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House adopts substitute to tighten notice rules for construction liens
Summary
House passes second substitute of HB306 to require a 10-day notice before certain mechanic's liens are perfected and to create a rebuttable presumption for liens filed without notice, aiming to reduce improper 'slap liens.'
Representative Steven Clark introduced the second substitute for House Bill 306, characterizing the measure as an effort to deter frivolous or opportunistic 'slap liens' that cloud property titles. The substitute requires a notice period (10 days) to be served before certain liens are perfected; parties who opt not to give notice must prove the lien was proper when they seek enforcement.
Members raised practical questions about the bill’s application to situations in which a mechanic holds equipment that has already left the shop or when subcontractors claim they were not paid by a general contractor. Clark said the statute preserves the subcontractor’s right to file a lien and provides circuit procedures at the time of perfection to resolve disputes, and he emphasized the bill’s goal of giving owners and contractors a chance to work out problems before an owner’s title is clouded.
The House adopted the substitute and proceeded with consideration; sponsors said the change improves notice and dispute-resolution opportunities without eliminating lien remedies.
Next steps: The substituted bill was adopted on the floor and will proceed according to the normal enrollment and transmission process.
