| 1 | 1 | | By: Harless H.B. No. 4124 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to certain possessory liens on certain motor vehicles, |
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| 7 | 7 | | motorboats, vessels, or outboard motors. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter A, Chapter 70, Section 70.001, |
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| 10 | 10 | | Property Code, is amended to read as follows: |
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| 11 | 11 | | Sec. 70.001. WORKER'S LIEN. (a) A worker in this state who |
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| 12 | 12 | | by labor repairs an article, including a vehicle, motorboat, |
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| 13 | 13 | | vessel, or outboard motor, may retain possession of the article |
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| 14 | 14 | | until: |
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| 15 | 15 | | (1) the amount due under the contract for the repairs |
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| 16 | 16 | | is paid; or |
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| 17 | 17 | | (2) if no amount is specified by contract, the |
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| 18 | 18 | | reasonable and usual compensation is paid. |
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| 19 | 19 | | (b) If a worker relinquishes possession of a motor vehicle, |
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| 20 | 20 | | motorboat, vessel, or outboard motor in return for a check, money |
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| 21 | 21 | | order, or a credit card transaction on which payment is stopped, has |
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| 22 | 22 | | been dishonored because of insufficient funds, no funds or because |
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| 23 | 23 | | the drawer or maker of the order or the credit card holder has no |
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| 24 | 24 | | account or the account upon which it was drawn or the credit card |
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| 25 | 25 | | account has been closed, the lien provided by this section |
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| 26 | 26 | | continues to exist and the worker is entitled to possession of the |
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| 27 | 27 | | vehicle, motorboat, vessel, or outboard motor until the amount due |
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| 28 | 28 | | is paid, unless the vehicle, motorboat, vessel, or outboard motor |
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| 29 | 29 | | is possessed by a person who became a bona fide purchaser of the |
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| 30 | 30 | | vehicle after a stop payment order was made. A person entitled to |
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| 31 | 31 | | possession of property under this subsection is entitled to take |
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| 32 | 32 | | possession thereof in accordance with the provisions of Section |
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| 33 | 33 | | 9.609, Business & Commerce Code. |
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| 34 | 34 | | (c) A worker may take possession of an article under |
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| 35 | 35 | | Subsection (b) only if the person obligated under the repair |
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| 36 | 36 | | contract has signed a notice stating that the article may be subject |
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| 37 | 37 | | to repossession under this section. A notice under this subsection |
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| 38 | 38 | | must be: |
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| 39 | 39 | | (1) separate from the written repair contract; or |
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| 40 | 40 | | (2) printed on the written repair contract, credit |
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| 41 | 41 | | agreement, or other document in type that is boldfaced, |
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| 42 | 42 | | capitalized, underlined, or otherwise set out from surrounding |
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| 43 | 43 | | written material so as to be conspicuous with a separate signature |
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| 44 | 44 | | line. |
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| 45 | 45 | | (d) A worker who takes possession of an article under |
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| 46 | 46 | | Subsection (b) may require a person obligated under the repair |
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| 47 | 47 | | contract to pay the costs of repossession as a condition of |
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| 48 | 48 | | reclaiming the article only to the extent of the reasonable fair |
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| 49 | 49 | | market value of the services required to take possession of the |
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| 50 | 50 | | article. For the purpose of this subsection, charges represent the |
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| 51 | 51 | | fair market value of the services required to take possession of an |
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| 52 | 52 | | article if the charges represent the actual cost incurred by the |
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| 53 | 53 | | worker in taking possession of the article. |
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| 54 | 54 | | (e) A worker may not transfer to a third party, and a person |
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| 55 | 55 | | who performs repossession services may not accept, a check, money |
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| 56 | 56 | | order, or credit card transaction that is received as payment for |
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| 57 | 57 | | repair of an article and that is returned to the worker because of |
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| 58 | 58 | | insufficient funds or no funds, because the drawer or maker of the |
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| 59 | 59 | | check or money order or the credit card holder has no account, or |
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| 60 | 60 | | because the account on which the check or money order is drawn or |
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| 61 | 61 | | the credit card account has been closed. |
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| 62 | 62 | | (f) A person commits an offense if the person transfers or |
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| 63 | 63 | | accepts a check, money order, or credit card transaction in |
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| 64 | 64 | | violation of Subsection (e). An offense under this subsection is a |
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| 65 | 65 | | Class B misdemeanor. |
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| 66 | 66 | | (g) A motor vehicle that is repossessed under this section |
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| 67 | 67 | | shall be promptly delivered to the location where the repair was |
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| 68 | 68 | | performed or a vehicle storage facility licensed under Chapter |
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| 69 | 69 | | 2303, Occupations Code. The motor vehicle must remain at the |
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| 70 | 70 | | repair location or a licensed vehicle storage facility at all times |
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| 71 | 71 | | until the motor vehicle is lawfully returned to the motor vehicle's |
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| 72 | 72 | | owner or a lienholder or is disposed of as provided by this |
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| 73 | 73 | | subchapter. |
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| 74 | 74 | | (h) A prior security interest has priority over a possessory |
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| 75 | 75 | | lien created under this Section. |
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| 76 | 76 | | SECTION 2. This Act takes effect September 1, 2009. |
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