| 11 | | - | SECTION 1. Section 36.112, Human Resources Code, is amended |
|---|
| 12 | | - | to read as follows: |
|---|
| 13 | | - | Sec. 36.112. AWARD TO DEFENDANT FOR FRIVOLOUS ACTION. (a) |
|---|
| 14 | | - | Chapter 105, Civil Practice and Remedies Code, applies in an action |
|---|
| 15 | | - | under this subchapter with which the state proceeds. |
|---|
| 16 | | - | (b) If the state does not proceed with an action under this |
|---|
| 17 | | - | subchapter and the person who brought the action proceeds with the |
|---|
| 18 | | - | action, the court may award the defendant reasonable attorney's |
|---|
| 19 | | - | fees and expenses to the same extent the defendant would be entitled |
|---|
| 20 | | - | to recover those fees and expenses under Section 105.002, Civil |
|---|
| 21 | | - | Practice and Remedies Code, if the state had proceeded with the |
|---|
| 22 | | - | action, provided that: |
|---|
| 23 | | - | (1) the court finds that the action is frivolous; and |
|---|
| 24 | | - | (2) the person who brought the action was not the |
|---|
| 25 | | - | original source of the information on which the action is based. |
|---|
| 26 | | - | SECTION 2. The changes in law made by this Act apply only to |
|---|
| 9 | + | SECTION 1. Subchapter A, Chapter 36, Human Resources Code, |
|---|
| 10 | + | is amended by adding Section 36.0025 to read as follows: |
|---|
| 11 | + | Sec. 36.0025. MATERIALITY REQUIREMENT FOR UNLAWFUL ACTS. |
|---|
| 12 | + | To be actionable under this chapter, an unlawful act under Section |
|---|
| 13 | + | 36.002 must be material to the state's decision regarding payment |
|---|
| 14 | + | under the Medicaid program. |
|---|
| 15 | + | SECTION 2. Section 36.052, Human Resources Code, is amended |
|---|
| 16 | + | by amending Subsection (a) and adding Subsection (f) to read as |
|---|
| 17 | + | follows: |
|---|
| 18 | + | (a) Except as provided by Subsection (c), a person who |
|---|
| 19 | + | commits an unlawful act is liable to the state for: |
|---|
| 20 | + | (1) the damages resulting from [amount of] any payment |
|---|
| 21 | + | or [the value of any] monetary or in-kind benefit provided under the |
|---|
| 22 | + | Medicaid program, directly or indirectly, as a result of the |
|---|
| 23 | + | unlawful act, including any payment made to a third party; |
|---|
| 24 | + | (2) interest on the amount of the payment or the value |
|---|
| 25 | + | of the benefit described by Subdivision (1) at the prejudgment |
|---|
| 26 | + | interest rate in effect on the day the payment or benefit was |
|---|
| 27 | + | received or paid, for the period from the date the benefit was |
|---|
| 28 | + | received or paid to the date that the state recovers damages [the |
|---|
| 29 | + | amount of the payment or value of the benefit]; |
|---|
| 30 | + | (3) a civil penalty of: |
|---|
| 31 | + | (A) not less than $5,500 or the minimum amount |
|---|
| 32 | + | imposed as provided by 31 U.S.C. Section 3729(a), if that amount |
|---|
| 33 | + | exceeds $5,500, and not more than $15,000 or the maximum amount |
|---|
| 34 | + | imposed as provided by 31 U.S.C. Section 3729(a), if that amount |
|---|
| 35 | + | exceeds $15,000, for each unlawful act committed by the person that |
|---|
| 36 | + | results in injury to an elderly person, as defined by Section |
|---|
| 37 | + | 48.002(a)(1), a person with a disability, as defined by Section |
|---|
| 38 | + | 48.002(a)(8)(A), or a person younger than 18 years of age; or |
|---|
| 39 | + | (B) not less than $5,500 or the minimum amount |
|---|
| 40 | + | imposed as provided by 31 U.S.C. Section 3729(a), if that amount |
|---|
| 41 | + | exceeds $5,500, and not more than $11,000 or the maximum amount |
|---|
| 42 | + | imposed as provided by 31 U.S.C. Section 3729(a), if that amount |
|---|
| 43 | + | exceeds $11,000, for each unlawful act committed by the person that |
|---|
| 44 | + | does not result in injury to a person described by Paragraph (A); |
|---|
| 45 | + | and |
|---|
| 46 | + | (4) two times the amount of the damages [payment or the |
|---|
| 47 | + | value of the benefit] described by Subdivision (1). |
|---|
| 48 | + | (f) Chapter 33, Civil Practice and Remedies Code, applies to |
|---|
| 49 | + | an action brought under this section. |
|---|
| 50 | + | SECTION 3. Subchapter B, Chapter 36, Human Resources Code, |
|---|
| 51 | + | is amended by adding Section 36.056 to read as follows: |
|---|
| 52 | + | Sec. 36.056. LIMITATIONS PERIOD. The attorney general may |
|---|
| 53 | + | not bring an action under this subchapter after the later of: |
|---|
| 54 | + | (1) the sixth anniversary of the date the unlawful act |
|---|
| 55 | + | was committed; or |
|---|
| 56 | + | (2) the third anniversary of the date when facts |
|---|
| 57 | + | material to the right of action are known or reasonably should have |
|---|
| 58 | + | been known by the person charged with responsibility to act in the |
|---|
| 59 | + | circumstances, except in no event may the action be brought later |
|---|
| 60 | + | than the 10th anniversary of the date the unlawful act was |
|---|
| 61 | + | committed. |
|---|
| 62 | + | SECTION 4. The changes in law made by this Act apply only to |
|---|