2010 House Bill 5830 / Public Act 147

Abolish homeowner construction lien recovery fund

Introduced in the House

Feb. 17, 2010

Introduced by Rep. Richard Hammel (D-48)

To abolish the state homeowner construction lien recovery fund. Money in the fund comes from assessments against licensed contractors, fees on laborers who recover from the Fund, and on certain other lien claimants. It is used to pay the claims of subcontractors, suppliers, and laborers, if the owner or lessee of residential property can demonstrate that he or she paid a general contractor for the contracted services.

Referred to the Committee on Appropriations

March 17, 2010

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

June 16, 2010

Substitute offered

To replace the previous version of the bill with one that revises details but does not change the substance as previously described.

The substitute passed by voice vote

Passed in the House 102 to 1 (details)

To abolish the state homeowner construction lien recovery fund, which is which is essentially insolvent, and cannot meet claims on it. Money in the fund comes from assessments against licensed contractors, fees on laborers who recover from the Fund, and on certain other lien claimants. It is used to pay the claims of subcontractors, suppliers, and laborers, if the owner or lessee of residential property can demonstrate that he or she paid a general contractor for the contracted services.

Motion to reconsider by Rep. Robert Dean (D-75)

To reconsider the vote by which the bill passed. Several legislators changed their minds after hearing a floor speech about the bill.

The motion passed by voice vote

Received

To abolish the state homeowner construction lien recovery fund, which is which is essentially insolvent, and cannot meet claims on it. Money in the fund comes from assessments against licensed contractors, fees on laborers who recover from the Fund, and on certain other lien claimants. It is used to pay the claims of subcontractors, suppliers, and laborers, if the owner or lessee of residential property can demonstrate that he or she paid a general contractor for the contracted services.

Passed in the House 94 to 9 (details)

Received in the Senate

June 17, 2010

Referred to the Committee on Appropriations

July 21, 2010

Reported without amendment

With the recommendation that the bill pass.

Aug. 18, 2010

Passed in the Senate 36 to 1 (details)

To abolish the state homeowner construction lien recovery fund, which is which is essentially insolvent, and cannot meet claims on it. Money in the fund comes from assessments against licensed contractors, fees on laborers who recover from the Fund, and on certain other lien claimants. It is used to pay the claims of subcontractors, suppliers, and laborers, if the owner or lessee of residential property can demonstrate that he or she paid a general contractor for the contracted services.

Signed by Gov. Jennifer Granholm

Aug. 23, 2010