83R1927 TJS-F

By: Pitts H.B. No. 3071

A BILL TO BE ENTITLED

AN ACT

relating to a worker's lien on a vehicle, motorboat, vessel, or outboard motor; providing a penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 70.001, Property Code, is amended by amending Subsections (b), (c), (d), (e), and (f) and adding Subsection (d-1) to read as follows:

(b) If the lienholder [a worker] relinquishes possession of a motor vehicle, motorboat, vessel, or outboard motor in return for a purported payment or a promise to pay by the person obligated under the repair contract [check, money order, or a credit card transaction on which payment is stopped, has been dishonored because of insufficient funds, no funds or because the drawer or maker of the order or the credit card holder has no account or the account upon which it was drawn or the credit card account has been closed], the lien provided by this section continues to exist and the lienholder [worker] is entitled to possession of the vehicle, motorboat, vessel, or outboard motor until the amount due is paid, unless the vehicle, motorboat, vessel, or outboard motor is possessed by a person who became a bona fide purchaser of the vehicle before full payment [after a stop payment order] was made. A person entitled to possession of property under this subsection is entitled to take possession thereof in accordance with the provisions of Section 9.609, Business & Commerce Code.

(c) A lienholder [worker] may take possession of an article under Subsection (b) only if the person obligated under the repair contract has signed a notice stating that the article may be subject to repossession under this section. A notice under this subsection must be:

(1) separate from the written repair contract; or

(2) printed on the written repair contract, credit agreement, or other document in type that is boldfaced, capitalized, underlined, or otherwise set out from surrounding written material so as to be conspicuous with a separate signature line.

(d) A lienholder [worker] who takes possession of an article under Subsection (b) may require a person obligated under the repair contract to pay, as a condition of reclaiming the article, the lesser of:

(1) the actual costs reasonably incurred by the lienholder in taking possession of the article; or

(2) [the costs of repossession as a condition of reclaiming the article only to the extent of] the reasonable fair market value of the services required to take possession of the article.

(d-1) Charges imposed by a lienholder under Subsection (d) are rebuttably presumed to [For the purpose of this subsection, charges] represent the fair market value of the services required to take possession of an article if the charges represent the actual cost incurred by the lienholder [worker] in taking possession of the article, except the presumption does not apply to a charge imposed by a lienholder that has received or is entitled to receive a profit from the provision of services required to take possession of an article.

(e) A lienholder [worker] may not assign the lien to a person who performs repossession services [transfer to a third party], and a person who performs repossession services may not accept assignment of a lien under this section. This subsection may not be construed to prevent a lienholder under this section from assigning a lien to a third party that does not perform repossession services[, a check, money order, or credit card transaction that is received as payment for repair of an article and that is returned to the worker because of insufficient funds or no funds, because the drawer or maker of the check or money order or the credit card holder has no account, or because the account on which the check or money order is drawn or the credit card account has been closed].

(f) A person commits an offense if the person assigns [transfers] or accepts assignment of a lien [a check, money order, or credit card transaction] in violation of Subsection (e). An offense under this subsection is a Class B misdemeanor.

SECTION 2. (a) Except as provided by Subsection (b) of this section, the change in law made by this Act applies only to a lien created under a contract for repairs entered into on or after the effective date of this Act. A lien created under a contract for repairs entered into before the effective date of this Act is governed by the law in effect when the contract was entered into, and that law is continued in effect for that purpose.

(b) Section 70.001(f), Property Code, as amended by this Act, applies only to an offense committed on or after the effective date of this Act. An offense committed before the effective date of this Act is covered by the law in effect when the offense was committed, and the former law is continued in effect for that purpose. For purposes of this section, an offense was committed before the effective date of this Act if any element of the offense occurred before that date.

SECTION 3. This Act takes effect September 1, 2013.