Bill Text: AZ HB2589 | 2014 | Fifty-first Legislature 2nd Regular | Introduced
Bill Title: Notices; construction liens; online registry
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2014-02-19 - House COM Committee action: Held [HB2589 Detail]
Download: Arizona-2014-HB2589-Introduced.html
|
REFERENCE TITLE: notices; construction liens; online registry |
|
State of Arizona House of Representatives Fifty-first Legislature Second Regular Session 2014
|
|
HB 2589 |
|
|
|
Introduced by Representative Fann
|
AN ACT
amending Title 32, chapter 10, article 1, Arizona Revised Statutes, by adding sections 32-1104.01, 32-1104.02, 32-1104.03, 32-1104.04, 32-1104.05 and 32‑1104.06; amending sections 33-981 and 33-992.01, Arizona Revised Statutes; providing for the delayed repeal of section 33-992.02, Arizona Revised Statutes; amending sections 33-993, 33-1056, 34-223 and 34-611, Arizona Revised Statutes; relating to mechanics' and materialmen's liens.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 32, chapter 10, article 1, Arizona Revised Statutes, is amended by adding sections 32-1104.01, 32-1104.02, 32-1104.03, 32-1104.04, 32-1104.05 and 32‑1104.06, to read:
32-1104.01. Online registry; preliminary twenty-day notices; notices of completion; third-party contractor; fees
A. The registrar shall oversee the establishment, operation and maintenance of an online registry for purposes of receiving and providing notice of and access to preliminary twenty-day notices and notices of completion that are filed as prescribed by title 33, chapter 7, article 6. The online registry must be operational beginning January 1, 2015.
B. The registrar shall contract with a third party to establish, operate and maintain the registry. The third-party contractor may collect a fee from each person filing and shall:
1. Ensure a secure internet-based system with a publicly accessible website.
2. Through the online registry, receive the filing of preliminary twenty-day notices as prescribed by section 33-992.01, requests for notice as prescribed by section 33-992.02 and notices of completion as prescribed by section 33-993, and provide notices of filings as prescribed by sections 33‑992.02 and 33-993.
3. Establish procedures for creating project files, receiving filings and generating notices.
4. Establish procedures to allow filings by third parties on behalf of the person hiring the third party.
5. Pay monthly to the registrar of contractors an administrative fee.
C. The third-party contractor shall comply with all laws regarding the online registry.
32-1104.02. Online registry; notice provided; requests for notice; third-party filings
A. The online registry established pursuant to section 32-1104.01 must provide notification of the filing of a required notice relating to the construction, alteration or repair of any building, structure or other improvement to:
1. The person filing the required notice, unless the person indicates to the online registry that the person does not want to receive notification.
2. Each person who requests notification of the filing of a required notice for a project.
3. Each person who files a preliminary twenty-day notice or a notice of completion for a project.
B. A person may request the online registry to provide the person notice of the filing of a required notice for any project. The person requesting notice under this subsection shall provide an e-mail address, mailing address or fax number to which notification may be sent and is responsible for the accuracy of the information provided.
C. A person is considered to have requested notice of a filing under subsection B of this section if, with respect to that same project that relates to the required notice that is the subject of the notification, the person files any of the following:
1. A preliminary twenty-day notice.
2. A request for notice pursuant to subsection B of this section.
3. A notice of completion.
D. The online registry fulfills the notification requirement under subsection B of this section by sending the notification to the e-mail address, mailing address or fax number that the person provides to the online registry, whether or not the person actually receives the notification.
E. A notice filed with the online registry by a third party on behalf of another is deemed to be filed by the person on whose behalf the notice is filed.
32-1104.03. Online registry; index
The online registry established pursuant to section 32-1104.01 must index filings by all of the following:
1. The name of the owner.
2. The name of the original contractor.
3. The subdivision, development or other project name, if any.
4. The lot or parcel number.
5. The address of the project property.
6. The name of the county in which the project is located.
7. The tax parcel identification number of each parcel included in the project property.
8. The building permit number.
9. The online registry's entry number for that filing.
10. Any other identifier that the registrar determines reasonably appropriate in collaboration with the third-party contractor.
32-1104.04. Online registry; preliminary twenty-day notices; proof of substantial compliance
A. If a preliminary twenty-day notice filed with the online registry includes the tax parcel identification number of a parcel not previously associated in the online registry with a construction project, the online registry must promptly notify the person who filed the preliminary notice that:
1. The preliminary notice includes a tax parcel identification number of a parcel not previously associated in the registry with a construction project.
