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.