(A) IN GENERAL.—Each State Health Se-
curity Advisory Council shall review, and sub-
mit comments to the Governor concerning the 
implementation of the State health security pro-
gram in the State. 
(B) ASSISTANCE.—Each State Health Se-
curity Advisory Council shall provide assistance 
and technical support to community organiza-
tions and public and private non-profit agencies 
submitting applications for funding under ap-
propriate State and Federal public health pro-
grams, with particular emphasis placed on as-
sisting those applicants with broad consumer 
representation. 
(d) STATE USE OF FISCAL AGENTS.— 
(1) IN GENERAL.—Each State health security 
program, using competitive bidding procedures, may 
enter into such contracts with qualified entities, such 
as voluntary associations, as the State determines to 
be appropriate to process claims and to perform 
other related functions of fiscal agents under the 
State health security program. 
(2) RESTRICTION.—Except as the Board may 
provide for good cause shown, in no case may more
than 1 contract described in paragraph (1) be en-
tered into under a State health security program. 
SEC. 
405. 
COMPLEMENTARY 
CONDUCT 
OF 
RELATED 
HEALTH PROGRAMS. 
In performing functions with respect to health per-
sonnel education and training, health research, environ-
mental health, disability insurance, vocational rehabilita-
tion, the regulation of food and drugs, and all other mat-
ters pertaining to health, the Secretary of Health and 
Human Services shall direct all activities of the Depart-
ment of Health and Human Services toward contributions 
to the health of the people complementary to this Act. 
Subtitle B—Control Over Fraud 
and Abuse 
SEC. 411. APPLICATION OF FEDERAL SANCTIONS TO ALL 
FRAUD 
AND 
ABUSE 
UNDER 
AMERICAN 
HEALTH SECURITY PROGRAM. 
The following sections of the Social Security Act shall 
apply to State health security programs in the same man-
ner as they apply to State medical assistance plans under 
title XIX of such Act (except that in applying such provi-
sions any reference to the Secretary is deemed a reference 
to the Board): 
(1) Section 1128 (relating to exclusion of indi-
viduals and entities).
(2) Section 1128A (civil monetary penalties). 
(3) Section 1128B (criminal penalties). 
(4) Section 1124 (relating to disclosure of own-
ership and related information). 
(5) Section 1126 (relating to disclosure of cer-
tain owners). 
SEC. 412. REQUIREMENTS FOR OPERATION OF STATE 
HEALTH CARE FRAUD AND ABUSE CONTROL 
UNITS. 
(a) REQUIREMENT.—In order to meet the require-
ment of section 404(b)(1)(K), each State health security 
program must establish and maintain a health care fraud 
and abuse control unit (in this section referred to as a 
‘‘fraud unit’’) that meets requirements of this section and 
other requirements of the Board. Such a unit may be a 
State medicaid fraud control unit (described in section 
1903(q) of the Social Security Act). 
(b) STRUCTURE OF UNIT.—The fraud unit must— 
(1) be a single identifiable entity of the State 
government; 
(2) be separate and distinct from the State 
agency with principal responsibility for the adminis-
tration of the State health security program; and 
(3) meet 1 of the following requirements: