779.08 (2) If an undertaking is furnished, it shall be accompanied by the affidavits affidavit of the sureties surety in which each states that the surety is worth, over and above all debts and liabilities in property within this state not exempt from execution, an amount in the aggregate equal to 125% or more of the amount of the claim for lien.
204,42
Section
42. 779.10 of the statutes is amended to read:
779.10 Judgment. The judgment shall adjudge the amount due to each claimant who is a party to the action. It shall direct that the interest of the owner in the premises at the commencement of the work or performing, furnishing, or procuring the labor, services, materials, plans, or specifications for which liens are given and which the owner has since acquired, or so much thereof as is necessary, be sold to satisfy the judgment, and that the proceeds be brought into court with the report of sale to abide the order of the court. If the premises can be sold in parcels without injury to the parties, the court may adjudge that the sale be so made. If the plaintiff fails to establish a lien upon the premises but does establish a right to recover for labor or, services, materials, plans, or specifications, the plaintiff may have a judgment against the party liable.
204,43
Section
43. 779.13 (2) of the statutes is amended to read:
779.13 (2) Every lien claimant, or the attorney who executed and filed a claim for lien on the claimant's behalf, who has received from any person interested in the premises described in the claim a written statement that the premises described in the claim are not in fact the premises on which the claimant performed, furnished
, or procured the work or labor, services, materials, plans, or specifications to which the claim relates together with a written demand that the claim be satisfied of record shall, if in fact the statement of such person about the mistaken description is true, promptly satisfy the lien claim of record at the lien claimant's expense. Failure to satisfy the lien claim of record within a reasonable time, if in fact the statement asserting the mistaken description is true, shall render the person so failing liable to pay to the person demanding the satisfaction a sum equal to one-half of the sum claimed in the claim for lien.
204,44
Section
44. 779.135 (1) of the statutes is amended to read:
779.135 (1) Provisions requiring a contractor, subcontractor or material supplier any person entitled to a construction lien to waive his or her right to a construction lien or to a claim against a payment bond before he or she has been paid for the labor or, services, materials or both, plans, or specifications that he or she performed, furnished, or procured.
204,45
Section
45. 779.135 (3) of the statutes is amended to read:
779.135 (3) Provisions making a payment to a general prime contractor from any person who does not have a contractual agreement with the subcontractor or, supplier, or service provider a condition precedent to a general prime contractor's payment to a subcontractor
or a , supplier, or service provider. This subsection does not prohibit contract provisions that may delay a payment to a subcontractor until the prime contractor receives payment from any person who does not have a contractual agreement with the subcontractor or, supplier, or service provider.
204,46
Section
46. 779.14 (1) (intro.) of the statutes is amended to read:
779.14 (1) Definition. (intro.) In this section, "subcontractor or, supplier, or service provider" means the following:
204,47
Section
47. 779.14 (1) (a) of the statutes is amended to read:
779.14 (1) (a) Any person who has a direct contractual relationship, expressed or implied, with the prime contractor or with any subcontractor of the prime contractor to perform, furnish, or procure labor or furnish, services, materials, plans, or specifications, except as provided in par. (b).
204,48
Section
48. 779.14 (1) (b) of the statutes is amended to read:
779.14 (1) (b) With respect to contracts entered into under s. 84.06 (2) for highway improvements, any person who has a direct contractual relationship, expressed or implied, with the prime contractor to perform, furnish, or procure labor or furnish, services, materials, plans, or specifications.
204,49
Section
49. 779.14 (1e) (a) of the statutes is amended to read:
779.14 (1e) (a) All contracts involving $10,000 or more for the performance of performing, furnishing, or procuring labor or furnishing, services, materials, plans, or specifications, when the same pertains to any public improvement or public work shall contain a provision for the payment by the prime contractor of all claims for labor performed and, services, materials
, plans, or specifications performed, furnished, procured, used
, or consumed in making that pertain to the public improvement or performing the public work, including, without limitation because of enumeration, fuel, lumber, building materials, machinery, vehicles, tractors, equipment, fixtures, apparatus, tools, appliances, supplies, electric energy, gasoline, motor oil, lubricating oil, greases, state imposed taxes, premiums for worker's compensation insurance and contributions for unemployment insurance.
