SB 2579

89R10265 SCF-F
		By: Hancock
  S.B. No. 2579
  A BILL TO BE ENTITLED
  AN ACT
  relating to health care and insurance fraud; creating a criminal
  offense; authorizing a civil penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 544.0103(e), Government Code, as
  effective April 1, 2025, is amended to read as follows:
         (e)  The office of inspector general may:
               (1)  assess administrative penalties otherwise
  authorized by law on behalf of the commission or a health and human
  services agency;
               (2)  request that the attorney general obtain an
  injunction to prevent a person from disposing of an asset the office
  of inspector general identifies as potentially subject to recovery
  by the office of inspector general due to the person's fraud or
  abuse;
               (3)  provide for coordination between the office of
  inspector general and special investigative units formed by managed
  care organizations under Subchapter H or entities with which
  managed care organizations contract under that subchapter;
               (3-a) provide for coordination between the office of
  inspector general and the Texas Department of Insurance, as
  provided by Section 701.110, Insurance Code, to coordinate health
  care fraud detection and prevention in the state;
               (4)  audit the use and effectiveness of state or
  federal funds, including contract and grant funds, administered by
  a person or state agency receiving the funds from a health and human
  services agency;
               (5)  conduct investigations relating to the funds
  described by Subdivision (4); and
               (6)  recommend policies to:
                     (A)  promote the economical and efficient
  administration of the funds described by Subdivision (4); and
                     (B)  prevent and detect fraud and abuse in the
  administration of those funds.
         SECTION 2.  The heading to Subchapter B, Chapter 701,
  Insurance Code, is amended to read as follows:
  SUBCHAPTER B.  REPORTING FRAUDULENT INSURANCE ACTS; CIVIL REMEDIES
         SECTION 3.  Subchapter B, Chapter 701, Insurance Code, is
  amended by adding Section 701.053 to read as follows:
         Sec. 701.053.  CIVIL REMEDIES.  (a)  Except as provided by
  Subsection (c), a person who violates Section 35A.02(a-1), Penal
  Code, is liable to the state for:
               (1)  the amount of a payment made by or the value of a
  benefit provided by a health benefit plan issuer, directly or
  indirectly, as a result of the violation, including any payment
  made to a third party;
               (2)  interest on the amount of the payment or the value
  of the benefit described by Subdivision (1) at the prejudgment
  interest rate in effect on the day the payment or benefit was
  received or paid, for the period from the date the benefit was
  received or paid to the date that the state recovers the amount of
  the payment or value of the benefit;
               (3)  a civil penalty of:
                     (A)  not less than $5,500 and not more than
  $15,000 for each violation committed by the person that results in
  injury to an elderly person, as defined by Section 48.002(a)(1),
  Human Resources Code, a person with a disability, as defined by
  Section 48.002(a)(8)(A), Human Resources Code, or a person younger
  than 18 years of age; or
                     (B)  not less than $5,500 and not more than
  $11,000 for each violation committed by the person that does not
  result in injury to a person described by Paragraph (A); and
               (4)  two times the amount of the payment or the value of
  the benefit described by Subdivision (1).
         (b)  In determining the amount of the civil penalty described
  by Subsection (a)(3), the trier of fact shall consider:
               (1)  whether the person has previously violated Section
  35A.02(a-1), Penal Code;
               (2)  the seriousness of the violation committed by the
  person, including the nature, circumstances, extent, and gravity of
  the violation;
               (3)  whether the health and safety of the public or an
  individual was threatened by the violation;
               (4)  whether the person acted in bad faith when the
  person engaged in the conduct that formed the basis of the
  violation; and
               (5)  the amount necessary to deter future violations.
