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S1083aa.....................................by COMMERCE AND HUMAN RESOURCES
AIRCRAFT LIENS - Adds to existing law to provide for aircraft improvement
liens; to provide for the duration of the lien; to define "owner"; to
provide for claim of lien; to provide for sale of the aircraft; to provide
for priority of aircraft improvement liens; to provide for release and
discharge of the lien; to provide for joinder of actions; and to provide
for filing fees as costs and attorney's fees.
02/07 Senate intro - 1st rdg - to printing
02/08 Rpt prt - to Com/HuRes
02/22 Rpt out - to 14th Ord
Rpt out amen - to engros
02/23 Rpt engros - 1st rdg - to 2nd rdg as amen
02/26 2nd rdg - to 3rd rdg as amen
03/05 3rd rdg as amen - PASSED - 34-0-1
AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
Burtenshaw, Cameron, Danielson, Darrington, Davis, Deide, Dunklin,
Frasure, Geddes, Goedde, Hawkins, Ingram, Ipsen, King-Barrutia, Lee,
Lodge, Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen,
Stegner, Stennett, Thorne, Wheeler, Whitworth, Williams,
NAYS -- None
Absent and excused -- Keough
Floor Sponsor -- Dunklin
Title apvd - to House
03/06 House intro - 1st rdg - to Bus
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE SENATE
SENATE BILL NO. 1083
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO MISCELLANEOUS LIENS; AMENDING CHAPTER 8, TITLE 45, IDAHO CODE, BY
3 THE ADDITION OF A NEW SECTION 45-806A, IDAHO CODE, TO PROVIDE FOR THE
4 RECORDING OF AIRCRAFT LIENS WITH THE FEDERAL AVIATION ADMINISTRATION, TO
5 REQUIRE CERTAIN CONTENT FOR LIENS AND TO PROVIDE A TIME LIMIT FOR RECORD-
6 ING LIENS.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Chapter 8, Title 45, Idaho Code, be, and the same is
9 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
10 ignated as Section 45-806A, Idaho Code, and to read as follows:
11 45-806A. RECORDING AIRCRAFT LIEN. (1) A person, firm or corporation who
12 has a lien on an aircraft pursuant to section 45-806, Idaho Code, may record
13 the lien with the federal aviation administration pursuant to the regulations
14 of the federal aviation administration.
15 (2) A lien recorded with the federal aviation administration must include
16 the following:
17 (a) The name of the lienholder;
18 (b) The name of the owner or reputed owner of the aircraft;
19 (c) A description of the aircraft including the make and model,
20 manufacturer's serial number and United States registration number;
21 (d) The amount claimed to be due;
22 (e) The date the labor or services giving rise to the lien was completed;
23 (f) The signature of the lienholder or the lienholder's attorney; and
24 (g) Verification by the lienholder or by someone on behalf of the lien-
25 holder who has personal knowledge of the facts.
26 (3) The lien must be recorded within ninety (90) days after the comple-
27 tion of the labor or services giving rise to the lien.
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
Moved by Dunklin
Seconded by Davis
IN THE SENATE
SENATE AMENDMENT TO S.B. NO. 1083
1 AMENDMENT TO THE BILL
2 On page 1 of the printed bill, delete lines 8 through 27 and insert:
3 "SECTION 1. That Title 45, Idaho Code, be, and the same is hereby amended
4 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
5 ter 11, Title 45, Idaho Code, and to read as follows:
6 CHAPTER 11
7 AIRCRAFT IMPROVEMENT LIENS
8 45-1101. AIRCRAFT IMPROVEMENT LIENS -- DURATION OF LIEN -- "OWNER"
9 DEFINED. (1) A person who alters, repairs or otherwise labors upon or fur-
10 nishes materials for an aircraft at the request of the owner of the aircraft
11 has a lien on such aircraft for the contract price of the labor performed and
12 materials furnished or, in the absence of a contract price, for the reasonable
13 value of such labor or materials, and may keep possession of the aircraft
14 until such charges are paid.
