View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact
H0132...........................................................by BUSINESS EQUIPMENT LEASED/RENTED - LIENS - Amends existing law to further define the term "furnishing material"; to clarify that persons who rent, lease or otherwise supply equipment, materials or fixtures for the improvement of a lot have a lien; to provide that the renting, leasing or otherwise supplying of equipment, materials or fixtures shall authorize a lien upon land; to provide when liens shall be on equal footing with other lien claims; to provide application to rented or leased equipment, materials or fixtures; to revise procedures for a person claiming a lien; to provide that the term "materialmen" includes persons furnishing, renting or leasing equipment, materials or fixtures; and to provide for application to equipment, materials or fixtures rented or leased in a personal action to recover a debt. 02/01 House intro - 1st rdg - to printing 02/02 Rpt prt - to Bus 02/16 Rpt out - rec d/p - to 2nd rdg 02/19 2nd rdg - to 3rd rdg 02/21 3rd rdg - PASSED - 53-7-10 AYES -- Barraclough, Bedke, Bell, Black, Boe, Bolz, Bradford, Callister, Campbell, Chase, Clark, Crow, Cuddy, Deal, Denney, Ellis, Ellsworth, Field(13), Field(20), Gagner, Gould, Hadley, Hammond, Harwood, Henbest, Higgins, Jaquet, Jones, Kellogg, Kendell, Kunz, Langford, Loertscher, Marley, McKague, Meyer, Montgomery, Moss, Pearce, Pischner, Pomeroy, Raybould, Sali, Schaefer, Sellman, Shepherd, Smith, Smylie, Stone, Swan, Tilman, Trail, Young NAYS -- Barrett, Bieter, Bruneel, Eskridge, Lake, Moyle, Robison Absent and excused -- Collins, Hornbeck, Mader, Mortensen, Ridinger, Roberts, Stevenson, Wheeler, Wood, Mr. Speaker Floor Sponsor -- Tilman Title apvd - to Senate 02/22 Senate intro - 1st rdg - to Com/HuRes 03/14 Rpt out - rec d/p - to 2nd rdg 03/15 2nd rdg - to 3rd rdg 03/20 3rd rdg - PASSED - 25-7-3 AYES -- Andreason, Brandt, Bunderson, Burtenshaw, Cameron, Danielson, Davis, Deide, Dunklin, Frasure, Geddes, Goedde, Ipsen, Keough, Lodge, Richardson, Risch, Sandy, Sims, Sorensen, Stegner, Thorne, Wheeler, Whitworth, Williams, NAYS -- Boatright, Branch, Darrington, Hawkins, Lee, Noh, Schroeder Absent and excused -- Ingram, King-Barrutia, Stennett Floor Sponsor -- Davis Title apvd - to House 03/21 To enrol 03/22 Rpt enrol - Sp signed - Pres signed - to Gov 03/23 Governor signed Session Law Chapter 152 Effective: 07/01/01
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-sixth Legislature First Regular Session - 2001IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 132 BY BUSINESS COMMITTEE 1 AN ACT 2 RELATING TO LIENS; AMENDING SECTION 45-501, IDAHO CODE, TO DELETE REFERENCE TO 3 UNSECURED AND TO FURTHER DEFINE THE TERM "FURNISHING MATERIAL"; AMENDING 4 SECTION 45-504, IDAHO CODE, TO CLARIFY THAT PERSONS WHO RENT, LEASE OR 5 OTHERWISE SUPPLY EQUIPMENT, MATERIALS OR FIXTURES FOR THE IMPROVEMENT OF A 6 LOT HAVE A LIEN; AMENDING SECTION 45-505, IDAHO CODE, TO PROVIDE THAT THE 7 RENTING, LEASING OR OTHERWISE SUPPLYING OF EQUIPMENT, MATERIALS OR FIX- 8 TURES SHALL AUTHORIZE A LIEN UPON LAND, TO PROVIDE FOR AGENTS OF LANDOWN- 9 ERS AND TO CLARIFY THE INTEREST SUBJECT TO A LIEN UPON LAND; AMENDING SEC- 10 TION 45-506, IDAHO CODE, TO PROVIDE WHEN LIENS SHALL BE ON EQUAL FOOTING 11 WITH OTHER LIEN CLAIMS AND TO PROVIDE APPLICATION TO RENTED OR LEASED 12 EQUIPMENT, MATERIALS OR FIXTURES; AMENDING SECTION 45-507, IDAHO CODE, TO 13 REVISE PROCEDURES FOR A PERSON CLAIMING A LIEN; AMENDING SECTION 45-512, 14 IDAHO CODE, TO PROVIDE THAT THE TERM "MATERIALMEN" INCLUDES PERSONS FUR- 15 NISHING, RENTING OR LEASING EQUIPMENT, MATERIALS OR FIXTURES; AND AMENDING 16 SECTION 45-515, IDAHO CODE, TO PROVIDE FOR APPLICATION TO EQUIPMENT, MATE- 17 RIALS OR FIXTURES RENTED OR LEASED IN A PERSONAL ACTION TO RECOVER A DEBT. 18 Be It Enacted by the Legislature of the State of Idaho: 19 SECTION 1. That Section 45-501, Idaho Code, be, and the same is hereby 20 amended to read as follows: 21 45-501. RIGHT TO LIEN. Every person, otherwise unsecured in whole or in22part,performing labor upon, or furnishing materials to be used in the con- 23 struction, alteration or repair of any mining claim, building, wharf, bridge, 24 ditch, dike, flume, tunnel, fence, machinery, railroad, wagon road, aqueduct 25 to create hydraulic power, or any other structure, or who grades, fills in, 26 levels, surfaces or otherwise improves any land, or who performs labor in any 27 mine or mining claim, and every professional engineer or licensed