2. The likely explanation is that the preliminary twenty-day notice is the first filing for the project or the tax parcel identification number is incorrectly stated in the preliminary twenty-day notice.
B. The burden is on the person filing the preliminary twenty-day notice to prove that the person has substantially complied with this section and the other requirements for the preliminary twenty-day notice. Substantial compliance may be established by a person's reasonable reliance on information in the registry provided by a previously filed:
1. Preliminary twenty-day notice.
2. Request for notice pursuant to section 32-1104.02, subsection B.
3. Notice of completion.
32-1104.05. Online registry; limitation of liability
A. This state, its agencies and employees and any of its political subdivisions are immune from suit for any injury resulting from the online registry. This state is not responsible for the security, storage or maintenance of any information received by the online registry.
B. The third-party contractor prescribed by section 32-1104.01, subsection B and its principals, agents and employees are not liable to any person for the accuracy, suitability, completeness or legal effectiveness of information filed or searched in the online registry if the third-party contractor:
1. Develops and maintains the online registry in compliance with reliability, availability and security standards established by the registrar.
2. Meets data entry accuracy standards established by the registrar.
C. The third-party contractor and its principals, agents and employees are not liable for any inability to perform obligations under this chapter to the extent performance of those obligations is prevented by:
1. A storm, earthquake or other act of god.
2. A fire.
3. An accident.
4. Governmental interference.
5. Any other event or cause beyond the third-party contractor's control.
D. Any person who files a notice with the online registry that contains inaccurate or incomplete information is not liable for damages suffered by any other person who relies on the inaccurate or incomplete information in the notice.
32-1104.06. Online registry; effect of document filing; no constructive notice
The filing of a document in the online registry is not intended to give notice to all persons of the contents of the document and does not constitute constructive notice of matters relating to real property to purchasers for value and without knowledge.
Sec. 2. Section 33-981, Arizona Revised Statutes, is amended to read:
33-981. Lien for labor; professional services or materials used in construction, alteration or repair of structures; preliminary twenty-day notice; exceptions
A. Except as provided in sections 33‑1002 and 33‑1003, every person who labors or furnishes professional services, materials, machinery, fixtures or tools in the construction, alteration or repair of any building, or other structure or improvement, shall have a lien on such building, structure or improvement for the work or labor done or professional services, materials, machinery, fixtures or tools furnished, whether the work was done or the articles were furnished at the instance of the owner of the building, structure or improvement, or his the owner's agent.
B. Every contractor, subcontractor, architect, builder or other person having charge or control of the construction, alteration or repair, either wholly or in part, of any building, structure or improvement is the agent of the owner for the purposes of this article, and the owner shall be liable for the reasonable value of labor or materials furnished to his the agent.
C. A person who is required to be licensed as a contractor but who does not hold a valid license as such contractor issued pursuant to title 32, chapter 10 shall not have the lien rights provided for in this section.
D. A person who is required to give file a preliminary twenty-day notice pursuant to section 33‑992.01 is entitled to enforce the lien rights provided for in this section only if he the person has given filed such notice and has made proof of service pursuant to section 33‑992.02 33-992.01.
E. A person who furnishes professional services but who does not hold a valid certificate of registration issued pursuant to title 32, chapter 1 shall not have the lien rights provided for in this section.
F. A person who furnishes professional services is entitled to enforce the lien rights provided for in this section only if such person has an agreement with the owner of the property or with an architect, an engineer or a contractor who has an agreement with the owner of the property.
Sec. 3. Section 33-992.01, Arizona Revised Statutes, is amended to read:
33-992.01. Definitions; preliminary twenty-day notice; content; registration of construction project; exception
A. For the purposes of this section:
1. "Construction lender" means any mortgagee or beneficiary under a deed of trust lending funds, all or a portion of which are used to defray the cost of the construction, alteration, repair or improvement, or any assignee or successor in interest of either.
2. "Original contractor" means any contractor who has a direct contractual relationship with the owner.
3. "Owner" means the person, or the person's successor in interest, who causes a building, structure or improvement to be constructed, altered or repaired, whether the interest or estate of the person is in fee, as vendee under a contract to purchase, as lessee, or other interest or estate less than fee. Where an interest or estate is held by two or more persons as community property, joint tenants or tenants in common, any one or more of the persons may be deemed the owner.
4. "Preliminary twenty-day notice" means one or more written notices from a claimant that are given filed prior to the recording of a mechanic's lien and which are required to be given filed pursuant to this section.