15 (2) A lien recorded pursuant to the provisions of this chapter shall bind
16 an aircraft for a period of not more than ninety (90) days after the lien is
17 recorded or, if credit is given, within ninety (90) days after the expiration
18 of such credit.
19 (3) A lien shall not be effective for more than one (1) year following
20 the completion or cessation of services, notwithstanding any agreement of the
21 parties.
22 (4) For purposes of this chapter, an "owner" of an aircraft means:
23 (a) A person in possession of the aircraft under an agreement to purchase
24 such aircraft, regardless of whether the person or the vendor holds title
25 to the aircraft; and
26 (b) A person in lawful possession of the aircraft.
27 45-1102. CLAIM OF LIEN. (1) Before return of the aircraft to the owner,
28 and not more than ninety (90) days after the completion or cessation of any
29 labor performed or materials furnished, the lien claimant shall record a lien
30 claim with the federal aviation administration as a conveyance affecting title
31 to the aircraft.
32 (2) The claim provided in subsection (1) of this section shall state:
33 (a) The name of the claimant;
34 (b) The name of the owner;
35 (c) The make and model of the aircraft, the manufacturer's serial number,
36 the United States registration number or other details which sufficiently
37 identify the aircraft;
38 (d) The amount for which the lien is claimed;
39 (e) The date upon which the labor was completed or ceased or the mate-
40 rials were furnished; and
41 (f) Any other requirements for recording promulgated by the federal avia-
2
1 tion administration.
2 (3) The claim shall be signed by the claimant or the claimant's agent or
3 attorney. The claim does not need to be verified, and signatures of represen-
4 tatives of the claimant's company do not need to be acknowledged before a
5 notary.
6 (4) The claim shall be submitted to the federal aviation administration
7 in a form prescribed by, or acceptable to, the administrator of the federal
8 aviation administration and shall be substantially in the following form:
9 ........................................................Claimant
10 v.
11 .......................................................Defendant
12 Notice is hereby given that ................. claims a lien upon
13 the aircraft described as:
14 Make:......................................................
15 Model:.....................................................
16 Serial number:.............................................
17 U.S. registration number:..................................
18 Owner or reputed owner:....................................
19 Date service began:........................................
20 Date service terminated:...................................
21 Amount claimed:............................................
22 Amount already paid:.......................................
23 Amount due under claim of lien for labor and materials
24 expended:..................................................
25 45-1103. SALE OF AIRCRAFT -- NOTICE. (1) If the charges for the labor
26 performed and materials furnished as specified in section 45-1101, Idaho Code,
27 are not paid within three (3) months after the labor is performed or materials
28 are furnished, the person having the lien may sell the aircraft at a public
29 auction and may apply the proceeds of such sale in the following manner:
30 (a) To the payment of the expenses of the sale;
31 (b) To the discharge of the lien; and
32 (c) The balance of the proceeds to the owner of the aircraft.
33 (2) The sale shall be held in the county in which the aircraft is deliv-
34 ered for alteration or repair.
35 (3) Before the sale as provided in this section is made, notice of the
36 sale shall be given to the debtor by registered letter directed to the
37 debtor's last known address and also by posting a notice of the sale in three
38 (3) public places in the applicable county, one (1) of which shall be at or
39 near the front door of the post office nearest the place of the sale, for ten
40 (10) days prior to the day of the sale. The notice shall contain a particular
41 description of the aircraft to be sold, the name of the owner of the aircraft,
42 the amount due on the aircraft lien for labor and materials, and the time and
43 place of the sale.
