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.