H.F. _____ Sec. 22. EFFECTIVE DATE. This Act takes effect July 1, 1 2011. 2 Section 1. Section 572.1, Code 2009, is amended to read as 3 follows: 4 572.1 Definitions and rules of construction. 5 For the purpose of this chapter: 6 1. “Authority” means the Iowa finance authority established 7 in section 16.2. 8 1. 2. “Building” shall be construed as if followed by the 9 words “erection, or other improvement upon land”. 10 3. “General contractor” includes every person who does work 11 or furnishes materials by contract, express or implied, with an 12 owner. “General contractor” does not include a person who does 13 work or furnishes materials on contract with an owner-builder. 14 2. 4. “Labor” means labor completed by the claimant. 15 3. 5. “Material” shall , in addition to its ordinary meaning, 16 include includes machinery, tools, fixtures, trees, evergreens, 17 vines, plants, shrubs, tubers, bulbs, hedges, bushes, sod, 18 soil, dirt, mulch, peat, fertilizer, fence wire, fence 19 material, fence posts, tile, and the use of forms, accessories, 20 and equipment furnished by the claimant. 21 4. 6. “Owner” means the record legal or 22 equitable titleholder and every person for whose use or benefit 23 any building, erection, or other improvement is made, having 24 the capacity to contract, including guardians of record . 25 5. “Owner-occupied dwelling” means the homestead of an 26 owner, as defined in section 561.1 , and without respect to the 27 value limitations in section 561.3 , and actually occupied by 28 the owner or the spouse of the owner, or both. “Owner-occupied 29 dwelling” includes a newly constructed dwelling to be occupied 30 by the owner as a homestead, or a dwelling that is under 31 construction and being built by or for an owner who will occupy 32 the dwelling as a homestead. 33 7. “Owner-builder” means the legal or equitable titleholder 34 of record who offers or intends to offer to sell the 35 -1- LSB 5016HC (5) 83 rh/nh 1/ 17

H.F. _____ owner-builder’s property without occupying or using the 1 structures, properties, developments, or improvements for a 2 period of more than one year from the date the structure, 3 property, development, or improvement is substantially 4 completed or abandoned. 5 8. “Residential construction” means construction on 6 single-family or two-family dwellings occupied or used, 7 or intended to be occupied or used, solely for residential 8 purposes, and includes real property pursuant to chapter 499B. 9 9. “State construction registry” means a centralized 10 computer database maintained and posted on the internet by 11 the authority that provides a central repository for the 12 submission and management of preliminary notices and notices 13 of commencement of work on all residential construction 14 properties. 15 10. “State construction registry number” means a number 16 provided by the authority for all construction properties 17 posted to the state construction registry. 18 6. 11. “Subcontractor” shall include includes every person 19 furnishing material or performing labor upon any building, 20 erection, or other improvement, except those having contracts 21 directly with the owner. “Subcontractor” shall include those 22 persons having contracts directly with an owner-builder. 23 Sec. 2. Section 572.2, Code 2009, is amended to read as 24 follows: 25 572.2 Persons entitled to lien. 26 1. Every person who shall furnish furnishes any material or 27 labor for, or perform performs any labor upon, any building or 28 land for improvement, alteration, or repair thereof, including 29 those engaged in the construction or repair of any work of 30 internal or external improvement, and those engaged in grading, 31 sodding, installing nursery stock, landscaping, sidewalk 32 building, fencing on any land or lot, by virtue of any contract 33 with the owner, general contractor, or subcontractor shall have 34 a lien upon such building or improvement, and land belonging 35 -2- LSB 5016HC (5) 83 rh/nh 2/ 17

