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.

<-9(c) Governing law.--A lien arising under this act shall
10constitute an agricultural lien subject to 13 Pa.C.S. Div. 9
11(relating to secured transactions).

<-12Section 4.  Enforcement of lien.

13(a)  Sale.--If a lienholder is not paid the amount due for
14which the lien is given within 30 days after demand has been
15made in writing, the lienholder may proceed to sell the horse to
16satisfy the lien and costs of sale under section 5 if any of the
17following applies:

18(1)  An authorization to conduct a lien sale has been
19issued under this section.

20(2)  A judgment has been entered in favor of the
21lienholder on the claim which gave rise to the lien.

22(3)  The owners and any secured parties of record or
23known lienholders of the horse have signed, after the lien
24has arisen, a release of any interest in the horse.

25(b)  Application.--A lienholder may apply to a magisterial
26district judge or municipal court judge, whichever is
27appropriate, in the county in which the lienholder's business
28establishment is physically located for the issuance of an
29authorization to conduct a lien sale under subsection (c). The
30application shall be executed under penalty of perjury and shall

1include all of the following:

2(1)  A description of the horse.

3(2)  The names and addresses of the owners of the horse
4and the names and addresses of any other persons who the
5lienholder knows claim an interest in the horse.

6(3)  A statement of the amount of the lien and facts
7concerning the claim which gives rise to the lien. If
8compensation for storage is claimed, the per diem rate of
9storage shall be shown.

10(4)  The date, time and place that the horse will be sold
11if the authorization to conduct a lien sale is issued.

12(5)  A statement that the lienholder has no information
13or belief that there is a valid defense to the claim which
14gives rise to the lien.

15(6) A statement that the lienholder will not offer for
16sale or sell the horse for the purposes of slaughter. 

17(c)  Receipt.--Upon receipt of a lien sale application under
18subsection (b), the magisterial district judge or municipal
19court judge shall send all of the following:

20(1)  Notice of the filing of the lien sale application
21within five business days following the receipt of the
22application to all persons known to the lienholder claiming
23an interest in the horse.

24(2)  Notice and a copy of the application by certified
25mail or registered mail, return receipt requested, to each
26owner, and any known lienholders and any other persons whose
27names and addresses are listed in the application. If the
28identity of an owner or party with an interest cannot be
29determined with reasonable certainty, section 6 shall have
30the same effect as if notice were sent by certified or

1registered mail. The notice shall include all the following:

2(i)  A statement that a lien sale application has
3been made with the magisterial district judge or
4municipal court judge for the issuance of an
5authorization to conduct a lien sale.

6(ii)  A statement that the person has a legal right
7to a hearing in court. If a hearing in court is desired,
8the enclosed declaration under penalty of perjury shall
9be signed and returned and if the declaration is signed
10and returned, the lienholder shall be allowed to sell the
11horse, motor vehicle or accessory only if the lienholder
12obtains a judgment in court or obtains a release from the
13owners and any known lienholders.

14(iii)  A statement that if the declaration is signed
15and returned, a hearing shall be promptly scheduled and
16the owners may then appear to contest the claim of the

18(iv)  A statement of the date, time and place that
19the horse will be sold if the authorization to conduct a
20lien sale is issued.

21(v)  A statement that the magisterial district judge
22and municipal court judge shall issue the authorization
23to conduct a lien sale unless the person signs and
24returns, within 20 days after the date on which the
25notice was mailed, the enclosed declaration stating that
26the person desires to contest the claim which gives rise
27to the lien.

28(vi)  A statement that the person shall be liable for
29costs if a judgment is entered in favor of the lienholder
30on the claim which gives rise to the lien.

1(vii)  A declaration that shall be executed by the
2person under penalty of perjury stating that the person
3desires to contest the claim which gives rise to the lien
4and that the person has a valid defense to the claim and
5shall furnish names and addresses where official notice
6may be received of any persons, including the person
7desiring to contest the claim, known to claim an interest
8in the horse on the hearing date.

9(3)  If a magisterial district judge or a municipal court
10judge receives a declaration described in paragraph (2)(ii),
11which is mailed within 20 days after the date upon which the
12notice described in this subsection is mailed, the
13magisterial district judge or a municipal court judge shall
14notify the lienholder and owners and any other person listed
15in the application or declaration of the hearing date, unless
16the owners of the horse and any known lienholders have
17signed, after the lien has arisen, a release of any interest
18in the horse.

19(4)  In any hearing, the lienholder may have the amount
20of the indebtedness and right to sale determined and the
21person requesting the hearing may present and have determined
22any defenses, setoffs, counterclaims, cross-claims or third-
23party actions.

24(5)  Any fees shall be recoverable as a cost by the
25lienholder if a sale is conducted.

26Section 5.  Release of owner's interest.

27(a)  Release.--An owner of a horse subject to a lien under
28section 3 may release any interest in the horse after the lien
29has risen. The release shall be dated when signed and a copy
30shall be given at the time the release is signed to the person

1releasing the interest.

2(b)  Information.--The release shall contain all of the
3following information:

4(1)  A description of the horse.

5(2)  The names and addresses of the owners.

6(3)  A statement of the amount of the lien and the facts
7concerning the claim which gives rise to the lien.

8(4)  A statement that the person releasing the interest
9understands that the person has a legal right to a hearing in
10court before any sale of the horse to satisfy the lien and
11the person is giving up the right to appear to contest the
12claim of the lienholder.

13(5)  A statement that the person releasing the interest
14gives up any interest the person may have in the horse and
15the person is giving the lienholder permission to sell the

17(6)  A statement that there is no other persons or
18lienholders who have an outstanding interest in the horse.

19Section 6.  Notice of lien sale, disposition of proceeds.

20(a)  Horse sale notice.--Before the sale of a horse to
21satisfy a lien, to the lienholder shall give no less than 15
22days notice of the sale by posting notice of the sale in two
23newspapers of general circulation within the county of the horse
24owner's residence and the county of the boarding stable owner's
25place of business.

26(b)  Proceeds.--The proceeds of the sale shall be applied to
27the discharge of the lien and the cost of keeping and selling
28the horse. The balance, if any, of the proceeds of the sale
29shall be deposited no later than ten days from the date of the
30sale with the court to be applied by the magisterial district

1judge or municipal court judge to the payment of any lien or
2security interest to which the horse may be subject in the order
3of their priority, with any remaining proceeds to be paid to the
4owners of the horse sold, but in case the owners cannot be
5found, the balance shall be turned over no later than 60 days
6from the date of the sale to the State Treasurer, who shall
7create a special fund and who shall pay to the owner the moneys
8left if a claim is made within one year of the sale, or deposit
9the moneys in the General Fund if no claim is made within one
10year of the sale.

11Section 7.  Priority of lien.

12All liens created under this act shall be superior to any
13lien, title or interest of any person who has a security
14interest by virtue of a conditional sale contract or a prior
15perfected security interest in accordance with the laws of this

17Section <-8 10.  Effective date.

18This act shall take effect in 60 days.