Bill Text: TX HB3784 | 2013-2014 | 83rd Legislature | Introduced


Bill Title: Relating to the creation of a state court to hear cases involving insurance and Medicaid fraud.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2013-03-21 - Referred to Judiciary & Civil Jurisprudence [HB3784 Detail]

Download: Texas-2013-HB3784-Introduced.html
  83R2608 KFF-D
 
  By: Perry H.B. No. 3784
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of a state court to hear cases involving
  insurance and Medicaid fraud.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle A, Title 2, Government Code, is amended
  by adding Chapter 23A to read as follows:
  CHAPTER 23A. STATE COURT ON INSURANCE AND MEDICAID FRAUD
         Sec. 23A.001.  DEFINITION. In this chapter, "state court"
  means the state court established under this chapter to hear
  certain cases involving insurance and Medicaid fraud.
         Sec. 23A.002.  APPLICABILITY OF OTHER LAW. Except to the
  extent of a conflict with this chapter, a law, other than Chapter 24
  and Subchapter D, Chapter 51, that applies to:
               (1)  a district court of Travis County, including a law
  relating to how a case is appealed from the district court, applies
  to the state court; and
               (2)  a district judge, including any law providing for
  the qualifications, compensation, or retirement benefits of
  district court judges, applies to a state court judge.
         Sec. 23A.003.  APPOINTMENTS TO STATE COURT BY GOVERNOR;
  TERMS; VACANCIES.  (a)  The governor shall appoint with the advice
  and consent of the senate eight judges and one presiding judge to
  the state court.
         (b)  The judges serve staggered terms of two years, with four
  judges' terms expiring January 1 of each odd-numbered year and five
  judges' terms, including that of the presiding judge, expiring
  January 1 of each even-numbered year.
         (c)  The governor shall fill any vacancy on the court for the
  remainder of the unexpired term.
         Sec. 23A.004.  DISQUALIFICATION.  The fact that at least two
  members of the state court are disqualified to determine a case in
  the court shall be certified to the governor.  The governor
  immediately shall commission the requisite number of persons who
  are learned in the law to try and determine the case.
         Sec. 23A.005.  LOCATION; TERMS OF COURT.  The state court may
  sit at any time during the year at the seat of government or, at the
  court's discretion, at any other location in this state for the
  transaction of business, and each term of either court shall begin
  and end with each calendar year.
         Sec. 23A.006.  ADJOURNMENT. (a) A state court may adjourn
  from day to day or for the periods that the court considers proper.
         (b)  If a quorum of a state court is not present on any day of
  the term, a judge of the court or the bailiff attending the court
  may adjourn the court from time to time until a quorum is present,
  but the court may not be finally adjourned for the term.
         Sec. 23A.007.  CIVIL JURISDICTION. The state court has
  concurrent jurisdiction with the district courts in all actions,
  proceedings, and remedies involving an allegation of:
               (1)  Medicaid fraud under Chapter 36, Human Resources
  Code; or
               (2)  the commission of an unfair method of competition
  or an unfair or deceptive act or practice in the business of
  insurance under Chapter 541, Insurance Code, or Section 17.46,
  Business & Commerce Code.
         Sec. 23A.008.  WRIT POWER. A judge of the state court may,
  either in termtime or vacation, grant writs of mandamus,
  injunction, sequestration, attachment, garnishment, certiorari,
  and supersedeas and all other writs necessary to the enforcement of
  the court's jurisdiction.
         Sec. 23A.009.  COURT SITTING IN PANELS. (a)  Each state
  court may sit in panels of not fewer than three judges for the
  purpose of hearing cases.
         (b)  If more than one panel is used, the state court shall
  establish rules to periodically rotate the judges among the panels.
  Permanent civil panels without rotation may not be established.
         (c)  A majority of a panel constitutes a quorum for the
  transaction of business, and the concurrence of a majority of a
  panel is necessary for a decision.
         Sec. 23A.010.  COURT SITTING EN BANC. (a) The presiding
  judge of the state court, under rules established by the court,
  shall convene the court en banc for the transaction of all business
  other than the hearing of cases and may convene the court en banc
  for the purpose of hearing cases.