H.F. _____ to the owner on which the same is situated or upon the land 1 or lot so graded, landscaped, fenced, or otherwise improved, 2 altered, or repaired, to secure payment for the material or 3 labor furnished or labor performed. 4 2. If material is rented by a person to the owner, 5 general contractor, or subcontractor, the person shall have a 6 lien upon such building, improvement, or land to secure payment 7 for the material rental. The lien is for the reasonable rental 8 value during the period of actual use of the material and any 9 reasonable periods of nonuse of the material taken into account 10 in the rental agreement. The delivery of material to such 11 building, improvement, or land, whether or not delivery is made 12 by the person, creates a presumption that the material was 13 used in the course of alteration, construction, or repair of 14 the building, improvement, or land. However, this presumption 15 shall not pertain to recoveries sought under a surety bond. 16 3. An owner-builder is not entitled to a lien under 17 this chapter as to work the owner-builder performs, or is 18 contractually obligated to perform, prior to transferring title 19 to the buyer. 20 Sec. 3. Section 572.8, subsection 1, Code 2009, is amended 21 by adding the following new paragraph: 22 NEW PARAGRAPH . d. The address of the property or a 23 description of the location of the property. 24 Sec. 4. Section 572.9, Code 2009, is amended to read as 25 follows: 26 572.9 Time of filing. 27 The statement of account required by section 572.8 shall 28 be filed by a principal general contractor or subcontractor 29 within two years and ninety days after the date on which the 30 last of the material was furnished or the last of the labor was 31 performed. 32 Sec. 5. Section 572.10, Code 2009, is amended to read as 33 follows: 34 572.10 Perfecting lien after lapse of ninety days. 35 -3- LSB 5016HC (5) 83 rh/nh 3/ 17

H.F. _____ A general contractor or a subcontractor may perfect a 1 mechanic’s lien pursuant to section 572.8 beyond ninety days 2 after the date on which the last of the material was furnished 3 or the last of the labor was performed by filing a claim with 4 the clerk of the district court and giving written notice 5 thereof to the owner. Such notice may be served by any person 6 in the manner original notices are required to be served. 7 If the party to be served is out of the county wherein the 8 property is situated, a return of that fact by the person 9 charged with making such service shall constitute sufficient 10 service from and after the time it was filed with the clerk of 11 the district court. 12 Sec. 6. Section 572.11, Code 2009, is amended to read as 13 follows: 14 572.11 Extent of lien filed after ninety days. 15 Liens perfected under section 572.10 shall be enforced 16 against the property or upon the bond, if given, by the owner 17 or owner-builder , only to the extent of the balance due from 18 the owner to the general contractor or owner-builder at the 19 time of the service of such notice; but if the bond was given by 20 the general contractor or owner-builder , or person contracting 21 with the subcontractor filing the claim for a lien, such bond 22 shall be enforced to the full extent of the amount found due 23 the subcontractor. 24 Sec. 7. Section 572.13, Code 2009, is amended by striking 25 the section and inserting in lieu thereof the following: 26 572.13 General contractor —— owner notice —— residential 27 construction. 28 1. A general contractor who has contracted or will contract 29 with a subcontractor to provide labor or furnish material for 30 the property shall provide the owner with the following owner 31 notice: 32 "Persons or companies furnishing labor or materials for 33 the improvement of real property may enforce a lien upon the 34 improved property if they are not paid for their contributions, 35 -4- LSB 5016HC (5) 83 rh/nh 4/ 17

H.F. _____ even if the parties have no direct contractual relationship 1 with the owner. The state construction registry provides 2 a listing of all persons or companies furnishing labor or 3 materials who may file a lien upon the improved property. 4 If the person or company has posted its notice to the state 5 construction registry, you may be required to pay the person or 6 company even if you have paid the general contractor the full 7 amount due. Therefore, check the state construction registry 8 internet website for information about the property including 9 persons or companies furnishing labor or materials before 10 paying your general contractor. In addition, when making 11 payment to your general contractor, it is important to obtain 12 lien waivers from your general contractor and from persons or 13 companies furnishing labor or materials to your property. The 14 information in the state construction registry is posted on the 15 internet website of the Iowa finance authority." 16 2. A general contractor who fails to provide notice pursuant 17 to this section is not entitled to a lien and remedy provided 18 by this chapter. 19 3. This section applies only to residential construction 20 properties. 21 Sec. 8. NEW SECTION . 572.13A Notice of commencement of work 22 —— general contractor —— owner-builder. 23 1. A general contractor or owner-builder shall submit 24 a notice of commencement of work to the authority or post 25 a notice of commencement of work to the state construction 26 registry internet website within ten days of commencement of 27 work on the property. A notice of commencement of work is 28 effective only as to any labor, service, equipment, or material 29 furnished to the property subsequent to the posting of the 30 notice of commencement of work. A notice of commencement of 31 work shall include all of the following information: 32 a. The name and address of the property owner. 33 b. The name and address of the general contractor or 34 owner-builder. 35 -5- LSB 5016HC (5) 83 rh/nh 5/ 17

