UNOFFICIAL COPY 22 RS HB 719/GA
Page 1 of 6
HB071910.100 - 2170 - XXXX GA
AN ACT relating to mechanic's and materialman's liens. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 376.010 is amended to read as follows: 3
(1) (a) Any person who performs labor or furnishes materials, for the erection, 4
altering, or repairing of a house or other structure or for any fixture or 5
machinery therein, for the excavation of cellars, cisterns, vaults, wells, or for 6
the improvement in any manner of real property including the furnishing of 7
agricultural lime, fertilizer, concrete pipe or drainage tile, crushed rock, gravel 8
for roads or driveways, and materials used in the construction or maintenance 9
of fences, by contract with, or by the written consent of, the owner, contractor, 10
subcontractor, architect, or authorized agent, shall have a lien thereon, and 11
upon the land upon which the improvements were made or on any interest the 12
owner has therein, to secure the amount thereof with interest as provided in 13
KRS 360.040 and costs. 14
(b) The lien on the land or improvements shall be superior to any mortgage or 15
encumbrance created subsequent to the beginning of the labor or the 16
furnishing of the materials, and the lien, if asserted as hereinafter provided, 17
shall relate back and take effect from the time of the commencement of the 18
labor or the furnishing of the materials. 19
(c) The lien shall not be for a greater amount in the aggregate than the contract 20
price of the original contractor, and should the aggregate amount of the liens 21
exceed the price agreed upon between the original contractor and the owner 22
there shall be a pro rata distribution of the original contract price among the 23
lienholders. 24
(2) (a) The lien shall not take precedence over a mortgage or other contract lien or 25
bona fide conveyance for value without notice, duly recorded or lodged for 26
record according to law, unless the person claiming the prior lien shall, before 27 UNOFFICIAL COPY 22 RS HB 719/GA
Page 2 of 6
HB071910.100 - 2170 - XXXX GA
the recording of the mortgage or other contract lien or conveyance, file in the 1
office of the county clerk of the county where[wherein] he or she has 2
furnished or expects to furnish labor or materials, a statement showing that he 3
or she has furnished or expects to furnish labor or materials, and the amount 4
of the labor or materials in full[ thereof]. 5
(b) The lien shall not, as against the holder of a mortgage or other contract lien or 6
conveyance, exceed the amount of the lien claimed or expected to be claimed 7
as set forth in the statement. 8
(c) The statement shall, in other respects, be in the form prescribed by KRS 9
376.080. 10
(3) (a) When an agreement or contract for improving property is made with a 11
lessee and the property is owned by another, the lessee shall not be deemed 12
the agent of the owner to the extent of subjecting the right, title, or interest 13
of the owner of the property to any lien under this section unless the owner 14
has designated the lessee, in writing, as the owner's agent for purposes of 15
entering into the agreement or contract. 16
(b) When a lease agreement expressly provides that the interest of the owner 17
shall not be subject to liens for improvements made by the lessee, the lessee 18
shall notify the contractor making any improvements of the provisions in 19
the lease, and the knowing or willing failure of the lessee to provide this 20
notice to the contractor shall render the contract between the lessee and the 21
contractor voidable at the option of the contractor. 22
(c) The interest of the owner is not subject to any lien for improvements made 23
by the lessee or at the request of the lessee when: 24
1. The lease, a short form of the lease, or a memorandum of the lease 25
that contains the specific language in the lease prohibiting the 26
liability, is recorded in the office of the county clerk in the county 27 UNOFFICIAL COPY 22 RS HB 719/GA
Page 3 of 6
HB071910.100 - 2170 - XXXX GA
where the premises are located before the commencement of 1
improvements to the premises, and the terms of the lease expressly 2
prohibit the owner's liability; or 3
2. The terms of the lease expressly prohibit the liability for payment by 4
the owner, and a notice advising that leases for the rental of premises 5
on a parcel of land, or at a particular location, prohibit the liability for 6
payment by the owner has been recorded in the office of the county 7
clerk in the county where the parcel of land or particular location is 8
located before the commencement of improvements to the premises, 9
and the notice includes the following: 10
a. The name of the owner; 11
b. The legal description of the parcel of land or particular location 12
to which the notice applies; 13
c. The specific language contained in the various leases prohibiting 14
the liability for payment by the owner; and 15
d. A statement that all or a majority of the leases entered into for 16
the premises on the parcel of land or particular location 17
expressly prohibit liability for payment by the owner. 18
(d) A notice that is consistent with the requirements of paragraph (c) of this 19
subsection shall prohibit the acquisition of any lien for improvements made 20
by a lessee even if other leases for premises on the parcel of land or 21
particular location do not expressly prohibit liens or if the provisions of 22
each lease restricting the acquisition of liens are not identical; 23
(e) 1. If a notice has not been filed with the county clerk as provided under 24
this subsection, any person who performs labor or furnishes materials 25
for improvements being made by a lessee may serve written demand 26
on the owner, by certified mail, requesting a copy of the provision in 27 UNOFFICIAL COPY 22 RS HB 719/GA
