Bill Text: IA HF675 | 2011-2012 | 84th General Assembly | Enrolled
Bill Title: A bill for an act concerning mechanics' liens including the establishment of a state construction registry for residential construction property, and including effective date and applicability provisions. Effective 1-1-13.
Spectrum: Committee Bill
Status: (Passed) 2012-04-27 - Signed by Governor. H.J. 894. [HF675 Detail]
Download: Iowa-2011-HF675-Enrolled.html
House
File
675
AN
ACT
CONCERNING
MECHANICS’
LIENS
INCLUDING
THE
ESTABLISHMENT
OF
A
STATE
CONSTRUCTION
REGISTRY
FOR
RESIDENTIAL
CONSTRUCTION
PROPERTY,
AND
INCLUDING
EFFECTIVE
DATE
AND
APPLICABILITY
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
207.23,
subsection
1,
Code
2011,
is
amended
to
read
as
follows:
1.
Within
six
months
after
the
completion
of
a
project
to
restore,
reclaim,
abate,
control,
or
prevent
adverse
effects
of
past
coal
mining
practices
on
privately
owned
land,
the
division
shall
itemize
the
money
expended
on
the
project
and
may
file
a
lien
statement
in
the
manner
provided
in
section
572.8
in
the
office
of
the
district
court
clerk
of
each
county
in
which
a
portion
of
the
property
affected
by
the
project
is
located,
together
with
a
notarized
appraisal
by
an
independent
appraiser
of
the
value
of
the
land
before
the
restoration,
reclamation,
abatement,
control,
or
prevention
of
adverse
effects
of
past
mining
practices
if
the
money
so
expended
results
in
a
significant
increase
in
property
value.
A
copy
of
the
lien
statement
and
the
appraisal,
if
required,
shall
be
served
upon
affected
property
owners
in
the
manner
provided
for
service
of
an
original
notice.
The
lien
shall
not
exceed
the
amount
determined
by
the
appraiser
to
be
the
increase
in
the
market
value
of
the
land
as
a
result
of
the
restoration,
reclamation,
abatement,
control,
or
prevention
of
adverse
effects
of
past
coal
mining
practices.
A
lien
shall
not
be
filed
in
accordance
with
this
subsection
against
the
property
House
File
675,
p.
2
of
a
person
who
owned
the
surface
prior
to
May
2,
1977,
and
who
neither
consented
to,
participated
in,
nor
exercised
control
over
the
mining
operation
which
necessitated
the
reclamation
performed.
Sec.
2.
Section
572.1,
Code
2011,
is
amended
to
read
as
follows:
572.1
Definitions
and
rules
of
construction.
For
the
purpose
of
this
chapter
:
1.
“Administrator”
means
the
secretary
of
state.
1.
2.
“Building”
shall
be
construed
as
if
followed
by
the
words
“erection,
or
other
improvement
upon
land”.
3.
“General
contractor”
includes
every
person
who
does
work
or
furnishes
materials
by
contract,
express
or
implied,
with
an
owner.
“General
contractor”
does
not
include
a
person
who
does
work
or
furnishes
materials
on
contract
with
an
owner-builder.
2.
4.
“Labor”
means
labor
completed
by
the
claimant.
3.
5.
“Material”
shall
,
in
addition
to
its
ordinary
meaning,
include
includes
machinery,
tools,
fixtures,
trees,
evergreens,
vines,
plants,
shrubs,
tubers,
bulbs,
hedges,
bushes,
sod,
soil,
dirt,
mulch,
peat,
fertilizer,
fence
wire,
fence
material,
fence
posts,
tile,
and
the
use
of
forms,
accessories,
and
equipment
furnished
by
the
claimant.
4.
6.
“Owner”
means
the
record
legal
or
equitable
titleholder
and
every
person
for
whose
use
or
benefit
any
building,
erection,
or
other
improvement
is
made,
having
the
capacity
to
contract,
including
guardians
of
record
.
5.
“Owner-occupied
dwelling”
means
the
homestead
of
an
owner,
as
defined
in
section
561.1
,
and
without
respect
to
the
value
limitations
in
section
561.3
,
and
actually
occupied
by
the
owner
or
the
spouse
of
the
owner,
or
both.
“Owner-occupied
dwelling”
includes
a
newly
constructed
dwelling
to
be
occupied
by
the
owner
as
a
homestead,
or
a
dwelling
that
is
under
construction
and
being
built
by
or
for
an
owner
who
will
occupy
the
dwelling
as
a
homestead.
7.
“Owner-builder”
means
the
legal
or
equitable
titleholder
of
record
who
furnishes
material
for
or
performs
labor
upon
a
building,
erection,
or
other
improvement,
or
who
contracts
with
a
subcontractor
to
furnish
material
for
or
perform
labor
upon
a
building,
erection,
or
other
improvement
and
who
offers
or
intends
to
offer
to
sell
the
owner-builder’s
property
without
occupying
or
using
the
structures,
properties,
developments,
or
improvements
for
a
period
of
more
than
one
year
from
the
date
the
structure,
property,
development,
or
improvement
is
House
File
675,
p.
3
substantially
completed
or
abandoned.
8.
