By: Moncrief S.B. No. 1374 2001S0754/1 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to imposing liens on aircraft for nonpayment of fuel 1-3 charges. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subsection (a), Section 70.301, Property Code, is 1-6 amended to read as follows: 1-7 (a) A person who stores, fuels, repairs, or performs 1-8 maintenance work on an aircraft has a lien on the aircraft for: 1-9 (1) the amount due under a contract for the storage, 1-10 fuel, repairs, or maintenance work; or 1-11 (2) if no amount is specified by contract, the 1-12 reasonable and usual compensation for the storage, fuel, repairs, 1-13 or maintenance work. 1-14 SECTION 2. Section 70.303, Property Code, is amended to read 1-15 as follows: 1-16 Sec. 70.303. RECORDING OF LIEN. A holder of a lien under 1-17 this subchapter may record the lien on the aircraft by filing with 1-18 the Federal Aviation Administration Aircraft Registry not later 1-19 than the 120th day after the date of the completion of the 1-20 contractual storage period or the performance of the last repair or 1-21 maintenance a verified document in the form and manner required by 1-22 applicable federal laws and regulations that states: 1-23 (1) the name, address, and telephone number of the 1-24 holder of the lien under this subchapter; 1-25 (2) the amount due for storage, fuel, repairs, or 2-1 maintenance; 2-2 (3) a complete description of the aircraft; and 2-3 (4) the name and address of the owner of the aircraft 2-4 and the number assigned the aircraft by the Federal Aviation 2-5 Administration, if known. 2-6 SECTION 3. Subsection (a), Section 70.304, Property Code, is 2-7 amended to read as follows: 2-8 (a) Not later than the 30th day after the date of the 2-9 completion of the contractual storage period or the performance of 2-10 the last fueling, repair, or maintenance, a holder of a lien under 2-11 this subchapter who retains possession of the aircraft shall notify 2-12 the owner shown on the certificate of registration and each holder 2-13 of a lien on the aircraft as shown by the records maintained for 2-14 that purpose by the Federal Aviation Administration Aircraft 2-15 Registry. The notice must state: 2-16 (1) the name, address, and telephone number of the 2-17 holder of the lien under this subchapter; 2-18 (2) the amount due for storage, fuel, repairs, or 2-19 maintenance; 2-20 (3) a complete description of the aircraft; and 2-21 (4) the legal right of the holder of the lien under 2-22 this subchapter to sell the aircraft at public auction and apply 2-23 the proceeds to the amount due. 2-24 SECTION 4. Section 70.305, Property Code, is amended to read 2-25 as follows: 2-26 Sec. 70.305. SALE OF AIRCRAFT. If the holder of a lien 3-1 under this subchapter provides the notice required by Section 3-2 70.304 and the amount due remains unpaid after the 60th day after 3-3 the date of the completion of the contractual storage period or the 3-4 performance of the last fueling, repair, or maintenance, the holder 3-5 of the lien may sell the aircraft at a public sale and apply the 3-6 proceeds to the amount due. The lienholder shall pay any excess 3-7 proceeds to the person entitled to them. 3-8 SECTION 5. This Act takes effect September 1, 2001, and 3-9 applies only to the fueling of an aircraft performed on or after 3-10 that date.