House Study Bill 215 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON BALTIMORE) A BILL FOR An Act concerning mechanic’s liens and the mechanics’ notice 1 and lien registry. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2505YC (5) 85 rh/nh
H.F. _____ Section 1. Section 572.8, subsection 1, paragraph e, Code 1 2013, is amended to read as follows: 2 e. The tax parcel identification number required by law to 3 be assigned to the property for real estate tax administration 4 purposes . 5 Sec. 2. Section 572.13A, subsection 1, unnumbered paragraph 6 1, Code 2013, is amended to read as follows: 7 A general contractor , or owner-builder who has contracted or 8 will contract with a subcontractor to provide labor or furnish 9 material for the property , shall post a notice of commencement 10 of work to the mechanics’ notice and lien registry internet 11 website within no later than ten days of after commencement 12 of work on the property. A notice of commencement of work is 13 effective only as to any labor, service, equipment, or material 14 furnished to the property subsequent to the posting of the 15 notice of commencement of work. A notice of commencement of 16 work shall include all of the following information: 17 Sec. 3. Section 572.13A, subsection 1, paragraph f, Code 18 2013, is amended to read as follows: 19 f. The tax parcel identification number required by law to 20 be assigned to the property for real estate tax administration 21 purposes . 22 Sec. 4. Section 572.13B, subsection 1, paragraph i, Code 23 2013, is amended to read as follows: 24 i. The tax parcel identification number required by law to 25 be assigned to the property for real estate tax administration 26 purposes . 27 Sec. 5. Section 572.22, subsection 6, Code 2013, is amended 28 to read as follows: 29 6. The tax parcel identification number of the property to 30 be charged required by law to be assigned to the property for 31 real estate tax administration purposes . 32 Sec. 6. Section 572.23, Code 2013, is amended to read as 33 follows: 34 572.23 Acknowledgment of satisfaction of claim. 35 -1- LSB 2505YC (5) 85 rh/nh 1/ 5
H.F. _____ 1. When a mechanic’s lien is satisfied by payment of the 1 claim, the claimant shall acknowledge post to the mechanics’ 2 notice and lien registry an acknowledgment of satisfaction 3 thereof of claim and, if the claimant neglects to do so for 4 thirty days after demand in writing is personally served upon 5 the claimant, the claimant shall forfeit and pay twenty-five 6 dollars to the owner, general contractor, or owner-builder and 7 be liable to any person injured to the extent of the injury. 8 2. If satisfaction is not acknowledged an acknowledgment of 9 satisfaction of claim is not posted to the mechanics’ notice 10 and lien registry within thirty days after service of the 11 demand in writing, the party serving the demand or causing the 12 demand to be served may file for record with the administrator 13 post to the mechanics’ notice and lien registry a copy of 14 the demand with proofs of service attached and endorsed and, 15 in case of service by publication, a personal affidavit that 16 personal service could not be made within this state. Upon 17 completion of the requirements of this subsection , the record 18 posting shall be constructive notice to all parties of the 19 due forfeiture and cancellation of the lien. Upon the filing 20 posting of the demand with the required attachments, the 21 administrator shall mail a date-stamped copy of the demand to 22 both parties. 23 Sec. 7. NEW SECTION . 572.23A Partial satisfaction of money 24 debt after posting notice. 25 1. A general contractor or subcontractor shall post an 26 acknowledgment of partial satisfaction of a money debt to the 27 mechanics’ notice and lien registry for material, labor, and 28 equipment furnished by the general contractor or subcontractor. 29 2. If an acknowledgment of partial satisfaction pursuant 30 to subsection 1 is not posted to the mechanic’s notice and 31 lien registry within thirty days after receipt of written 32 demand from the owner, general contractor, or owner-builder, 33 the owner, general contractor, or owner-builder may post an 34 acknowledgment of partial satisfaction of the money debt and a 35 -2- LSB 2505YC (5) 85 rh/nh 2/ 5
