BILL ANALYSIS



C.S.H.B. 2656
By: Hartnett
4-25-95
Committee Report (Substituted)


BACKGROUND

In 1989, the 71st Legislature enacted Section 70.301, Property Code
to provide a lien for repair or maintenance work on aircraft.  A
1994 court case, however, held that the statute does not apply to
storage of aircraft.  Many other states, such as Arizona, Arkansas,
and Connecticut provide aircraft storage liens.  The Texas Property
Code currently provides many types of storage liens, including
motor vehicles, motor boats, and self-service storage facilities.

PURPOSE

This bill grants a lien to a storer of aircraft to secure payment
under a contract for storage.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends the Property Code Sections 70.301, 70.303,
70.304, and 70.305 as follows:

     Sec. 70.301.  LIEN.  (a) Includes a person who stores an
     aircraft as one eligible for a lien on the aircraft for the
     amount due under the contract or the reasonable and usual
     compensation.

     (b) The contract for storage must be either written or oral,
     and provides for a storage period of at least 30 days.

     Sec. 70.303.  RECORDING OF LIEN.  Provides for the recording
     of the lien in the usual manner for aircraft liens be not
     later than the 120th day after the completion of the
     contractual storage period.

     Sec. 70.304.  NOTICE TO OWNER AND LIENHOLDERS.  Requires
     notice to the owner of the aircraft and each lienholder shown
     in the Federal Aviation Administration Aircraft Registry
     records in the usual manner for aircraft liens not later than
     the 30th day after the completion of the contractual storage
     period.  The notice must include amount due for storage, in
     addition to other criteria already prescribed by law.

     Sec. 70.305.  SALE OF AIRCRAFT.  Allows the public sale of an
     aircraft after the notice required by Section 70.304 is given
     and the amount remains unpaid after the 60th day after the
     completion of the contractual storage period or the
     performance of last repair or maintenance.

SECTION 2.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The difference between H.B. 2656, as introduced and the committee
substitute.

Section 1.  The substitute adds subchapter (b) requires the
contract for storage to be either written or oral, and provide for
a storage period of at least 30 days.

SUMMARY OF COMMITTEE ACTION

The Business and Industry Committee considered H.B. 2656 on April
18, 1995.  The following witnesses testified in favor of H.B. 2656: 
James L. Leverenz, representing himself; and Barton Fuchs,
representing himself.  Without objection, H.B. 2656 was left
pending before the committee.  H.B. 2656 was reconsidered by the
committee on April 25, 1995.  The committee considered a complete
committee substitute for the bill.  The substitute was adopted
without objection.  H.B. 2656, as substituted, was reported
favorably with the recommendation that it do pass and be printed
and be sent to the Committee on Local and Consent Calendars, by a
record vote of 8 (eight) ayes, 0 (zero) nays, 0 (zero) present-not-voting, 1 (one) absent.