B. Except for a person performing actual labor for wages, every person who furnishes labor, professional services, materials, machinery, fixtures or tools for which a lien otherwise may be claimed under this article shall, as a necessary prerequisite to the validity of any claim of lien, serve the owner or reputed owner, the original contractor or reputed contractor, the construction lender, if any, or reputed construction lender, if any, and the person with whom the claimant has contracted for the purchase of those items with a written shall file a preliminary twenty-day notice as prescribed by this section.
C. The preliminary twenty-day notice referred to in subsection B of this section shall be given filed not later than twenty days after the claimant has first furnished labor, professional services, materials, machinery, fixtures or tools to the jobsite and shall contain the following information:
1. A general description of the labor, professional services, materials, machinery, fixtures or tools furnished or to be furnished and an estimate of the total price thereof.
2. The name, and address, e-mail address and telephone number of the person furnishing labor, professional services, materials, machinery, fixtures or tools.
3. The name of the person who contracted for the purchase of labor, professional services, materials, machinery, fixtures or tools.
4. A legal description, The subdivision plat, development and street address, location with respect to commonly known roads or other landmarks in the area or any other description of the jobsite sufficient for identification.
5. The following statement in bold‑faced type:
In accordance with Arizona Revised Statutes section 33‑992.01, this is not a lien and this is not a reflection on the integrity of any contractor or subcontractor.
Notice to Property Owner
If bills are not paid in full for the labor, professional services, materials, machinery, fixtures or tools furnished or to be furnished, a mechanic's lien leading to the loss, through court foreclosure proceedings, of all or part of your property being improved may be placed against the property. You may wish to protect yourself against this consequence by either:
1. Requiring your contractor to furnish a conditional waiver and release pursuant to Arizona Revised Statutes section 33‑1008, subsection D, paragraphs 1 and 3 signed by the person or firm giving you this notice before you make payment to your contractor.
2. Requiring your contractor to furnish an unconditional waiver and release pursuant to Arizona Revised Statutes section 33‑1008, subsection D, paragraphs 2 and 4 signed by the person or firm giving you this notice after you make payment to your contractor.
3. Using any other method or device which is appropriate under the circumstances.
D. The preliminary notice given by any claimant shall follow substantially the following form:
Arizona Preliminary Twenty-Day Lien Notice
In accordance with Arizona Revised Statutes section 33‑992.01, this is not a lien. This is not a reflection on the integrity of any contractor or subcontractor.
The name and address of This preliminary lien notice has
the owner or reputed been completed by (name and
owner are: address of claimant):
Date: _________________________
By: ___________________________
Address: ______________________
The name and address You are hereby notified that the
of the original claimant has furnished or will
contractor are: furnish labor, professional
services, materials, machinery,
fixtures or tools of the
following general description:
The name and address of
any lender or reputed
lender and assigns are:
In the construction, alteration or
repair of the building, structure
or improvement located at:
The name and address
of the person with
whom the claimant
has contracted are: And situated upon that certain
lot(s) or parcel(s) of land in
__________ County, Arizona,
described as follows:
An estimate of the total price of
the labor, professional services,
materials, machinery, fixtures
or tools furnished or to be
furnished is: $_________________
(The following statement shall be in bold‑faced type.)
Notice to Property Owner
If bills are not paid in full for the labor, professional services, materials, machinery, fixtures or tools furnished, or to be furnished, a mechanic's lien leading to the loss, through court foreclosure proceedings, of all or part of your property being improved may be placed against the property. You may wish to protect yourself against this consequence by either:
1. Requiring your contractor to furnish a conditional waiver and release pursuant to Arizona Revised Statutes section 33‑1008, subsection D, paragraphs 1 and 3 signed by the person or firm giving you this notice before you make payment to your contractor.
2. Requiring your contractor to furnish an unconditional waiver and release pursuant to Arizona Revised Statutes section 33‑1008, subsection D, paragraphs 2 and 4 signed by the person or firm giving you this notice after you make payment to your contractor.
3. Using any other method or device that is appropriate under the circumstances.
(The following language shall be in type at least as large as the largest type otherwise on the document.)
Within ten days of the receipt of this preliminary twenty‑day notice the owner or other interested party is required to furnish all information necessary to correct any inaccuracies in the notice pursuant to Arizona Revised Statutes section 33‑992.01, subsection I or lose as a defense any inaccuracy of that information.
