HF 564 (LSB 2505HV (1) 85)

HOUSE FILE 564

BY  COMMITTEE ON JUDICIARY

(SUCCESSOR TO HSB 215)

A BILL FOR

An Act concerning mechanic’s liens and the mechanics’ notice and lien registry.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 572.8, subsection 1, paragraph e, Code 2013, is amended to read as follows:
   e.  The tax parcel identification number
 
required by law to be assigned to the property for real estate tax administration purposes.
    Sec. 2.  Section 572.13A, subsection 1, unnumbered paragraph 1, Code 2013, is amended to read as follows:
   A general contractor, or owner-builder who has contracted or will contract with a subcontractor to provide labor or furnish material for the property, shall post a notice of commencement of work to the mechanics’ notice and lien registry internet website within
 
no later than ten days of
 
after commencement of work on the property. A notice of commencement of work is effective only as to any labor, service, equipment, or material furnished to the property subsequent to the posting of the notice of commencement of work. A notice of commencement of work shall include all of the following information:
    Sec. 3.  Section 572.13A, subsection 1, paragraph f, Code 2013, is amended to read as follows:
   f.  The tax parcel identification number
 
required by law to be assigned to the property for real estate tax administration purposes.
    Sec. 4.  Section 572.13B, subsection 1, paragraph i, Code 2013, is amended to read as follows:
   i.  The tax parcel identification number
 
required by law to be assigned to the property for real estate tax administration purposes.
    Sec. 5.  Section 572.22, subsection 6, Code 2013, is amended to read as follows:
   6.  The tax parcel identification number of the property to be charged
 
required by law to be assigned to the property for real estate tax administration purposes.
    Sec. 6.  Section 572.23, Code 2013, is amended to read as follows:
   572.23  Acknowledgment of satisfaction of claim.

   1.  When a mechanic’s lien is satisfied by payment of the claim, the claimant shall acknowledge
 
post to the mechanics’ notice and lien registry an acknowledgment of satisfaction thereof
 
of claim and, if the claimant neglects to do so for thirty days after demand in writing is personally served upon the claimant, the claimant shall forfeit and pay twenty-five dollars to the owner, general contractor, or owner-builder and be liable to any person injured to the extent of the injury.
   2.  If satisfaction is not acknowledged
 
an acknowledgment of satisfaction of claim is not posted to the mechanics’ notice and lien registry within thirty days after service of the demand in writing, the party serving the demand or causing the demand to be served may file for record with the administrator
 
post to the mechanics’ notice and lien registry a copy of the demand with proofs of service attached and endorsed and, in case of service by publication, a personal affidavit that personal service could not be made within this state. Upon completion of the requirements of this subsection, the record
 
posting shall be constructive notice to all parties of the due forfeiture and cancellation of the lien. Upon the filing
 
posting of the demand with the required attachments, the administrator shall mail a date-stamped copy of the demand to both parties.
    Sec. 7.  NEW SECTION.  572.23A  Partial satisfaction of money debt after posting notice.
   1.  A general contractor or subcontractor shall post an acknowledgment of partial satisfaction of a money debt to the mechanics’ notice and lien registry for material, labor, and equipment furnished by the general contractor or subcontractor.
   2.  If an acknowledgment of partial satisfaction pursuant to subsection 1 is not posted to the mechanic’s notice and lien registry within thirty days after receipt of written demand from the owner, general contractor, or owner-builder, the owner, general contractor, or owner-builder may post an acknowledgment of partial satisfaction of the money debt and a copy of the written demand to the mechanics’ notice and lien registry.
   3.  This section applies in situations where the required notices pursuant to sections 572.13A and 572.13B have been posted to the mechanics’ notice and lien registry but a mechanic’s lien has not been posted.
    Sec. 8.  Section 572.34, subsections 3, 7, 8, and 9, Code 2013, are amended to read as follows:
   3.
  a.  The administrator shall index the legal descriptions of the properties for which notices and liens are posted to the registry. For the purpose of performing a search of the registry the legal description shall be the controlling index category.
   b.  The registry shall be indexed by owner name, general contractor name, mechanics’ notice and lien registry number, property address, legal description, tax parcel identification number
 
required by law to be assigned to the property for real estate tax administration purposes, and any other identifier considered appropriate as determined by the administrator pursuant to rule.
   7.  Notices may
 
shall be posted to the mechanics’ notice and lien registry electronically on the administrator’s internet website, or may be sent to the administrator for posting by United States mail or facsimile transmission, or other alternate method as provided by the administrator pursuant to rule. Notices received by United States mail or facsimile transmission shall be posted by the administrator to the mechanics’ notice and lien registry within three business days of receipt.
   8.  Mechanics’ liens may
 
shall be posted to the mechanics’ notice and lien registry electronically on the administrator’s internet website or may be sent to the administrator for posting by United States mail. Liens received by United States mail shall be posted by the administrator to the mechanics’ notice and lien registry within three business days of receipt.

   9.  The administrator shall send a receipt acknowledging a notice or lien submitted by United States mail or facsimile transmission, as provided by the administrator by rule. 
 
The posting of a notice or a lien to the mechanics’ notice and lien registry internet website pursuant to this chapter, along with the tender of the requisite filing fees and the sending of an acknowledgment receipt by the administrator, is equivalent to a filing and recording of the appropriate notice or lien in the county in which the real estate is located.
EXPLANATION
   This bill concerns mechanic’s liens and the mechanics’ notice and lien registry. 
   The bill amends provisions relating to certain property information required for precommencement and preliminary notices.
   The bill provides that when a mechanic’s lien is satisfied by payment of the claim, the claimant must acknowledge satisfaction by posting an acknowledgment of the satisfaction to the registry. If such an acknowledgment is not posted to the registry within 30 days after service of the demand in writing, the party serving the demand may post a copy of the demand to the registry.
   The bill provides that a general contractor or subcontractor shall post an acknowledgment of partial satisfaction of a money debt to the mechanics’ notice and lien registry for material, labor, and equipment furnished by the general contractor or subcontractor. If an acknowledgment of partial satisfaction is not posted to the registry within 30 days after receipt of written demand from the owner, general contractor, or owner-builder, the owner, general contractor, or owner-builder may post an acknowledgment of partial satisfaction of the money debt and a copy of the written demand to the mechanics’ notice and lien registry. This provision applies in situations where the required notices pursuant to Code sections 572.13A and 572.13B have been posted to the mechanics’ notice and lien registry but a mechanic’s lien has not been posted.
   The bill requires the administrator to index the legal descriptions of the properties for which notices and liens are posted to the registry.
   The bill provides that precommencement and preliminary notices and mechanic’s liens shall be posted to the mechanics’ notice and lien registry electronically on the administrator’s internet website.
   The bill provides that the posting of a notice or a lien to the mechanics’ notice and lien registry internet website along with the requisite filing fees and the sending of an acknowledgment receipt by the administrator is equivalent to a filing and recording of the appropriate notice or lien in the county in which the real estate is located.