House File 284 - Introduced HOUSE FILE BY QUIRK Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to claims for material or labor on certain public 2 and private property. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1731HH 82 5 rh/es/88 PAG LIN 1 1 Section 1. Section 572.32, subsection 1, Code 2007, is 1 2 amended to read as follows: 1 3 1. In a court action or other binding dispute resolution 1 4 to enforce a mechanic's lien,if the plaintiff furnished labor 1 5 or materials directly to the defendant,a prevailing plaintiff 1 6 who is the principal contractor may be awarded reasonable 1 7 attorney fees. 1 8 Sec. 2. Section 573.15, Code 2007, is amended by striking 1 9 the section and inserting in lieu thereof the following: 1 10 573.15 REQUIREMENT OF NOTIFICATION. 1 11 1. Notwithstanding other provisions of this chapter, and 1 12 in addition to all other requirements of this chapter, a 1 13 person furnishing labor or materials to a subcontractor shall 1 14 not be entitled to a claim under this chapter unless the 1 15 person furnishing labor or materials does all of the 1 16 following: 1 17 a. Notifies the principal contractor in writing with a 1 18 one=time notice containing the name, mailing address, and 1 19 telephone number of the person furnishing the labor or 1 20 materials, and the name of the subcontractor to whom the labor 1 21 or materials were furnished, within thirty days of first 1 22 furnishing labor or materials for which a claim may be made. 1 23 Additional labor or materials furnished by the same person to 1 24 the same subcontractor for use in the same construction 1 25 project shall be covered by this notice. 1 26 b. Supports the claim with a certified statement that the 1 27 principal contractor was notified in writing with a one=time 1 28 notice containing the name, mailing address, and telephone 1 29 number of the person furnishing the labor or materials, and 1 30 the name of the subcontractor to whom the labor or materials 1 31 were furnished, within thirty days after the labor or 1 32 materials were first furnished, pursuant to paragraph "a". 1 33 2. Notwithstanding other provisions of this chapter, a 1 34 principal contractor shall not be prohibited from requesting 1 35 information from a subcontractor or a person furnishing labor 2 1 or materials to a subcontractor regarding payments made or 2 2 payments to be made to a person furnishing labor or materials 2 3 to a subcontractor. 2 4 3. No part of any unpaid funds due a contractor shall be 2 5 retained as provided in this chapter because of the 2 6 commencement of any action by the contractor against the state 2 7 department of transportation under authority granted in 2 8 section 613.11. 2 9 EXPLANATION 2 10 This bill relates to claims for labor or materials on 2 11 certain public and private property. 2 12 The bill provides that in a court action or other finding 2 13 dispute resolution to enforce a mechanic's lien, the 2 14 prevailing plaintiff may be awarded reasonable attorney fees. 2 15 The bill strikes requirements relating to the retention of 2 16 unpaid funds due to a contractor on claims for material 2 17 furnished in a public improvement project and instead requires 2 18 that a person furnishing labor or materials to a subcontractor 2 19 on a public improvement project shall not be entitled to a 2 20 claim for labor or materials unless the person furnishing the 2 21 labor or materials first provides written notice to the 2 22 principal contractor and supports the claim with a certified 2 23 statement that the principal contractor was so notified. The 2 24 bill provides that a principal contractor shall not be 2 25 prohibited from requesting information from a subcontractor or 2 26 a person furnishing labor or materials to a subcontractor 2 27 regarding payments made or payments to be made to a person 2 28 furnishing labor or materials to a subcontractor. Such 2 29 requirements are similar to the notification requirements 2 30 relating to the filing of a mechanic's lien under Code chapter 2 31 572. 2 32 The bill retains current law that provides that no part of 2 33 any unpaid funds due to a contractor in a public improvement 2 34 project shall be retained because of the commencement of any 2 35 action by the contractor against the state department of 3 1 transportation pursuant to Code section 613.11. 3 2 LSB 1731HH 82 3 3 rh:nh/es/88