H.F. 565 Section 1. Section 572.8, subsection 1, paragraph b, Code 1 2013, is amended to read as follows: 2 b. The legal description of that adequately describes the 3 property to be charged with the lien. 4 Sec. 2. Section 572.11, Code 2013, is amended to read as 5 follows: 6 572.11 Extent of lien posted after ninety days. 7 Liens perfected under section 572.10 shall be enforced 8 against the property or upon the bond, if given, by the owner 9 or by the owner-builder’s buyer, only to the extent of the 10 balance due from the owner to the general contractor or from 11 the owner-builder’s buyer to the owner-builder at the time of 12 the service of such notice; but if the bond was given by the 13 general contractor or owner-builder, or person contracting with 14 the subcontractor filing posting the claim for a lien, such 15 bond shall be enforced to the full extent of the amount found 16 due the subcontractor. 17 Sec. 3. Section 572.13A, subsections 1 and 2, Code 2013, are 18 amended to read as follows: 19 1. A general contractor or owner-builder who has contracted 20 or will contract with a subcontractor to provide labor or 21 furnish material for the property shall post a notice of 22 commencement of work to the mechanics’ notice and lien registry 23 internet website within no later than ten days of after the 24 commencement of work on the property. A notice of commencement 25 of work is effective only as to any labor, service, equipment, 26 or material furnished to the property subsequent to the 27 posting of the notice of commencement of work. A notice 28 of commencement of work shall include all of the following 29 information: 30 a. The name and address of the owner. 31 b. The name, address, and telephone number of the general 32 contractor or owner-builder. 33 c. The address of the property or a description of the 34 location of the property if the property cannot be reasonably 35 -1- LSB 2311HV (2) 85 rh/nh 1/ 9

H.F. 565 identified by an address. 1 d. The legal description of that adequately describes the 2 property to be charged with the lien . 3 e. The date work commenced. 4 f. The tax parcel identification number. 5 g. Any other information prescribed by the administrator 6 pursuant to rule. 7 2. If a general contractor or owner-builder fails to 8 post the required notice of commencement of work to the 9 mechanics’ notice and lien registry internet website pursuant 10 to subsection 1 , within no later than ten days of after the 11 commencement of the work on the property, a subcontractor may 12 post the notice in conjunction with the filing posting of the 13 required preliminary notice pursuant to section 572.13B . A 14 notice of commencement of work must be posted to the mechanics’ 15 notice and lien registry internet website before preliminary 16 notices pursuant to section 572.13B may be posted. 17 Sec. 4. Section 572.13A, subsection 3, paragraph c, Code 18 2013, is amended to read as follows: 19 c. The notice described in subsection 1 shall be sent to 20 the owner’s address as posted to the mechanics’ notice and 21 lien registry by the general contractor, owner-builder, or 22 subcontractor . If the owner’s address is different than the 23 property address, a copy of the notice shall also be sent 24 to the property address, addressed to the owner if a mailing 25 address has been assigned to the property by the United States 26 postal service . 27 Sec. 5. Section 572.13A, subsection 3, Code 2013, is amended 28 by adding the following new paragraph: 29 NEW PARAGRAPH . d. Notices under this section shall not be 30 sent to owner-builders. 31 Sec. 6. Section 572.13B, subsection 1, paragraph g, Code 32 2013, is amended to read as follows: 33 g. The legal description of that adequately describes the 34 property to be charged with the lien . 35 -2- LSB 2311HV (2) 85 rh/nh 2/ 9

H.F. 565 Sec. 7. Section 572.13B, subsection 2, Code 2013, is amended 1 to read as follows: 2 2. At the time a preliminary notice is posted to the 3 mechanics’ notice and lien registry, the administrator shall 4 send notification to the owner, including the owner notice 5 described in section 572.13, subsection 1 , and shall docket 6 post the mailing of the notice on the mechanics’ notice and 7 lien registry as prescribed by the administrator pursuant 8 to rule. Notices under this section shall not be sent to 9 owner-builders. Upon request, the administrator shall provide 10 an affidavit of mailing proof of service at no cost for the 11 notice required under this section . 12 Sec. 8. Section 572.15, Code 2013, is amended to read as 13 follows: 14 572.15 Discharge of mechanic’s lien —— bond. 15 A mechanic’s lien may be discharged at any time by submitting 16 a bond to the administrator in twice the amount of the sum 17 for which the claim for the lien is filed posted , with surety 18 or sureties, to be approved by the administrator, conditioned 19 for the payment of any sum for which the claimant may obtain 20 judgment upon the claim. 21 Sec. 9. Section 572.19, Code 2013, is amended to read as 22 follows: 23 572.19 Priority over garnishments of the owner. 24 Mechanics’ liens shall take priority of over all 25 garnishments of the owner for the contract debts, whether made 26 prior or subsequent to the commencement of the furnishing of 27 the material or performance of the labor, without regard to the 28 date of filing posting the claim for such lien. 29 Sec. 10. Section 572.22, unnumbered paragraph 1, Code 2013, 30 is amended to read as follows: 31 The administrator shall endorse upon every claim for a 32 mechanic’s lien posted to the mechanics’ notice and lien 33 registry internet website the date and hour of posting. 34 Each claim posted to the mechanics’ notice and lien registry 35 -3- LSB 2311HV (2) 85 rh/nh 3/ 9