44 45-1104. PRIORITY OF LIEN. (1) An aircraft improvement lien, when
45 recorded in accordance with the provisions of section 45-1102, Idaho Code,
46 shall take priority over any security interest in the aircraft which is
47 recorded with the federal aviation administration prior to the date of the
48 provision of labor or materials, provided that the person who makes, alters or
49 repairs the aircraft, at least three (3) days before providing such services,
50 gives notice of the intention to provide such services by registered mail to
51 any holder of a security interest which has been recorded with the federal
52 aviation administration. If such holder of a security interest does not,
53 within three (3) days before the intended provision of services, give written
3
1 notice to the person not to perform such services, the person may provide such
2 services and the lien provided herein attaches to the aircraft.
3 (2) In every case in which more than one (1) lien is asserted against an
4 aircraft, the court shall rank each lien or class of liens in the following
5 order:
6 (a) Security interests recorded prior to the performance of labor or fur-
7 nishing of materials if the secured party has, within the three (3) day
8 notice period provided in this section, instructed a provider of services
9 not to provide such services;
10 (b) Liens obtained pursuant to this chapter;
11 (c) Security interests recorded prior to the performance of labor or fur-
12 nishing of materials where the secured party has not, within the three (3)
13 day notice period provided in this section, instructed a provider of ser-
14 vices not to provide such services;
15 (d) Security interests or liens recorded or arising after a provider of
16 services under this chapter has begun provision of such services.
17 45-1105. RELEASE OR DISCHARGE OF LIEN. (1) A lien under this chapter may
18 be released and discharged by the lien claimant or the lien claimant's agent
19 by filing a release of lien with the federal aviation administration in a form
20 provided by, or acceptable to, the administrator of the federal aviation
21 administration.
22 (2) A lien claimant shall discharge any lien filed pursuant to this chap-
23 ter within fifteen (15) days of satisfaction of the lien.
24 45-1106. JOINDER OF ACTIONS -- FILING FEES AS COSTS -- ATTORNEY'S FEES.
25 Any number of persons claiming liens against the same aircraft may join in the
26 same action, and when separate actions are commenced the court may consolidate
27 them. The court shall also allow as part of the costs the moneys paid for fil-
28 ing and recording the claim, and reasonable attorney's fees.".