204,50
Section
50. 779.14 (1e) (b) of the statutes is amended to read:
779.14 (1e) (b) All contracts that are in excess of $30,000, as indexed under sub. (1s), and that are for the performance of performing, furnishing, or procuring labor or furnishing, services, materials
, plans, or specifications for a public improvement or public work shall contain a provision under which the prime contractor agrees, to the extent practicable, to maintain a list of all subcontractors and, suppliers, and service providers performing, furnishing, or procuring labor or furnishing, services, materials, plans, or specifications under the contract.
204,51
Section
51. 779.14 (1m) (c) (intro.) of the statutes is amended to read:
779.14 (1m) (c) State contracts. (intro.) The following requirements apply to contracts with the state for the performance of performing, furnishing, or procuring labor or furnishing, services, materials
, plans, or specifications for a public improvement or public work:
204,52
Section
52. 779.14 (1m) (d) (intro.) of the statutes is amended to read:
779.14 (1m) (d) Local government contracts. (intro.) The following requirements apply to contracts, other than contracts with the state, for the performance of performing, furnishing, or procuring labor or furnishing, services, materials, plans, or specifications for a public improvement or public work:
204,53
Section
53. 779.14 (1m) (e) 2. b. of the statutes is amended to read:
779.14 (1m) (e) 2. b. The payment to every person, including every subcontractor or, supplier, or service provider, of all claims that are entitled to payment for labor performed and, services, materials, plans, or specifications performed, furnished, or procured for the purpose of making the public improvement or performing the public work as provided in the contract and sub. (1e) (a).
204,54
Section
54. 779.14 (2) (a) (intro.) of the statutes is amended to read:
779.14 (2) (a) (intro.) Except as provided in par. (am), no later than one year after the completion of work under the contract, any party in interest, including any subcontractor or, supplier, or service provider, may maintain an action in that party's name against the prime contractor and the sureties upon the bond for the recovery of any damages sustained by reason of any of the following:
204,55
Section
55. 779.14 (2) (a) 2. of the statutes is amended to read:
779.14 (2) (a) 2. Except as provided in subd. 3., failure of the prime contractor or a subcontractor of the prime contractor to comply with a contract, whether express or implied, with a subcontractor or, supplier
, or service provider for the performance of performing, furnishing, or procuring labor or furnishing of, services, materials, plans, or specifications for the purpose of making the public improvement or performing the public work that is the subject of the contract with the governmental entity.
204,56
Section
56. 779.14 (2) (a) 3. of the statutes is amended to read:
779.14 (2) (a) 3. With respect to contracts entered into under s. 84.06 (2) for highway improvements, failure of the prime contractor to comply with a contract, whether express or implied, with a subcontractor or, supplier, or service provider of the prime contractor for the performance of performing, furnishing, or procuring labor or furnishing of, services, materials, plans, or specifications for the purpose of making the highway improvement that is the subject of the contract with the governmental entity.
204,57
Section
57. 779.14 (2) (am) 1. of the statutes is amended to read:
779.14 (2) (am) 1. Except as provided in subd. 2., a subcontractor or, supplier, or service provider may maintain an action under par. (a) only if the subcontractor or
, supplier, or service provider has notified served a written notice on the prime contractor in writing that the subcontractor or, supplier, or service provider has provided performed, furnished, or procured, or will provide
perform, furnish, or procure labor or, services, materials, plans, or specifications to the public work or improvement. The notice must be provided served no later than 60 days after the date on which the subcontractor or, supplier, or service provider first provided performed, furnished, or procured the labor or, services, materials, plans, or specifications.
204,58
Section
58. 779.14 (2) (am) 2. a. of the statutes is amended to read:
779.14 (2) (am) 2. a. The contract for the provision of performing, furnishing, or procuring the labor
or, services, materials, plans, or specifications does not exceed $5,000.
204,59
Section
59. 779.14 (2) (am) 2. b. of the statutes is amended to read:
779.14 (2) (am) 2. b. The action is brought by an employee of the prime contractor, the subcontractor
or the, supplier, or service provider.
204,60
Section
60. 779.14 (2) (am) 2. c. of the statutes is amended to read:
779.14 (2) (am) 2. c. The subcontractor or
, supplier, or service provider is listed in the list required to be maintained under sub. (1e) (b) or in a written contract, or in a document appended to a written contract, between a subcontractor or, supplier, or service provider and the prime contractor.
