Texas Human Resources Code - Section 32.0321. Surety Bond
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Texas Laws > Human Resources Code > Texas Human Resources Code - Section 32.0321. Surety Bond
Section: 32.029 32.0291 32.030 32.031 32.0311 32.0315 32.032 32.0321 32.0322 32.033 32.034 32.035 32.036 32.038 32.0381
§ 32.0321. SURETY BOND. (a) The department by rule may
require each provider of medical assistance in a provider type that
has demonstrated significant potential for fraud or abuse to file
with the department a surety bond in a reasonable amount. The
department by rule shall require a provider of medical assistance
to file with the department a surety bond in a reasonable amount if
the department identifies a pattern of suspected fraud or abuse
involving criminal conduct relating to the provider's services
under the medical assistance program that indicates the need for
protection against potential future acts of fraud or abuse.
(b) The bond under Subsection (a) must be payable to the
department to compensate the department for damages resulting from
or penalties or fines imposed in connection with an act of fraud or
abuse committed by the provider under the medical assistance
(c) Subject to Subsection (d) or (e), the department by rule
may require each provider of medical assistance that establishes a
resident's trust fund account to post a surety bond to secure the
account. The bond must be payable to the department to compensate
residents of the bonded provider for trust funds that are lost,
stolen, or otherwise unaccounted for if the provider does not repay
any deficiency in a resident's trust fund account to the person
legally entitled to receive the funds.
(d) The department may not require the amount of a surety
bond posted for a single facility provider under Subsection (c) to
exceed the average of the total average monthly balance of all the
provider's resident trust fund accounts for the 12-month period
preceding the bond issuance or renewal date.
(e) If an employee of a provider of medical assistance is
responsible for the loss of funds in a resident's trust fund
account, the resident, the resident's family, and the resident's
legal representative are not obligated to make any payments to the
provider that would have been made out of the trust fund had the
loss not occurred.
Added by Acts 1997, 75th Leg., ch. 1153, § 2.03, eff. Sept. 1,
1997. Amended by Acts 2003, 78th Leg., ch. 198, § 2.105, eff.
Sept. 1, 2003; Acts 2003, 78th Leg., ch. 257, § 3, eff. Sept. 1,
Last modified: August 11, 2007