Offered April 2, 1996.

Senate Substitute adopted, April 2, 1996.

Taken up for Perfection April 2, 1996. Bill declared Perfected and Ordered Printed, as amended.

TERRY L. SPIELER, Secretary.

S2543.05P

To repeal sections 429.015 and 431.180, RSMo 1994, relating to certain liens on real property, and to enact in lieu thereof four new sections relating to the same subject.

Be it enacted by the General Assembly of the State of Missouri, as follows:

Section A. Sections 429.015 and 431.180, RSMo 1994, is repealed and four new sections enacted in lieu thereof, to be known as sections 429.015, 429.103, 429.106 and 431.180, to read as follows:

429.015. 1. Every registered architect or corporation registered to practice architecture, every registered professional engineer or corporation registered to practice professional engineering, every registered landscape architect or corporation registered to practice landscape architecture, and every registered land surveyor or corporation registered to practice land surveying, who does any landscape architectural, architectural, engineering or land surveying work upon or performs any landscape architectural, architectural, engineering or land surveying service directly connected with the erection or repair of any building or other improvement upon land under or by virtue of any contract with the owner or proprietor thereof, or [his] such owner s or proprietor s agent, trustee, contractor or subcontractor, or without a contract if ordered by a city, town, village or county having a charter form of government to abate the conditions that caused a structure on that property to be deemed a dangerous building under local ordinances pursuant to section 67.410, RSMo, upon complying with the provisions of this chapter, shall have for [his] such person s landscape architectural, architectural, engineering or land surveying work or service so done or performed, a lien upon the building or other improvements and upon the land belonging to the owner or proprietor on which the building or improvements are situated, to the extent of one acre. If the building or other improvement is upon any lot of land in any town, city or village, then the lien shall be upon such building or other improvements, and the lot or land upon which the building or other improvements are situated, to secure the payment for the landscape architectural, architectural, engineering or land surveying work or service so done or performed. For purposes of this section, a corporation engaged in the practice of architecture, engineering, landscape architecture, or land surveying, shall be deemed to be registered if the corporation itself is registered under the laws of this state to practice architecture, engineering or land surveying[, or if any officer thereof, who owns more than fifty percent of the capital common stock of such corporation, is registered under the laws of this state as an architect, engineer, landscape architect, or land surveyor, and such registration of the corporation shall be effective as of the original date of registration of such principal stockholder].

2. Every mechanic or other person who shall do or perform any work or labor upon or furnish any material or machinery for the digging of a well to obtain water under or by virtue of any contract with the owner or proprietor thereof, or [his] such owner s or proprietor s agent, trustee, contractor or subcontractor, upon complying with the provisions of sections 429.010 to 429.340 shall have for [his] such person s work or labor done, or materials or machinery furnished, a lien upon the land belonging to such owner or proprietor on which the same are situated, to the extent of one acre, to secure the payment of such work or labor done, or materials or machinery furnished as aforesaid.

3. Every mechanic or other person who shall do or perform any work or labor upon, or furnish any material, fixtures, engine, boiler or machinery, for the purpose of demolishing or razing a building or structure under or by virtue of any contract with the owner or proprietor thereof, or [his] such owner s or proprietor s agent, trustee, contractor or subcontractor, or without a contract if ordered by a city, town, village or county having a charter form of government to abate the conditions that caused a structure on that property to be deemed a dangerous building under local ordinances pursuant to section 67.410, RSMo, upon complying with the provisions of sections 429.010 to 429.340, shall have for [his] such person s work or labor done, or materials, fixtures, engine, boiler or machinery furnished, a lien upon the land belonging to such owner or proprietor on which the same are situated, to the extent of one acre. If the building or buildings to be demolished or razed are upon any lot of land in any town, city or village, then the lien shall be upon the lot or lots or land upon which the building or other improvements are situated, to secure the payment for the labor and materials performed.

4. The provisions of sections 429.030 to 429.060 and sections 429.080 to 429.430 applicable to liens of mechanics and other persons shall apply to and govern the procedure with respect to the liens provided for in subsections 1, 2 and 3 of this section.

5. Any design professional or corporation authorized to have lien rights under subsection 1 of this section shall have a lien upon the building or other improvement and upon the land, whether or not actual construction of the planned work or improvement has commenced if:

(1) The owner or proprietor thereof, or such owner s or proprietor s agent or trustee contracted for such professional services directly with the design professional or corporation asserting the lien;

(2) The owner or proprietor is the owner or proprietor of such real property either at the time the contract is made or at the time the lien is filed; and

(3) The design professional or corporation files with the clerk of the circuit court in the county where the property is located a notice of intent to lien listing the name and address of the claimant, the name and address of the person with whom the claimant contracted, the amount owed, the address or legal description, if known, of the property, and the last date of services performed by the claimant or the claimant s subconsultants. Such notice shall be filed within three months from the date of the claimant s last work on the property. The clerk of the circuit court may charge a fee of one dollar for each notice filed and recorded pursuant to this subdivision. The notice described in this subdivision shall not be required if actual construction of improvements begins within three months from the date the claimant completed the claimant s work on the property.

