(b).
566	566	(c) A health or human services provider's decision to seek
567	567	an informal resolution does not extend the time by which the
568	568	provider must request an expedited administrative hearing under
569	569	Section 531.718.
570	570	(d) A hearing initiated under Section 531.717 shall be
571	571	stayed at the office's request until the informal resolution
572	572	process is completed.
573	573	Sec. 531.720. EMPLOYEE REPORTS. The inspector general may
574	574	require employees at the commission or a health and human services
575	575	agency to report to the office information regarding fraud, waste,
576	576	misuse or abuse of funds or resources, corruption, or illegal acts.
577	577	Sec. 531.721. SUBPOENAS. (a) The inspector general may
578	578	issue a subpoena to compel the attendance of a relevant witness or
579	579	the production, for inspection or copying, of relevant evidence in
580	580	connection with a review conducted under this subchapter.
581	581	(b) A subpoena may be served personally or by certified
582	582	mail.
583	583	(c) If a person fails to comply with a subpoena, the
584	584	inspector general, acting through the attorney general, may file
585	585	suit to enforce the subpoena in a district court in this state.
586	586	(d) On finding that good cause exists for issuing the
587	587	subpoena, the court shall order the person to comply with the
588	588	subpoena. The court may hold in contempt a person who fails to obey
589	589	the court order.
590	590	(e) The reimbursement of the expenses of a witness whose
591	591	attendance is compelled under this section is governed by Section
592	592	2001.103.
593	593	Sec. 531.722. INTERNAL AUDITOR. (a) In this section,
594	594	"internal auditor" means a person appointed under Section 2102.006.
595	595	(b) The internal auditor for a health and human services
596	596	agency shall provide the inspector general with a copy of the
597	597	agency's internal audit plan to:
598	598	(1) assist in the coordination of efforts between the
599	599	inspector general and the internal auditor; and
600	600	(2) limit duplication of effort regarding reviews by
601	601	the inspector general and internal auditor.
602	602	(c) The internal auditor shall provide to the inspector
603	603	general all final audit reports concerning audits of any:
604	604	(1) part or division of the agency;
605	605	(2) contract, procurement, or grant; and
606	606	(3) program conducted by the agency.
607	607	Sec. 531.723. COOPERATION WITH LAW ENFORCEMENT OFFICIALS
608	608	AND OTHER ENTITIES. (a) The inspector general may provide
609	609	information and evidence relating to criminal acts to the state
610	610	auditor's office and appropriate law enforcement officials.
611	611	(b) The inspector general may refer matters for further
612	612	civil, criminal, and administrative action to appropriate
613	613	administrative and prosecutorial agencies, including the attorney
614	614	general.
615	615	(c) The inspector general may enter into a memorandum of
616	616	understanding with a law enforcement or prosecutorial agency,
617	617	including the office of the attorney general, to assist in
618	618	conducting a review under this subchapter.
619	619	Sec. 531.724. COOPERATION AND COORDINATION WITH STATE
620	620	AUDITOR.
621	621	(a) The state auditor may, on request of the inspector
622	622	general, provide appropriate information or other assistance to the
623	623	inspector general or office, as determined by the state auditor.
624	624	(b) The inspector general may meet with the state auditor's
625	625	office to coordinate a review conducted under this subchapter,
626	626	share information, or schedule work plans.
627	627	(c) The state auditor is entitled to access all information
628	628	maintained by the inspector general, including vouchers,
629	629	electronic data, internal records, and information obtained under
630	630	Section 531.714 or subject to Section 531.731.
631	631	(d) Any information obtained or provided by the state
632	632	auditor under this section is confidential and not subject to
633	633	disclosure under Chapter 552.
634	634	Sec. 531.725. PREVENTION. (a) The inspector general may
635	635	recommend to the commission and executive commissioner policies on:
636	636	(1) promoting economical and efficient administration
637	637	of state funds administered by an individual or entity that
638	638	received the funds from a health and human services agency; and
639	639	(2) preventing and detecting fraud, waste, and abuse
640	640	in the administration of those funds.
641	641	(b) The inspector general may provide training or other
642	642	education regarding the prevention of fraud, waste, or abuse to
643	643	employees of a health and human services agency. The training or
644	644	education provided must be approved by the presiding officer of the
645	645	agency.
646	646	Sec. 531.726. RULEMAKING BY EXECUTIVE COMMISSIONER. The
647	647	executive commissioner may adopt rules governing a health and human
648	648	services agency's response to reports and referrals from the
649	649	inspector general on issues identified by the inspector general
650	650	related to the agency or a contractor of the agency.
651	651	Sec. 531.727. ALLEGATIONS OF MISCONDUCT AGAINST PRESIDING
652	652	OFFICER. If a review by the inspector general involves allegations
653	653	that a presiding officer of a health and human services agency has
654	654	engaged in misconduct, the inspector general shall report to the
655	655	governor during the review until the report is completed or the
656	656	review is closed without a finding.
657	657	Sec. 531.728. PERIODIC REPORTING TO STATE AUDITOR AND
658	658	EXECUTIVE COMMISSIONER REQUIRED. The inspector general shall
659	659	timely inform the state auditor and the executive commissioner of
660	660	the initiation of a review of a health and human services agency
661	661	program and the ongoing status of each review.
662	662	Sec. 531.729. REPORTING OFFICE FINDINGS. The inspector
663	663	general shall report the findings of any review or investigation
664	664	conducted by the office to:
665	665	(1) the executive commissioner;
666	666	(2) the governor;
667	667	(3) the lieutenant governor;
668	668	(4) the speaker of the house of representatives;
669	669	(5) the state auditor's office; and
670	670	(6) appropriate law enforcement and prosecutorial
671	671	agencies, including the office of the attorney general, if the
672	672	findings suggest the probability of criminal conduct.
673	673	Sec. 531.730. FLAGRANT VIOLATIONS; IMMEDIATE REPORT. The
674	674	inspector general shall immediately report to the executive
675	675	commissioner, the governor 's general counsel, and the state
676	676	auditor a problem deemed by the inspector general to be
677	677	particularly serious or flagrant, and relating to the
678	678	administration of a program, operation of a health and human
679	679	services agency, or interference with an inspector general review.
680	680	Sec. 531.731. INFORMATION CONFIDENTIAL. (a) Except as
681	681	provided by this section, Sections 531.103 531.729, and 531.733,
682	682	all information and material compiled or maintained by the
683	683	inspector general during a review under this subchapter is:
684	684	(1) confidential and not subject to disclosure under
685	685	Chapter 552; and
686	686	(2) not subject to disclosure, discovery, subpoena, or
687	687	other means of legal compulsion for release to anyone other than the
688	688	state auditor's office, the commission, or the office or its agents
689	689	involved in the review related to that information or material.
690	690	(b) Subsection (a) applies to information the inspector
691	691	general is required to disclose under Sections 531.727, 531.728,
692	692	531.730, and 531.732.
693	693	(c) As the inspector general determines appropriate based
694	694	on evidence sufficient to support an allegation, information
695	695	relating to a review may be disclosed to:
696	696	(1) a law enforcement agency;
697	697	(2) the attorney general's office;
698	698	(3) the state auditor's office; or
699	699	(4) the commission; or
700	700	(5) a licensing or regulatory agency.
701	701	(d) A person that receives information under Subsections
702	702	(b) and (c) may not disclose the information except to the extent
703	703	that disclosure is consistent with the authorized purpose for which
704	704	the person first obtained the information.
705	705	Sec. 531.732. DRAFT OF FINAL REPORT; AGENCY RESPONSE.
706	706	(a) Except in cases in which the office has determined that
707	707	potential fraud, waste, or abuse exists, or a criminal violation
708	708	has occurred, the office shall provide a draft of the final report
709	709	of any review of the operations of a health and human services
710	710	agency to the presiding officer of the agency before publishing the
711	711	office's final report.
712	712	(b) The health and human services agency may provide a
713	713	response to the office 's draft report in the manner prescribed by
714	714	the office not later than the 10th day after the date the draft
715	715	report is received by the agency. The inspector general by rule
716	716	shall specify the format and requirements of the agency response.
717	717	(c) Notwithstanding Subsection (a), the office may not
718	718	provide a draft report to the presiding officer of the agency if in
719	719	the inspector general's opinion providing the draft report could
720	720	negatively affect any anticipated civil or criminal proceedings.
721	721	(d) The office may include any portion of the agency's
722	722	response in the office's final report.
723	723	Sec. 531.733. FINAL REVIEW REPORTS; AGENCY RESPONSE. (a)
724	724	The inspector general shall prepare a final report for each review
725	725	conducted under this subchapter. The final report must include:
726	726	(1) a summary of the activities performed by the
727	727	inspector general in conducting the review;
728	728	(2) a determination of whether wrongdoing was found;
729	729	and
730	730	(3) a description of any findings of wrongdoing.
731	731	(b) The inspector general's final review reports are
732	732	subject to disclosure under Chapter 552.
733	733	(c) All working papers and other documents related to
734	734	compiling the final review reports remain confidential and are not
735	735	subject to disclosure under Chapter 552.
736	736	(d) Not later than the 60th day after the date the office
737	737	issues a final report that identifies deficiencies or
738	738	inefficiencies in, or recommends corrective measures in the
739	739	operations of, a health and human services agency, the agency shall
740	740	file a response that includes:
741	741	(1) an implementation plan and timeline for
742	742	implementing corrective measures; or
743	743	(2) the agency's rationale for declining to implement
744	744	corrective measures for the identified deficiencies or
745	745	inefficiencies or the office's recommended corrective measures, as
746	746	applicable.
747	747	Sec. 531.734. STATE AUDITOR AUDITS, INVESTIGATIONS, AND
748	748	ACCESS TO INFORMATION NOT IMPAIRED. This subchapter or other law
749	749	related to the operation of the inspector general does not prohibit
750	750	the state auditor from conducting an audit, investigation, or other
751	751	review or from having full and complete access to all records and
752	752	other information including witnesses and electronic data, that the
753	753	state auditor considers necessary for the audit, investigation, or
754	754	other review.
