By: Harless H.B. No. 4124
A BILL TO BE ENTITLED
AN ACT
relating to certain possessory liens on certain motor vehicles,
motorboats, vessels, or outboard motors.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 70, Section 70.001,
Property Code, is amended to read as follows:
Sec. 70.001. WORKER'S LIEN. (a) A worker in this state who
by labor repairs an article, including a vehicle, motorboat,
vessel, or outboard motor, may retain possession of the article
until:
(1) the amount due under the contract for the repairs
is paid; or
(2) if no amount is specified by contract, the
reasonable and usual compensation is paid.
(b) If a worker relinquishes possession of a motor vehicle,
motorboat, vessel, or outboard motor in return for a 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 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 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 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 worker who takes possession of an article under
Subsection (b) may require a person obligated under the repair
contract to pay 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. 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
worker in taking possession of the article.
(e) A worker may not transfer to a third party, and a person
who performs repossession services may not accept, 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 transfers or
accepts a check, money order, or credit card transaction in
violation of Subsection (e). An offense under this subsection is a
Class B misdemeanor.
(g) A motor vehicle that is repossessed under this section
shall be promptly delivered to the location where the repair was
performed or a vehicle storage facility licensed under Chapter
2303, Occupations Code. The motor vehicle must remain at the
repair location or a licensed vehicle storage facility at all times
until the motor vehicle is lawfully returned to the motor vehicle's
owner or a lienholder or is disposed of as provided by this
subchapter.
(h) A prior security interest has priority over a possessory
lien created under this Section.
SECTION 2. This Act takes effect September 1, 2009.