1Establishing the requirements for livery provider liens.

2The General Assembly of the Commonwealth of Pennsylvania
3hereby enacts as follows:

4Section 1. Short title.

5This act shall be known and may be cited as the Livery
6Providers Fair Lien Act.

7Section 2. Definitions.

8The following words and phrases when used in this act shall
9have the meanings given to them in this section unless the
10context clearly indicates otherwise:

11"Boarding stable owner."  A person who owns or operates a
12livery or other similar operation engaging in the sheltering,
13boarding, keeping, grooming, care, exercising or feeding of
14horses on behalf of horse owners for price, fee or reward.

15Section 3. Livery providers lien.

16(a)  Liens.--A boarding stable owner who performs labor upon,
17boards, furnishes services, supplies or provides materials for a

1horse, at the request or with the consent of the owner, shall
2have a lien upon the horse and the right to detain the horse to
3secure the payment of the price or reward.

4(b)  Horse attachment.--A boarding stable owner's lien
5attaches to a horse on the day the horse is placed in the
6owner's care for boarding or other labor by writing a statement
7of the amount due to the owner for the care of the horse and a
8description of the horse on which the lien is claimed.

9Section 4.  Enforcement of lien.

10(a)  Sale.--If a lienholder is not paid the amount due for
11which the lien is given within 30 days after demand has been
12made in writing, the lienholder may proceed to sell the horse to
13satisfy the lien and costs of sale under section 5 if any of the
14following applies:

15(1)  An authorization to conduct a lien sale has been
16issued under this section.

17(2)  A judgment has been entered in favor of the
18lienholder on the claim which gave rise to the lien.

19(3)  The owners and any secured parties of record or
20known lienholders of the horse have signed, after the lien
21has arisen, a release of any interest in the horse.

22(b)  Application.--A lienholder may apply to a magisterial
23district judge or municipal court judge, whichever is
24appropriate, in the county in which the lienholder's business
25establishment is physically located for the issuance of an
26authorization to conduct a lien sale under subsection (c). The
27application shall be executed under penalty of perjury and shall
28include all of the following:

29(1)  A description of the horse.

30(2)  The names and addresses of the owners of the horse

1and the names and addresses of any other persons who the
2lienholder knows claim an interest in the horse.

3(3)  A statement of the amount of the lien and facts
4concerning the claim which gives rise to the lien. If
5compensation for storage is claimed, the per diem rate of
6storage shall be shown.

7(4)  The date, time and place that the horse will be sold
8if the authorization to conduct a lien sale is issued.

9(5)  A statement that the lienholder has no information
10or belief that there is a valid defense to the claim which
11gives rise to the lien.

12(6) A statement that the lienholder will not offer for
13sale or sell the horse for the purposes of slaughter. 

14(c)  Receipt.--Upon receipt of a lien sale application under
15subsection (b), the magisterial district judge or municipal
16court judge shall send all of the following:

17(1)  Notice of the filing of the lien sale application
18within five business days following the receipt of the
19application to all persons known to the lienholder claiming
20an interest in the horse.

21(2)  Notice and a copy of the application by certified
22mail or registered mail, return receipt requested, to each
23owner, and any known lienholders and any other persons whose
24names and addresses are listed in the application. If the
25identity of an owner or party with an interest cannot be
26determined with reasonable certainty, section 6 shall have
27the same effect as if notice were sent by certified or
28registered mail. The notice shall include all the following:

29(i)  A statement that a lien sale application has
30been made with the magisterial district judge or

1municipal court judge for the issuance of an
2authorization to conduct a lien sale.

3(ii)  A statement that the person has a legal right
4to a hearing in court. If a hearing in court is desired,
5the enclosed declaration under penalty of perjury shall
6be signed and returned and if the declaration is signed
7and returned, the lienholder shall be allowed to sell the
8horse, motor vehicle or accessory only if the lienholder
9obtains a judgment in court or obtains a release from the
10owners and any known lienholders.

11(iii)  A statement that if the declaration is signed
12and returned, a hearing shall be promptly scheduled and
13the owners may then appear to contest the claim of the
14lienholder.