H.F. _____ c. The address of the property if the property can be 1 reasonably identified by an address or the name and a general 2 description of the location of the property if the property 3 cannot be reasonably identified by an address. 4 d. A legal description of the property. 5 e. The date work commenced. 6 f. Any other information prescribed by the authority 7 pursuant to rule. 8 2. If a general contractor or owner-builder fails to submit 9 a notice of commencement of work to the authority or fails to 10 post the required notice of commencement of work to the state 11 construction registry internet website pursuant to subsection 12 1, within ten days of commencement of the work on the property, 13 a subcontractor may submit or post the notice in conjunction 14 with the filing of the required preliminary notice pursuant to 15 section 572.13B. 16 3. At the time a notice of commencement of work is posted on 17 the state construction registry internet website, the authority 18 shall send a copy of the owner notice described in section 19 572.13 along with other relevant information to the owner as 20 prescribed by the authority pursuant to rule. 21 4. A general contractor who fails to provide notice pursuant 22 to this section is not entitled to a lien and remedy provided 23 by this chapter. 24 5. This section applies only to residential construction 25 properties. 26 Sec. 9. NEW SECTION . 572.13B Preliminary notice —— 27 subcontractor —— residential construction. 28 1. A subcontractor shall submit a preliminary notice 29 to the authority or post a preliminary notice to the state 30 construction registry internet website. A preliminary notice 31 posted prior to the balance paid to the general contractor 32 or owner-builder by the owner is effective as to all labor, 33 service, equipment, and material furnished to the property by 34 the subcontractor. The preliminary notice shall contain all 35 -6- LSB 5016HC (5) 83 rh/nh 6/ 17

H.F. _____ of the following information: 1 a. The name of the owner. 2 b. The state construction registry number. 3 c. The name, address, and telephone number of the 4 subcontractor furnishing the labor, service, equipment, or 5 material. 6 d. The name and address of the person who contracted 7 with the claimant for the furnishing of the labor, service, 8 equipment, or material. 9 e. The name of the general contractor or owner-builder under 10 which the claimant is performing or will perform the work. 11 f. The address of the property or a description of the 12 location of the property. 13 g. Any other information required by the authority pursuant 14 to rule. 15 2. A mechanic’s lien perfected under this chapter 16 is enforceable only to the extent of the balance due the 17 general contractor or owner-builder prior to the posting of a 18 preliminary notice specified in subsection 1. 19 3. At the time a preliminary notice is posted to the state 20 construction registry, the authority shall send notification 21 to the owner as prescribed by the authority pursuant to rule. 22 Notices under this section will not be sent to owner-builders. 23 4. A subcontractor who fails to submit or post a preliminary 24 notice pursuant to this section shall not be entitled to a lien 25 and remedy provided under this chapter. 26 5. This section applies only to residential construction 27 properties. 28 Sec. 10. Section 572.14, Code 2009, is amended by striking 29 the section and inserting in lieu thereof the following: 30 572.14 Liability to subcontractor after payment to general 31 contractor or owner-builder. 32 Except as provided in section 572.13B, payment to the 33 general contractor or owner-builder by the owner of any part or 34 all of the contract price of the building or improvement within 35 -7- LSB 5016HC (5) 83 rh/nh 7/ 17

