By Gallego                                            H.B. No. 2728
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the assignment of rates of recovery from personal
    1-3  injury made by persons who apply for, or receive, medical
    1-4  assistance, and liability of third parties relating to same.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Section 32.033 of the Human Resources Code is
    1-7  hereby amended to read as follows:
    1-8        (b)  A person who applies for or receives medical assistance
    1-9  shall inform the department, at the time of application or at any
   1-10  time during eligibility and receipt of services, of any unsettled
   1-11  tort claim which may affect medical needs and of any private
   1-12  accident or sickness insurance coverage that is or may become
   1-13  available.  A recipient shall inform the department of any injury
   1-14  requiring medical attention that is caused by the act or failure to
   1-15  act of some other person.  An applicant or a recipient shall inform
   1-16  the department as required by this subsection within 60 days of the
   1-17  date the person learns of his or her insurance coverage, tort
   1-18  claim, or potential cause of action.  An applicant or a recipient
   1-19  shall not settle or resolve any such claim without written
   1-20  authorization to do so from the Commissioner.  No third party or
   1-21  agents, insurers, or attorneys for third parties shall participate
   1-22  in the settlement or resolution of such a claim if they actually
   1-23  know, or should know, that the claimant has received medical
    2-1  assistance and is subject to the assignment provisions of this
    2-2  subsection.  Any attempt by such third party, or agents, insurers,
    2-3  or attorneys of third parties to settle such a claim is void and
    2-4  shall result in no release from liability to the department for any
    2-5  claims assigned pursuant to this subchapter.  All such agents,
    2-6  insurers, and attorneys are personally liable to the department for
    2-7  any funds paid to a claimant in violation of this subsection, up to
    2-8  the full amount of the department's right to reimbursement.  An
    2-9  applicant, <or a> recipient, third party, or any agents, attorneys,
   2-10  or insurers of third parties who knowingly <and> or intentionally
   2-11  fail<s> to <disclose the information required by> comply with the
   2-12  requirements of this subsection commit<s> a Class <C> B
   2-13  misdemeanor.
   2-14        SECTION 2.  This act takes effect immediately upon passage
   2-15  and applies to all claims that arise after the effective date of
   2-16  the act.
   2-17        SECTION 3.  The importance of this legislation and the
   2-18  crowded condition of the calendars in both houses create an
   2-19  emergency and an imperative public necessity that the
   2-20  constitutional rule requiring bills to be read on three several
   2-21  days in each house be suspended, and this rule is hereby suspended.