HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE FOR

HOUSE BILL 519

51st legislature - STATE OF NEW MEXICO - first session, 2013

AN ACT

RELATING TO LIENS; PROVIDING FOR NOTICE OF RESIDENTIAL LIENS; PROVIDING FOR THE DISCHARGE OF ALL LIENS UPON FULL PAYMENT FOR LABOR PERFORMED AND MATERIALS USED ON A RESIDENTIAL SITE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 48-2A-11 NMSA 1978 (being Laws 1989, Chapter 301, Section 11) is amended to read:

     "48-2A-11. NOTICE OF LIEN--DISCHARGE--PENALTY.--

          A. No lien that is claimed on a residential property containing four dwelling units or fewer shall be filed for record pursuant to Section 48-2-6 NMSA 1978 or recorded in the office of the county clerk without notice of return receipt pursuant to certified mail, return receipt requested, signed by the residential property's owner or owner's successor in interest and notice of return receipt pursuant to certified mail, return receipt requested, signed by the original contractor, if any. No lien that is claimed on a residential property containing four dwelling units or fewer and that is recorded in the office of the county clerk may be enforced by action or considered of record unless the notice signed by the residential property's owner or owner's successor in interest, and the notice signed by the original contractor, if any, is filed with the recorded lien. 

          B. Payment, and notice of that payment, by the owner or [his] the owner's successor in interest to any person entitled to payment of all and any amounts due and owing for any labor or materials furnished or other actions the performance of which could give rise to a lien pursuant to Section 48-2-2 NMSA 1978 to be performed upon a residential site shall discharge and render void and unenforceable all such liens [unless prior to payment any person who is entitled to such lien has] filed for record [his lien] pursuant to Section 48-2-6 NMSA 1978 on that residential site; provided that the notice of payment or a release of lien is filed for record with the county clerk of the county in which the residential property or some part thereof is situated. For the purposes of this section, the original contractor shall not be the agent of the owner.

          [B.] C. Any contractor or subcontractor justly indebted to a supplier of material or labor who accepts payment for construction described in Subsection [A] B of this section and knowingly and intentionally applies the proceeds to a use other than paying those persons with whom [he] the contractor or subcontractor contracted is guilty of a fourth degree felony and shall be sentenced pursuant to the provisions of Section 31-18-15 NMSA 1978."

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