House File 262 - Introduced HOUSE FILE 262 BY HELLAND A BILL FOR An Act concerning mechanics’ liens including the establishment 1 of a state construction registry for residential 2 construction property and including effective date 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2236YH (3) 84 rh/nh

H.F. 262 Section 1. Section 207.23, subsection 1, Code 2011, is 1 amended to read as follows: 2 1. Within six months after the completion of a project to 3 restore, reclaim, abate, control, or prevent adverse effects 4 of past coal mining practices on privately owned land, the 5 division shall itemize the money expended on the project and 6 may file a lien statement in the manner provided in section 7 572.8 in the office of the district court clerk of each county 8 in which a portion of the property affected by the project is 9 located, together with a notarized appraisal by an independent 10 appraiser of the value of the land before the restoration, 11 reclamation, abatement, control, or prevention of adverse 12 effects of past mining practices if the money so expended 13 results in a significant increase in property value. A copy 14 of the lien statement and the appraisal, if required, shall be 15 served upon affected property owners in the manner provided 16 for service of an original notice. The lien shall not exceed 17 the amount determined by the appraiser to be the increase in 18 the market value of the land as a result of the restoration, 19 reclamation, abatement, control, or prevention of adverse 20 effects of past coal mining practices. A lien shall not be 21 filed in accordance with this subsection against the property 22 of a person who owned the surface prior to May 2, 1977, and who 23 neither consented to, participated in, nor exercised control 24 over the mining operation which necessitated the reclamation 25 performed. 26 Sec. 2. Section 572.1, Code 2011, is amended to read as 27 follows: 28 572.1 Definitions and rules of construction. 29 For the purpose of this chapter : 30 1. “Administrator” means the secretary of state. 31 1. 2. “Building” shall be construed as if followed by the 32 words “erection, or other improvement upon land”. 33 3. “General contractor” includes every person who does work 34 or furnishes materials by contract, express or implied, with an 35 -1- LSB 2236YH (3) 84 rh/nh 1/ 20

H.F. 262 owner. “General contractor” does not include a person who does 1 work or furnishes materials on contract with an owner-builder. 2 2. 4. “Labor” means labor completed by the claimant. 3 3. 5. “Material” shall , in addition to its ordinary 4 meaning, include includes machinery, tools, fixtures, trees, 5 evergreens, vines, plants, shrubs, tubers, bulbs, hedges, 6 bushes, sod, soil, dirt, mulch, peat, fertilizer, fence wire, 7 fence material, fence posts, tile, and the use of forms, 8 accessories, and equipment furnished by the claimant. 9 4. 6. “Owner” means the record legal or equitable 10 titleholder and every person for whose use or benefit any 11 building, erection, or other improvement is made, having the 12 capacity to contract, including guardians or record . 13 5. “Owner-occupied dwelling” means the homestead of an 14 owner, as defined in section 561.1 , and without respect to the 15 value limitations in section 561.3 , and actually occupied by 16 the owner or the spouse of the owner, or both. “Owner-occupied 17 dwelling” includes a newly constructed dwelling to be occupied 18 by the owner as a homestead, or a dwelling that is under 19 construction and being built by or for an owner who will occupy 20 the dwelling as a homestead. 21 7. “Owner-builder” means the legal or equitable titleholder 22 of record who furnishes material for or performs labor upon a 23 building, erection, or other improvement, or who contracts with 24 a subcontractor to furnish material for or perform labor upon 25 a building, erection, or other improvement and who offers or 26 intends to offer to sell the owner-builder’s property without 27 occupying or using the structures, properties, developments, 28 or improvements for a period of more than one year from the 29 date the structure, property, development, or improvement is 30 substantially completed or abandoned. 31 8. “Residential construction” means construction on 32 single-family or two-family dwellings occupied or used, or 33 intended to be occupied or used, primarily for residential 34 purposes, and includes real property pursuant to chapter 499B. 35 -2- LSB 2236YH (3) 84 rh/nh 2/ 20

