BILL ANALYSIS H.B. 871 By: Maxey 4-18-95 Committee Report (Unamended) BACKGROUND Every year hospitals across the state lose hundreds of thousands of dollars for simply filing a lien in the wrong county. Texas law in Section 55.005(a) of the Property Code mandates that when a person is injured due to the negligence of another, the hospital must file the lien in the county where the injury took place. This antiquated law was written when treatment often occurred in the same county as the injury. Because of modern services, such as air-ambulances, treatment occurs at a hospital or trauma center in a county other than where the injury occurred. Often, it is impossible or extremely difficult for a hospital to obtain the correct information for properly filing the lien. As a result, lawyers and insurance companies cite Section 55.005(a) as justification for ignoring hospital bills, causing tremendous losses to hospitals that ultimately manifest in the quality of care and service provided to its patients. This bill remedies the situation by allowing hospitals to file a lien in the county in which the hospital services were rendered, making the process much simpler and clearer. Without this alteration, hospitals and their patients will continue to be the victims of dishonest individuals who are ultimately supported by Texas law. PURPOSE H.B. 871 amends Section 55.005(a) of the Property Code to require that hospitals file a lien in the county where the hospital services were provided, rather than where the injury occurred. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 55.005(a) of the Property Code to require that hospitals file a lien in the county where the hospital services were provided. SECTION 2. Emergency clause. SUMMARY OF COMMITTEE ACTION The Committee on Business and Industry considered H.B. 871 in a public hearing on April 18, 1995. Testifying in support of the bill were Sonny Hood, representing the City of Austin/Brackenridge Hospital/Department of Law and Jessie McNeil Tuberville, representing Brackenridge Hospital. H.B. 871 was reported favorably without amendment with the recommendation that it do pass and be printed and be sent to the Committee on Local and Consent Calendars, by a record vote of 7 (seven) ayes, 0 (zero) nays, 0 (zero) present-not-voting, and 2 (two) absent.