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A BILL TO BE ENTITLED
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AN ACT
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relating to the attachment of a hospital lien on a cause of action |
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or claim of an injured person who receives hospital services. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 55.001(3), Property Code, is amended to |
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read as follows: |
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(3) "Hospital" has the meaning assigned by Section |
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241.003, Health and Safety Code [means a person or institution
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maintaining a facility that
provides hospital
services in this
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state]. |
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SECTION 2. Sections 55.002(a) and (b), Property Code, are |
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amended to read as follows: |
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(a) A hospital has a lien on a cause of action or claim of an |
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individual who receives hospital services for injuries caused by an |
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accident that is attributed to the negligence of another person. |
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For the lien to attach, the individual must receive services from |
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[be admitted to] a hospital not later than 72 hours after the |
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accident. |
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(b) The lien extends to both the [admitting] hospital from |
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which an individual initially receives services and a hospital to |
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which the individual is transferred for treatment of the same |
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injury. |
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SECTION 3. Section 55.003(a), Property Code, is amended to |
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read as follows: |
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(a) A lien under this chapter attaches to: |
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(1) a cause of action for damages arising from an |
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injury for which the injured individual receives services from [is
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admitted to] the hospital or receives emergency medical services; |
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(2) a judgment of a court in this state or the decision |
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of a public agency in a proceeding brought by the injured individual |
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or by another person entitled to bring the suit in case of the death |
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of the individual to recover damages arising from an injury for |
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which the injured individual receives services from [is admitted
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to] the hospital or receives emergency medical services; and |
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(3) the proceeds of a settlement of a cause of action |
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or a claim by the injured individual or another person entitled to |
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make the claim, arising from an injury for which the injured |
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individual receives services from [is admitted to] the hospital or |
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receives emergency medical services. |
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SECTION 4. Sections 55.004(b) and (c), Property Code, are |
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amended to read as follows: |
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(b) A hospital lien described by Section 55.002(a) is for |
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the amount of the hospital's charges for services provided to the |
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injured individual during the first 100 days that [of] the injured |
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individual receives services from the hospital [individual's
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hospitalization]. |
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(c) A hospital lien described by Section 55.002(a) may also |
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include the amount of a physician's reasonable and necessary |
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charges for emergency hospital care services provided to the |
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injured individual during the first seven days that [of] the |
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injured individual receives services from the hospital |
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[individual's hospitalization]. At the request of the physician, |
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the hospital may act on the physician's behalf in securing and |
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discharging the lien. |
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SECTION 5. Section 55.009 Property Code, is added to read as |
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follows: |
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Sec. 55.009. RECOVERY LIMITED. (a) If a person is entitled |
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by law to seek a recovery of medical expenses for injuries caused by |
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an accident that is attributed to the negligence of another person, |
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the person and all lien holders are entitled to recover as provided |
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by Subsection (b) or (c). |
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(b) This subsection applies when a person is not represented |
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by an attorney in obtaining a recovery. The person and all lien |
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holders are entitled to recover under Subsection (a) of a person's |
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recovery in an amount that is equal to the lesser of: |
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(1) one-half of the person's gross recovery; or |
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(2) the total amount provided by Sec 55.004. |
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(c) This subsection applies when a person is represented by |
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an attorney in obtaining a recovery. The person and lien holders |
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share under Subsection (a) of a person's recovery is an amount that |
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is equal to the lesser of: |
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(1) one-half of the person's gross recovery less |
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attorney's fees and procurement costs as provided by Section |
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55.011; or |
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(2) the total under Sec 55.004 less attorney's fees and |
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procurement costs as provided by Section 55.011. |
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SECTION 6. Section 55.010 Property Code, is added to read as |
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follows: |
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Sec. 55.010. ATTORNEY'S FEES IN DECLARATORY JUDGMENT |
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ACTION. Notwithstanding Section 37.009 or any other law, if a |
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declaratory judgment action is brought under this chapter, the |
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court may not award costs or attorney's fees to any party in the |
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action for the declaratory judgment action. |
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SECTION 7. Section 55.011 Property Code, is added to read as |
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follows: |
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Sec. 55.011. ATTORNEY'S FEES IN RECOVERY ACTION. (a) Except |
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as provided by Subsection (c), a lien holder whose interest is not |
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actively represented by an attorney in an action seeking a recovery |
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for injuries caused by an accident that is attributed to the |
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negligence of another person shall pay to an attorney representing |
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the person a fee in an amount determined under an agreement entered |
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into between the attorney and the lien holder plus a pro rata share |
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of expenses incurred in connection with the recovery. |
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(b) Except as provided by Subsection (c), in the absence of |
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an agreement described by Subsection (a), the court shall award to |
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the attorney, payable out of the lien holder's share of the total |
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gross recovery, a reasonable fee for recovery of their share, not |
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to exceed one-third of their recovery, plus a pro rata share of |
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expenses incurred in connection with the recovery. |
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(c) If an attorney representing the lien holder's interest |
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actively participates in obtaining a recovery, the court shall |
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award and apportion between the person's attorney and lien holder's |
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attorney a fee and pro rata expenses payable out of recovery. In |
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apportioning the award, the court shall consider the benefit |
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accruing to the lien holder as a result of each attorney's service. |
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The total attorney's fees may not exceed one-third of the payor's |
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recovery. |
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SECTION 8. Section 55.012 Property Code, is added to read as |
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follows: |
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Sec. 55.012. CONSTRUCTION OF CHAPTER. Nothing in this |
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chapter shall be construed to prevent a hospital or emergency |
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medical services provider from waiving, negotiating, or not |
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pursuing any claim or recovery described in this chapter. The |
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injured individual or their authorized representative retains |
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exclusive authority to conduct negotiations on behalf of the |
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injured individual in the absence of a court order. |
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SECTION 13 |
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. The change in law made by this Act applies only |
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to a lien for services provided to an injured individual on or after |
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the effective date of this Act. A lien for services provided before |
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the effective date of this Act is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 14. This Act takes effect September 1, 2017. |