204,61
Section
61. 779.14 (3) of the statutes is amended to read:
779.14 (3) Actions by a county. In an action by a county upon the bond all persons for whose protection it was given and who make claim thereunder may be joined in the action. The county highway commissioner may take assignments of all demands and claims for labor or material, services, materials, plans, or specifications and enforce the same in the action for the benefit of the assignors, and the judgment may provide the manner in which the assignors shall be paid.
204,62
Section
62. 779.15 (title) of the statutes is amended to read:
779.15 (title) Public improvements; lien on money, bonds, or warrants due the prime contractor; duty of officials.
204,63
Section
63. 779.15 (1) of the statutes is amended to read:
779.15 (1) Any person furnishing
who performs, furnishes, procures, manages, supervises, or administers any labor or, services, materials
, plans, or specifications to be used or consumed in making public improvements or performing public work, including fuel, lumber, machinery, vehicles, tractors, equipment, fixtures, apparatus, tools, appliances, supplies, electrical energy, gasoline, motor oil, lubricating oil, greases, state imposed taxes, premiums for worker's compensation insurance and contributions for unemployment insurance, to any prime contractor, except in cities of the 1st class, shall have a lien on the money or bonds or warrants due or to become due the prime contractor therefor, if the lienor, before payment is made to the prime contractor, gives serves a written notice to of the claim on the debtor state, county, town, or municipality of the claim. The debtor shall withhold a sufficient amount to pay the claim and, when it is admitted by the prime contractor or established under sub. (3), shall pay the claim and charge it to the prime contractor. Any officer violating the duty hereby imposed shall be liable on his or her official bond to the claimant for the damages resulting from the violation. There shall be no preference between the lienors serving the notices.
204,64
Section
64. 779.15 (2) of the statutes is amended to read:
779.15 (2) Service of the notice under sub. (1) shall be made by registered mail upon the clerk of the municipality or in the clerk's absence upon the treasurer. If any of the money due the prime contractor is payable by the state, service of the notice under sub. (1) shall be served by registered mail upon the state department, board
, or commission having jurisdiction over the work. A copy of the notice shall be served concurrently by registered mail upon the prime contractor.
204,65
Section
65. 779.15 (3) of the statutes is amended to read:
779.15 (3) If a valid lien exists under sub. (1) and the prime contractor does not dispute the claim within 30 days after service on the prime contractor of the notice provided in sub. (2), by serving written notice to on the debtor state, county, town, or municipality and the lien claimant, the amount claimed shall be paid over to the claimant on demand and charged to the prime contractor pursuant to sub. (1). If the prime contractor disputes the claim, the right to a lien and to the moneys in question shall be determined in an action brought by the claimant or the prime contractor. If the action is not brought within 3 months from the time the notice required by sub. (1) is served, and notice of bringing the action filed with the officer with whom the claim is filed, the lien rights are barred.
204,66
Section
66. 779.15 (4) (a) of the statutes is amended to read:
779.15 (4) (a) When the total of the lien claims exceeds the sum due the prime contractor and where the prime contractor has not disputed the amounts of the claims filed, the debtor state, county, town or municipality, through the officer, board, department or commission with whom the claims are filed, shall determine on a proportional basis who is entitled to the money and shall notify all claimants and the prime contractor in writing of the determination. Unless an action is commenced by a claimant or by the prime contractor within 20 days after the mailing of the notice, the money shall be paid out in accordance with the determination and the liability of the state, county, town or municipality to any lien claimant shall cease.
204,67
Section
67. 779.155 (2) of the statutes is amended to read:
779.155 (2) Certified copies of judgments filed. In this section, "municipality" includes city, village, county, town, school district, technical college district and any quasi municipal corporation. When the state or any municipality is indebted to any prime contractor, the owner of a judgment against the prime contractor may attach the debt by filing a certified copy of his or her judgment in the manner and subject to the conditions and limitations of this section. If the debt is owed by the state upon a contract for public improvements, the certified copy shall be filed with the officer, board, department or commission having jurisdiction over the work. Otherwise, the copy shall be filed with the department of administration. If the debt is owed by a municipality, the copy shall be filed with the municipal clerk or corresponding officer. The judgment creditor shall promptly notify the judgment debtor of the filing, within the time and as provided by s. 812.07 for service upon the defendant.
204,68
Section
68. 779.155 (3) of the statutes is amended to read:
779.155 (3) Payment to judgment creditor; exception. Except as to prime contractors on public works, the proper officers of the state or municipality shall pay the judgment out of moneys due the prime contractor or which become due the prime contractor, but no payment shall be made until 30 days after the creditor has filed with such officers proof that the contractor had been notified of the filing of a copy of the judgment against the contractor.
