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S1410.......................................by COMMERCE AND HUMAN RESOURCES
LIENS - Amends existing law to clarify the right to a mechanics' and
materialmen's lien to apply to a person who is otherwise unsecured in whole
or in part.
02/06 Senate intro - 1st rdg - to printing
02/09 Rpt prt - to Com/HuRes
03/04 Rpt out - rec d/p - to 2nd rdg
03/04 2nd rdg - to 3rd rdg
03/09 3rd rdg - PASSED - 34-0-1
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
Richardson, Riggs, Risch, Sandy, Schroeder, Stennett, Sweeney,
Thorne, Twiggs, Wheeler, Whitworth
NAYS--None
Absent and excused--Sorensen
Floor Sponsor - Crow
Title apvd - to House
03/10 House intro - 1st rdg - to Bus
03/16 Rpt out - rec d/p - to 2nd rdg
03/17 2nd rdg - to 3rd rdg
03/18 3rd rdg - PASSED - 67-0-3
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Bivens,
Black(15), Black(23), Boe, Bruneel, Callister, Campbell, Chase,
Clark, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20),
Gagner, Geddes, Gould, Hadley, Henbest, Hornbeck, Jaquet, Jones(9),
Jones(22), Jones(20), Judd, Kellogg, Kempton, Kendell, Kjellander,
Kunz, Lake, Linford, Loertscher, Mader, Marley, McKague, Meyer,
Mortensen, Newcomb, Pischner, Pomeroy, Reynolds, Richman, Ridinger,
Robison, Sali, Schaefer, Stevenson, Stoicheff, Stone, Stubbs, Taylor,
Tilman, Tippets, Trail, Watson, Wheeler, Wood, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Crane, Hansen, Miller
Floor Sponsor - Meyer
Title apvd - to Senate
03/19 To enrol
03/20 Rpt enrol - Pres signed
03/23 Sp signed - to Governor
03/24 Governor signed
Session Law Chapter 269
Effective: 07/01/98
S1410|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE SENATE SENATE BILL NO. 1410 BY COMMERCE AND HUMAN RESOURCES COMMITTEE 1 AN ACT 2 RELATING TO MECHANIC'S AND MATERIALMEN'S LIENS; AMENDING SECTION 45-501, IDAHO 3 CODE, TO CLARIFY APPLICATION OF THE LIEN TO ONE WHO IS OTHERWISE UNSECURED 4 IN WHOLE OR IN PART AND TO MAKE A TECHNICAL CORRECTION. 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Section 45-501, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 45-501. RIGHT TO LIEN. Every person , otherwise unsecured in whole 9 or in part, performing labor upon, or furnishing materials to be used 10 in the construction, alteration or repair of any mining claim, building, 11 wharf, bridge, ditch, dike, flume, tunnel, fence, machinery, railroad, wagon 12 road, aqueduct to create hydraulic power, or any other structure, or who 13 grades, fills in, levels, surfaces or otherwise improves any land, or who per- 14 forms labor in any mine or mining claim, and every professional engineer or 15 licensed surveyor under contract who prepares or furnishes designs, plans, 16 plats, maps, specifications, drawings, surveys, estimates of cost, on - 17 site observation or supervision, or who renders any other professional 18 service whatsoever for which he is legally authorized to perform in connection 19 with any land or building development or improvement, or to establish bound- 20 aries, has a lien upon the same for the work or labor done or professional 21 services or materials furnished, whether done or furnished at the instance of 22 the owner of the building or other improvement or his agent; and every con- 23 tractor, subcontractor, architect, builder or any person having charge of any 24 mining claim, or of the construction, alteration or repair, either in whole or 25 in part, of any building or other improvement, as aforesaid, shall be held to 26 be the agent of the owner for the purpose of this chapter: provided, that the 27 lessee or lessees of any mining claim shall not be considered as the agent or 28 agents of the owner under the provisions of this chapter.
STATEMENT OF PURPOSE
RS 07858
This legislation amends Idaho's current mechanic 's lien law
(Idaho Code ยง 45-501) to clarify that the claimant must be
"otherwise unsecured". When adopted in 1893, Idaho's mechanic's
lien law was intended to protect unsecured laborers and material
providers who improved real property and were not paid. It was
never intended to be an additional layer of non-consensual
security for creditors who are already secured. Due to the lack of
legislative clarity, some claimants have been gaining secured
positions for their open account debts associated within
improvement of real property and then filing a mechanic's lien
with the filing period. This practice allows a "discharged debt"to
become the subject of a statutorily created nonconsensual
mechanic's lien, which was never the intent of the law.
FISCAL NOTE
No impact to the general fund or local governments.
CONTACT: Senator Gordon Crow, Idaho State Senate
Phone:(208) 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE Bill No S1410