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

S.F. _____ period of more than one year from the date the structure, 1 property, development, or improvement is substantially 2 completed or abandoned. 3 8. “Residential construction” means construction on 4 single-family or two-family dwellings occupied or used, 5 or intended to be occupied or used, solely for residential 6 purposes, and includes real property pursuant to chapter 499B. 7 9. “State construction registry” means a centralized 8 computer database maintained and posted on the internet by 9 the authority that provides a central repository for the 10 submission and management of preliminary notices and notices 11 of commencement of work on all residential construction 12 properties. 13 10. “State construction registry number” means a number 14 provided by the authority for all construction properties 15 posted to the state construction registry. 16 6. 11. “Subcontractor” shall include includes every person 17 furnishing material or performing labor upon any building, 18 erection, or other improvement, except those having contracts 19 directly with the owner. “Subcontractor” shall include those 20 persons having contracts directly with an owner-builder. 21 Sec. 2. Section 572.2, Code 2009, is amended to read as 22 follows: 23 572.2 Persons entitled to lien. 24 1. Every person who shall furnish furnishes any material or 25 labor for, or perform performs any labor upon, any building or 26 land for improvement, alteration, or repair thereof, including 27 those engaged in the construction or repair of any work of 28 internal or external improvement, and those engaged in grading, 29 sodding, installing nursery stock, landscaping, sidewalk 30 building, fencing on any land or lot, by virtue of any contract 31 with the owner, general contractor, or subcontractor shall have 32 a lien upon such building or improvement, and land belonging 33 to the owner on which the same is situated or upon the land 34 or lot so graded, landscaped, fenced, or otherwise improved, 35 -2- LSB 5016SC (7) 83 rh/nh 2/ 17

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

S.F. _____ after the date on which the last of the material was furnished 1 or the last of the labor was performed by filing a claim with 2 the clerk of the district court and giving written notice 3 thereof to the owner. Such notice may be served by any person 4 in the manner original notices are required to be served. 5 If the party to be served is out of the county wherein the 6 property is situated, a return of that fact by the person 7 charged with making such service shall constitute sufficient 8 service from and after the time it was filed with the clerk of 9 the district court. 10 Sec. 6. Section 572.11, Code 2009, is amended to read as 11 follows: 12 572.11 Extent of lien filed after ninety days. 13 Liens perfected under section 572.10 shall be enforced 14 against the property or upon the bond, if given, by the owner 15 or owner-builder , only to the extent of the balance due from 16 the owner to the general contractor or owner-builder at the 17 time of the service of such notice; but if the bond was given by 18 the general contractor or owner-builder , or person contracting 19 with the subcontractor filing the claim for a lien, such bond 20 shall be enforced to the full extent of the amount found due 21 the subcontractor. 22 Sec. 7. Section 572.13, Code 2009, is amended by striking 23 the section and inserting in lieu thereof the following: 24 572.13 General contractor —— owner notice —— residential 25 construction. 26 1. A general contractor who has contracted or will contract 27 with a subcontractor to provide labor or furnish material for 28 the property shall provide the owner with the following owner 29 notice: 30 "Persons or companies furnishing labor or materials for 31 the improvement of real property may enforce a lien upon the 32 improved property if they are not paid for their contributions, 33 even if the parties have no direct contractual relationship 34 with the owner. The state construction registry provides 35 -4- LSB 5016SC (7) 83 rh/nh 4/ 17

S.F. _____ a listing of all persons or companies furnishing labor or 1 materials who may file a lien upon the improved property. 2 If the person or company has posted its notice to the state 3 construction registry, you may be required to pay the person or 4 company even if you have paid the general contractor the full 5 amount due. Therefore, check the state construction registry 6 internet website for information about the property including 7 persons or companies furnishing labor or materials before 8 paying your general contractor. In addition, when making 9 payment to your general contractor, it is important to obtain 10 lien waivers from your general contractor and from persons or 11 companies furnishing labor or materials to your property. The 12 information in the state construction registry is posted on the 13 internet website of the Iowa finance authority." 14 2. A general contractor who fails to provide notice pursuant 15 to this section is not entitled to a lien and remedy provided 16 by this chapter. 17 3. This section applies only to residential construction 18 properties. 19 Sec. 8. NEW SECTION . 572.13A Notice of commencement of work 20 —— general contractor —— owner-builder. 21 1. A general contractor or owner-builder shall submit 22 a notice of commencement of work to the authority or post 23 a notice of commencement of work to the state construction 24 registry internet website within ten days of commencement of 25 work on the property. A notice of commencement of work is 26 effective only as to any labor, service, equipment, or material 27 furnished to the property subsequent to the posting of the 28 notice of commencement of work. A notice of commencement of 29 work shall include all of the following information: 30 a. The name and address of the property owner. 31 b. The name and address of the general contractor or 32 owner-builder. 33 c. The address of the property if the property can be 34 reasonably identified by an address or the name and a general 35 -5- LSB 5016SC (7) 83 rh/nh 5/ 17

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

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

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

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

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

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

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

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

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

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

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