“Residential
construction”
means
construction
on
single-family
or
two-family
dwellings
occupied
or
used,
or
intended
to
be
occupied
or
used,
primarily
for
residential
purposes,
and
includes
real
property
pursuant
to
chapter
499B.
9.
“State
construction
registry”
means
a
centralized
computer
database
maintained
on
the
internet
by
the
administrator
that
provides
a
central
repository
for
the
submission
and
management
of
preliminary
notices,
notices
of
commencement
of
work
on
residential
construction
properties,
and
mechanics’
liens
on
all
construction
properties.
10.
“State
construction
registry
number”
means
a
number
provided
by
the
administrator
for
all
residential
construction
properties
posted
to
the
state
construction
registry.
6.
11.
“Subcontractor”
shall
include
includes
every
person
furnishing
material
or
performing
labor
upon
any
building,
erection,
or
other
improvement,
except
those
having
contracts
directly
with
the
owner.
“Subcontractor”
shall
include
those
persons
having
contracts
directly
with
an
owner-builder.
Sec.
3.
Section
572.2,
Code
2011,
is
amended
to
read
as
follows:
572.2
Persons
entitled
to
lien.
1.
Every
person
who
shall
furnish
furnishes
any
material
or
labor
for,
or
perform
performs
any
labor
upon,
any
building
or
land
for
improvement,
alteration,
or
repair
thereof,
including
those
engaged
in
the
construction
or
repair
of
any
work
of
internal
or
external
improvement,
and
those
engaged
in
grading,
sodding,
installing
nursery
stock,
landscaping,
sidewalk
building,
fencing
on
any
land
or
lot,
by
virtue
of
any
contract
with
the
owner,
owner-builder,
general
contractor,
or
subcontractor
shall
have
a
lien
upon
such
building
or
improvement,
and
land
belonging
to
the
owner
on
which
the
same
is
situated
or
upon
the
land
or
lot
so
graded,
landscaped,
fenced,
or
otherwise
improved,
altered,
or
repaired,
to
secure
payment
for
the
material
or
labor
furnished
or
labor
performed.
2.
If
material
is
rented
by
a
person
to
the
owner,
general
contractor,
or
subcontractor,
the
person
shall
have
a
lien
upon
such
building,
improvement,
or
land
to
secure
payment
for
the
material
rental.
The
lien
is
for
the
reasonable
rental
value
during
the
period
of
actual
use
of
the
material
and
any
reasonable
periods
of
nonuse
of
the
material
taken
into
account
in
the
rental
agreement.
The
delivery
of
material
to
such
building,
improvement,
or
land,
whether
or
not
delivery
is
made
House
File
675,
p.
4
by
the
person,
creates
a
presumption
that
the
material
was
used
in
the
course
of
alteration,
construction,
or
repair
of
the
building,
improvement,
or
land.
However,
this
presumption
shall
not
pertain
to
recoveries
sought
under
a
surety
bond.
3.
An
owner-builder
is
not
entitled
to
a
lien
under
this
chapter
as
to
work
the
owner-builder
performs,
or
is
contractually
obligated
to
perform,
prior
to
transferring
title
to
the
buyer.
Sec.
4.
Section
572.8,
Code
2011,
is
amended
to
read
as
follows:
572.8
Perfection
of
lien.
1.
A
person
shall
perfect
a
mechanic’s
lien
by
filing
with
the
clerk
of
the
district
court
of
the
county
in
which
the
building,
land,
or
improvement
to
be
charged
with
the
lien
is
situated
posting
to
the
state
construction
registry
internet
website
a
verified
statement
of
account
of
the
demand
due
the
person,
after
allowing
all
credits,
setting
forth:
a.
The
date
when
such
material
was
first
furnished
or
labor
first
performed,
and
the
date
on
which
the
last
of
the
material
was
furnished
or
the
last
of
the
labor
was
performed.
b.
The
legal
description
of
the
property
to
be
charged
with
the
lien.
c.
The
name
and
last
known
mailing
address
of
the
owner
of
the
property.
d.
The
address
of
the
property
or
a
description
of
the
location
of
the
property
if
the
property
cannot
be
reasonably
identified
by
an
address.
e.
The
tax
parcel
identification
number.
2.
Upon
the
filing
posting
of
the
lien,
the
clerk
of
court
administrator
shall
mail
a
copy
of
the
lien
to
the
owner.
If
the
statement
of
the
lien
consists
of
more
than
one
page,
the
clerk
administrator
may
omit
such
pages
as
consist
solely
of
an
accounting
of
the
material
furnished
or
labor
performed.
In
this
case,
the
clerk
administrator
shall
attach
a
notification
that
pages
of
accounting
were
omitted
and
may
be
inspected
in
the
clerk’s
office
on
the
state
construction
registry
internet
website
.
3.
A
lien
perfected
under
this
section
shall
be
limited
to
the
county
in
which
the
building,
land,
or
improvement
to
be
charged
with
the
lien
is
situated.
The
county
identified
on
the
state
construction
registry
internet
website
at
the
time
of
posting
the
required
notices
pursuant
to
sections
572.13A
and
572.13B
shall
be
the
only
county
in
which
the
building,
land,
House
File
675,
p.
5
or
improvement
may
be
charged
with
a
mechanic’s
lien.
Sec.
5.
