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S1454......................................................by STATE AFFAIRS RESIDENTIAL PROPERTY - Amends and adds to existing law to provide that a copy of a claim of lien shall be personally delivered or mailed within a certain time; and to require that general contractors disclose certain information to owners and purchasers of residential property. 02/14 Senate intro - 1st rdg - to printing 02/15 Rpt prt - to Com/HuRes 02/22 Rpt out - rec d/p - to 2nd rdg 02/25 2nd rdg - to 3rd rdg 02/27 3rd rdg - PASSED - 35-0-0 AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson, Burtenshaw, Cameron, Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Goedde, Hawkins, Hill, Ingram, Ipsen, Keough, King-Barrutia, Little, Lodge, Marley, Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen, Stegner, Stennett, Thorne, Wheeler, Williams NAYS -- None Absent and excused -- None Floor Sponsor - Andreason Title apvd - to House 02/28 House intro - 1st rdg - to St Aff 03/04 Rpt out - ref'd to Bus 03/08 Rpt out - rec d/p - to 2nd rdg 03/11 2nd rdg - to 3rd rdg Rls susp - PASSED - 49-16-5 AYES -- Aikele, Barraclough, Bedke, Block, Boe, Bolz, Callister, Campbell, Collins, Cuddy, Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner, Gould, Hadley, Harwood, Henbest, Higgins, Hornbeck, Jaquet, Kunz, Lake, Loertscher, Martinez, Meyer, Montgomery, Mortensen, Moyle, Pischner, Pomeroy, Raybould, Robison, Sali, Schaefer, Sellman, Shepherd, Smith(33), Smylie, Stone, Tilman, Trail, Wheeler, Young, Mr. Speaker NAYS -- Barrett, Bell, Bradford, Bruneel, Clark, Crow, Hammond, Jones, Kellogg, Kendell, Langford, McKague, Pearce, Ridinger, Roberts, Stevenson Absent and excused -- Bieter, Black, Mader, Smith(23), Wood Floor Sponsor - Smylie Title apvd - to Senate 03/12 To enrol 03/13 Rpt enrol - Pres signed Sp signed 03/14 To Governor 03/26 Governor signed Session Law Chapter 307 Effective: 07/01/02
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-sixth Legislature Second Regular Session - 2002IN THE SENATE SENATE BILL NO. 1454 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO LIENS; AMENDING SECTION 45-507, IDAHO CODE, TO PROVIDE THAT A COPY 3 OF A CLAIM OF LIEN SHALL BE PERSONALLY DELIVERED OR MAILED NO LATER THAN 4 FIVE BUSINESS DAYS FOLLOWING THE FILING OF SUCH CLAIM OF LIEN; AND AMEND- 5 ING CHAPTER 5, TITLE 45, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 6 45-525, IDAHO CODE, TO REQUIRE THAT GENERAL CONTRACTORS DISCLOSE CERTAIN 7 INFORMATION TO OWNERS AND PURCHASERS OF RESIDENTIAL REAL PROPERTY. 8 Be It Enacted by the Legislature of the State of Idaho: 9 SECTION 1. That Section 45-507, Idaho Code, be, and the same is hereby 10 amended to read as follows: 11 45-507. CLAIM OF LIEN. (1) Any person claiming a lien pursuant to the 12 provisions of this chapter must file a claim for record with the county 13 recorder for the county in which such property or some part thereof is situ- 14 ated. 15 (2) The claim shall be filed within ninety (90) days after the completion 16 of the labor or services, or furnishing of materials. 17 (3) The claim shall contain: 18 (a) A statement of his demand, after deducting all just credits and off- 19 sets; 20 (b) The name of the owner, or reputed owner, if known; 21 (c) The name of the person by whom he was employed or to whom he fur- 22 nished the materials; and 23 (d) A description of the property to be charged with the lien, sufficient 24 for identification. 25 (4) Such claim must be verified by the oath of the claimant, his agent or 26 attorney, to the effect that the affiant believes the same to be just. 27 (5) A true and correct copy of the claim of lien shall be served on the 28 owner or reputed owner of the property either by delivering a copy thereof to 29 the owner or reputed owner personally or by mailing a copy thereof by certi- 30 fied mail to the owner or reputed owner at his last known address. Such deliv- 31 ery or mailing shall be made no later thantwenty-fourfive (245)hoursbusi- 32 ness days following the filing of said claim of lien. 33 SECTION 2. That Chapter 5, Title 45, Idaho Code, be, and the same is 34 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 35 ignated as Section 45-525, Idaho Code, and to read as follows: 36 45-525. GENERAL CONTRACTORS -- RESIDENTIAL PROPERTY -- DISCLOSURES. (1) 37 Legislative intent. This section is intended to protect owners and purchasers 38 of residential real property by requiring that general contractors provide 39 adequate disclosure of potential liens. 40 (2) General contractor information. Prior to entering into any contract 41 in an amount exceeding two thousand dollars ($2,000) with a homeowner or resi- 2 1 dential real property purchaser to construct, alter or repair any improvements 2 on residential real property, or with a residential real property purchaser 3 for the purchase and sale of newly constructed property, the general contrac- 4 tor shall provide to the homeowner a disclosure statement setting forth the 5 information specified in this subsection. The statement shall contain an 6 acknowledgment of receipt to be executed by the homeowner or residential real 7 property purchaser. The general contractor shall retain proof of receipt and 8 shall provide a copy to the homeowner or residential real property purchaser. 