Bill Text: IA HSB62 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to mechanics’ liens and public construction liens.
Spectrum: Committee Bill
Status: (N/A - Dead) 2017-02-09 - Subcommittee Meeting: 02/14/2017 11:15AM House Lounge [HSB62 Detail]
Download: Iowa-2017-HSB62-Introduced.html
House
Study
Bill
62
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
JUDICIARY
BILL
BY
CHAIRPERSON
BALTIMORE)
A
BILL
FOR
An
Act
relating
to
mechanics’
liens
and
public
construction
1
liens.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
1709YC
(2)
87
jh/rh
H.F.
_____
Section
1.
Section
26.3,
subsection
3,
Code
2017,
is
amended
1
to
read
as
follows:
2
3.
Sections
26.4
through
26.13
26.12
and
section
573.28
3
apply
to
all
competitive
bidding
pursuant
to
this
section
.
4
Sec.
2.
Section
314.1,
subsection
2,
Code
2017,
is
amended
5
to
read
as
follows:
6
2.
Notwithstanding
any
other
provision
of
law
to
the
7
contrary,
a
public
improvement
that
involves
the
construction,
8
reconstruction,
or
improvement
of
a
highway,
bridge,
or
culvert
9
and
that
has
a
cost
in
excess
of
the
applicable
threshold
in
10
section
73A.18
,
262.34
,
297.7
,
309.40
,
310.14
,
or
313.10
,
as
11
modified
by
the
bid
threshold
subcommittee
pursuant
to
section
12
314.1B
,
shall
be
advertised
and
let
for
bid,
except
such
public
13
improvements
that
involve
emergency
work
pursuant
to
section
14
309.40A
,
313.10
,
or
384.103,
subsection
2
.
For
a
city
having
15
a
population
of
fifty
thousand
or
less,
a
public
improvement
16
that
involves
the
construction,
reconstruction,
or
improvement
17
of
a
highway,
bridge,
or
culvert
that
has
a
cost
in
excess
of
18
twenty-five
thousand
dollars,
as
modified
by
the
bid
threshold
19
subcommittee
pursuant
to
section
314.1B
,
shall
be
advertised
20
and
let
for
bid,
excluding
emergency
work.
However,
a
public
21
improvement
that
has
an
estimated
total
cost
to
a
city
in
22
excess
of
a
threshold
of
fifty
thousand
dollars,
as
modified
by
23
the
bid
threshold
subcommittee
pursuant
to
section
314.1B
,
and
24
that
involves
the
construction,
reconstruction,
or
improvement
25
of
a
highway,
bridge,
or
culvert
that
is
under
the
jurisdiction
26
of
a
city
with
a
population
of
more
than
fifty
thousand,
27
shall
be
advertised
and
let
for
bid.
Cities
required
to
28
competitively
bid
highway,
bridge,
or
culvert
work
shall
do
so
29
in
compliance
with
the
contract
letting
procedures
of
sections
30
26.3
through
26.13
26.12
and
section
573.28
.
31
Sec.
3.
Section
572.7,
Code
2017,
is
amended
to
read
as
32
follows:
33
572.7
In
case
of
internal
improvement.
34
When
the
lien
is
for
material
furnished
or
labor
performed
in
35
-1-
LSB
1709YC
(2)
87
jh/rh
1/
12
H.F.
_____
the
construction,
repair,
or
equipment
of
any
railroad,
canal,
1
viaduct,
or
other
similar
improvement,
said
the
lien
shall
2
attach
to
the
erections,
excavations,
embankments,
bridges,
3
roadbeds,
rolling
stock,
and
other
equipment
and
to
all
land
4
upon
which
such
improvements
or
property
may
be
situated,
5
except
including
the
easement
or
right-of-way.
6
Sec.
4.
Section
572.10,
Code
2017,
is
amended
to
read
as
7
follows:
8
572.10
Perfecting
lien
after
lapse
of
ninety
days.
9
A
general
contractor
or
a
subcontractor
may
perfect
a
10
mechanic’s
lien
pursuant
to
section
572.8
beyond
ninety
days
11
after
the
date
on
which
the
last
of
the
material
was
furnished
12
or
the
last
of
the
labor
was
performed
by
posting
a
lien
to
the
13
mechanics’
notice
and
lien
registry
internet
site
and
giving
14
written
notice
thereof
to
the
owner.
Such
notice
may
be
served
15
by
any
person
in
the
manner
original
notices
are
required
to
be
16
served.
If
the
party
to
be
served
is
out
of
the
county
wherein
17
the
property
is
situated,
a
return
of
that
fact
by
the
person
18
charged
with
making
such
service
shall
constitute
sufficient
19
service
from
and
after
the
time
it
was
posted
to
the
mechanics’
20
notice
and
lien
registry
internet
site.