         (c)  The trier of fact may assess a total of not more than two
  times the amount of a payment or the value of a benefit described by
  Subsection (a)(1) if the trier of fact finds that:
               (1)  the person reported to the insurance fraud unit of
  the department all information known to the person about the
  violation not later than the 30th day after the date on which the
  person first obtained the information; and
               (2)  at the time the person furnished all the
  information to the insurance fraud unit of the department, the
  insurance fraud unit of the department had not yet begun an
  investigation under this chapter.
         SECTION 4.  Section 701.102, Insurance Code, is amended to
  read as follows:
         Sec. 701.102.  INVESTIGATION OF CERTAIN ACTS OF FRAUD.  (a) 
  If the commissioner has reason to believe a person has engaged in,
  is engaging in, has committed, or is about to commit a fraudulent
  insurance act, the commissioner may conduct any investigation
  necessary inside or outside this state to:
               (1)  determine whether the act occurred; or
               (2)  aid in enforcing laws relating to fraudulent
  insurance acts, including by providing technical or litigation
  assistance to other governmental agencies.
         (b)  In exercising the commissioner's authority under
  Subsection (a), the commissioner shall prioritize investigating
  alleged violations of Section 35A.02(a-1), Penal Code. 
         (c)  Except as provided by Section 701.214, the department
  may retain up to 50 percent of any money recovered as a result of an
  investigation conducted under Subsection (b).  The department shall
  remit the remaining amount of money to the person or persons harmed
  by the offense.
         SECTION 5.  Subchapter C, Chapter 701, Insurance Code, is
  amended by adding Section 701.110 to read as follows:
         Sec. 701.110.  FRAUD PREVENTION PARTNERSHIP.  (a)  The
  department shall, in coordination with the Health and Human
  Services Commission office of inspector general, establish the
  fraud prevention partnership to detect and prevent health care
  fraud in this state across the private and public markets. 
         (b)  The partnership shall include:
               (1)  a representative of one or more Medicaid managed
  care organizations;
               (2)  a representative of one or more health benefit
  plan issuers, as defined by Section 1222.0001; and
               (3)  any other appropriate person as determined by the
  commissioner and inspector general.
         SECTION 6.  Chapter 701, Insurance Code, is amended by
  adding Subchapter E to read as follows:
  SUBCHAPTER E.  ACTION BY PRIVATE PERSON
         Sec. 701.201.  ACTION BY PRIVATE PERSON AUTHORIZED.  (a)  A
  person may bring a civil action for a violation of Section
  35A.02(a-1), Penal Code, on behalf of the person and the state.  The
  action must be brought in the name of the person and of the state.
         (b)  In an action brought under this subchapter, a person who
  violates Section 35A.02(a-1), Penal Code, is liable as provided by
  Section 701.053.
         Sec. 701.202.  INITIATION OF ACTION.  (a)  A person bringing
  an action under this subchapter shall serve a copy of the petition
  and a written disclosure of substantially all material evidence and
  information the person possesses on the attorney general in
  compliance with the Texas Rules of Civil Procedure.
         (b)  A person shall file a petition for an action under this
  subchapter in camera and, except as provided by Section 701.203(b)
  or (c), the petition must remain under seal until the earlier of:
               (1)  the 180th day after the date the petition is served
  on the attorney general; or
               (2)  the date on which the state elects to intervene.
         (c)  A person bringing an action under this subchapter may
  not serve process on a defendant until the court orders service of
  process.
         Sec. 701.203.  STATE INTERVENTION.  (a)  The state may elect
  to intervene and proceed with an action under this subchapter not
  later than the 180th day after the date the attorney general
  receives the petition and the material evidence and information
  under Section 701.202(a).
         (b)  At the time the state intervenes in an action under this
  subchapter, the attorney general may file a motion with the court
  requesting that the petition remain under seal for an extended
  period.
         (c)  In an action under this subchapter, the state may, for
  good cause shown, move the court to extend the 180-day periods
  prescribed by Subsection (a) or Section 701.202(b).  A motion under
  this subsection may be supported by affidavits or other submissions
  in camera.
