House Bill 1374 Summary

• Restricts mechanic's liens to only those in direct privity of contract with the property owner, preventing subcontractors without direct contracts from placing liens on the owner's property.

• Eliminates subcontractor lien rights against property owners who have paid their contractors in full, shifting liability to the contractor who failed to pay the subcontractor.

• Requires non-privity subcontractors to provide written notice to the contractor or owner within 30 days of first delivering labor, services, or materials, or forfeit lien rights.

• Establishes that contractors who receive payment must pay subcontractors and material suppliers on a pro rata basis within 15 days or face daily penalties up to 15% of the outstanding balance.

• Takes effect July 1, 2019, and brings several related lien statutes forward for potential future amendment.