2005 Senate Bill 405 / 2006 Public Act 572

Revise construction lien law

Introduced in the Senate

April 21, 2005

Introduced by Sen. Valde Garcia (R-22)

To revise various provisions of the law authorizing construction liens on residential property, including licensure fees paid by builders and licensed trades that go into the homeowner construction lien recovery fund. Among other changes, the bill establishes that a lien may only be for the principal amount of any damages, not for any interest or delay penalties. It also would require laborers and other lien claimants to pay a $50 fee every three years, and change a one-time $50 fee on contractors to an annual $10 fee.

Referred to the Committee on Economic Development, Small Business, and Regulatory Reform

May 23, 2006

Reported without amendment

With the recommendation that the substitute (S-4) be adopted and that the bill then pass.

May 30, 2006

Substitute offered

To replace the previous version of the bill with one that moves the fee changes to Senate Bill 459.

The substitute passed by voice vote

May 31, 2006

Passed in the Senate 38 to 0 (details)

To revise various provisions of the law authorizing construction liens on residential property, including licensure fees paid by builders and licensed trades that go into the homeowner construction lien recovery fund. Among other changes, the bill establishes that a lien may only be for the principal amount of any damages, not for any interest or delay penalties. See Senate Bill 459, which has the fee changes and increases.

Received in the House

May 31, 2006

Referred to the Committee on Commerce

Dec. 5, 2006

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Dec. 12, 2006

Substitute offered

To replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described.

The substitute passed by voice vote

Amendment offered by Rep. Bill Huizenga (R-90)

To clarify that the person whose property is subject to a lien must take steps to verify that the lien may have been waived by the lienholder.

The amendment passed by voice vote

Dec. 13, 2006

Passed in the House 104 to 0 (details)

To revise various provisions of the law authorizing construction liens on residential property, including licensure fees paid by builders and licensed trades that go into the homeowner construction lien recovery fund. Among other changes, the bill establishes that a lien may only be for the principal amount of any damages, not for any interest or delay penalties. See Senate Bill 459, which has the fee changes and increases.

Received in the Senate

Dec. 13, 2006

Dec. 14, 2006

Passed in the Senate 38 to 0 (details)

To concur with the House-passed version of the bill.

Signed by Gov. Jennifer Granholm

Dec. 30, 2006