H.F. 258 Section 1. Section 572.8, subsection 1, paragraphs b and e, 1 Code 2013, are amended to read as follows: 2 b. The legal description of that accurately describes the 3 property to be charged with the lien. 4 e. The tax parcel identification number required by law to 5 be assigned to the property for real estate tax administration 6 purposes . 7 Sec. 2. Section 572.11, Code 2013, is amended to read as 8 follows: 9 572.11 Extent of lien posted after ninety days. 10 Liens perfected under section 572.10 shall be enforced 11 against the property or upon the bond, if given, by the owner 12 or by the owner-builder’s buyer, only to the extent of the 13 balance due from the owner to the general contractor or from 14 the owner-builder’s buyer to the owner-builder at the time of 15 the service of such notice; but if the bond was given by the 16 general contractor or owner-builder, or person contracting with 17 the subcontractor filing posting the claim for a lien, such 18 bond shall be enforced to the full extent of the amount found 19 due the subcontractor. 20 Sec. 3. Section 572.13A, subsections 1 and 2, Code 2013, are 21 amended to read as follows: 22 1. A general contractor , or owner-builder who has 23 contracted or will contract with a subcontractor to provide 24 labor or furnish material for the property , shall post a 25 notice of commencement of work to the mechanics’ notice and 26 lien registry internet website within no later than ten days 27 of after the commencement of work on the property. A notice 28 of commencement of work is effective only as to any labor, 29 service, equipment, or material furnished to the property 30 subsequent to the posting of the notice of commencement of 31 work. A notice of commencement of work shall include all of 32 the following information: 33 a. The name and address of the owner. 34 b. The name, address, and telephone number of the general 35 -1- LSB 2311YH (1) 85 rh/nh 1/ 11

H.F. 258 contractor or owner-builder. 1 c. The address of the property or a description of the 2 location of the property if the property cannot be reasonably 3 identified by an address. 4 d. The legal description of that accurately describes the 5 property to be charged with the lien . 6 e. The date work commenced. 7 f. The tax parcel identification number required by law to 8 be assigned to the property for real estate tax administration 9 purposes . 10 g. Any other information prescribed by the administrator 11 pursuant to rule. 12 2. If a general contractor or owner-builder fails to 13 post the required notice of commencement of work to the 14 mechanics’ notice and lien registry internet website pursuant 15 to subsection 1 , within no later than ten days of after the 16 commencement of the work on the property, a subcontractor may 17 post the notice in conjunction with the filing posting of the 18 required preliminary notice pursuant to section 572.13B . A 19 notice of commencement of work must be posted to the mechanics’ 20 notice and lien registry internet website before preliminary 21 notices pursuant to section 572.13B may be posted. 22 Sec. 4. Section 572.13A, subsection 3, paragraph c, Code 23 2013, is amended to read as follows: 24 c. The notice described in subsection 1 shall be sent to 25 the owner’s address as posted to the mechanics’ notice and 26 lien registry by the general contractor, owner-builder, or 27 subcontractor . If the owner’s address is different than the 28 property address, a copy of the notice shall also be sent to 29 the property address, addressed to the owner. 30 Sec. 5. Section 572.13A, subsection 3, Code 2013, is amended 31 by adding the following new paragraph: 32 NEW PARAGRAPH . d. Notices under this section shall not be 33 sent to owner-builders. 34 Sec. 6. Section 572.13B, subsection 1, paragraphs g and i, 35 -2- LSB 2311YH (1) 85 rh/nh 2/ 11

H.F. 258 Code 2013, are amended to read as follows: 1 g. The legal description of that accurately describes the 2 property to be charged with the lien . 3 i. The tax parcel identification number required by law to 4 be assigned to the property for real estate tax administration 5 purposes . 6 Sec. 7. Section 572.13B, subsection 2, Code 2013, is amended 7 to read as follows: 8 2. At the time a preliminary notice is posted to the 9 mechanics’ notice and lien registry, the administrator shall 10 send notification to the owner, including the owner notice 11 described in section 572.13, subsection 1 , and shall docket 12 post the mailing of the notice on the mechanics’ notice and 13 lien registry as prescribed by the administrator pursuant 14 to rule. Notices under this section shall not be sent to 15 owner-builders. Upon request, the administrator shall provide 16 an affidavit of mailing proof of service at no cost for the 17 notice required under this section . 18 Sec. 8. Section 572.15, Code 2013, is amended to read as 19 follows: 20 572.15 Discharge of mechanic’s lien —— bond. 21 A mechanic’s lien may be discharged at any time by submitting 22 a bond to the administrator in twice the amount of the sum 23 for which the claim for the lien is filed posted , with surety 24 or sureties, to be approved by the administrator, conditioned 25 for the payment of any sum for which the claimant may obtain 26 judgment upon the claim. 27 Sec. 9. Section 572.19, Code 2013, is amended to read as 28 follows: 29 572.19 Priority over garnishments of the owner. 30 Mechanics’ liens shall take priority of over all 31 garnishments of the owner for the contract debts, whether made 32 prior or subsequent to the commencement of the furnishing of 33 the material or performance of the labor, without regard to the 34 date of filing posting the claim for such lien. 35 -3- LSB 2311YH (1) 85 rh/nh 3/ 11

