Bill Text: VA HB446 | 2024 | Regular Session | Enrolled
Bill Title: Aircraft; an airport has a lien on an abandoned or derelict aircraft on its property for all fees.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2024-04-17 - Enacted, Chapter 810 (effective 7/1/24) [HB446 Detail]
Download: Virginia-2024-HB446-Enrolled.html
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding a section numbered 5.1-2.25 as follows:
§5.1-2.25. Abandoned or derelict aircraft; disposal.
A. For the purposes of this section:
"Abandoned aircraft" means an aircraft that has been disposed of on the premises of a public-use airport in a wrecked, inoperative, or partially dismantled condition or an aircraft that has without prior authorization remained in an idle state on premises owned or controlled by the operator of an airport for 90 consecutive calendar days.
"Derelict aircraft" means any aircraft that is not in a flyable condition for a period of 90 consecutive calendar days or does not have a current valid certificate of airworthiness issued by the Federal Aviation Administration and is not in the process of being built, modified, inspected, repaired, or refurbished.
B. Whenever any abandoned or derelict aircraft is found or located on premises owned or controlled by the operator of an airport, the operator of the airport or his designee shall make a record of the date the aircraft was found or determined to be present on the airport premises.
C. The airport operator or his designee shall contact the Federal Aviation Administration, Aircraft Registration Branch, to determine the name and address of the last registered owner of the aircraft and shall make a diligent search of available records, or contact an aircraft title search company, to determine the name and address of any person having an equitable or legal interest in the aircraft. Within 30 calendar days after receipt of such information, the airport operator or his designee shall notify the owner and all persons having an equitable or legal interest in the aircraft by certified mail, return receipt requested, of the location of the abandoned or derelict aircraft on the airport premises; any fees and charges for the use of the airport by the aircraft that have accrued and the amount thereof; if the aircraft is subject to a lien under subsection F for the accrued fees and charges for the use of the airport and for the transportation, storage, and removal of the aircraft; that the lien is subject to enforcement pursuant to law; and that the airport may cause the use, trade, sale, or removal of the aircraft if, within 90 calendar days after the date of receipt of such notice, the aircraft has not been removed from the airport upon payment in full of all accrued fees and charges for the use of the airport and for the transportation, storage, and removal of the aircraft.
D. If the owner of the aircraft is unknown or cannot be found, the airport operator or his designee shall cause a laminated notice, in a form prescribed by the Board, to be placed conspicuously upon a window of such aircraft stating that the aircraft is unlawfully upon the airport's property, has accrued fees and charges for the use of such property, and those fees must be paid in full and the property removed within 90 calendar days of the date of the notice or the property will be removed or disposed of. The notice shall also provide that the aircraft is subject to a lien for all accrued fees and charges for the use of the airport and for the transportation, storage, and removal of the aircraft, as well as the publication of such notice. The notice shall include the date of posting. Such notice shall be not less than eight inches by 10 inches and shall be sufficiently weatherproof to withstand normal exposure to the weather. If, at the end of 90 calendar days after posting the notice, the owner or any person having an equitable or legal interest in the described abandoned or derelict aircraft has not removed the aircraft from the airport upon payment in full or entry into a written payment plan for all accrued fees and charges for the use of the airport and for the transportation, storage, and removal of the aircraft, or shown reasonable cause for failure to do so, the airport operator or his designee may dispose of the aircraft as provided in subsection E.
E. Such abandoned or derelict aircraft shall be removed within the time period specified in the notice provided under subsection C or D. If, at the end of such time period, the owner or any person having an equitable or legal interest in the described abandoned or derelict aircraft has not removed the aircraft from the airport upon payment in full or entry into a written payment plan for all accrued fees and charges for the use of the airport and for the transportation, storage, and removal of the aircraft, or shown reasonable cause for the failure to do so, the airport operator or his designee may (i) retain such aircraft or any part thereof for use by the airport; (ii) trade such aircraft to another airport operator, the Commonwealth, or a subdivision thereof; (iii) sell such aircraft at public auction; or (iv) dispose of such aircraft through an appropriate refuse removal company or a company that provides salvage services for aircraft.
