By Alvarado                                           H.B. No. 2420
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to liens of health care practitioners.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Title 5, Property Code, is amended by adding a
    1-5  new Chapter 62 to read as follows:
    1-6              CHAPTER 62.  HEALTH CARE PRACTITIONER LIEN
    1-7        Sec. 62.001.  DEFINITIONS.  In this chapter "health care
    1-8  practitioner" means an individual who is licensed in this state to
    1-9  provide health care.
   1-10        Sec. 62.002.  LIEN.  A health care practitioner has a lien on
   1-11  a cause of action or claim of an individual who receives health
   1-12  care services rendered by the practitioner for injuries caused by
   1-13  an accident that is attributed to the negligence of another person.
   1-14        Sec. 62.003.  PROPERTY TO WHICH LIEN ATTACHES.  (a)  The lien
   1-15  attaches to:
   1-16              (1)  a cause of action for damages arising from an
   1-17  injury for which the injured individual receives treatment or
   1-18  services from a health care practitioner;
   1-19              (2)  a judgment of a court in this state or the
   1-20  decision of a public agency in a proceeding brought by the injured
   1-21  individual or by another person entitled to bring the suit in case
   1-22  of the death of the individual to recover damages arising from an
   1-23  injury for which the injured individual is treated by a health care
    2-1  practitioner; and
    2-2              (3)  the proceeds of a settlement of a cause of action
    2-3  or a claim by the injured individual or another person entitled to
    2-4  make the claim, arising from an injury for which the injured
    2-5  individual is treated by a health care practitioner.
    2-6        (b)  The lien does not attach to
    2-7              (1)  a claim under the workers' compensation law of
    2-8  this state, the Federal Employees Liability Act, or the Federal
    2-9  Longshoremen's or Harbor Worker's Compensation Act; or
   2-10              (2)  the proceeds of an insurance policy in favor of
   2-11  the injured individual or the injured individual's beneficiary or
   2-12  legal representative, except public liability insurance carried by
   2-13  the insured that protects the insured against loss caused by an
   2-14  accident or collision.
   2-15        Sec. 62.004.  AMOUNT OF LIEN.  The lien is for the amount of
   2-16  the health care practitioner's charges for services provided to the
   2-17  injured individual, except that the lien does not cover charges for
   2-18  services that exceed a reasonable and regular rate for the
   2-19  services.
   2-20        Sec. 62.005.  SECURING LIEN.  (a)  To secure the lien, a
   2-21  health care practitioner must file written notice of the lien with
   2-22  the county clerk of the county in which the injury occurred and
   2-23  with the insurer which may have liability arising out of an
   2-24  accident defined in Section 62.002 hereof.  The notice must be
   2-25  filed before money is paid to an entitled health care practitioner.
    3-1        (b)  The notice must contain:
    3-2              (1)  the injured individual's name and address;
    3-3              (2)  The date of the accident;
    3-4              (3)  the name and address of the health care
    3-5  practitioner; and
    3-6              (4)  the name of the person alleged to be liable for
    3-7  damages arising from the injury if known.
    3-8        (c)  The county clerk shall record the name of the injured
    3-9  individual, the date of the accident, and the name and address of
   3-10  the health care practitioner and shall index the record in the name
   3-11  of the injured individual.
   3-12        (d)  The notice to the insurer shall be in the same form as
   3-13  required in subsection (b) of this section and sent registered or
   3-14  certified mail, return receipt requested.
   3-15        Sec. 62.006.  DISCHARGE OF LIEN.  (a)  To discharge the lien,
   3-16  the health care practitioner must execute and file with the county
   3-17  clerk of the county in which the lien notice was filed a
   3-18  certificate stating that the debt covered by the lien has been paid
   3-19  or released and authorizing the clerk to discharge the lien.
   3-20        (b)  The county clerk shall record a memorandum of the
   3-21  certificate and the date it was filed.
   3-22        (c)  The filing of the certificate and recording of the
   3-23  memorandum discharge the lien.
   3-24        Sec. 62.007.  VALIDITY OF RELEASE.  (a)  A release of a cause
   3-25  of action or judgment to which the lien may attach is not valid
    4-1  unless:
    4-2              (1)  the health care practitioner's charges were paid
    4-3  in full before the execution and delivery of the release;
    4-4              (2)  the health care practitioner's charges were paid
    4-5  before the execution and delivery of the release to the extent of
    4-6  any full and true consideration paid to the injured individual by
    4-7  or on behalf of the other parties to the release; or
    4-8              (3)  the health care practitioner is a party to the
    4-9  release.
   4-10        (b)  A judgment to which the lien has attached remains in
   4-11  effect until the health care practitioner's charges are paid in
   4-12  full or to the extent set out in the judgment.
   4-13        Sec. 62.008.  HEALTH CARE PRACTITIONER RECORDS.  (a)  On
   4-14  request by an attorney for a party by, for, or against whom a claim
   4-15  is asserted for damages arising from an injury, a health care
   4-16  practitioner shall as promptly as possible make available for the
   4-17  attorney's examination its records concerning the services provided
   4-18  to the injured individual.
   4-19        (b)  The health care practitioner may issue reasonable rules
   4-20  for granting access to its records under this section, but the
   4-21  health care practitioner may not deny access because a record is
   4-22  incomplete.
   4-23        (c)  The records are admissible, subject to applicable rules
   4-24  of evidence, in a civil suit arising from the injury.
   4-25        SECTION 2.  This Act takes effect September 1, 1995.
    5-1        SECTION 3.  The importance of this legislation and the
    5-2  crowded condition of the calendars in both houses create an
    5-3  emergency and an imperative public necessity that the
    5-4  constitutional rule requiring bills to be read on three several
    5-5  days in each house be suspended, and this rule is hereby suspended,
    5-6  and that this Act take effect and be in force from and after its
    5-7  passage, and it is so enacted.