Bill Text: PA HB2311 | 2011-2012 | Regular Session | Introduced

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Bill Title: Establishing the requirements for livery and automobile service providers' liens.

Spectrum: Moderate Partisan Bill (Republican 15-4)

Status: (Introduced - Dead) 2012-04-16 - Referred to JUDICIARY [HB2311 Detail]

Download: Pennsylvania-2011-HB2311-Introduced.html

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PRINTER'S NO. 3384
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2311 Session of2012
INTRODUCED BY MILLER, CALTAGIRONE, CREIGHTON, DALEY, DENLINGER, DePASQUALE, EVERETT, GILLESPIE, GINGRICH, HESS, MANN, METZGAR, MILLARD, PICKETT, SCHRODER, SWANGER, TALLMAN, TAYLOR AND VULAKOVICH, APRIL 16, 2012
REFERRED TO COMMITTEE ON JUDICIARY, APRIL 16, 2012
AN ACT
Establishing the requirements for livery and automobile service
providers' liens.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Pennsylvania
Livery and Automobile Service Providers Fair Lien Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Automobile service provider." A person who owns or operates
a motor vehicle service station, garage or similar operation
engaging in the repairing, servicing, modifying or furnishing
supplies or accessories for motor vehicles or an accessory used
in the operation of a motor vehicle for price, fee or reward.
"Boarding stable owner." A person who owns or operates a
livery or other similar operation engaging in the sheltering,
boarding, keeping, grooming, care, exercising or feeding of
horses on behalf of horse owners for price, fee or reward.
"Department." The Department of Transportation of the
Commonwealth.
Section 3. Livery and automobile service providers' lien.
(a) Liens.--Any boarding stable owner or automobile service
provider who performs labor upon, boards, furnishes services,
supplies or provides materials for any horse or motor vehicle or
accessory thereof used in the riding of the horse or operation
of a motor vehicle, at the request or with the consent of the
owner, shall have a lien upon such horse, motor vehicle or
accessory and the right to detain the same to secure the payment
of such price or reward.
(b) Automobile attachment.--An automobile service provider's
lien attaches to a vehicle on the day the automobile service
provider performs the last labor, repair, service, modification
or furnishes the last supplies or materials for which the lien
is claimed against the vehicle or accessory.
(c) Horse attachment.--A boarding stable owner's lien
attaches to a horse on the day the horse is placed in his care
for boarding or such other labor by writing a statement of the
amount due him for the care of the horse and a description of
the horse on which the lien is claimed.
Section 4. Enforcement of lien.
(a) Sale.--If a lienholder is not paid the amount due for
which the lien is given within 30 days after demand has been
made in writing, then the lienholder may proceed to sell the
horse, motor vehicle or accessory, or so much thereof as may be
necessary, to satisfy the lien and costs of sale under section 5
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if one of the following applies:
(1) An authorization to conduct a lien sale has been
issued under this section.
(2) A judgment has been entered in favor of the
lienholder on the claim which gave rise to the lien.
(3) The owners and any secured parties of record or
known lienholders of the property have signed, after the lien
has arisen, a release of any interest in the property. In the
case of motor vehicles, said release shall be in a form
prescribed by department regulation.
(b) Application.--A lienholder may apply to a magisterial
district judge or municipal court judge, whichever is
appropriate, in the county in which the lienholder's business
establishment is physically located for the issuance of an
authorization to conduct a lien sale under subsection (c). The
application shall be executed under penalty of perjury and shall
include all of the following:
(1) A description of the horse, motor vehicle or
accessory.
(2) The names and addresses of the owners of the horse,
motor vehicle or accessory and the names and addresses of any
other persons who the lienholder knows claim an interest in
the horse, motor vehicle or accessory.
(3) A statement of the amount of the lien and facts
concerning the claim which gives rise to the lien. If
compensation for storage is claimed, the per diem rate of
storage shall be shown.
(4) The date, time and place that the property will be
sold if the authorization to conduct a lien sale is issued.
(5) A statement that the lienholder has no information
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or belief that there is a valid defense to the claim which
gives rise to the lien.
(c) Receipt.--Upon receipt of a lien sale application under
subsection (b), the magisterial district judge or municipal
court judge shall:
(1) Send notice of the filing of the lien sale
application within five business days following the receipt
of the application to all persons known to the lienholder
claiming an interest in the horse or accessory. In the case
of a motor vehicle, send notice of the filing of the lien
sale application within five business days following the
receipt of the application to the department, on a form
prescribed by the department, requesting a list of all
persons claiming an interest in the motor vehicle. The
department shall promptly respond to the request within ten
business days following receipt of notice from the
magisterial district judge or municipal court judge, a list
of the names and addresses of all persons possessing an
interest in the motor vehicle as provided on the
certification of title.
(2) Send notice and a copy of the application by
certified mail or registered mail, return receipt requested,
to each owner, person whose interest is duly noted on the
certification of title in the case of a motor vehicle and any
known lienholders and any other person whose name and address
are listed in the application. If the identity of a
registered owner or party with an interest cannot be
determined with reasonable certainty, section 6 shall have
the same effect as if notice were sent by certified or
registered mail. The notice shall include all the following:
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(i) A statement that a lien sale application has
been made with the magisterial district judge or
municipal court judge for the issuance of an
authorization to conduct a lien sale.
(ii) A statement that the person has a legal right
to a hearing in court. If a hearing in court is desired,
the enclosed declaration under penalty of perjury must be
signed and returned and if the declaration is signed and
