ARIZONA HOUSE OF REPRESENTATIVES FIRST REGULAR SESSION - 1999

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_DP__ For Committee on GOVERNMENT REFORM

_____ For Committee on ______________________________________

_X___ For Caucus and COW

_____ As Passed the House

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Abstract for HB 2635 (stop notices; construction liens) Sponsors: Cooley, Hatch-Miller et al.

HB 2635 states that any person entitled to give a stop notice to an owner or who is entitled to give a stop notice or a bonded stop notice to a construction lender, who fails to do so within thirty days after a written demand from the owner, forfeits the right to any stop notice on the work described in the demand. The bill requires that a written demand from the owner shall be 1) sent by registered or certified mail, postage prepaid, 2) be addressed to the business of the person entitled to give a stop notice and shall 3) include language demanding the stop notice, citing appropriate statute in bold-faced type.

HB 2635 states that monies shall not be withheld from the contractor or other person to whom they are due by reason of any stop notice for longer than three months unless an action is commenced against the owner or construction lender to enforce payment of the claim.

HB 2635 passed the Government Reform Committee unamended.

Prepared by: Elizabeth Hatch, Lee Payne

hb2635.cow 2/25/99 bh

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