By: Thierry H.B. No. 4048       A BILL TO BE ENTITLED   AN ACT   relating to the attachment of a hospital lien on a cause of action   or claim of an injured person who receives hospital services.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 55.001(3), Property Code, is amended to   read as follows:                (3)  "Hospital" has the meaning assigned by Section   241.003, Health and Safety Code [means a person or institution   maintaining a facility that   provides hospital   services in this     state].          SECTION 2.  Sections 55.002(a) and (b), Property Code, are   amended to read as follows:          (a)  A hospital has a lien on a cause of action or claim of an   individual who receives hospital services for injuries caused by an   accident that is attributed to the negligence of another person.   For the lien to attach, the individual must receive services from    [be admitted to] a hospital not later than 72 hours after the   accident.          (b)  The lien extends to both the [admitting] hospital from   which an individual initially receives services and a hospital to   which the individual is transferred for treatment of the same   injury.          SECTION 3.  Section 55.003(a), Property Code, is amended to   read as follows:          (a)  A lien under this chapter attaches to:                (1)  a cause of action for damages arising from an   injury for which the injured individual receives services from [is   admitted to] the hospital or receives emergency medical services;                (2)  a judgment of a court in this state or the decision   of a public agency in a proceeding brought by the injured individual   or by another person entitled to bring the suit in case of the death   of the individual to recover damages arising from an injury for   which the injured individual receives services from [is admitted   to] the hospital or receives emergency medical services; and                (3)  the proceeds of a settlement of a cause of action   or a claim by the injured individual or another person entitled to   make the claim, arising from an injury for which the injured   individual receives services from [is admitted to] the hospital or   receives emergency medical services.          SECTION 4.  Sections 55.004(b) and (c), Property Code, are   amended to read as follows:          (b)  A hospital lien described by Section 55.002(a) is for   the amount of the hospital's charges for services provided to the   injured individual during the first 100 days that [of] the injured   individual receives services from the hospital [individual's   hospitalization].          (c)  A hospital lien described by Section 55.002(a) may also   include the amount of a physician's reasonable and necessary   charges for emergency hospital care services provided to the   injured individual during the first seven days that [of] the   injured individual receives services from the hospital     [individual's hospitalization]. At the request of the physician,   the hospital may act on the physician's behalf in securing and   discharging the lien.          SECTION 5.  Section 55.009 Property Code, is added to read as   follows:          Sec. 55.009.  RECOVERY LIMITED. (a)  If a person is entitled   by law to seek a recovery of medical expenses for injuries caused by   an accident that is attributed to the negligence of another person,   the person and all lien holders are entitled to recover as provided   by Subsection (b) or (c).          (b)  This subsection applies when a person is not represented   by an attorney in obtaining a recovery. The person and all lien   holders are entitled to recover under Subsection (a) of a person's   recovery in an amount that is equal to the lesser of:                 (1)  one-half of the person's gross recovery; or                 (2)  the total amount provided by Sec 55.004.           (c)  This subsection applies when a person is represented by   an attorney in obtaining a recovery. The person and lien holders   share under Subsection (a) of a person's recovery is an amount that   is equal to the lesser of:                 (1)  one-half of the person's gross recovery less   attorney's fees and procurement costs as provided by Section   55.011; or                 (2)  the total under Sec 55.004 less attorney's fees and   procurement costs as provided by Section 55.011.           SECTION 6.  Section 55.010 Property Code, is added to read as   follows:          Sec. 55.010.  ATTORNEY'S FEES IN DECLARATORY JUDGMENT   ACTION. Notwithstanding Section 37.009 or any other law, if a   declaratory judgment action is brought under this chapter, the   court may not award costs or attorney's fees to any party in the   action for the declaratory judgment action.           SECTION 7.  Section 55.011 Property Code, is added to read as   follows:          Sec. 55.011.  ATTORNEY'S FEES IN RECOVERY ACTION. (a) Except   as provided by Subsection (c), a lien holder whose interest is not   actively represented by an attorney in an action seeking a recovery   for injuries caused by an accident that is attributed to the   negligence of another person shall pay to an attorney representing   the person a fee in an amount determined under an agreement entered   into between the attorney and the lien holder plus a pro rata share   of expenses incurred in connection with the recovery.           (b)  Except as provided by Subsection (c), in the absence of   an agreement described by Subsection (a), the court shall award to   the attorney, payable out of the lien holder's share of the total   gross recovery, a reasonable fee for recovery of their share, not   to exceed one-third of their recovery, plus a pro rata share of   expenses incurred in connection with the recovery.           (c)  If an attorney representing the lien holder's interest   actively participates in obtaining a recovery, the court shall   award and apportion between the person's attorney and lien holder's   attorney a fee and pro rata expenses payable out of recovery. In   apportioning the award, the court shall consider the benefit   accruing to the lien holder as a result of each attorney's service.   The total attorney's fees may not exceed one-third of the payor's   recovery.          SECTION 8.  Section 55.012 Property Code, is added to read as   follows:          Sec. 55.012.  CONSTRUCTION OF CHAPTER. Nothing in this   chapter shall be construed to prevent a hospital or emergency   medical services provider from waiving, negotiating, or not   pursuing any claim or recovery described in this chapter. The   injured individual or their authorized representative retains   exclusive authority to conduct negotiations on behalf of the   injured individual in the absence of a court order.           SECTION 13   .  The change in law made by this Act applies only   to a lien for services provided to an injured individual on or after   the effective date of this Act. A lien for services provided before   the effective date of this Act is governed by the law as it existed   immediately before the effective date of this Act, and that law is   continued in effect for that purpose.          SECTION 14.  This Act takes effect September 1, 2017.