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.