| 1 | 1 | | 81R15403 UM-F |
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| 2 | 2 | | By: Harless H.B. No. 1631 |
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| 3 | 3 | | Substitute the following for H.B. No. 1631: |
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| 4 | 4 | | By: Geren C.S.H.B. No. 1631 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to certain notice requirements regarding possessory liens |
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| 10 | 10 | | on certain motor vehicles; providing a criminal penalty. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 70.006, Property Code, is amended by |
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| 13 | 13 | | adding Subsections (b-1), (b-2), (b-3), and (g) to read as follows: |
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| 14 | 14 | | (b-1) A holder of a possessory lien on a motor vehicle under |
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| 15 | 15 | | Section 70.001, other than a person licensed as a franchised dealer |
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| 16 | 16 | | under Chapter 2301, Occupations Code, who is required to give |
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| 17 | 17 | | notice to a lienholder of record under this section must include in |
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| 18 | 18 | | the notice: |
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| 19 | 19 | | (1) the physical address of the real property at which |
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| 20 | 20 | | the repairs to the motor vehicle were made; |
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| 21 | 21 | | (2) the legal name of the person that holds the |
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| 22 | 22 | | possessory lien for which the notice is required; |
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| 23 | 23 | | (3) the taxpayer identification number or employer |
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| 24 | 24 | | identification number, as applicable, of the person that holds the |
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| 25 | 25 | | possessory lien for which the notice is required; and |
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| 26 | 26 | | (4) a signed copy of the work order authorizing the |
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| 27 | 27 | | repairs on the motor vehicle. |
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| 28 | 28 | | (b-2) If the holder of a possessory lien required to give |
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| 29 | 29 | | notice in accordance with Subsection (b-1) does not comply with |
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| 30 | 30 | | that subsection, a lien recorded on the certificate of title of the |
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| 31 | 31 | | motor vehicle is superior to the possessory lienholder's lien. |
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| 32 | 32 | | (b-3) A person commits an offense if the person knowingly |
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| 33 | 33 | | provides false or misleading information in a notice required by |
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| 34 | 34 | | this section. An offense under this subsection is a Class B |
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| 35 | 35 | | misdemeanor. |
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| 36 | 36 | | (g) After providing notice in accordance with this section, |
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| 37 | 37 | | a holder of a possessory lien on a motor vehicle under Section |
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| 38 | 38 | | 70.001, other than a person licensed as a franchised dealer under |
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| 39 | 39 | | Chapter 2301, Occupations Code, shall make commercially reasonable |
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| 40 | 40 | | efforts to allow an owner and each lienholder of record to inspect |
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| 41 | 41 | | or arrange an inspection of the motor vehicle by a qualified |
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| 42 | 42 | | professional to verify that the repairs were made. |
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| 43 | 43 | | SECTION 2. The changes in law made by this Act apply only to |
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| 44 | 44 | | a possessory lien on a motor vehicle the possession of which is |
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| 45 | 45 | | obtained on or after the effective date of this Act. A possessory |
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| 46 | 46 | | lien on a motor vehicle the possession of which was obtained before |
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| 47 | 47 | | that date is governed by the law in effect at the time possession |
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| 48 | 48 | | was obtained, and the former law is continued in effect for that |
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| 49 | 49 | | purpose. |
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| 50 | 50 | | SECTION 3. This Act takes effect September 1, 2009. |
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