AB 157

This bill provides that, with certain, specified exceptions, no person may file or record with, or present for filing or recording to, a register of deeds a non-improvement contract or a notice, memorandum, or other instrument related to a non-improvement contract (document) and authorizes the register of deeds to reject such a document and return it unrecorded. The bill defines “non-improvement contract” as a contract 1) under which a person agrees to perform, furnish, or procure any work, labor, service, materials, plans, or specifications that are not used or consumed for the improvement of real estate, and 2) that purports to create a lien, encumbrance, or other security interest on real estate. A person that violates the recording or filing prohibition in the bill may be fined not more than $10,000 or imprisoned for not more than nine months, or both.

In addition, under the bill, an owner of real estate affected by such a filing or recording may bring a civil action against the person that files or records the document. If the owner prevails in the action, the court must order the real estate released from the effect of the document and may award actual damages, costs, and reasonable attorney fees.

Because this bill creates a new crime or revises a penalty for an existing crime, the Joint Review Committee on Criminal Penalties may be requested to prepare a report.