State SealARIZONA HOUSE OF REPRESENTATIVES

 

SB 1304: mechanics liens; notice; applicability

PRIME SPONSOR: Senator Livingston, LD 22

BILL STATUS: Commerce

                               

 

Overview

Increases the threshold at which a preliminary 20-day notice is required to be updated from 20% to 30%.

History

A preliminary 20-day notice is one or more written notices from a claimant that are given prior to the recording of a mechanic's lien (A.R.S. § 33-992.01).

An owner is a person or the person's successor in interest, who causes a building, structure or improvement to be constructed, altered or repaired, whether the interest or estate of the person is in fee, as vendee under a contract to purchase, as lessee, or other interest or estate less than fee (A.R.S. § 33-992.01).

The preliminary 20-day notice must be delivered within 20 days of first furnishing services, labor or materials to the owner, prime contractor, construction lender and the party who hired the noticing party. The notice serves as a necessary prerequisite to later recording a valid mechanic's and materialman's lien. The notice must contain the following: 1) a general description of the labor, professional services, materials, machinery or tolls furnished or to be furnished; 2) an estimate of the total price; 3) the name and address of the person furnishing labor or services; 4) the name of the person who contracted for the purchase of labor or services; 5) a legal description or address of the jobsite; and 6) a statutorily-mandated warning. A subsequent notice is required if the estimated total price for labor, services or materials furnished exceeds the total price in any prior original notice by more than 20% (A.R.S. § 33-992.01).

A person required to give a preliminary 20-day notice is entitled to enforce the lien rights only if the person has given such notice and has made proof of service (A.R.S. § 33-981).

Provisions

1.       Increases, from 20% to 30%, the estimated total price that labor, professional services, materials, machinery, fixtures or tools furnished cannot exceed the original notice price before an updated preliminary 20-day notice is required. (Sec. 1)

2.       Specifies that the 30% threshold is applicable on January 1st, 2020. (Sec. 2)

3.       Makes technical and conforming changes. (Sec. 1)

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7.       Fifty-fourth Legislature                       SB 1304

8.       First Regular Session                            Version 1: Commerce

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