755	755	Sec. 531.735. AUTHORITY OF STATE AUDITOR TO CONDUCT TIMELY
756	756	AUDITS NOT IMPAIRED. This chapter or other law related to the
757	757	operation of the inspector general does not take precedence over
758	758	the authority of the state auditor to conduct an audit under Chapter
759	759	321 or other law.
760	760	Sec. 531.736. BUDGET. (a) The inspector general shall
761	761	submit a budget in accordance with the reporting requirements of
762	762	the General Appropriations Act.
763	763	(b) The inspector general shall submit to the commission a
764	764	legislative appropriations request and an operating budget in
765	765	accordance with the service level agreement entered into under
766	766	Section 531.704 and applicable law.
767	767	(c) The commission shall submit the office's appropriations
768	768	request and, if required by or under law, operating budget to the
769	769	legislature. The request or budget is not subject to review,
770	770	alteration, or modification by the commission or executive
771	771	commissioner before submission to the legislature.
772	772	Sec. 531.737. COSTS. (a) The inspector general shall
773	773	maintain information regarding the cost of reviews.
774	774	(b) The inspector general may cooperate with appropriate
775	775	administrative and prosecutorial agencies, including the office of
776	776	the attorney general, in recovering costs incurred under this
777	777	subchapter from nongovernmental entities, including contractors or
778	778	individuals involved in:
779	779	(1) violations of applicable state or federal rules or
780	780	statutes;
781	781	(2) abusive or willful misconduct; or
782	782	(3) violations of a provider contract or program
783	783	policy.
784	784	(c) In criminal cases the inspector general and the Office
785	785	of Attorney General shall cooperate to ensure that all appropriate
786	786	evidence is submitted to the court in all criminal prosecutions
787	787	towards ensuring that restitution is ordered, to include the
788	788	overpayment and the costs incurred under this subchapter, as a
789	789	condition of probation or as a condition of parole.
790	790	Sec. 531.738. ADMINISTRATIVE OR CIVIL PENALTY; INJUNCTION.
791	791	(a) The office may:
792	792	(1) act for a health and human services agency in the
793	793	assessment by the office of administrative or civil penalties the
794	794	agency is authorized to assess under applicable law; and
795	795	(2) request that the attorney general obtain an
796	796	injunction to prevent a person from disposing of an asset
797	797	identified by the office as potentially subject to recovery by the
798	798	office due to the person's fraud, waste, or abuse.
799	799	(b) If the office imposes an administrative or civil penalty
800	800	under Subsection (a) for a health and human services agency:
801	801	(1) the health and human services agency may not
802	802	impose an administrative or civil penalty against the same person
803	803	for the same violation; and
804	804	(2) the office shall impose the penalty under
805	805	applicable rules of the office, this subchapter, and applicable
806	806	laws and rules governing the imposition of a penalty by the health
807	807	and human services agency.
808	808	Sec. 531.739. PEACE OFFICER INVESTIGATORS. (a) An
809	809	investigator assigned to conduct investigations for the office may
810	810	be a commissioned peace officer. The number of commissioned peace
811	811	officers assigned to conduct investigations may not exceed 15
812	812	percent of the office's full-time equivalent positions.
813	813	(b) A commissioned peace officer or otherwise designated
814	814	law enforcement officer employed by the office is not entitled to
815	815	supplemental benefits from the law enforcement and custodial
816	816	officer supplemental retirement fund unless the officer transfers
817	817	from a position, without a break in service, that qualifies for
818	818	supplemental retirement benefits from the fund.
819	819	SECTION 2. Section 531.001, Government Code, is amended by
820	820	adding Subdivision (4-a) to read as follows:
821	821	(4-a) "Office of inspector general" means the office
822	822	of inspector general established under Subchapter R.
823	823	SECTION 3. Section 531.008(c), Government Code, is amended
824	824	to read as follows:
825	825	(c) The executive commissioner shall establish the
826	826	following divisions and offices within the commission:
827	827	(1) the eligibility services division to make
828	828	eligibility determinations for services provided through the
829	829	commission or a health and human services agency related to:
830	830	(A) the child health plan program;
831	831	(B) the financial assistance program under
832	832	Chapter 31, Human Resources Code;
833	833	(C) the medical assistance program under Chapter
834	834	32, Human Resources Code;
835	835	(D) the nutritional assistance programs under
836	836	Chapter 33, Human Resources Code;
837	837	(E) long-term care services, as defined by
838	838	Section 22.0011, Human Resources Code;
839	839	(F) community-based support services identified
840	840	or provided in accordance with Section 531.02481; and
841	841	(G) other health and human services programs, as
842	842	appropriate;
843	843	(2) [the office of inspector general to perform fraud
844	844	and abuse investigation and enforcement functions as provided by
845	845	Subchapter C and other law;
846	846	[(3)] the office of the ombudsman to:
847	847	(A) provide dispute resolution services for the
848	848	commission and the health and human services agencies; and
849	849	(B) perform consumer protection functions
850	850	related to health and human services;
851	851	(3) [(4)] a purchasing division as provided by Section
852	852	531.017; and
853	853	(4) [(5)] an internal audit division to conduct a
854	854	program of internal auditing in accordance with [Government Code,]
855	855	Chapter 2102.
856	856	SECTION 4. Sections 531.103(a), (c), and (d), Government
857	857	Code, are amended to read as follows:
858	858	(a) The [commission, acting through the commission's]
859	859	office of inspector general[,] and the office of the attorney
860	860	general shall enter into a memorandum of understanding to develop
861	861	and implement joint written procedures for processing cases of
862	862	suspected fraud, waste, or abuse, as those terms are defined by
863	863	state or federal law, or other violations of state or federal law
864	864	under the state Medicaid program or other program administered by
865	865	the commission or a health and human services agency, including the
866	866	financial assistance program under Chapter 31, Human Resources
867	867	Code, a nutritional assistance program under Chapter 33, Human
868	868	Resources Code, and the child health plan program. The memorandum
869	869	of understanding shall require:
870	870	(1) the office of inspector general and the office of
871	871	the attorney general to set priorities and guidelines for referring
872	872	cases to appropriate state agencies for investigation,
873	873	prosecution, or other disposition to enhance deterrence of fraud,
874	874	waste, abuse, or other violations of state or federal law,
875	875	including a violation of Chapter 102, Occupations Code, in the
876	876	programs and maximize the imposition of penalties, the recovery of
877	877	money, and the successful prosecution of cases;
878	878	(1-a) the office of inspector general to refer each
879	879	case of suspected provider fraud, waste, or abuse to the office of
880	880	the attorney general not later than the 20th business day after the
881	881	date the office of inspector general determines that the existence
882	882	of fraud, waste, or abuse is reasonably indicated;
883	883	(1-b) the office of the attorney general to take
884	884	appropriate action in response to each case referred to the
885	885	attorney general, which action may include direct initiation of
886	886	prosecution, with the consent of the appropriate local district or
887	887	county attorney, direct initiation of civil litigation, referral to
888	888	an appropriate United States attorney, a district attorney, or a
889	889	county attorney, or referral to a collections agency for initiation
890	890	of civil litigation or other appropriate action;
891	891	(2) the office of inspector general to keep detailed
892	892	records for cases processed by that office or the office of the
893	893	attorney general, including information on the total number of
894	894	cases processed and, for each case:
895	895	(A) the agency and division to which the case is
896	896	referred for investigation;
897	897	(B) the date on which the case is referred; and
898	898	(C) the nature of the suspected fraud, waste, or
899	899	abuse;
900	900	(3) the office of inspector general to notify each
901	901	appropriate division of the office of the attorney general of each
902	902	case referred by the office of inspector general;
903	903	(4) the office of the attorney general to ensure that
904	904	information relating to each case investigated by that office is
905	905	available to each division of the office with responsibility for
906	906	investigating suspected fraud, waste, or abuse;
907	907	(5) the office of the attorney general to notify the
908	908	office of inspector general of each case the attorney general
909	909	declines to prosecute or prosecutes unsuccessfully;
910	910	(6) representatives of the office of inspector general
911	911	and of the office of the attorney general to meet not less than
912	912	quarterly to share case information and determine the appropriate
913	913	agency and division to investigate each case; and
914	914	(7) the office of inspector general and the office of
915	915	the attorney general to submit information requested by the
916	916	comptroller about each resolved case for the comptroller's use in
917	917	improving fraud detection.
918	918	(c) The office of inspector general [commission] and the
919	919	office of the attorney general shall jointly prepare and submit a
920	920	semiannual report to the governor, lieutenant governor, speaker of
921	921	the house of representatives, and comptroller concerning the
922	922	activities of the office of the attorney general and the office of
923	923	inspector general [those agencies] in detecting and preventing
924	924	fraud, waste, and abuse under the state Medicaid program or other
925	925	program administered by the commission or a health and human
926	926	services agency. The report may be consolidated with any other
927	927	report relating to the same subject matter the office of inspector
928	928	general [commission] or office of the attorney general is required
929	929	to submit under other law.
930	930	(d) The office of inspector general [commission] and the
931	931	office of the attorney general may not assess or collect
932	932	investigation and attorney's fees on behalf of any state agency
933	933	unless the office of inspector general, the office of the attorney
934	934	general, or another [other] state agency collects a penalty,
935	935	restitution, or other reimbursement payment to the state.
936	936	SECTION 5. Section 531.1031(a)(2), Government Code, is
937	937	amended o read as follows:
938	938	(2) "Participating agency" means:
939	939	(A) the Medicaid fraud enforcement divisions of
940	940	the office of the attorney general; [and]
941	941	(B) each board or agency with authority to
942	942	license, register, regulate, or certify a health care professional
943	943	or managed care organization that may participate in the state
944	944	Medicaid program; and
945	945	(C) the office of inspector general.
