Amidst the flurry of activity around the passage of the new Michigan Business Tax, legislation was quietly signed into law on June 28, 2007 that would amend the state’s construction lien law. (An analysis to Senate Bill 487 can be downloaded by clicking here.)
New notification requirements passed in 2006 were initially intended to affect only residential property improvements. However, due to ambiguity in the law, some interpretations suggested that the changes would also apply to commercial projects.
The bill would amend the Construction Lien Act to limit the following to residential structures:
- Requirements that an owner or lessee notify subcontractors, suppliers, and laborers upon receiving a contractor’s sworn statement and, upon request, give them a copy of the statement.
- A provision under which an owner or lessee may not rely on a waiver of lien provided by someone other than the lien claimant without verifying the waiver.
If you have any questions, please contact Mike Nystrom, Vice President of Government & Public Relations at mikenystrom@mi-ita.com or Keith Ledbetter, Director of Legislative Affairs at keithledbetter@mi-ita.com, or call the MITA office at (517) 347-8336.