surveyor 28 under contract who prepares or furnishes designs, plans, plats, maps, specifi- 29 cations, drawings, surveys, estimates of cost, on-site observation or supervi- 30 sion, or who renders any other professional service whatsoever for which he is 31 legally authorized to perform in connection with any land or building develop- 32 ment or improvement, or to establish boundaries, has a lien upon the same for 33 the work or labor done or professional services or materials furnished, 34 whether done or furnished at the instance of the owner of the building or 35 other improvement or his agent; and every contractor, subcontractor, archi- 36 tect, builder or any person having charge of any mining claim, or of the con- 37 struction, alteration or repair, either in whole or in part, of any building 38 or other improvement, as aforesaid, shall be held to be the agent of the owner 39 for the purpose of this chapter: provided, that the lessee or lessees of any 40 mining claim shall not be considered as the agent or agents of the owner under 41 the provisions of this chapter. 42 For purposes of this chapter the term "furnishing material" shall also 43 include, notwithstanding any other provision of law to the contrary, supply- 2 1 ing, renting or leasing equipment, materials or fixtures as defined in section 2 28-12-309, Idaho Code. 3 "Furnishing material" shall also include renting, leasing or otherwise 4 supplying any equipment, materials, fixtures or machinery to any mine or min- 5 ing claim. 6 SECTION 2. That Section 45-504, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 45-504. LIEN FOR IMPROVING LOTS. Any person who, at the request of the 9 owner of any lot in any incorporated city or town, surveys, grades, fills in, 10 or otherwise improves the same, or who rents, leases or otherwise supplies 11 equipment, materials or fixtures as defined in section 28-12-309, Idaho Code, 12 to such person for the improvement of any lot, or the street in front of or 13 adjoining the same, has a lien upon such lot for his work done or material 14 furnished or equipment, materials or fixtures as defined in section 28-12-309, 15 Idaho Code, rented, leased or otherwise supplied. 16 SECTION 3. That Section 45-505, Idaho Code, be, and the same is hereby 17 amended to read as follows: 18 45-505. LAND SUBJECT TO LIEN. The land upon which or in connection with 19 which any professional services are performed or any building, improvement or 20 structure is constructed, together with a convenient space about the same, or 21 so much as may be required for the convenient use and occupation thereof, to 22 be determined by the court on rendering judgment, is also subject to the lien, 23 if, at the commencement of the furnishing of professional services or other 24 work,or ofthe furnishing of the material, or the renting, leasing or other- 25 wise supplying of equipment, materials or fixtures as defined in section 26 28-12-309, Idaho Code, for the same, the land belonged to the person who 27 caused said professional services to be performed or said building, improve- 28 ment or structure to be constructed, altered or repaired, or such person was 29 acting as the agent of the owner, but if such person owns less than a fee sim- 30 ple estate in such land, then onlyhisthe interest of the person or persons 31 causing the services or improvement therein is subject to such lien. 32 SECTION 4. That Section 45-506, Idaho Code, be, and the same is hereby 33 amended to read as follows: 34 45-506. LIENS PREFERRED CLAIMS. The liens provided for in this chapter 35 shall be on equal footing with those liens within the same class of liens, 36 without reference to the date of the filing of the lien claim or claims and 37 are preferred to any lien, mortgage or other encumbrance, which may have 38 attached subsequent to the time when the building, improvement or structure 39 was commenced, work done, equipment, materials or fixtures were rented or 40 leased, or materials or professional services were commenced to be furnished; 41 also to any lien, mortgage, or other encumbrance of which the lienholder had 42 no notice, and which was unrecorded at the time the building, improvement or 43 structure was commenced, work done, equipment, materials or fixtures were 44 rented or leased, or materials or professional services were commenced to be 45 furnished. 