Page 4 of 6
HB071910.100 - 2170 - XXXX GA
the lease prohibiting liability for payment for improvements made by 1
the lessee if the lease has not been produced by the lessee. 2
2. The demand shall: 3
a. Identify the lessee and premises being improved; and 4
b. Include a warning in conspicuous type that the failure to provide 5
the requested copy of the lease provision within thirty (30) days 6
of the receipt of the demand may result in the owner's property 7
being subject to the filing of a mechanic's or materialman's lien. 8
3. If the owner does not provide a true copy of the lease provision within 9
thirty (30) days of the receipt of the demand, the owner may be subject 10
to a lien under this section by the person performing labor or 11
furnishing materials, if the person has otherwise complied with the 12
requirements of this section, and if the person did not have actual 13
notice that the interest of the owner was not subject to a lien for 14
improvements made by the lessee. 15
(4) (a) A[No] person who has not contracted directly with the owner or the 16
owner's[his] agent and is not subject to subsection (3) of this section shall 17
not acquire a lien under this section unless he or she notifies in writing the 18
owner of the property to be held liable or the owner's[his] authorized agent, 19
within seventy-five (75) days on claims amounting to less than $1,000 and one 20
hundred twenty (120) days on claims in excess of $1,000 after the last item of 21
material or labor is furnished, of his or her intention to hold the property 22
liable and the amount for which he or she will claim a lien; and[.] 23
(b) It shall be sufficient to prove that the notice was mailed to the last known 24
address of the owner of the property upon which the lien is claimed, or to the 25
owner's[his] duly authorized agent within the county in which the property to 26
be held liable is located. 27 UNOFFICIAL COPY 22 RS HB 719/GA
Page 5 of 6
HB071910.100 - 2170 - XXXX GA
(5) (a)[(4)] A[No] person who has not contracted directly with the owner or the 1
owner's[his] authorized agent and is not subject to subsection (3) of this 2
section shall not acquire a lien under this section on an owner-occupied single 3
or double family dwelling, the appurtenances or additions thereto, or upon 4
other improvements for agricultural or personal use to the real property or real 5
property contiguous thereto and held by the same owner, upon which the 6
owner-occupant's dwelling is located, unless he or she notifies in writing the 7
owner of the property to be held liable or the owner's[his] authorized agent 8
not more than seventy-five (75) days after the last item of material or labor is 9
furnished, of the delivery of the material or performance of labor and of his or 10
her intention to hold the property liable and the amount for which he or she 11
will claim a lien. 12
(b) 1. It shall be sufficient to prove that the notice was mailed to the last 13
known address of the owner of the property upon which the lien is 14
claimed, or to the owner's[his] duly authorized agent. 15
2. The[This] notice under this subsection is in lieu of the notice provided 16
for in subsection (4) of this section[(3)]. 17
(c) Notwithstanding the foregoing provisions of this subsection, the lien provided 18
for under this section shall not be applicable to the extent that an owner-19
occupant of a single or double family dwelling or owner of other property as 20
described in this subsection has, prior to receipt of the notice provided for in 21
this subsection, paid the contractor, subcontractor, architect, or authorized 22
agent for work performed or materials furnished prior to such payment. 23
(d) The contractor or subcontractor cannot be the authorized agent under this 24
subsection. 25
(e) This subsection shall apply to the construction of single or double family 26
homes constructed pursuant to a construction contract with a property owner 27 UNOFFICIAL COPY 22 RS HB 719/GA
Page 6 of 6
HB071910.100 - 2170 - XXXX GA
and intended for use as the property owner's dwelling. 1
(6)[(5)] For purposes of this section, "labor" includes but is not limited to all supplies 2
and work done by teams, trucks, machinery, and mechanical equipment, whether 3
the owner furnishes a driver or operator or not. 4
(7)[(6)] (a) "Supplies" includes small tools and equipment reasonably necessary in 5
performing the work required to be done, including picks, shovels, sledge 6
hammers, axes, pulleys, wire cables, ropes, and other similar items costing not 7
more than fifty dollars ($50) per item, and tires and tubes furnished for use on 8
vehicles engaged in the performance of the work. 9
(b) "Supplies" also includes the cost of labor, materials, and repair parts supplied 10
or furnished for keeping all machinery and equipment used in the performance 11
of the work in good operating condition; and shall include the agreed or 12
reasonable rental price of equipment and machinery used in performing the 13
work to be done: 14
1. The lien for rental equipment or machinery shall not be more than the 15
aggregate sum of six (6) months' rental, and the aggregate amount of 16
such rental shall not exceed sixty percent (60%) of the agreed value of 17
the machinery or equipment; and 18
2. The liens for supplies as defined in this subsection are subordinate to the 19
liens for labor, material, and supplies as defined in this section. 20
Section 2. KRS 371.325 is amended to read as follows: 21
No waiver of defense clause in any retail installment contract shall operate to cut off any 22
defense that an owner-occupant of a single or double family dwelling or the 23
appurtenances or additions thereto may have acquired by virtue of a third party 24
materialmen's lien under KRS 376.010[(4)]. 25