H.F. 565 internet website shall be properly indexed and shall contain 1 the following items: 2 Sec. 11. Section 572.22, subsection 5, Code 2013, is amended 3 to read as follows: 4 5. The legal description of that adequately describes the 5 property to be charged with the lien . 6 Sec. 12. Section 572.23, subsection 2, Code 2013, is amended 7 to read as follows: 8 2. If satisfaction is not acknowledged within thirty days 9 after service of the demand in writing, the party serving 10 the demand or causing the demand to be served may file for 11 record with the administrator a copy of the demand with proofs 12 of service attached and endorsed and, in case of service 13 by publication, a personal affidavit that personal service 14 could not be made within this state. Upon completion of the 15 requirements of this subsection , the record posting shall be 16 constructive notice to all parties of the due forfeiture and 17 cancellation of the lien. Upon the filing posting of the 18 demand with the required attachments, the administrator shall 19 mail a date-stamped copy of the demand to both parties. 20 Sec. 13. Section 572.28, subsection 1, Code 2013, is amended 21 to read as follows: 22 1. Upon the written demand of the owner served on the 23 lienholder claimant requiring the lienholder claimant to 24 commence action to enforce the lien, such action shall be 25 commenced within thirty days thereafter, or the lien and all 26 benefits derived therefrom shall be forfeited. 27 Sec. 14. Section 572.30, subsection 2, Code 2013, is amended 28 to read as follows: 29 2. Within fifteen days after receiving notice of nonpayment 30 the general contractor or owner-builder gives a bond or makes 31 a deposit with the administrator , in an amount not less than 32 the amount necessary to satisfy the nonpayment for which notice 33 has been given under this section , and in a form approved 34 by a judge of the district court the administrator , to hold 35 -4- LSB 2311HV (2) 85 rh/nh 4/ 9

H.F. 565 harmless the owner or person having the improvement made from 1 any claim for payment of anyone furnishing labor or material 2 for the improvement, other than the general contractor or 3 owner-builder. 4 Sec. 15. Section 572.31, Code 2013, is amended to read as 5 follows: 6 572.31 Cooperative and condominium housing. 7 A lien arising under this chapter as a result of the 8 construction of an apartment house or apartment building which 9 is owned on a cooperative basis under chapter 499A , or which is 10 submitted to a horizontal property regime under chapter 499B , 11 is not enforceable, notwithstanding any contrary provision of 12 this chapter , as against the interests of an owner in a unit 13 contained in the apartment house or apartment building acquired 14 in good faith and for valuable consideration, unless a lien 15 statement specifically describing the unit is filed posted 16 under section 572.8 within the applicable time period specified 17 in section 572.9 , but determined from the date on which the 18 last of the material was supplied or the last of the labor was 19 performed in the construction of that unit. 20 Sec. 16. Section 572.33A, Code 2013, is amended to read as 21 follows: 22 572.33A Liability of owner to general contractor —— 23 commercial construction. 24 1. An owner of a building, land, or improvement upon which 25 a mechanic’s lien of a subcontractor may be filed posted , is 26 not required to pay the general contractor for compensation 27 for work done or material furnished for the building, land, 28 or improvement until the expiration of ninety days after the 29 completion of the building or improvement unless the general 30 contractor furnishes to the owner one of the following: 31 1. a. Receipts and waivers of claims for mechanics’ liens, 32 signed by all persons who furnished material or performed labor 33 for the building, land, or improvement. 34 2. b. A good and sufficient bond to be approved by the 35 -5- LSB 2311HV (2) 85 rh/nh 5/ 9

H.F. 565 owner, conditioned that the owner shall be held harmless from 1 any loss which the owner may sustain by reason of the filing 2 posting of mechanics’ liens by subcontractors. 3 2. This section applies only to commercial construction 4 properties. 5 Sec. 17. Section 572.34, Code 2013, is amended to read as 6 follows: 7 572.34 Mechanics’ notice and lien registry —— residential 8 construction . 9 1. A mechanics’ notice and lien registry is created and 10 shall be administered by the administrator. The administrator 11 shall adopt rules pursuant to chapter 17A for the creation and 12 administration of the registry. 13 2. The mechanics’ notice and lien registry shall be 14 accessible to the general public through the administrator’s 15 internet website. 16 3. The registry shall be indexed by owner name, general 17 contractor name, mechanics’ notice and lien registry number, 18 property address, legal description, tax parcel identification 19 number, and any other identifier considered appropriate as 20 determined by the administrator pursuant to rule. 21 4. A general contractor, owner-builder, or subcontractor 22 Any person who posts fictitious, forged, or false information 23 to the mechanics’ notice and lien registry shall be subject 24 to a penalty as determined by the administrator by rule in 25 addition to all other penalties and remedies available under 26 applicable law. 27 5. A person may post a correction statement with respect 28 to a record indexed in on the mechanics’ notice and lien 29 registry internet website if the person believes the record is 30 inaccurate or wrongfully posted. 31 6. The administrator shall charge and collect fees as 32 established by rule necessary for the administration and 33 maintenance of the registry and the registry’s internet 34 website. The administrator shall not charge a filing posting 35 -6- LSB 2311HV (2) 85 rh/nh 6/ 9

