75R11739 E By Alvarado H.B. No. 1171 Substitute the following for H.B. No. 1171: By Janek C.S.H.B. No. 1171 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to liens for certain services rendered by health care 1-3 practitioners. 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. HEALTH CARE PRACTITIONER'S LIEN 1-8 Sec. 62.001. DEFINITION. In this chapter, "health care 1-9 practitioner" means an individual who is licensed in this state to 1-10 provide health care. 1-11 Sec. 62.002. LIEN. A health care practitioner has a lien on 1-12 a cause of action or claim in the county of residence of an 1-13 individual who receives health care services rendered by the 1-14 practitioner for injuries caused by an accident that is attributed 1-15 to the negligence of another person. 1-16 Sec. 62.003. PROPERTY TO WHICH LIEN ATTACHES. (a) The lien 1-17 attaches to: 1-18 (1) a cause of action for damages arising from an 1-19 injury for which the injured individual receives health care 1-20 services; 1-21 (2) a judgment of a court in this state or the 1-22 decision of a public agency in a proceeding brought by the injured 1-23 individual, or by another person entitled to bring suit in case of 1-24 the death of the individual, to recover damages arising from an 2-1 injury for which the injured individual receives health care 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 health care 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 health care 2-20 practitioner's charges for services provided to the injured 2-21 individual for the treatment of injuries that resulted from the 2-22 accident. 2-23 (b) A lien does not cover charges for services that exceed a 2-24 reasonable and regular rate for the necessary services. 2-25 Sec. 62.005. SECURING LIEN. (a) To secure the lien, a 2-26 health care practitioner must: 2-27 (1) file written notice of the lien with the county 3-1 clerk of the county in which the injury occurred and, if different, 3-2 with the county clerk of the county in which the individual 3-3 resides; 3-4 (2) send by registered or certified mail, return 3-5 receipt requested, a written notice to each insurer that may have 3-6 liability arising out of the accident; 3-7 (3) send by registered or certified mail, return 3-8 receipt requested, a written notice to each individual who receives 3-9 health care services rendered by the practitioner for injuries 3-10 caused by an accident that is attributed to the negligence of 3-11 another person; and 3-12 (4) notify all parties in a timely manner of the right 3-13 of the health care practitioner to recover from the process of 3-14 settlement, or action taken by the individual who received health 3-15 care services rendered by the practitioner, for injuries caused by 3-16 an accident that is attributed to the negligence of another person, 3-17 and a failure to so notify shall forfeit such right of recovery on 3-18 the part of the health care practitioner. 3-19 (b) The notice must be given as provided by Subsection (a): 3-20 (1) not later than the third business day after the 3-21 date the services are rendered; and 3-22 (2) before money is paid to an entitled person because 3-23 of the injury. 3-24 (c) The notice must contain: 3-25 (1) the injured individual's name and address; 3-26 (2) the date of the accident; 3-27 (3) the name and address of the health care 4-1 practitioner; and 4-2 (4) if known, the name of the person alleged to be 4-3 liable for damages arising from the injury. 4-4 (d) The county clerk shall: 4-5 (1) record the name of the injured individual, the 4-6 date of the accident, and the name and address of the health care 4-7 practitioner; and 4-8 (2) index the record in the name of the injured 4-9 individual. 4-10 Sec. 62.006. DISCHARGE OF LIEN. (a) To discharge the lien, 4-11 the health care practitioner must, within two business days from 4-12 receipt of payment and copies of receiving the health care 4-13 services, execute and file with the county clerk of any county in 4-14 which such lien notice was filed a certificate stating that the 4-15 debt covered by the lien has been paid or released and authorizing 4-16 the clerk to discharge the lien. 4-17 (b) The county clerk shall record a memorandum of the 4-18 certificate and the date it was filed. 4-19 (c) The filing of the certificate and recording of the 4-20 memorandum shall discharge the lien. 4-21 Sec. 62.007. VALIDITY OF RELEASE. (a) A release of a cause 4-22 of action or judgment to which the lien may attach is not valid 4-23 unless: 4-24 (1) the health care practitioner's charges were paid 4-25 in full before the execution and delivery of the release; 4-26 (2) the health care practitioner's charges were paid 4-27 before the execution and delivery of the release to the extent of 5-1 any full and true consideration paid to the injured individual by 5-2 or on behalf of the other parties to the release; or 5-3 (3) the health care practitioner is a party to the 5-4 release. 5-5 (b) A judgment to which the lien attaches remains in effect 5-6 until the health care practitioner's charges are paid in full or to 5-7 the extent set out in the judgment. 5-8 Sec. 62.008. HEALTH CARE PRACTITIONER'S RECORDS. (a) On 5-9 request by an attorney for a party by, for, or against whom a claim 5-10 is asserted for damages arising from an injury, a health care 5-11 practitioner shall, as promptly as possible, make available for the 5-12 attorney's examination the health care practitioner's records 5-13 concerning the services provided to the injured individual. 5-14 (b) The health care practitioner may impose reasonable 5-15 requirements for granting access to the health care practitioner's 5-16 records under this section, but the health care practitioner may 5-17 not deny access because a record is incomplete. 5-18 (c) The records are admissible, subject to applicable rules 5-19 of evidence, in a civil suit arising from the injury. 5-20 Sec. 62.009. PRIORITY OF HOSPITAL LIEN OVER OTHER LIENS. A 5-21 lien filed by a health care practitioner under this chapter is 5-22 subordinate to a lien filed under Chapter 55. A health care 5-23 practitioner may not attempt to enforce a lien under this chapter 5-24 until any liens filed under Chapter 55 have been satisfied and 5-25 discharged. 5-26 SECTION 2. Chapter 55, Property Code, is amended by adding 5-27 Section 55.0045 to read as follows: 6-1 Sec. 55.0045. PHYSICIAN'S CHARGES. (a) The lien may also 6-2 include the amount of a physician's charges for services provided 6-3 to the injured individual in the hospital's emergency room during 6-4 the period described in Section 55.004(a). 6-5 (b) At the request of a physician, a hospital may act on 6-6 behalf of the physician with respect to securing and discharging 6-7 the lien. 6-8 SECTION 3. If any provision of this Act, or the application 6-9 of this Act to any person, is held to be invalid, that invalidity 6-10 does not affect other provisions or applications of this Act that 6-11 may be given effect without the invalid provision or application. 6-12 SECTION 4. This Act takes effect September 1, 1997, and 6-13 applies only to services rendered by a health care practitioner on 6-14 or after the effective date of this Act. 6-15 SECTION 5. The importance of this legislation and the 6-16 crowded condition of the calendars in both houses create an 6-17 emergency and an imperative public necessity that the 6-18 constitutional rule requiring bills to be read on three several 6-19 days in each house be suspended, and this rule is hereby suspended.