Senate Bill 362, introduced in the 80th Texas Legislature by Kyle Janek (RHouston), would amend the state’s Medicaid Fraud Prevention Act. Under the 2005 Deficit Reduction Act (“DRA”), states that enact laws that closely mirror the federal False Claims Act may retain an increased proportion of the proceeds recovered from Medicaid fraud actions. A subsequent review of Texas’s law by the HHS Office of Inspector General found that the current Texas statute did not fully comply with federal requirements. As reported out of the Texas Legislature, SB 362 would remedy the deficiencies in the state’s Medicaid Fraud Prevention Act. Specifically, SB 362 would increase the minimum civil monetary penalty for Medicaid fraud from $1,000 to $5,000. The bill would also establish the standard of proof at a preponderance of evidence. Under SB 362, relators would be able to pursue a civil action without the state’s participation (rather than requiring the court to dismiss the case) should the state decline to intervene. The minimum percentage for a realtor’s share of the Medicaid fraud recovery would also be increased from 10 to 15 percent of the proceeds. In the event the state declines to intervene, this amount would increase to 25 to 30 percent.