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Senate advances HB42 to strengthen construction-lien timelines and lender priority
Summary
HB42 clarifies the definition of construction loans, gives construction lenders automatic priority upon recording, and tightens timelines for notices and lien filings; the Senate approved it for third reading after debate about payment timing to subcontractors.
On the floor the Senate debated and passed HB42 (construction-lien amendments) to specify a narrower definition of construction loans, create automatic priority for construction lenders upon recording a deed and tighten timelines for preliminary notice and lien filing. Sponsor Senator Jenkins said the measure requires title companies and banks that “jump forward” in priority to agree to pay those they leap over, but that the bill does not impose a strict timeline for when those payments must occur, an issue that concerned some in the construction industry.
Key provisions and concerns: The bill creates preliminary-notice and filing windows (20 days for preliminary notice; 90–180 days to file construction liens; 180+ days to file enforcement actions). Senators discussed the lack of an explicit timeframe for payment after priority leap; sponsors said the industry agreed to allow the measure to go through and revisit the issue if implementation proves problematic.
Vote: Roll-call recorded passage for third-reading placement with 27 yeas, 0 nays, 2 absent as noted.
Next steps: The bill proceeds to continued readings and statutory procedures to become law; floor debate signaled willingness to monitor implementation and return to the issue if payment delays create harm.