returned, the lienholder will be allowed to sell the
horse, motor vehicle or accessory only if he obtains a
judgment in court or obtains a release from the owners
and any known lienholders.
(iii) A statement that if the declaration is signed
and returned, a hearing will be promptly scheduled and
the owners may then appear to contest the claim of the
lienholder.
(iv) A statement of the date, time and place that
the property will be sold if the authorization to conduct
a lien sale is issued.
(v) A statement that the magisterial district judge
and municipal court judge will issue the authorization to
conduct a lien sale unless the person signs and returns,
within 20 days after the date on which the notice was
mailed, the enclosed declaration stating that the person
desires to contest the claim which gives rise to the
lien.
(vi) A statement that the person shall be liable for
costs if a judgment is entered in favor of the lienholder
on the claim which gives rise to the lien.
(vii) A declaration which shall be executed by the
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person under penalty of perjury stating that he desires
to contest the claim which gives rise to the lien and
that he has a valid defense to the claim and he shall
furnish names and addresses where official notice may be
received of any person or persons including himself known
to claim an interest in the property on the hearing date.
(3) If a magisterial district judge or a municipal court
judge receives a declaration described in paragraph (2)(ii),
which is mailed within 20 days after the date upon which the
notice described in this subsection is mailed, the
magisterial district judge or a municipal court judge shall
notify the lienholder and owners and any other person listed
in the application or declaration of the hearing date unless
the owners of the property and any known lienholders have
signed, after the lien has arisen, a release of any interest
in the property in a form prescribed by the department in the
case of a motor vehicle or accessory. In any other case, the
magisterial district judge or a municipal court judge shall
issue an authorization to conduct a lien sale.
(4) In any hearing, the lienholder may have the amount
of the indebtedness and right to sale determined and the
person requesting the hearing may present and have determined
any defenses, setoffs, counterclaims, cross-claims or third-
party actions.
(5) Any fees shall be recoverable as a cost by the
lienholder if a sale is conducted.
(6) The form of the applications, notices and
declarations described in this section related to motor
vehicles shall be prescribed by the department.
Section 5. Release of owner's interest.
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(a) Release.--An owner of property subject to a lien under
section 3 may release any interest in the property after the
lien has risen. The release shall be dated when signed and a
copy shall be given at the time the release is signed to the
person releasing the interest.
(b) Information.--The release shall contain all of the
following information:
(1) A description of the property sufficient to identify
it, including the horse or vehicle identification number if
applicable.
(2) The names and addresses of the owners.
(3) A statement of the amount of the lien and the facts
concerning the claim which gives rise to the lien.
(4) A statement that the person releasing the interest
understands that he has a legal right to a hearing in court
prior to any sale of the property to satisfy the lien and he
is giving up the right to appear to contest the claim of the
lienholder.
(5) A statement that the person releasing the interest
gives up any interest he may have in the property and he is
giving the lienholder permission to sell the property.
(6) A statement that there is no other person, persons
or lienholders who have an outstanding interest in the
property.
Section 6. Notice of lien sale, disposition of proceeds.
(a) Automobile sale notice.--In the case of a motor vehicle
or accessory, prior to any such sale the lienholder shall give
at least 15 days' notice of the sale by posting on the Internet
website established and maintained by the department for this
purpose.
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(b) Horse sale notice.--In the case of a horse or accessory,
prior to any such sale the lienholder shall give at least 15
days' notice of the sale by posting notice of the sale in two
newspapers of general circulation within the county of the horse
owner's residence and the county of the boarding stable owner's
place of business.
(c) Proceeds.--The proceeds of the sale shall be applied to
the discharge of the lien and the cost of keeping and selling
the property. The balance, if any, of the proceeds of the sale
shall be deposited no later than ten days from the date of the
sale with the court to be applied by the magisterial district
judge or municipal court judge to the payment of any lien or
security interest to which the property may be subject in the
order of their priority, with any remaining proceeds to be paid
to the owner or owners of the property sold but, in case the
owner or owners cannot be found, the balance shall be turned
over no later than 60 days from the date of the sale, to the
State Treasurer, who shall create a special fund and who shall
pay to the owner the moneys left if a claim is made within one
year of the sale or deposit the moneys in the General Fund if no
claim is made within one year of the sale.
(d) Disposition filing.--In every lien sale involving a
motor vehicle authorized under this act, it shall be the duty of
the lienholder to complete and file with the magisterial
district judge or the municipal court judge an account of the
disposition of proceeds on a form prescribed by the department
within ten business days following the sale. No transfer of or
new certificate of title to the vehicle sold or salvage
certificate shall be issued by the department without proof of
the filing of the disposition of proceeds form with the
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magisterial district judge or municipal court judge.
Section 7. Priority of lien.
All liens created under this act shall be superior to any
lien, title or interest of any person who has a security
interest by virtue of a conditional sale contract or a prior
perfected security interest in accordance with the laws of this
Commonwealth.
Section 8. Department.
The department shall exercise such powers and shall
promulgate regulations necessary for the administration and
enforcement of this act involving motor vehicles.
Section 9. Effective date.
This act shall take effect in 60 days.
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