2001 Legislation
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SENATE BILL NO. 1083 – Aircraft liens, recording

SENATE BILL NO. 1083

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Daily Data Tracking History



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

Bill Text


                                                                        
                                                                        
  ||||              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.

Amendment


                                                                        
                                                                        
  ||||              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.".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ||||              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 / Fiscal Impact


                                
                      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