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HB 534: "An Act relating to the priority of certain real property liens."

00 HOUSE BILL NO. 534                                                                                                      
01 "An Act relating to the priority of certain real property liens."                                                       
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 34.35.060(c) is amended to read:                                                                    
04  (c)  A lien created by AS 34.35.050 - 34.35.120 [IN FAVOR OF AN                                                       
05 INDIVIDUAL ACTUALLY PERFORMING LABOR UPON A BUILDING OR                                                                 
06 OTHER IMPROVEMENT IN ITS ORIGINAL CONSTRUCTION OR OF A                                                                  
07 TRUSTEE OF AN EMPLOYEE BENEFIT TRUST FOR THOSE INDIVIDUALS] is                                                          
08 preferred to a prior encumbrance upon the land on which the building or other                                           
09 improvement is constructed.                                                                                             
10    * Sec. 2.  AS 34.35.060(a) is repealed.                                                                              
11    * Sec. 3.  APPLICATION.  (a)  Except as provided in (b) of this section, this Act applies                            
12 to liens that are created under AS 34.35.050 - 34.35.120 on or after the effective date of this                         
13 Act and that arise out of construction, alteration, or repair projects begun on or after the                            
14 effective date of this Act.  In this subsection, "construction, alteration, or repair" has the                          
01 meaning given in AS 34.35.120.                                                                                          
02  (b)  Liens described in (a) of this section, except liens in favor of an individual                                    
03 actually performing labor upon a building or other improvement in the building's original                               
04 construction or of a trustee of an employee benefit trust for those individuals, are not preferred                      
05 over encumbrances on the affected land that are recorded in the office of the recorder under                            
06 AS 40.17 before the effective date of this Act.  In this subsection, "encumbrance" has the                              
07 meaning given in AS 34.35.120.