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