Senate Bill 42 Summary

• Requires property owners to designate a lien agent (title insurance company or agency) for construction improvements costing $30,000 or more, with exceptions for single-family residential improvements that the owner occupies.

• Establishes notice requirements whereby potential lien claimants must provide written notice to the designated lien agent within 15 days of first furnishing labor or materials to preserve lien rights.

• Lien agent must be registered with the Department of Insurance and maintains duties including acknowledging receipt of notices, maintaining records, and providing information to owners, title companies, purchasers, and attorneys within one business day of request.

• Building permits issued by city and county inspection departments must conspicuously display the lien agent's contact information for projects costing $30,000 or more.

• Subcontractors must provide notice to the lien agent and deliver copies of notice of claim of lien upon funds to the lien agent to prevent contractor actions from prejudicing their lien rights.

• Effective April 1, 2013 for improvements where labor or materials are first furnished on or after that date.