946	946	SECTION 6. Section 531.104(a), Government Code, is amended
947	947	to read as follows:
948	948	(a) The office of inspector general [commission] and the
949	949	attorney general shall execute a memorandum of understanding under
950	950	which the office [commission] shall provide investigative support
951	951	as required to the attorney general in connection with cases under
952	952	Subchapter B, Chapter 36, Human Resources Code. Under the
953	953	memorandum of understanding, the office [commission] shall assist
954	954	in performing preliminary investigations and ongoing
955	955	investigations for actions prosecuted by the attorney general under
956	956	Subchapter C, Chapter 36, Human Resources Code.
957	957	SECTION 7. Section 531.105, Government Code, is amended to
958	958	read as follows:
959	959	Sec. 531.105. FRAUD DETECTION TRAINING. [(a)] The office
960	960	of inspector general [commission] shall develop and implement a
961	961	program to provide annual training to contractors who process
962	962	Medicaid claims and appropriate staff of the health and human
963	963	services agencies [Texas Department of Health and the Texas
964	964	Department of Human Services] in identifying potential cases of
965	965	fraud, waste, or abuse under the state Medicaid program. The
966	966	training provided to the contractors and staff must include clear
967	967	criteria that specify:
968	968	(1) the circumstances under which a person should
969	969	refer a potential case to the office [commission]; and
970	970	(2) the time by which a referral should be made.
971	971	[(b) The Texas Department of Health and the Texas Department
972	972	of Human Services, in cooperation with the commission, shall
973	973	periodically set a goal of the number of potential cases of fraud,
974	974	waste, or abuse under the state Medicaid program that each agency
975	975	will attempt to identify and refer to the commission. The
976	976	commission shall include information on the agencies' goals and the
977	977	success of each agency in meeting the agency's goal in the report
978	978	required by Section 531.103(c).]
979	979	SECTION 8. Sections 531.106(f) and (g), Government Code,
980	980	are amended to read as follows:
981	981	(f) Cases [The commission shall refer cases] identified by
982	982	the technology shall be referred to the [commission's] office of
983	983	inspector general [investigations and enforcement] or the office of
984	984	the attorney general, as appropriate.
985	985	(g) Each month, the learning or neural network technology
986	986	implemented under this section must match bureau of vital
987	987	statistics death records with Medicaid claims filed by a provider.
988	988	If the commission or the office of inspector general determines
989	989	that a provider has filed a claim for services provided to a person
990	990	after the person's date of death, as determined by the bureau of
991	991	vital statistics death records, [the commission shall refer] the
992	992	case shall be referred for investigation to the office of inspector
993	993	general or the office of the attorney general, as appropriate [to
994	994	the commission's office of investigations and enforcement].
995	995	SECTION 9. Section 531.1061, Government Code, is amended to
996	996	read as follows:
997	997	Sec. 531.1061. FRAUD INVESTIGATION TRACKING SYSTEM. (a)
998	998	The office of inspector general [commission] shall use an automated
999	999	fraud investigation tracking system [through the commission's
1000	1000	office of investigations and enforcement] to monitor the progress
1001	1001	of an investigation of suspected fraud, waste, abuse, or
1002	1002	insufficient quality of care under the state Medicaid program.
1003	1003	(b) For each case of suspected fraud, waste, abuse, or
1004	1004	insufficient quality of care identified by the learning or neural
1005	1005	network technology required under Section 531.106, the automated
1006	1006	fraud investigation tracking system must:
1007	1007	(1) receive electronically transferred records
1008	1008	relating to the identified case from the learning or neural network
1009	1009	technology;
1010	1010	(2) record the details and monitor the status of an
1011	1011	investigation of the identified case, including maintaining a
1012	1012	record of the beginning and completion dates for each phase of the
1013	1013	case investigation;
1014	1014	(3) generate documents and reports related to the
1015	1015	status of the case investigation; and
1016	1016	(4) generate standard letters to a provider regarding
1017	1017	the status or outcome of an investigation.
1018	1018	(c) Each [The commission shall require each] health and
1019	1019	human services agency that performs any aspect of the state
1020	1020	Medicaid program shall [to] participate in the implementation and
1021	1021	use of the automated fraud investigation tracking system as
1022	1022	directed by the office.
1023	1023	SECTION 10. Section 531.1062(a), Government Code, is
1024	1024	amended to read as follows:
1025	1025	(a) The office of inspector general [commission] shall use
1026	1026	an automated recovery monitoring system to monitor the collections
1027	1027	process for a settled case of fraud, waste, abuse, or insufficient
1028	1028	quality of care under the state Medicaid program.
1029	1029	SECTION 11. Sections 531.107(a) and (f), Government Code,
1030	1030	are amended to read as follows:
1031	1031	(a) The Medicaid and Public Assistance Fraud Oversight Task
1032	1032	Force advises and assists the [commission and the commission's]
1033	1033	office of inspector general [investigations and enforcement] in
1034	1034	improving the efficiency of fraud investigations and collections.
1035	1035	(f) At least once each fiscal quarter, the [commission's]
1036	1036	office of inspector general [investigations and enforcement] shall
1037	1037	provide to the task force:
1038	1038	(1) information detailing:
1039	1039	(A) the number of fraud referrals made to the
1040	1040	office and the origin of each referral;
1041	1041	(B) the time spent investigating each case;
1042	1042	(C) the number of cases investigated each month,
1043	1043	by program and region;
1044	1044	(D) the dollar value of each fraud case that
1045	1045	results in a criminal conviction; and
1046	1046	(E) the number of cases the office rejects and
1047	1047	the reason for rejection, by region; and
1048	1048	(2) any additional information the task force
1049	1049	requires.
1050	1050	SECTION 12. Sections 531.108 and 531.109, Government Code,
1051	1051	are amended to read as follows:
1052	1052	Sec. 531.108. FRAUD PREVENTION. (a) The [commission's]
1053	1053	office of inspector general [investigations and enforcement] shall
1054	1054	compile and disseminate accurate information and statistics
1055	1055	relating to:
1056	1056	(1) fraud prevention; and
1057	1057	(2) post-fraud referrals received and accepted or
1058	1058	rejected from the office's [commission's] case management system or
1059	1059	the case management system of a health and human services agency.
1060	1060	(b) The office of inspector general [commission] shall[:
1061	1061	[(1)] aggressively publicize successful fraud
1062	1062	prosecutions and fraud-prevention programs through all available
1063	1063	means, including the use of statewide press releases [issued in
1064	1064	coordination with the Texas Department of Human Services; and
1065	1065	[(2) ensure that a toll-free hotline for reporting
1066	1066	suspected fraud in programs administered by the commission or a
1067	1067	health and human services agency is maintained and promoted, either
1068	1068	by the commission or by a health and human services agency].
1069	1069	(c) The office of inspector general [commission] shall
1070	1070	develop a cost-effective method of identifying applicants for
1071	1071	public assistance in counties bordering other states and in
1072	1072	metropolitan areas selected by the office [commission] who are
1073	1073	already receiving benefits in other states. If economically
1074	1074	feasible, the office [commission] may develop a computerized
1075	1075	matching system.
1076	1076	(d) The office of inspector general [commission] shall:
1077	1077	(1) verify automobile information that is used as
1078	1078	criteria for eligibility; and
1079	1079	(2) establish a computerized matching system with the
1080	1080	Texas Department of Criminal Justice to prevent an incarcerated
1081	1081	individual from illegally receiving public assistance benefits
1082	1082	administered by the commission.
1083	1083	(e) The office of inspector general [commission] shall
1084	1084	submit to the governor and Legislative Budget Board a semiannual
1085	1085	report on the results of computerized matching of office and
1086	1086	commission information with information from neighboring states,
1087	1087	if any, and information from the Texas Department of Criminal
1088	1088	Justice. The report may be consolidated with any other report
1089	1089	relating to the same subject matter the office [commission] is
1090	1090	required to submit under other law.
1091	1091	Sec. 531.109. SELECTION AND REVIEW OF CLAIMS. (a) The
1092	1092	office of inspector general [commission] shall annually select and
1093	1093	review a random, statistically valid sample of all claims for
1094	1094	reimbursement under the state Medicaid program, including the
1095	1095	vendor drug program, for potential cases of fraud, waste, or abuse.
1096	1096	(b) In conducting the annual review of claims under
1097	1097	Subsection (a), the office of inspector general [commission] may
1098	1098	directly contact a recipient by telephone or in person, or both, to
1099	1099	verify that the services for which a claim for reimbursement was
1100	1100	submitted by a provider were actually provided to the recipient.
1101	1101	(c) Based on the results of the annual review of claims, the
1102	1102	office of inspector general and the commission shall determine the
1103	1103	types of claims at which office and commission resources for fraud,
1104	1104	waste, and abuse detection should be primarily directed.
1105	1105	SECTION 13. Sections 531.110(a), (c), (d), (e), and (f),
1106	1106	Government Code, are amended to read as follows:
1107	1107	(a) The office of inspector general [commission] shall
1108	1108	conduct electronic data matches for a recipient of assistance under
1109	1109	the state Medicaid program at least quarterly to verify the
1110	1110	identity, income, employment status, and other factors that affect
1111	1111	the eligibility of the recipient.
1112	1112	(c) The commission and other health and human services
1113	1113	agencies [Texas Department of Human Services] shall cooperate with
1114	1114	the office of inspector general [commission] by providing data or
1115	1115	any other assistance necessary to conduct the electronic data
1116	1116	matches required by this section.
1117	1117	(d) The office of inspector general [commission] may
1118	1118	contract with a public or private entity to conduct the electronic
1119	1119	data matches required by this section.
1120	1120	(e) The office of inspector general [commission], or a
1121	1121	health and human services agency designated by the office
1122	1122	[commission], by rule shall establish procedures to verify the
1123	1123	electronic data matches conducted by the office [commission] under
1124	1124	this section. Not later than the 20th day after the date the
1125	1125	electronic data match is verified, the commission and other health
1126	1126	and human services agencies [Texas Department of Human Services]
1127	1127	shall remove from eligibility a recipient who is determined to be
1128	1128	ineligible for assistance under the state Medicaid program.
1129	1129	(f) The office of inspector general [commission] shall
1130	1130	report biennially to the legislature the results of the electronic
1131	1131	data matching program. The report must include a summary of the
1132	1132	number of applicants who were removed from eligibility for
1133	1133	assistance under the state Medicaid program as a result of an
1134	1134	electronic data match conducted under this section.
