BILL ANALYSIS
C.S.H.B. 2420
By: Alvarado
May 2, 1995
Committee Report (Substituted)
BACKGROUND
The Legislature can create statutory liens or security interests
for the payment of a debt. Legislative enactments in Texas provide
for statutory liens in favor of particular providers of services or
materials such as garagemen, cleaners, innkeepers, laborers,
contractors and hospitals. At present, there is no statutory lien
in favor a chiropractor.
PURPOSE
C.S.H.B. 2420 would create a statutory lien in favor of a
chiropractor.
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 Subtitle B, Title 5, Property Code, by
adding Chapter 62 as follows:
CHAPTER 62. CHIROPRACTOR'S LIEN.
Sect. 62.0001. DEFINITIONS. Defines "chiropractor" as an
individual who is licensed by the Texas Board of Chiropractic
Examiners.
Sect. 62.002. LIEN. Creates a lien in favor of a chiropractor
on a cause of action or claim of an individual who receives
chiropractic services rendered by the chiropractor for injuries
caused by an accident attributable to negligence of another.
Sect. 62.003 PROPERTY TO WHICH LIEN ATTACHES. (a) The lien
attaches to:
(1) a cause of action for damages arising out of accident to
which a person receives chiropractic services;
(2) a judgement of a court or the decision of a public agency
in a proceeding brought by the injured individual, or another
person entitled to bring the suit, arising from an injury for
which the injured party receives services; and
(3) the proceeds of a settlement of a cause of action or a
claim arising from the injury.
(b) The lien does not attach to:
(1) a claim under work's compensation law (Subtitle A, Title
5, Labor Code), the federal Employers' Liability Act (45
U.S.C. Section 51 et seq.), or federal Longshore or Harbor
Worker's Compensation Act (33 U.S.C. Section 901 et seq.); or
(2) the proceeds of an insurance policy in favor of the
injured party, their beneficiary or their legal
representative, except public liability insurance.
Sect. 62.004. AMOUNT OF LIEN. Defines lien amount as:
(a) the amount of the chiropractor's charges for services
provided to the injured individual for the treatment of injuries.
(b) A lien does not cover charges for services that exceed a
reasonable and regular rate for the services.
Sect. 62.005. SECURING LIEN. (a) To secure lien, a
chiropractor must:
(1) file written notice with county clerk; and
(2) send by registered mail, return receipt requested, a
written notice to each insurer that may have liability.
(b) Notice must be given:
(1) no later than third business day after services are
rendered; and
(2) before money is paid to an entitled person because of
injury.
(c) Notice must include:
(1) party's name and address;
(2) date of accident;
(3) name and address of practitioner; and
(4) name of person alleged to be liable, if known.
(d) The county clerk shall:
(1) record name in injured party, the date of the accident and
the name and address of the chiropractor; and
(2) index the record in the name of injured individual.
Sect. 62.006 DISCHARGE OF LIEN. (a) To discharge the lien, the
practitioner must file with the county a certificate stating the
debt covered has been paid or released.
(b) The county clerk shall record certificate and date filed.
(c) The filing of the certificate and recording discharge the
lien.
Sect. 62.007 VALIDITY OF RELEASE. (a) A lien is not valid
unless:
(1) chiropractor was paid in full;
(2) the chiropractor's charges were paid before the execution
and delivery of the release to the extent of any full and true
consideration paid to the injured individual by or on behalf
of the other parties to the release; or
(3) the chiropractor is party to the release.
Sect. 62.008 CHIROPRACTOR'S RECORDS. (a) On request of an
attorney for a party by, for, or against whom a claim is asserted
from an injury, a chiropractor shall as promptly as possible make
available for attorney's examination its records concerning the
services provided.
(b) The chiropractor may issue reasonable rules for granting
access to its records but may not deny access.
(c) The records are admissible, subject to applicable rules of
evidence.
Sect. 62.009. ATTORNEY'S FEES. A chiropractor shall pay an
injured party's attorney a fee not to exceed 33.3 percent of the
amount collected from the person against whom a lien is asserted.
SECTION 2. Effective date. September 1, 1995. Applies only to
services rendered by a chiropractor on or after the effective date
of this Act.
SECTION 3. Emergency clause.
COMPARISON TO THE ORIGINAL
C.S.H.B. 2420 limits the lien to only chiropractors, whereas the
original covered all health care practitioners. Sec. 62.004 of the
substitute clarifies that the amount of lien applies to services
provided in treatment of an injury resulting from an accident.
Sec. 62.005 of the substitute requires that to secure a lien a
chiropractor must send a written notice via registered or certified
mail, return receipt requested, a no later than the third business
day after the services are rendered. Sec. 62.009 is added in the
substitute.
SUMMARY OF COMMITTEE ACTION
H.B. 2420 was considered by the Civil Practices Committee in a
public hearing on April 26, 1995. The following people testified in
support of the bill: Dr. Kevin D. Kanz, representing himself, the
Texas Chiropractic Association and the Travis County Chiropractic
Society; Des Taylor, representing the Texas Chiropractic
Association; and Paul Q. Breazeale, D.C., representing himself and
the Texas Chiropractic Association, District 8. No one testified in
opposition to or neutrally on the bill. The committee considered a
complete substitute for the bill. One amendment was offered to the
substitute, which was adopted without objection. The chair directed
the staff to incorporate the amendment into the substitute. The
bill was left pending. The bill was considered by the committee in
a formal meeting on April 27, 1995. The bill was reported
favorably, as substituted, with the recommendation that it do pass
be printed, by a record vote of seven ayes, zero nays, zero pnv and
two absent. The committee held a formal meeting on May 1, to
reconsider H.B. 2420. The motion to reconsider the vote to report
H.B. 2420 was approved without objection. The bill was reported
favorably, as substituted, 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 seven ayes, zero nays, zero pnv, and
two absent.