Section
572.9,
Code
2011,
is
amended
to
read
as
follows:
572.9
Time
of
filing
lien
posting
.
The
statement
of
account
required
by
section
572.8
shall
be
filed
posted
by
a
principal
general
contractor
or
subcontractor
within
two
years
and
ninety
days
after
the
date
on
which
the
last
of
the
material
was
furnished
or
the
last
of
the
labor
was
performed.
Sec.
6.
Section
572.10,
Code
2011,
is
amended
to
read
as
follows:
572.10
Perfecting
lien
after
lapse
of
ninety
days.
A
general
contractor
or
a
subcontractor
may
perfect
a
mechanic’s
lien
pursuant
to
section
572.8
beyond
ninety
days
after
the
date
on
which
the
last
of
the
material
was
furnished
or
the
last
of
the
labor
was
performed
by
filing
a
claim
with
the
clerk
of
the
district
court
posting
a
lien
to
the
state
construction
registry
internet
website
and
giving
written
notice
thereof
to
the
owner.
Such
notice
may
be
served
by
any
person
in
the
manner
original
notices
are
required
to
be
served.
If
the
party
to
be
served
is
out
of
the
county
wherein
the
property
is
situated,
a
return
of
that
fact
by
the
person
charged
with
making
such
service
shall
constitute
sufficient
service
from
and
after
the
time
it
was
filed
with
the
clerk
of
the
district
court
posted
to
the
state
construction
registry
internet
website
.
Sec.
7.
Section
572.11,
Code
2011,
is
amended
to
read
as
follows:
572.11
Extent
of
lien
filed
posted
after
ninety
days.
Liens
perfected
under
section
572.10
shall
be
enforced
against
the
property
or
upon
the
bond,
if
given,
by
the
owner
or
by
the
owner-builder’s
buyer
,
only
to
the
extent
of
the
balance
due
from
the
owner
to
the
general
contractor
or
from
the
owner-builder’s
buyer
to
the
owner-builder
at
the
time
of
the
service
of
such
notice;
but
if
the
bond
was
given
by
the
general
contractor
or
owner-builder
,
or
person
contracting
with
the
subcontractor
filing
the
claim
for
a
lien,
such
bond
shall
be
enforced
to
the
full
extent
of
the
amount
found
due
the
subcontractor.
Sec.
8.
Section
572.13,
Code
Supplement
2011,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
572.13
General
contractor
——
owner
notice
——
residential
House
File
675,
p.
6
construction.
1.
A
general
contractor
who
has
contracted
or
will
contract
with
a
subcontractor
to
provide
labor
or
furnish
material
for
the
property
shall
provide
the
owner
with
the
following
owner
notice
in
writing
in
boldface
type
of
a
minimum
size
of
ten
points:
“Persons
or
companies
furnishing
labor
or
materials
for
the
improvement
of
real
property
may
enforce
a
lien
upon
the
improved
property
if
they
are
not
paid
for
their
contributions,
even
if
the
parties
have
no
direct
contractual
relationship
with
the
owner.
The
state
construction
registry
provides
a
listing
of
all
persons
or
companies
furnishing
labor
or
materials
who
have
posted
a
lien
or
who
may
post
a
lien
upon
the
improved
property.”
2.
The
notice
described
in
subsection
1
shall
also
contain
the
internet
website
address
and
toll-free
telephone
number
of
the
state
construction
registry.
3.
A
general
contractor
who
fails
to
provide
notice
pursuant
to
this
section
is
not
entitled
to
a
lien
and
remedy
provided
by
this
chapter.
4.
This
section
applies
only
to
residential
construction
properties.
Sec.
9.
NEW
SECTION
.
572.13A
Notice
of
commencement
of
work
——
general
contractor
——
owner-builder.
1.
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
state
construction
registry
internet
website
within
ten
days
of
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:
a.
The
name
and
address
of
the
owner.
b.
The
name,
address,
and
telephone
number
of
the
general
contractor
or
owner-builder.
c.
The
address
of
the
property
or
a
description
of
the
location
of
the
property
if
the
property
cannot
be
reasonably
identified
by
an
address.
d.
The
legal
description
of
the
property.
e.
The
date
work
commenced.
f.
The
tax
parcel
identification
number.
House
File
675,
p.
7
g.
Any
other
information
prescribed
by
the
administrator
pursuant
to
rule.
2.
If
a
general
contractor
or
owner-builder
fails
to
post
the
required
notice
of
commencement
of
work
to
the
state
construction
registry
internet
website
pursuant
to
subsection
1,
within
ten
days
of
commencement
of
the
work
on
the
property,
a
subcontractor
may
post
the
notice
in
conjunction
with
the
filing
of
the
required
preliminary
notice
pursuant
to
section
572.13B.
A
notice
of
commencement
of
work
must
be
posted
to
the
state
construction
registry
internet
website
before
preliminary
notices
pursuant
to
section
572.13B
may
be
posted.
3.
a.
At
the
time
a
notice
of
commencement
of
work
is
posted
on
the
state
construction
registry
internet
website,
the
administrator
shall
assign
a
state
construction
registry
number
and
send
a
copy
of
the
owner
notice
described
in
section
572.13.