1. If the airport elects to sell the aircraft, the aircraft must be sold at public auction after (i) giving notice of the time and place of sale twice, once no less than 30 calendar days and once no less than 10 calendar days prior to the date of sale, in a publication of general circulation within the county or city where the airport is located; (ii) posting notice of the time and place of sale in the airport no less than 30 calendar days prior to the date of sale; and (iii) after providing written notice of the intended sale to all parties known to have an equitable or legal interest in the aircraft.
2. If the airport elects to dispose of the aircraft as provided in clause (iv), the airport shall be entitled to negotiate with the company for a price to be received from such company in payment for the aircraft, or, if circumstances so warrant, a price to be paid to such company by the airport for the costs of disposing of the aircraft. All information pertaining to the establishment of such price and the justification for the amount of such price shall be prepared and maintained by the airport, and such negotiated price shall be deemed to be a commercially reasonable price.
3. If the sale price or the negotiated price is less than the airport's then current charges and costs against the aircraft or if the airport is required to pay the salvage company for its services, the owner of the aircraft shall remain liable to the airport for the airport's costs that are not offset by the sale price or negotiated price, in addition to the owner's liability for payment to the airport of the price the airport was required to pay any salvage company. All costs incurred by the airport in the removal, storage, and sale of any aircraft shall be recoverable against the owner of the aircraft, including attorney fees.
4. If the sale price or the negotiated price is greater than the airport's then current charges and costs against the aircraft, the surplus of the proceeds of the sale or negotiated price shall be distributed to the owner of the aircraft and all parties known to have an equitable or legal interest in the aircraft by priority.
F. The airport shall have a lien on an abandoned or derelict aircraft for all fees and charges for the use of the airport by such aircraft and for all fees and charges incurred by the airport for the transportation, storage, and removal of such aircraft. As a prerequisite to perfecting a lien under this section, the airport operator or his designee shall serve a notice on the last registered owner and all persons having an equitable or legal interest in the aircraft. Serving the notice does not dispense with recording the claim of lien.
G. For the purpose of perfecting its lien under this section, the airport shall record a claim of lien that shall state:
1. The name and address of the airport;
2. The name of the last registered owner of the aircraft and all persons having an equitable or legal interest in the aircraft;
3. The dates upon which the lien is claimed by the airport;
4. The fees and charges incurred by the aircraft for the use of the airport and the fees and charges for the transportation, storage, and removal of the aircraft, including attorney fees and post-judgment interest at six percent annually; and
5. A description of the aircraft sufficient for identification.
The claim of lien shall be signed and sworn to or affirmed by the airport operator or his designee and served on the last registered owner of the aircraft and all persons having an equitable or legal interest in the aircraft. The claim of lien shall be so served before recordation.
The claim of lien shall be recorded with the clerk of court in the county or city where the airport is located. The recording of the claim of lien shall be constructive notice to all persons of the contents and effect of such claim. The lien shall attach at the time of recordation and shall take priority as of that time.
H. A purchaser or recipient in good faith of an aircraft sold or obtained under this section takes the property free of the rights of persons then holding any equitable or legal interest in the aircraft, whether or not recorded. The purchaser or recipient is required to notify the appropriate Federal Aviation Administration office of such change in the registered owner of the aircraft.
I. If the aircraft is sold at public sale, the airport shall deduct from the proceeds of sale the costs of transportation, storage, publication of notice, and all other costs reasonably incurred by the airport, including attorney fees, and any balance of the proceeds shall be deposited into an interest-bearing account not later than 30 calendar days after the airport's receipt of the proceeds and held there for one year. The rightful owner of the aircraft may claim the balance of the proceeds within one year after the date of the deposit by making application to the airport and presenting acceptable written evidence of ownership to the airport operator or his designee. If no rightful owner claims the proceeds within the one-year period, the balance of the proceeds shall be retained by the airport to be used in any manner authorized by law.
J. Any person acquiring a legal interest in an aircraft that is sold by an airport under this section shall be the lawful owner of such aircraft and all other equitable or legal interests in such aircraft shall be divested and of no further force and effect, provided that the holder of any such equitable or legal interests was notified of the intended disposal of the aircraft to the extent required in this section. The airport may issue documents of disposition to the purchaser or recipient of an aircraft disposed of under this section.
K. The provisions of this section shall not apply to aircraft owned or operated by (i) active-duty military personnel or (ii) any person or business engaged in the commercial industry of building, modifying, inspecting, repairing, or refurbishing aircraft.