H.F. 258 Sec. 10. Section 572.22, unnumbered paragraph 1, Code 2013, 1 is amended to read as follows: 2 The administrator shall endorse upon every claim for a 3 mechanic’s lien posted to the mechanics’ notice and lien 4 registry internet website the date and hour of posting. 5 Each claim posted to the mechanics’ notice and lien registry 6 internet website shall be properly indexed and shall contain 7 the following items: 8 Sec. 11. Section 572.22, subsections 5 and 6, Code 2013, are 9 amended to read as follows: 10 5. The legal description of that accurately describes the 11 property to be charged with the lien . 12 6. The tax parcel identification number of the property to 13 be charged required by law to be assigned to the property for 14 real estate tax administration purposes . 15 Sec. 12. Section 572.23, Code 2013, is amended to read as 16 follows: 17 572.23 Acknowledgment of satisfaction of claim. 18 1. When a mechanic’s lien is satisfied by payment of the 19 claim, the claimant shall acknowledge post to the mechanics’ 20 notice and lien registry an acknowledgment of satisfaction 21 thereof of claim and, if the claimant neglects to do so for 22 thirty days after demand in writing is personally served upon 23 the claimant, the claimant shall forfeit and pay twenty-five 24 dollars to the owner, general contractor, or owner-builder and 25 be liable to any person injured to the extent of the injury. 26 2. If satisfaction is not acknowledged an acknowledgment of 27 satisfaction of claim is not posted to the mechanics’ notice 28 and lien registry within thirty days after service of the 29 demand in writing, the party serving the demand or causing the 30 demand to be served may file for record with the administrator 31 post to the mechanics’ notice and lien registry a copy of 32 the demand with proofs of service attached and endorsed and, 33 in case of service by publication, a personal affidavit that 34 personal service could not be made within this state. Upon 35 -4- LSB 2311YH (1) 85 rh/nh 4/ 11

H.F. 258 completion of the requirements of this subsection , the record 1 posting shall be constructive notice to all parties of the 2 due forfeiture and cancellation of the lien. Upon the filing 3 posting of the demand with the required attachments, the 4 administrator shall mail a date-stamped copy of the demand to 5 both parties. 6 Sec. 13. NEW SECTION . 572.23A Partial satisfaction of money 7 debt after posting notice. 8 1. A general contractor or subcontractor shall post an 9 acknowledgment of partial satisfaction of a money debt to the 10 mechanics’ notice and lien registry for material, labor, and 11 equipment furnished by the general contractor or subcontractor. 12 2. If an acknowledgment of partial satisfaction pursuant 13 to subsection 1 is not posted to the mechanic’s notice and 14 lien registry within thirty days after receipt of written 15 demand from the owner, general contractor, or owner-builder, 16 the owner, general contractor, or owner-builder may post an 17 acknowledgment of partial satisfaction of the money debt and a 18 copy of the written demand to the mechanics’ notice and lien 19 registry. 20 3. This section applies in situations where the required 21 notices pursuant to sections 572.13A and 572.13B have been 22 posted to the mechanics’ notice and lien registry but a 23 mechanic’s lien has not been posted. 24 Sec. 14. Section 572.28, subsection 1, Code 2013, is amended 25 to read as follows: 26 1. Upon the written demand of the owner served on the 27 lienholder claimant requiring the lienholder claimant to 28 commence action to enforce the lien, such action shall be 29 commenced within thirty days thereafter, or the lien and all 30 benefits derived therefrom shall be forfeited. 31 Sec. 15. Section 572.30, subsection 2, Code 2013, is amended 32 to read as follows: 33 2. Within fifteen days after receiving notice of nonpayment 34 the general contractor or owner-builder gives a bond or makes 35 -5- LSB 2311YH (1) 85 rh/nh 5/ 11