         Sec. 701.204.  CONSENT REQUIRED FOR DISMISSAL.  An action
  under this subchapter may be dismissed only if the court and the
  attorney general consent in writing to the dismissal and state
  their reasons for consenting.
         Sec. 701.205.  ANSWER BY DEFENDANT.  A defendant is not
  required to file in accordance with the Texas Rules of Civil
  Procedure an answer to a petition filed under this subchapter until
  the petition is unsealed and served on the defendant.
         Sec. 701.206.  STATE DECISION; CONTINUATION OF ACTION.  (a)
  Not later than the last day of the period prescribed by Section
  701.203(a) or an extension of that period as provided by Section
  701.203(c), the state shall:
               (1)  proceed with the action; or
               (2)  notify the court that the state declines to take
  over the action.
         (b)  If the state declines to take over an action under this
  subchapter, the person bringing the action may proceed without the
  state's participation.  A person proceeding under this subsection
  may recover for a violation for a period of up to six years before
  the date the action was filed, or for a period beginning when the
  violation occurred until up to three years from the date the state
  knows or reasonably should have known facts material to the
  violation, whichever of these two periods is longer, regardless of
  whether the violation occurred more than six years before the date
  the action was filed.  Notwithstanding this subsection, a person
  proceeding under this subsection may not recover for a violation
  that occurred more than 10 years before the date the action was
  filed.
         (c)  On request by the state, the state is entitled to be
  served with copies of all pleadings filed in an action under this
  subchapter and be provided at the state's expense with copies of all
  deposition transcripts.  If the person bringing the action proceeds
  without the state's participation, the court, without limiting the
  status and right of that person, may permit the state to intervene
  at a later date on a showing of good cause.
         Sec. 701.207.  REPRESENTATION OF STATE BY PRIVATE ATTORNEY.
  The attorney general may contract with a private attorney to
  represent the state in an action under this subchapter with which
  the state elects to proceed.
         Sec. 701.208.  INTERVENTION BY OTHER PARTIES PROHIBITED.  A
  person other than the state may not intervene or bring a related
  action based on the facts underlying a pending action under this
  subchapter.
         Sec. 701.209.  RIGHTS OF PARTIES IF STATE CONTINUES ACTION.
  (a)  If the state proceeds with an action under this subchapter, the
  state has the primary responsibility for prosecuting the action and
  is not bound by an act of the person bringing the action.  The person
  bringing the action has the right to continue as a party to the
  action, subject to the limitations set forth by this section.
         (b)  The state may dismiss an action under this subchapter
  notwithstanding the objections of the person bringing the action
  if:
               (1)  the attorney general notifies the person that the
  state has filed a motion to dismiss; and
               (2)  the court provides the person with an opportunity
  for a hearing on the motion.
         (c)  The state may settle an action under this subchapter
  with the defendant notwithstanding the objections of the person
  bringing the action if the court determines, after a hearing, that
  the proposed settlement is fair, adequate, and reasonable under all
  the circumstances.  On a showing of good cause, the hearing may be
  held in camera.
         (d)  On a showing by the state that unrestricted
  participation during the course of the litigation by the person
  bringing an action under this subchapter would interfere with or
  unduly delay the state's prosecution of the action, or would be
  repetitious, irrelevant, or for purposes of harassment, the court
  may impose limitations on the person's participation, including:
               (1)  limiting the number of witnesses the person may
  call;
               (2)  limiting the length of the testimony of witnesses
  called by the person;
               (3)  limiting the person's cross-examination of
  witnesses; or
               (4)  otherwise limiting the participation by the person
  in the litigation.
         (e)  On a showing by a defendant in an action under this
  subchapter that unrestricted participation during the course of the
  litigation by the person bringing the action would be for purposes
  of harassment or would cause the defendant undue burden or
  unnecessary expense, the court may limit the participation by the
  person in the litigation.
