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THE ARIZONA SGtrNtr
By FRANK DAVIS executive vice president
ARIZONA has adopted a new Lien '^ Law which becomes effective Aug- ust 8, 1973.
The following: is a summary of Chapter 140 which provides the follow changes in respect to mechanics, and materialmen's liens:
(1) No lien will be permitted against an existing owner-occupied dwelling except by a person having a direct contract with the owner. However, since the act defines dwelling as an existing structure and the real property on which the stnrcture is situated, mechanics' and materialmen's lien rights, as they existed before passage of this bill, still may apply to newly-constructed dwellings such as those in suMivision* new owner of Suden's Lumber & Hardwa"re Co., Stanford. Returning to Montana from California, Bob has established himself in familiar country.
(2) An owner will be able to pro- tect his property against liens by requiring the contractor to furnish a payment bond. To be efrective, such a bond must be in an annount equal to the full amount of the contract and the bond, together with a copy of the contract, must be filed in the county recorder's orffice. A payment bond will be effective against the liens under the provisions of this measure as well as those of the existing law.
OSHA regulation #1910, which applies to our industry, does not specify that back-up alarms are required on trucks and forklifts. (Construction Regulation #7926 states that an alarm is required on construction sites and jobs if the rear view is obstructed unless a flagman is provided.)
However, reports indicate that OSHA officials anticipate that the requirements for such alarrns will be extended to include retail lumber operations.
'l '* :*
Congress has quietly set in motion actions to assure itself a 77/o pay boost-from $42,500 to 950,000 annually, starting next January. What happened to the 5.5% gtlLideline for inereases?
(3) An owner will be able to discharge a lien against his property by obtaining a surety bond. Such a bond must be in an amount equal to one and one-half times the claim stated in the lien and it must be filed wittr the county recorder.
(4) Monies paid to a contractor by or for an owner-irccupant will be deemed to be paid in trust and must be held by a contractor for the benefit of subcontractors, laborers, and materialmen. This provision will only apply to contracts in respect to dwellings cwered in the provisions of this measure. It will not apply to new constnrction.
(5) No person who is required to be licensed as a contractor will have lien rights if that person does not have a valid contractot's license.
