73R9473 CLG-F
          By Gallego                                            H.B. No. 2728
          Substitute the following for H.B. No. 2728:
          By McCall                                         C.S.H.B. No. 2728
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the settlement of certain claims involving Medicaid
    1-3  recipients; providing a criminal penalty.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 32.033, Human Resources Code, is amended
    1-6  by adding Subsections (i) and (j) to read as follows:
    1-7        (i)  Without the written authorization of the commissioner, a
    1-8  person who applies for or receives medical assistance under this
    1-9  chapter may not settle or resolve a claim:
   1-10              (1)  for damages caused by an act or failure to act
   1-11  that the applicant or recipient is required to report under
   1-12  Subsection (b); or
   1-13              (2)  under private insurance coverage that the
   1-14  applicant or recipient is required to report under Subsection (b).
   1-15        (j)  A person commits an offense if the person knowingly or
   1-16  intentionally violates Subsection (i).  An offense under this
   1-17  subsection is a Class B misdemeanor.
   1-18        SECTION 2.  Subchapter B, Chapter 32, Human Resources Code,
   1-19  is amended by adding Section 32.0335 to read as follows:
   1-20        Sec. 32.0335.  THIRD PARTY SETTLEMENT OR RESOLUTION OF
   1-21  CERTAIN CLAIMS.  (a)  Without the written authorization of the
   1-22  commissioner, a third party, including an insurer or an attorney or
   1-23  other agent of a third party, may not participate in the settlement
    2-1  or resolution of a claim made by a person or on the person's behalf
    2-2  if the third party, attorney, or agent actually knows or should
    2-3  have known that:
    2-4              (1)  the person has applied for or receives medical
    2-5  assistance under this chapter; and
    2-6              (2)  the department has a right of subrogation in
    2-7  relation to the claim.
    2-8        (b)  A settlement or resolution of a claim made by a third
    2-9  party or on behalf of a third party in violation of this section is
   2-10  void and does not release a third party from liability to the
   2-11  department for a claim that is assigned to the department under
   2-12  Section 32.033.
   2-13        (c)  An insurer, or an attorney or other agent of a third
   2-14  party, who pays money to a person in violation of this section is
   2-15  liable to the department for the full amount of the department's
   2-16  right of recovery under Section 32.033(e).
   2-17        (d)  A person commits an offense if the person knowingly or
   2-18  intentionally violates this section.   An offense under this
   2-19  section is a Class B misdemeanor.
   2-20        (e)  This section applies to a claim described by Section
   2-21  32.033(i).
   2-22        SECTION 3.  (a)  This Act take effect September 1, 1993.
   2-23        (b)  The change in law made by this Act applies only to a
   2-24  cause of action or right of recovery that accrues on or after the
   2-25  effective date of this Act.  A cause of action or right of recovery
    3-1  that accrued before the effective date of this Act is covered by
    3-2  the law in effect at the time the cause of action or right of
    3-3  recovery accrued, and the former law is continued in effect for
    3-4  that purpose.
    3-5        SECTION 4.  The importance of this legislation and the
    3-6  crowded condition of the calendars in both houses create an
    3-7  emergency and an imperative public necessity that the
    3-8  constitutional rule requiring bills to be read on three several
    3-9  days in each house be suspended, and this rule is hereby suspended.