Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Mechanic Liens topic
No spam. Unsubscribe anytime.
House passes mechanic-lien reform to reduce freezes on property transfers
Summary
The House approved first substitute HB 335 to amend mechanic lien law, allowing property owners to post surety bonds, letters of credit, or cash deposits to clear liens while disputes are resolved; sponsor said the bill preserves contractor rights while protecting owners. The House passed the first substitute 73–0.
Representative Garn presented 1st Substitute HB 335 as a measure to preserve property owners’ ability to sell, refinance, or obtain title insurance when a mechanic's lien is filed. He told the House that under current law a lien "completely freezes the property" and that the bill would permit a surety bond, letter of credit, or cash deposit to secure the claim until the dispute is resolved.
Supporters argued the change balances the legitimate rights of lienholders with the practical need for property owners to conduct transactions while disagreements proceed through resolution. The clerk reported the first substitute received 73 yes votes and 0 no votes; the bill was referred to the Senate for further action.
