By Harris                                        S.B. No. 202

      75R2540 DLF-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to health care services liens on certain recoveries in

 1-3     civil actions.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Chapter 55, Property Code, is amended to read as

 1-6     follows:

 1-7              CHAPTER 55.  HEALTH CARE SERVICES [HOSPITAL] LIEN

 1-8           Sec. 55.001.  DEFINITIONS.  In this chapter:

 1-9                 (1)  "Health care provider" means any individual or

1-10     facility licensed, certified, or otherwise authorized to administer

1-11     health care, for profit or otherwise, in the ordinary course of

1-12     business or professional practice.  The term includes a physician.

1-13     ["Hospital" means a person or institution maintaining a facility

1-14     that provides hospital services in this state.]

1-15                 (2)  "Person" does not include a county, common, or

1-16     independent school district.

1-17           Sec. 55.002.  LIEN.  (a)  A health care provider [hospital]

1-18     has a lien on a cause of action or claim of an individual who

1-19     receives health  care [hospital] services for injuries caused by an

1-20     accident that is attributed to the negligence of another person.

1-21     [For the lien to attach, the individual must be admitted to a

1-22     hospital not later than 72 hours after the accident.]

1-23           (b)  The lien extends to both the health care provider who

1-24     initially provides treatment to the individual and another health

 2-1     care provider  [admitting hospital and a hospital] to which the

 2-2     individual is transferred or referred for treatment of the same

 2-3     injury.

 2-4           Sec. 55.003.  PROPERTY TO WHICH LIEN ATTACHES.  (a)  The lien

 2-5     attaches to:

 2-6                 (1)  a cause of action for damages arising from an

 2-7     injury for which the injured individual receives the services of

 2-8     the health care provider [is admitted to the hospital];

 2-9                 (2)  a judgment of a court in this state or the

2-10     decision of a public agency in a proceeding brought by the injured

2-11     individual or by another person entitled to bring the suit in case

2-12     of the death of the individual to recover damages arising from an

2-13     injury for which the injured individual receives the services of

2-14     the health care provider [is admitted to the hospital]; and

2-15                 (3)  the proceeds of a settlement of a cause of action

2-16     or a claim by the injured individual or another person entitled to

2-17     make the claim, arising from an injury for which the injured

2-18     individual receives the services of the health care provider [is

2-19     admitted to the  hospital].

2-20           (b)  The lien does not attach to:

2-21                 (1)  a claim under:

2-22                       (A)  Title 5, Labor Code;

2-23                       (B)  [the workers' compensation law of this

2-24     state,] the Federal Employers' [Employees] Liability Act (45 U.S.C.

2-25     Section 51 et seq.); [,] or

2-26                       (C)  the Longshore and [Federal Longshoremen's

2-27     or] Harbor Workers' Compensation Act (33 U.S.C. Section 901 et

 3-1     seq.);

 3-2                 (2)  a claim against the owner or operator of a

 3-3     railroad company that maintains or whose employees maintain a

 3-4     hospital in which the injured individual is receiving hospital

 3-5     services; or

 3-6                 (3)  the proceeds of an insurance policy in favor of

 3-7     the injured individual or the injured individual's beneficiary or

 3-8     legal representative, except public liability insurance carried by

 3-9     the insured that protects the insured against loss caused by an

3-10     accident or collision.

3-11           Sec. 55.004.  AMOUNT OF LIEN.  (a)  The lien is for the

3-12     amount of the health care provider's [hospital's] charges for

3-13     services provided to the injured individual during the first 100

3-14     days that health  care services are provided to [of] the injured

3-15     individual [individual's hospitalization], except that the lien

3-16     does not cover:

3-17                 (1)  hospital charges for operating costs that exceed

3-18     the cost limits established under Section 413.30 [405.460], 42 Code

3-19     of  Federal Regulations; or

3-20                 (2)  charges for other services that exceed a

3-21     reasonable and regular rate for the services.

3-22           (b)  The lien is not affected by a health care provider's

3-23     [hospital's] use of a method of classifying patients according to

3-24     their ability to pay that is solely intended to obtain a lien for

3-25     services provided to an indigent injured individual.