H.F. 262 9. “State construction registry” means a centralized 1 computer database maintained and posted on the internet by 2 the administrator that provides a central repository for the 3 submission and management of preliminary notices, notices of 4 commencement of work, and mechanics’ liens on all residential 5 construction properties. 6 10. “State construction registry number” means a number 7 provided by the administrator for all residential construction 8 properties posted to the state construction registry. 9 6. 11. “Subcontractor” shall include includes every person 10 furnishing material or performing labor upon any building, 11 erection, or other improvement, except those having contracts 12 directly with the owner. “Subcontractor” shall include those 13 persons having contracts directly with an owner-builder. 14 Sec. 3. Section 572.2, Code 2011, is amended to read as 15 follows: 16 572.2 Persons entitled to lien. 17 1. Every person who shall furnish furnishes any material 18 or labor for, or perform performs any labor upon, any building 19 or land for improvement, alteration, or repair thereof, 20 including those engaged in the construction or repair of any 21 work of internal or external improvement, and those engaged 22 in grading, sodding, installing nursery stock, landscaping, 23 sidewalk building, fencing on any land or lot, by virtue of any 24 contract with the owner, owner-builder, general contractor, 25 or subcontractor shall have a lien upon such building or 26 improvement, and land belonging to the owner on which the same 27 is situated or upon the land or lot so graded, landscaped, 28 fenced, or otherwise improved, altered, or repaired, to secure 29 payment for the material or labor furnished or labor performed. 30 2. If material is rented by a person to the owner, general 31 contractor, or subcontractor, the person shall have a lien 32 upon such building, improvement, or land to secure payment for 33 the material rental. The lien is for the reasonable rental 34 value during the period of actual use of the material and any 35 -3- LSB 2236YH (3) 84 rh/nh 3/ 20

H.F. 262 reasonable periods of nonuse of the material taken into account 1 in the rental agreement. The delivery of material to such 2 building, improvement, or land, whether or not delivery is made 3 by the person, creates a presumption that the material was 4 used in the course of alteration, construction, or repair of 5 the building, improvement, or land. However, this presumption 6 shall not pertain to recoveries sought under a surety bond. 7 3. An owner-builder is not entitled to a lien under 8 this chapter as to work the owner-builder performs, or is 9 contractually obligated to perform, prior to transferring title 10 to the buyer. 11 Sec. 4. Section 572.8, Code 2011, is amended to read as 12 follows: 13 572.8 Perfection of lien. 14 1. A person shall perfect a mechanic’s lien by filing with 15 the clerk of the district court of the county in which the 16 building, land, or improvement to be charged with the lien is 17 situated posting to the state construction registry internet 18 website or submitting to the administrator by United States 19 mail or facsimile transmission a verified statement of account 20 of the demand due the person, after allowing all credits, 21 setting forth: 22 a. The date when such material was first furnished or labor 23 first performed, and the date on which the last of the material 24 was furnished or the last of the labor was performed. 25 b. The legal description of the property to be charged with 26 the lien. 27 c. The name and last known mailing address of the owner of 28 the property. 29 d. The address of the property or a description of the 30 location of the property. 31 2. Upon the filing perfection of the lien, the clerk of 32 court administrator shall mail a copy of the lien to the 33 owner. If the statement of the lien consists of more than one 34 page, the clerk administrator may omit such pages as consist 35 -4- LSB 2236YH (3) 84 rh/nh 4/ 20

H.F. 262 solely of an accounting of the material furnished or labor 1 performed. In this case, the clerk administrator shall attach 2 a notification that pages of accounting were omitted and may 3 be inspected in the clerk’s office on the state construction 4 registry internet website . 5 Sec. 5. Section 572.9, Code 2011, is amended to read as 6 follows: 7 572.9 Time of filing perfection . 8 The statement of account required by section 572.8 shall 9 be filed perfected by a principal general contractor or 10 subcontractor within two years and ninety days after the date 11 on which the last of the material was furnished or the last of 12 the labor was performed. 13 Sec. 6. Section 572.10, Code 2011, is amended to read as 14 follows: 15 572.10 Perfecting lien after lapse of ninety days. 16 A general contractor or a subcontractor may perfect a 17 mechanic’s lien pursuant to section 572.8 beyond ninety days 18 after the date on which the last of the material was furnished 19 or the last of the labor was performed by filing a claim with 20 the clerk of the district court and giving written notice 21 thereof to the owner. Such notice may be served by any person 22 in the manner original notices are required to be served. 23 If the party to be served is out of the county wherein the 24 property is situated, a return of that fact by the person 25 charged with making such service shall constitute sufficient 26 service from and after the time it was filed with the clerk of 27 the district court perfected pursuant to section 572.8 . 28 Sec. 7. Section 572.11, Code 2011, is amended to read as 29 follows: 30 572.11 Extent of lien filed perfected after ninety days. 31 Liens perfected under section 572.10 shall be enforced 32 against the property or upon the bond, if given, by the owner 33 or owner-builder , only to the extent of the balance due from 34 the owner to the general contractor or owner-builder at the 35 -5- LSB 2236YH (3) 84 rh/nh 5/ 20