1135	1135	SECTION 14. Section 531.1112, Government Code, is amended
1136	1136	to read as follows:
1137	1137	Sec. 531.1112. STUDY CONCERNING INCREASED USE OF TECHNOLOGY
1138	1138	TO STRENGTHEN FRAUD DETECTION AND DETERRENCE; IMPLEMENTATION. (a)
1139	1139	The commission and the [commission's] office of inspector general
1140	1140	shall jointly study the feasibility of increasing the use of
1141	1141	technology to strengthen the detection and deterrence of fraud in
1142	1142	the state Medicaid program. The study must include the
1143	1143	determination of the feasibility of using technology to verify a
1144	1144	person's citizenship and eligibility for coverage.
1145	1145	(b) The commission shall implement any methods the
1146	1146	commission and the [commission's] office of inspector general
1147	1147	determine are effective at strengthening fraud detection and
1148	1148	deterrence.
1149	1149	SECTION 15. Section 531.113, Government Code, is amended to
1150	1150	read as follows:
1151	1151	Sec. 531.113. MANAGED CARE ORGANIZATIONS: SPECIAL
1152	1152	INVESTIGATIVE UNITS OR CONTRACTS. (a) Each managed care
1153	1153	organization that provides or arranges for the provision of health
1154	1154	care services to an individual under a government-funded program,
1155	1155	including the Medicaid program and the child health plan program,
1156	1156	shall:
1157	1157	(1) establish and maintain a special investigative
1158	1158	unit within the managed care organization to investigate fraudulent
1159	1159	claims and other types of program waste or abuse by recipients and
1160	1160	service providers; or
1161	1161	(2) contract with another entity for the investigation
1162	1162	of fraudulent claims and other types of program waste or abuse by
1163	1163	recipients and service providers.
1164	1164	(b) Each managed care organization subject to this section
1165	1165	shall adopt a plan to prevent and reduce fraud, waste, and abuse and
1166	1166	annually file that plan with the [commission's] office of inspector
1167	1167	general for approval. The plan must include:
1168	1168	(1) a description of the managed care organization's
1169	1169	procedures for detecting and investigating possible acts of fraud,
1170	1170	waste, or abuse;
1171	1171	(2) a description of the managed care organization's
1172	1172	procedures for the mandatory reporting of possible acts of fraud,
1173	1173	waste, or abuse to the [commission's] office of inspector general;
1174	1174	(3) a description of the managed care organization's
1175	1175	procedures for educating and training personnel to prevent fraud,
1176	1176	waste, and abuse;
1177	1177	(4) the name, address, telephone number, and fax
1178	1178	number of the individual responsible for carrying out the plan;
1179	1179	(5) a description or chart outlining the
1180	1180	organizational arrangement of the managed care organization's
1181	1181	personnel responsible for investigating and reporting possible
1182	1182	acts of fraud, waste, or abuse;
1183	1183	(6) a detailed description of the results of
1184	1184	investigations of fraud, waste, and abuse conducted by the managed
1185	1185	care organization's special investigative unit or the entity with
1186	1186	which the managed care organization contracts under Subsection
1187	1187	(a)(2); and
1188	1188	(7) provisions for maintaining the confidentiality of
1189	1189	any patient information relevant to an investigation of fraud,
1190	1190	waste, or abuse.
1191	1191	(c) If a managed care organization contracts for the
1192	1192	investigation of fraudulent claims and other types of program waste
1193	1193	or abuse by recipients and service providers under Subsection
1194	1194	(a)(2), the managed care organization shall file with the
1195	1195	[commission's] office of inspector general:
1196	1196	(1) a copy of the written contract;
1197	1197	(2) the names, addresses, telephone numbers, and fax
1198	1198	numbers of the principals of the entity with which the managed care
1199	1199	organization has contracted; and
1200	1200	(3) a description of the qualifications of the
1201	1201	principals of the entity with which the managed care organization
1202	1202	has contracted.
1203	1203	(d) The [commission's] office of inspector general may
1204	1204	review the records of a managed care organization to determine
1205	1205	compliance with this section.
1206	1206	(e) The inspector general [commissioner] shall adopt rules
1207	1207	as necessary to accomplish the purposes of this section.
1208	1208	SECTION 16. Sections 531.114(b) and (g), Government Code,
1209	1209	are amended to read as follows:
1210	1210	(b) If after an investigation the office of inspector
1211	1211	general [commission] determines that a person violated Subsection
1212	1212	(a), the office [commission] shall:
1213	1213	(1) notify the person of the alleged violation not
1214	1214	later than the 30th day after the date the office [commission]
1215	1215	completes the investigation and provide the person with an
1216	1216	opportunity for a hearing on the matter; or
1217	1217	(2) refer the matter to the appropriate prosecuting
1218	1218	attorney for prosecution.
1219	1219	(g) The inspector general [commission] shall adopt rules as
1220	1220	necessary to implement this section.
1221	1221	SECTION 17. Section 533.005(a), Government Code, is amended
1222	1222	to read as follows:
1223	1223	(a) A contract between a managed care organization and the
1224	1224	commission for the organization to provide health care services to
1225	1225	recipients must contain:
1226	1226	(1) procedures to ensure accountability to the state
1227	1227	for the provision of health care services, including procedures for
1228	1228	financial reporting, quality assurance, utilization review, and
1229	1229	assurance of contract and subcontract compliance;
1230	1230	(2) capitation rates that ensure the cost-effective
1231	1231	provision of quality health care;
1232	1232	(3) a requirement that the managed care organization
1233	1233	provide ready access to a person who assists recipients in
1234	1234	resolving issues relating to enrollment, plan administration,
1235	1235	education and training, access to services, and grievance
1236	1236	procedures;
1237	1237	(4) a requirement that the managed care organization
1238	1238	provide ready access to a person who assists providers in resolving
1239	1239	issues relating to payment, plan administration, education and
1240	1240	training, and grievance procedures;
1241	1241	(5) a requirement that the managed care organization
1242	1242	provide information and referral about the availability of
1243	1243	educational, social, and other community services that could
1244	1244	benefit a recipient;
1245	1245	(6) procedures for recipient outreach and education;
1246	1246	(7) a requirement that the managed care organization
1247	1247	make payment to a physician or provider for health care services
1248	1248	rendered to a recipient under a managed care plan not later than the
1249	1249	45th day after the date a claim for payment is received with
1250	1250	documentation reasonably necessary for the managed care
1251	1251	organization to process the claim, or within a period, not to exceed
1252	1252	60 days, specified by a written agreement between the physician or
1253	1253	provider and the managed care organization;
1254	1254	(8) a requirement that the commission, on the date of a
1255	1255	recipient's enrollment in a managed care plan issued by the managed
1256	1256	care organization, inform the organization of the recipient's
1257	1257	Medicaid certification date;
1258	1258	(9) a requirement that the managed care organization
1259	1259	comply with Section 533.006 as a condition of contract retention
1260	1260	and renewal;
1261	1261	(10) a requirement that the managed care organization
1262	1262	provide the information required by Section 533.012 and otherwise
1263	1263	comply and cooperate with the [commission's] office of inspector
1264	1264	general;
1265	1265	(11) a requirement that the managed care
1266	1266	organization's usages of out-of-network providers or groups of
1267	1267	out-of-network providers may not exceed limits for those usages
1268	1268	relating to total inpatient admissions, total outpatient services,
1269	1269	and emergency room admissions determined by the commission;
1270	1270	(12) if the commission finds that a managed care
1271	1271	organization has violated Subdivision (11), a requirement that the
1272	1272	managed care organization reimburse an out-of-network provider for
1273	1273	health care services at a rate that is equal to the allowable rate
1274	1274	for those services, as determined under Sections 32.028 and
1275	1275	32.0281, Human Resources Code;
1276	1276	(13) a requirement that the organization use advanced
1277	1277	practice nurses in addition to physicians as primary care providers
1278	1278	to increase the availability of primary care providers in the
1279	1279	organization's provider network;
1280	1280	(14) a requirement that the managed care organization
1281	1281	reimburse the state for any overpayments resulting from fraud,
1282	1282	waste or abuse in the Medicaid program, the child health plan
1283	1283	program, or another government funded program.
1284	1284	(15) a requirement that the managed care organization
1285	1285	reimburse a federally qualified health center or rural health
1286	1286	clinic for health care services provided to a recipient outside of
1287	1287	regular business hours, including on a weekend day or holiday, at a
1288	1288	rate that is equal to the allowable rate for those services as
1289	1289	determined under Section 32.028, Human Resources Code, if the
1290	1290	recipient does not have a referral from the recipient's primary
1291	1291	care physician; and
1292	1292	(16) a requirement that the managed care organization
1293	1293	develop, implement, and maintain a system for tracking and
1294	1294	resolving all provider appeals related to claims payment, including
1295	1295	a process that will require:
1296	1296	(A) a tracking mechanism to document the status
1297	1297	and final disposition of each provider's claims payment appeal;
1298	1298	(B) the contracting with physicians who are not
1299	1299	network providers and who are of the same or related specialty as
1300	1300	the appealing physician to resolve claims disputes related to
1301	1301	denial on the basis of medical necessity that remain unresolved
1302	1302	subsequent to a provider appeal; and
1303	1303	(C) the determination of the physician resolving
1304	1304	the dispute to be binding on the managed care organization and
1305	1305	provider.
1306	1306	SECTION 18. Section 533.012(c), Government Code, is amended
1307	1307	to read as follows:
1308	1308	(c) The [commission's] office of inspector general
1309	1309	[investigations and enforcement] shall review the information
1310	1310	submitted under this section as appropriate in the investigation of
1311	1311	fraud in the Medicaid managed care program.