3-26           Sec. 55.005.  SECURING LIEN.  (a)  To secure the lien, a

3-27     health care provider [hospital] must file written notice of the

 4-1     lien with the county  clerk of the county in which the [hospital]

 4-2     services were provided.  The notice must be filed before money is

 4-3     paid to an entitled person because of the injury.

 4-4           (b)  The notice must contain:

 4-5                 (1)  the injured individual's name and address;

 4-6                 (2)  the date of the accident;

 4-7                 (3)  the name and address of the health care provider

 4-8     [location of the hospital]; [and]

 4-9                 (4)  the name of the person alleged to be liable for

4-10     damages arising from the injury, if known; and

4-11                 (5)  the affidavit described by Subsection (c), if

4-12     required.

4-13           (c)  If the health care provider did not provide services to

4-14     the injured individual before the end of the 72nd hour after the

4-15     accident described in the notice, the health care provider must

4-16     attach to the notice an affidavit stating that the health care

4-17     provider believes, in good faith, that the services provided to the

4-18     injured individual were for injuries caused by the accident.  The

4-19     affidavit must be signed by the health care provider if the  health

4-20     care provider is an individual or the person in charge of the

4-21     finances of the health care provider if the health care provider is

4-22     not an individual.

4-23           (d)  The county clerk shall record the name of the injured

4-24     individual, the date of the accident, and the name and address of

4-25     the health care provider [hospital] and shall index the record in

4-26     the name of the injured individual.

4-27           Sec. 55.006.  DISCHARGE OF LIEN.  (a)  To discharge the lien,

 5-1     the health care provider, if the health care provider is an

 5-2     individual, or [hospital authorities or] the person in charge of

 5-3     the finances of  the health care provider, if the health care

 5-4     provider is not an individual, [hospital] must execute and file

 5-5     with the county clerk of the  county in which the lien notice was

 5-6     filed a certificate stating that the debt covered by the lien has

 5-7     been paid or released and authorizing the clerk to discharge the

 5-8     lien.

 5-9           (b)  The county clerk shall record a memorandum of the

5-10     certificate and the date it was filed.

5-11           (c)  The filing of the certificate and recording of the

5-12     memorandum discharge the lien.

5-13           Sec. 55.007.  VALIDITY OF RELEASE.  (a)  A release of a cause

5-14     of action or judgment to which the lien may attach is not valid

5-15     unless:

5-16                 (1)  the health care provider's [hospital's] charges

5-17     were paid in full before the execution and delivery of the release;

5-18                 (2)  the health care provider's [hospital's] charges

5-19     were paid before the execution and delivery of the release to the

5-20     extent of any full and true consideration paid to the injured

5-21     individual by or on behalf of the other parties to the release; or

5-22                 (3)  the health care provider [hospital] is a party to

5-23     the release.

5-24           (b)  A judgment to which the lien has attached remains in

5-25     effect until the health care provider's [hospital's] charges are

5-26     paid in full or to the extent set out in the judgment.

5-27           Sec. 55.008.  [HOSPITAL] RECORDS.  (a)  On request by an

 6-1     attorney for a party by, for, or against whom a claim is asserted

 6-2     for damages arising from an injury, a health care provider

 6-3     [hospital] shall as promptly as possible make available for the

 6-4     attorney's examination its records concerning the services provided

 6-5     to the injured individual.

 6-6           (b)  The health care provider [hospital] may issue reasonable

 6-7     rules for granting access to its records under this section, but it

 6-8     may not  deny access because a record is incomplete.

 6-9           (c)  The records are admissible, subject to applicable rules

6-10     of evidence, in a civil suit arising from the injury.

6-11           SECTION 2.  This Act takes effect September 1, 1997.

6-12           SECTION 3.  The change in law made by this Act applies only

6-13     to  health care services rendered on or after the effective date of

6-14     this Act.  Health care services rendered before the effective date

6-15     of this Act are governed by the law as it existed immediately

6-16     before the effective date of this Act, and that law is continued in

6-17     effect for this purpose.

6-18           SECTION 4.  The importance of this legislation and the

6-19     crowded condition of the calendars in both houses create an

6-20     emergency and an imperative public necessity that the

6-21     constitutional rule requiring bills to be read on three several

6-22     days in each house be suspended, and this rule is hereby suspended.