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F I S C A L I M P A C T R E P O R T

SPONSOR Gardner

ORIGINAL DATE

LAST UPDATED

2/16/07

HB 1078

SHORT TITLE Aircraft Liens & Destruction

SB

ANALYST Wilson

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY07

FY08

FY09 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

$0.1

$0.1

$0.1

Recurring General

Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Conflicts with SB 793

Duplicates SB 828

SOURCES OF INFORMATION

LFC Files

Responses Received From

Administrative Office of the Courts (AOC)

Attorney General’s Office (AGO)

SUMMARY

Synopsis of Bill

House Bill 1078 amends Section 48-3-29 NMSA 1978 to provide for enforcement of a perfected

lien upon an aircraft registered in a foreign country or upon an aircraft for which no record of

registration with the Federal Aviation Administration (FAA) can be found. The lien is to be

enforced by judgment of the court having jurisdiction in the county where the lien is filed and a

writ of execution pursuant to that judgment. The court may award reasonable attorney fees to

the prevailing party.

HB 1078 also provides that in the event that an aircraft is to be dismantled or destroyed, it is not

necessary, following execution of a judgment, to transfer title to the aircraft under the provisions

of the foreign registry or the FAA to the purchaser at a sheriff’s sale. Under the bill, notice of

the dismantling or destruction and the termination of registration, however, shall be provided by

the purchaser to the FAA or the seat of the foreign registry. HB 1078 provides that the sheriff’s

bill of sale is sufficient to transfer the aircraft for the purpose of dismantling and destruction.

The bill has an emergency clause

House Bill 1078– Page

2

FISCAL IMPLICATIONS

There will be a minimal administrative cost for statewide update, distribution and documentation

of statutory changes. Any additional fiscal impact on the judiciary would be proportional to the

enforcement of this law and enforcement of additional aircraft liens. New laws, amendments to

existing laws and new hearings have the potential to increase caseloads in the courts, thus

requiring additional resources to handle the increase.

SIGNIFICANT ISSUES

HB 1078 is a duplicate of SB 828 which is, in effect, a substitute for SB 793 which appears to be

substantively the same as HB 1078 and SB 828. It appears that technical changes have been

made to clarify actions and to comport with industry language and requirements.

SB 793

•

“aircraft liens pursuant to this section…"

•

“…it is not necessary, following the

execution of a judgment, to transfer the

aircraft pursuant to…"

•

“…to the purchaser at a sale enforcing the

lien…"

•

“…notice of the dismantling or destruction

and the de-registration shall be provided by

the purchaser to the federal aviation

administration or the foreign country of

registration."

•

“The bill of sale from a sale to enforce the

lien shall be sufficient to transfer the

aircraft…"

HB 1078/SB 828

•

“aircraft liens pursuant to this section for a

sum due for storing, maintaining or

repairing an aircraft for labor furnished, for

accessories or materials and for all costs

incurred in enforcing the lien…"

•

“…it shall not be necessary, following

execution of a judgment to transfer title to

the aircraft under the provisions of…"

(emphasis added)

•

“…to the purchaser at a sheriff’s sale…"

•

“…notice of the destruction or dismantling

and of the termination of the registration

shall be provided by the purchaser to the

federal aviation administration or the seat

of the foreign registry."

•

“The sheriff’s bill of sale shall be sufficient

to transfer the aircraft…"

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

HB 1078 duplicates SB 828 and conflicts with SB 793.

DW/nt