Bill Text: IA HF675 | 2011-2012 | 84th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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House File 675 - Introduced
HOUSE FILE 675
BY COMMITTEE ON WAYS AND MEANS
(SUCCESSOR TO HF 633)
(SUCCESSOR TO HF 262)
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.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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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
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
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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
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.
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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
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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
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.
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
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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.
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 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
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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 2011, is amended by striking
the section and inserting in lieu thereof the following:
572.13 General contractor —— owner notice —— residential
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. 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 furnishing labor or materials
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to your property. The information in the state construction
registry is posted on the internet website of the state
construction registry.”
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 property owner.
b. The name and address of the general contractor or
owner-builder.
c. The address of the property if the property can be
reasonably identified by an address or the name and a general
description of the location of the property if the property
cannot be reasonably identified by an address.
d. A legal description of the property.
e. The date work commenced.
f. The tax parcel identification number.
g. Any other information prescribed by the administrator
pursuant to rule.
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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.
3. At the time a notice of commencement of work is posted
on the state construction registry internet website, the
administrator shall send a copy of the owner notice described
in section 572.13 along with other relevant information to the
owner and to the property address, addressed to “owner”, as
prescribed by the administrator pursuant to rule.
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.
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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.
g. 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 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 mechanics’ lien perfected under this chapter
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 mechanics’ 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
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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
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
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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
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
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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.
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
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claim, the claimant shall acknowledge satisfaction thereof upon
the mechanic’s lien book, or otherwise in writing, and, if the
claimant neglects to do so for thirty days after demand in
writing is personally served upon the claimant, the claimant
shall forfeit and pay twenty-five dollars to the owner 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
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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 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. 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
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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
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
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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
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
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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
required to pay the general contractor for compensation for
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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
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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
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 day 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.
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
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chapters 249A , 572 , 574 , 580 , 582 , and 584 .
Sec. 27. EFFECTIVE DATE AND APPLICABILITY.
1. This Act takes effect July 1, 2012.
2. Mechanic’s 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.
3. The notice provisions contained in this Act apply only
to material furnished or labor performed after the effective
date of this Act.
EXPLANATION
This bill relates to mechanics’ liens including the
establishment of a state construction registry and provides an
effective date.
The bill changes all references to “principal contractor”
and “contractor” to “general contractor”, defined in the
bill to mean a 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.
The bill defines “owner-builder” as the legal or equitable
titleholder of record who furnishes material or performs
labor upon a building, erection, or other improvement, or who
contracts with a subcontractor to furnish material 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 more than one year from the
date the structure, property, development, or improvement
is substantially completed or abandoned. The bill extends
provisions currently in the Code for general contractors to
owner-builders. These provisions relate to perfecting a lien,
the acknowledgment of a lien that has been satisfied by payment
of a claim, actions by subcontractors or owners to recover
amounts due, and certain notification requirements.
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The bill provides for the perfection of a mechanic’s lien
by posting a verified statement of account to the state
construction registry internet website maintained by the
administrator of the registry (the secretary of state),
rather than by filing such statement with the district court.
The bill provides that a person who intends to perfect a
mechanic’s lien shall include the address of the property or a
description of the location of the property and the tax parcel
identification number in the person’s verified statement.
The bill provides that 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 an owner notice stating that 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, even if the parties have no direct contractual
relationship with the owner. The notice shall also provide
information relating to the availability of information posted
on the state construction registry established by the bill.
A general contractor who fails to provide such notice to
the owner is not entitled to a mechanic’s lien and remedies
pursuant to Code chapter 572.
The bill provides that 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, including certain specific
information, to the state construction registry internet
website.
The bill requires a subcontractor to post a preliminary
notice, including certain specific information, to the state
construction registry internet website. A preliminary notice
posted before the balance due is paid to the general contractor
or owner-builder by the owner is effective as to all labor,
service, equipment, or material furnished to the property
subsequent to the posting of the notice of commencement of
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work. A subcontractor who fails to post a preliminary notice
shall not be entitled to a lien and remedy provided under Code
chapter 572.
The bill provides that the provisions relating to the
requirement that a general contractor and a subcontractor
post notices to the state construction registry apply only to
residential construction properties.
The bill provides that payment to the general contractor or
owner-builder by the owner of any part or all of the contract
price of the building or improvement within 90 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 files
a lien within 90 days after the date on which the last of the
materials was furnished or the last of the labor was performed.
The bill provides for the creation of a state construction
registry for residential construction property for the
posting of notices by general contractors, owner-builders, and
subcontractors which such persons must post in order to protect
their lien rights. The state construction registry, once
created, shall be a publicly accessible centralized electronic
database created and maintained by the administrator. The
administrator shall adopt rules pursuant to Code chapter 17A
for the creation and administration of the registry. The
registry provides a centralized resource of all persons or
companies furnishing labor or materials who may file a lien
upon the improved property. Data collected by and furnished to
the administrator in conjunction with the posting of notices to
the state construction registry internet website shall be used
by the administrator for the purposes of the registry.
The bill eliminates the requirement that the clerk of court
make an abstract of a claim for a mechanic’s lien and requires
the administrator to record the date and hour of filing of a
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claim for a mechanic’s lien and to index every claim.
The bill takes effect July 1, 2012. Mechanic’s liens filed
prior to July 1, 2012, 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. In addition,
the notice provisions contained in the bill apply only to
material furnished or labor performed after July 1, 2012.
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