H.F. _____ ninety days after the date on which the last of the materials 1 was furnished or the last of the labor was performed by a 2 subcontractor, does not relieve the owner from liability to the 3 subcontractor for the full value of any material furnished or 4 labor performed upon the building, land, or improvement if the 5 subcontractor files a lien within ninety days after the date 6 on which the last of the materials was furnished or the last of 7 the labor was performed. 8 Sec. 11. Section 572.15, Code 2009, is amended to read as 9 follows: 10 572.15 Discharge of subcontractor’s mechanic’s lien — bond. 11 A mechanic’s lien may be discharged at any time by the owner, 12 principal contractor, or intermediate subcontractor filing with 13 the clerk of the district court of the county in which the 14 property is located a bond in twice the amount of the sum for 15 which the claim for the lien is filed, with surety or sureties, 16 to be approved by the clerk, conditioned for the payment of any 17 sum for which the claimant may obtain judgment upon the claim. 18 Sec. 12. Section 572.17, Code 2009, is amended to read as 19 follows: 20 572.17 Priority of mechanics’ liens between mechanics. 21 Mechanics’ liens shall have priority over each other in 22 the order of the filing of the statements or of accounts as 23 herein provided in section 572.8 . 24 Sec. 13. Section 572.18, subsections 1 and 3, Code 2009, are 25 amended to read as follows: 26 1. Mechanics’ liens filed by a principal general contractor 27 or subcontractor within ninety days after the date on which 28 the last of the material was furnished or the last of the 29 claimant’s labor was performed and for which notices were 30 required to be submitted or posted to the state construction 31 registry internet website pursuant to sections 572.13A and 32 572.13B shall be superior to all other liens which may attach 33 to or upon a building or improvement and to the land upon which 34 it is situated, except liens of record prior to the time of the 35 -8- LSB 5016HC (5) 83 rh/nh 8/ 17

H.F. _____ original commencement of the claimant’s work or the claimant’s 1 improvements, except as provided in subsection 2. 2 3. The rights of purchasers, encumbrancers, and other 3 persons who acquire interests in good faith, for a valuable 4 consideration, and without notice of a lien perfected 5 pursuant to this chapter, are superior to the claims of all 6 general contractors or subcontractors who have perfected their 7 liens more than ninety days after the date on which the last 8 of the claimant’s material was furnished or the last of the 9 claimant’s labor was performed. 10 Sec. 14. Section 572.22, unnumbered paragraph 1, Code 2009, 11 is amended to read as follows: 12 The clerk of the court shall endorse upon every claim for 13 a mechanic’s lien filed in the clerk’s office the date and 14 hour of filing and make an abstract thereof in the mechanic’s 15 lien book kept for that purpose. Said book shall be properly 16 indexed and index every claim in the office of the clerk of the 17 county where such real estate is situated. Each claim shall 18 contain the following items concerning each claim : 19 Sec. 15. Section 572.23, subsection 1, Code 2009, is amended 20 to read as follows: 21 1. When a mechanic’s lien is satisfied by payment of the 22 claim, the claimant shall acknowledge satisfaction thereof upon 23 the mechanic’s lien book, or otherwise in writing, and, if the 24 claimant neglects to do so for thirty days after demand in 25 writing is personally served upon the claimant, the claimant 26 shall forfeit and pay twenty-five dollars to the owner or 27 general contractor or owner-builder , and be liable to any 28 person injured to the extent of the injury. 29 Sec. 16. Section 572.30, Code 2009, is amended to read as 30 follows: 31 572.30 Action by subcontractor or owner against 32 general contractor or owner-builder . 33 Unless otherwise agreed, a principal general contractor or 34 owner-builder who engages a subcontractor to supply labor or 35 -9- LSB 5016HC (5) 83 rh/nh 9/ 17