         (b)  When convened en banc, a majority of the membership of
  the state court constitutes a quorum, and the concurrence of a
  majority of the court sitting en banc is necessary for a decision.
         Sec. 23A.011.  SEAL. The clerk of the state court shall
  obtain a seal for the court. The seal shall have a star with five
  points and the words "The State Court of Texas on Insurance and
  Medicaid Fraud" engraved on it.
         Sec. 23A.012.  APPEALS. An appeal from the state court is in
  the same manner as an appeal from a district court of Travis County.
         Sec. 23A.013.  FUNDING; USE OF MONEY.  (a)  Existing
  appropriations to the attorney general available for the purpose
  shall be used to establish the state court.
         (b)  The legislature shall use money the state saves or
  recovers as a result of a proceeding in the state court established
  under this chapter to fund the court.
         SECTION 2.  Chapter 51, Government Code, is amended by
  adding Subchapter B-1 to read as follows:
  SUBCHAPTER B-1.  CLERK OF STATE COURT
         Sec. 51.151.  DEFINITION. In this subchapter, "state court"
  means the state court established under Chapter 23A.
         Sec. 51.152.  APPOINTMENT OF CLERK. The state court shall
  appoint a clerk of the court who:
               (1)  shall give bond in the manner provided by this
  subchapter; and
               (2)  may hold office for four years subject to removal
  by the appointing court for good cause, entered in the minutes of
  the court.
         Sec. 51.153.  OATH; BOND. The clerk of the state court must
  sign the oath prescribed for officers of this state and must give a
  bond in the amount of $5,000. The bond must be approved by the state
  court and is subject to the same conditions as the bond required of
  a district clerk.
         Sec. 51.154.  DEPUTY CLERK. (a) The state court, or the
  clerk of the state court with the court's approval, may appoint a
  stenographer employed by the court to act as a deputy clerk to
  perform the clerk's duties during the absence, illness, or other
  disability of the clerk.
         (b)  The stenographer appointed deputy clerk shall perform
  the duties of the clerk in the name of the clerk and shall sign the
  deputy clerk's own name as deputy clerk after signing the clerk's
  name.
         Sec. 51.155.  REMOVAL OF CLERK. The state court may remove
  the clerk for good cause, entered in the minutes of the court.
         Sec. 51.156.  DUTIES AND LIABILITIES. (a) The clerk of the
  state court shall perform the duties for the state court that a
  district clerk performs for a district court.
         (b)  The clerk of the state court is subject to the
  liabilities prescribed for a district clerk.
         SECTION 3.  Effective January 1, 2014, Section 36.008, Human
  Resources Code, is amended to read as follows:
         Sec. 36.008.  USE OF MONEY RECOVERED. The legislature, in
  appropriating money recovered under this chapter, shall:
               (1)  use a percentage of the funds recovered to fund the
  state court established under Chapter 23A, Government Code; and
               (2)  consider the requirements of the attorney general
  and other affected state agencies in investigating Medicaid fraud
  and enforcing this chapter.
         SECTION 4.  Effective January 1, 2014, Section 36.051(b),
  Human Resources Code, is amended to read as follows:
         (b)  An action under this section shall be brought in the
  state court established under Chapter 23A, Government Code, or in
  the [a] district court of [Travis County or of] a county in which
  any part of the unlawful act occurred, is occurring, or is about to
  occur.
         SECTION 5.  Effective January 1, 2014, Section 36.052(d),
  Human Resources Code, is amended to read as follows:
         (d)  An action under this section shall be brought in the
  state court established under Chapter 23A, Government Code, or
  [Travis County or] in a county in which any part of the unlawful act
  occurred.
         SECTION 6.  Effective January 1, 2014, Section 36.053(e),
  Human Resources Code, is amended to read as follows:
         (e)  If a person fails to file a statement as required by
  Subsection (b)(1) or fails to submit to an examination as required
  by Subsection (b)(2), the attorney general may file in the state
  court established under Chapter 23A, Government Code, [a district
  court of Travis County] a petition for an order to compel the person
  to file the statement or submit to the examination within a period
  stated by court order.  Failure to comply with an order entered
  under this subsection is punishable as contempt.
