LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION Revision 1 May 7, 2015 TO: Honorable Richard Peña Raymond, Chair, House Committee on Human Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB207 by Hinojosa (Relating to the authority and duties of the office of inspector general of the Health and Human Services Commission.), As Engrossed No significant fiscal implication to the State is anticipated. The bill would partially implement the Sunset Advisory Commission (SAC) recommendations concerning the Office of the Inspector General (OIG) within the Health and Human Services Commission (HHSC). The bill would require the OIG to undergo special review by SAC in six years. The bill would require the OIG to establish priorities to guide its investigation processes, changes the timelines for different phases of the investigation process, defines OIG's role in managed care oversight, and requires the OIG to conduct quality assurance reviews and requires a peer review of sampling methodology used in its investigative process. Additionally, the bill streamlines the credible allegation of fraud (CAF) hold hearing process, clarifies good cause exceptions for OIG's application of a CAF hold, requires the OIG to pay all costs for CAF hold hearings at State Office of Administrative Hearings (SOAH), and changes pharmacies' rights when under an OIG audit. While implementing the provisions of the bill may have some cost, it is assumed that the provisions of the bill can be implemented within existing resources at the OIG and at SOAH. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:116 Sunset Advisory Commission, 529 Health and Human Services Commission, 360 State Office of Administrative Hearings, 515 Board of Pharmacy LBB Staff: UP, FR, MB, CH, NB, WP, TWh, ER LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION Revision 1 May 7, 2015 Revision 1 Revision 1 TO: Honorable Richard Peña Raymond, Chair, House Committee on Human Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB207 by Hinojosa (Relating to the authority and duties of the office of inspector general of the Health and Human Services Commission.), As Engrossed TO: Honorable Richard Peña Raymond, Chair, House Committee on Human Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE: SB207 by Hinojosa (Relating to the authority and duties of the office of inspector general of the Health and Human Services Commission.), As Engrossed Honorable Richard Peña Raymond, Chair, House Committee on Human Services Honorable Richard Peña Raymond, Chair, House Committee on Human Services Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board SB207 by Hinojosa (Relating to the authority and duties of the office of inspector general of the Health and Human Services Commission.), As Engrossed SB207 by Hinojosa (Relating to the authority and duties of the office of inspector general of the Health and Human Services Commission.), As Engrossed No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would partially implement the Sunset Advisory Commission (SAC) recommendations concerning the Office of the Inspector General (OIG) within the Health and Human Services Commission (HHSC). The bill would require the OIG to undergo special review by SAC in six years. The bill would require the OIG to establish priorities to guide its investigation processes, changes the timelines for different phases of the investigation process, defines OIG's role in managed care oversight, and requires the OIG to conduct quality assurance reviews and requires a peer review of sampling methodology used in its investigative process. Additionally, the bill streamlines the credible allegation of fraud (CAF) hold hearing process, clarifies good cause exceptions for OIG's application of a CAF hold, requires the OIG to pay all costs for CAF hold hearings at State Office of Administrative Hearings (SOAH), and changes pharmacies' rights when under an OIG audit. While implementing the provisions of the bill may have some cost, it is assumed that the provisions of the bill can be implemented within existing resources at the OIG and at SOAH. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 116 Sunset Advisory Commission, 529 Health and Human Services Commission, 360 State Office of Administrative Hearings, 515 Board of Pharmacy 116 Sunset Advisory Commission, 529 Health and Human Services Commission, 360 State Office of Administrative Hearings, 515 Board of Pharmacy LBB Staff: UP, FR, MB, CH, NB, WP, TWh, ER UP, FR, MB, CH, NB, WP, TWh, ER