Within ten days of the receipt of this preliminary twenty‑day notice if any payment bond has been recorded in compliance with Arizona Revised Statutes section 33‑1003, the owner must provide a copy of the payment bond including the name and address of the surety company and bonding agent providing the payment bond to the person who has given the preliminary twenty-day notice. In the event that the owner or other interested party fails to provide the bond information within that ten-day period, the claimant shall retain lien rights to the extent precluded or prejudiced from asserting a claim against the bond as a result of not timely receiving the bond information.
Dated: ___________________ ___________________________
(Company name)
By: ______________________
(Signature)
___________________________
(Title)
(Acknowledgement of receipt language from Arizona Revised Statutes section 33‑992.02 shall be inserted here.)
5. The tax parcel identification number for each parcel included in the project property.
6. A general description of the construction project.
E. D. If labor, professional services, materials, machinery, fixtures or tools are furnished to a jobsite by a person who elects not to give file a preliminary twenty-day notice as provided in subsection B of this section, that person is not precluded from giving filing a preliminary twenty-day notice not later than twenty days after furnishing other labor, professional services, materials, machinery, fixtures or tools to the same jobsite. The person, however, is entitled to claim a lien only for such labor, professional services, materials, machinery, fixtures or tools furnished within twenty days prior to the service filing of the notice and at any time thereafter.
F. The notice or notices required by this section may be given by mailing the notice by first class mail sent with a certificate of mailing, registered or certified mail, postage prepaid in all cases, addressed to the person to whom notice is to be given at the person's residence or business address. Service is complete at the time of the deposit of notice in the mail.
G. E. A person required by this section to give file a notice to the owner, to an original contractor, to the construction lender, if any, and to the person with whom the claimant has contracted need give file only one notice to the owner, to the original contractor, to the construction lender, if any, and to the person with whom the claimant has contracted with respect to all labor, professional services, materials, machinery, fixtures or tools furnished for the building, structure or improvement, unless the actual estimated total price for the labor, professional services, materials, machinery, fixtures or tools furnished or to be furnished exceeds by twenty per cent or more the total price in any prior original or subsequent preliminary notice or unless the labor, professional services, materials, machinery, fixtures or tools are furnished under contracts with more than one subcontractor, in which case notice requirements shall be met for all additional labor, professional services, materials, machinery, fixtures or tools.
H. F. If a notice contains a general description required by subsection C of this section of the labor, professional services, materials, machinery, fixtures or tools furnished up to the date of notice, it is not defective because after the date the person giving filing notice furnishes labor, professional services, materials, machinery, fixtures or tools that are not within the scope of the general description, or exceed by less than twenty per cent the estimated total price thereof.
I. G. Within ten days after receipt of a written request from any person or the person's agent intending to file a preliminary twenty-day notice, which request shall identify the person, the person's address, the jobsite and the general nature of the person's labor, professional services, materials, machinery or tools to which the preliminary twenty-day notice shall apply, or within ten days of the receipt of a preliminary twenty-day notice, the owner or other interested party shall furnish the person a written statement containing Any person or the person's agent who intends to file a preliminary twenty-day notice may send a written notice to the owner requesting the following information:
1. The legal description, the subdivision plat, street address or location with respect to commonly known roads or other landmarks in the area, or any other description of the jobsite sufficient for identification development or other project name, if any.
2. The tax parcel identification number.
3. The street address of each parcel included in the project.
4. The building permit number.
2. 5. The name and address of the owner or reputed owner.
3. 6. The name and address of the original contractor or reputed contractor.
4. The name and address of the construction lender, if any, or reputed construction lender.
7. Whether the project has been registered with the online registry as prescribed by subsection L of this section.
5. 8. If any payment bond has been recorded pursuant to section 33‑1003, a copy of the bond and the name and address of the surety company and bonding agent, if any, providing the payment bond.
H. The notice sent pursuant to subsection G of this section must include the following or substantially similar language:
Notice to property owner pursuant to Arizona Revised Statutes section 33-992.01, subsection G:
If a person furnishing labor, professional services, materials, machinery, fixtures or tools is not paid in full, that person may record a mechanic’s lien against the property being improved. You, as the property owner, may register your project with the online registry established pursuant to Arizona Revised Statutes section 32-1104.01. If your project is registered, preliminary twenty-day notices for labor, professional services, materials, machinery, fixtures or tools to your project will be filed in your specific online registry file and you will be able to review the names and addresses of any potential mechanic’s lien claimants against your project.
