Senate Bill No. 308, introduced by Senator Miller, amends existing law regarding the definition of "claimant" in public works projects to include individuals with noncontractual relationships with owners or contractors. The bill establishes that any claimant without a direct contractual relationship who wishes to assert a claim against the bond or unexpended contract funds must serve a written "Notice to Contractor and Public Entity" within 45 days of providing labor, services, materials, or equipment. This notice must include specific details such as the claimant's name and address, the contractor's name, a description of the work performed, and a statement of intent to pursue payment through the bond or unexpended funds. Failure to serve this notice in a timely manner will prevent the claimant from asserting any claims against the contractor, surety, or public entity, except for work completed before August 1, 2026.
Additionally, the bill requires claimants without a direct contractual relationship to serve a "Monthly Notice of Nonpayment" for any unpaid labor, services, materials, or equipment provided in a given month. This notice must be served within 75 days after the end of the month in which the work was performed and must include details such as the project name, contractor's name, and total amount claimed as unpaid. If a claimant fails to serve this monthly notice on time, they will lose the right to assert claims for that month, although rights for other months with timely notices will remain intact. The bill also outlines acceptable methods for serving these notices, including registered mail, commercial delivery services, and electronic mail, with service being effective upon mailing or transmission. The provisions of this bill will take effect on August 1, 2026.
Statutes affected: SB308 Original: 38:2242(A)