H.F. _____ copy of the written demand to the mechanics’ notice and lien 1 registry. 2 3. This section applies in situations where the required 3 notices pursuant to sections 572.13A and 572.13B have been 4 posted to the mechanics’ notice and lien registry but a 5 mechanic’s lien has not been posted. 6 Sec. 8. Section 572.34, subsections 3, 7, 8, and 9, Code 7 2013, are amended to read as follows: 8 3. a. The administrator shall index the legal descriptions 9 of the properties for which notices and liens are posted to 10 the registry. For the purpose of performing a search of the 11 registry the legal description shall be the controlling index 12 category. 13 b. The registry shall be indexed by owner name, general 14 contractor name, mechanics’ notice and lien registry number, 15 property address, legal description, tax parcel identification 16 number required by law to be assigned to the property for real 17 estate tax administration purposes , and any other identifier 18 considered appropriate as determined by the administrator 19 pursuant to rule. 20 7. Notices may shall be posted to the mechanics’ notice and 21 lien registry electronically on the administrator’s internet 22 website , or may be sent to the administrator for posting 23 by United States mail or facsimile transmission, or other 24 alternate method as provided by the administrator pursuant to 25 rule. Notices received by United States mail or facsimile 26 transmission shall be posted by the administrator to the 27 mechanics’ notice and lien registry within three business days 28 of receipt . 29 8. Mechanics’ liens may shall be posted to the mechanics’ 30 notice and lien registry electronically on the administrator’s 31 internet website or may be sent to the administrator for 32 posting by United States mail. Liens received by United States 33 mail shall be posted by the administrator to the mechanics’ 34 notice and lien registry within three business days of receipt . 35 -3- LSB 2505YC (5) 85 rh/nh 3/ 5
H.F. _____ 9. The administrator shall send a receipt acknowledging a 1 notice or lien submitted by United States mail or facsimile 2 transmission, as provided by the administrator by rule. The 3 posting of a notice or a lien to the mechanics’ notice and lien 4 registry internet website pursuant to this chapter, along with 5 the tender of the requisite filing fees and the sending of an 6 acknowledgment receipt by the administrator, is equivalent to a 7 filing and recording of the appropriate notice or lien in the 8 county in which the real estate is located. 9 EXPLANATION 10 This bill concerns mechanic’s liens and the mechanics’ 11 notice and lien registry. 12 The bill amends provisions relating to certain property 13 information required for precommencement and preliminary 14 notices. 15 The bill provides that when a mechanic’s lien is satisfied 16 by payment of the claim, the claimant must acknowledge 17 satisfaction by posting an acknowledgment of the satisfaction 18 to the registry. If such an acknowledgment is not posted to 19 the registry within 30 days after service of the demand in 20 writing, the party serving the demand may post a copy of the 21 demand to the registry. 22 The bill provides that a general contractor or subcontractor 23 shall post an acknowledgment of partial satisfaction of a money 24 debt to the mechanics’ notice and lien registry for material, 25 labor, and equipment furnished by the general contractor or 26 subcontractor. If an acknowledgment of partial satisfaction 27 is not posted to the registry within 30 days after receipt 28 of written demand from the owner, general contractor, or 29 owner-builder, the owner, general contractor, or owner-builder 30 may post an acknowledgment of partial satisfaction of the money 31 debt and a copy of the written demand to the mechanics’ notice 32 and lien registry. This provision applies in situations where 33 the required notices pursuant to Code sections 572.13A and 34 572.13B have been posted to the mechanics’ notice and lien 35 -4- LSB 2505YC (5) 85 rh/nh 4/ 5
H.F. _____ registry but a mechanic’s lien has not been posted. 1 The bill requires the administrator to index the legal 2 descriptions of the properties for which notices and liens are 3 posted to the registry. 4 The bill provides that precommencement and preliminary 5 notices and mechanic’s liens shall be posted to the mechanics’ 6 notice and lien registry electronically on the administrator’s 7 internet website. 8 The bill provides that the posting of a notice or a lien 9 to the mechanics’ notice and lien registry internet website 10 along with the requisite filing fees and the sending of an 11 acknowledgment receipt by the administrator is equivalent to a 12 filing and recording of the appropriate notice or lien in the 13 county in which the real estate is located. 14 -5- LSB 2505YC (5) 85 rh/nh 5/ 5