1312	1312	SECTION 4. Section 531.002(17), Health and Safety Code, is
1313	1313	amended to read as follows:
1314	1314	(17) "State developmental center [school]" means a
1315	1315	state-supported and structured residential facility operated by
1316	1316	the Department of Aging and Disability Services [department] to
1317	1317	provide to clients with mental retardation a variety of services,
1318	1318	including medical treatment, specialized therapy, and training in
1319	1319	the acquisition of personal, social, and vocational skills.
1320	1320	Sec. 531.0021. REFERENCE TO STATE SCHOOL OR SUPERINTENDENT.
1321	1321	(a) A reference in law to a "state school" means a state
1322	1322	development center.
1323	1323	(b) A reference in law to a "superintendent," to the extent
1324	1324	the term is intended to refer to the person in charge of a state
1325	1325	developmental center, means the director of a state developmental
1326	1326	center.
1327	1327	SECTION 6. Section 532.001(b), Health and Safety Code, is
1328	1328	amended to read as follows:
1329	1329	(b) The Department of Aging and Disability Services and the
1330	1330	Department of State Health Services [department] also include
1331	1331	[includes] community services operated by those departments [the
1332	1332	department] and the following facilities, appropriate:
1333	1333	(1) the central office of the department;
1334	1334	(2) the Austin State Hospital;
1335	1335	(3) the Big Spring State Hospital;
1336	1336	(4) the Kerrville State Hospital;
1337	1337	(5) the Rusk State Hospital;
1338	1338	(6) the San Antonio State Hospital;
1339	1339	(7) the Terrell State Hospital;
1340	1340	(8) the North Texas State Hospital;
1341	1341	(9) the Abilene State Developmental Center [School];
1342	1342	(10) the Austin State Developmental Center [School];
1343	1343	(11) the Brenham State Developmental Center [School];
1344	1344	(12) the Corpus Christi State Developmental Center
1345	1345	[School];
1346	1346	(13) the Denton State Developmental Center [School];
1347	1347	(14) the Lubbock State Developmental Center [School];
1348	1348	(15) the Lufkin State Developmental Center [School];
1349	1349	(16) the Mexia State Developmental Center [School];
1350	1350	(17) the Richmond State Developmental Center
1351	1351	[School];
1352	1352	(18) the San Angelo State Developmental Center
1353	1353	[School];
1354	1354	(19) the San Antonio State Developmental Center
1355	1355	[School];
1356	1356	(20) the El Paso State Developmental Center;
1357	1357	(21) the Rio Grande State Center; and
1358	1358	(22) the Waco Center for Youth.
1359	1359	SECTION 7. Section 551.022, Health and Safety Code, is
1360	1360	amended by adding Subsection (e) to read as follows:
1361	1361	(e) This section does not apply to a state developmental
1362	1362	center or the director of a state developmental center.
1363	1363	SECTION 8. Subchapter B, Chapter 551, Health and Safety
1364	1364	Code, is amended by adding Section 551.0225 to read as follows:
1365	1365	Sec. 551.0225. POWERS AND DUTIES OF STATE DEVELOPMENTAL
1366	1366	CENTER DIRECTOR. (a) The director of a state developmental center
1367	1367	is the administrative head of the center.
1368	1368	(b) The director of a state developmental center has the
1369	1369	custody of and responsibility to care for the buildings, grounds,
1370	1370	furniture, and other property relating to the center.
1371	1371	(c) The director of a state developmental center shall:
1372	1372	(1) oversee the admission and discharge of residents
1373	1373	and clients;
1374	1374	(2) keep a register of all residents and clients
1375	1375	admitted to or discharged from the center;
1376	1376	(3) supervise repairs and improvements to the center;
1377	1377	(4) ensure that center money is spent judiciously and
1378	1378	economically;
1379	1379	(5) keep an accurate and detailed account of all money
1380	1380	received and spent, stating the source of the money and on whom and
1381	1381	the purpose for which the money is spent; and
1382	1382	(6) keep a full record of the center's operations.
1383	1383	(d) In accordance with departmental rules and operating
1384	1384	procedures, the director of a state developmental center may:
1385	1385	(1) establish policy to govern the state developmental
1386	1386	center that the director considers will best promote the residents'
1387	1387	interest and welfare;
1388	1388	(2) hire subordinate employees and set their salaries,
1389	1389	in the absence of other law; and
1390	1390	(3) dismiss a subordinate employee.
1391	1391	SECTION 9. Subtitle B, Title 7, Health and Safety Code, is
1392	1392	amended by adding Chapter 555 to read as follows:
1393	1393	SECTION 5. Chapter 531, Health and Safety Code, is amended
1394	1394	by adding Section 531.0021 to read as follows:
1395	1395	CHAPTER 555. STATE DEVELOPMENTAL CENTERS
1396	1396	SUBCHAPTER A. GENERAL PROVISIONS
1397	1397	Sec. 555.001. DEFINITIONS. In this chapter:
1398	1398	(1) "Client" means a person with mental retardation
1399	1399	who receives ICF-MR services from a state developmental center.
1400	1400	(2) "Commission" means the Health and Human Services
1401	1401	Commission.
1402	1402	(3) "Complaint" means information received by the
1403	1403	office of independent ombudsman regarding a possible violation of a
1404	1404	right of a resident or client of a state developmental center and
1405	1405	includes information received regarding a failure by a state
1406	1406	developmental center to comply with the department's policies and
1407	1407	procedures relating to the community living options information
1408	1408	process or related laws.
1409	1409	(4) "Department" means the Department of Aging and
1410	1410	Disability Services.
1411	1411	(5) "Developmental center employee" means an employee
1412	1412	of a state developmental center.
1413	1413	(6) "Direct care employee" means a developmental
1414	1414	center employee who provides direct delivery of services to a
1415	1415	resident or client.
1416	1416	(7) "Executive commissioner" means the executive
1417	1417	commissioner of the Health and Human Services Commission.
1418	1418	(8) "Independent ombudsman" means the individual who
1419	1419	has been appointed to the office of independent ombudsman.
1420	1420	(9) "Office" means the office of independent ombudsman
1421	1421	established under Subchapter C.
1422	1422	(10) "Resident" means a person with mental retardation
1423	1423	who resides in a state developmental center.
1424	1424	(11) "State developmental center" has the meaning
1425	1425	assigned by Section 531.002.
1426	1426	Sec. 555.002. STATE DEVELOPMENTAL CENTER FOR HIGH-RISK
1427	1427	RESIDENTS. (a) The department shall establish a separate state
1428	1428	developmental center for the care of residents who present a high
1429	1429	risk of dangerous or violent behavior as provided by Subsections
1430	1430	(b) and (c). The department shall designate an existing state
1431	1431	developmental center for those high-risk residents.
1432	1432	(b) A resident is a high-risk resident if the person:
1433	1433	(1) was committed to or transferred to a state
1434	1434	developmental center under Chapter 46B or 46C, Code of Criminal
1435	1435	Procedure, as a result of being charged with or convicted of an
1436	1436	offense listed in Subsection (c); or
1437	1437	(2) is a child committed to or transferred to a state
1438	1438	developmental center under Chapter 55, Family Code, as a result of
1439	1439	being alleged by petition or having been found to have engaged in
1440	1440	delinquent conduct constituting an offense listed in Subsection
1441	1441	(c).
1442	1442	(c) A resident may be considered a high-risk resident if the
1443	1443	person:
1444	1444	(1) has inflicted, attempted to inflict, or made a
1445	1445	serious threat of inflicting substantial physical harm to the
1446	1446	resident's self or to another while committed to a state
1447	1447	developmental center; or
1448	1448	(2) has been convicted of or charged with any of the
1449	1449	following offenses:
1450	1450	(A) an offense under Chapter 19, Penal Code
1451	1451	(criminal homicide);
1452	1452	(B) an offense under Chapter 20, Penal Code
1453	1453	(kidnapping and unlawful restraint);
1454	1454	(C) an offense under Section 21.02, Penal Code
1455	1455	(continuous sexual abuse of young child or children);
1456	1456	(D) an offense under Section 22.011, Penal Code
1457	1457	(sexual assault);
1458	1458	(E) an offense under Section 22.02, Penal Code
1459	1459	(aggravated assault);
1460	1460	(F) an offense under Section 22.021, Penal Code
1461	1461	(aggravated sexual assault);
1462	1462	(G) an offense under Section 22.04, Penal Code
1463	1463	(injury to a child, elderly individual, or disabled individual);
1464	1464	(H) an offense under Section 28.02, Penal Code
1465	1465	(arson);
1466	1466	(I) an offense under Section 29.02, Penal Code
1467	1467	(robbery);
1468	1468	(J) an offense under Section 29.03, Penal Code
1469	1469	(aggravated robbery); or
1470	1470	(K) a conviction under the laws of another state,
1471	1471	federal law, or the Uniform Code of Military Justice for an offense
1472	1472	containing elements that are substantially similar to the elements
1473	1473	of an offense listed by this subdivision.
1474	1474	(d) In establishing a state developmental center designated
1475	1475	for high-risk residents, the department shall:
1476	1476	(1) transfer a high-risk resident already residing in
1477	1477	a state developmental center to the designated state developmental
1478	1478	center;
1479	1479	(2) place high-risk residents in separate homes at the
1480	1480	designated state developmental center based on whether the
1481	1481	high-risk resident is:
1482	1482	(A) an adult or a person younger than 18 years of
1483	1483	age; or
1484	1484	(B) male or female;
1485	1485	(3) place all high-risk residents committed to or
1486	1486	transferred to a state developmental center in the designated state
1487	1487	developmental center; and
1488	1488	(4) provide training regarding the service delivery
1489	1489	system for high-risk residents to direct care employees of the
1490	1490	designated state developmental center.
1491	1491	(e) A resident who is transferred to the designated state
1492	1492	developmental center is entitled to an administrative hearing
1493	1493	regarding a transfer of the resident as provided by Section
1494	1494	594.014.
1495	1495	(f) The department shall ensure that the designated state
1496	1496	developmental center complies with the requirements for ICF-MR
1497	1497	certification under the Medicaid program as appropriate.
