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S1411.......................................by COMMERCE AND HUMAN RESOURCES
LIENS - Amends existing lien law to provide further definitions; to clarify
that persons or entities who rent, lease or otherwise supply equipment,
materials or fixtures have a lien; to provide that renting, leasing or
otherwise supplying equipment, materials or fixtures shall authorize a lien
upon land; to provide when liens shall be on equal footing with other lien
claims and to provide application to rented or leased equipment; to revise
procedures for a person claiming a lien; to provide that materialmen
include persons furnishing, renting or leasing equipment, materials or
fixtures; and to provide for application to equipment rented or leased in a
legal action to recover a debt.
02/11 Senate intro - 1st rdg - to printing
02/14 Rpt prt - to Com/HuRes
03/01 Rpt out - rec d/p - to 2nd rdg
03/02 2nd rdg - to 3rd rdg
03/09 3rd rdg - PASSED - 34-0-1
AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee, Noh, Parry,
Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
Stennett, Thorne, Walton/Branch, Wheeler, Whitworth, Williams
NAYS--None
Absent and excused--McLaughlin
Floor Sponsor - Davis
Title apvd - to House
03/10 House intro - 1st rdg - to Bus
03/30 Rpt out - rec d/p - to 2nd rdg
03/31 2nd rdg - to 3rd rdg
04/03 3rd rdg - FAILED - 30-38-2
AYES -- Alltus, Barrett, Black, Callister, Chase, Crow, Cuddy, Deal,
Denney, Gagner, Hadley, Hammond, Hansen(23), Henbest, Hornbeck, Judd,
Kunz, Mader, McKague, Meyer, Mortensen, Pomeroy, Ridinger, Sali,
Schaefer, Smylie, Stone, Tilman, Trail, Zimmermann
NAYS -- Barraclough(Barraclough), Bell, Bieter, Boe, Bruneel,
Campbell, Cheirrett, Ellsworth, Field(13), Field(20), Geddes, Gould,
Hansen(29), Jaquet, Kellogg, Kempton, Kendell, Lake, Linford,
Loertscher(Loertscher), Marley, Montgomery, Moss, Moyle, Pearce,
Pischner, Reynolds, Ringo, Robison, Sellman, Shepherd, Smith,
Stevenson, Stoicheff, Taylor, Wheeler, Wood, Mr Speaker
Absent and excused -- Clark, Jones
Floor Sponsors - Callister, Tilman
Filed with Secretary of the Senate
S1411
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE SENATE
SENATE BILL NO. 1411
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO LIENS; AMENDING SECTION 45-501, IDAHO CODE, TO DELETE REFERENCE TO
