BILL ANALYSIS


                                                        H.B. 2656
                                            By: Hartnett (Leedom)
                                             Economic Development
                                                         05-25-95
                              Senate Committee Report (Unamended)
BACKGROUND

In 1989, the 71st Legislature enacted Section 70.301, Property
Code, to provide a lien for repair or maintenance work on aircraft. 
However, a 1994 court case held that the statute does not apply to
storage of aircraft.  Many other states, such as Arizona, Arkansas,
and Connecticut provide aircraft storage liens. 

PURPOSE

As proposed, H.B. 2656 authorizes a lien to a person who stores
aircraft to secure payment under a contract for storage.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

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

     Sec.  70.301.  LIEN.  (a)  Provides that a person who stores,
     repairs, or performs maintenance work on an aircraft has a
     lien on the aircraft.  Makes conforming changes.
     
     (b)  Provides that this subchapter applies to a contract for
       storage only if it is written or oral and provides for a
       storage period of at least 30 days.
       
            Sec.  70.303.  RECORDING OF LIEN.  Authorizes a holder of a
     lien to record the lien on the aircraft by filing with the
     Federal Aviation Administration Aircraft Registry by 120 days
     after the completion of the contractual storage period a
     verified document stating certain information.
     
     Sec.  70.304.  NOTICE TO OWNER AND LIENHOLDERS.  Makes
     conforming changes.
     
     Sec.  70.305.  SALE OF AIRCRAFT.  Makes conforming changes.
     
     SECTION 2.     Emergency clause.
           Effective date:  90 days after adjournment.