1498	1498	[Sections 555.003-555.020 reserved for expansion]
1499	1499	Sec. 555.024. DEVELOPMENTAL CENTER EMPLOYEE TRAINING. (a)
1500	1500	Before a developmental center employee begins to perform the
1501	1501	employee's duties without direct supervision, the department shall
1502	1502	provide the employee with competency training and a course of
1503	1503	instruction about the general duties of a developmental center
1504	1504	employee. The department shall ensure the basic developmental
1505	1505	center employee competency course focuses on:
1506	1506	(1) the uniqueness of the individuals the
1507	1507	developmental center employee serves;
1508	1508	(2) techniques for improving quality of life for and
1509	1509	promoting the health and safety of individuals with mental
1510	1510	retardation; and
1511	1511	(3) the conduct expected of developmental center
1512	1512	employees.
1513	1513	(b) The department shall ensure the training required by
1514	1514	Subsection (a) provides instruction and information regarding the
1515	1515	following topics:
1516	1516	(1) the general operation and layout of the state
1517	1517	developmental center, including armed intruder lock down
1518	1518	procedures;
1519	1519	(2) an introduction to mental retardation;
1520	1520	(3) an introduction to mental illness and dual
1521	1521	diagnosis;
1522	1522	(4) the rights of individuals with mental retardation
1523	1523	who receive services from the department;
1524	1524	(5) respecting personal choices made by residents and
1525	1525	clients;
1526	1526	(6) the safe and proper use of restraints;
1527	1527	(7) recognizing and reporting:
1528	1528	(A) abuse, neglect, and exploitation of
1529	1529	individuals with mental retardation;
1530	1530	(B) unusual incidents;
1531	1531	(C) reasonable suspicion of illegal drug use in
1532	1532	the workplace;
1533	1533	(D) workplace violence; and
1534	1534	(E) sexual harassment in the workplace;
1535	1535	(8) preventing and treating infection;
1536	1536	(9) first aid;
1537	1537	(10) cardiopulmonary resuscitation;
1538	1538	(11) the Health Insurance Portability and
1539	1539	Accountability Act of 1996 (29 U.S.C. Section 1181 et seq.); and
1540	1540	(12) the rights of developmental center employees.
1541	1541	(c) In addition to the training required by Subsection (a)
1542	1542	and before a direct care employee begins to perform the direct care
1543	1543	employee's duties without direct supervision, the department shall
1544	1544	provide a direct care employee with training and instructional
1545	1545	information regarding the following topics:
1546	1546	(1) prevention and management of aggressive or
1547	1547	high-risk behavior;
1548	1548	(2) observing and reporting changes in behavior,
1549	1549	appearance, or health of residents and clients;
1550	1550	(3) positive behavior support;
1551	1551	(4) emergency response;
1552	1552	(5) person-directed plans;
1553	1553	(6) seizure safety;
1554	1554	(7) techniques for:
1555	1555	(A) lifting;
1556	1556	(B) positioning; and
1557	1557	(C) movement and mobility;
1558	1558	(8) working with aging residents and clients;
1559	1559	(9) assisting residents and clients:
1560	1560	(A) who have a visual impairment;
1561	1561	(B) who have a hearing deficit; or
1562	1562	(C) who require the use of adaptive devices and
1563	1563	specialized equipment;
1564	1564	(10) communicating with residents and clients who use
1565	1565	augmentative and alternative devices for communication;
1566	1566	(11) assisting residents and clients with personal
1567	1567	hygiene;
1568	1568	(12) recognizing appropriate food textures;
1569	1569	(13) using proper feeding techniques to assist
1570	1570	residents and clients with meals; and
1571	1571	(14) physical and nutritional management plans.
1572	1572	Sec. 555.025. VIDEO SURVEILLANCE. (a) In this section,
1573	1573	"private space" means a place in a state developmental center in
1574	1574	which a resident or client has a reasonable expectation of privacy,
1575	1575	including:
1576	1576	(1) a bedroom;
1577	1577	(2) a bathroom;
1578	1578	(3) a place in which a resident or client receives
1579	1579	medical or nursing services;
1580	1580	(4) a place in which a resident or client meets
1581	1581	privately with visitors; or
1582	1582	(5) a place in which a resident or client privately
1583	1583	makes phone calls.
1584	1584	(b) The department shall install and operate video
1585	1585	surveillance equipment in a state developmental center for the
1586	1586	purpose of detecting and preventing the exploitation or abuse of
1587	1587	residents and clients.
1588	1588	(c) The department may not install or operate video
1589	1589	surveillance equipment in a private space or in a location in which
1590	1590	video surveillance equipment can capture images within a private
1591	1591	space.
1592	1592	(d) The department shall ensure the use of video
1593	1593	surveillance equipment under this section complies with federal
1594	1594	requirements for ICF-MR certification.
1595	1595	SUBCHAPTER C. OFFICE OF INDEPENDENT OMBUDSMAN FOR STATE
1596	1596	DEVELOPMENTAL CENTERS
1597	1597	Sec. 555.051. ESTABLISHMENT; PURPOSE. The office of
1598	1598	independent ombudsman is established for the purpose of
1599	1599	investigating, evaluating, and securing the rights of the residents
1600	1600	and clients of state developmental centers. The office is
1601	1601	administratively attached to the department. The department shall
1602	1602	provide administrative support and resources to the office as
1603	1603	necessary for the office to perform its duties.
1604	1604	Sec. 555.052. INDEPENDENCE. The independent ombudsman in
1605	1605	the performance of the ombudsman's duties and powers under this
1606	1606	subchapter acts independently of the department.
1607	1607	Sec. 555.053. APPOINTMENT OF INDEPENDENT OMBUDSMAN. The
1608	1608	governor shall appoint the independent ombudsman.
1609	1609	Sec. 555.054. ASSISTANT OMBUDSMEN. The independent
1610	1610	ombudsman shall:
1611	1611	(1) hire assistant ombudsmen to perform, under the
1612	1612	direction of the independent ombudsman, the same duties and
1613	1613	exercise the same powers as the independent ombudsman; and
1614	1614	(2) station an assistant ombudsman at each state
1615	1615	developmental center.
1616	1616	Sec. 555.055. CONFLICT OF INTEREST. A person may not serve
1617	1617	as independent ombudsman or as an assistant ombudsman if the person
1618	1618	or the person's spouse:
1619	1619	(1) is employed by or participates in the management
1620	1620	of a business entity or other organization receiving funds from the
1621	1621	department;
1622	1622	(2) owns or controls, directly or indirectly, any
1623	1623	interest in a business entity or other organization receiving funds
1624	1624	from the department; or
1625	1625	(3) is required to register as a lobbyist under
1626	1626	Chapter 305, Government Code, because of the person's activities or
1627	1627	compensation on behalf of a profession related to the operation of
1628	1628	the department.
1629	1629	Sec. 555.056. REPORT. (a) The independent ombudsman shall
1630	1630	submit on a biannual basis to the governor, the lieutenant
1631	1631	governor, and the speaker of the house of representatives a report
1632	1632	that is both aggregated and disaggregated by individual state
1633	1633	developmental center and describes:
1634	1634	(1) the work of the independent ombudsman;
1635	1635	(2) the results of any review or investigation
1636	1636	undertaken by the independent ombudsman, including reviews or
1637	1637	investigation of services contracted by the department; and
1638	1638	(3) any recommendations that the independent
1639	1639	ombudsman has in relation to the duties of the independent
1640	1640	ombudsman.
1641	1641	(b) The independent ombudsman shall ensure that information
1642	1642	submitted in a report under Subsection (a) does not permit the
1643	1643	identification of an individual.
1644	1644	(c) The independent ombudsman shall immediately report to
1645	1645	the governor, lieutenant governor, and speaker of the house of
1646	1646	representatives any particularly serious or flagrant:
1647	1647	(1) case of abuse or injury of a resident or client
1648	1648	about which the independent ombudsman is made aware;
1649	1649	(2) problem concerning the administration of a state
1650	1650	developmental center program or operation; or
1651	1651	(3) interference by a state developmental center, the
1652	1652	department, or the commission with an investigation conducted by
1653	1653	the independent ombudsman.
1654	1654	Sec. 555.057. COMMUNICATION AND CONFIDENTIALITY. (a) The
1655	1655	department shall allow any resident or client, authorized
1656	1656	representative of a resident or client, family member of a resident
1657	1657	or client, or other interested party to communicate with the
1658	1658	independent ombudsman or an assistant ombudsman. The
1659	1659	communication:
1660	1660	(1) may be in person, by mail, or by any other means;
1661	1661	and
1662	1662	(2) is confidential and privileged.
1663	1663	(b) The records of the independent ombudsman are
1664	1664	confidential, except that the independent ombudsman shall:
1665	1665	(1) report to the Department of Family and Protective
1666	1666	Services regarding a communication that may involve the abuse,
1667	1667	neglect, or exploitation of a resident or client;
1668	1668	(2) report to the regulatory services division of the
1669	1669	department regarding a communication that may involve a violation
1670	1670	of an ICF-MR standard or condition of participation; and
1671	1671	(3) disclose the ombudsman's nonprivileged records if
1672	1672	required by a court order on a showing of good cause.
1673	1673	(c) The independent ombudsman may make reports relating to
1674	1674	an investigation conducted by the ombudsman public after the
1675	1675	investigation is complete but only if the name and any other
1676	1676	personally identifiable information of a resident or client,
1677	1677	authorized representative of a resident or client, family member of
1678	1678	a resident or client, state developmental center, and employee of a
1679	1679	state developmental center are redacted from the report and remain
1680	1680	confidential.
1681	1681	(d) The name, address, or other personally identifiable
1682	1682	information of a person who files a complaint with the office of
1683	1683	independent ombudsman, information generated by the office of
1684	1684	independent ombudsman in the course of an investigation, and
1685	1685	confidential records obtained by the office of independent
1686	1686	ombudsman are confidential and not subject to disclosure under
1687	1687	Chapter 552, Government Code, except as provided by this section.
1688	1688	Sec. 555.058. PROMOTION OF AWARENESS OF OFFICE. The
1689	1689	independent ombudsman shall promote awareness among the public,
1690	1690	residents, clients, and employees of state developmental centers
1691	1691	of:
1692	1692	(1) how the office may be contacted;
1693	1693	(2) the purpose of the office; and
1694	1694	(3) the services the office provides.