3 UNSECURED AND TO PROVIDE FURTHER DEFINITIONS OF THE TERM "FURNISHING
4 MATERIALS"; AMENDING SECTION 45-504, IDAHO CODE, TO CLARIFY THAT PERSONS
5 OR ENTITIES WHO RENT, LEASE OR OTHERWISE SUPPLY EQUIPMENT, MATERIALS OR
6 FIXTURES HAVE A LIEN; AMENDING SECTION 45-505, IDAHO CODE, TO PROVIDE THAT
7 THE RENTING, LEASING OR OTHERWISE SUPPLYING OF EQUIPMENT, MATERIALS OR
8 FIXTURES SHALL AUTHORIZE A LIEN UPON LAND; AMENDING SECTION 45-506, IDAHO
9 CODE, TO PROVIDE WHEN LIENS SHALL BE ON EQUAL FOOTING WITH OTHER LIEN
10 CLAIMS AND TO PROVIDE APPLICATION TO RENTED OR LEASED EQUIPMENT; AMENDING
11 SECTION 45-507, IDAHO CODE, TO REVISE PROCEDURES FOR A PERSON CLAIMING A
12 LIEN; AMENDING SECTION 45-512, IDAHO CODE, TO PROVIDE THAT MATERIALMEN
13 INCLUDES PERSONS FURNISHING, RENTING OR LEASING EQUIPMENT, MATERIALS OR
14 FIXTURES; AND AMENDING SECTION 45-515, IDAHO CODE, TO PROVIDE FOR APPLICA-
15 TION TO EQUIPMENT RENTED OR LEASED IN A LEGAL ACTION TO RECOVER A DEBT.
16 Be It Enacted by the Legislature of the State of Idaho:
17 SECTION 1. That Section 45-501, Idaho Code, be, and the same is hereby
18 amended to read as follows:
19 45-501. RIGHT TO LIEN. Every person, otherwise unsecured in whole or in
20 part, performing labor upon, or furnishing materials to be used in the con-
21 struction, alteration or repair of any mining claim, building, wharf, bridge,
22 ditch, dike, flume, tunnel, fence, machinery, railroad, wagon road, aqueduct
23 to create hydraulic power, or any other structure, or who grades, fills in,
24 levels, surfaces or otherwise improves any land, or who performs labor in any
25 mine or mining claim, and every professional engineer or licensed surveyor
26 under contract who prepares or furnishes designs, plans, plats, maps, specifi-
27 cations, drawings, surveys, estimates of cost, on-site observation or supervi-
28 sion, or who renders any other professional service whatsoever for which he is
29 legally authorized to perform in connection with any land or building develop-
30 ment or improvement, or to establish boundaries, has a lien upon the same for
31 the work or labor done or professional services or materials furnished,
32 whether done or furnished at the instance of the owner of the building or
33 other improvement or his agent; and every contractor, subcontractor, archi-
34 tect, builder or any person having charge of any mining claim, or of the con-
35 struction, alteration or repair, either in whole or in part, of any building
36 or other improvement, as aforesaid, shall be held to be the agent of the owner
37 for the purpose of this chapter: provided, that the lessee or lessees of any
38 mining claim shall not be considered as the agent or agents of the owner under
39 the provisions of this chapter.
40 For purposes of this chapter the term "furnishing material" shall also
41 include, notwithstanding any other provision of law to the contrary, supply-
42 ing, renting or leasing equipment, materials or fixtures as defined in section
43 28-12-309, Idaho Code.
2
1 "Furnishing material" shall also include renting, leasing or otherwise
2 supplying any equipment, materials, fixtures or machinery to any mine or min-
3 ing claim.
4 SECTION 2. That Section 45-504, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 45-504. LIEN FOR IMPROVING LOTS. Any person who, at the request of the
7 owner of any lot in any incorporated city or town, surveys, grades, fills in,
8 or otherwise improves the same, or who rents, leases, or otherwise supplies
9 equipment, materials or fixtures as defined in section 28-12-309, Idaho Code,
10 to such person for the improvement of any lot, or the street in front of or
11 adjoining the same, has a lien upon such lot for his work done or material
12 furnished or equipment, materials or fixtures as defined in section 28-12-309,
13 Idaho Code, rented, leased or otherwise supplied.
14 SECTION 3. That Section 45-505, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 45-505. LAND SUBJECT TO LIEN. The land upon which or in connection with
17 which any professional services are performed or any building, improvement or
18 structure is constructed, together with a convenient space about the same, or
19 so much as may be required for the convenient use and occupation thereof, to
20 be determined by the court on rendering judgment, is also subject to the lien,
21 if, at the commencement of the furnishing of professional services or other
22 work, or of the furnishing of the material, or the renting, leasing or other-
23 wise supplying of equipment, materials or fixtures as defined in section
24 28-12-309, Idaho Code, for the same, the land belonged to the person who
25 caused said professional services to be performed or said building, improve-
26 ment or structure to be constructed, altered or repaired, or such person was
27 acting as the agent of the owner, but if such person owns less than a fee sim-
28 ple estate in such land, then only his the interest of the person(s) causing
29 the services or improvement therein is subject to such lien.
30
31 SECTION 4. That Section 45-506, Idaho Code, be, and the same is hereby
32 amended to read as follows:
33 45-506. LIENS PREFERRED CLAIMS. The liens provided for in this chapter
34 shall be on equal footing with those liens within the same class of liens,
35 without reference to the date of the filing of the lien claims(s) and are pre-
36 ferred to any lien, mortgage or other encumbrance, which may have attached
37 subsequent to the time when the building, improvement or structure was com-
38 menced, work done, equipment, materials or fixtures were rented or leased, or
39 materials or professional services were commenced to be furnished; also to any
40 lien, mortgage, or other encumbrance of which the lienholder had no notice,
41 and which was unrecorded at the time the building, improvement or structure
42 was commenced, work done, equipment, materials or fixtures were rented or
43 leased, or materials or professional services were commenced to be furnished.