The
owner
notice
shall
contain
the
following
language:
Persons
or
companies
furnishing
labor
or
materials
for
the
improvement
of
real
property
may
enforce
a
lien
upon
the
improved
property
if
they
are
not
paid
for
their
contributions,
even
if
the
parties
have
no
direct
contractual
relationship
with
the
owner.
The
state
construction
registry
provides
a
listing
of
all
persons
or
companies
furnishing
labor
or
materials
who
have
posted
a
lien
or
who
may
post
a
lien
upon
the
improved
property.
If
the
person
or
company
has
posted
its
notice
or
lien
to
the
state
construction
registry,
you
may
be
required
to
pay
the
person
or
company
even
if
you
have
paid
the
general
contractor
the
full
amount
due.
Therefore,
check
the
state
construction
registry
internet
website
for
information
about
the
property
including
persons
or
companies
furnishing
labor
or
materials
before
paying
your
general
contractor.
In
addition,
when
making
payment
to
your
general
contractor,
it
is
important
to
obtain
lien
waivers
from
your
general
contractor
and
from
persons
or
companies
registered
as
furnishing
labor
or
materials
to
your
property.
The
information
in
the
state
construction
registry
is
posted
on
the
internet
website
of
the
state
construction
registry.
b.
Other
relevant
information
may
be
included
with
the
notice
described
in
subsection
1
as
prescribed
by
the
administrator
pursuant
to
rule.
c.
The
notice
described
in
subsection
1
shall
be
sent
to
the
owner’s
address.
If
the
owner’s
address
is
different
than
the
property
address,
a
copy
of
the
notice
shall
also
be
sent
to
the
property
address,
addressed
to
the
owner.
House
File
675,
p.
8
4.
A
general
contractor
who
fails
to
provide
notice
pursuant
to
this
section
is
not
entitled
to
a
lien
and
remedy
provided
by
this
chapter.
5.
This
section
applies
only
to
residential
construction
properties.
Sec.
10.
NEW
SECTION
.
572.13B
Preliminary
notice
——
subcontractor
——
residential
construction.
1.
A
subcontractor
shall
post
a
preliminary
notice
to
the
state
construction
registry
internet
website.
A
preliminary
notice
posted
before
the
balance
due
is
paid
to
the
general
contractor
or
the
owner-builder
is
effective
as
to
all
labor,
service,
equipment,
and
material
furnished
to
the
property
by
the
subcontractor.
The
preliminary
notice
shall
contain
all
of
the
following
information:
a.
The
name
of
the
owner.
b.
The
state
construction
registry
number.
c.
The
name,
address,
and
telephone
number
of
the
subcontractor
furnishing
the
labor,
service,
equipment,
or
material.
d.
The
name
and
address
of
the
person
who
contracted
with
the
claimant
for
the
furnishing
of
the
labor,
service,
equipment,
or
material.
e.
The
name
of
the
general
contractor
or
owner-builder
under
which
the
claimant
is
performing
or
will
perform
the
work.
f.
The
address
of
the
property
or
a
description
of
the
location
of
the
property
if
the
property
cannot
be
reasonably
identified
by
an
address.
g.
The
legal
description
of
the
property.
h.
The
date
the
material
or
materials
were
first
furnished
or
the
labor
was
first
performed.
i.
The
tax
parcel
identification
number.
j.
Any
other
information
required
by
the
administrator
pursuant
to
rule.
2.
At
the
time
a
preliminary
notice
is
posted
to
the
state
construction
registry,
the
administrator
shall
send
notification
to
the
owner,
including
the
owner
notice
described
in
section
572.13,
subsection
1,
and
shall
docket
the
mailing
of
the
notice
on
the
state
construction
registry
as
prescribed
by
the
administrator
pursuant
to
rule.
Notices
under
this
section
shall
not
be
sent
to
owner-builders.
Upon
request,
the
administrator
shall
provide
an
affidavit
of
mailing
at
no
cost
for
the
notice
required
under
this
section.
3.
a.
A
mechanic’s
lien
perfected
under
this
chapter
House
File
675,
p.
9
is
enforceable
only
to
the
extent
of
the
balance
due
the
general
contractor
or
the
owner-builder
at
the
time
of
the
posting
of
the
preliminary
notice
specified
in
subsection
1,
and,
except
for
residential
construction
property
owned
by
an
owner-builder,
also
is
enforceable
only
to
the
extent
of
the
balance
due
the
general
contractor
at
the
time
the
owner
actually
receives
the
notice
provided
pursuant
to
subsection
2
or
paragraph
“b”
.
b.
(1)
In
any
action
to
enforce
a
mechanic’s
lien
perfected
under
this
chapter
against
the
owner,
the
subcontractor
bears
the
burden
to
prove
by
a
preponderance
of
the
evidence
that
the
owner
received
notice
pursuant
to
subsection
2.
A
subcontractor
may
satisfy
the
burden
of
proof
by
providing
separate
notice
to
an
owner
by
including
but
not
limited
to
any
of
the
following
means:
(a)
By
certified
mail
with
return
receipt.
(b)
By
personal
service
in
the
manner
original
notices
are
required
to
be
served.
(c)
By
actual
notice
with
a
signed
receipt
from
the
owner
acknowledging
notice.
