2001 Legislation
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HOUSE BILL NO. 132 – Equipment, lease/rent, liens

HOUSE BILL NO. 132

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Daily Data Tracking History



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

Bill Text


                                                                        
                                                                        
  ||||              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 / Fiscal Impact


                      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