H.F. _____ materials or both for improvements, alterations or repairs 1 to a specific owner-occupied dwelling property shall 2 pay the subcontractor in full for all labor and 3 materials supplied within thirty days after the date 4 the principal general contractor or owner-builder receives full 5 payment from the owner. If a principal general contractor or 6 owner-builder fails without due cause to pay a subcontractor 7 as required by this section, the subcontractor, or the 8 owner by subrogation, may commence an action against the 9 general contractor or owner-builder to recover the amount 10 due. Prior to commencing an action to recover the amount 11 due, a subcontractor, or the owner by subrogation, shall give 12 notice of nonpayment of the cost of labor or materials to 13 the principal general contractor or owner-builder paid for 14 the improvement. Notice of nonpayment must be in writing, 15 delivered in a reasonable manner, and in terms that reasonably 16 identify the real estate improved and the nonpayment complained 17 of. In an action to recover the amount due a subcontractor, 18 or the owner by subrogation, under this section, the court 19 in addition to actual damages, shall award a successful 20 plaintiff exemplary damages against the general contractor 21 or owner-builder in an amount not less than one percent 22 and not exceeding fifteen percent of the amount due the 23 subcontractor, or the owner by subrogation, for the labor and 24 materials supplied, unless the principal general contractor or 25 owner-builder does one or both of the following, in which case 26 no exemplary damages shall be awarded: 27 1. Establishes that all proceeds received from the person 28 making the payment have been applied to the cost of labor or 29 material furnished for the improvement. 30 2. Within fifteen days after receiving notice of nonpayment 31 the principal general contractor or owner-builder gives 32 a bond or makes a deposit with the clerk of the district 33 court, in an amount not less than the amount necessary 34 to satisfy the nonpayment for which notice has been given 35 -10- LSB 5016HC (5) 83 rh/nh 10/ 17

H.F. _____ under this section, and in a form approved by a judge of the 1 district court, to hold harmless the owner or person having 2 the improvement made from any claim for payment of anyone 3 furnishing labor or material for the improvement, other than 4 the principal general contractor or owner-builder . 5 Sec. 17. Section 572.31, Code 2009, is amended to read as 6 follows: 7 572.31 Co-operative Cooperative and condominium housing. 8 A lien arising under this chapter as a result of the 9 construction of an apartment house or apartment building which 10 is owned on a co-operative cooperative basis under chapter 11 499A, or which is submitted to a horizontal property regime 12 under chapter 499B, is not enforceable, notwithstanding any 13 contrary provision of this chapter, as against the interests 14 of an owner in an owner-occupied dwelling a unit contained in 15 the apartment house or apartment building acquired in good 16 faith and for valuable consideration, unless a lien statement 17 specifically describing the dwelling unit is filed under 18 section 572.8 within the applicable time period specified in 19 section 572.9, but determined from the date on which the last 20 of the material was supplied or the last of the labor was 21 performed in the construction of that dwelling unit. 22 Sec. 18. Section 572.32, Code 2009, is amended to read as 23 follows: 24 572.32 Attorney fees — remedies. 25 1. In a court action to enforce a mechanic’s lien, if 26 the plaintiff furnished labor or materials directly to the 27 defendant, a prevailing plaintiff may be awarded reasonable 28 attorney fees. 29 2. In a court action to challenge a filed mechanic’s lien 30 filed on an owner-occupied dwelling , if the person challenging 31 the lien prevails, the court may award reasonable attorney 32 fees and actual damages. If the court determines that the 33 mechanic’s lien was filed in bad faith or the supporting 34 affidavit was materially false, the court shall award the owner 35 -11- LSB 5016HC (5) 83 rh/nh 11/ 17

H.F. _____ reasonable attorney fees plus an amount not less than five 1 hundred dollars or the amount of the lien, whichever is less. 2 Sec. 19. Section 572.33, Code 2009, is amended to read as 3 follows: 4 572.33 Requirement of notification for commercial 5 construction . 6 1. The notification requirements in this section apply only 7 to commercial construction. 8 1. 2. A person furnishing labor or materials to a 9 subcontractor shall not be entitled to a lien under this 10 chapter unless the person furnishing labor or materials does 11 all of the following: 12 a. Notifies the principal general contractor or 13 owner-builder in writing with a one-time notice containing 14 the name, mailing address, and telephone number of the 15 person furnishing the labor or materials, and the name of the 16 subcontractor to whom the labor or materials were furnished, 17 within thirty days of first furnishing labor or materials for 18 which a lien claim may be made. Additional labor or materials 19 furnished by the same person to the same subcontractor for 20 use in the same construction project shall be covered by this 21 notice. 22 b. Supports the lien claim with a certified statement that 23 the principal general contractor or owner-builder was notified 24 in writing with a one-time notice containing the name, mailing 25 address, and telephone number of the person furnishing the 26 labor or materials, and the name of the subcontractor to whom 27 the labor or materials were furnished, within thirty days 28 after the labor or materials were first furnished, pursuant to 29 paragraph “a” . 30 2. This section shall not apply to a mechanic’s lien on 31 single-family or two-family dwellings occupied or used or 32 intended to be occupied or used for residential purposes. 33 3. Notwithstanding other provisions of this chapter, a 34 principal general contractor or owner-builder shall not be 35 -12- LSB 5016HC (5) 83 rh/nh 12/ 17