29 CORRECTION TO TITLE
30 On page 1, delete lines 2 through 6 and insert: "RELATING TO AIRCRAFT
31 IMPROVEMENT LIENS; AMENDING TITLE 45, IDAHO CODE, BY THE ADDITION OF A NEW
32 CHAPTER 11, TITLE 45, IDAHO CODE, TO PROVIDE FOR AIRCRAFT IMPROVEMENT LIENS,
33 TO PROVIDE FOR DURATION OF LIEN AND TO DEFINE THE TERM "OWNER," TO PROVIDE FOR
34 CLAIM OF LIEN, TO PROVIDE FOR SALE OF AIRCRAFT AND TO PROVIDE FOR NOTICE OF
35 SALE, TO PROVIDE FOR PRIORITY OF AIRCRAFT IMPROVEMENT LIENS, TO PROVIDE FOR
36 RELEASE AND DISCHARGE OF LIEN, TO PROVIDE FOR JOINDER OF ACTIONS AND TO PRO-
37 VIDE FOR FILING FEES AS COSTS AND ATTORNEY'S FEES.".
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE SENATE
SENATE BILL NO. 1083, As Amended
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO AIRCRAFT IMPROVEMENT LIENS; AMENDING TITLE 45, IDAHO CODE, BY THE
3 ADDITION OF A NEW CHAPTER 11, TITLE 45, IDAHO CODE, TO PROVIDE FOR AIR-
4 CRAFT IMPROVEMENT LIENS, TO PROVIDE FOR DURATION OF LIEN AND TO DEFINE THE
5 TERM "OWNER," TO PROVIDE FOR CLAIM OF LIEN, TO PROVIDE FOR SALE OF AIR-
6 CRAFT AND TO PROVIDE FOR NOTICE OF SALE, TO PROVIDE FOR PRIORITY OF AIR-
7 CRAFT IMPROVEMENT LIENS, TO PROVIDE FOR RELEASE AND DISCHARGE OF LIEN, TO
8 PROVIDE FOR JOINDER OF ACTIONS AND TO PROVIDE FOR FILING FEES AS COSTS AND
9 ATTORNEY'S FEES.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Title 45, Idaho Code, be, and the same is hereby amended
12 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
13 ter 11, Title 45, Idaho Code, and to read as follows:
14 CHAPTER 11
15 AIRCRAFT IMPROVEMENT LIENS
16 45-1101. AIRCRAFT IMPROVEMENT LIENS -- DURATION OF LIEN -- "OWNER"
17 DEFINED. (1) A person who alters, repairs or otherwise labors upon or fur-
18 nishes materials for an aircraft at the request of the owner of the aircraft
19 has a lien on such aircraft for the contract price of the labor performed and
20 materials furnished or, in the absence of a contract price, for the reasonable
21 value of such labor or materials, and may keep possession of the aircraft
22 until such charges are paid.
23 (2) A lien recorded pursuant to the provisions of this chapter shall bind
24 an aircraft for a period of not more than ninety (90) days after the lien is
25 recorded or, if credit is given, within ninety (90) days after the expiration
26 of such credit.
27 (3) A lien shall not be effective for more than one (1) year following
28 the completion or cessation of services, notwithstanding any agreement of the
29 parties.
30 (4) For purposes of this chapter, an "owner" of an aircraft means:
31 (a) A person in possession of the aircraft under an agreement to purchase
32 such aircraft, regardless of whether the person or the vendor holds title
33 to the aircraft; and
34 (b) A person in lawful possession of the aircraft.
35 45-1102. CLAIM OF LIEN. (1) Before return of the aircraft to the owner,
36 and not more than ninety (90) days after the completion or cessation of any
37 labor performed or materials furnished, the lien claimant shall record a lien
38 claim with the federal aviation administration as a conveyance affecting title
39 to the aircraft.
40 (2) The claim provided in subsection (1) of this section shall state:
41 (a) The name of the claimant;
2
1 (b) The name of the owner;
2 (c) The make and model of the aircraft, the manufacturer's serial number,
3 the United States registration number or other details which sufficiently
4 identify the aircraft;
5 (d) The amount for which the lien is claimed;
6 (e) The date upon which the labor was completed or ceased or the mate-
7 rials were furnished; and
8 (f) Any other requirements for recording promulgated by the federal avia-
9 tion administration.
10 (3) The claim shall be signed by the claimant or the claimant's agent or
11 attorney. The claim does not need to be verified, and signatures of represen-
12 tatives of the claimant's company do not need to be acknowledged before a
13 notary.
14 (4) The claim shall be submitted to the federal aviation administration
15 in a form prescribed by, or acceptable to, the administrator of the federal
16 aviation administration and shall be substantially in the following form:
17 ........................................................Claimant
18 v.
19 .......................................................Defendant
20 Notice is hereby given that ................. claims a lien upon
21 the aircraft described as:
22 Make:......................................................
23 Model:.....................................................
24 Serial number:.............................................
25 U.S. registration number:..................................
26 Owner or reputed owner:....................................
27 Date service began:........................................
28 Date service terminated:...................................
29 Amount claimed:............................................
30 Amount already paid:.......................................
31 Amount due under claim of lien for labor and materials
32 expended:..................................................
33 45-1103. SALE OF AIRCRAFT -- NOTICE. (1) If the charges for the labor
34 performed and materials furnished as specified in section 45-1101, Idaho Code,
35 are not paid within three (3) months after the labor is performed or materials
36 are furnished, the person having the lien may sell the aircraft at a public
37 auction and may apply the proceeds of such sale in the following manner:
38 (a) To the payment of the expenses of the sale;
39 (b) To the discharge of the lien; and
40 (c) The balance of the proceeds to the owner of the aircraft.
