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.