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.