(2)
If
the
subcontractor
provides
an
affidavit
of
mailing,
the
presumption
is
that
the
owner
received
the
notice
on
the
fourth
day
of
business
for
the
post
office
after
the
notice
was
sent
and
the
burden
of
proof
shifts
from
the
subcontractor
to
the
owner
to
refute
the
presumption.
4.
A
subcontractor
who
fails
to
post
a
preliminary
notice
pursuant
to
this
section
shall
not
be
entitled
to
a
lien
and
remedy
provided
under
this
chapter.
5.
This
section
applies
only
to
residential
construction
properties.
Sec.
11.
Section
572.14,
Code
2011,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
572.14
Liability
to
subcontractor
after
payment
to
general
contractor
or
owner-builder.
Except
as
provided
in
section
572.13B,
payment
to
the
general
contractor
or
owner-builder
of
any
part
or
all
of
the
contract
price
of
the
building
or
improvement
within
ninety
days
after
the
date
on
which
the
last
of
the
materials
was
furnished
or
the
last
of
the
labor
was
performed
by
a
subcontractor,
does
not
relieve
the
owner
from
liability
to
the
subcontractor
for
the
full
value
of
any
material
furnished
or
labor
performed
upon
the
building,
land,
or
improvement
if
the
subcontractor
posts
a
lien
within
ninety
days
after
the
date
House
File
675,
p.
10
on
which
the
last
of
the
materials
was
furnished
or
the
last
of
the
labor
was
performed.
Sec.
12.
Section
572.15,
Code
2011,
is
amended
to
read
as
follows:
572.15
Discharge
of
subcontractor’s
mechanic’s
lien
——
bond.
A
mechanic’s
lien
may
be
discharged
at
any
time
by
the
owner,
principal
contractor,
or
intermediate
subcontractor
filing
with
the
clerk
of
the
district
court
of
the
county
in
which
the
property
is
located
submitting
a
bond
to
the
administrator
in
twice
the
amount
of
the
sum
for
which
the
claim
for
the
lien
is
filed,
with
surety
or
sureties,
to
be
approved
by
the
clerk
administrator
,
conditioned
for
the
payment
of
any
sum
for
which
the
claimant
may
obtain
judgment
upon
the
claim.
Sec.
13.
Section
572.16,
Code
2011,
is
amended
to
read
as
follows:
572.16
Rule
of
construction.
Nothing
in
this
chapter
shall
be
construed
to
require
the
owner
to
pay
a
greater
amount
or
at
an
earlier
date
than
is
provided
in
the
owner’s
contract
with
the
principal
general
contractor,
unless
said
the
owner
pays
a
part
or
all
of
the
contract
price
to
the
original
general
contractor
before
the
expiration
of
the
ninety
days
allowed
by
law
for
the
filing
posting
of
a
mechanic’s
lien
by
a
subcontractor;
provided
that
in
the
case
of
an
owner-occupied
dwelling
residential
construction
,
nothing
in
this
chapter
shall
be
construed
to
require
the
owner
to
pay
a
greater
amount
or
at
an
earlier
date
than
is
provided
in
the
owner’s
contract
with
the
principal
general
contractor,
unless
the
owner
pays
a
part
or
all
of
the
contract
price
to
the
principal
general
contractor
after
receipt
of
notice
under
section
572.14,
subsection
2
the
owner
receives
notice
pursuant
to
section
572.13B,
subsection
2
or
subsection
3,
paragraph
“b”
.
Sec.
14.
Section
572.17,
Code
2011,
is
amended
to
read
as
follows:
572.17
Priority
of
mechanics’
liens
between
mechanics.
Mechanics’
liens
shall
have
priority
over
each
other
in
the
order
of
the
filing
posting
of
the
statements
or
of
accounts
as
herein
provided
in
section
572.8
.
Sec.
15.
Section
572.18,
subsections
1
and
3,
Code
2011,
are
amended
to
read
as
follows:
1.
Mechanics’
liens
filed
posted
by
a
principal
general
contractor
or
subcontractor
within
ninety
days
after
the
date
on
which
the
last
of
the
material
was
furnished
or
the
last
House
File
675,
p.
11
of
the
claimant’s
labor
was
performed
and
for
which
notices
were
properly
posted
to
the
state
construction
registry
internet
website
pursuant
to
sections
572.13A
and
572.13B
shall
be
superior
to
all
other
liens
which
may
attach
to
or
upon
a
building
or
improvement
and
to
the
land
upon
which
it
is
situated,
except
liens
of
record
prior
to
the
time
of
the
original
commencement
of
the
claimant’s
work
or
the
claimant’s
improvements,
except
as
provided
in
subsection
2
.
3.
The
rights
of
purchasers,
encumbrancers,
and
other
persons
who
acquire
interests
in
good
faith,
for
a
valuable
consideration,
and
without
notice
of
a
lien
perfected
pursuant
to
this
chapter
,
are
superior
to
the
claims
of
all
general
contractors
or
subcontractors
who
have
perfected
their
liens
more
than
ninety
days
after
the
date
on
which
the
last
of
the
claimant’s
material
was
furnished
or
the
last
of
the
claimant’s
labor
was
performed.
Sec.
16.
Section
572.22,
Code
2011,
is
amended
to
read
as
follows:
572.22
Record
of
claim.
