HCS SB 320 -- MECHANICS' LIENS

SPONSOR:  Koster (Baker, 123)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Judiciary
by a vote of 10 to 0.

This substitute creates a lien against real estate for the
non-payment of rental equipment fees.  The lien may be for the
reasonable rental value of the machinery or equipment during the
period of actual use and for periods of non-use based on the
rental contract.  There may be no lien unless the improvements
are made on commercial property, the amount of the claim exceeds
$5,000, and the party claiming the lien provides written notice
within five business days of the commencement of the use of the
rental property to the property owner that the rental equipment
is being used on their property.  The substitute includes a
statute of limitations which begins to run 60 days after all
rental equipment or machinery is removed from the property.

FISCAL NOTE:  No impact on state funds in FY 2006, FY 2007, and
FY 2008.

PROPONENTS:  Supporters say that the rental of construction
equipment should be something for which a mechanic's lien is
available.

Testifying for the bill was Senator Koster.

OPPONENTS:  Those who oppose the bill say that the lien doesn't
have to be filed until the equipment is returned, and there are
concerns about the notice that is provided to the owner of the
property.

Testifying against the bill was Associated General Contractors.

OTHERS:  Others testifying on the bill say mechanics' liens
should be limited to commercial construction.

Others testifying on the bill was Missouri Land Title
Association.

Amy Woods, Senior Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:21 pm