         Sec. 701.210.  STAY OF CERTAIN DISCOVERY.  (a)  On a showing
  by the state that certain actions of discovery by the person
  bringing an action under this subchapter would interfere with the
  state's investigation or prosecution of a criminal or civil matter
  arising out of the same facts, the court may stay the discovery for
  a period not to exceed 60 days.
         (b)  The court shall hear a motion to stay discovery under
  this section in camera.
         (c)  The court may extend the period prescribed by Subsection
  (a) on a further showing in camera that the state has pursued the
  criminal or civil investigation or proceedings with reasonable
  diligence and that any proposed discovery in the civil action will
  interfere with the ongoing criminal or civil investigation or
  proceedings.
         Sec. 701.211.  PURSUIT OF ALTERNATE REMEDY BY STATE.  (a)
  Notwithstanding Section 701.201, the state may elect to pursue the
  state's claim through any alternate remedy available to the state,
  including any administrative proceeding to determine an
  administrative penalty.  If an alternate remedy is pursued in
  another proceeding, the person bringing an action under this
  subchapter has the same rights in the other proceeding as the person
  would have had if the action had continued under this subchapter.
         (b)  A finding of fact or conclusion of law made in the other
  proceeding that has become final is conclusive on all parties to an
  action under this subchapter.  For purposes of this subsection, a
  finding or conclusion is final if:
               (1)  the finding or conclusion has been finally
  determined on appeal to the appropriate court;
               (2)  no appeal has been filed with respect to the
  finding or conclusion and all time for filing an appeal has expired;
  or
               (3)  the finding or conclusion is not subject to
  judicial review.
         Sec. 701.212.  AWARD TO PRIVATE CLAIMANT.  (a)  If the state
  proceeds with an action under this subchapter, the person bringing
  the action is entitled, except as provided by Subsection (c), to
  receive at least 15 percent but not more than 25 percent of the
  proceeds of the action, depending on the extent to which the person
  substantially contributed to the prosecution of the action.
         (b)  If the state does not proceed with an action under this
  subchapter, the person bringing the action is entitled, except as
  provided by Subsection (c), to receive at least 25 percent but not
  more than 30 percent of the proceeds of the action.  The entitlement
  of a person under this subsection is not affected by any subsequent
  intervention in the action by the state in accordance with Section
  701.206(c).
         (c)  If the court finds that an action under this subchapter
  is based primarily on disclosures of specific information, other
  than information provided by the person bringing the action,
  relating to allegations or transactions in a Texas or federal
  criminal or civil hearing, in a Texas or federal legislative or
  administrative report, hearing, audit, or investigation, or from
  the news media, the court may award the amount the court considers
  appropriate but not more than 10 percent of the proceeds of the
  action.  The court shall consider the significance of the
  information and the role of the person bringing the action in
  advancing the case to litigation.
         (d)  A payment to a person under this section shall be made
  from the proceeds of the action.  A person receiving a payment under
  this section is also entitled to receive from the defendant an
  amount for reasonable expenses, reasonable attorney's fees, and
  costs that the court finds to have been necessarily incurred.  The
  court's determination of expenses, fees, and costs to be awarded
  under this subsection shall be made only after the defendant has
  been found liable in the action or the claim is settled.
         (e)  In this section, "proceeds of the action" includes
  proceeds of a settlement of the action.
         Sec. 701.213.  REDUCTION OF AWARD.  (a)  If the court finds
  that an action under this subchapter was brought by a person who
  planned and initiated the violation on which the action was
  brought, the court may, to the extent the court considers
  appropriate, reduce the share of the proceeds of the action the
  person would otherwise receive under Section 701.212, taking into
  account the person's role in advancing the case to litigation and
  any relevant circumstances pertaining to the violation.
         (b)  If the person bringing an action under this subchapter
  is convicted of criminal conduct arising from the person's role in
  the violation, the court shall dismiss the person from the civil
  action and the person may not receive any share of the proceeds of
  the action.  A dismissal under this subsection does not prejudice
  the right of the state to continue the action.
