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.