Holt Fraud Bill Takes Benefits Lies Up To First-Degree Felony

The text as introduced · 483 words

89R9720 MZM-D

By: Holt
H.B. No. 2734

A BILL TO BE ENTITLED

AN ACT

relating to public assistance program fraud; creating a criminal

offense.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading to Section 32.32, Penal Code, is

amended to read as follows:

Sec. 32.32. FALSE STATEMENT TO OBTAIN PROPERTY , [ OR ]

CREDIT , OR PUBLIC ASSISTANCE PROGRAM BENEFIT OR IN THE PROVISION OF

CERTAIN SERVICES.

SECTION 2. Section 32.32, Penal Code, is amended by

amending Subsections (a) and (c) and adding Subsection (b-2) to

read as follows:

(a) For purposes of this section :

(1) "Credit" [ , "credit" ] includes:

(A) [ (1) ] a loan of money;

(B) [ (2) ] furnishing property or service on

credit;

(C) [ (3) ] extending the due date of an

obligation;

(D) [ (4) ] comaking, endorsing, or guaranteeing a

note or other instrument for obtaining credit;

(E) [ (5) ] a line or letter of credit;

(F) [ (6) ] a credit card, as defined in Section

32.31 (Credit Card or Debit Card Abuse); and

(G) [ (7) ] a mortgage loan.

(2) "Public assistance program" includes:

(A) the child health plan program under Chapter

62, Health and Safety Code;

(B) the financial assistance program under

Chapter 31, Human Resources Code;

(C) the medical assistance program established

under Chapter 32, Human Resources Code; and

(D) the nutritional assistance programs under

Chapter 33, Human Resources Code, including the supplemental

nutrition assistance program under that chapter.

(b-2) A person commits an offense if the person

intentionally or knowingly makes a materially false or misleading

written statement in an application to obtain a benefit under a

public assistance program.

(c) An offense under this section is:

(1) a Class C misdemeanor if the value of the property

or benefit or the amount of credit is less than $100;

(2) a Class B misdemeanor if the value of the property

or benefit or the amount of credit is $100 or more but less than

$750;

(3) a Class A misdemeanor if the value of the property

or benefit or the amount of credit is $750 or more but less than

$2,500;

(4) a state jail felony if the value of the property or

benefit or the amount of credit is $2,500 or more but less than

$30,000;

(5) a felony of the third degree if the value of the

property or benefit or the amount of credit is $30,000 or more but

less than $150,000;

(6) a felony of the second degree if the value of the

property or benefit or the amount of credit is $150,000 or more but

less than $300,000; or

(7) a felony of the first degree if the value of the

property or benefit or the amount of credit is $300,000 or more.

SECTION 3. This Act takes effect September 1, 2025.