204,69
Section
69. 779.155 (4) of the statutes is amended to read:
779.155 (4) Same; funds due public
prime contractors. When the state or a municipality is indebted to a prime contractor for public improvements, payment shall not be made to the judgment creditor until 3 months after final completion and acceptance of the public work and then only out of moneys due the prime contractor in excess of unpaid lienable claims having priority under s. 779.15.
204,70
Section
70. 779.155 (5) (a) of the statutes is amended to read:
779.155 (5) (a) For the purpose of administering this section, sworn statements of the prime contractor setting forth the unpaid lien claims that have been or may be filed under s. 779.15 may be accepted by the proper officer, board, department, or commission, unless the judgment creditor or other interested person gives written notice that an action is pending to determine whether specified lien claims were incurred in performing the public work and the amount thereof, or to determine priorities in which event payments shall await the result of the action.
204,71
Section
71. 779.155 (5) (b) of the statutes is amended to read:
779.155 (5) (b) Within 10 days after filing the certified copy of the judgment under sub. (2), the prime contractor shall file the sworn statement in duplicate, with the proper officer, board, department or commission, who shall immediately furnish the judgment creditor with one of the statements. The judgment creditor shall have 10 days from the receipt thereof in which to serve the notice of pendency of the court action.
204,72
Section
72. 779.155 (6) of the statutes is amended to read:
779.155 (6) Payments to judgment creditor. After the expiration of the 3-month period, the moneys due the prime contractor in excess of unpaid lienable expenses and claims incurred in performing the public work shall be paid to the judgment creditor, but not exceeding the amount due on the judgment.
204,73
Section
73. 779.155 (7) of the statutes is amended to read:
779.155 (7) Priority of judgments over assignments. Any judgment filed under this section has priority over an assignment made by the prime contractor after the commencement of the action in which the judgment was obtained.
204,74
Section
74. 779.16 of the statutes is amended to read:
779.16 Theft by contractors. All moneys, bonds or warrants paid or to become due to any prime contractor or subcontractor for public improvements are a trust fund only in the hands of the prime contractor or subcontractor to the amount of all claims due or to become due or owing from the prime contractor or subcontractor for labor, services, materials, plans, and specifications performed, furnished, or procured for the improvements, until all the claims have been paid, and shall not be a trust fund in the hands of any other person. The use of the any such moneys by the any prime contractor or subcontractor for any other purpose other than the payment of claims on such public improvement, before the until all claims
have been satisfied, constitutes, except those which are the subject of a bona fide dispute and then only to the extent of the amount actually in dispute, have been paid in full or proportionally in cases of a deficiency, is theft by the prime contractor or subcontractor of moneys so misappropriated and is punishable under s. 943.20. This
If the prime contractor or subcontractor is a corporation, limited liability company, or other legal entity other than a sole proprietorship, such misappropriation also shall be deemed theft by any officers, directors, members, partners, or agents responsible for the misappropriation. Any of such misappropriated moneys which have been received as salary, dividend, loan repayment, capital distribution or otherwise by any shareholder, member, or partner not responsible for the misappropriation shall be a civil liability of that person and may be recovered and restored to the trust fund specified in this subsection by action brought by any interested party for that purpose. Except as provided in this subsection, this section shall not create a civil cause of action against any person other than the prime contractor or subcontractor to whom such moneys are paid or become due. Until all claims are paid in full, have matured by notice and filing or have expired, such money, bonds and warrants shall not be subject to garnishment, execution, levy or attachment.
204,75
Section
75. 779.17 of the statutes is amended to read:
779.17 Release of funds on filing bond. At any time after the service of a notice of lien claim or filing of judgment or pending the determination of any action commenced thereunder, the prime contractor shall be entitled to the release of any moneys due the prime contractor under the contract upon filing a bond, executed by a surety company duly authorized to transact business in this state, with the public authority having jurisdiction over the work, guaranteeing that the prime contractor will pay any judgment of the court rendered in favor of the lien claimant and all judgments filed. Such bond shall be in an amount sufficient to insure payment of the lien claims and judgments, and shall be approved as to form and amount by the public authority.
204,76
Section
76.
Initial applicability.
(1) This act first applies to improvements that visibly commence on the effective date of this subsection.