I. Within ten days after receipt of a notice sent pursuant to subsection G of this section, the owner shall furnish a written statement containing the requested information to the person making the request.
J. Failure of the owner or other interested party to furnish the information required prescribed by this section does not excuse any claimant from timely giving filing a preliminary twenty-day notice, but it does stop the owner or other interested party from raising as a defense any inaccuracy of the information in a preliminary twenty-day notice, provided the claimant's preliminary twenty-day notice of lien otherwise complies with the provisions of this chapter if the claimant has made a good faith effort to determine the registry index number, if any, and the tax parcel identification number. If the information is received by the claimant after the claimant has given filed a preliminary twenty-day notice and the information contained in the preliminary twenty-day notice is inaccurate, the claimant shall, within thirty days of the receipt of this information, give shall file an amended preliminary twenty-day notice in the manner provided in this section. An amended preliminary twenty-day notice shall be considered as having been given filed at the same time as the original preliminary twenty-day notice, except that the amended preliminary twenty-day notice shall be effective only as to work performed, materials supplied or professional services rendered twenty days prior to the date of the amended preliminary twenty-day notice or the date the original preliminary twenty-day notice was given to the owner filed, whichever occurs first. If a payment bond has been recorded in compliance with section 33‑1003 and the owner or other interested party fails to furnish a copy of the bond and the other information as required by this section, the claimant shall retain lien rights to the extent precluded or prejudiced from asserting a claim against the bond as a direct result of not timely receiving a copy of the bond and the other information from the owner or other interested party.
K. A preliminary twenty-day notice is valid only if filed with the online registry established pursuant to section 32-1104.01.
L. A property owner, original contractor, lender, surety company or title company issuing a title insurance policy on the project property may register the construction project with the online registry established pursuant to section 32-1104.01.
M. The registration of a construction project with the online registry established pursuant to section 32-1104.01 must include the following information:
1. The subdivision, development or other project name, if any.
2. The tax parcel identification number of each parcel included in the project property.
3. The street address of each parcel included in the project property.
4. The name and address of the owner.
5. The name and address of the original contractor.
6. The building permit number.
7. If any payment bond has been recorded pursuant to section 33-1003, a copy of the bond and the name and address of the surety company and bonding agent, if any, providing the payment bond.
8. A general description of the construction project.
N. This section does not apply to any person or claimant who has provided labor or materials on a public building or public improvement and who is seeking a claim under a payment bond pursuant to section 34-223.
Sec. 4. Delayed repeal
Section 33-992.02, Arizona Revised Statutes, is repealed from and after December 31, 2015.
Sec. 5. Section 33-993, Arizona Revised Statutes, is amended to read:
33-993. Procedure to perfect lien; notice of completion; claim of lien; service; recording; notice of filing; definition
A. In order to impress and secure the lien provided for in this article, every person claiming the benefits of this article, within one hundred twenty days after completion of a building, structure or improvement, or any alteration or repair of such building, structure or improvement, or if a notice of completion has been recorded filed, within sixty days after recordation the filing of such notice, shall make duplicate copies of a notice and claim of lien and record one copy of the notice and claim of lien with the county recorder of the county in which the property or some part of the property is located, and within a reasonable time thereafter serve the remaining copy upon on the owner of the building, structure or improvement, if he the owner can be found within the county. The notice and claim of lien shall be made under oath by the claimant or someone with knowledge of the facts and shall contain:
1. The legal description of the lands and improvements to be charged with a lien.
2. The name of the owner or reputed owner of the property concerned, if known, and the name of the person by whom the lienor was employed or to whom he the lienor furnished materials.
3. A statement of the terms, time given and conditions of the contract, if it is oral, or a copy of the contract, if it is written.
4. A statement of the lienor's demand, after deducting just credits and offsets.
5. A statement of the date of completion of the building, structure or improvement, or any alteration or repair of such building, structure or improvement.
6. A statement of the date the preliminary twenty-day notice required by section 33‑992.01 was given filed. A copy of such the notice of filing of the preliminary twenty‑day notice and the proof of mailing required by section 33‑992.02 that is provided by the online registry pursuant to section 32-1104.02 shall be attached.
B. For purposes of this section, if a work of improvement consists of the construction for residential occupancy of more than one separate building without regard to whether the buildings are constructed pursuant to separate contracts or a single contract, each building is a separate work and the time within which to perfect a lien by recording the notice of lien pursuant to subsection A of this section commences to run on the completion of each separate building. For purposes of this subsection, "separate building" means one structure of a work of improvement and any garages or other appurtenant buildings in a multibuilding residential project or residential subdivision.