1695	1695	Sec. 555.059. DUTIES AND POWERS. (a) The independent
1696	1696	ombudsman shall:
1697	1697	(1) evaluate the delivery of services to residents and
1698	1698	clients to ensure that the rights of residents and clients are fully
1699	1699	observed;
1700	1700	(2) refer a complaint alleging the abuse, neglect, or
1701	1701	exploitation of a resident or client to the Department of Family and
1702	1702	Protective Services for investigation;
1703	1703	(3) refer a complaint alleging a possible violation of
1704	1704	an ICF-MR standard or condition of participation to the regulatory
1705	1705	services division of the department;
1706	1706	(4) refer a complaint alleging a criminal offense,
1707	1707	other than an allegation of abuse, neglect, or exploitation of a
1708	1708	resident or client, to the commission's office of inspector
1709	1709	general;
1710	1710	(5) conduct investigations of complaints, other than
1711	1711	complaints alleging criminal offenses or the abuse, neglect, or
1712	1712	exploitation of a resident or client, if the office determines
1713	1713	that:
1714	1714	(A) a resident or client or the resident's or
1715	1715	client's family may be in need of assistance from the office; or
1716	1716	(B) a complaint raises the possibility of a
1717	1717	systemic issue in the state developmental center's provision of
1718	1718	services;
1719	1719	(6) conduct semiannual on-site audits, including
1720	1720	meetings with residents and employees of the state developmental
1721	1721	center, of each state developmental center's policies, practices,
1722	1722	and procedures to ensure that each resident and client is
1723	1723	encouraged to exercise the resident's or client's rights,
1724	1724	including:
1725	1725	(A) the right to file a complaint; and
1726	1726	(B) the right to due process;
1727	1727	(7) prepare and deliver an annual report regarding the
1728	1728	findings of each audit to the:
1729	1729	(A) executive commissioner;
1730	1730	(B) commissioner;
1731	1731	(C) Aging and Disability Services Council;
1732	1732	(D) governor;
1733	1733	(E) lieutenant governor;
1734	1734	(F) speaker of the house of representatives;
1735	1735	(G) standing committees of the senate and house
1736	1736	of representatives with primary jurisdiction over state
1737	1737	developmental centers; and
1738	1738	(H) state auditor;
1739	1739	(8) require a state developmental center to provide
1740	1740	access to all records, data, and other information under the
1741	1741	control of the center that the independent ombudsman determines is
1742	1742	necessary to investigate a complaint or to conduct an audit under
1743	1743	this section;
1744	1744	(9) review all final reports produced by the
1745	1745	Department of Family and Protective Services and the regulatory
1746	1746	services division of the department regarding a complaint referred
1747	1747	by the independent ombudsman;
1748	1748	(10) provide assistance to a resident, client,
1749	1749	authorized representative of a resident or client, or family member
1750	1750	of a resident or client who the independent ombudsman determines is
1751	1751	in need of assistance, including advocating with an agency,
1752	1752	provider, or other person in the best interests of the resident or
1753	1753	client; and
1754	1754	(11) make appropriate referrals under any of the
1755	1755	duties and powers listed in this subsection.
1756	1756	(b) The independent ombudsman may apprise a person who is
1757	1757	interested in a resident's or client's welfare of the rights of the
1758	1758	resident or client.
1759	1759	(c) To assess whether a resident's or client's rights have
1760	1760	been violated, the independent ombudsman may, in any matter that
1761	1761	does not involve an alleged criminal offense or the abuse, neglect,
1762	1762	or exploitation of a resident or client, contact or consult with an
1763	1763	administrator, employee, resident, client, family member of a
1764	1764	resident or client, expert, or other individual in the course of the
1765	1765	investigation or to secure information.
1766	1766	(d) Notwithstanding any other provision of this chapter,
1767	1767	the independent ombudsman may not investigate an alleged criminal
1768	1768	offense or the alleged abuse, neglect, or exploitation of a
1769	1769	resident or client.
1770	1770	Sec. 555.060. RETALIATION PROHIBITED. The department or a
1771	1771	state developmental center may not retaliate against a department
1772	1772	employee or employee of a state developmental center who in good
1773	1773	faith makes a complaint to the office of independent ombudsman or
1774	1774	cooperates with the office in an investigation.
1775	1775	Sec. 555.061. TOLL-FREE NUMBER. (a) The office shall
1776	1776	establish a permanent, toll-free number for the purpose of
1777	1777	receiving any information concerning the violation of a right of a
1778	1778	resident or client.
1779	1779	(b) The office shall ensure that:
1780	1780	(1) the toll-free number is prominently displayed in
1781	1781	the main administration area of a state developmental center and in
1782	1782	each home in which a resident lives or a client receives services;
1783	1783	and
1784	1784	(2) a resident, a client, the authorized
1785	1785	representative of a resident, and an employee of a state
1786	1786	developmental center have confidential access to a telephone for
1787	1787	the purpose of calling the toll-free number.
1788	1788	SECTION 19. Section 21.014(b), Human Resources Code, is
1789	1789	amended to read as follows:
1790	1790	(b) The [person employed by the department as] inspector
1791	1791	general appointed under Subchapter R, Chapter 531, Government Code,
1792	1792	shall make reports to and consult with the agency director
1793	1793	[chairman of the board] regarding:
1794	1794	(1) the selection of internal audit topics;
1795	1795	(2) the establishment of internal audit priorities;
1796	1796	and
1797	1797	(3) the findings of each regular or special internal
1798	1798	audit initiative.
1799	1799	SECTION 20. Section 32.003, Human Resources Code, is
1800	1800	amended by adding Subdivision (5) to read as follows:
1801	1801	(5) "Office of inspector general" means the office of
1802	1802	inspector general established under Subchapter R, Chapter 531,
1803	1803	Government Code.
1804	1804	SECTION 21. Section 32.0291, Human Resources Code, is
1805	1805	amended to read as follows:
1806	1806	Sec. 32.0291. PREPAYMENT REVIEWS AND POSTPAYMENT HOLDS.
1807	1807	(a) Notwithstanding any other law, the office of inspector
1808	1808	general or department may:
1809	1809	(1) perform a prepayment review of a claim for
1810	1810	reimbursement under the medical assistance program to determine
1811	1811	whether the claim involves fraud, waste, or abuse; and
1812	1812	(2) as necessary to perform that review, withhold
1813	1813	payment of the claim for not more than five working days without
1814	1814	notice to the person submitting the claim.
1815	1815	(b) Notwithstanding any other law, the office of inspector
1816	1816	general [department] may impose a postpayment hold on payment of
1817	1817	future claims submitted by a provider if the office [department]
1818	1818	has prima facie evidence that the provider has committed fraud,
1819	1819	waste, abuse, or wilful misrepresentation regarding a claim for
1820	1820	reimbursement or cost report under the medical assistance program.
1821	1821	The office [department] must notify the provider of the postpayment
1822	1822	hold not later than the fifth working day after the date the hold is
1823	1823	imposed.
1824	1824	(c) On timely written request by a provider subject to a
1825	1825	postpayment hold under Subsection (b), the office of inspector
1826	1826	general [department] shall file a request with the State Office of
1827	1827	Administrative Hearings for an expedited administrative hearing
1828	1828	regarding the hold. The provider must request an expedited hearing
1829	1829	under this subsection not later than the 10th day after the date the
1830	1830	provider receives notice from the office of inspector general
1831	1831	[department] under Subsection (b). The office of inspector general
1832	1832	[department] shall discontinue the hold unless the office
1833	1833	[department] makes a prima facie showing at the hearing that the
1834	1834	evidence relied on by the office of inspector general [department]
1835	1835	in imposing the hold is relevant, credible, and material to the
1836	1836	issue of fraud, waste, abuse, or wilful misrepresentation.
1837	1837	(d) The inspector general [department] shall adopt rules
1838	1838	that allow a provider subject to a postpayment hold under
1839	1839	Subsection (b) to seek an informal resolution of the issues
1840	1840	identified by the office of inspector general [department] in the
1841	1841	notice provided under that subsection. A provider must seek an
1842	1842	informal resolution under this subsection not later than the
1843	1843	deadline prescribed by Subsection (c). A provider's decision to
1844	1844	seek an informal resolution under this subsection does not extend
1845	1845	the time by which the provider must request an expedited
1846	1846	administrative hearing under Subsection (c). However, a hearing
1847	1847	initiated under Subsection (c) shall be stayed at the office's
1848	1848	[department's] request until the informal resolution process is
1849	1849	completed.
1850	1850	SECTION 22. Section 32.032, Human Resources Code, is
1851	1851	amended to read as follows:
1852	1852	Sec. 32.032. PREVENTION AND DETECTION OF FRAUD, WASTE, AND
1853	1853	ABUSE. The inspector general [department] shall adopt reasonable
1854	1854	rules for minimizing the opportunity for fraud, waste, and abuse,
1855	1855	for establishing and maintaining methods for detecting and
1856	1856	identifying situations in which a question of fraud, waste, or
1857	1857	abuse in the program may exist, and for referring cases where fraud,
1858	1858	waste, or abuse appears to exist to the appropriate law enforcement
1859	1859	agencies for prosecution.
1860	1860	SECTION 23. Sections 32.0321(a) through (d), Human
1861	1861	Resources Code, are amended to read as follows:
1862	1862	(a) The office of inspector general [department] by rule may
1863	1863	recommend to the department and the department by rule may require
1864	1864	that each provider of medical assistance in a provider type that has
1865	1865	demonstrated significant potential for fraud, waste, or abuse to
1866	1866	file with the department a surety bond in a reasonable amount. The
1867	1867	office and the department by rule shall each require a provider of
1868	1868	medical assistance to file with the department a surety bond in a
1869	1869	reasonable amount if the office [department] identifies a pattern
1870	1870	of suspected fraud, waste, or abuse involving criminal conduct
1871	1871	relating to the provider's services under the medical assistance
1872	1872	program that indicates the need for protection against potential
1873	1873	future acts of fraud, waste, or abuse.
