Introduced Version






SENATE BILL No. 138

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 32-28-3-1.5.

Synopsis: Mechanic's liens. Prohibits a subcontractor from obtaining a mechanic's lien if the subcontractor knows or should know that the general contractor is defaulting on payments to the subcontractor or another subcontractor. Requires a subcontractor to mitigate damages after the subcontractor knows or should know the general contractor is defaulting on payments to the subcontractor or another subcontractor.

Effective: July 1, 2003.





Kenley




    January 7, 2003, read first time and referred to Committee on Judiciary.







Introduced

First Regular Session 113th General Assembly (2003)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
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SENATE BILL No. 138



    A BILL FOR AN ACT to amend the Indiana Code concerning property.

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 32-28-3-1.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1.5. (a) A subcontractor may not have a lien under this chapter for any:
        (1) labor;
        (2) services;
        (3) material; or
        (4) machinery;
provided after the date the subcontractor knows or should reasonably know that the general contractor is not making payments for work performed by the subcontractor or another subcontractor.
    (b) A subcontractor has a duty to mitigate damages in connection with work described in subsection (a) that is performed after the date the subcontractor knows or reasonably should know that a general contractor is not making payments for work performed by the subcontractor or another subcontractor.


    SECTION 2. [EFFECTIVE JULY 1, 2003] IC 32-28-3-1.5 , as added by this act, applies to work performed by a subcontractor after June 30, 2003.