By Ogden                                               S.B. No. 913
         77R4046 AJA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a lien on a cause of action or claim of an individual
 1-3     who receives certain medical services.
 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.  HOSPITAL AND EMERGENCY MEDICAL SERVICES LIENS [LIEN]
 1-8           Sec. 55.001.  DEFINITIONS. In this chapter:
 1-9                 (1)  "Emergency medical services" has the meaning
1-10     assigned by Section 773.003, Health and Safety Code.
1-11                 (2)  "Emergency medical services provider" has the
1-12     meaning assigned by Section 773.003, Health and Safety Code.
1-13                 (3)  "Hospital" means a person or institution
1-14     maintaining a facility that provides hospital services in this
1-15     state.
1-16                 (4) [(2)]  "Person" does not include a county, common,
1-17     or independent school district.
1-18           Sec. 55.002.  LIEN. (a)  A hospital has a lien on a cause of
1-19     action or claim of an individual who receives hospital services for
1-20     injuries caused by an accident that is attributed to the negligence
1-21     of another person.  For the lien to attach, the individual must be
1-22     admitted to a hospital not later than 72 hours after the accident.
1-23           [(b)]  The lien extends to both the admitting hospital and a
1-24     hospital to which the individual is transferred for treatment of
 2-1     the same injury.
 2-2           (b)  An emergency medical services provider has a lien on a
 2-3     cause of action or claim of an individual who receives emergency
 2-4     medical services for injuries caused by an accident that is
 2-5     attributed to the negligence of another person.  For the lien to
 2-6     attach, the individual must receive the emergency medical services
 2-7     not later than 72 hours after the accident.
 2-8           Sec. 55.003.  PROPERTY TO WHICH LIEN ATTACHES. (a)  A [The]
 2-9     lien under this chapter attaches to:
2-10                 (1)  a cause of action for damages arising from an
2-11     injury for which the injured individual is admitted to the hospital
2-12     or receives emergency medical services;
2-13                 (2)  a judgment of a court in this state or the
2-14     decision of a public agency in a proceeding brought by the injured
2-15     individual or by another person entitled to bring the suit in case
2-16     of the death of the individual to recover damages arising from an
2-17     injury for which the injured individual is admitted to the hospital
2-18     or receives emergency medical services; and
2-19                 (3)  the proceeds of a settlement of a cause of action
2-20     or a claim by the injured individual or another person entitled to
2-21     make the claim, arising from an injury for which the injured
2-22     individual is admitted to the hospital or receives emergency
2-23     medical services.
2-24           (b)  The lien does not attach to:
2-25                 (1)  a claim under the workers' compensation law of
2-26     this state, the Federal Employees Liability Act, or the Federal
2-27     Longshore and [Longshoremen's or] Harbor Workers' Compensation Act;
 3-1     or
 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           (c)  A hospital lien described by Section 55.002(a) does not
3-12     attach to a claim against the owner or operator of a railroad
3-13     company that maintains or whose employees maintain a hospital in
3-14     which the injured individual is receiving hospital services.
3-15           Sec. 55.004.  AMOUNT OF LIEN. (a)  A hospital [The] lien
3-16     described by Section 55.002(a) is for the amount of the hospital's
3-17     charges for services provided to the injured individual during the
3-18     first 100 days of the injured individual's hospitalization, except
3-19     that the lien does not cover:
3-20                 (1)  charges for operating costs that exceed the cost
3-21     limits established under Section 405.460, 42 Code of Federal
3-22     Regulations; or
3-23                 (2)  charges for other services that exceed a
3-24     reasonable and regular rate for the services.
3-25           (b)  An emergency medical services lien described by Section
3-26     55.002(b) is for the amount charged by the emergency medical
3-27     services provider for emergency medical services provided to the
 4-1     injured individual during the 72 hours following the accident that
 4-2     caused the individual's injuries, except that the lien does not
 4-3     cover charges for services that exceed a reasonable and regular
 4-4     rate for the services.
