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Senate rejects then reconsiders lien‑registry changes in HB 395
Summary
Senators voted down Second Substitute House Bill 395, a set of optional construction registry and notice provisions for financing and subcontractor lien waivers (11–16), then voted to reconsider and circled the bill for further study and substitute drafting.
Senators on the floor debated changes to the state construction registry in Second Substitute House Bill 395, which would create a notice‑of‑intent‑to‑finance filing and allow subcontractors who filed preliminary notices to submit a final lien waiver after a notice of intent is filed.
Sponsor Senator McKay said the filing is optional and primarily serves to put subcontractors and banks on notice about potential financing and lien priority, and that it does not “interrupt chain of title and doesn't interrupt anyone's constructive or actual liens or their priority in the liens.”
Opponents raised concerns about the bill’s possible effects on suppliers and title companies. Senator Stevenson asked whether the change would alter the current lien process and whether it would leave suppliers “hanging out on a string”; Stevenson concluded he would speak against the bill after questioning how it would change payment priority. Senator Buxton asked whether the measure would affect partial payment of retainage; the sponsor replied it would not.
After debate and a roll call, the second substitute failed, having received 11 yea votes, 16 nay votes and 2 absent. The body later agreed to a motion to reconsider its action and placed the bill on the top of the second‑reading calendar; senators then circled the bill and indicated a substitute is available online for further study.
What’s next: HB 395 failed the initial roll call but will return to the calendar for further work and substitution; proponents said the filing is optional and framed the change as a notice enhancement rather than a change in lien priority.