The
clerk
of
the
court
administrator
shall
endorse
upon
every
claim
for
a
mechanic’s
lien
filed
in
the
clerk’s
office
posted
to
the
state
construction
registry
internet
website
the
date
and
hour
of
filing
posting
and
make
an
abstract
thereof
in
the
mechanic’s
lien
book
kept
for
that
purpose
.
Said
book
Each
claim
shall
be
properly
indexed
and
shall
contain
the
following
items
concerning
each
claim
:
1.
The
name
of
the
person
by
whom
filed
posted
.
2.
The
date
and
hour
of
filing
posting
.
3.
The
amount
thereof.
4.
The
name
of
the
person
against
whom
filed
posted
.
5.
The
legal
description
of
the
property
to
be
charged
therewith
.
6.
The
tax
parcel
identification
number
of
the
property
to
be
charged.
7.
The
address
of
the
property
or
a
description
of
the
location
of
the
property
if
the
property
cannot
be
reasonably
identified
by
an
address.
Sec.
17.
Section
572.23,
Code
2011,
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
satisfaction
thereof
upon
the
mechanic’s
lien
book,
or
otherwise
in
writing,
and,
if
the
House
File
675,
p.
12
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
or
,
general
contractor,
or
owner-builder
and
be
liable
to
any
person
injured
to
the
extent
of
the
injury.
2.
If
acknowledgment
of
satisfaction
is
not
filed
acknowledged
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
clerk
of
the
district
court
administrator
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
shall
be
constructive
notice
to
all
parties
of
the
due
forfeiture
and
cancellation
of
the
lien.
Upon
the
filing
of
the
demand
with
the
required
attachments,
the
clerk
of
the
district
court
administrator
shall
mail
a
file-stamped
date-stamped
copy
of
the
demand
to
both
parties.
Sec.
18.
Section
572.24,
subsection
2,
Code
2011,
is
amended
to
read
as
follows:
2.
An
action
to
challenge
a
mechanic’s
lien
may
be
commenced
in
the
district
court
or
small
claims
court
if
the
amount
of
the
lien
is
within
jurisdictional
limits.
Any
permissible
claim
or
counterclaim
meeting
subject
matter
and
jurisdictional
requirements
may
be
joined
with
the
action.
The
court
shall
make
written
findings
regarding
the
lawful
amount
and
the
validity
of
the
mechanic’s
lien.
In
addition
to
any
other
appropriate
order,
the
court
may
enter
judgment
on
a
permissibly
joined
claim
or
counterclaim.
If
the
court
determines
that
the
mechanic’s
lien
is
invalid,
valid
for
a
lesser
amount,
frivolous,
fraudulent,
forfeited,
expired,
or
for
any
other
reason
unenforceable,
the
clerk
of
the
district
court
shall
make
an
entry
of
record
to
the
mechanic’s
lien
book
submit
the
ruling
to
the
administrator
who
shall
make
a
posting
to
the
state
construction
registry
internet
website
regarding
the
proper
amount
of
the
lien
or,
if
warranted,
canceling
the
lien.
Sec.
19.
Section
572.28,
subsection
2,
Code
2011,
is
amended
to
read
as
follows:
2.
If
an
action
is
not
filed
within
thirty
days
after
demand
to
commence
action
is
served,
the
party
serving
the
demand
or
causing
the
demand
to
be
served
may
file
for
record
post
with
the
clerk
of
the
district
court
administrator
a
copy
House
File
675,
p.
13
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
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
clerk
of
the
district
court
administrator
shall
mail
a
file-stamped
date-stamped
copy
of
the
demand
to
both
parties.
Sec.
20.
Section
572.30,
Code
2011,
is
amended
to
read
as
follows:
572.30
Action
by
subcontractor
or
owner
against
general
contractor
or
owner-builder
.
Unless
otherwise
agreed,
a
principal
general
contractor
or
owner-builder
who
engages
a
subcontractor
to
supply
labor
or
materials
or
both
for
improvements,
alterations
or
repairs
to
a
specific
owner-occupied
dwelling
residential
construction
property
shall
pay
the
subcontractor
in
full
for
all
labor
and
materials
supplied
within
thirty
days
after
the
date
the
principal
general
contractor
or
owner-builder
receives
full
payment
from
the
owner.
If
a
principal
general
contractor
or
owner-builder
fails
without
due
cause
to
pay
a
subcontractor
as
required
by
this
section
,
the
subcontractor,
or
the
owner
by
subrogation,
may
commence
an
action
against
the
general
contractor
or
owner-builder
to
recover
the
amount
due.
Prior
to
commencing
an
action
to
recover
the
amount
due,
a
subcontractor,
or
the
owner
by
subrogation,
shall
give
notice
of
nonpayment
of
the
cost
of
labor
or
materials
to
the
principal
general
contractor
or
owner-builder
paid
for
the
improvement.
Notice
of
nonpayment
must
be
in
writing,
delivered
in
a
reasonable
manner,
and
in
terms
that
reasonably
identify
the
real
estate
improved
and
the
nonpayment
complained
of.