         Sec. 701.214.  AWARD TO DEPARTMENT.  (a)  If the state
  proceeds with an action under this subchapter, the department is
  entitled to receive at least 15 percent but not more than 25 percent
  of the proceeds of the action, depending on the extent to which the
  department substantially contributed to the prosecution of the
  action.
         (b)  In this section, "proceeds of the action" includes
  proceeds of a settlement of the action.
         Sec. 701.215.  AWARD TO INJURED INSURER.  If the person
  bringing an action under this subchapter is not an insurer harmed by
  the violation that is the subject of the action, the insurer is
  entitled to any money remaining after all awards and costs are
  distributed as provided by this subchapter, including, in an action
  where the state proceeds, reasonable expenses, reasonable
  attorney's fees, and costs to the state that the court finds to have
  been necessarily incurred.
         Sec. 701.216.  AWARD TO DEFENDANT FOR FRIVOLOUS ACTION.
  Chapter 105, Civil Practice and Remedies Code, applies to an action
  under this subchapter with which the state proceeds.
         Sec. 701.217.  CERTAIN ACTIONS BARRED.  (a)  A person may not
  bring an action under this subchapter that is based on allegations
  or transactions that are the subject of a civil action or an
  administrative penalty proceeding in which the state is already a
  party.
         (b)  The court shall dismiss an action or claim under this
  subchapter, unless opposed by the attorney general, if
  substantially the same allegations or transactions as alleged in
  the action or claim were publicly disclosed in a Texas or federal
  criminal or civil hearing in which the state or an agent of the
  state is a party, in a legislative or administrative report of this
  state, or other hearing, audit, or investigation in this state, or
  from the news media, unless the person bringing the action is an
  original source of the information.  In this subsection, "original
  source" means an individual who:
               (1)  before a public disclosure described by this
  subsection, has voluntarily disclosed to the state the information
  on which allegations or transactions in a claim are based; or
               (2)  has knowledge that is independent of and
  materially adds to the publicly disclosed allegations or
  transactions and who has voluntarily provided the information to
  the state before filing an action under this subchapter.
         Sec. 701.218.  STATE NOT LIABLE FOR CERTAIN EXPENSES.  The
  state is not liable for expenses that a person incurs in bringing an
  action under this subchapter.
         Sec. 701.219.  RETALIATION AGAINST PERSON PROHIBITED.  (a)  
  A person, including an employee, contractor, or agent, who is
  discharged, demoted, suspended, threatened, harassed, or in any
  other manner discriminated against in the terms or conditions of
  employment because of a lawful act taken by the person or associated
  others in furtherance of an action under this subchapter, including
  investigation for, initiation of, testimony for, or assistance in
  an action filed or to be filed under this subchapter, or other
  efforts taken by the person to stop one or more violations is
  entitled to:
               (1)  reinstatement with the same seniority status the
  person would have had but for the discrimination; and
               (2)  not less than two times the amount of back pay,
  interest on the back pay, and compensation for any special damages
  sustained as a result of the discrimination, including litigation
  costs and reasonable attorney's fees.
         (b)  A person may bring an action under this section in the
  appropriate district court not later than the third anniversary of
  the date on which the cause of action accrues.  For purposes of this
  subsection, the cause of action accrues on the date the retaliation
  occurs.
         Sec. 701.220.  SOVEREIGN IMMUNITY NOT WAIVED.  Except as
  provided by Section 701.216, this subchapter does not waive
  sovereign immunity.
         Sec. 701.221.  ATTORNEY GENERAL COMPENSATION.  The attorney
  general may retain a reasonable portion of the amount recovered
  under this subchapter, not to exceed amounts specified in the
  General Appropriations Act, for the administration of this
  subchapter.