15(iv)  A statement of the date, time and place that
16the horse will be sold if the authorization to conduct a
17lien sale is issued.

18(v)  A statement that the magisterial district judge
19and municipal court judge shall issue the authorization
20to conduct a lien sale unless the person signs and
21returns, within 20 days after the date on which the
22notice was mailed, the enclosed declaration stating that
23the person desires to contest the claim which gives rise
24to the lien.

25(vi)  A statement that the person shall be liable for
26costs if a judgment is entered in favor of the lienholder
27on the claim which gives rise to the lien.

28(vii)  A declaration that shall be executed by the
29person under penalty of perjury stating that the person
30desires to contest the claim which gives rise to the lien

1and that the person has a valid defense to the claim and
2shall furnish names and addresses where official notice
3may be received of any persons, including the person
4desiring to contest the claim, known to claim an interest
5in the horse on the hearing date.

6(3)  If a magisterial district judge or a municipal court
7judge receives a declaration described in paragraph (2)(ii),
8which is mailed within 20 days after the date upon which the
9notice described in this subsection is mailed, the
10magisterial district judge or a municipal court judge shall
11notify the lienholder and owners and any other person listed
12in the application or declaration of the hearing date, unless
13the owners of the horse and any known lienholders have
14signed, after the lien has arisen, a release of any interest
15in the horse.

16(4)  In any hearing, the lienholder may have the amount
17of the indebtedness and right to sale determined and the
18person requesting the hearing may present and have determined
19any defenses, setoffs, counterclaims, cross-claims or third-
20party actions.

21(5)  Any fees shall be recoverable as a cost by the
22lienholder if a sale is conducted.

23Section 5.  Release of owner's interest.

24(a)  Release.--An owner of a horse subject to a lien under
25section 3 may release any interest in the horse after the lien
26has risen. The release shall be dated when signed and a copy
27shall be given at the time the release is signed to the person
28releasing the interest.

29(b)  Information.--The release shall contain all of the
30following information:

1(1)  A description of the horse.

2(2)  The names and addresses of the owners.

3(3)  A statement of the amount of the lien and the facts
4concerning the claim which gives rise to the lien.

5(4)  A statement that the person releasing the interest
6understands that the person has a legal right to a hearing in
7court before any sale of the horse to satisfy the lien and
8the person is giving up the right to appear to contest the
9claim of the lienholder.

10(5)  A statement that the person releasing the interest
11gives up any interest the person may have in the horse and
12the person is giving the lienholder permission to sell the
13horse.

14(6)  A statement that there is no other persons or
15lienholders who have an outstanding interest in the horse.

16Section 6.  Notice of lien sale, disposition of proceeds.

17(a)  Horse sale notice.--Before the sale of a horse to
18satisfy a lien, to the lienholder shall give no less than 15
19days notice of the sale by posting notice of the sale in two
20newspapers of general circulation within the county of the horse
21owner's residence and the county of the boarding stable owner's
22place of business.

23(b)  Proceeds.--The proceeds of the sale shall be applied to
24the discharge of the lien and the cost of keeping and selling
25the horse. The balance, if any, of the proceeds of the sale
26shall be deposited no later than ten days from the date of the
27sale with the court to be applied by the magisterial district
28judge or municipal court judge to the payment of any lien or
29security interest to which the horse may be subject in the order
30of their priority, with any remaining proceeds to be paid to the

1owners of the horse sold, but in case the owners cannot be
2found, the balance shall be turned over no later than 60 days
3from the date of the sale to the State Treasurer, who shall
4create a special fund and who shall pay to the owner the moneys
5left if a claim is made within one year of the sale, or deposit
6the moneys in the General Fund if no claim is made within one
7year of the sale.

8Section 7.  Priority of lien.

9All liens created under this act shall be superior to any
10lien, title or interest of any person who has a security
11interest by virtue of a conditional sale contract or a prior
12perfected security interest in accordance with the laws of this
13Commonwealth.

14Section 8.  Effective date.

15This act shall take effect in 60 days.