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House debate centers on notice requirement before liens can be filed
Summary
Lawmakers debated a bill sponsored by Representative Clark that would require earlier notice to property owners before third-party liens are perfected, with advocates urging a true waiver standard to prevent frivolous liens and industry stakeholders warning of burdensome notice costs.
Representative Clark, sponsor of the lien-notice measure, told the House the bill is intended to reduce “surprise liens that are put on properties without the debtors knowing about it.” He said the proposal gives parties a chance to discuss and “work out a lien before it's placed on a piece of property.”
During floor questioning, a member urged changing the bill’s 10‑day‑notice language so that failure to provide notice would constitute an absolute waiver of lien rights rather than a rebuttable presumption. That member described scenarios in which subcontractors or suppliers can impose liens late in a project and “duress” owners into paying bogus liens when a pending mortgage is at stake. He argued a waiver would give owners “timely notice and the ability to exercise options” such as joint‑check agreements to avoid paying general contractors without lien waivers.
Representative Clark said his initial draft had included a waiver standard but the industry objected because it would force companies to deliver certified notices to many property owners; he said the present language gives industry an option to send notice and weakens a lienholder’s court position if they fail to do so. Clark said he would work with senators on amendments if needed.
The exchange concluded with lawmakers agreeing to move the bill forward to the second‑substitute consideration and to coordinate further changes between the House and Senate.
The floor discussion did not record a final amendment changing the presumption to an absolute waiver; the sponsor said he had considered that approach and was open to further negotiation.