H.F. _____ prohibited from requesting information from a subcontractor 1 or a person furnishing labor or materials to a subcontractor 2 regarding payments made or payments to be made to a person 3 furnishing labor or materials to a subcontractor. 4 Sec. 20. NEW SECTION . 572.34 State construction registry 5 —— residential construction. 6 1. A state construction registry is created within the 7 authority. The authority shall adopt rules pursuant to chapter 8 17A for the creation and administration of the registry. 9 2. The state construction registry shall be accessible to 10 the general public through the authority’s internet website. 11 3. The registry shall be indexed by owner name, general 12 contractor name, state construction registry number, property 13 address, legal description, and any other identifier considered 14 appropriate as determined by the authority. 15 4. A general contractor, owner-builder, or subcontractor 16 who posts fictitious, forged, or false information to the 17 state construction registry shall be subject to a penalty as 18 determined by the authority by rule. 19 5. A person may post a correction statement with respect to 20 a record indexed in the state construction registry internet 21 website if the person believes the record is inaccurate or 22 wrongfully posted. 23 6. The authority shall charge and collect fees as 24 established by rule necessary for the administration and 25 maintenance of the registry and the registry’s internet 26 website. 27 7. A state construction registry fund is created within 28 the authority. Moneys collected by the authority pursuant to 29 subsection 6 shall be for the maintenance and administration of 30 the state construction registry. Section 8.33 does not apply 31 to any moneys in the fund, and notwithstanding section 12C.7, 32 subsection 2, earnings or interest on moneys deposited in the 33 fund shall be credited to the fund. 34 8. Notices may be posted to the state construction registry 35 -13- LSB 5016HC (5) 83 rh/nh 13/ 17

H.F. _____ electronically on the authority’s internet website, or may 1 be sent to the authority by United States mail, facsimile 2 transmission, or other alternate method as provided by the 3 authority pursuant to rule. 4 9. Information collected by and furnished to the authority 5 in conjunction with the submission and posting of notices 6 pursuant to sections 572.13A and 572.13B shall be used by the 7 authority solely for the purposes of the state construction 8 registry. 9 10. This section applies only to residential construction 10 properties. 11 Sec. 21. Section 572.16, Code 2009, is repealed. 12 Sec. 22. EFFECTIVE DATE. This Act takes effect July 1, 13 2011. 14 EXPLANATION 15 This bill relates to mechanics’ liens including the 16 establishment of a state construction registry for residential 17 construction property and provides an effective date. 18 The bill changes all references to “principal contractor” 19 and “contractor” to “general contractor”, defined in the 20 bill to mean a person who does work or furnishes materials 21 by contract, express or implied, with an owner. "General 22 contractor" does not include a person who does work or 23 furnishes materials on contract with an owner-builder. 24 The bill defines “owner-builder” as the record titleholder 25 who offers or intends to offer to sell the owner-builder’s 26 property without occupying or using the structures, properties, 27 developments, or improvements for more than one year from the 28 date the structure, property, development, or improvement 29 is substantially completed or abandoned. The bill extends 30 provisions currently in the Code for general contractors to 31 owner-builders. These provisions relate to perfecting a lien, 32 the acknowledgment of a lien that has been satisfied by payment 33 of a claim, actions by subcontractors or owners to recover 34 amounts due, and certain notification requirements. The bill 35 -14- LSB 5016HC (5) 83 rh/nh 14/ 17

