By:  Ellis                                                        H.B. No. 180



A BILL TO BE ENTITLED

AN ACT

relating to a lien on a cause of action or claim of an individual who 
receives certain medical services.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 55, Property Code, is amended to read as 
follows:        

CHAPTER 55.  HOSPITAL AND EMERGENCY MEDICAL SERVICES LIENS [LIEN]
	Sec. 55.001.  DEFINITIONS.  In this chapter:                                   
		(1)  "Emergency medical services" has the meaning 
assigned by Section 773.003, Health and Safety Code.
		(2)  "Emergency medical services provider" has the 
meaning assigned by Section 773.003, Health and Safety Code.
		(3)  "Hospital" means a person or institution 
maintaining a facility that provides hospital services in this 
state.
		(4) [(2)]  "Person" does not include a county, common, 
or independent school district.
	Sec. 55.002.  LIEN.  (a)  A hospital has a lien on a cause of 
action or claim of an individual who receives hospital services for 
injuries caused by an accident that is attributed to the negligence 
of another person.  For the lien to attach, the individual must be 
admitted to a hospital not later than 72 hours after the accident.
	[(b)]  The lien extends to both the admitting hospital and a 
hospital to which the individual is transferred for treatment of 
the same injury.
	(b)  An emergency medical services provider has a lien on a 
cause of action or claim of an individual who receives emergency 
medical services for injuries caused by an accident that is 
attributed to the negligence of another person.  For the lien to 
attach, the individual must receive the emergency medical services 
not later than 72 hours after the accident.
	Sec. 55.003.  PROPERTY TO WHICH LIEN ATTACHES.  (a)  A [The] 
lien under this chapter attaches to:
		(1)  a cause of action for damages arising from an 
injury for which the injured individual is admitted to the hospital 
or receives emergency medical services;
		(2)  a judgment of a court in this state or the decision 
of a public agency in a proceeding brought by the injured individual 
or by another person entitled to bring the suit in case of the death 
of the individual to recover damages arising from an injury for 
which the injured individual is admitted to the hospital or 
receives emergency medical services; and
		(3)  the proceeds of a settlement of a cause of action 
or a claim by the injured individual or another person entitled to 
make the claim, arising from an injury for which the injured 
individual is admitted to the hospital or receives emergency 
medical services.
	(b)  The lien does not attach to:                                              
		(1)  a claim under the workers' compensation law of this 
state, the Federal Employees Liability Act, or the Federal 
Longshore and [Longshoremen's or] Harbor Workers' Compensation Act; 
or
		(2)  [a claim against the owner or operator of a 
railroad company that maintains or whose employees maintain a 
hospital in which the injured individual is receiving hospital 
services; or
		[(3)]  the proceeds of an insurance policy in favor of 
the injured individual or the injured individual's beneficiary or 
legal representative, except public liability insurance carried by 
the insured that protects the insured against loss caused by an 
accident or collision.
	(c)  A hospital lien described by Section 55.002(a) does not 
attach to a claim against the owner or operator of a railroad 
company that maintains or whose employees maintain a hospital in 
which the injured individual is receiving hospital services.
	Sec. 55.004.  AMOUNT OF LIEN.  (a)  A hospital [The] lien 
described by Section 55.002(a) is for the amount of the hospital's 
charges for services provided to the injured individual during the 
first 100 days of the injured individual's hospitalization, except 
that the lien does not cover:
		(1)  charges for operating costs that exceed the cost 
limits established under Section 405.460, 42 Code of Federal 
Regulations; or
		(2)  charges for other services that exceed a 
reasonable and regular rate for the services.
	(b)  An emergency medical services lien described by Section 
55.002(b) is for the amount charged by the emergency medical 
services provider for emergency medical services provided to the 
injured individual during the 72 hours following the accident that 
caused the individual's injuries, except that the lien does not 
cover charges for services that exceed a reasonable and regular 
rate for the services.
	(c)  A hospital [The] lien described by Section 55.002(a) is 
not affected by a hospital's use of a method of classifying patients 
according to their ability to pay that is solely intended to obtain 
a lien for services provided to an indigent injured individual.
	Sec. 55.005.  SECURING LIEN.  (a)  To secure the lien, a 
hospital or emergency medical services provider must file written 
notice of the lien with the county clerk of the county in which the 
[hospital] services were provided.  The notice must be filed before 
money is paid to an entitled person because of the injury.
	(b)  The notice must contain:                                                  
		(1)  the injured individual's name and address;                               
		(2)  the date of the accident;                                                
		(3)  the name and location of the hospital or emergency 
medical services provider claiming the lien; and
		(4)  the name of the person alleged to be liable for 
damages arising from the injury, if known.
	(c)  The county clerk shall record the name of the injured 
individual, the date of the accident, and the name and address of 
the hospital or emergency medical services provider and shall index 
the record in the name of the injured individual.
	Sec. 55.006.  DISCHARGE OF LIEN.  (a)  To discharge a [the] 
lien under this chapter, the [hospital] authorities of the hospital 
or emergency medical services provider claiming the lien or the 
person in charge of the finances of the hospital or emergency 
medical services provider must execute and file with the county 
clerk of the county in which the lien notice was filed a certificate 
stating that the debt covered by the lien has been paid or released 
and authorizing the clerk to discharge the lien.
	(b)  The county clerk shall record a memorandum of the 
certificate and the date it was filed.
	(c)  The filing of the certificate and recording of the 
memorandum discharge the lien.
	Sec. 55.007.  VALIDITY OF RELEASE.  (a)  A release of a 
cause of action or judgment to which a [the] lien under this chapter
may attach is not valid unless:
		(1)  the [hospital's] charges of the hospital or 
emergency medical services provider claiming the lien were paid in 
full before the execution and delivery of the release;
		(2)  the [hospital's] charges of the hospital or 
emergency medical services provider claiming the lien were paid 
before the execution and delivery of the release to the extent of 
any full and true consideration paid to the injured individual by or 
on behalf of the other parties to the release; or
		(3)  the hospital or emergency medical services 
provider claiming the lien is a party to the release.
	(b)  A judgment to which a [the] lien under this chapter has 
attached remains in effect until the [hospital's] charges of the 
hospital or emergency medical services provider claiming the lien
are paid in full or to the extent set out in the judgment.
	Sec. 55.008.  [HOSPITAL] RECORDS. (a)  On request by an 
attorney for a party by, for, or against whom a claim is asserted 
for damages arising from an injury, a hospital or emergency medical 
services provider shall as promptly as possible make available for 
the attorney's examination its records concerning the services 
provided to the injured individual.
	(b)  The hospital or emergency medical services provider may 
issue reasonable rules for granting access to its records under 
this section, but it may not deny access because a record is 
incomplete.
	(c)  The records are admissible, subject to applicable rules 
of evidence, in a civil suit arising from the injury.
	SECTION 2.  (a)  This Act takes effect September 1, 2003.                      
	(b)  The change in law made by this Act applies only to 
emergency medical services provided by an emergency medical 
services provider on or after the effective date of this Act.  
Emergency medical services provided by an emergency medical 
services provider before the effective date of this Act are 
governed by the law in effect at the time the services were 
provided, and the former law is continued in effect for that 
purpose.