1874	1874	(b) The bond under Subsection (a) must be payable to the
1875	1875	department to compensate the department for damages resulting from
1876	1876	or penalties or fines imposed in connection with an act of fraud,
1877	1877	waste, or abuse committed by the provider under the medical
1878	1878	assistance program.
1879	1879	(c) Subject to Subsection (d) or (e), the office of
1880	1880	inspector general and the department by rule may require each
1881	1881	provider of medical assistance that establishes a resident's trust
1882	1882	fund account to post a surety bond to secure the account. The bond
1883	1883	must be payable to the department to compensate residents of the
1884	1884	bonded provider for trust funds that are lost, stolen, or otherwise
1885	1885	unaccounted for if the provider does not repay any deficiency in a
1886	1886	resident's trust fund account to the person legally entitled to
1887	1887	receive the funds.
1888	1888	(d) The office of inspector general and the department may
1889	1889	not require the amount of a surety bond posted for a single facility
1890	1890	provider under Subsection (c) to exceed the average of the total
1891	1891	average monthly balance of all the provider's resident trust fund
1892	1892	accounts for the 12-month period preceding the bond issuance or
1893	1893	renewal date.
1894	1894	SECTION 24. Section 32.0322(a), Human Resources Code, is
1895	1895	amended to read as follows:
1896	1896	(a) The office of inspector general and the department may
1897	1897	obtain from any law enforcement or criminal justice agency the
1898	1898	criminal history record information that relates to a provider
1899	1899	under the medical assistance program or a person applying to enroll
1900	1900	as a provider under the medical assistance program.
1901	1901	SECTION 25. Section 32.070(d), Human Resources Code, is
1902	1902	amended to read as follows:
1903	1903	(d) This section does not apply to a computerized audit
1904	1904	conducted using the Medicaid Fraud Detection Audit System or an
1905	1905	audit or investigation of fraud, waste, and abuse conducted by the
1906	1906	Medicaid fraud control unit of the office of the attorney general,
1907	1907	the office of the state auditor, the office of [the] inspector
1908	1908	general, or the Office of Inspector General in the United States
1909	1909	Department of Health and Human Services.
1910	1910	SECTION 26. Section 33.015(e), Human Resources Code, is
1911	1911	amended to read as follows:
1912	1912	(e) The department shall require a person exempted under
1913	1913	this section from making a personal appearance at department
1914	1914	offices to provide verification of the person's entitlement to the
1915	1915	exemption on initial eligibility certification and on each
1916	1916	subsequent periodic eligibility recertification. If the person
1917	1917	does not provide verification and the department considers the
1918	1918	verification necessary to protect the integrity of the food stamp
1919	1919	program, the department shall initiate a fraud referral to the
1920	1920	[department's] office of inspector general established under
1921	1921	Subchapter R, Chapter 531, Government Code.
1922	1922	SECTION 10. Section 48.252, Human Resources Code, is
1923	1923	amended by adding Subsection (d) to read as follows:
1924	1924	(d) If an investigation under this section reveals evidence
1925	1925	of the abuse, neglect, or exploitation of a resident or client of a
1926	1926	state developmental center as defined by Section 531.002, Health
1927	1927	and Safety Code, and a caseworker of the department or a supervisor
1928	1928	of a caseworker believes that the abuse, neglect, or exploitation
1929	1929	is a criminal offense, the caseworker or supervisor shall
1930	1930	immediately notify the Health and Human Services Commission's
1931	1931	office of inspector general and promptly provide the Health and
1932	1932	Human Services Commission's office of inspector general with a copy
1933	1933	of the department's investigation report.
1934	1934	SECTION 11. Section 161.052, Human Resources Code, is
1935	1935	amended by amending Subsection (b) and adding Subsection (e) to
1936	1936	read as follows:
1937	1937	(b) The executive commissioner shall prepare and by rule
1938	1938	adopt personnel standards. The executive commissioner shall adopt
1939	1939	personnel standards for direct care employees at state
1940	1940	developmental centers that are designed to ensure the safety of and
1941	1941	a high standard of care for residents of a state developmental
1942	1942	center.
1943	1943	(e) Subject to the availability of funds, the department
1944	1944	shall prescribe the number of direct care employees at state
1945	1945	developmental centers and the salaries for those employees
1946	1946	necessary to attract and maintain quality employees. The
1947	1947	commissioner shall ensure that policies regarding employees at
1948	1948	state developmental centers are designed to reduce turnover and
1949	1949	ensure continuity of care for residents.
1950	1950	SECTION 12. (a) As soon as possible after the effective
1951	1951	date of this Act, and subject to the availability of funds, the
1952	1952	Department of Aging and Disability Services shall hire additional
1953	1953	direct care employees at state developmental centers and increase
1954	1954	the salaries for all direct care employees as necessary to attract
1955	1955	and maintain quality employees.
1956	1956	(b) Not later than December 1, 2009, the Health and Human
1957	1957	Services Commission's office of inspector general shall begin
1958	1958	employing peace officers as required by Section 531.1022,
1959	1959	Government Code, as added by this Act.
1960	1960	(c) Not later than September 1, 2014, the Department of
1961	1961	Aging and Disability Services shall designate a state developmental
1962	1962	center for high-risk residents as required by Section 555.002,
1963	1963	Health and Safety Code, as added by this Act.
1964	1964	(d) Not later than January 1, 2010, the Department of Aging
1965	1965	and Disability Services shall develop the training required by
1966	1966	Section 555.024, Health and Safety Code, as added by this Act.
1967	1967	(e) The Department of Aging and Disability Services shall
1968	1968	ensure that all developmental center employees and direct care
1969	1969	employees receive the training required by Section 555.024, Health
1970	1970	and Safety Code, as added by this Act, regardless of when the
1971	1971	employee was hired, not later than September 1, 2010.
1972	1972	(g) Not later than December 1, 2009, the governor shall
1973	1973	appoint the independent ombudsman as required by Section 555.053,
1974	1974	Health and Safety Code, as added by this Act.
1975	1975	SECTION 14. (a) The change in law made by Section
1976	1976	551.022(e), Health and Safety Code, as added by this Act, and the
1977	1977	change in law made by Section 551.0225, Health and Safety Code, as
1978	1978	added by this Act, apply to the dismissal of an employee of a state
1979	1979	developmental center hired on or after the effective date of this
1980	1980	Act.
1981	1981	(b) The dismissal of an employee of a state developmental
1982	1982	center hired before the effective date of this Act is governed by
1983	1983	the law in effect when the employee was hired, and the former law is
1984	1984	continued in effect for that purpose.
1985	1985	SECTION 15. This Act takes effect immediately if it
1986	1986	receives a vote of two-thirds of all the members elected to each
1987	1987	house, as provided by Section 39, Article III, Texas Constitution.
1988	1988	If this Act does not receive the vote necessary for immediate
1989	1989	effect, this Act takes effect September 1, 2009.
1990	1990	SECTION 30. (a) The repeal by this Act of Section 531.102,
1991	1991	Government Code, does not affect the validity of a complaint,
1992	1992	investigation, or other proceeding initiated under that section
1993	1993	before the effective date of this Act. A complaint, investigation,
1994	1994	or other proceeding initiated under that section is continued in
1995	1995	accordance with the changes in law made by this Act.
1996	1996	(b) The repeal by this Act of Section 531.1021, Government
1997	1997	Code, does not affect the validity of a subpoena issued under that
1998	1998	section before the effective date of this Act. A subpoena issued
1999	1999	under that section before the effective date of this Act is governed
2000	2000	by the law that existed when the subpoena was issued, and the former
2001	2001	law is continued in effect for that purpose.
2002	2002	SECTION 3031. (a) The person serving as inspector general
2003	2003	under Section 531.102(a-1), Government Code, on the effective date
2004	2004	of this Act shall serve as the inspector general appointed under
2005	2005	Subchapter R, Chapter 531, Government Code, as added by this Act,
2006	2006	until February 1, 2011, and may be reappointed under Subchapter R,
2007	2007	Chapter 531, if the person has the qualifications required under
2008	2008	that subchapter.
2009	2009	(b) Not later than February 1, 2011, the governor shall
2010	2010	appoint an inspector general for the Office of Inspector General
2011	2011	under Subchapter R, Chapter 531, Government Code, as added by this
2012	2012	Act, to a term expiring February 1, 2013.
2013	2013	SECTION 32. On the effective date of this Act:
2014	2014	(1) all functions, activities, employees, rules,
2015	2015	forms, money, property, contracts, memorandums of understanding,
2016	2016	records, and obligations of the office of inspector general under
2017	2017	Section 531.102(a-1), Government Code, become functions,
2018	2018	activities, employees, rules, forms, money, property, contracts,
2019	2019	memorandums of understanding, records, and obligations of the
2020	2020	Office of Inspector General established under Subchapter R, Chapter
2021	2021	531, Government Code, as added by this Act, without a change in
2022	2022	status; and
2023	2023	(2) all money appropriated or budgeted for the office
2024	2024	of inspector general under Section 531.102(a-1), Government Code,
2025	2025	including money for providing administrative support, is
2026	2026	considered appropriated for the use of the Office of Inspector
2027	2027	General established under Subchapter R, Chapter 531, Government
2028	2028	Code, as added by this Act.
2029	2029	SECTION 33. If before implementing any provision of this
2030	2030	Act a state office or agency determines that a waiver or
2031	2031	authorization from a federal agency is necessary for implementation
2032	2032	of that provision, the office or agency affected by the provision
2033	2033	shall request the waiver or authorization and may delay
2034	2034	implementing that provision until the waiver or authorization is
2035	2035	granted.
2036	2036	SECTION 34. This Act takes effect immediately if it
2037	2037	receives a vote of two-thirds of all the members elected to each
2038	2038	house, as provided by Section 39, Article III, Texas Constitution.
2039	2039	If this Act does not receive the vote necessary for immediate
2040	2040	effect, this Act takes effect September 1, 2009.