H.F. 258 a deposit with the administrator , in an amount not less than 1 the amount necessary to satisfy the nonpayment for which notice 2 has been given under this section , and in a form approved 3 by a judge of the district court the administrator , to hold 4 harmless the owner or person having the improvement made from 5 any claim for payment of anyone furnishing labor or material 6 for the improvement, other than the general contractor or 7 owner-builder. 8 Sec. 16. Section 572.31, Code 2013, is amended to read as 9 follows: 10 572.31 Cooperative and condominium housing. 11 A lien arising under this chapter as a result of the 12 construction of an apartment house or apartment building which 13 is owned on a cooperative basis under chapter 499A , or which is 14 submitted to a horizontal property regime under chapter 499B , 15 is not enforceable, notwithstanding any contrary provision of 16 this chapter , as against the interests of an owner in a unit 17 contained in the apartment house or apartment building acquired 18 in good faith and for valuable consideration, unless a lien 19 statement specifically describing the unit is filed posted 20 under section 572.8 within the applicable time period specified 21 in section 572.9 , but determined from the date on which the 22 last of the material was supplied or the last of the labor was 23 performed in the construction of that unit. 24 Sec. 17. Section 572.33A, Code 2013, is amended to read as 25 follows: 26 572.33A Liability of owner to general contractor —— 27 commercial construction. 28 1. An owner of a building, land, or improvement upon which 29 a mechanic’s lien of a subcontractor may be filed posted , is 30 not required to pay the general contractor for compensation 31 for work done or material furnished for the building, land, 32 or improvement until the expiration of ninety days after the 33 completion of the building or improvement unless the general 34 contractor furnishes to the owner one of the following: 35 -6- LSB 2311YH (1) 85 rh/nh 6/ 11

H.F. 258 1. a. Receipts and waivers of claims for mechanics’ liens, 1 signed by all persons who furnished material or performed labor 2 for the building, land, or improvement. 3 2. b. A good and sufficient bond to be approved by the 4 owner, conditioned that the owner shall be held harmless from 5 any loss which the owner may sustain by reason of the filing 6 posting of mechanics’ liens by subcontractors. 7 2. This section applies only to commercial construction 8 properties. 9 Sec. 18. Section 572.34, Code 2013, is amended to read as 10 follows: 11 572.34 Mechanics’ notice and lien registry —— residential 12 construction . 13 1. A mechanics’ notice and lien registry is created and 14 shall be administered by the administrator. The administrator 15 shall adopt rules pursuant to chapter 17A for the creation and 16 administration of the registry. 17 2. The mechanics’ notice and lien registry shall be 18 accessible to the general public through the administrator’s 19 internet website. 20 3. a. The administrator shall index the legal descriptions 21 of the properties for which notices and liens are posted to 22 the registry. For the purpose of performing a search of the 23 registry the legal description shall be the controlling index 24 category. 25 b. The registry shall be indexed by owner name, general 26 contractor name, mechanics’ notice and lien registry number, 27 property address, legal description, tax parcel identification 28 number required by law to be assigned to the property for real 29 estate tax administration purposes , and any other identifier 30 considered appropriate as determined by the administrator 31 pursuant to rule. 32 4. A general contractor, owner-builder, or subcontractor 33 Any person who posts fictitious, forged, or false information 34 to the mechanics’ notice and lien registry shall be subject 35 -7- LSB 2311YH (1) 85 rh/nh 7/ 11

H.F. 258 to a penalty as determined by the administrator by rule in 1 addition to all other penalties and remedies available under 2 applicable law. 3 5. A person may post a correction statement with respect 4 to a record indexed in on the mechanics’ notice and lien 5 registry internet website if the person believes the record is 6 inaccurate or 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 posting 11 fee for a preliminary notice required pursuant to this chapter 12 that exceeds the cost of sending such notice by certified mail 13 with restricted delivery and return receipt. The administrator 14 shall not charge a filing posting fee for a mechanic’s lien 15 that exceeds forty dollars. 16 7. Notices may shall be posted to the mechanics’ notice and 17 lien registry electronically on the administrator’s internet 18 website , or may be sent to the administrator for posting 19 by United States mail or facsimile transmission, or other 20 alternate method as provided by the administrator pursuant to 21 rule. Notices received by United States mail or facsimile 22 transmission shall be posted by the administrator to the 23 mechanics’ notice and lien registry within three business days 24 of receipt . 25 8. Mechanics’ liens may shall be posted to the mechanics’ 26 notice and lien registry electronically on the administrator’s 27 internet website or may be sent to the administrator for 28 posting by United States mail. Liens received by United States 29 mail shall be posted by the administrator to the mechanics’ 30 notice and lien registry within three business days of receipt . 31 9. The administrator shall send a receipt acknowledging a 32 notice or lien submitted by United States mail or facsimile 33 transmission, as provided by the administrator by rule. 34 9. The posting of a notice or a lien to the mechanics’ 35 -8- LSB 2311YH (1) 85 rh/nh 8/ 11