H.F. 262 time of the service of such notice; but if the bond was given by 1 the general contractor or owner-builder , or person contracting 2 with the subcontractor filing the claim for a lien, such bond 3 shall be enforced to the full extent of the amount found due 4 the subcontractor. 5 Sec. 8. Section 572.13, Code 2011, is amended by striking 6 the section and inserting in lieu thereof the following: 7 572.13 General contractor —— owner notice —— residential 8 construction. 9 1. A general contractor who has contracted or will contract 10 with a subcontractor to provide labor or furnish material for 11 the property shall provide the owner with the following owner 12 notice in writing in boldface type of a minimum size of ten 13 points: 14 “Persons or companies furnishing labor or materials for 15 the improvement of real property may enforce a lien upon the 16 improved property if they are not paid for their contributions, 17 even if the parties have no direct contractual relationship 18 with the owner. The state construction registry provides 19 a listing of all persons or companies furnishing labor or 20 materials who have filed a lien or who may file a lien upon the 21 improved property. If the person or company has posted its 22 notice or lien to the state construction registry, you may be 23 required to pay the person or company even if you have paid the 24 general contractor the full amount due. Therefore, check the 25 state construction registry internet website for information 26 about the property including persons or companies furnishing 27 labor or materials before paying your general contractor. In 28 addition, when making payment to your general contractor, it is 29 important to obtain lien waivers from your general contractor 30 and from persons or companies furnishing labor or materials 31 to your property. The information in the state construction 32 registry is posted on the internet website of the state 33 construction registry.” 34 2. The notice described in subsection 1 shall also contain 35 -6- LSB 2236YH (3) 84 rh/nh 6/ 20

H.F. 262 the internet website address and toll-free telephone number of 1 the state construction registry. 2 3. A general contractor who fails to provide notice pursuant 3 to this section is not entitled to a lien and remedy provided 4 by this chapter. 5 4. This section applies only to residential construction 6 properties. 7 Sec. 9. NEW SECTION . 572.13A Notice of commencement of work 8 —— general contractor —— owner-builder. 9 1. A general contractor or owner-builder shall submit a 10 notice of commencement of work to the administrator or post 11 a notice of commencement of work to the state construction 12 registry internet website within ten days of commencement of 13 work on the property. A notice of commencement of work is 14 effective only as to any labor, service, equipment, or material 15 furnished to the property subsequent to the posting of the 16 notice of commencement of work. A notice of commencement of 17 work shall include all of the following information: 18 a. The name and address of the property owner. 19 b. The name and address of the general contractor or 20 owner-builder. 21 c. The address of the property if the property can be 22 reasonably identified by an address or the name and a general 23 description of the location of the property if the property 24 cannot be reasonably identified by an address. 25 d. A legal description of the property. 26 e. The date work commenced. 27 f. Any other information prescribed by the administrator 28 pursuant to rule. 29 2. If a general contractor or owner-builder fails to submit 30 a notice of commencement of work to the administrator or 31 fails to post the required notice of commencement of work to 32 the state construction registry internet website pursuant to 33 subsection 1, within ten days of commencement of the work on 34 the property, a subcontractor may submit or post the notice in 35 -7- LSB 2236YH (3) 84 rh/nh 7/ 20

