Senate File 360 S-3174 Amend Senate File 360 as follows: 1 1. By striking everything after the enacting clause 2 and inserting: 3 < Section 1. Section 572.8, subsection 1, paragraph 4 b, Code 2013, is amended to read as follows: 5 b. The legal description of that adequately 6 describes the property to be charged with the lien. 7 Sec. 2. Section 572.11, Code 2013, is amended to 8 read as follows: 9 572.11 Extent of lien posted after ninety days. 10 Liens perfected under section 572.10 shall be 11 enforced against the property or upon the bond, if 12 given, by the owner or by the owner-builder’s buyer, 13 only to the extent of the balance due from the owner 14 to the general contractor or from the owner-builder’s 15 buyer to the owner-builder at the time of the service 16 of such notice; but if the bond was given by the 17 general contractor or owner-builder, or person 18 contracting with the subcontractor filing posting the 19 claim for a lien, such bond shall be enforced to the 20 full extent of the amount found due the subcontractor. 21 Sec. 3. Section 572.13A, subsections 1 and 2, Code 22 2013, are amended to read as follows: 23 1. A general contractor or owner-builder who has 24 contracted or will contract with a subcontractor to 25 provide labor or furnish material for the property 26 shall post a notice of commencement of work to the 27 mechanics’ notice and lien registry internet website 28 within no later than ten days of after the commencement 29 of work on the property. A notice of commencement 30 of work is effective only as to any labor, service, 31 equipment, or material furnished to the property 32 subsequent to the posting of the notice of commencement 33 of work. A notice of commencement of work shall 34 include all of the following information: 35 a. The name and address of the owner. 36 b. The name, address, and telephone number of the 37 general contractor or owner-builder. 38 c. The address of the property or a description of 39 the location of the property if the property cannot be 40 reasonably identified by an address. 41 d. The legal description of that adequately 42 describes the property to be charged with the lien . 43 e. The date work commenced. 44 f. The tax parcel identification number. 45 g. Any other information prescribed by the 46 administrator pursuant to rule. 47 2. If a general contractor or owner-builder 48 fails to post the required notice of commencement 49 of work to the mechanics’ notice and lien registry 50 -1- SF360.1647 (1) 85 (amending this SF 360 to CONFORM to HF 565) rh/nh 1/ 6 #1.

internet website pursuant to subsection 1 , within ten 1 days of commencement of the work on the property, a 2 subcontractor may post the notice in conjunction with 3 the filing posting of the required preliminary notice 4 pursuant to section 572.13B . A notice of commencement 5 of work must be posted to the mechanics’ notice and 6 lien registry internet website before preliminary 7 notices pursuant to section 572.13B may be posted. 8 Sec. 4. Section 572.13A, subsection 3, paragraph c, 9 Code 2013, is amended to read as follows: 10 c. The notice described in subsection 1 shall be 11 sent to the owner’s address as posted to the mechanics’ 12 notice and lien registry by the general contractor, 13 owner-builder, or subcontractor . If the owner’s 14 address is different than the property address, a 15 copy of the notice shall also be sent to the property 16 address, addressed to the owner if a mailing address 17 has been assigned to the property by the United States 18 postal service . 19 Sec. 5. Section 572.13A, subsection 3, Code 2013, 20 is amended by adding the following new paragraph: 21 NEW PARAGRAPH . d. Notices under this section shall 22 not be sent to owner-builders. 23 Sec. 6. Section 572.13B, subsection 1, paragraph g, 24 Code 2013, is amended to read as follows: 25 g. The legal description of that adequately 26 describes the property to be charged with the lien . 27 Sec. 7. Section 572.13B, subsection 2, Code 2013, 28 is amended to read as follows: 29 2. At the time a preliminary notice is posted 30 to the mechanics’ notice and lien registry, the 31 administrator shall send notification to the owner, 32 including the owner notice described in section 572.13, 33 subsection 1 , and shall docket post the mailing of 34 the notice on the mechanics’ notice and lien registry 35 as prescribed by the administrator pursuant to rule. 36 Notices under this section shall not be sent to 37 owner-builders. Upon request, the administrator shall 38 provide an affidavit of mailing proof of service at no 39 cost for the notice required under this section . 40 Sec. 8. Section 572.15, Code 2013, is amended to 41 read as follows: 42 572.15 Discharge of mechanic’s lien —— bond. 43 A mechanic’s lien may be discharged at any time by 44 submitting a bond to the administrator in twice the 45 amount of the sum for which the claim for the lien is 46 filed posted , with surety or sureties, to be approved 47 by the administrator, conditioned for the payment of 48 any sum for which the claimant may obtain judgment upon 49 the claim. 50 -2- SF360.1647 (1) 85 (amending this SF 360 to CONFORM to HF 565) rh/nh 2/ 6

