H.B. No. 575 1-1 AN ACT 1-2 relating to repossession under a worker's lien; providing a 1-3 criminal penalty. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 70.001, Property Code, is amended by 1-6 adding Subsections (c) and (d) to read as follows: 1-7 (c) A worker may take possession of an article under 1-8 Subsection (b) only if the person obligated under the repair 1-9 contract has signed a notice stating that the article may be 1-10 subject to repossession under this section. A notice under this 1-11 subsection must be: 1-12 (1) separate from the written repair contract; or 1-13 (2) printed on the written repair contract, credit 1-14 agreement, or other document in type that is boldfaced, 1-15 capitalized, underlined, or otherwise set out from surrounding 1-16 written material so as to be conspicuous with a separate signature 1-17 line. 1-18 (d) A worker who takes possession of an article under 1-19 Subsection (b) may require a person obligated under the repair 1-20 contract to pay the costs of repossession as a condition of 1-21 reclaiming the article only to the extent of the reasonable fair 1-22 market value of the services required to take possession of the 1-23 article. For the purpose of this subsection, charges represent the 1-24 fair market value of the services required to take possession of an 2-1 article if the charges represent the actual cost incurred by the 2-2 worker in taking possession of the article. 2-3 SECTION 2. Section 70.001, Property Code, is amended by 2-4 adding Subsections (e) and (f) to read as follows: 2-5 (e) A worker may not sell for cash or other consideration to 2-6 a person who performs repossession services a check that is 2-7 received as payment for repair of an article and that is returned 2-8 to the worker because of insufficient funds. 2-9 (f) A person commits an offense if the person sells a check 2-10 in violation of Subsection (e). An offense under this subsection 2-11 is a Class B misdemeanor. 2-12 SECTION 3. (a) This Act takes effect September 1, 1993. 2-13 (b) This Act applies only to a repair contract entered into 2-14 on or after September 1, 1993. A repair contract entered into 2-15 before September 1, 1993, is governed by the law as it existed at 2-16 the time the contract was entered into, and that law is continued 2-17 in effect for that purpose. 2-18 (c) The change in law made by this Act applies only to an 2-19 offense committed on or after the effective date of this Act. For 2-20 purposes of this subsection, an offense is committed before the 2-21 effective date of this Act if any element of the offense occurs 2-22 before that date. An offense committed before the effective date 2-23 of this Act is covered by the law in effect when the offense was 2-24 committed, and the former law is continued in effect for this 2-25 purpose. 2-26 SECTION 4. The importance of this legislation and the 2-27 crowded condition of the calendars in both houses create an 3-1 emergency and an imperative public necessity that the 3-2 constitutional rule requiring bills to be read on three several 3-3 days in each house be suspended, and this rule is hereby suspended.