H.F. 262 conjunction with the filing of the required preliminary notice 1 pursuant to section 572.13B. 2 3. At the time a notice of commencement of work is posted 3 on the state construction registry internet website, the 4 administrator shall send a copy of the owner notice described 5 in section 572.13 along with other relevant information to the 6 owner and to the property address, addressed to “owner”, as 7 prescribed by the administrator pursuant to rule. 8 4. A general contractor who fails to provide notice pursuant 9 to this section is not entitled to a lien and remedy provided 10 by this chapter. 11 5. This section applies only to residential construction 12 properties. 13 Sec. 10. NEW SECTION . 572.13B Preliminary notice —— 14 subcontractor —— residential construction. 15 1. A subcontractor shall submit a preliminary notice to 16 the administrator or post a preliminary notice to the state 17 construction registry internet website. A preliminary notice 18 posted prior to the balance paid to the general contractor 19 or owner-builder by the owner is effective as to all labor, 20 service, equipment, and material furnished to the property by 21 the subcontractor. The preliminary notice shall contain all 22 of the following information: 23 a. The name of the owner. 24 b. The state construction registry number. 25 c. The name, address, and telephone number of the 26 subcontractor furnishing the labor, service, equipment, or 27 material. 28 d. The name and address of the person who contracted 29 with the claimant for the furnishing of the labor, service, 30 equipment, or material. 31 e. The name of the general contractor or owner-builder under 32 which the claimant is performing or will perform the work. 33 f. The address of the property or a description of the 34 location of the property. 35 -8- LSB 2236YH (3) 84 rh/nh 8/ 20

H.F. 262 g. Any other information required by the administrator 1 pursuant to rule. 2 2. A mechanic’s lien perfected under this chapter 3 is enforceable only to the extent of the balance due the 4 general contractor or owner-builder prior to the posting of a 5 preliminary notice specified in subsection 1. 6 3. At the time a preliminary notice is posted to the 7 state construction registry, the administrator shall send 8 notification to the owner as prescribed by the administrator 9 pursuant to rule, including the owner notice described in 10 section 572.13, subsection 1. Notices under this section will 11 not be sent to owner-builders. 12 4. A subcontractor who fails to submit or post a preliminary 13 notice pursuant to this section shall not be entitled to a lien 14 and remedy provided under this chapter. 15 5. This section applies only to residential construction 16 properties. 17 Sec. 11. Section 572.14, Code 2011, is amended by striking 18 the section and inserting in lieu thereof the following: 19 572.14 Liability to subcontractor after payment to general 20 contractor or owner-builder. 21 Except as provided in section 572.13B, payment to the 22 general contractor or owner-builder by the owner of any part or 23 all of the contract price of the building or improvement within 24 ninety days after the date on which the last of the materials 25 was furnished or the last of the labor was performed by a 26 subcontractor, does not relieve the owner from liability to the 27 subcontractor for the full value of any material furnished or 28 labor performed upon the building, land, or improvement if the 29 subcontractor perfects a lien within ninety days after the date 30 on which the last of the materials was furnished or the last of 31 the labor was performed. 32 Sec. 12. Section 572.15, Code 2011, is amended to read as 33 follows: 34 572.15 Discharge of subcontractor’s mechanic’s lien —— bond. 35 -9- LSB 2236YH (3) 84 rh/nh 9/ 20

H.F. 262 A mechanic’s lien may be discharged at any time by the owner, 1 principal contractor, or intermediate subcontractor filing with 2 the clerk of the district court of the county in which the 3 property is located submitting a bond to the administrator in 4 twice the amount of the sum for which the claim for the lien 5 is filed, with surety or sureties, to be approved by the clerk 6 administrator , conditioned for the payment of any sum for which 7 the claimant may obtain judgment upon the claim. 8 Sec. 13. Section 572.16, Code 2011, is amended to read as 9 follows: 10 572.16 Rule of construction. 11 Nothing in this chapter shall be construed to require the 12 owner to pay a greater amount or at an earlier date than is 13 provided in the owner’s contract with the principal general 14 contractor, unless said the owner pays a part or all of the 15 contract price to the original general contractor before the 16 expiration of the ninety days allowed by law for the filing 17 perfection of a mechanic’s lien by a subcontractor; provided 18 that in the case of an owner-occupied dwelling residential 19 construction , nothing in this chapter shall be construed to 20 require the owner to pay a greater amount or at an earlier date 21 than is provided in the owner’s contract with the principal 22 general contractor, unless the owner pays a part or all 23 of the contract price to the principal general contractor 24 after receipt of notice under section 572.14, subsection 2 a 25 preliminary notice has been posted to the state construction 26 registry internet website pursuant to section 572.13B . 27 Sec. 14. Section 572.17, Code 2011, is amended to read as 28 follows: 29 572.17 Priority of mechanics’ liens between mechanics. 30 Mechanics’ liens shall have priority over each other in the 31 order of the filing submission of the statements or of accounts 32 as herein provided in section 572.8 . 33 Sec. 15. Section 572.18, subsections 1 and 3, Code 2011, are 34 amended to read as follows: 35 -10- LSB 2236YH (3) 84 rh/nh 10/ 20

