Colorado Legislative Council Staff
NO FISCAL IMPACT
January 14, 1999
House Business Affairs
Steve Tammeus (303-866-2756)
TITLE: CONCERNING THE REQUIRED FILING OF A PRELIMINARY NOTICE WITH A PRINCIPAL CONTRACTOR AS A PREREQUISITE TO CLAIMING A MECHANIC'S LIEN FOR LABOR PERFORMED OR MATERIALS FURNISHED.
Summary of Assessment
This bill requires any qualified person who intends to claim a mechanic's lien to provide a preliminary notice to the principal contractor. The bill specifies the time frame in which the notice must be delivered, the manner of acceptable delivery, and the content of the notice. The provisions of the bill apply only when the principal contractor's contract value is for $50,000 or more. The bill requires the principal contractor to post a sign on the construction site notifying potential claimants of this requirement. The provisions of the bill will apply to liens claimed on and after July 1, 2000. the bill will become effective 90 days after adjournment unless a referendum petition is filed.
Under current law, the provisions of the Colorado rules of civil procedure are observed in proceedings to establish and enforce mechanics' liens. This bill will not affect state or local government revenue or expenditures. Therefore, the bill is assessed as having no fiscal impact.