Bill Text: AZ SB1330 | 2020 | Fifty-fourth Legislature 2nd Regular | Introduced
Bill Title: Mechanics' and materialmen's liens; interest
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-01-29 - Senate read second time [SB1330 Detail]
Download: Arizona-2020-SB1330-Introduced.html
|
REFERENCE TITLE: mechanics' and materialmen's liens; interest |
|
State of Arizona Senate Fifty-fourth Legislature Second Regular Session 2020
|
|
SB 1330 |
|
|
|
Introduced by Senator Livingston
|
AN ACT
amending sections 33-981, 33-983 and 33-993, 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. 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, and interest on that amount as otherwise provided by law, 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 owner's agent and interest on that amount as otherwise provided by law.
C. A person who is required to be licensed as a contractor but who does not hold a valid contractor 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 required to give a preliminary twenty day 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 such notice and has made proof of service pursuant to section 33‑992.02.
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. 2. Section 33-983, Arizona Revised Statutes, is amended to read:
33-983. Lien for improvements to city lots or other land
A. A person who furnishes professional services or material or labors upon on a lot in an incorporated city or town, or any parcel of land not exceeding one hundred sixty acres in the aggregate, or fills in or otherwise improves the lot or such parcel of land, or a street, alley or proposed street or alley, within, in front of or adjoining the lot or parcel of land at the instance of the owner of the lot or parcel of land, shall have a lien on the lot or parcel of contiguous land not exceeding one hundred sixty acres in the aggregate, and the buildings, structures and improvements on the lot for professional services or material furnished and labor performed and interest on that amount as otherwise provided by law.
B. Every contractor, subcontractor, architect, builder, subdivider or other person having charge or control of the improvement or work on any such lot or parcel of land, either wholly or in part, is the agent of the owner for the purposes of this section, and the owner shall be liable for the reasonable value of professional services, labor or material furnished at the instance of such agent, upon on a lot or parcel of land as prescribed in this section, or any street, alley or proposed street or alley, within, in front of or adjoining such lot or parcel of land.
Sec. 3. Section 33-993, Arizona Revised Statutes, is amended to read:
33-993. Procedure to perfect lien; notice and claim of lien; service; recording; definitions
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, within sixty days after recordation of such notice, shall make duplicate copies of a notice and claim of lien and record one copy 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 rate of interest that is applicable to the lienor's demand and the legal basis for that rate of interest.
5. 6. 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. 7. A statement of the date the preliminary twenty day twenty‑day notice required by section 33‑992.01 was given. A copy of such preliminary twenty day twenty‑day notice and the proof of mailing required by section 33‑992.02 shall be attached.
B. For the 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 the 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.
D. C. If no a building permit is not 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.
F. D. 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 twenty‑day notice as prescribed by Arizona Revised Statutes section 33‑993, subsection I G.
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. E. If there is more than one owner, any notice of completion signed by less fewer 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 the notice of completion shall recite the names and addresses of his the successor's transferor or transferors.
H. f. 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. g. 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 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 twenty‑day notice, such person shall have one hundred twenty days from AFTER completion as defined in section 33‑993 to impress and secure the lien provided for in this article.
C. H. For the purposes of subsection A of this section: ,
1. "Completion" means the earliest earlier of the following events:
1. (a) 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. (b) 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.
E. 2. 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. (a) The name and address of the owner.
2. (b) The nature of the interest or estate of the owner.
3. (c) 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. (d) The name of the original contractor, if any.
5. (e) The names and addresses of any predecessors in interest if the property was transferred after the beginning of the work or improvement.
6. (f) The nature of the improvements to the real property.