H.F. 565 fee for a preliminary notice required pursuant to this chapter 1 that exceeds the cost of sending such notice by certified mail 2 with restricted delivery and return receipt. The administrator 3 shall not charge a filing posting fee for a mechanic’s lien 4 that exceeds forty dollars. 5 7. Notices may be posted to the mechanics’ notice and 6 lien registry electronically on the administrator’s internet 7 website, or may be sent to the administrator for posting 8 by United States mail or facsimile transmission, or other 9 alternate method as provided by the administrator pursuant to 10 rule. Notices received by United States mail or facsimile 11 transmission shall be posted by the administrator to the 12 mechanics’ notice and lien registry within three business days 13 of receipt. 14 8. Mechanics’ liens may be posted to the mechanics’ notice 15 and lien registry electronically on the administrator’s 16 internet website or may be sent to the administrator for 17 posting by United States mail. Liens received by United States 18 mail shall be posted by the administrator to the mechanics’ 19 notice and lien registry within three business days of receipt. 20 9. The administrator shall send a receipt acknowledging a 21 notice or lien submitted by United States mail or facsimile 22 transmission, as provided by the administrator by rule. 23 10. Information collected by and furnished to the 24 administrator in conjunction with the submission and posting of 25 notices pursuant to sections 572.13A and 572.13B shall be used 26 by the administrator solely for the purposes of the mechanics’ 27 notice and lien registry. 28 11. Registration under chapter 91C shall not be required in 29 order to post a notice or a lien under this chapter . 30 12. A preliminary notice that remains posted on the 31 mechanics’ notice and lien registry internet website two 32 years after the date of posting shall be declared inactive by 33 the administrator, unless renewed. A notice of commencement 34 of work, if there are no related active postings, shall be 35 -7- LSB 2311HV (2) 85 rh/nh 7/ 9

H.F. 565 declared inactive two years from the date of posting, unless 1 renewed. The administrator shall establish a process for the 2 removal of inactive notices and for the renewal of notices 3 pursuant to rule. 4 12. 13. The administrator shall make, or cause to be made, 5 preservation duplicates of mechanics’ notice and lien registry 6 records, including records stored in a computer database. Any 7 preservation duplicate record shall be accurate, complete, and 8 clear, and shall be made, preserved, and made accessible to the 9 public by means designated by the administrator by rule. 10 EXPLANATION 11 This bill makes conforming language corrections relating 12 to the posting of precommencement and preliminary notices and 13 mechanic’s liens on the mechanics’ notice and lien registry 14 (registry) and related civil enforcement actions, to be 15 consistent with changes made in HF 675 (2012). 16 The bill also amends provisions relating to certain property 17 information required for precommencement and preliminary 18 notices. 19 The bill specifies that general contractors and 20 owner-builders do not have to send precommencement notices to 21 owner-builders. 22 The bill requires the administrator (secretary of state) to 23 provide proof of service for notices posted on the registry and 24 eliminates the requirement that the administrator endorse every 25 claim for a mechanic’s lien posted on the registry. 26 The bill specifies that each claim posted to the 27 registry internet website shall be properly indexed by the 28 administrator. 29 The bill provides that in a civil action by a subcontractor 30 or owner against a general contractor or owner-builder, a 31 bond given by a general contractor or owner-builder shall be 32 approved by the administrator instead of the court. 33 The bill provides that the posting by any person of 34 fictitious, forged, or false information to the registry is 35 -8- LSB 2311HV (2) 85 rh/nh 8/ 9

H.F. 565 subject to a penalty as determined by the administrator. 1 The bill provides that a preliminary notice that remains 2 posted on the mechanics’ notice and lien registry internet 3 website two years after the date of posting shall be declared 4 inactive by the administrator, unless renewed. A notice of 5 commencement of work, if there are no related active postings, 6 shall be declared inactive two years from the date of posting, 7 unless renewed. The administrator is also required to 8 establish a process for the removal of inactive notices and for 9 the renewal of notices pursuant to rule. 10 -9- LSB 2311HV (2) 85 rh/nh 9/ 9