6. If such property is purchased by a bona fide purchaser before a notice of intent to lien is recorded, the purchaser may take the property free of any such lien unless construction commences within six months of the design professional s last work related to improvement of the property.

7. Priority between such lien claimant and any other mechanic s lien claimant shall be determined pursuant to the provisions of section 429.260 on a pro rata basis.

429.103. If any lien or liens are filed under the provisions of sections 429.010 to 429.340 and no action to enforce any lien or liens has yet commenced, the owner of the land, or any affected tenant of such owner, may file a petition in the circuit court of the county in which such land or any portion thereof is located, making all lien claimants defendants therein, and request an adjudication of any lien or liens so claimed. If any lien claimant fails to establish such claimant s lien, the court may order the claimant to pay all or such portion of the costs of such action as the court deems appropriate. If no action to enforce or adjudicate any lien is filed within the time provided in section 429.170, such lien shall be deemed discharged at the expiration of such time.

429.106. The contractor or owner of the land, or any affected tenant of such owner, may furnish by bond, escrow, or letter of credit, at the discretion of the circuit court, good and sufficient sureties to the circuit court of the county in which such land or any portion thereof is located for the payment of all claims which might be the basis of liens filed pursuant to sections 429.010 to 429.340, to be approved by a judge of the circuit court for the county in which the land or any portion thereof is located, and filed with the clerk of the circuit court. The amount of such bond, escrow, or letter of credit shall be equal to or greater than the contract price of the contract for which such bond, escrow, or letter of credit is provided. Such bond, escrow, or letter of credit shall be to the state of Missouri for the use of and conditioned for the payment of all persons in whose favor liens might accrue under sections 429.010 to 429.340. When such a bond, escrow, or letter of credit is approved and filed, no lien shall attach under sections 429.010 to 429.340 for the benefit of any party claiming under or through the contract for which such bond, escrow or letter of credit is executed. If such bond, escrow, or letter of credit is filed after liens have been attached, such liens shall be deemed discharged. Any person within the class of claimants whose claim is covered by the bond, escrow, or letter of credit may bring a suit upon the bond, escrow, or letter of credit. Any judgment rendered in favor of the claimant shall include costs and reasonable attorney fees. Notwithstanding any other provision of Missouri law, or any order, ordinance, rule or regulation enacted or adopted by any county, city, town, village, municipality or political subdivision of this state, suit may be brought within twelve months after completion of the project for which such bond, escrow, or letter of credit has been furnished or within six months after the filing of said bond, escrow, or letter of credit with the clerk of the circuit court, whichever is later. Completion of the project is deemed to be that date upon which the owner or general contractor shall certify by a written statement filed with the circuit clerk of the county in which the property is located that the project is completed. If no such statement is filed, completion of the project is deemed to be the date that indebtedness last occurs for the delivery of services, labor or material provided by any person within the class of claimants whose claim is covered by the bond, escrow, or letter of credit. If no suit is brought within this time period, such bond, escrow, or letter of credit shall be considered canceled by operation of law, but such cancellation shall not reinstate any lien previously discharged. No notice is required to be given to any party before commencement of an action upon a bond, escrow, or letter of credit. Any bond, escrow, or letter of credit approved and filed shall be indexed in the records of the circuit court clerk s office pertaining to liens filed under sections 429.010 to 429.340 under the name of the land owner.

431.180. 1. All persons who enter into a contract for private construction work after August 28, 1995, shall make all scheduled payments pursuant to the terms of the contract. For purposes of this section, the term persons shall include a contractor, subcontractor, material supplier, construction manager, architect, professional engineer or land surveyor.

2. Any person who has not been paid in accordance with subsection 1 of this section may bring an action in a court of competent jurisdiction against a person who has failed to pay. The court may in addition to any other award for damages, award interest at the rate of up to one and one-half percent per month from the date payment was due pursuant to the terms of the contract, and reasonable attorney fees, to the prevailing party. If the parties elect to resolve the dispute by arbitration pursuant to section 435.350, RSMo, the arbitrator may award any remedy that a court is authorized to award hereunder.

3. The provisions of this section shall not apply to contracts for private construction work for the building, improvement, repair or remodeling of owner-occupied residential property of four units or less.