 4-5           (c)  A hospital [The] lien described by Section 55.002(a) is
 4-6     not affected by a hospital's use of a method of classifying
 4-7     patients according to their ability to pay that is solely intended
 4-8     to obtain a lien for services provided to an indigent injured
 4-9     individual.
4-10           Sec. 55.005.  SECURING LIEN. (a)  To secure the lien, a
4-11     hospital or emergency medical services provider must file written
4-12     notice of the lien with the county clerk of the county in which the
4-13     [hospital] services were provided.  The notice must be filed before
4-14     money is paid to an entitled person because of the injury.
4-15           (b)  The notice must contain:
4-16                 (1)  the injured individual's name and address;
4-17                 (2)  the date of the accident;
4-18                 (3)  the name and location of the hospital or emergency
4-19     medical services provider claiming the lien; and
4-20                 (4)  the name of the person alleged to be liable for
4-21     damages arising from the injury, if known.
4-22           (c)  The county clerk shall record the name of the injured
4-23     individual, the date of the accident, and the name and address of
4-24     the hospital or emergency medical services provider and shall index
4-25     the record in the name of the injured individual.
4-26           Sec. 55.006.  DISCHARGE OF LIEN. (a)  To discharge a [the]
4-27     lien under this chapter, the [hospital] authorities of the hospital
 5-1     or emergency medical services provider claiming the lien or the
 5-2     person in charge of the finances of the hospital or emergency
 5-3     medical services provider must execute and file with the county
 5-4     clerk of the county in which the lien notice was filed a
 5-5     certificate stating that the debt covered by the lien has been paid
 5-6     or released and authorizing the clerk to discharge the lien.
 5-7           (b)  The county clerk shall record a memorandum of the
 5-8     certificate and the date it was filed.
 5-9           (c)  The filing of the certificate and recording of the
5-10     memorandum discharge the lien.
5-11           Sec. 55.007.  VALIDITY OF RELEASE. (a)  A release of a cause
5-12     of action or judgment to which a [the] lien under this chapter may
5-13     attach is not valid unless:
5-14                 (1)  the [hospital's] charges of the hospital or
5-15     emergency medical services provider claiming the lien were paid in
5-16     full before the execution and delivery of the release;
5-17                 (2)  the [hospital's] charges of the hospital or
5-18     emergency medical services provider claiming the lien were paid
5-19     before the execution and delivery of the release to the extent of
5-20     any full and true consideration paid to the injured individual by
5-21     or on behalf of the other parties to the release; or
5-22                 (3)  the hospital or emergency medical services
5-23     provider claiming the lien is a party to the release.
5-24           (b)  A judgment to which a [the] lien under this chapter has
5-25     attached remains in effect until the [hospital's] charges of the
5-26     hospital or emergency medical services provider claiming the lien
5-27     are paid in full or to the extent set out in the judgment.
 6-1           Sec. 55.008.  [HOSPITAL] RECORDS. (a)  On request by an
 6-2     attorney for a party by, for, or against whom a claim is asserted
 6-3     for damages arising from an injury, a hospital or emergency medical
 6-4     services provider shall as promptly as possible make available for
 6-5     the attorney's examination its records concerning the services
 6-6     provided to the injured individual.
 6-7           (b)  The hospital or emergency medical services provider may
 6-8     issue reasonable rules for granting access to its records under
 6-9     this section, but it may not deny access because a record is
6-10     incomplete.
6-11           (c)  The records are admissible, subject to applicable rules
6-12     of evidence, in a civil suit arising from the injury.
6-13           SECTION 2. (a)  This Act takes effect September 1, 2001.
6-14           (b)  The change in law made by this Act applies only to
6-15     emergency medical services provided by an emergency medical
6-16     services provider on or after the effective date of this Act.
6-17     Emergency medical services provided by an emergency medical
6-18     services provider before the effective date of this Act are
6-19     governed by the law in effect at the time the services were
6-20     provided, and the former law is continued in effect for that
6-21     purpose.