H.F. _____ also extends provisions for general contractors relating to 1 notification requirements for commercial construction to 2 owner-builders. 3 The bill provides that a person who intends to perfect a 4 mechanic’s lien shall include the address of the property or 5 a description of the location of the property in the person’s 6 verified statement. 7 The bill provides that a general contractor who has 8 contracted or will contract with a subcontractor to provide 9 labor or furnish material for the property shall provide the 10 owner with an owner notice stating that persons or companies 11 furnishing labor or materials for the improvement of real 12 property may enforce a lien upon the improved property if they 13 are not paid, even if the parties have no direct contractual 14 relationship with the owner. The notice shall also provide 15 information relating to the availability of information posted 16 on the state construction registry established by the bill. 17 A general contractor who fails to provide such notice to 18 the owner is not entitled to a mechanic’s lien and remedies 19 pursuant to Code chapter 572. 20 The bill provides that a general contractor or owner-builder 21 shall submit a notice of commencement of work to the Iowa 22 finance authority or post a notice of commencement of 23 work, including certain specific information, to the state 24 construction registry. 25 The bill requires a subcontractor to submit a preliminary 26 notice to the authority or post a preliminary notice, including 27 certain specific information, to the state construction 28 registry. A preliminary notice received by the authority or 29 posted prior to the balance paid to the general contractor 30 or owner-builder by the owner is effective as to all labor, 31 service, equipment, or material furnished to the property 32 subsequent to the posting of the notice of commencement 33 of work. A subcontractor who fails to submit or post a 34 preliminary notice pursuant shall not be entitled to a lien and 35 -15- LSB 5016HC (5) 83 rh/nh 15/ 17

H.F. _____ remedy provided under Code chapter 572. 1 The bill provides that the provisions relating to the 2 requirement that a general contractor and a subcontractor 3 post notices to the state construction registry apply only to 4 residential construction properties. 5 The bill provides that payment to the general contractor or 6 owner-builder by the owner of any part or all of the contract 7 price of the building or improvement within 90 days after the 8 date on which the last of the materials was furnished or the 9 last of the labor was performed by a subcontractor, does not 10 relieve the owner from liability to the subcontractor for the 11 full value of any material furnished or labor performed upon 12 the building, land, or improvement if the subcontractor files 13 a lien within 90 days after the date on which the last of the 14 materials was furnished or the last of the labor was performed. 15 The bill provides for the creation of a state construction 16 registry for residential construction property for the 17 posting of notices by general contractors, owner-builders, and 18 subcontractors which such persons must post in order to protect 19 their lien rights. The state construction registry, once 20 created, shall be a publicly accessible centralized electronic 21 database created and maintained by the Iowa finance authority. 22 The Iowa finance authority shall adopt rules pursuant to Code 23 chapter 17A for the creation and administration of the registry 24 which shall include a specific index and which shall be funded 25 through the collection of fees. The registry provides a 26 centralized resource of all persons or companies furnishing 27 labor or materials who may file a lien upon the improved 28 property. Data collected by and furnished to the authority in 29 conjunction with the submission and posting of notices to the 30 state construction registry internet website shall be used by 31 the authority for the purposes of the registry. 32 The bill eliminates the requirement that the clerk of court 33 make an abstract of a claim for a mechanic’s lien but requires 34 the clerk instead to index every claim in the office of the 35 -16- LSB 5016HC (5) 83 rh/nh 16/ 17

H.F. _____ county where such real estate is located. 1 The bill expands the right to recover attorney fees from any 2 prevailing plaintiff who furnishes materials or labor directly 3 to the defendant to any prevailing defendant. 4 The bill repeals Code section 572.16 relating to rules of 5 construction regarding the owner’s obligation to pay certain 6 amounts in the owner’s contract with the general contractor. 7 The bill takes effect July 1, 2011. 8 -17- LSB 5016HC (5) 83 rh/nh 17/ 17