H.F. 262 1. Mechanics’ liens filed perfected by a principal general 1 contractor or subcontractor within ninety days after the date 2 on which the last of the material was furnished or the last 3 of the claimant’s labor was performed and for which notices 4 were properly submitted or posted to the state construction 5 registry internet website pursuant to sections 572.13A and 6 572.13B shall be superior to all other liens which may attach 7 to or upon a building or improvement and to the land upon which 8 it is situated, except liens of record prior to the time of the 9 original commencement of the claimant’s work or the claimant’s 10 improvements, except as provided in subsection 2 . 11 3. The rights of purchasers, encumbrancers, and other 12 persons who acquire interests in good faith, for a valuable 13 consideration, and without notice of a lien perfected pursuant 14 to this chapter , are superior to the claims of all general 15 contractors or subcontractors who have perfected their liens 16 more than ninety days after the date on which the last of the 17 claimant’s material was furnished or the last of the claimant’s 18 labor was performed. 19 Sec. 16. Section 572.22, Code 2011, is amended to read as 20 follows: 21 572.22 Record of claim. 22 The clerk of the court administrator shall endorse upon 23 every claim for a mechanic’s lien filed in the clerk’s office 24 posted to the state construction registry internet website or 25 submitted to the administrator through United States mail the 26 date and hour of filing and make an abstract thereof in the 27 mechanic’s lien book kept for that purpose . Said book Each 28 claim shall be properly indexed and shall contain the following 29 items concerning each claim : 30 1. The name of the person by whom filed. 31 2. The date and hour of filing. 32 3. The amount thereof. 33 4. The name of the person against whom filed. 34 5. The legal description of the property to be charged 35 -11- LSB 2236YH (3) 84 rh/nh 11/ 20

H.F. 262 therewith . 1 6. The tax parcel identification number of the property to 2 be charged. 3 Sec. 17. Section 572.23, Code 2011, is amended to read as 4 follows: 5 572.23 Acknowledgment of satisfaction of claim. 6 1. When a mechanic’s lien is satisfied by payment of the 7 claim, the claimant shall acknowledge satisfaction thereof upon 8 the mechanic’s lien book, or otherwise in writing, and, if the 9 claimant neglects to do so for thirty days after demand in 10 writing is personally served upon the claimant, the claimant 11 shall forfeit and pay twenty-five dollars to the owner or , 12 general contractor, or owner-builder and be liable to any 13 person injured to the extent of the injury. 14 2. If acknowledgment of satisfaction is not filed 15 acknowledged within thirty days after service of the demand in 16 writing, the party serving the demand or causing the demand to 17 be served may file for record with the clerk of the district 18 court administrator a copy of the demand with proofs of service 19 attached and endorsed and, in case of service by publication, 20 a personal affidavit that personal service could not be made 21 within this state. Upon completion of the requirements of this 22 subsection , the record shall be constructive notice to all 23 parties of the due forfeiture and cancellation of the lien. 24 Upon the filing of the demand with the required attachments, 25 the clerk of the district court administrator shall mail a 26 file-stamped copy of the demand to both parties. 27 Sec. 18. Section 572.30, Code 2011, is amended to read as 28 follows: 29 572.30 Action by subcontractor or owner against general 30 contractor or owner-builder . 31 Unless otherwise agreed, a principal general contractor 32 or owner-builder who engages a subcontractor to supply 33 labor or materials or both for improvements, alterations or 34 repairs to a specific owner-occupied dwelling residential 35 -12- LSB 2236YH (3) 84 rh/nh 12/ 20

