SB 1640

relating to access to criminal history record information for
purposes of the Medicaid program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 411.1143, Government Code, as effective
April 1, 2025, is amended by amending Subsection (a-1) and adding
Subsection (e) to read as follows:
(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:
(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
(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
(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].
(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
(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)  "Medicaid agency" means the single state agency
administering or supervising the administration of the state
(3)  "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.
(A)  an individual or entity that provides
Medicaid services under an agreement with the Medicaid agency; or
(B)  an individual or entity that engages in the
delivery of health care services through the Medicaid managed care
program and that is authorized by this state to deliver those
SECTION 2.  This Act takes effect April 1, 2025, if this Act
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 effect on that
date, this Act takes effect September 1, 2025.