Sec. 9. Section 572.19, Code 2013, is amended to 1 read as follows: 2 572.19 Priority over garnishments of the owner. 3 Mechanics’ liens shall take priority of over all 4 garnishments of the owner for the contract debts, 5 whether made prior or subsequent to the commencement of 6 the furnishing of the material or performance of the 7 labor, without regard to the date of filing posting the 8 claim for such lien. 9 Sec. 10. Section 572.22, unnumbered paragraph 1, 10 Code 2013, is amended to read as follows: 11 The administrator shall endorse upon every claim for 12 a mechanic’s lien posted to the mechanics’ notice and 13 lien registry internet website the date and hour of 14 posting. Each claim posted to the mechanics’ notice 15 and lien registry internet website shall be properly 16 indexed and shall contain the following items: 17 Sec. 11. Section 572.22, subsection 5, Code 2013, 18 is amended to read as follows: 19 5. The legal description of that adequately 20 describes the property to be charged with the lien . 21 Sec. 12. Section 572.23, subsection 2, Code 2013, 22 is amended to read as follows: 23 2. If satisfaction is not acknowledged within 24 thirty days after service of the demand in writing, 25 the party serving the demand or causing the demand to 26 be served may file for record with the administrator 27 a copy of the demand with proofs of service attached 28 and endorsed and, in case of service by publication, 29 a personal affidavit that personal service could 30 not be made within this state. Upon completion 31 of the requirements of this subsection , the record 32 posting shall be constructive notice to all parties 33 of the due forfeiture and cancellation of the lien. 34 Upon the filing posting of the demand with the 35 required attachments, the administrator shall mail a 36 date-stamped copy of the demand to both parties. 37 Sec. 13. Section 572.28, subsection 1, Code 2013, 38 is amended to read as follows: 39 1. Upon the written demand of the owner served 40 on the lienholder claimant requiring the lienholder 41 claimant to commence action to enforce the lien, 42 such action shall be commenced within thirty days 43 thereafter, or the lien and all benefits derived 44 therefrom shall be forfeited. 45 Sec. 14. Section 572.30, subsection 2, Code 2013, 46 is amended to read as follows: 47 2. Within fifteen days after receiving notice of 48 nonpayment the general contractor or owner-builder 49 gives a bond or makes a deposit with the administrator , 50 -3- SF360.1647 (1) 85 (amending this SF 360 to CONFORM to HF 565) rh/nh 3/ 6

in an amount not less than the amount necessary to 1 satisfy the nonpayment for which notice has been 2 given under this section , and in a form approved by a 3 judge of the district court the administrator , to hold 4 harmless the owner or person having the improvement 5 made from any claim for payment of anyone furnishing 6 labor or material for the improvement, other than the 7 general contractor or owner-builder. 8 Sec. 15. Section 572.31, Code 2013, is amended to 9 read as follows: 10 572.31 Cooperative and condominium housing. 11 A lien arising under this chapter as a result of 12 the construction of an apartment house or apartment 13 building which is owned on a cooperative basis under 14 chapter 499A , or which is submitted to a horizontal 15 property regime under chapter 499B , is not enforceable, 16 notwithstanding any contrary provision of this 17 chapter , as against the interests of an owner in a unit 18 contained in the apartment house or apartment building 19 acquired in good faith and for valuable consideration, 20 unless a lien statement specifically describing the 21 unit is filed posted under section 572.8 within the 22 applicable time period specified in section 572.9 , 23 but determined from the date on which the last of the 24 material was supplied or the last of the labor was 25 performed in the construction of that unit. 26 Sec. 16. Section 572.33A, Code 2013, is amended to 27 read as follows: 28 572.33A Liability of owner to general contractor —— 29 commercial construction. 30 1. An owner of a building, land, or improvement 31 upon which a mechanic’s lien of a subcontractor may 32 be filed posted , is not required to pay the general 33 contractor for compensation for work done or material 34 furnished for the building, land, or improvement until 35 the expiration of ninety days after the completion 36 of the building or improvement unless the general 37 contractor furnishes to the owner one of the following: 38 1. a. Receipts and waivers of claims for 39 mechanics’ liens, signed by all persons who furnished 40 material or performed labor for the building, land, or 41 improvement. 42 2. b. A good and sufficient bond to be approved 43 by the owner, conditioned that the owner shall be held 44 harmless from any loss which the owner may sustain by 45 reason of the filing posting of mechanics’ liens by 46 subcontractors. 47 2. This section applies only to commercial 48 construction properties. 49 Sec. 17. Section 572.34, Code 2013, is amended to 50 -4- SF360.1647 (1) 85 (amending this SF 360 to CONFORM to HF 565) rh/nh 4/ 6

