1-1 By: Danburg (Senate Sponsor - Luna) H.B. No. 575 1-2 (In the Senate - Received from the House May 5, 1993; 1-3 May 6, 1993, read first time and referred to Committee on 1-4 Jurisprudence; May 25, 1993, reported favorably, as amended, by the 1-5 following vote: Yeas 7, Nays 0; May 25, 1993, sent to printer.) 1-6 COMMITTEE VOTE 1-7 Yea Nay PNV Absent 1-8 Henderson x 1-9 Harris of Tarrant x 1-10 Brown x 1-11 Harris of Dallas x 1-12 Luna x 1-13 Parker x 1-14 West x 1-15 COMMITTEE AMENDMENT NO. 1 By: Henderson 1-16 Amend H.B. 575 by striking Section 1 of the bill and 1-17 substituting the following: 1-18 SECTION 1. Section 70.001, Property Code, is amended by 1-19 adding Subsections (c) and (d) to read as follows: 1-20 (c) A worker may take possession of an article under 1-21 Subsection (b) only if: 1-22 (1) the person obligated under the repair contract has 1-23 signed a notice stating that the article may be subject to 1-24 repossession under this section and the notice is: 1-25 (A) separate from the written repair contract; 1-26 or 1-27 (B) printed on the written repair contract, 1-28 credit agreement, or other document with a separate signature line 1-29 and in type that is boldfaced, capitalized, underlined, or 1-30 otherwise set off from surrounding written material so as to be 1-31 conspicuous; and 1-32 (2) the worker has notified the person obligated under 1-33 the repair contract of the amount due both personally and by 1-34 certified mail addressed to the obligee's last known address not 1-35 later than the 10th day before the date of repossession. 1-36 (d) A worker who takes possession of an article under 1-37 Subsection (b) may require a person obligated under the repair 1-38 contract to pay the costs of repossession as a condition of 1-39 reclaiming the article only to the extent of 20 percent of the 1-40 unpaid amount due or $100, whichever is less. 1-41 A BILL TO BE ENTITLED 1-42 AN ACT 1-43 relating to repossession under a worker's lien; providing a 1-44 criminal penalty. 1-45 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-46 SECTION 1. Section 70.001, Property Code, is amended by 1-47 adding Subsections (c) and (d) to read as follows: 1-48 (c) A worker may take possession of an article under 1-49 Subsection (b) only if the person obligated under the repair 1-50 contract has signed a notice stating that the article may be 1-51 subject to repossession under this section. A notice under this 1-52 subsection must be: 1-53 (1) separate from the written repair contract; or 1-54 (2) printed on the written repair contract, credit 1-55 agreement, or other document in type that is boldfaced, 1-56 capitalized, underlined, or otherwise set out from surrounding 1-57 written material so as to be conspicuous with a separate signature 1-58 line. 1-59 (d) A worker who takes possession of an article under 1-60 Subsection (b) may require a person obligated under the repair 1-61 contract to pay the costs of repossession as a condition of 1-62 reclaiming the article only to the extent of the reasonable fair 1-63 market value of the services required to take possession of the 1-64 article. For the purpose of this subsection, charges represent the 1-65 fair market value of the services required to take possession of an 1-66 article if the charges represent the actual cost incurred by the 1-67 worker in taking possession of the article. 1-68 SECTION 2. Section 70.001, Property Code, is amended by 2-1 adding Subsections (e) and (f) to read as follows: 2-2 (e) A worker may not sell for cash or other consideration to 2-3 a person who performs repossession services a check that is 2-4 received as payment for repair of an article and that is returned 2-5 to the worker because of insufficient funds. 2-6 (f) A person commits an offense if the person sells a check 2-7 in violation of Subsection (e). An offense under this subsection 2-8 is a Class B misdemeanor. 2-9 SECTION 3. (a) This Act takes effect September 1, 1993. 2-10 (b) This Act applies only to a repair contract entered into 2-11 on or after September 1, 1993. A repair contract entered into 2-12 before September 1, 1993, is governed by the law as it existed at 2-13 the time the contract was entered into, and that law is continued 2-14 in effect for that purpose. 2-15 (c) The change in law made by this Act applies only to an 2-16 offense committed on or after the effective date of this Act. For 2-17 purposes of this subsection, an offense is committed before the 2-18 effective date of this Act if any element of the offense occurs 2-19 before that date. An offense committed before the effective date 2-20 of this Act is covered by the law in effect when the offense was 2-21 committed, and the former law is continued in effect for this 2-22 purpose. 2-23 SECTION 4. The importance of this legislation and the 2-24 crowded condition of the calendars in both houses create an 2-25 emergency and an imperative public necessity that the 2-26 constitutional rule requiring bills to be read on three several 2-27 days in each house be suspended, and this rule is hereby suspended. 2-28 * * * * * 2-29 Austin, 2-30 Texas 2-31 May 25, 1993 2-32 Hon. Bob Bullock 2-33 President of the Senate 2-34 Sir: 2-35 We, your Committee on Jurisprudence to which was referred H.B. No. 2-36 575, have had the same under consideration, and I am instructed to 2-37 report it back to the Senate with the recommendation that it do 2-38 pass, as amended, and be printed. 2-39 Henderson, 2-40 Chairman 2-41 * * * * * 2-42 WITNESSES 2-43 No witnesses appeared on H.B. No. 575.