C. For the purposes of subsection A of this section, "completion" means the earliest of the following events:
1. Thirty days after final inspection and written final acceptance by the governmental body which that issued the building permit for the building, structure or improvement.
2. Cessation of labor for a period of sixty consecutive days, except when such cessation of labor is due to a strike, shortage of materials or act of God.
D. If no building permit is issued or if the governmental body that issued the building permit for the building, structure or improvement does not issue final inspections and written final acceptances, then "completion" for the purposes of subsection A of this section means the last date on which any labor, materials, fixtures or tools were furnished to the property.
E. For the purposes of this section, "notice of completion" means a written notice which that the owner or its agent may elect to record at any time after completion of construction as defined in subsection C of this section for the purpose of shortening the lien period, as provided in subsection A of this section. A notice of completion shall be signed and verified by the owner or its agent and shall contain the following information:
1. The name and address of the owner.
2. The nature of the interest or estate of the owner.
3. The legal description of the jobsite and the street address. The validity of the notice is not affected by the fact that the street address recited is erroneous or that such street address is omitted.
4. The name of the original contractor, if any.
5. The names and addresses of any predecessors in interest if the property was transferred after the beginning of the work or improvement.
6. The nature of the improvements to the real property.
F. The notice of completion shall follow substantially the following form:
Notice of Completion
Notice is hereby given that:
1. The undersigned is owner of the interest or estate stated below in the property hereinafter described, or the undersigned is the owner's agent.
2. The full name of the undersigned is _______________.
3. The full address of the undersigned is _______________ ______________________________________________________.
4. The nature of the interest or estate of the owner is: in fee. _________________________________ (If other than fee, strike "In Fee" and insert, for example, "Purchaser Under Contract of Purchase" or "Lessee".)
5. The full names and full addresses of all persons, if any, who hold interest or estate with the undersigned such as joint tenants or tenants in common are:
Name Address
______________________________________________________________
______________________________________________________________
______________________________________________________________
6. The full names and full addresses of the predecessors in interest of the undersigned, if the property was transferred after the beginning of the work or improvement:
Name Address
______________________________________________________________
______________________________________________________________
______________________________________________________________
7. The nature of the improvements to the real property ______________________________________________________.
8. The work of improvement on the property hereinafter described was completed in accordance with the definition of completion in Arizona Revised Statutes section 33‑993, subsection C. (Fill in the appropriate completion date as defined in Arizona Revised Statutes section 33‑993, subsection C.)
(a) ‑ Date _____________________________________________
(thirty days after written final acceptance
by governmental body)
(b) ‑ Date _____________________________________________
(sixty days after cessation of labor)
9. The name of the original contractor, if any, for such work or improvement is _______________________________________.
(if no contractor, insert "none")
10. The street address of the property is ____________ _______________________________________________________________
(include both address and city with zip code)
11. The legal description of property described above _______________________________________________________________
(attach exhibit if necessary)
Verification
I, the undersigned, certify that I am the owner, the owner's agent for the property or another interested party in the property, described in the above notice, or I certify that I am the original contractor of the improvements to the real property described in the above notice. I have read the foregoing notice and know and understand the contents thereof, and the facts stated therein are true and correct. I declare under penalty of perjury that the foregoing is true and correct.
Executed on ______________ at _____________________, Arizona.
(date) (place where signed)
____________________________
(print name)
____________________________
(personal signature)
____________________________
(title)
(Acknowledgement)
Each notice of completion shall contain the following language in type at least as large as the largest type that otherwise appears on the document:
In order to shorten the lien period pursuant to Arizona Revised Statutes section 33‑993, subsection A, a copy of the notice of completion and a written statement of the date of recording and the county recorder's record location information shall be served by certified or registered mail, postage prepaid, to the owner, the original contractor and all persons from whom the person recording this notice has previously received a preliminary twenty-day notice as prescribed by Arizona Revised Statutes section 33‑993, subsection I.
Notice: Receipt of a notice of completion may alter the time you have to impress and secure a lien in accordance with Arizona Revised Statutes section 33‑993, subsection A.
G. If there is more than one owner, any notice of completion signed by less than all such owners shall recite the name and address of all such owners. If the notice of completion is signed by a successor in interest, it shall recite the names and addresses of his transferor or transferors.