read as follows: 1 572.34 Mechanics’ notice and lien registry —— 2 residential construction . 3 1. A mechanics’ notice and lien registry is created 4 and shall be administered by the administrator. The 5 administrator shall adopt rules pursuant to chapter 17A 6 for the creation and administration of the registry. 7 2. The mechanics’ notice and lien registry shall 8 be accessible to the general public through the 9 administrator’s internet website. 10 3. The registry shall be indexed by owner name, 11 general contractor name, mechanics’ notice and lien 12 registry number, property address, legal description, 13 tax parcel identification number, and any other 14 identifier considered appropriate as determined by the 15 administrator pursuant to rule. 16 4. A general contractor, owner-builder, or 17 subcontractor Any person who posts fictitious, forged, 18 or false information to the mechanics’ notice and lien 19 registry shall be subject to a penalty as determined 20 by the administrator by rule in addition to all other 21 penalties and remedies available under applicable law. 22 5. A person may post a correction statement with 23 respect to a record indexed in on the mechanics’ 24 notice and lien registry internet website if the person 25 believes the record is inaccurate or wrongfully posted. 26 6. The administrator shall charge and collect fees 27 as established by rule necessary for the administration 28 and maintenance of the registry and the registry’s 29 internet website. The administrator shall not charge 30 a filing posting fee for a preliminary notice required 31 pursuant to this chapter that exceeds the cost of 32 sending such notice by certified mail with restricted 33 delivery and return receipt. The administrator shall 34 not charge a filing posting fee for a mechanic’s lien 35 that exceeds forty dollars. 36 7. Notices may be posted to the mechanics’ notice 37 and lien registry electronically on the administrator’s 38 internet website, or may be sent to the administrator 39 for posting by United States mail or facsimile 40 transmission, or other alternate method as provided by 41 the administrator pursuant to rule. Notices received 42 by United States mail or facsimile transmission shall 43 be posted by the administrator to the mechanics’ 44 notice and lien registry within three business days of 45 receipt. 46 8. Mechanics’ liens may be posted to the mechanics’ 47 notice and lien registry electronically on the 48 administrator’s internet website or may be sent to 49 the administrator for posting by United States mail. 50 -5- SF360.1647 (1) 85 (amending this SF 360 to CONFORM to HF 565) rh/nh 5/ 6

Liens received by United States mail shall be posted 1 by the administrator to the mechanics’ notice and lien 2 registry within three business days of receipt. 3 9. The administrator shall send a receipt 4 acknowledging a notice or lien submitted by United 5 States mail or facsimile transmission, as provided by 6 the administrator by rule. 7 10. Information collected by and furnished to 8 the administrator in conjunction with the submission 9 and posting of notices pursuant to sections 572.13A 10 and 572.13B shall be used by the administrator solely 11 for the purposes of the mechanics’ notice and lien 12 registry. 13 11. Registration under chapter 91C shall not be 14 required in order to post a notice or a lien under this 15 chapter . 16 12. A preliminary notice that remains posted 17 on the mechanics’ notice and lien registry internet 18 website two years after the date of posting shall be 19 declared inactive by the administrator, unless renewed. 20 A notice of commencement of work, if there are no 21 related active postings, shall be declared inactive two 22 years from the date of posting, unless renewed. The 23 administrator shall establish a process for the removal 24 of inactive notices and for the renewal of notices 25 pursuant to rule. 26 12. 13. The administrator shall make, or cause to 27 be made, preservation duplicates of mechanics’ notice 28 and lien registry records, including records stored in 29 a computer database. Any preservation duplicate record 30 shall be accurate, complete, and clear, and shall be 31 made, preserved, and made accessible to the public by 32 means designated by the administrator by rule. > 33 ______________________________ ROBERT M. HOGG -6- SF360.1647 (1) 85 (amending this SF 360 to CONFORM to HF 565) rh/nh 6/ 6