The bill, S.B. No. 1640, amends Section 411.1143 of the Government Code to enhance access to criminal history record information for the Medicaid program. It specifies that the Health and Human Services Commission and the office of inspector general can obtain criminal history information related to individuals with significant ownership or control interests in Medicaid providers. Specifically, it includes individuals with a direct or indirect ownership interest of five percent or more, those who own a similar interest in secured obligations, and individuals who serve as officers, directors, or partners of the provider. The bill also clarifies the definition of "managing employee" and introduces new definitions for terms such as "Medicaid agency," "ownership interest," and "provider."

Additionally, the bill removes outdated language that referenced federal regulations regarding ownership and control interests, streamlining the criteria for criminal history checks. The new definitions and criteria aim to ensure that individuals with substantial control over Medicaid providers are subject to appropriate scrutiny, thereby enhancing the integrity of the Medicaid program. The act is set to take effect on April 1, 2025, contingent upon receiving a two-thirds vote from both houses of the legislature; otherwise, it will take effect on September 1, 2025.