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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