SB 74: Clarify Excessive Public Construction Bond Claim Penalty

Official summary

Abstract published by the legislature (via Open States). Text as published by the legislature; reproduced verbatim.

Currently, a contractor on a private construction project has a statutory right to secure payment with a general mechanic's lien. However, if the contractor knowingly files on the lien for an excessive amount, the contractor forfeits all rights to the lien and is liable to the person against whom the lien was filed for costs and attorney fees. A contractor on a public construction project has a similar right to secure payment by filing a verified statement of claim, which requires the project owner to withhold funds sufficient to pay the claim, usually in the form of a bond. The act clarifies that a public construction contractor who knowingly files a verified statement of claim for an excessive amount forfeits all rights pursuant to the verified statement of claim. Thus, the act aligns, for both a private and public construction contractor, the penalty for claiming an excessive amount on a lien or verified statement of claim to the loss of rights related to that lien or verified statement of claim, respectively.     The act expressly allows for a private mechanic's lien or public verified statement of claim to include costs otherwise allowed under a contract in the lien or verified statement of claim amount, including costs incurred as a result of delay, lost productivity, or other disruption to the work. The act also clarifies that an award by a court for an amount less than the amount claimed in a lien or verified statement of claim does not render the amount claimed excessive.(Note: This summary applies to this bill as enacted.)

Sponsors

Sponsors by party (alphabetical): Democratic 7 · Republican 3

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. April 6, 2026Governor Signed
2. March 27, 2026Sent to the Governor
3. March 26, 2026Signed by the President of the Senate
4. March 26, 2026Signed by the Speaker of the House
5. March 19, 2026Senate Considered House Amendments - Result was to Concur - Repass
6. March 17, 2026House Third Reading Passed - No Amendments
7. March 16, 2026House Second Reading Special Order - Passed with Amendments - Committee
8. March 13, 2026House Second Reading Laid Over Daily - No Amendments
9. March 10, 2026House Committee on Judiciary Refer Amended to House Committee of the Whole
10. February 18, 2026Introduced In House - Assigned to Judiciary
11. February 17, 2026Senate Third Reading Passed - No Amendments
12. February 13, 2026Senate Third Reading Laid Over to 02/17/2026 - No Amendments

Showing 12 most recent of 15 actions. Full history