Relating to access to criminal history record information that relates to providers and provider applicants under Medicaid and other public benefits programs administered by the Health and Human Services Commission.

89(R) SB 1640 - Senate Committee Report version - Bill Text

By: Hagenbuch

S.B. No. 1640

(In the Senate - Filed February 25, 2025; March 11, 2025,

read first time and referred to Committee on Health & Human

Services; April 22, 2025, reported adversely, with favorable

Committee Substitute by the following vote: Yeas 9, Nays 0;

April 22, 2025, sent to printer.)
Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR S.B. No. 1640

By: Perry

A BILL TO BE ENTITLED

AN ACT

relating to access to criminal history record information that

relates to providers and provider applicants under Medicaid and

other public benefits programs administered by the Health and Human

Services Commission.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading to Section 411.1143, Government

Code, is amended to read as follows:

Sec. 411.1143. ACCESS TO CRIMINAL HISTORY RECORD

INFORMATION; AGENCIES
ADMINISTERING OR
OPERATING [
PART OF
] MEDICAL

ASSISTANCE
AND OTHER PUBLIC BENEFITS PROGRAMS
[
PROGRAM
].

SECTION 2. Section 411.1143, Government Code, is amended by

amending Subsections (a) and (a-1) and adding Subsection (e) to

read as follows:

(a) The Health and Human Services Commission, an agency

operating part of
a public benefits program, including
the medical

assistance program under Chapter 32, Human Resources Code, or the

office of inspector general established under Subchapter C, Chapter

544,
of this code
[
Government Code
], is entitled to obtain criminal

history record information as provided by Subsection (a-2) that

relates to a provider under
a public benefits
[
the medical

assistance
] program
administered by the commission
or a person

applying to enroll as a provider under
a public benefits
[
the

medical assistance
] program
administered by the commission
.

(a-1) Criminal history record information the Health and

Human Services Commission or the office of inspector general is

authorized to obtain under Subsection (a) includes criminal history

record information relating to:

(1)
a person that:

(A)

has a direct or indirect ownership interest,

or a combination of direct and indirect ownership interests, that

equals five percent or more in the provider or person applying to

enroll as a provider;

(B)

owns an interest of five percent or more in a

mortgage, deed of trust, promissory note, or other obligation

secured by the provider or person applying to enroll as a provider

if that interest equals at least five percent of the value of the

property or other assets of the provider or person applying to

enroll as a provider;

(C)

is an officer or director of the provider or

person applying to enroll as a provider if that provider or

applicant is organized as a corporation; or

(D)

is a partner in the provider or person

applying to enroll as a provider if that provider or applicant is

organized as a partnership
[
a person with a direct or indirect

ownership or control interest, as defined by 42 C.F.R. Section

455.101, in a provider of five percent or more
]; and

(2)
a managing employee of the provider or person

applying to enroll as a provider
[
a person whose information is

required to be disclosed in accordance with 42 C.F.R. Part 1001
].

(e) In this section:

(1)

"Managing employee," with respect to a provider or

person applying to enroll as a provider, means an individual,

including a general manager, business manager, administrator, or

director, who:

(A)

exercises operational or managerial control

over all or part of the provider or applicant; or

(B)

directly or indirectly conducts the daily

operations of all or part of the provider or applicant.

(2)

"Ownership interest," with respect to a provider

or person applying to enroll as a provider, means having equity in

the provider's or applicant's capital, stock, or profits.

(3)

"Provider" means an individual or entity that

engages in the delivery of health care services and is authorized to

deliver those services in this state, including an individual or

entity that delivers health care services to recipients under the

medical assistance program.

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.

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