Texas Government Code 526.0059 – Prohibited Award of Contracts to Managed Care Organizations for Certain Criminal Convictions
Terms Used In Texas Government Code 526.0059
- Contract: A legal written agreement that becomes binding when signed.
- Conviction: A judgement of guilt against a criminal defendant.
- Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
- Fiduciary: A trustee, executor, or administrator.
- Fraud: Intentional deception resulting in injury to another.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
The commission may not contract with a managed care organization, including a health maintenance organization, or a pharmacy benefit manager if, in the preceding three years, the organization or manager, in connection with a bid, proposal, or contract with the commission, was subject to a final judgment by a court of competent jurisdiction resulting in:
(1) a conviction for:
(A) a criminal offense under state or federal law related to the delivery of an item or service;
(B) a criminal offense under state or federal law related to neglect or abuse of patients in connection with the delivery of an item or service; or
(C) a felony offense under state or federal law related to fraud, theft, embezzlement, breach of fiduciary responsibility, or other financial misconduct; or
(2) the imposition of a penalty or fine in the amount of $500,000 or more in a state or federal administrative proceeding based on a conviction for a criminal offense under state or federal law.
Text of section effective on April 01, 2025