HOUSE BILL No. 6692

 

November 19, 2008, Introduced by Reps. Meltzer, Sheen, Calley, Agema, Brandenburg, Pastor, Moss, Hoogendyk, Horn, Acciavatti and Garfield and referred to the Committee on Commerce.

 

     A bill to amend 2002 PA 481, entitled

 

"Special tools lien act,"

 

by amending sections 23, 27, and 31 (MCL 570.563, 570.567, and

 

570.571) and by adding section 24.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 23. (1) A special tool builder shall permanently record

 

on every special tool that the special tool builder fabricates,

 

repairs, or modifies the special tool builder's name, street

 

address, city, and state.

 

     (1) (2) A special tool builder shall file a financing

 

statement in accordance with the requirements of section 9502 of

 

the uniform and commercial code, 1962 PA 174, MCL 440.9502.

 

     (2) (3) A special tool builder has a lien on any special tool

 

identified pursuant to subsection (1) that the special tool builder

 


fabricates, repairs, or modifies. The amount of the lien is the

 

amount that a customer or end user owes the special tool builder

 

for the fabrication, repair, or modification of the special tool.

 

The information that the special tool builder is required to record

 

on the special tool under subsection (1) and the financing

 

statement required under subsection (2) shall constitute (1)

 

constitutes actual and constructive notice of the special tool

 

builder's lien on the special tool.

 

     (3) (4) The A special tool builder's lien created under this

 

act attaches when actual or constructive notice is received the

 

financing statement is filed under subsection (1). The special tool

 

builder retains the lien that attaches under this section even if

 

the special tool builder is not in physical possession of the

 

special tool for which the lien is claimed.

 

     (4) (5) The A lien created under this act remains valid until

 

the first of the following events takes place:

 

     (a) The special tool builder is paid the amount owed by the

 

customer or end user.

 

     (b) The customer receives a verified statement from the end

 

user that the end user has paid the amount for which the lien is

 

claimed.

 

     (c) The financing statement is terminated.

 

     (5) (6) The priority of a lien created under this act on a

 

special tool shall be determined by the time the lien attaches. The

 

first lien to attach shall have has priority over liens that attach

 

subsequent to after the first lien.

 

     Sec. 24. (1) A provision of a contract that waives a special

 


tool builder's right or an obligation of a person established by

 

sections 23 to 31 is void and unenforceable as against public

 

policy.

 

     (2) A provision of a contract that requires the application of

 

the law of another state rather than sections 23 to 31 is void and

 

unenforceable as against public policy.

 

     Sec. 27. Subject to section 29, if the special tool builder

 

has not been paid the amount claimed in the notice required under

 

section 25 within 90 45 days after the notice required under

 

section 25 has been received by the customer and the end user, the

 

special tool builder has a right to immediate possession of the

 

special tool and may enforce the right to immediate possession of

 

the special tool by judgment, foreclosure, or any available

 

judicial procedure, including a motion allowed under the court

 

rules. The special tool builder may do 1 or more both of the

 

following:

 

     (a) Take immediate possession of the special tool. The special

 

tool builder may take immediate possession without judicial process

 

if this can be done without breach of the peace.

 

     (b) Sell the special tool in a public auction.

 

     Sec. 31. (1) If the proceeds of the a sale under section 27

 

are greater than the amount of the lien, the proceeds shall first

 

be paid to the special tool builder in the amount necessary to

 

satisfy the lien and any attorney fees, court costs, and expenses

 

awarded under subsection (3). All proceeds in excess of the lien

 

amount paid to the special tool builder shall be paid to the

 

customer.

 


     (2) A sale shall not be made or possession shall not be

 

obtained under section 27 if it would be in violation of any right

 

of a customer or end user under federal patent, bankruptcy, or

 

copyright law.

 

     (3) If a special tool builder prevails in an action to enforce

 

a perfected lien created under section 23, the court shall award

 

the special tool builder reasonable attorney fees, court costs, and

 

expenses related to the enforcement of the lien and sale.