HBA-RAR H.B. 103 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 103
By: Alvarado
Business & Industry
2/8/1999
Introduced



BACKGROUND & PURPOSE 

Currently, Texas law provides for statutory liens for payment of debt to
particular providers of services and materials such as garage services,
cleaners, innkeepers, laborers, contractors, and hospitals.  At present,
there is no statutory lien benefiting a health care practitioner.  H.B. 103
establishes a statutory lien in favor of a heath care practitioner. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not delegate  any additional rulemaking authority to a state officer,
department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subtitle B, Title 5,  Property Code, by adding Chapter
62, as follows: 

CHAPTER 62.  HEALTH CARE PRACTITIONER'S LIEN

 Sec. 62.001.  DEFINITION. Defines "health care practitioner."

Sec. 62.002.  LIEN. Provides that a health care practitioner has a lien on
a cause of action or claim of an individual who receives health care
services from the practitioner for injuries caused by an accident
attributed to the negligence of another person.  

 Sec. 62.003.  PROPERTY TO WHICH LIEN ATTACHES.  Provides that the lien
attaches to a cause of action for damages, to a judgment of a court in this
state or the decision of a public agency, and to the proceeds of a
settlement or a claim, arising from an injury for which the individual
receives health care.  Provides that the lien does not attach to a claim
under Subtitle A, Title 5, Labor Code, 45 U.S.C. Section 51 et seq., 33
U.S.C. Section 901 et seq., or to the proceeds of an insurance policy,
except public liability insurance carried by the insurer against loss
caused by accident or collision. 

 Sec. 62.004.  AMOUNT OF LIEN. Establishes that the lien is for the amount
of reasonable charges for necessary services provided by the health care
practitioner. 

 Sec. 62.005.  SECURING LIEN. (a) Requires the health care practitioner to
file written notice with the clerk of the county where the injury occurred
and in the county in which the individual resides.  Requires the health
care practitioner to send written notice by certified or registered mail
with return receipt requested to each insurer that might have liability out
of the accident and to each individual who receives services from the
health care practitioner for injures caused by the accident.  

       (b) Provides that the required notices must be given before the
fourth business day after the date of services and before money is paid to
a person entitled to recover because of the injury. 

              (c) Provides that the required notices must contain the
injured individual's name and address, the date of the accident, the name
and address of the health care practitioner,  and, if known, the name of
the person alleged to be liable for damages.  

                         (d) Provides that the required notices must
include a statement informing each party of the health care practitioner's
right to recover from the proceeds of a cause of action or claim awarded to
the individual, and provides if the health care practitioner fails to
include the statement in the notices, then the health care practitioner
forfeits the right to recover for failure. 

  (e) Requires the county clerk who receives the notice of lien to record
the name of the injured individual, the date of the accident, the name and
address of the health care practitioner, and to index the record in the
name of the injured individual. 

   Sec. 62.006.  DISCHARGE OF LIEN.  Provides that, before the third
business day after receipt of payment for the health care services, the
health care practitioner must execute and file a certificate stating that
the debt has been paid or released and authorizing the county clerk to
discharge the lien in each county where the lien was filed.  Requires the
county clerk to record a memorandum of the certificate and the date it was
filed and establishes that this action by the county clerk discharges the
lien.     

 Sec. 62.007.  VALIDITY OF RELEASE.  Establishes that a release for a cause
of action or judgment to which the lien attaches is not valid unless the
health care practitioner's charges were paid in full, or to the extent of
any full and true consideration paid to the injured individual, or on
behalf of the other parties to the release before the execution and
delivery of the release; or the health care practitioner is a party to the
release.  Provides that a judgment to which the lien attaches remains in
effect until the health care practitioner's charge are paid in full or to
the extent set out in the judgment.  

 Sec. 62.008.  HEALTH CARE PRACTITIONER'S RECORDS.  Requires a health care
practitioner to make available for an attorney's examination the records
concerning the services provided upon request by an attorney for a party
by, for, or against whom a claim is asserted for damages arising from an
injury.  Authorizes the health care provider to impose reasonable
requirements for granting access and prohibits denying access because the
record is incomplete.  Establishes that the records are admissible in a
civil suit, subject to the applicable rules of evidence. 

 Sec. 62.009.  PRIORITY OF HOSPITAL LIEN OVER OTHER LIENS.  Establishes
that a lien filed under this chapter is subordinated to a hospital lien
filed under Chapter 55, Property Code. 

SECTION 2.  Amends Section 55.004, Property Code, to authorize the
inclusion of the charges for a physician's services provided in the
hospital's emergency room in the lien and authorizes the hospital to secure
and discharge the lien at the request of the physician.  Creates
Subsections (c) and (d) from existing text.  Makes conforming and
nonsubstantive changes. 

SECTION 3. Effective date:  September 1, 1999.  
                      Makes the application of this Act prospective.

SECTION 4.  Emergency clause.