H.F. 262 construction property shall pay the subcontractor in full for 1 all labor and materials supplied within thirty days after 2 the date the principal general contractor or owner-builder 3 receives full payment from the owner. If a principal general 4 contractor or owner-builder fails without due cause to pay a 5 subcontractor as required by this section , the subcontractor, 6 or the owner by subrogation, may commence an action against 7 the 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 a 30 bond or makes a deposit with the clerk of the district court 31 administrator , 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 -13- LSB 2236YH (3) 84 rh/nh 13/ 20

H.F. 262 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. 19. Section 572.31, Code 2011, is amended to read as 4 follows: 5 572.31 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 cooperative basis under chapter 499A , or which is 9 submitted to a horizontal property regime under chapter 499B , 10 is not enforceable, notwithstanding any contrary provision 11 of this chapter , as against the interests of an owner in an 12 owner-occupied dwelling a unit contained in the apartment 13 house or apartment building acquired in good faith and for 14 valuable consideration, unless a lien statement specifically 15 describing the dwelling unit is filed under section 572.8 16 within the applicable time period specified in section 572.9 , 17 but determined from the date on which the last of the material 18 was supplied or the last of the labor was performed in the 19 construction of that dwelling unit. 20 Sec. 20. Section 572.32, Code 2011, 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 mechanic’s lien filed on 28 an owner-occupied dwelling a residential construction property , 29 if the person challenging the lien prevails, the court may 30 award reasonable attorney fees and actual damages. If the 31 court determines that the mechanic’s lien was filed in bad 32 faith or the supporting affidavit was materially false, the 33 court shall award the owner reasonable attorney fees plus an 34 amount not less than five hundred dollars or the amount of the 35 -14- LSB 2236YH (3) 84 rh/nh 14/ 20

H.F. 262 lien, whichever is less. 1 Sec. 21. Section 572.33, Code 2011, is amended to read as 2 follows: 3 572.33 Requirement of notification for commercial 4 construction . 5 1. The notification requirements in this section apply only 6 to commercial construction. 7 1. 2. A person furnishing labor or materials to a 8 subcontractor shall not be entitled to a lien under this 9 chapter unless the person furnishing labor or materials does 10 all of the following: 11 a. Notifies the principal general contractor or 12 owner-builder in writing with a one-time notice containing 13 the name, mailing address, and telephone number of the 14 person furnishing the labor or materials, and the name of the 15 subcontractor to whom the labor or materials were furnished, 16 within thirty days of first furnishing labor or materials for 17 which a lien claim may be made. Additional labor or materials 18 furnished by the same person to the same subcontractor for 19 use in the same construction project shall be covered by this 20 notice. 21 b. Supports the lien claim with a certified statement that 22 the principal general contractor or owner-builder was notified 23 in writing with a one-time notice containing the name, mailing 24 address, and telephone number of the person furnishing the 25 labor or materials, and the name of the subcontractor to whom 26 the labor or materials were furnished, within thirty days 27 after the labor or materials were first furnished, pursuant to 28 paragraph “a” . 29 2. This section shall not apply to a mechanic’s lien on 30 single-family or two-family dwellings occupied or used or 31 intended to be occupied or used for residential purposes. 32 3. Notwithstanding other provisions of this chapter , a 33 principal general contractor or owner-builder shall not be 34 prohibited from requesting information from a subcontractor 35 -15- LSB 2236YH (3) 84 rh/nh 15/ 20

H.F. 262 or a person furnishing labor or materials to a subcontractor 1 regarding payments made or payments to be made to a person 2 furnishing labor or materials to a subcontractor. 3 Sec. 22. NEW SECTION . 572.33A Liability of owner to general 4 contractor —— commercial construction. 5 An owner of a building, land, or improvement upon which 6 a mechanic’s lien of a subcontractor may be filed, is not 7 required to pay the general contractor for compensation for 8 work done or material furnished for the building, land, or 9 improvement until the expiration of ninety days after the 10 completion of the building or improvement unless the general 11 contractor furnishes to the owner one of the following: 12 1. Receipts and waivers of claims for mechanics’ liens, 13 signed by all persons who furnished material or performed labor 14 for the building, land, or improvement. 15 2. A good and sufficient bond to be approved by the owner, 16 conditioned that the owner shall be held harmless from any 17 loss which the owner may sustain by reason of the filing of 18 mechanics’ liens by subcontractors. 19 Sec. 23. NEW SECTION . 572.34 State construction registry 20 —— residential construction. 21 1. A state construction registry is created and shall be 22 administered by the administrator. The administrator shall 23 adopt rules pursuant to chapter 17A for the creation and 24 administration of the registry. 25 2. The state construction registry shall be accessible 26 to the general public through the administrator’s internet 27 website. 28 3. The registry shall be indexed by owner name, general 29 contractor name, state construction registry number, property 30 address, legal description, tax parcel identification number, 31 and any other identifier considered appropriate as determined 32 by the administrator. 33 4. A general contractor, owner-builder, or subcontractor 34 who posts fictitious, forged, or false information to the 35 -16- LSB 2236YH (3) 84 rh/nh 16/ 20