41 (2) The sale shall be held in the county in which the aircraft is deliv-
42 ered for alteration or repair.
43 (3) Before the sale as provided in this section is made, notice of the
44 sale shall be given to the debtor by registered letter directed to the
45 debtor's last known address and also by posting a notice of the sale in three
46 (3) public places in the applicable county, one (1) of which shall be at or
47 near the front door of the post office nearest the place of the sale, for ten
48 (10) days prior to the day of the sale. The notice shall contain a particular
49 description of the aircraft to be sold, the name of the owner of the aircraft,
50 the amount due on the aircraft lien for labor and materials, and the time and
51 place of the sale.
52 45-1104. PRIORITY OF LIEN. (1) An aircraft improvement lien, when
53 recorded in accordance with the provisions of section 45-1102, Idaho Code,
3
1 shall take priority over any security interest in the aircraft which is
2 recorded with the federal aviation administration prior to the date of the
3 provision of labor or materials, provided that the person who makes, alters or
4 repairs the aircraft, at least three (3) days before providing such services,
5 gives notice of the intention to provide such services by registered mail to
6 any holder of a security interest which has been recorded with the federal
7 aviation administration. If such holder of a security interest does not,
8 within three (3) days before the intended provision of services, give written
9 notice to the person not to perform such services, the person may provide such
10 services and the lien provided herein attaches to the aircraft.
11 (2) In every case in which more than one (1) lien is asserted against an
12 aircraft, the court shall rank each lien or class of liens in the following
13 order:
14 (a) Security interests recorded prior to the performance of labor or fur-
15 nishing of materials if the secured party has, within the three (3) day
16 notice period provided in this section, instructed a provider of services
17 not to provide such services;
18 (b) Liens obtained pursuant to this chapter;
19 (c) Security interests recorded prior to the performance of labor or fur-
20 nishing of materials where the secured party has not, within the three (3)
21 day notice period provided in this section, instructed a provider of ser-
22 vices not to provide such services;
23 (d) Security interests or liens recorded or arising after a provider of
24 services under this chapter has begun provision of such services.
25 45-1105. RELEASE OR DISCHARGE OF LIEN. (1) A lien under this chapter may
26 be released and discharged by the lien claimant or the lien claimant's agent
27 by filing a release of lien with the federal aviation administration in a form
28 provided by, or acceptable to, the administrator of the federal aviation
29 administration.
30 (2) A lien claimant shall discharge any lien filed pursuant to this chap-
31 ter within fifteen (15) days of satisfaction of the lien.
32 45-1106. JOINDER OF ACTIONS -- FILING FEES AS COSTS -- ATTORNEY'S FEES.
33 Any number of persons claiming liens against the same aircraft may join in the
34 same action, and when separate actions are commenced the court may consolidate
35 them. The court shall also allow as part of the costs the moneys paid for fil-
36 ing and recording the claim, and reasonable attorney's fees.
STATEMENT OF PURPOSE
RS 10720
This bill is designed to provide needed protection for Idaho
companies involved in aircraft maintenance and repair. Under
current federal law, artisan s (or mechanic s) liens for repairs
and maintenance performed on aircraft cannot be filed with the
Federal Aviation Agency (FAA) central registry unless the state
law creating those liens contains certain simple elements to
ensure uniform and nondiscriminatory standards nationwide. For
example, the FAA wants state law to require such items as the time
within which a claim must be recorded, who may sign the claim,
where it is to be filed, etc. Currently, Idaho law does not
contain those elements. By amending Idaho s code, Idaho companies
could take advantage of a powerful method of ensuring proper
payment for their services.
FISCAL IMPACT
This bill has no fiscal impact on the State of Idaho, state
recording office or county. All FAA filings will be made in
Oklahoma.
Contact
Name: Charles Herrington, Herrington Law Offices
Phone:
422 0187
Sen. Betsy Dunklin
STATEMENT OF PURPOSE/FISCAL NOTE S 108