LRB-1904/1
JJL:kmg:kaf
1995 - 1996 LEGISLATURE
January 26, 1995 - Introduced by Representatives Baldus, Musser, Plombon,
Wilder, Gronemus, Huber, Vander Loop, Ryba, Baldwin, Springer,
Hasenohrl, Robson, Morris-Tatum, Notestein, R. Young, Plache, Bell,
Black, R. Potter and
Carpenter, cosponsored by Senators Decker, Chvala,
Wineke, Clausing, Moen, Moore, Burke and Breske. Referred to Committee
on Judiciary.
AB64,1,2
1An Act to create 59.51 (22) and 779.32 of the statutes;
relating to: labor
2concession liens.
Analysis by the Legislative Reference Bureau
This bill establishes a labor concession lien. (A lien is a charge against property
to secure a debt.) Under the bill, an employer and a union may agree to permit the
union to receive a labor concession lien against the property of the employer at the
employment site at which the employes work if the union makes wage or benefits
concessions in order to secure future anticipated benefits.
If the benefits anticipated are not received, the union may enforce the lien, up
to the value of the concessions. The lien may be enforced against personal property
in the same manner that security interests are enforced under the uniform
commercial code or enforced against real property in the same manner in which
construction liens are enforced.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB64, s. 1
3Section
1. 59.51 (22) of the statutes is created to read:
AB64,1,44
59.51
(22) File and index labor concession liens under s. 779.32.
AB64, s. 2
5Section
2. 779.32 of the statutes is created to read:
AB64,1,6
6779.32 Labor concession lien. (1)
Definitions. In this section:
AB64,1,77
(a) "Concession" means a contractual reduction in wages or benefits.
AB64,2,2
1(b) "Employment site" means one or more facilities at which employes who are
2covered by an agreement between an employer and a union work.
AB64,2,9
3(2) Lien existence. If agreed to by an employer and a union in a collective
4bargaining agreement or other contract, a union that grants a concession in
5anticipation of future benefits shall have a labor concession lien, on behalf of its
6members covered by the agreement, upon the property of the employer at the
7employment site for the value of the concession. The parties shall, by agreement,
8determine the nature and value of anticipated future benefits and the value of the
9concession.
AB64,2,12
10(3) Attachment and perfection. (a) A labor concession lien attaches on the
11effective date of the agreement between the employer and union that acknowledges
12the lien.
AB64,2,1513
(b) A labor concession lien is perfected when the union files a notice of lien in
14the office of the register of deeds for the county in which the employment site is
15located. A notice of lien shall include all of the following information:
AB64,2,1616
1. The name of the employer.
AB64,2,1717
2. The name of the union.
AB64,2,1918
3. A legal description of the employment site that is subject to the lien and a
19description of personal property that is subject to the lien.
AB64,2,2020
4. The conditions under which the lien may be released.
AB64,2,23
21(4) Notice. A person has notice of the existence of a labor concession lien if the
22person knows or has reason to know that an employer has entered into an agreement
23with a union.
AB64,2,25
24(5) Continuation. A labor concession lien continues until the union releases
25it or the conditions under which the lien may be released are satisfied.
AB64,3,3
1(6) Priority. A labor concession lien shall have priority over all liens that are
2filed or recorded after a labor concession lien is perfected, except for any of the
3following:
AB64,3,44
(a) Tax and special assessment liens.
AB64,3,75
(b) A purchase money security interest in property obtained by the employer
6after the concession lien is perfected and that is used as collateral to secure the
7purchase price.
AB64,3,10
8(7) Enforcement. Sections 409.501 to 409.507, as they apply to a security
9interest, apply to a labor concession lien and ss. 779.09 to 779.12, as they apply to
10a construction lien, apply to a labor concession lien.
AB64,3,14
11(8) Lien proceeds. A union shall distribute all proceeds obtained through
12enforcement of a labor concession lien to its members covered by the agreement that
13acknowledges the lien. The union may determine who is eligible to receive proceeds
14and the method for distributing the proceeds.
AB64,3,17
16(1) This act first applies to agreements entered into, renewed, extended or
17modified on the effective date of this subsection.