9 The disclosure shall include the following: 10 (a) The homeowner or residential real property purchaser shall have the 11 right at the reasonable expense of the homeowner or residential real prop- 12 erty purchaser to require that the general contractor obtain lien waivers 13 from any subcontractors providing services or materials to the general 14 contractor; 15 (b) The homeowner or residential real property purchaser shall have the 16 right to receive from the general contractor proof that the general con- 17 tractor has a general liability insurance policy including completed oper- 18 ations in effect and proof that the general contractor has worker's com- 19 pensation insurance for his employees as required by Idaho law; 20 (c) The homeowner or residential real property purchaser shall be 21 informed of the opportunity to purchase an extended policy of title insur- 22 ance covering certain unfiled or unrecorded liens; and 23 (d) The homeowner or residential real property purchaser shall have the 24 right to require, at the homeowner's or residential real property 25 purchaser's expense, a surety bond in an amount up to the value of the 26 construction project. 27 (3) Subcontractor, materialmen and rental equipment information. 28 (a) A general contractor shall provide to a prospective residential real 29 property purchaser or homeowner a written disclosure statement, which 30 shall be signed by the general contractor listing the business names, 31 addresses and telephone numbers of all subcontractors, materialmen and 32 rental equipment providers having a direct contractual relationship with 33 the general contractor and who have supplied materials or performed work 34 on the residential property of a value in excess of five hundred dollars 35 ($500). A general contractor is not required under this subsection to dis- 36 close subcontractors, materialmen or rental equipment providers not 37 directly hired by or directly working for the general contractor. Such 38 information shall be provided within a reasonable time prior to: 39 (i) The closing on any purchase and sales agreement with a prospec- 40 tive residential real property purchaser; or 41 (ii) The final payment to the general contractor by a homeowner or 42 residential real property purchaser for construction, alteration, or 43 repair of any improvement of residential real property. 44 (b) All subcontractors, materialmen and rental equipment providers listed 45 in the disclosure statement are authorized to disclose balances owed to 46 the prospective real property purchasers or homeowners and to the agents 47 of such purchasers or homeowners. 48 (c) The general contractor shall not be liable for any error, inaccuracy 49 or omission of any information delivered pursuant to this section if the 50 error, inaccuracy or omission was not within the personal knowledge of the 51 general contractor. 52 (4) Failure to disclose. Failure to provide complete disclosures as 53 required by this section to the homeowner or prospective residential real 54 property purchaser shall constitute an unlawful and deceptive act or practice 55 in trade or commerce under the provisions of the Idaho consumer protection 3 1 act, chapter 6, title 48, Idaho Code. 2 (5) Definitions. For purposes of this section: 3 (a) "General contractor" means a person who enters into an agreement in 4 excess of two thousand dollars ($2,000) with: 5 (i) A homeowner or prospective residential real property purchaser 6 for the construction, alteration or repair of residential real prop- 7 erty; or 8 (ii) A prospective residential real property purchaser for the pur- 9 chase and sale of newly constructed property. 10 The term "general contractor" does not include subcontractors, materialmen 11 or rental equipment providers who do not have a direct contractual rela- 12 tionship with the homeowner or residential real property purchaser. 13 (b) "Residential real property" shall include owner and nonowner occupied 14 real property consisting of not less than one (1) nor more than four (4) 15 dwelling units.
STATEMENT OF PURPOSE RS 12059C1 This legislation is designed to address issues relating to liens. First, the legislation will extend the time for delivery of a claim of lien to owners of property from 24 hours to five days. Second, the legislation requires a disclosure by general contractors to homeowners and residential real property purchasers of certain options that homeowners and residential real property purchasers may have when they are remodeling an existing home, building a custom-built home or buying a home from a general contractor. These options may help consumers avoid liens. Third, the legislation requires general contractors to provide the business names, addresses and telephone numbers of certain subcontractors, materialmen and rental equipment providers to the homeowners and residential real property purchasers within a reasonable time prior to the closing on any purchase and sale agreement with a prospective residential real property purchaser or prior to final payment to the general contractor by the homeowner or residential real property purchaser for construction, alteration, or repair of any improvement of residential real property. This information may also help consumers avoid liens. Failure to provide these disclosures shall constitute an unlawful and deceptive act or practice in trade or commerce under the provisions of the Idaho Consumer Protection Act. FISCAL NOTE There should be no fiscal impact resulting from this proposed legislation. CONTACT: Name: Woody Richards Organization: Idaho Land Title Association Phone: 385-5451 Ron Williams Idaho Building Contractors Association 334-6633 S 1454