By Janek H.B. No. 609
76R153 PAM-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to liens for certain services provided 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 services.
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 provided by the health care practitioner for injuries
1-14 caused by an accident that is attributed to the negligence of
1-15 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 Subtitle A, Title 5, Labor Code, 45
2-9 U.S.C. Section 51 et seq., or 33 U.S.C. Section 901 et seq.; or
2-10 (2) the proceeds of an insurance policy in favor of
2-11 the injured individual or the injured individual's beneficiary or
2-12 legal representative, except public liability insurance carried by
2-13 the insured that protects the insured against loss caused by an
2-14 accident or collision.
2-15 Sec. 62.004. AMOUNT OF LIEN. The lien is for the amount of
2-16 the health care practitioner's reasonable charges for necessary
2-17 services provided to the injured individual for the treatment of
2-18 injuries that resulted from the accident.
2-19 Sec. 62.005. SECURING LIEN. (a) To secure the lien, a
2-20 health care practitioner must:
2-21 (1) file written notice of the lien with the county
2-22 clerk of the county in which the injury occurred and with the
2-23 county clerk of the county in which the individual resides; and
2-24 (2) send by registered or certified mail, return
2-25 receipt requested, a written notice to:
2-26 (A) each insurer that may have liability arising
2-27 out of the accident; and
3-1 (B) each individual who receives health care
3-2 services provided by the health care practitioner for injuries
3-3 caused by an accident that is attributed to the negligence of
3-4 another person.
3-5 (b) The notices required under Subsection (a) must be
3-6 given:
3-7 (1) before the fourth business day after the date the
3-8 services are provided; and
3-9 (2) before the date money is paid to a person entitled
3-10 to recover because of the injury.
3-11 (c) The notices required under Subsection (a) must contain:
3-12 (1) the injured individual's name and address;
3-13 (2) the date of the accident;
3-14 (3) the name and address of the health care
3-15 practitioner; and
3-16 (4) if known, the name of the person alleged to be
3-17 liable for damages arising from the injury.
3-18 (d) The notices required under Subsection (a)(2) must
3-19 include a statement informing each party of the health care
3-20 practitioner's right to recover from the proceeds of a cause of
3-21 action or claim awarded to the individual who received health care
3-22 services provided by the health care practitioner for injuries
3-23 caused by an accident that is attributed to the negligence of
3-24 another person. A health care practitioner who fails to provide
3-25 the statement required by this subsection forfeits the right to
3-26 recover under this chapter.
3-27 (e) A county clerk who receives a notice of the lien under
4-1 Subsection (a)(1) shall:
4-2 (1) record the name of the injured individual, the
4-3 date of the accident, and the name and address of the health care
4-4 practitioner; and
4-5 (2) index the record in the name of the injured
4-6 individual.
4-7 Sec. 62.006. DISCHARGE OF LIEN. (a) To discharge the lien,
4-8 the health care practitioner must execute and file with the county
4-9 clerk of each county in which the lien notice was filed a
4-10 certificate stating that the debt covered by the lien has been paid
4-11 or released and authorizing the clerk to discharge the lien. The
4-12 certificate must be filed before the third business day after the
4-13 date the health care practitioner receives payment for the health
4-14 care services.
4-15 (b) The county clerk shall record a memorandum of the
4-16 certificate and the date it was filed.
4-17 (c) The filing of the certificate and recording of the
4-18 memorandum shall discharge the lien.
4-19 Sec. 62.007. VALIDITY OF RELEASE. (a) A release of a cause
4-20 of action or judgment to which the lien may attach is not valid
4-21 unless:
4-22 (1) the health care practitioner's charges were paid
4-23 in full before the execution and delivery of the release;
4-24 (2) the health care practitioner's charges were paid
4-25 before the execution and delivery of the release to the extent of
4-26 any full and true consideration paid to the injured individual by
4-27 or on behalf of the other parties to the release; or
5-1 (3) the health care practitioner is a party to the
5-2 release.
5-3 (b) A judgment to which the lien attaches remains in effect
5-4 until the health care practitioner's charges are paid in full or to
5-5 the extent set out in the judgment.
5-6 Sec. 62.008. HEALTH CARE PRACTITIONER'S RECORDS. (a) On
5-7 request by an attorney for a party by, for, or against whom a claim
5-8 is asserted for damages arising from an injury, a health care
5-9 practitioner shall, as promptly as possible, make available for the
5-10 attorney's examination the health care practitioner's records
5-11 concerning the health care services provided to the injured
5-12 individual.
5-13 (b) The health care practitioner may impose reasonable
5-14 requirements for granting access to the health care practitioner's
5-15 records under this section, but the health care practitioner may
5-16 not deny access because a record is incomplete.
5-17 (c) The records are admissible, subject to applicable rules
5-18 of evidence, in a civil suit arising from the injury.
5-19 Sec. 62.009. PRIORITY OF HOSPITAL LIEN OVER OTHER LIENS. A
5-20 lien filed by a health care practitioner under this chapter is
5-21 subordinate to a hospital lien filed under Chapter 55.
5-22 SECTION 2. Section 55.004, Property Code, is amended to read
5-23 as follows:
5-24 Sec. 55.004. AMOUNT OF LIEN. (a) The lien is for the
5-25 amount of the hospital's charges for services provided to the
5-26 injured individual during the first 100 days of the injured
5-27 individual's hospitalization.
6-1 (b) The lien may also include the amount of a physician's
6-2 charges for services provided to the injured individual in the
6-3 hospital's emergency room during the first 100 days of the injured
6-4 individual's hospitalization. At the request of the physician, the
6-5 hospital may act on behalf of the physician with respect to
6-6 securing and discharging the lien.
6-7 (c) The [, except that the] lien does not cover:
6-8 (1) charges for operating costs that exceed the cost
6-9 limits established under Section 405.460, 42 Code of Federal
6-10 Regulations; or
6-11 (2) charges for other services that exceed a
6-12 reasonable and regular rate for the services.
6-13 (d) [(b)] The lien is not affected by a hospital's use of a
6-14 method of classifying patients according to their ability to pay
6-15 that is solely intended to obtain a lien for services provided to
6-16 an indigent injured individual.
6-17 SECTION 3. (a) This Act takes effect September 1, 1999.
6-18 (b) The changes in law made by this Act apply only to health
6-19 care services provided by a health care practitioner on or after
6-20 the effective date of this Act. Health care services provided by a
6-21 health care practitioner before the effective date of this Act are
6-22 covered by the law in effect at the time the services were
6-23 provided, and the former law is continued in effect for that
6-24 purpose.
6-25 SECTION 4. The importance of this legislation and the
6-26 crowded condition of the calendars in both houses create an
6-27 emergency and an imperative public necessity that the
7-1 constitutional rule requiring bills to be read on three several
7-2 days in each house be suspended, and this rule is hereby suspended.