Bill not drafted by TLC or Senate E&E.
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By Alvarado H.B. No. 1171
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to creating a lien for certain services rendered by a
1-3 health care practitioner.
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 of an individual who receives health
1-13 care services rendered by the practitioner for injuries caused by
1-14 an accident 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 health care
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
1-24 injury for which the injured individual receives health care
2-1 services; 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 receives health care services.
2-6 (b) The lien does not attach to:
2-7 (1) a claim under the workers' compensation laws of
2-8 this state (Subtitle A, Title 5, Labor Code), the federal
2-9 Employers' Liability Act (45 U.S.C. Section 51 et seq.), or the
2-10 federal Longshore and Harbor Workers' Compensation Act (33 U.S.C.
2-11 Section 901 et seq.); or
2-12 (2) the proceeds of an insurance policy in favor of
2-13 the injured individual or the injured individual's beneficiary or
2-14 legal representative, except public liability insurance carried by
2-15 the insured that protects the insured against loss caused by an
2-16 accident or collision.
2-17 Sec. 62.004. AMOUNT OF LIEN. (a) Except as provided by
2-18 Subsection (b), the lien is for the amount of the health care
2-19 practitioner's charges for services provided to the injured
2-20 individual for the treatment of injuries that resulted from the
2-21 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 health care practitioner must:
2-26 (1) file written notice of the lien with the county
2-27 clerk of the county in which the injury occurred; and
2-28 (2) send by registered or certified mail, return
2-29 receipt requested, a written notice to each insurer that may have
2-30 liability arising out of the accident.
3-1 (b) The notice must be given as provided by Subsection (a):
3-2 (1) not later than the third business day after the
3-3 date the services are rendered; and
3-4 (2) before money is paid to an entitled person because
3-5 of the injury.
3-6 (c) The notice must contain:
3-7 (1) the injured individual's name and address;
3-8 (2) the date of the accident;
3-9 (3) the name and address of the health care
3-10 practitioner; and
3-11 (4) the name of the person alleged to be liable for
3-12 damages arising from the injury, if known.
3-13 (d) The county clerk shall:
3-14 (1) record the name of the injured individual, the
3-15 date of the accident, and the name and address of the health care
3-16 practitioner; and
3-17 (2) index the record in the name of the injured
3-18 individual.
3-19 Sec. 62.006. DISCHARGE OF LIEN. (a) To discharge the lien,
3-20 the health care practitioner must execute and file with the county
3-21 clerk of the county in which the lien notice was filed a
3-22 certificate stating that the debt covered by the lien has been paid
3-23 or released and authorizing the clerk to discharge the lien.
3-24 (b) The county clerk shall record a memorandum of the
3-25 certificate and the date it was filed.
3-26 (c) The filing of the certificate and recording of the
3-27 memorandum discharge the lien.
3-28 Sec. 62.007. VALIDITY OF RELEASE. (a) A release of a cause
3-29 of action or judgment to which the lien may attach is not valid
3-30 unless:
4-1 (1) the health care practitioner's charges were paid
4-2 in full before the execution and delivery of the release;
4-3 (2) the health care practitioner's charges were paid
4-4 before the execution and delivery of the release to the extent of
4-5 any full and true consideration paid to the injured individual by
4-6 or on behalf of the other parties to the release; or
4-7 (3) the health care practitioner is a party to the
4-8 release.
4-9 (b) A judgment to which the lien attaches remains in effect
4-10 until the health care practitioner's charges are paid in full or to
4-11 the extent set out in the judgment.
4-12 Sec. 62.008. HEALTH CARE PRACTITIONER'S RECORDS. (a) On
4-13 request by an attorney for a party by, for, or against whom a claim
4-14 is asserted for damages arising from an injury, a health care
4-15 practitioner shall as promptly as possible make available for the
4-16 attorney's examination the health care practitioner's records
4-17 concerning the services provided to the injured individual.
4-18 (b) The health care practitioner may impose reasonable
4-19 requirements for granting access to the health care practitioner's
4-20 records under this section, but the health care practitioner may
4-21 not deny access because a record is incomplete.
4-22 (c) The records are admissible, subject to applicable rules
4-23 of evidence, in a civil suit arising from the injury.
4-24 Sec. 62.009. ATTORNEY'S FEES. If an individual who has
4-25 pursued a claim or a cause of action against which a lien is
4-26 asserted by a health care practitioner is represented by an
4-27 attorney, the health care practitioner shall pay a fee to the
4-28 claimant's attorney in an amount not to exceed 33.3 percent of the
4-29 amount collected for the health care practitioner in satisfaction
4-30 of the lien.
5-1 SECTION 2. If any provision of this Act or the application
5-2 of this Act to any person is held to be invalid, that invalidity
5-3 does not affect other provisions or applications of this Act that
5-4 may be given effect without the invalid provision or application.
5-5 SECTION 3. This Act takes effect September 1, 1997, and
5-6 applies only to services rendered by a health care practitioner on
5-7 or after the effective date of this Act.
5-8 SECTION 4. The importance of this legislation and the
5-9 crowded condition of the calendars in both houses create an
5-10 emergency and an imperative public necessity that the
5-11 constitutional rule requiring bills to be read on three separate
5-12 days in both houses be suspended, and this rule is hereby
5-13 suspended.