         SECTION 7.  Section 35A.01, Penal Code, is amended by adding
  Subdivisions (2-a), (2-b), and (2-c) and amending Subdivision (9)
  to read as follows:
               (2-a)  "Health benefit claim" means a written or
  electronically submitted request or demand that:
                     (A)  is submitted by a person who provides or
  purports to provide a service or product to an individual covered
  under a health benefit plan or by that person's agent and identifies
  a service or product provided or purported to have been provided to
  the covered individual as reimbursable under the health benefit
  plan, without regard to whether the money that is requested or
  demanded is paid and without regard to whether the individual was
  eligible for benefits under the health benefit plan; or
                     (B)  states the income earned or expense incurred
  by a person in providing a service or product to an individual
  covered by a health benefit plan and is used to determine a rate of
  payment under the plan.
               (2-b)  "Health benefit plan" means a health insurance
  policy, a health care plan, as defined by Section 843.002,
  Insurance Code, or another agreement, contract, or evidence of
  coverage under which a person undertakes to provide, arrange for,
  pay for, or reimburse any part of the cost of health care services.
               (2-c)  "Health benefit plan issuer" means a person who
  is authorized or otherwise permitted by law to issue a health
  insurance policy, to arrange for or provide a health care plan, as
  defined by Section 843.002, Insurance Code, or to otherwise provide
  health benefit plan coverage.
               (9)  "Service" includes care or treatment of a health
  care recipient or an individual covered under a health benefit
  plan.
         SECTION 8.  Section 35A.02, Penal Code, is amended by adding
  Subsection (a-1) and amending Subsections (b) and (d) to read as
  follows:
         (a-1)  A person commits an offense if the person:
               (1)  knowingly makes or causes to be made a false
  statement or misrepresentation of a material fact to permit a
  person to receive from a health benefit plan issuer a benefit or
  payment that is not authorized or that is greater than the benefit
  or payment that is authorized;
               (2)  knowingly conceals or fails to disclose
  information that permits a person to receive from a health benefit
  plan issuer a benefit or payment that is not authorized or that is
  greater than the benefit or payment that is authorized;
               (3)  knowingly makes or causes to be made a health
  benefit claim to a health benefit plan issuer for:
                     (A)  a service or product that has not been
  approved or acquiesced in by a treating physician or health care
  practitioner;
                     (B)  a service or product that is substantially
  inadequate or inappropriate when compared to generally recognized
  standards within the particular discipline or within the health
  care industry; or
                     (C)  a product that has been adulterated, debased,
  or mislabeled or that is otherwise inappropriate; or
               (4)  knowingly enters into an agreement, combination,
  or conspiracy to defraud a health benefit plan issuer by obtaining
  or aiding another person in obtaining an unauthorized payment or
  benefit from a health benefit plan issuer.
         (b)  An offense under this section is:
               (1)  a Class C misdemeanor if the amount of any payment
  or the value of any monetary or in-kind benefit provided or claim
  for payment made under a health care program, or the amount of a
  payment made by or the value of a benefit provided by or claim for
  payment made to a health benefit plan issuer, directly or
  indirectly, as a result of the conduct is less than $100;
               (2)  a Class B misdemeanor if the amount of any payment
  or the value of any monetary or in-kind benefit provided or claim
  for payment made under a health care program, or the amount of a
  payment made by or the value of a benefit provided by or claim for
  payment made to a health benefit plan issuer, directly or
  indirectly, as a result of the conduct is $100 or more but less than
  $750;
               (3)  a Class A misdemeanor if the amount of any payment
  or the value of any monetary or in-kind benefit provided or claim
  for payment made under a health care program, or the amount of a
  payment made by or the value of a benefit provided by or claim for
  payment made to a health benefit plan issuer, directly or
  indirectly, as a result of the conduct is $750 or more but less than
  $2,500;
               (4)  a state jail felony if:
                     (A)  the amount of any payment or the value of any
