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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
pg_0002
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