74R12054 E By Alvarado H.B. No. 2420 Substitute the following for H.B. No. 2420: By Hunter of Nueces C.S.H.B. No. 2420 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to creating a lien for certain services rendered by a 1-3 chiropractor. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subtitle B, Title 5, Property Code, is amended by 1-6 adding Chapter 62 to read as follows: 1-7 CHAPTER 62. CHIROPRACTOR'S LIEN 1-8 Sec. 62.001. DEFINITION. In this chapter, "chiropractor" 1-9 means an individual who is licensed by the Texas Board of 1-10 Chiropractic Examiners. 1-11 Sec. 62.002. LIEN. A chiropractor has a lien on a cause of 1-12 action or claim of an individual who receives chiropractic services 1-13 rendered by the chiropractor for injuries caused by an accident 1-14 that is attributed to the negligence of another person. 1-15 Sec. 62.003. PROPERTY TO WHICH LIEN ATTACHES. (a) The lien 1-16 attaches to: 1-17 (1) a cause of action for damages arising from an 1-18 injury for which the injured individual receives chiropractic 1-19 services; 1-20 (2) a judgment of a court in this state or the 1-21 decision of a public agency in a proceeding brought by the injured 1-22 individual, or by another person entitled to bring the suit in case 1-23 of the death of the individual, to recover damages arising from an 2-1 injury for which the injured individual receives chiropractic 2-2 services; and 2-3 (3) the proceeds of a settlement of a cause of action 2-4 or a claim by the injured individual, or another person entitled to 2-5 make the claim, arising from an injury for which the injured 2-6 individual receives chiropractic services. 2-7 (b) The lien does not attach to: 2-8 (1) a claim under the workers' compensation laws of 2-9 this state (Subtitle A, Title 5, Labor Code), the federal 2-10 Employers' Liability Act (45 U.S.C. Section 51 et seq.), or the 2-11 federal Longshore and Harbor Workers' Compensation Act (33 U.S.C. 2-12 Section 901 et seq.); or 2-13 (2) the proceeds of an insurance policy in favor of 2-14 the injured individual or the injured individual's beneficiary or 2-15 legal representative, except public liability insurance carried by 2-16 the insured that protects the insured against loss caused by an 2-17 accident or collision. 2-18 Sec. 62.004. AMOUNT OF LIEN. (a) Except as provided by 2-19 Subsection (b), the lien is for the amount of the chiropractor's 2-20 charges for services provided to the injured individual for the 2-21 treatment of injuries that resulted from the accident. 2-22 (b) A lien does not cover charges for services that exceed a 2-23 reasonable and regular rate for the services. 2-24 Sec. 62.005. SECURING LIEN. (a) To secure the lien, a 2-25 chiropractor must: 3-1 (1) file written notice of the lien with the county 3-2 clerk of the county in which the injury occurred; and 3-3 (2) send by registered or certified mail, return 3-4 receipt requested, a written notice to each insurer that may have 3-5 liability arising out of the accident. 3-6 (b) The notice must be given as provided by Subsection (a): 3-7 (1) not later than the third business day after the 3-8 date the services are rendered; and 3-9 (2) before money is paid to an entitled person because 3-10 of the injury. 3-11 (c) The notice must contain: 3-12 (1) the injured individual's name and address; 3-13 (2) the date of the accident; 3-14 (3) the name and address of the chiropractor; and 3-15 (4) the name of the person alleged to be liable for 3-16 damages arising from the injury, if known. 3-17 (d) The county clerk shall: 3-18 (1) record the name of the injured individual, the 3-19 date of the accident, and the name and address of the chiropractor; 3-20 and 3-21 (2) index the record in the name of the injured 3-22 individual. 3-23 Sec. 62.006. DISCHARGE OF LIEN. (a) To discharge the lien, 3-24 the chiropractor must execute and file with the county clerk of the 3-25 county in which the lien notice was filed a certificate stating 4-1 that the debt covered by the lien has been paid or released and 4-2 authorizing the clerk to discharge the lien. 4-3 (b) The county clerk shall record a memorandum of the 4-4 certificate and the date it was filed. 4-5 (c) The filing of the certificate and recording of the 4-6 memorandum discharge the lien. 4-7 Sec. 62.007. VALIDITY OF RELEASE. (a) A release of a cause 4-8 of action or judgment to which the lien may attach is not valid 4-9 unless: 4-10 (1) the chiropractor's charges were paid in full 4-11 before the execution and delivery of the release; 4-12 (2) the chiropractor's charges were paid before the 4-13 execution and delivery of the release to the extent of any full and 4-14 true consideration paid to the injured individual by or on behalf 4-15 of the other parties to the release; or 4-16 (3) the chiropractor is a party to the release. 4-17 (b) A judgment to which the lien attaches remains in effect 4-18 until the chiropractor's charges are paid in full or to the extent 4-19 set out in the judgment. 4-20 Sec. 62.008. CHIROPRACTOR'S RECORDS. (a) On request by an 4-21 attorney for a party by, for, or against whom a claim is asserted 4-22 for damages arising from an injury, a chiropractor shall as 4-23 promptly as possible make available for the attorney's examination 4-24 the chiropractor's records concerning the services provided to the 4-25 injured individual. 5-1 (b) The chiropractor may impose reasonable requirements for 5-2 granting access to the chiropractor's records under this section, 5-3 but the chiropractor may not deny access because a record is 5-4 incomplete. 5-5 (c) The records are admissible, subject to applicable rules 5-6 of evidence, in a civil suit arising from the injury. 5-7 Sec. 62.009. ATTORNEY'S FEES. If an individual who has 5-8 pursued a claim or a cause of action against which a lien is 5-9 asserted by a chiropractor is represented by an attorney, the 5-10 chiropractor shall pay a fee to the claimant's attorney in an 5-11 amount not to exceed 33.3 percent of the amount collected for the 5-12 chiropractor in satisfaction of the lien. 5-13 SECTION 2. This Act takes effect September 1, 1995, and 5-14 applies only to services rendered by a chiropractor on or after the 5-15 effective date of this Act. 5-16 SECTION 3. The importance of this legislation and the 5-17 crowded condition of the calendars in both houses create an 5-18 emergency and an imperative public necessity that the 5-19 constitutional rule requiring bills to be read on three several 5-20 days in each house be suspended, and this rule is hereby suspended.