In
an
action
to
recover
the
amount
due
a
subcontractor,
or
the
owner
by
subrogation,
under
this
section
,
the
court
in
addition
to
actual
damages,
shall
award
a
successful
plaintiff
exemplary
damages
against
the
general
contractor
or
owner-builder
in
an
amount
not
less
than
one
percent
and
not
exceeding
fifteen
percent
of
the
amount
due
the
subcontractor,
or
the
owner
by
subrogation,
for
the
labor
and
materials
supplied,
unless
the
principal
general
contractor
or
owner-builder
does
one
or
both
of
the
following,
in
which
case
no
exemplary
damages
shall
be
awarded:
1.
Establishes
that
all
proceeds
received
from
the
person
House
File
675,
p.
14
making
the
payment
have
been
applied
to
the
cost
of
labor
or
material
furnished
for
the
improvement.
2.
Within
fifteen
days
after
receiving
notice
of
nonpayment
the
principal
general
contractor
or
owner-builder
gives
a
bond
or
makes
a
deposit
with
the
clerk
of
the
district
court
administrator
,
in
an
amount
not
less
than
the
amount
necessary
to
satisfy
the
nonpayment
for
which
notice
has
been
given
under
this
section
,
and
in
a
form
approved
by
a
judge
of
the
district
court,
to
hold
harmless
the
owner
or
person
having
the
improvement
made
from
any
claim
for
payment
of
anyone
furnishing
labor
or
material
for
the
improvement,
other
than
the
principal
general
contractor
or
owner-builder
.
Sec.
21.
Section
572.31,
Code
2011,
is
amended
to
read
as
follows:
572.31
Cooperative
and
condominium
housing.
A
lien
arising
under
this
chapter
as
a
result
of
the
construction
of
an
apartment
house
or
apartment
building
which
is
owned
on
a
cooperative
basis
under
chapter
499A
,
or
which
is
submitted
to
a
horizontal
property
regime
under
chapter
499B
,
is
not
enforceable,
notwithstanding
any
contrary
provision
of
this
chapter
,
as
against
the
interests
of
an
owner
in
an
owner-occupied
dwelling
a
unit
contained
in
the
apartment
house
or
apartment
building
acquired
in
good
faith
and
for
valuable
consideration,
unless
a
lien
statement
specifically
describing
the
dwelling
unit
is
filed
under
section
572.8
within
the
applicable
time
period
specified
in
section
572.9
,
but
determined
from
the
date
on
which
the
last
of
the
material
was
supplied
or
the
last
of
the
labor
was
performed
in
the
construction
of
that
dwelling
unit.
Sec.
22.
Section
572.32,
Code
2011,
is
amended
to
read
as
follows:
572.32
Attorney
fees
——
remedies.
1.
In
a
court
action
to
enforce
a
mechanic’s
lien,
if
the
plaintiff
furnished
labor
or
materials
directly
to
the
defendant,
a
prevailing
plaintiff
may
be
awarded
reasonable
attorney
fees.
2.
In
a
court
action
to
challenge
a
mechanic’s
lien
filed
posted
on
an
owner-occupied
dwelling
a
residential
construction
property
,
if
the
person
challenging
the
lien
prevails,
the
court
may
award
reasonable
attorney
fees
and
actual
damages.
If
the
court
determines
that
the
mechanic’s
lien
was
filed
posted
in
bad
faith
or
the
supporting
affidavit
was
materially
false,
the
court
shall
award
the
owner
reasonable
attorney
fees
House
File
675,
p.
15
plus
an
amount
not
less
than
five
hundred
dollars
or
the
amount
of
the
lien,
whichever
is
less.
Sec.
23.
Section
572.33,
Code
2011,
is
amended
to
read
as
follows:
572.33
Requirement
of
notification
for
commercial
construction
.
1.
The
notification
requirements
in
this
section
apply
only
to
commercial
construction.
1.
2.
A
person
furnishing
labor
or
materials
to
a
subcontractor
shall
not
be
entitled
to
a
lien
under
this
chapter
unless
the
person
furnishing
labor
or
materials
does
all
of
the
following:
a.
Notifies
the
principal
general
contractor
or
owner-builder
in
writing
with
a
one-time
notice
containing
the
name,
mailing
address,
and
telephone
number
of
the
person
furnishing
the
labor
or
materials,
and
the
name
of
the
subcontractor
to
whom
the
labor
or
materials
were
furnished,
within
thirty
days
of
first
furnishing
labor
or
materials
for
which
a
lien
claim
may
be
made.
Additional
labor
or
materials
furnished
by
the
same
person
to
the
same
subcontractor
for
use
in
the
same
construction
project
shall
be
covered
by
this
notice.
b.
Supports
the
lien
claim
with
a
certified
statement
that
the
principal
general
contractor
or
owner-builder
was
notified
in
writing
with
a
one-time
notice
containing
the
name,
mailing
address,
and
telephone
number
of
the
person
furnishing
the
labor
or
materials,
and
the
name
of
the
subcontractor
to
whom
the
labor
or
materials
were
furnished,
within
thirty
days
after
the
labor
or
materials
were
first
furnished,
pursuant
to
paragraph
“a”
.
2.
This
section
shall
not
apply
to
a
mechanic’s
lien
on
single-family
or
two-family
dwellings
occupied
or
used
or
intended
to
be
occupied
or
used
for
residential
purposes.
3.