H.F. 258 notice and lien registry internet website pursuant to this 1 chapter, along with the tender of the requisite filing fees and 2 the sending of an acknowledgment receipt by the administrator, 3 is equivalent to a filing and recording of the appropriate 4 notice or lien in the county in which the real estate is 5 located. 6 10. Information collected by and furnished to the 7 administrator in conjunction with the submission and posting of 8 notices pursuant to sections 572.13A and 572.13B shall be used 9 by the administrator solely for the purposes of the mechanics’ 10 notice and lien registry. 11 11. Registration under chapter 91C shall not be required in 12 order to post a notice or a lien under this chapter . 13 12. A preliminary notice that remains posted on the 14 mechanics’ notice and lien registry internet website two 15 years after the date of posting shall be declared inactive by 16 the administrator, unless renewed. A notice of commencement 17 of work, if there are no related active postings, shall be 18 declared inactive two years from the date of posting, unless 19 renewed. The administrator shall establish a process for the 20 removal of inactive notices and for the renewal of notices 21 pursuant to rule. 22 12. 13. The administrator shall make, or cause to be made, 23 preservation duplicates of mechanics’ notice and lien registry 24 records, including records stored in a computer database. Any 25 preservation duplicate record shall be accurate, complete, and 26 clear, and shall be made, preserved, and made accessible to the 27 public by means designated by the administrator by rule. 28 EXPLANATION 29 This bill makes conforming language corrections relating 30 to the posting of precommencement and preliminary notices and 31 mechanic’s liens on the mechanics’ notice and lien registry 32 (registry) and related civil enforcement actions, to be 33 consistent with changes made in HF 675 (2012). 34 The bill also amends provisions relating to certain property 35 -9- LSB 2311YH (1) 85 rh/nh 9/ 11

H.F. 258 information required for precommencement and preliminary 1 notices. 2 The bill specifies that general contractors and 3 owner-builders do not have to send precommencement notices to 4 owner-builders. 5 The bill requires the administrator (secretary of state) to 6 provide proof of service for notices posted on the registry and 7 eliminates the requirement that the administrator endorse every 8 claim for a mechanic’s lien posted on the registry. 9 The bill specifies that each claim posted to the 10 registry internet website shall be properly indexed by the 11 administrator, and shall include items including the name 12 of the person who posted the claim, the date and hour of 13 the posting, and the amount of the claim. The bill makes 14 changes to the registry indexing requirements and requires the 15 administrator to index the legal descriptions of the properties 16 for which notices and liens are posted to the registry. 17 The bill provides that when a mechanic’s lien is satisfied 18 by payment of the claim, the claimant must acknowledge 19 satisfaction by posting an acknowledgment of the satisfaction 20 to the registry. If such an acknowledgment is not posted to 21 the registry within 30 days after service of the demand in 22 writing, the party serving the demand may post a copy of the 23 demand to the registry. 24 The bill provides that a general contractor or subcontractor 25 shall post an acknowledgment of partial satisfaction of a money 26 debt to the mechanics’ notice and lien registry for material, 27 labor, and equipment furnished by the general contractor or 28 subcontractor. If an acknowledgment of partial satisfaction 29 is not posted to the registry within 30 days after receipt 30 of written demand from the owner, general contractor, or 31 owner-builder, the owner, general contractor, or owner-builder 32 may post an acknowledgment of partial satisfaction of the money 33 debt and a copy of the written demand to the mechanics’ notice 34 and lien registry. This provision applies in situations where 35 -10- LSB 2311YH (1) 85 rh/nh 10/ 11

H.F. 258 the required notices pursuant to Code sections 572.13A and 1 572.13B have been posted to the mechanics’ notice and lien 2 registry but a mechanic’s lien has not been posted. 3 The bill provides that in a civil action by a subcontractor 4 or owner against a general contractor or owner-builder, a 5 bond given by a general contractor or owner-builder shall be 6 approved by the administrator instead of the court. 7 The bill provides that the posting by any person of 8 fictitious, forged, or false information to the registry is 9 subject to a penalty as determined by the administrator. 10 The bill provides that precommencement and preliminary 11 notices and mechanic’s liens shall be posted to the mechanics’ 12 notice and lien registry electronically on the administrator’s 13 internet website. 14 The bill provides that the posting of a notice or a lien 15 to the mechanics’ notice and lien registry internet website 16 along with the requisite filing fees and the sending of an 17 acknowledgment receipt by the administrator is equivalent to a 18 filing and recording of the appropriate notice or lien in the 19 county in which the real estate is located. 20 The bill provides that a preliminary notice that remains 21 posted on the mechanics’ notice and lien registry internet 22 website two years after the date of posting shall be declared 23 inactive by the administrator, unless renewed. A commencement 24 of work, if there are no related active postings, shall be 25 declared inactive two years from the date of posting, unless 26 renewed. The administrator is also required to establish a 27 process for the removal of inactive notices and for the renewal 28 of notices pursuant to rule. 29 -11- LSB 2311YH (1) 85 rh/nh 11/ 11