         SECTION 7.  Effective January 1, 2014, Sections 36.054(f)
  and (j), Human Resources Code, are amended to read as follows:
         (f)  A person may file a petition, stating good cause, to
  extend the return date for the demand or to modify or set aside the
  demand. A petition under this section shall be filed in the state
  court established under Chapter 23A, Government Code, [a district
  court of Travis County] and must be filed before the earlier of:
               (1)  the return date specified in the demand; or
               (2)  the 20th day after the date the demand is served.
         (j)  If a person fails to comply with an investigative
  demand, or if copying and reproduction of the documentary material
  demanded cannot be satisfactorily accomplished and the person
  refuses to surrender the documentary material, the attorney general
  may file in the state court established under Chapter 23A,
  Government Code, [a district court of Travis County] a petition for
  an order to enforce the investigative demand.
         SECTION 8.  Effective January 1, 2014, Section 541.004,
  Insurance Code, is amended to read as follows:
         Sec. 541.004.  VENUE FOR ACTIONS INVOLVING DEPARTMENT OR
  COMMISSIONER. An action under this chapter in which the department
  or commissioner is a party must be brought in the state court
  established under Chapter 23A, Government Code [a district court in
  Travis County].
         SECTION 9.  Effective January 1, 2014, Section 541.106(a),
  Insurance Code, is amended to read as follows:
         (a)  If a person refuses to comply with a subpoena issued in
  connection with a hearing under this subchapter or refuses to
  testify with respect to a matter about which the person may be
  lawfully interrogated, on application of the department, the state
  court established under Chapter 23A, Government Code, or a
  district court in [Travis County or in] the county in which the
  person resides may order the person to comply with the subpoena or
  testify.
         SECTION 10.  Effective January 1, 2014, Section 541.202,
  Insurance Code, is amended to read as follows:
         Sec. 541.202.  VENUE FOR INJUNCTIVE ACTION. An action for an
  injunction under this subchapter may be commenced in:
               (1)  the state court established under Chapter 23A,
  Government Code; or
               (2)  a district court in:
                     (A) [(1)]  the county in which the person against
  whom the action is brought:
                           (i) [(A)]  resides;
                           (ii) [(B)]  has the person's principal place
  of business; or
                           (iii) [(C)]  is engaging in business; or
                     (B) [(2)]  the county in which the transaction or
  a substantial portion of the transaction occurred[; or
               [(3)  Travis County].
         SECTION 11.  Effective January 1, 2014, Section 541.303(b),
  Insurance Code, is amended to read as follows:
         (b)  Venue for the action is in the state court established
  under Chapter 23A, Government Code [a district court in Travis
  County].
         SECTION 12.  Effective January 1, 2014, Section 541.405(a),
  Insurance Code, is amended to read as follows:
         (a)  A person aggrieved by the denial of a petition under
  Section 541.402 or the adoption, amendment, or repeal of or failure
  to adopt a rule under this subchapter may file a petition in the
  state court established under Chapter 23A, Government Code, [a
  district court in Travis County] for:
               (1)  a declaratory judgment on the validity or
  applicability of an adopted, amended, or repealed rule; or
               (2)  review of the denial of a petition under Section
  541.402.
         SECTION 13.  Not later than December 1, 2013, the Texas
  Supreme Court shall adopt rules the court determines necessary to
  establish the state court on insurance and Medicaid fraud
  established under Chapter 23A, Government Code, as added by this
  Act.
         SECTION 14.  Not later than January 1, 2014, the governor
  shall appoint the judges and presiding judge of the state court on
  insurance and Medicaid fraud established under Chapter 23A,
  Government Code, as added by this Act.  To enable the staggering of
  terms as required by Section 23A.003(b), Government Code, the
  governor shall appoint four judges whose terms expire on January 1
  of the next odd-numbered year and five judges, including the
  presiding judge, whose terms expire on January 1 of the next
  even-numbered year.
         SECTION 15.  The changes in law made by this Act apply only
  to a case filed on or after January 1, 2014. A case filed before
  January 1, 2014, is governed by the law in effect on the date the
  case was filed, and the former law is continued in effect for that
  purpose.
         SECTION 16.  Except as otherwise provided by this Act, this
  Act takes effect September 1, 2013.
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