46 SECTION 5. That Section 45-507, Idaho Code, be, and the same is hereby 47 amended to read as follows: 3 1 45-507. CLAIM OF LIEN. (1) Any person claiming a lien pursuant to the 2 provisions of this chapter must, within ninety (90) days after the completion3of the labor or services or furnishing of materials, or the cessation of the4labor, services or furnishing of materials for any cause,file a claim for 5 record with the county recorder for the county in which such property or some 6 part thereof is situated, a claim containing a statement. 7 (2) The claim shall be filed within ninety (90) days after the completion 8 of the labor or services, or furnishing of materials. 9 (3) The claim shall contain: 10 (a) A statement of his demand, after deducting all just credits and off- 11 sets, with the; 12 (b) The name of the owner, or reputed owner, if known, and also; 13 (c) Tthe name of the person by whom he was employed or to whom he fur- 14 nished the materials,; andalso15 (d) Aadescription of the property to be charged with the lien, suffi- 16 cient for identification, which. 17 (4) Such claim must be verified by the oath of the claimant, his agent or 18 attorney, to the effect that the affiant believes the same to be just. 19 (5) A true and correct copy of the claim of lien shall be served on the 20 owner or reputed owner of the property either by delivering a copy thereof to 21 the owner or reputed owner personally or by mailing a copy thereof by certi- 22 fied mail to the owner or reputed owner at his last known address. Such deliv- 23 ery or mailing shall be made no later than twenty-four (24) hours following 24 the filing of said claim of lien. 25 SECTION 6. That Section 45-512, Idaho Code, be, and the same is hereby 26 amended to read as follows: 27 45-512. JUDGMENT TO DECLARE PRIORITY. In every case in which different 28 liens are asserted against any property, the court in the judgment must 29 declare the rank of each lien or class of liens which shall be in the follow- 30 ing order: 31 1. All laborers, other than contractors or subcontractors. 32 2. All materialmen including persons furnishing, renting or leasing 33 equipment, materials or fixtures as defined in section 28-12-309, Idaho Code, 34 other than contractors or subcontractors. 35 3. Subcontractors. 36 4. The original contractor. 37 5. All professional engineers and licensed surveyors. 38 And in case the proceeds of sale under this chapter shall be insufficient 39 to pay all lienholders under it: 40 1. The liens of all laborers, other than the original contractor and sub- 41 contractor, shall first be paid in full, or pro rata if the proceeds be insuf- 42 ficient to pay them in full. 43 2. The lien of materialmen including persons furnishing, renting or leas- 44 ing equipment, materials or fixtures as defined in section 28-12-309, Idaho 45 Code, other than the original contractor or subcontractor, shall be paid in 46 full, or pro rata if the proceeds be insufficient to pay them in full. 47 3. Out of the remainder, if any, the subcontractors shall be paid in 48 full, or pro rata if the remainder be insufficient to pay them in full, and 49 the remainder, if any, shall be paid pro rata to the original contractor and 50 the professional engineers and licensed surveyors; and each claimant shall be 51 entitled to execution for any balance due him after such distribution; such 52 execution to be issued by the clerk of the court upon demand, at the return of 53 the sheriff or other officer making the sale, showing such balance due. 4 1 SECTION 7. That Section 45-515, Idaho Code, be, and the same is hereby 2 amended to read as follows: 3 45-515. ACTION TO RECOVER DEBT. Nothing contained in this chapter shall 4 be construed to impair or affect the right of any person to whom any debt may 5 be due for work done, equipment, materials or fixtures rented or leased or 6 materials furnished, to maintain a personal action to recover such debt 7 against the person liable therefor.
STATEMENT OF PURPOSE RS 10646 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 clarify the law to include lessors of equipment in the mechanics and materialmen's lien statute. Up to the time of the Supreme Court decision, liens have been filed and recovery accomplished and upheld by lower courts. This legislation responds to the Court's recommendation that the legislature clarify the statute. This legislation does not change or interfere with the existing lien laws as they relate to the agricultural community. This legislation merely clarifies that rental equipment is included in the "materials furnished" section of the lien law. FISCAL IMPACT No fiscal impact. Contact: Jerry Deckard 342-8900 STATEMENT OF PURPOSE/FISCAL NOTE H132