H.F. 262 state construction registry shall be subject to a penalty as 1 determined by the administrator by rule in addition to all 2 other penalties and remedies available under applicable law. 3 5. A person may post a correction statement with respect to 4 a record indexed in the state construction registry internet 5 website if the person believes the record is inaccurate or 6 wrongfully posted. 7 6. The administrator shall charge and collect fees as 8 established by rule necessary for the administration and 9 maintenance of the registry and the registry’s internet 10 website. The administrator shall not charge a filing fee for 11 a preliminary notice required pursuant to this chapter that 12 exceeds the cost of sending such notice by certified mail with 13 restricted delivery and return receipt. The administrator 14 shall not charge a filing fee for a mechanics’ lien that 15 exceeds forty dollars. 16 7. Notices may be posted to the state construction registry 17 electronically on the administrator’s internet website, or may 18 be sent to the administrator by United States mail or facsimile 19 transmission. 20 8. The administrator shall send a receipt acknowledging 21 a notice submitted by United States mail or facsimile 22 transmission, as provided by the administrator by rule. 23 9. Information collected by and furnished to the 24 administrator in conjunction with the submission and posting 25 of notices pursuant to sections 572.13A and 572.13B shall be 26 used by the administrator solely for the purposes of the state 27 construction registry. 28 Sec. 24. Section 602.8102, subsection 82, Code 2011, is 29 amended to read as follows: 30 82. Carry out duties relating to liens as provided in 31 chapters 249A , 572 , 574 , 580 , 582 , and 584 . 32 Sec. 25. EFFECTIVE DATE. This Act takes effect January 1, 33 2013. 34 EXPLANATION 35 -17- LSB 2236YH (3) 84 rh/nh 17/ 20

H.F. 262 This bill relates to mechanics’ liens including the 1 establishment of a state construction registry for residential 2 construction property and provides an effective date. 3 The bill changes all references to “principal contractor” 4 and “contractor” to “general contractor”, defined in the 5 bill to mean a person who does work or furnishes materials 6 by contract, express or implied, with an owner. “General 7 contractor” does not include a person who does work or 8 furnishes materials on contract with an owner-builder. 9 The bill defines “owner-builder” as the legal or equitable 10 titleholder who furnishes material or performs labor upon a 11 building, erection, or other improvement, or who contracts 12 with a subcontractor to furnish material or perform labor upon 13 a building, erection, or other improvement and who offers 14 or intends to offer to sell the owner-builder’s property 15 without occupying or using the structures, properties, 16 developments, or improvements for more than one year from the 17 date the structure, property, development, or improvement 18 is substantially completed or abandoned. The bill extends 19 provisions currently in the Code for general contractors to 20 owner-builders. These provisions relate to perfecting a lien, 21 the acknowledgment of a lien that has been satisfied by payment 22 of a claim, actions by subcontractors or owners to recover 23 amounts due, and certain notification requirements. The bill 24 also extends provisions for general contractors relating to 25 notification requirements for commercial construction to 26 owner-builders. 27 The bill provides for the perfection of a mechanic’s lien 28 by posting a verified statement of account to the state 29 construction registry internet website or submitting to the 30 administrator of the registry (the secretary of state), rather 31 than by filing such statement with the district court. The 32 bill provides that a person who intends to perfect a mechanic’s 33 lien shall include the address of the property or a description 34 of the location of the property in the person’s verified 35 -18- LSB 2236YH (3) 84 rh/nh 18/ 20