44 SECTION 5. That Section 45-507, Idaho Code, be, and the same is hereby
45 amended to read as follows:
46 45-507. CLAIM OF LIEN. (1) Any person claiming a lien pursuant to the
47 provisions of this chapter must, within ninety (90) days after the completion
48 of the labor or services or furnishing of materials, or the cessation of the
3
1 labor, services or furnishing of materials for any cause, file a claim for
2 record with the county recorder for the county in which such property or some
3 part thereof is situated, a claim containing a statement.
4 (2) The claim shall be filed within ninety (90) days after the completion
5 of the labor or services, or furnishing of materials.
6 (3) The claim shall contain:
7 (a) A statement of his demand, after deducting all just credits and off-
8 sets, with the
9 (b) The name of the owner, or reputed owner, if known, and also
10 (c) Tthe name of the person by whom he was employed or to whom he fur-
11 nished the materials, and also a
12 (d) A description of the property to be charged with the lien, sufficient
13 for identification, which.
14 (4) Such claim must be verified by the oath of the claimant, his agent or
15 attorney, to the effect that the affiant believes the same to be just.
16 (5) A true and correct copy of the claim of lien shall be served on the
17 owner or reputed owner of the property either by delivering a copy thereof to
18 the owner or reputed owner personally or by mailing a copy thereof by certi-
19 fied mail to the owner or reputed owner at his last known address. Such deliv-
20 ery or mailing shall be made no later than twenty-four (24) hours following
21 the filing of said claim of lien.
22 SECTION 6. That Section 45-512, Idaho Code, be, and the same is hereby
23 amended to read as follows:
24 45-512. JUDGMENT TO DECLARE PRIORITY. In every case in which different
25 liens are asserted against any property, the court in the judgment must
26 declare the rank of each lien or class of liens which shall be in the follow-
27 ing order:
28 1. All laborers, other than contractors or subcontractors.
29 2. All materialmen including persons furnishing, renting or leasing
30 equipment, materials or fixtures as defined in section 28-12-309, Idaho Code,
31 other than contractors or subcontractors.
32 3. Subcontractors.
33 4. The original contractor.
34 5. All professional engineers and licensed surveyors.
35 And in case the proceeds of sale under this chapter shall be insufficient
36 to pay all lienholders under it:
37 1. The liens of all laborers, other than the original contractor and sub-
38 contractor, shall first be paid in full, or pro rata if the proceeds be insuf-
39 ficient to pay them in full.
40 2. The lien of materialmen including persons furnishing, renting or leas-
41 ing equipment, materials or fixtures as defined in section 28-12-309, Idaho
42 Code, other than the original contractor or subcontractor, shall be paid in
43 full, or pro rata if the proceeds be insufficient to pay them in full.
44 3. Out of the remainder, if any, the subcontractors shall be paid in
45 full, or pro rata if the remainder be insufficient to pay them in full, and
46 the remainder, if any, shall be paid pro rata to the original contractor and
47 the professional engineers and licensed surveyors; and each claimant shall be
48 entitled to execution for any balance due him after such distribution; such
49 execution to be issued by the clerk of the court upon demand, at the return of
50 the sheriff or other officer making the sale, showing such balance due.
51 SECTION 7. That Section 45-515, Idaho Code, be, and the same is hereby
52 amended to read as follows:
4
1 45-515. ACTION TO RECOVER DEBT. Nothing contained in this chapter shall
2 be construed to impair or affect the right of any person to whom any debt may
3 be due for work done, equipment, materials or fixtures rented or leased or
4 materials furnished, to maintain a personal action to recover such debt
5 against the person liable therefor.
STATEMENT OF PURPOSE
RS 09407C1
This legislation is prompted by a recent decision of the Idaho Supreme Court
(case 1999 WL 16075-Idaho). The purpose of this legislation is to include the
lessors of equipment in the mechanics' and materialmen's lien statute.
FISCAL NOTE
None.
CONTACT: Senator Bart Davis
332-1000
STATEMENT OF PURPOSE/FISCAL NOTE S 1411