SENATE BILL REPORT

SB 5471

BYSenator Smith

Describing the lien procedure for garage keepers.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 13, 1989

Senate Staff:Charles A. Woods (786-7452)

AS OF FEBRUARY 27, 1989

BACKGROUND:

Automobile mechanics who perform repairs, provide parts, or store vehicles are entitled to a chattel lien to assure payment for services rendered.  To place a lien on the title of an automobile, a mechanic must be in possession of the automobile at the time he or she appears at the county auditor's office to file such a lien.  Mechanics do not have the authority presently to detain an automobile in their possession to obtain a lien on the title.

SUMMARY:

A possessory lien is created for garage keepers who perform repairs to an automobile at the request of the registered owner.  After the furnishing of labor or parts, a garage keeper may detain a vehicle any time it is in his or her possession within 90 days.  If charges for parts or labor are not paid within 45 days a garage keeper may initiate a lien sale of the vehicle.  Sale of the automobile may take place at least 20 days but not more than 60 days after the end of the 45-day period.  The mechanic must provide at least 10 days notice of impending lien sale to the registered owner, all identified lienholders and the Department of Licensing.  Liens for labor and materials take priority over all prior lienholders.  Distribution of proceeds from the lien sale is provided for.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested