House
File
2477
-
Reprinted
HOUSE
FILE
2477
BY
COMMITTEE
ON
JUDICIARY
(SUCCESSOR
TO
HSB
559)
(As
Amended
and
Passed
by
the
House
March
3,
2010
)
A
BILL
FOR
An
Act
relating
to
mechanics’
liens
including
the
establishment
1
of
a
state
construction
registry
for
residential
2
construction
property
and
providing
an
effective
date.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
HF
2477
(6)
83
rh/nh/mb
H.F.
2477
Section
1.
Section
572.1,
Code
2009,
is
amended
to
read
as
1
follows:
2
572.1
Definitions
and
rules
of
construction.
3
For
the
purpose
of
this
chapter:
4
1.
“Authority”
means
the
Iowa
finance
authority
established
5
in
section
16.2.
6
1.
2.
“Building”
shall
be
construed
as
if
followed
by
the
7
words
“erection,
or
other
improvement
upon
land”.
8
3.
“General
contractor”
includes
every
person
who
does
work
9
or
furnishes
materials
by
contract,
express
or
implied,
with
an
10
owner.
“General
contractor”
does
not
include
a
person
who
does
11
work
or
furnishes
materials
on
contract
with
an
owner-builder.
12
2.
4.
“Labor”
means
labor
completed
by
the
claimant.
13
3.
5.
“Material”
shall
,
in
addition
to
its
ordinary
14
meaning,
include
includes
machinery,
tools,
fixtures,
trees,
15
evergreens,
vines,
plants,
shrubs,
tubers,
bulbs,
hedges,
16
bushes,
sod,
soil,
dirt,
mulch,
peat,
fertilizer,
fence
wire,
17
fence
material,
fence
posts,
tile,
and
the
use
of
forms,
18
accessories,
and
equipment
furnished
by
the
claimant.
19
4.
6.
“Owner”
means
the
record
legal
or
equitable
20
titleholder
and
every
person
for
whose
use
or
benefit
any
21
building,
erection,
or
other
improvement
is
made,
having
the
22
capacity
to
contract,
including
guardians
of
record
.
23
5.
“Owner-occupied
dwelling”
means
the
homestead
of
an
24
owner,
as
defined
in
section
561.1
,
and
without
respect
to
the
25
value
limitations
in
section
561.3
,
and
actually
occupied
by
26
the
owner
or
the
spouse
of
the
owner,
or
both.
“Owner-occupied
27
dwelling”
includes
a
newly
constructed
dwelling
to
be
occupied
28
by
the
owner
as
a
homestead,
or
a
dwelling
that
is
under
29
construction
and
being
built
by
or
for
an
owner
who
will
occupy
30
the
dwelling
as
a
homestead.
31
7.
“Owner-builder”
means
the
legal
or
equitable
titleholder
32
of
record
who
furnishes
material
or
performs
labor
upon
a
33
building,
erection,
or
other
improvement
and
who
offers
or
34
intends
to
offer
to
sell
the
owner-builder’s
property
without
35
-1-
HF
2477
(6)
83
rh/nh/mb
1/
16
H.F.
2477
occupying
or
using
the
structures,
properties,
developments,
1
or
improvements
for
a
period
of
more
than
one
year
from
the
2
date
the
structure,
property,
development,
or
improvement
is
3
substantially
completed
or
abandoned.
4
8.
“Residential
construction”
means
construction
on
5
single-family
or
two-family
dwellings
occupied
or
used,
or
6
intended
to
be
occupied
or
used,
primarily
for
residential
7
purposes,
and
includes
real
property
pursuant
to
chapter
499B.
8
9.
“State
construction
registry”
means
a
centralized
9
computer
database
maintained
and
posted
on
the
internet
by
10
the
authority
that
provides
a
central
repository
for
the
11
submission
and
management
of
preliminary
notices
and
notices
12
of
commencement
of
work
on
all
residential
construction
13
properties.
14
10.
“State
construction
registry
number”
means
a
number
15
provided
by
the
authority
for
all
construction
properties
16
posted
to
the
state
construction
registry.
17
6.
11.
“Subcontractor”
shall
include
includes
every
person
18
furnishing
material
or
performing
labor
upon
any
building,
19
erection,
or
other
improvement,
except
those
having
contracts
20
directly
with
the
owner.
“Subcontractor”
shall
include
those
21
persons
having
contracts
directly
with
an
owner-builder.
22
Sec.
2.
Section
572.2,
Code
2009,
is
amended
to
read
as
23
follows:
24
572.2
Persons
entitled
to
lien.
25
1.
Every
person
who
shall
furnish
furnishes
any
material
26
or
labor
for,
or
perform
performs
any
labor
upon,
any
building
27
or
land
for
improvement,
alteration,
or
repair
thereof,
28
including
those
engaged
in
the
construction
or
repair
of
any
29
work
of
internal
or
external
improvement,
and
those
engaged
30
in
grading,
sodding,
installing
nursery
stock,
landscaping,
31
sidewalk
building,
fencing
on
any
land
or
lot,
by
virtue
of
any
32
contract
with
the
owner,
owner-builder,
general
contractor,
33
or
subcontractor
shall
have
a
lien
upon
such
building
or
34
improvement,
and
land
belonging
to
the
owner
on
which
the
same
35
-2-
HF
2477
(6)
83
rh/nh/mb
2/
16
H.F.
2477
is
situated
or
upon
the
land
or
lot
so
graded,
landscaped,
1
fenced,
or
otherwise
improved,
altered,
or
repaired,
to
secure
2
payment
for
the
material
or
labor
furnished
or
labor
performed.
3
2.
If
material
is
rented
by
a
person
to
the
owner,
4
general
contractor,
or
subcontractor,
the
person
shall
have
a
5
lien
upon
such
building,
improvement,
or
land
to
secure
payment
6
for
the
material
rental.
The
lien
is
for
the
reasonable
rental
7
value
during
the
period
of
actual
use
of
the
material
and
any
8
reasonable
periods
of
nonuse
of
the
material
taken
into
account
9
in
the
rental
agreement.
The
delivery
of
material
to
such
10
building,
improvement,
or
land,
whether
or
not
delivery
is
made
11
by
the
person,
creates
a
presumption
that
the
material
was
12
used
in
the
course
of
alteration,
construction,
or
repair
of
13
the
building,
improvement,
or
land.
However,
this
presumption
14
shall
not
pertain
to
recoveries
sought
under
a
surety
bond.
15
3.
An
owner-builder
is
not
entitled
to
a
lien
under
16
this
chapter
as
to
work
the
owner-builder
performs,
or
is
17
contractually
obligated
to
perform,
prior
to
transferring
title
18
to
the
buyer.
19
Sec.
3.
Section
572.8,
subsection
1,
Code
2009,
is
amended
20
by
adding
the
following
new
paragraph:
21
NEW
PARAGRAPH
.
d.
The
address
of
the
property
or
a
22
description
of
the
location
of
the
property.
23
Sec.
4.
Section
572.9,
Code
2009,
is
amended
to
read
as
24
follows:
25
572.9
Time
of
filing.
26
The
statement
of
account
required
by
section
572.8
shall
27
be
filed
by
a
principal
general
contractor
or
subcontractor
28
within
two
years
and
ninety
days
after
the
date
on
which
the
29
last
of
the
material
was
furnished
or
the
last
of
the
labor
was
30
performed.
31
Sec.
5.
Section
572.10,
Code
2009,
is
amended
to
read
as
32
follows:
33
572.10
Perfecting
lien
after
lapse
of
ninety
days.
34
A
general
contractor
or
a
subcontractor
may
perfect
a
35
-3-
HF
2477
(6)
83
rh/nh/mb
3/
16
H.F.
2477
mechanic’s
lien
pursuant
to
section
572.8
beyond
ninety
days
1
after
the
date
on
which
the
last
of
the
material
was
furnished
2
or
the
last
of
the
labor
was
performed
by
filing
a
claim
with
3
the
clerk
of
the
district
court
and
giving
written
notice
4
thereof
to
the
owner.
Such
notice
may
be
served
by
any
person
5
in
the
manner
original
notices
are
required
to
be
served.
6
If
the
party
to
be
served
is
out
of
the
county
wherein
the
7
property
is
situated,
a
return
of
that
fact
by
the
person
8
charged
with
making
such
service
shall
constitute
sufficient
9
service
from
and
after
the
time
it
was
filed
with
the
clerk
of
10
the
district
court.
11
Sec.
6.
Section
572.11,
Code
2009,
is
amended
to
read
as
12
follows:
13
572.11
Extent
of
lien
filed
after
ninety
days.
14
Liens
perfected
under
section
572.10
shall
be
enforced
15
against
the
property
or
upon
the
bond,
if
given,
by
the
owner
16
or
owner-builder
,
only
to
the
extent
of
the
balance
due
from
17
the
owner
to
the
general
contractor
or
owner-builder
at
the
18
time
of
the
service
of
such
notice;
but
if
the
bond
was
given
by
19
the
general
contractor
or
owner-builder
,
or
person
contracting
20
with
the
subcontractor
filing
the
claim
for
a
lien,
such
bond
21
shall
be
enforced
to
the
full
extent
of
the
amount
found
due
22
the
subcontractor.
23
Sec.
7.
Section
572.13,
Code
2009,
is
amended
by
striking
24
the
section
and
inserting
in
lieu
thereof
the
following:
25
572.13
General
contractor
——
owner
notice
——
residential
26
construction.
27
1.
A
general
contractor
who
has
contracted
or
will
contract
28
with
a
subcontractor
to
provide
labor
or
furnish
material
for
29
the
property
shall
provide
the
owner
with
the
following
owner
30
notice
in
writing
in
boldface
type
of
a
minimum
size
of
ten
31
points:
32
“Persons
or
companies
furnishing
labor
or
materials
for
33
the
improvement
of
real
property
may
enforce
a
lien
upon
the
34
improved
property
if
they
are
not
paid
for
their
contributions,
35
-4-
HF
2477
(6)
83
rh/nh/mb
4/
16
H.F.
2477
even
if
the
parties
have
no
direct
contractual
relationship
1
with
the
owner.
The
state
construction
registry
provides
2
a
listing
of
all
persons
or
companies
furnishing
labor
or
3
materials
who
may
file
a
lien
upon
the
improved
property.
4
If
the
person
or
company
has
posted
its
notice
to
the
state
5
construction
registry,
you
may
be
required
to
pay
the
person
or
6
company
even
if
you
have
paid
the
general
contractor
the
full
7
amount
due.
Therefore,
check
the
state
construction
registry
8
internet
website
for
information
about
the
property
including
9
persons
or
companies
furnishing
labor
or
materials
before
10
paying
your
general
contractor.
In
addition,
when
making
11
payment
to
your
general
contractor,
it
is
important
to
obtain
12
lien
waivers
from
your
general
contractor
and
from
persons
or
13
companies
furnishing
labor
or
materials
to
your
property.
The
14
information
in
the
state
construction
registry
is
posted
on
the
15
internet
website
of
the
Iowa
finance
authority.”
16
2.
The
notice
described
in
subsection
1
shall
also
contain
17
the
internet
website
address
and
toll-free
telephone
number
of
18
the
state
construction
registry.
19
3.
A
general
contractor
who
fails
to
provide
notice
pursuant
20
to
this
section
is
not
entitled
to
a
lien
and
remedy
provided
21
by
this
chapter.
22
4.
This
section
applies
only
to
residential
construction
23
properties.
24
Sec.
8.
NEW
SECTION
.
572.13A
Notice
of
commencement
of
work
25
——
general
contractor
——
owner-builder.
26
1.
A
general
contractor
or
owner-builder
shall
submit
27
a
notice
of
commencement
of
work
to
the
authority
or
post
28
a
notice
of
commencement
of
work
to
the
state
construction
29
registry
internet
website
within
ten
days
of
commencement
of
30
work
on
the
property.
A
notice
of
commencement
of
work
is
31
effective
only
as
to
any
labor,
service,
equipment,
or
material
32
furnished
to
the
property
subsequent
to
the
posting
of
the
33
notice
of
commencement
of
work.
A
notice
of
commencement
of
34
work
shall
include
all
of
the
following
information:
35
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a.
The
name
and
address
of
the
property
owner.
1
b.
The
name
and
address
of
the
general
contractor
or
2
owner-builder.
3
c.
The
address
of
the
property
if
the
property
can
be
4
reasonably
identified
by
an
address
or
the
name
and
a
general
5
description
of
the
location
of
the
property
if
the
property
6
cannot
be
reasonably
identified
by
an
address.
7
d.
A
legal
description
of
the
property.
8
e.
The
date
work
commenced.
9
f.
Any
other
information
prescribed
by
the
authority
10
pursuant
to
rule.
11
2.
If
a
general
contractor
or
owner-builder
fails
to
submit
12
a
notice
of
commencement
of
work
to
the
authority
or
fails
to
13
post
the
required
notice
of
commencement
of
work
to
the
state
14
construction
registry
internet
website
pursuant
to
subsection
15
1,
within
ten
days
of
commencement
of
the
work
on
the
property,
16
a
subcontractor
may
submit
or
post
the
notice
in
conjunction
17
with
the
filing
of
the
required
preliminary
notice
pursuant
to
18
section
572.13B.
19
3.
At
the
time
a
notice
of
commencement
of
work
is
posted
on
20
the
state
construction
registry
internet
website,
the
authority
21
shall
send
a
copy
of
the
owner
notice
described
in
section
22
572.13
along
with
other
relevant
information
to
the
owner
and
23
to
the
property
address,
addressed
to
“owner”,
as
prescribed
by
24
the
authority
pursuant
to
rule.
25
4.
A
general
contractor
who
fails
to
provide
notice
pursuant
26
to
this
section
is
not
entitled
to
a
lien
and
remedy
provided
27
by
this
chapter.
28
5.
This
section
applies
only
to
residential
construction
29
properties.
30
Sec.
9.
NEW
SECTION
.
572.13B
Preliminary
notice
——
31
subcontractor
——
residential
construction.
32
1.
A
subcontractor
shall
submit
a
preliminary
notice
33
to
the
authority
or
post
a
preliminary
notice
to
the
state
34
construction
registry
internet
website.
A
preliminary
notice
35
-6-
HF
2477
(6)
83
rh/nh/mb
6/
16
H.F.
2477
posted
prior
to
the
balance
paid
to
the
general
contractor
1
or
owner-builder
by
the
owner
is
effective
as
to
all
labor,
2
service,
equipment,
and
material
furnished
to
the
property
by
3
the
subcontractor.
The
preliminary
notice
shall
contain
all
4
of
the
following
information:
5
a.
The
name
of
the
owner.
6
b.
The
state
construction
registry
number.
7
c.
The
name,
address,
and
telephone
number
of
the
8
subcontractor
furnishing
the
labor,
service,
equipment,
or
9
material.
10
d.
The
name
and
address
of
the
person
who
contracted
11
with
the
claimant
for
the
furnishing
of
the
labor,
service,
12
equipment,
or
material.
13
e.
The
name
of
the
general
contractor
or
owner-builder
under
14
which
the
claimant
is
performing
or
will
perform
the
work.
15
f.
The
address
of
the
property
or
a
description
of
the
16
location
of
the
property.
17
g.
Any
other
information
required
by
the
authority
pursuant
18
to
rule.
19
2.
a.
A
mechanic’s
lien
perfected
under
this
chapter
20
is
enforceable
only
to
the
extent
of
the
balance
due
the
21
general
contractor
or
owner-builder
prior
to
the
posting
of
a
22
preliminary
notice
specified
in
subsection
1.
23
b.
Except
for
residential
construction
property
owned
24
by
an
owner-builder,
a
mechanic’s
lien
perfected
under
this
25
chapter
is
enforceable
only
to
the
extent
of
the
balance
due
26
the
general
contractor
at
the
time
the
owner
actually
receives
27
the
notice
sent
pursuant
to
subsection
3.
28
c.
In
any
action
to
enforce
a
mechanic’s
lien
perfected
29
under
this
chapter
against
the
owner,
the
subcontractor
bears
30
the
burden
to
prove
by
a
preponderance
of
the
evidence
that
the
31
owner
actually
received
notice
pursuant
to
subsection
3.
32
3.
At
the
time
a
preliminary
notice
is
posted
to
the
state
33
construction
registry,
the
authority
shall
send
notification
34
to
the
owner
as
prescribed
by
the
authority
pursuant
to
35
-7-
HF
2477
(6)
83
rh/nh/mb
7/
16
H.F.
2477
rule,
including
the
owner
notice
described
in
section
572.13,
1
subsection
1.
Notices
under
this
section
will
not
be
sent
2
to
owner-builders.
For
purposes
of
satisfying
the
notice
3
requirement
in
subsection
2,
concerning
actual
receipt
of
such
4
notice,
a
subcontractor
may
provide
a
separate
notice
directly
5
to
the
owner.
6
4.
A
subcontractor
who
fails
to
submit
or
post
a
preliminary
7
notice
pursuant
to
this
section
shall
not
be
entitled
to
a
lien
8
and
remedy
provided
under
this
chapter.
9
5.
This
section
applies
only
to
residential
construction
10
properties.
11
Sec.
10.
Section
572.14,
Code
2009,
is
amended
by
striking
12
the
section
and
inserting
in
lieu
thereof
the
following:
13
572.14
Liability
to
subcontractor
after
payment
to
general
14
contractor
or
owner-builder.
15
Except
as
provided
in
section
572.13B,
payment
to
the
16
general
contractor
or
owner-builder
by
the
owner
of
any
part
or
17
all
of
the
contract
price
of
the
building
or
improvement
within
18
ninety
days
after
the
date
on
which
the
last
of
the
materials
19
was
furnished
or
the
last
of
the
labor
was
performed
by
a
20
subcontractor,
does
not
relieve
the
owner
from
liability
to
the
21
subcontractor
for
the
full
value
of
any
material
furnished
or
22
labor
performed
upon
the
building,
land,
or
improvement
if
the
23
subcontractor
files
a
lien
within
ninety
days
after
the
date
24
on
which
the
last
of
the
materials
was
furnished
or
the
last
of
25
the
labor
was
performed.
26
Sec.
11.
Section
572.15,
Code
2009,
is
amended
to
read
as
27
follows:
28
572.15
Discharge
of
subcontractor’s
mechanic’s
lien
——
bond.
29
A
mechanic’s
lien
may
be
discharged
at
any
time
by
the
owner,
30
principal
contractor,
or
intermediate
subcontractor
filing
with
31
the
clerk
of
the
district
court
of
the
county
in
which
the
32
property
is
located
a
bond
in
twice
the
amount
of
the
sum
for
33
which
the
claim
for
the
lien
is
filed,
with
surety
or
sureties,
34
to
be
approved
by
the
clerk,
conditioned
for
the
payment
of
any
35
-8-
HF
2477
(6)
83
rh/nh/mb
8/
16
H.F.
2477
sum
for
which
the
claimant
may
obtain
judgment
upon
the
claim.
1
Sec.
12.
Section
572.16,
Code
2009,
is
amended
to
read
as
2
follows:
3
572.16
Rule
of
construction.
4
Nothing
in
this
chapter
shall
be
construed
to
require
5
the
owner
to
pay
a
greater
amount
or
at
an
earlier
6
date
than
is
provided
in
the
owner’s
contract
with
the
7
principal
general
contractor,
unless
said
the
owner
pays
a
part
8
or
all
of
the
contract
price
to
the
original
general
contractor
9
before
the
expiration
of
the
ninety
days
allowed
by
law
for
10
the
filing
of
a
mechanic’s
lien
by
a
subcontractor;
provided
11
that
in
the
case
of
an
owner-occupied
dwelling
residential
12
construction
,
nothing
in
this
chapter
shall
be
construed
to
13
require
the
owner
to
pay
a
greater
amount
or
at
an
earlier
14
date
than
is
provided
in
the
owner’s
contract
with
the
15
principal
general
contractor,
unless
the
owner
pays
a
part
or
16
all
of
the
contract
price
to
the
principal
general
contractor
17
after
receipt
of
notice
under
section
572.14,
subsection
2
a
18
preliminary
notice
has
been
posted
to
the
state
construction
19
registry
internet
website
pursuant
to
section
572.13B
.
20
Sec.
13.
Section
572.17,
Code
2009,
is
amended
to
read
as
21
follows:
22
572.17
Priority
of
mechanics’
liens
between
mechanics.
23
Mechanics’
liens
shall
have
priority
over
each
other
in
24
the
order
of
the
filing
of
the
statements
or
of
accounts
as
25
herein
provided
in
section
572.8
.
26
Sec.
14.
Section
572.18,
subsections
1
and
3,
Code
2009,
are
27
amended
to
read
as
follows:
28
1.
Mechanics’
liens
filed
by
a
principal
general
contractor
29
or
subcontractor
within
ninety
days
after
the
date
on
which
30
the
last
of
the
material
was
furnished
or
the
last
of
the
31
claimant’s
labor
was
performed
and
for
which
notices
were
32
properly
submitted
or
posted
to
the
state
construction
registry
33
internet
website
pursuant
to
sections
572.13A
and
572.13B
shall
34
be
superior
to
all
other
liens
which
may
attach
to
or
upon
35
-9-
HF
2477
(6)
83
rh/nh/mb
9/
16
H.F.
2477
a
building
or
improvement
and
to
the
land
upon
which
it
is
1
situated,
except
liens
of
record
prior
to
the
time
of
the
2
original
commencement
of
the
claimant’s
work
or
the
claimant’s
3
improvements,
except
as
provided
in
subsection
2.
4
3.
The
rights
of
purchasers,
encumbrancers,
and
other
5
persons
who
acquire
interests
in
good
faith,
for
a
valuable
6
consideration,
and
without
notice
of
a
lien
perfected
7
pursuant
to
this
chapter,
are
superior
to
the
claims
of
all
8
general
contractors
or
subcontractors
who
have
perfected
their
9
liens
more
than
ninety
days
after
the
date
on
which
the
last
10
of
the
claimant’s
material
was
furnished
or
the
last
of
the
11
claimant’s
labor
was
performed.
12
Sec.
15.
Section
572.22,
unnumbered
paragraph
1,
Code
2009,
13
is
amended
to
read
as
follows:
14
The
clerk
of
the
court
shall
endorse
upon
every
claim
for
15
a
mechanic’s
lien
filed
in
the
clerk’s
office
the
date
and
16
hour
of
filing
and
make
an
abstract
thereof
in
the
mechanic’s
17
lien
book
kept
for
that
purpose.
Said
book
shall
be
properly
18
indexed
and
index
every
claim
in
the
office
of
the
clerk
of
the
19
county
where
such
real
estate
is
situated.
Each
claim
shall
20
contain
the
following
items
concerning
each
claim
:
21
Sec.
16.
Section
572.23,
subsection
1,
Code
2009,
is
amended
22
to
read
as
follows:
23
1.
When
a
mechanic’s
lien
is
satisfied
by
payment
of
the
24
claim,
the
claimant
shall
acknowledge
satisfaction
thereof
upon
25
the
mechanic’s
lien
book,
or
otherwise
in
writing,
and,
if
the
26
claimant
neglects
to
do
so
for
thirty
days
after
demand
in
27
writing
is
personally
served
upon
the
claimant,
the
claimant
28
shall
forfeit
and
pay
twenty-five
dollars
to
the
owner
or
29
general
contractor
or
owner-builder
,
and
be
liable
to
any
30
person
injured
to
the
extent
of
the
injury.
31
Sec.
17.
Section
572.30,
Code
2009,
is
amended
to
read
as
32
follows:
33
572.30
Action
by
subcontractor
or
owner
against
general
34
contractor
or
owner-builder
.
35
-10-
HF
2477
(6)
83
rh/nh/mb
10/
16
H.F.
2477
Unless
otherwise
agreed,
a
principal
general
contractor
1
or
owner-builder
who
engages
a
subcontractor
to
supply
2
labor
or
materials
or
both
for
improvements,
alterations
or
3
repairs
to
a
specific
owner-occupied
dwelling
residential
4
construction
property
shall
pay
the
subcontractor
in
full
for
5
all
labor
and
materials
supplied
within
thirty
days
after
the
6
date
the
principal
general
contractor
or
owner-builder
receives
7
full
payment
from
the
owner.
If
a
principal
general
contractor
8
or
owner-builder
fails
without
due
cause
to
pay
a
subcontractor
9
as
required
by
this
section,
the
subcontractor,
or
the
10
owner
by
subrogation,
may
commence
an
action
against
the
11
general
contractor
or
owner-builder
to
recover
the
amount
12
due.
Prior
to
commencing
an
action
to
recover
the
amount
13
due,
a
subcontractor,
or
the
owner
by
subrogation,
shall
give
14
notice
of
nonpayment
of
the
cost
of
labor
or
materials
to
15
the
principal
general
contractor
or
owner-builder
paid
for
16
the
improvement.
Notice
of
nonpayment
must
be
in
writing,
17
delivered
in
a
reasonable
manner,
and
in
terms
that
reasonably
18
identify
the
real
estate
improved
and
the
nonpayment
complained
19
of.
In
an
action
to
recover
the
amount
due
a
subcontractor,
20
or
the
owner
by
subrogation,
under
this
section,
the
court
21
in
addition
to
actual
damages,
shall
award
a
successful
22
plaintiff
exemplary
damages
against
the
general
contractor
23
or
owner-builder
in
an
amount
not
less
than
one
percent
24
and
not
exceeding
fifteen
percent
of
the
amount
due
the
25
subcontractor,
or
the
owner
by
subrogation,
for
the
labor
and
26
materials
supplied,
unless
the
principal
general
contractor
or
27
owner-builder
does
one
or
both
of
the
following,
in
which
case
28
no
exemplary
damages
shall
be
awarded:
29
1.
Establishes
that
all
proceeds
received
from
the
person
30
making
the
payment
have
been
applied
to
the
cost
of
labor
or
31
material
furnished
for
the
improvement.
32
2.
Within
fifteen
days
after
receiving
notice
of
nonpayment
33
the
principal
general
contractor
or
owner-builder
gives
34
a
bond
or
makes
a
deposit
with
the
clerk
of
the
district
35
-11-
HF
2477
(6)
83
rh/nh/mb
11/
16
H.F.
2477
court,
in
an
amount
not
less
than
the
amount
necessary
1
to
satisfy
the
nonpayment
for
which
notice
has
been
given
2
under
this
section,
and
in
a
form
approved
by
a
judge
of
the
3
district
court,
to
hold
harmless
the
owner
or
person
having
4
the
improvement
made
from
any
claim
for
payment
of
anyone
5
furnishing
labor
or
material
for
the
improvement,
other
than
6
the
principal
general
contractor
or
owner-builder
.
7
Sec.
18.
Section
572.31,
Code
2009,
is
amended
to
read
as
8
follows:
9
572.31
Co-operative
Cooperative
and
condominium
housing.
10
A
lien
arising
under
this
chapter
as
a
result
of
the
11
construction
of
an
apartment
house
or
apartment
building
which
12
is
owned
on
a
co-operative
cooperative
basis
under
chapter
13
499A,
or
which
is
submitted
to
a
horizontal
property
regime
14
under
chapter
499B,
is
not
enforceable,
notwithstanding
any
15
contrary
provision
of
this
chapter,
as
against
the
interests
16
of
an
owner
in
an
owner-occupied
dwelling
a
unit
contained
in
17
the
apartment
house
or
apartment
building
acquired
in
good
18
faith
and
for
valuable
consideration,
unless
a
lien
statement
19
specifically
describing
the
dwelling
unit
is
filed
under
20
section
572.8
within
the
applicable
time
period
specified
in
21
section
572.9,
but
determined
from
the
date
on
which
the
last
22
of
the
material
was
supplied
or
the
last
of
the
labor
was
23
performed
in
the
construction
of
that
dwelling
unit.
24
Sec.
19.
Section
572.32,
subsection
2,
Code
2009,
is
amended
25
to
read
as
follows:
26
2.
In
a
court
action
to
challenge
a
mechanic’s
lien
filed
on
27
an
owner-occupied
dwelling
a
residential
construction
property
,
28
if
the
person
challenging
the
lien
prevails,
the
court
may
29
award
reasonable
attorney
fees
and
actual
damages.
If
the
30
court
determines
that
the
mechanic’s
lien
was
filed
in
bad
31
faith
or
the
supporting
affidavit
was
materially
false,
the
32
court
shall
award
the
owner
reasonable
attorney
fees
plus
an
33
amount
not
less
than
five
hundred
dollars
or
the
amount
of
the
34
lien,
whichever
is
less.
35
-12-
HF
2477
(6)
83
rh/nh/mb
12/
16
H.F.
2477
Sec.
20.
Section
572.33,
Code
2009,
is
amended
to
read
as
1
follows:
2
572.33
Requirement
of
notification
for
commercial
3
construction
.
4
1.
The
notification
requirements
in
this
section
apply
only
5
to
commercial
construction.
6
1.
2.
A
person
furnishing
labor
or
materials
to
a
7
subcontractor
shall
not
be
entitled
to
a
lien
under
this
8
chapter
unless
the
person
furnishing
labor
or
materials
does
9
all
of
the
following:
10
a.
Notifies
the
principal
general
contractor
or
11
owner-builder
in
writing
with
a
one-time
notice
containing
12
the
name,
mailing
address,
and
telephone
number
of
the
13
person
furnishing
the
labor
or
materials,
and
the
name
of
the
14
subcontractor
to
whom
the
labor
or
materials
were
furnished,
15
within
thirty
days
of
first
furnishing
labor
or
materials
for
16
which
a
lien
claim
may
be
made.
Additional
labor
or
materials
17
furnished
by
the
same
person
to
the
same
subcontractor
for
18
use
in
the
same
construction
project
shall
be
covered
by
this
19
notice.
20
b.
Supports
the
lien
claim
with
a
certified
statement
that
21
the
principal
general
contractor
or
owner-builder
was
notified
22
in
writing
with
a
one-time
notice
containing
the
name,
mailing
23
address,
and
telephone
number
of
the
person
furnishing
the
24
labor
or
materials,
and
the
name
of
the
subcontractor
to
whom
25
the
labor
or
materials
were
furnished,
within
thirty
days
26
after
the
labor
or
materials
were
first
furnished,
pursuant
to
27
paragraph
“a”
.
28
2.
This
section
shall
not
apply
to
a
mechanic’s
lien
on
29
single-family
or
two-family
dwellings
occupied
or
used
or
30
intended
to
be
occupied
or
used
for
residential
purposes.
31
3.
Notwithstanding
other
provisions
of
this
chapter,
a
32
principal
general
contractor
or
owner-builder
shall
not
be
33
prohibited
from
requesting
information
from
a
subcontractor
34
or
a
person
furnishing
labor
or
materials
to
a
subcontractor
35
-13-
HF
2477
(6)
83
rh/nh/mb
13/
16
H.F.
2477
regarding
payments
made
or
payments
to
be
made
to
a
person
1
furnishing
labor
or
materials
to
a
subcontractor.
2
Sec.
21.
NEW
SECTION
.
572.33A
Liability
of
owner
to
general
3
contractor
——
commercial
construction.
4
An
owner
of
a
building,
land,
or
improvement
upon
which
5
a
mechanic’s
lien
of
a
subcontractor
may
be
filed,
is
not
6
required
to
pay
the
general
contractor
for
compensation
for
7
work
done
or
material
furnished
for
the
building,
land,
or
8
improvement
until
the
expiration
of
ninety
days
after
the
9
completion
of
the
building
or
improvement
unless
the
general
10
contractor
furnishes
to
the
owner
one
of
the
following:
11
1.
Receipts
and
waivers
of
claims
for
mechanics’
liens,
12
signed
by
all
persons
who
furnished
material
or
performed
labor
13
for
the
building,
land,
or
improvement.
14
2.
A
good
and
sufficient
bond
to
be
approved
by
the
owner,
15
conditioned
that
the
owner
shall
be
held
harmless
from
any
16
loss
which
the
owner
may
sustain
by
reason
of
the
filing
of
17
mechanics’
liens
by
subcontractors.
18
Sec.
22.
NEW
SECTION
.
572.34
State
construction
registry
19
——
residential
construction.
20
1.
A
state
construction
registry
is
created
within
the
21
authority.
The
authority
shall
adopt
rules
pursuant
to
chapter
22
17A
for
the
creation
and
administration
of
the
registry.
23
2.
The
state
construction
registry
shall
be
accessible
to
24
the
general
public
through
the
authority’s
internet
website.
25
3.
The
registry
shall
be
indexed
by
owner
name,
general
26
contractor
name,
state
construction
registry
number,
property
27
address,
legal
description,
and
any
other
identifier
considered
28
appropriate
as
determined
by
the
authority.
29
4.
A
general
contractor,
owner-builder,
or
subcontractor
30
who
posts
fictitious,
forged,
or
false
information
to
the
31
state
construction
registry
shall
be
subject
to
a
penalty
as
32
determined
by
the
authority
by
rule
in
addition
to
all
other
33
penalties
and
remedies
available
under
applicable
law.
34
5.
A
person
may
post
a
correction
statement
with
respect
to
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a
record
indexed
in
the
state
construction
registry
internet
1
website
if
the
person
believes
the
record
is
inaccurate
or
2
wrongfully
posted.
3
6.
The
authority
shall
charge
and
collect
fees
as
4
established
by
rule
necessary
for
the
administration
and
5
maintenance
of
the
registry
and
the
registry’s
internet
6
website.
The
authority
shall
not
charge
a
filing
fee
for
a
7
preliminary
notice
required
pursuant
to
this
chapter
that
8
exceeds
the
cost
of
sending
such
notice
by
certified
mail
with
9
restricted
delivery
and
return
receipt.
10
7.
A
state
construction
registry
fund
is
created
within
11
the
authority.
Moneys
collected
by
the
authority
pursuant
to
12
subsection
6
shall
be
for
the
maintenance
and
administration
13
of
the
state
construction
registry.
The
authority
shall
14
administer
the
registry
on
a
revenue
neutral
basis
and
shall
15
adjust
fees
on
an
annual
basis
to
prevent
the
accumulation
of
16
surplus
funds.
Section
8.33
does
not
apply
to
any
moneys
in
17
the
fund,
and
notwithstanding
section
12C.7,
subsection
2,
18
earnings
or
interest
on
moneys
deposited
in
the
fund
shall
be
19
credited
to
the
fund.
20
8.
Notices
may
be
posted
to
the
state
construction
registry
21
electronically
on
the
authority’s
internet
website,
or
may
22
be
sent
to
the
authority
by
United
States
mail,
facsimile
23
transmission,
or
other
alternate
method
as
provided
by
the
24
authority
pursuant
to
rule.
25
9.
The
authority
shall
send
a
receipt
acknowledging
a
notice
26
submitted
by
United
States
mail
or
facsimile
transmission,
as
27
provided
by
the
authority
by
rule.
28
10.
Information
collected
by
and
furnished
to
the
authority
29
in
conjunction
with
the
submission
and
posting
of
notices
30
pursuant
to
sections
572.13A
and
572.13B
shall
be
used
by
the
31
authority
solely
for
the
purposes
of
the
state
construction
32
registry.
33
11.
This
section
applies
only
to
residential
construction
34
properties.
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Sec.
23.
EFFECTIVE
DATE.
This
Act
takes
effect
July
1,
1
2011.
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