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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 - 2001
IN 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 in
22 part, 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 of the 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 only his the 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 completion
3 of the labor or services or furnishing of materials, or the cessation of the
4 labor, 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,; and also
15 (d) Aa description 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