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.