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.