  monetary or in-kind benefit provided or claim for payment made
  under a health care program, or the amount of a payment made by or
  the value of a benefit provided by or claim for payment made to a
  health benefit plan issuer, directly or indirectly, as a result of
  the conduct is $2,500 or more but less than $30,000;
                     (B)  the offense is committed under Subsection
  (a)(11); or
                     (C)  it is shown on the trial of the offense that
  the amount of the payment or value of the benefit described by this
  subsection cannot be reasonably ascertained;
               (5)  a felony of the third degree if:
                     (A)  the amount of any payment or the value of any
  monetary or in-kind benefit provided or claim for payment made
  under a health care program, or the amount of a payment made by or
  the value of a benefit provided by or claim for payment made to a
  health benefit plan issuer, directly or indirectly, as a result of
  the conduct is $30,000 or more but less than $150,000; or
                     (B)  it is shown on the trial of the offense that
  the defendant submitted more than 25 but fewer than 50 fraudulent
  claims under a health care program or to a health benefit plan
  issuer, as applicable, and the submission of each claim constitutes
  conduct prohibited by Subsection (a) or (a-1), as applicable;
               (6)  a felony of the second degree if:
                     (A)  the amount of any payment or the value of any
  monetary or in-kind benefit provided or claim for payment made
  under a health care program, or the amount of a payment made by or
  the value of a benefit provided by or claim for payment made to a
  health benefit plan issuer, directly or indirectly, as a result of
  the conduct is $150,000 or more but less than $300,000; or
                     (B)  it is shown on the trial of the offense that
  the defendant submitted 50 or more fraudulent claims under a health
  care program or to a health benefit plan issuer, as applicable, and
  the submission of each claim constitutes conduct prohibited by
  Subsection (a) or (a-1), as applicable; or
               (7)  a felony of the first degree if the amount of any
  payment or the value of any monetary or in-kind benefit provided or
  claim for payment made under a health care program, or the amount of
  a payment made by or the value of a benefit provided by or claim for
  payment made to a health benefit plan issuer, directly or
  indirectly, as a result of the conduct is $300,000 or more.
         (d)  When multiple payments or monetary or in-kind benefits
  are provided under one or more health care programs or by one or
  more health benefit plan issuers as a result of one scheme or
  continuing course of conduct, the conduct may be considered as one
  offense and the amounts of the payments or monetary or in-kind
  benefits aggregated in determining the grade of the offense.
         SECTION 9.  Section 3(a)(3), Article 37.07, Code of Criminal
  Procedure, is amended to read as follows:
               (3)  Regardless of the plea and whether the punishment
  is assessed by the judge or the jury, during the punishment phase of
  the trial of an offense under Section 35A.02, Penal Code, subject to
  the applicable rules of evidence, the state and the defendant may
  offer evidence not offered during the guilt or innocence phase of
  the trial concerning the total pecuniary loss to the affected
  health care program or health benefit plan issuer, as applicable,
  caused by the defendant's conduct or, if applicable, the scheme or
  continuing course of conduct of which the defendant's conduct is
  part.  Evidence may be offered in summary form concerning the total
  pecuniary loss to the affected health care program or health
  benefit plan issuer, as applicable.  Testimony regarding the total
  pecuniary loss to the affected health care program or health
  benefit plan issuer, as applicable, is subject to
  cross-examination.  Evidence offered under this subdivision may be
  considered by the judge or jury in ordering or recommending the
  amount of any restitution to be made to the affected health care
  program or health benefit plan issuer, as applicable, or the
  appropriate punishment for the defendant.
         SECTION 10.  The change in law made by this Act applies only
  to an offense committed on or after the effective date of this Act.  
  An offense committed before the effective date of this Act is
  governed by the law in effect at the time the offense was committed,
  and the former law is continued in effect for that purpose.  For
  purposes of this section, an offense was committed before the
  effective date of this Act if any element of the offense occurred
  before that date.
         SECTION 11.  This Act takes effect September 1, 2025.