H. A notice of completion shall be recorded in the office of the county recorder of the county in which the property or some part of the property is located. The county recorder of the county in which the notice of completion is recorded shall index the notice of completion under the index classification in which mechanics' and materialmen's liens are recorded.
I. If a notice of completion has been recorded, the person recording the notice, within fifteen days of recording, shall mail by certified or registered mail postage prepaid a copy of the notice of completion and a written statement of the date of recording and the county recorder's record location information to the original contractor and all persons from whom the owner has previously received a preliminary twenty-day notice. In the event the owner or its agent fails to mail a copy of the notice of completion and a written statement of the date of recording and the county recorder's record location information within fifteen days of recording to any person from whom the owner has received a preliminary twenty‑day notice, such person shall have one hundred twenty days from completion as defined in section 33‑993 to impress and secure the lien provided for in this article.
F. On completion of a construction project, a notice of completion may be filed with the online registry established pursuant to section 32-1104.01 by an owner, a contractor, a lender that has provided financing for the construction project, a surety that has provided bonding for the construction project or a title company issuing a title insurance policy. A notice of completion shall include all of the following:
1. The name, address, telephone number and e-mail address of the person filing the notice of completion.
2. The name and address of the owner or reputed owner.
3. The subdivision, the street address or location with respect to commonly known roads or other landmarks in the area and the tax parcel identification number of the construction project.
4. The tax parcel identification number for each parcel included in the project property.
5. The name of the county in which the project is located.
6. A general description of the construction project.
7. The date on which completion is alleged to have occurred.
8. The method used to determine final completion.
G. If a notice of completion has been filed as prescribed by this section, the operator of the online registry shall provide a notice of filing of notice of completion to all persons who have requested a notice of filing with respect to that project. If the owner or its agent fails to file a notice of completion and fails to ensure that, within fifteen days after filing the notice of completion, a notice of filing of notice of completion has been delivered to any person from whom the owner has received a preliminary twenty-day notice, that person has one hundred twenty days from completion to impress and secure the lien provided for in this article.
Sec. 6. Section 33-1056, Arizona Revised Statutes, is amended to read:
33-1056. Effective notice
A. The stop notice shall be delivered to the owner personally or left at the owner's residence with a person of suitable age and discretion or the owner's place of business. If the notice is served on a construction lender who holds construction monies and who maintains branch offices, it is not effective against the construction lender unless it is given to or served on the manager or other responsible officer or person at the office or branch that administers or holds the construction monies. Any stop notice may be served by certified mail with the same effect as by personal service.
B. Service of a stop notice or bonded stop notice is effective only if the claimant complies with all both of the following:
1. Gives Files any preliminary twenty-day notice in accordance with sections section 33‑992.01 and 33‑992.02 only as required by those sections that section.
2. Serves the stop notice or bonded stop notice before the expiration of the time within which to record a claim of lien under section 33‑993.
Sec. 7. Section 34-223, Arizona Revised Statutes, is amended to read:
34-223. Payment bond provisions; statute of limitations; preliminary twenty-day notice; service
A. Every claimant who has furnished labor or material in the prosecution of the work provided for in such contract in respect of which a payment bond is furnished under the provisions of section 34‑222, and who has not been paid in full therefor before the expiration of a period of ninety days after the day on which the last of the labor was done or performed by the claimant or material was furnished or supplied by the claimant for which such claim is made, shall have the right to sue on such payment bond for the amount, or the balance thereof, unpaid at the time of institution of such suit and to prosecute such action to final judgment for the sum or sums justly due the claimant, and have execution thereon, provided however that any such claimant having a direct contractual relationship with a subcontractor of the contractor furnishing such payment bond but no contractual relationship express or implied with such contractor shall have a right of action upon such payment bond upon giving the contractor only a written preliminary twenty-day notice, as provided for in section 33‑992.01, subsection C, paragraphs 1, 2, 3 and 4 and subsections E and H subsection D of this section, and upon giving written ninety-day notice to such contractor within ninety days from the date on which such claimant performed the last of the labor or furnished or supplied the last of the material for which such claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed. Such The written ninety-day notice shall be served by registered or certified mail, postage prepaid, in an envelope or by any other means that provides written third-party verification of delivery addressed to the contractor at any place the contractor maintains an office or conducts business, or at the contractor's residence.
B. Every suit instituted under this section shall be brought in the name of the claimant, but no such suit shall be commenced after the expiration of one year from the date on which the last of the labor was performed or materials were supplied by the person bringing this suit.