Notwithstanding
other
provisions
of
this
chapter
,
a
principal
general
contractor
or
owner-builder
shall
not
be
prohibited
from
requesting
information
from
a
subcontractor
or
a
person
furnishing
labor
or
materials
to
a
subcontractor
regarding
payments
made
or
payments
to
be
made
to
a
person
furnishing
labor
or
materials
to
a
subcontractor.
Sec.
24.
NEW
SECTION
.
572.33A
Liability
of
owner
to
general
contractor
——
commercial
construction.
An
owner
of
a
building,
land,
or
improvement
upon
which
a
mechanic’s
lien
of
a
subcontractor
may
be
filed,
is
not
House
File
675,
p.
16
required
to
pay
the
general
contractor
for
compensation
for
work
done
or
material
furnished
for
the
building,
land,
or
improvement
until
the
expiration
of
ninety
days
after
the
completion
of
the
building
or
improvement
unless
the
general
contractor
furnishes
to
the
owner
one
of
the
following:
1.
Receipts
and
waivers
of
claims
for
mechanics’
liens,
signed
by
all
persons
who
furnished
material
or
performed
labor
for
the
building,
land,
or
improvement.
2.
A
good
and
sufficient
bond
to
be
approved
by
the
owner,
conditioned
that
the
owner
shall
be
held
harmless
from
any
loss
which
the
owner
may
sustain
by
reason
of
the
filing
of
mechanics’
liens
by
subcontractors.
Sec.
25.
NEW
SECTION
.
572.34
State
construction
registry
——
residential
construction.
1.
A
state
construction
registry
is
created
and
shall
be
administered
by
the
administrator.
The
administrator
shall
adopt
rules
pursuant
to
chapter
17A
for
the
creation
and
administration
of
the
registry.
2.
The
state
construction
registry
shall
be
accessible
to
the
general
public
through
the
administrator’s
internet
website.
3.
The
registry
shall
be
indexed
by
owner
name,
general
contractor
name,
state
construction
registry
number,
property
address,
legal
description,
tax
parcel
identification
number,
and
any
other
identifier
considered
appropriate
as
determined
by
the
administrator
pursuant
to
rule.
4.
A
general
contractor,
owner-builder,
or
subcontractor
who
posts
fictitious,
forged,
or
false
information
to
the
state
construction
registry
shall
be
subject
to
a
penalty
as
determined
by
the
administrator
by
rule
in
addition
to
all
other
penalties
and
remedies
available
under
applicable
law.
5.
A
person
may
post
a
correction
statement
with
respect
to
a
record
indexed
in
the
state
construction
registry
internet
website
if
the
person
believes
the
record
is
inaccurate
or
wrongfully
posted.
6.
The
administrator
shall
charge
and
collect
fees
as
established
by
rule
necessary
for
the
administration
and
maintenance
of
the
registry
and
the
registry’s
internet
website.
The
administrator
shall
not
charge
a
filing
fee
for
a
preliminary
notice
required
pursuant
to
this
chapter
that
exceeds
the
cost
of
sending
such
notice
by
certified
mail
with
restricted
delivery
and
return
receipt.
The
administrator
shall
not
charge
a
filing
fee
for
a
mechanics’
lien
that
House
File
675,
p.
17
exceeds
forty
dollars.
7.
Notices
may
be
posted
to
the
state
construction
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
state
construction
registry
within
three
business
days
of
receipt.
8.
Mechanics’
liens
may
be
posted
to
the
state
construction
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
state
construction
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.
10.
Information
collected
by
and
furnished
to
the
administrator
in
conjunction
with
the
submission
and
posting
of
notices
pursuant
to
sections
572.13A
and
572.13B
shall
be
used
by
the
administrator
solely
for
the
purposes
of
the
state
construction
registry.
11.
Registration
under
chapter
91C
shall
not
be
required
in
order
to
post
a
notice
or
a
lien
under
this
chapter.
12.
The
administrator
shall
make,
or
cause
to
be
made,
preservation
duplicates
of
state
construction
registry
records,
including
records
stored
in
a
computer
database.
Any
preservation
duplicate
record
shall
be
accurate,
complete,
and
clear,
and
shall
be
made,
preserved,
and
made
accessible
to
the
public
by
means
designated
by
the
administrator
by
rule.
Sec.
26.
Section
602.8102,
subsection
82,
Code
2011,
is
amended
to
read
as
follows:
82.
Carry
out
duties
relating
to
liens
as
provided
in
chapters
249A
,
572
,
574
,
580
,
582
,
and
584
.
Sec.
27.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
2013.
Sec.
28.
APPLICABILITY.
1.
Mechanics’
liens
filed
prior
to
the
effective
date
of
this
Act
shall
remain
with
the
clerk
of
the
district
court
of
the
county
in
which
the
building,
land,
or
improvement
charged
with
the
lien
is
situated.
2.
The
notice
provisions
contained
in
this
Act
apply
only
House
File
675,
p.
18
to
material
furnished
or
labor
performed
after
the
effective
date
of
this
Act.
______________________________
KRAIG
PAULSEN
Speaker
of
the
House
______________________________
JOHN
P.
KIBBIE
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
675,
Eighty-fourth
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Chief
Clerk
of
the
House
Approved
_______________,
2012
______________________________
TERRY
E.
BRANSTAD
Governor