By Patterson                                    S.B. No. 1671

      75R5148 DLF-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to letters of protection provided by attorneys to health

 1-3     care providers.

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

 1-5           SECTION 1.  Subchapter C, Chapter 82, Government Code, is

 1-6     amended by adding Section 82.0631 to read as follows:

 1-7           Sec. 82.0631.  LETTERS OF PROTECTION.  (a)  An attorney shall

 1-8     provide a letter of protection to a health care provider if:

 1-9                 (1)  the letter is requested or authorized by a client;

1-10                 (2)  the health care provider is providing health care

1-11     services to the client for injuries that are the basis of a claim

1-12     for damages; and

1-13                 (3)  the attorney represents the client with respect to

1-14     the claim.

1-15           (b)  The letter of protection must state that:

1-16                 (1)  the attorney represents the client with respect to

1-17     the claim; and

1-18                 (2)  the attorney agrees to:

1-19                       (A)  withhold from the portion of any settlement

1-20     or judgment payable to the client for the claim the amount due to

1-21     the health care provider for health care services provided to the

1-22     client for injuries that are the basis of the claim; and

1-23                       (B)  pay the withheld amount to the health care

1-24     provider.

 2-1           (c)  The letter of protection may be conditioned on a

 2-2     settlement or judgment that is sufficient to pay all claims of:

 2-3                 (1)  all health care providers; and

 2-4                 (2)  any other persons who have a lien or other legal

 2-5     interest applicable to a portion of the settlement or judgment.

 2-6           (d)  An attorney shall comply with the terms of a letter of

 2-7     protection provided under this section.

 2-8           (e)  An attorney who violates this section is subject to

 2-9     professional discipline for  professional  misconduct under

2-10     Subchapter  E,  Chapter  81,  and  to  suspension or disbarment for

2-11     dishonorable conduct under Section 82.062.

2-12           (f)  In this section, "health care provider"  means a person

2-13     who is licensed, certified, or otherwise authorized to administer

2-14     health care, for profit or otherwise, in the ordinary course of

2-15     business or professional practice. The term includes a physician.

2-16           SECTION 2.  This Act takes effect September 1, 1997.

2-17           SECTION 3.  The importance of this legislation and the

2-18     crowded condition of the calendars in both houses create an

2-19     emergency and an imperative public necessity that the

2-20     constitutional rule requiring bills to be read on three several

2-21     days in each house be suspended, and this rule is hereby suspended.