C. The contracting body and the agent in charge of its office shall furnish to anyone making written application therefor who states that it has supplied labor or materials for such work, and payment therefor has not been made, or that it is being sued on any such bond, or that it is the surety thereon, a certified copy of such bond and the contract for which it was given, which copy shall be prima facie evidence of the contents, execution and delivery of the original. Applicants shall pay for such certified copies such reasonable fees as the contracting body or the agent in charge of its office fixes to cover the actual cost of preparation thereof.
D. The preliminary twenty-day notice prescribed by subsection A of this section must be given not later than twenty days after the claimant has first furnished labor, professional services, materials, machinery, fixtures or tools to the jobsite and must contain the following information:
1. A general description of the labor, professional services, materials, machinery, fixtures or tools furnished or to be furnished.
2. The name and address of the person furnishing the labor, professional services, materials, machinery, fixtures or tools.
3. The name of the person who contracted for the purchase of labor, professional services, materials, machinery, fixtures or tools.
4. A legal description, subdivision plat, street address, location with respect to commonly known roads or other landmarks in the area or any other description of the jobsite sufficient for identification.
E. If labor, professional services, materials, machinery, fixtures or tools are furnished to a jobsite by a person who elects not to give a preliminary twenty-day notice as provided in subsection A of this section, that person is not precluded from giving a preliminary twenty-day notice not later than twenty days after furnishing other labor, professional services, materials, machinery, fixtures or tools to the same jobsite. That person is entitled to claim a lien only for such labor, professional services, materials, machinery, fixtures or tools furnished within twenty days before the service of the notice and at any time thereafter. If a notice contains a general description required by subsection D of this section of the labor, professional services, materials, machinery, fixtures or tools furnished up to the date of notice, it is not defective because after the date the person giving notice furnishes labor, professional services, materials, machinery, fixtures or tools that are not within the scope of the general description. The preliminary twenty-day notice required by this section may be given by mailing the notice by first class mail sent with a certificate of mailing, registered or certified mail, postage prepaid, or by any other means that provides written third-party verification of delivery addressed to the person to whom notice is to be given at the person's residence or business address. Service is complete at the time of the deposit of notice in the mail.
Sec. 8. Section 34-611, Arizona Revised Statutes, is amended to read:
34-611. Payment bonds for construction‑manager‑at‑risk, design‑build and job‑order‑contracting construction services; statute of limitations
A. Every claimant who has furnished labor or material in the prosecution of the construction provided for in a contract for construction‑manager‑at‑risk construction services, design‑build construction services and job‑order‑contracting construction services in respect of which a payment bond is furnished under section 34‑610, and who has not been paid in full before the expiration of ninety days after the day on which the last of the labor was done or performed by the claimant or material was furnished or supplied by the claimant for which the claim is made, shall have the right to sue on the payment bond for the amount, or the balance, unpaid at the time of institution of the suit and to prosecute the action to final judgment for the sums justly due the claimant, and have execution thereon, provided, however, that any claimant having a direct contractual relationship with a subcontractor of the contractor furnishing the payment bond but no contractual relationship express or implied with the contractor shall have a right of action on the payment bond on giving the contractor only a written preliminary twenty-day notice, as provided for in section 33‑992.01, subsection C, paragraphs 1, 2, 3 and 4 and subsections E and H chapter 2, article 2 of this title, and on giving written notice to the contractor within ninety days from the date on which the claimant performed the last of the labor or furnished or supplied the last of the material for which the claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed. The notice shall be served by registered or certified mail, postage prepaid, in an envelope addressed to the contractor at any place the contractor maintains an office or conducts business, or at the contractor's residence.
B. Every suit instituted under this section shall be brought in the name of the claimant, but no suit may be commenced after the expiration of one year from the date on which the last of the labor was performed or materials were supplied by the person bringing this suit.
C. The contracting body and the agent in charge of its office shall furnish to anyone making written application therefor and who states that it has supplied labor or materials for work, and payment therefor has not been made, or that it is being sued on any bond, or that it is the surety on the bond, a certified copy of the bond and the contract for which it was given, which copy is prima facie evidence of the contents, execution and delivery of the original. Applicants shall pay for these certified copies such reasonable fees as the contracting body or the agent in charge of its office fixes to cover the actual cost of preparation of the copies.
Sec. 9. Effective date
Sections 33-981, 33-992.01, 33-993, 33-1056, 34-223 and 34‑611, Arizona Revised Statutes, as amended by this act, are effective from and after December 31, 2015.