21
Sec.
5.
Section
572.25,
Code
2017,
is
amended
to
read
as
22
follows:
23
572.25
Place
of
bringing
action.
24
An
A
court
or
arbitration
action
to
enforce
a
mechanic’s
25
lien
shall
be
brought
in
the
county
in
which
the
property
to
be
26
affected,
or
some
part
thereof,
is
situated.
27
Sec.
6.
Section
572.26,
Code
2017,
is
amended
to
read
as
28
follows:
29
572.26
Kinds
of
action
——
amendment.
30
1.
An
action
to
enforce
a
mechanic’s
lien
shall
be
by
31
equitable
proceedings,
and
no
other
cause
of
action
shall
be
32
joined
therewith.
33
2.
a.
Any
A
lien
statement
may
shall
not
be
amended
except
34
by
leave
of
court
in
furtherance
of
justice
,
except
as
to
the
35
-2-
LSB
1709YC
(2)
87
jh/rh
2/
12
H.F.
_____
amount
demanded
or
to
decrease
the
amount
demanded
.
1
b.
A
lien
statement
amended
without
leave
of
court
to
2
decrease
the
amount
demanded
shall
be
effected
through
the
3
mechanics’
notice
and
lien
registry.
4
c.
A
lien
statement
amended
pursuant
to
this
section
shall
5
not
affect
the
priority
of
the
lien
statement.
6
Sec.
7.
Section
572.28,
subsection
1,
Code
2017,
is
amended
7
to
read
as
follows:
8
1.
Upon
the
written
demand
of
the
owner
or
general
9
contractor
served
on
the
claimant
requiring
the
claimant
to
10
commence
action
to
enforce
the
lien,
such
action
shall
be
11
commenced
within
thirty
days
thereafter,
or
the
lien
and
all
12
benefits
derived
therefrom
shall
be
forfeited.
13
Sec.
8.
Section
572.32,
Code
2017,
is
amended
to
read
as
14
follows:
15
572.32
Attorney
fees
——
remedies.
16
1.
In
a
court
action
to
enforce
a
mechanic’s
lien,
a
the
17
court
may
award
the
prevailing
plaintiff
may
be
awarded
party
18
reasonable
attorney
fees
to
be
taxed
as
part
of
the
costs
in
19
the
case
.
20
2.
In
a
court
action
to
challenge
a
mechanic’s
lien
21
posted
on
a
residential
construction
property,
if
the
person
22
challenging
the
lien
prevails,
the
court
may
award
the
23
prevailing
party
reasonable
attorney
fees
and
actual
damages
24
to
be
taxed
as
part
of
the
costs
in
the
case
.
If
the
court
25
determines
that
the
mechanic’s
lien
was
posted
in
bad
faith
or
26
the
supporting
affidavit
was
materially
false,
the
court
shall
27
award
the
owner
person
challenging
the
lien
reasonable
attorney
28
fees
plus
an
amount
not
less
than
five
hundred
dollars
or
the
29
amount
of
the
lien,
whichever
is
less.
30
Sec.
9.
Section
573.2,
unnumbered
paragraph
2,
Code
2017,
31
is
amended
to
read
as
follows:
32
If
the
requirement
for
a
bond
is
waived
pursuant
to
section
33
12.44
,
a
person,
firm,
or
corporation,
having
a
contract
with
34
the
targeted
small
business
or
with
subcontractors
of
the
35
-3-
LSB
1709YC
(2)
87
jh/rh
3/
12
H.F.
_____
targeted
small
business,
for
labor
performed
or
materials
1
furnished,
in
the
performance
of
the
contract
on
account
of
2
which
the
bond
was
waived,
is
entitled
to
any
remedy
provided
3
under
this
chapter
.
When
a
bond
has
been
waived
pursuant
to
4
section
12.44
,
or
if
the
public
corporation
fails
to
procure
5
a
bond,
the
remedies
provided
for
under
this
paragraph
are
6
available
in
an
action
against
the
public
corporation.
7
Sec.
10.
Section
573.15,
Code
2017,
is
amended
by
striking
8
the
section
and
inserting
in
lieu
thereof
the
following:
9
573.15
Exception.
10
A
person,
firm,
or
corporation
that
has
performed
labor
11
or
furnished
materials,
service,
or
transportation
to
a
12
subcontractor
shall
not
be
entitled
to
a
claim
against
the
13
retainage
or
bond
under
this
chapter
unless
the
person,
14
firm,
or
corporation
that
performed
the
labor
or
furnished
15
the
materials,
service,
or
transportation
does
all
of
the
16
following:
17
1.
Notifies
the
principal
contractor
in
writing
with
a
18
one-time
notice
containing
the
name,
mailing
address,
and
19
telephone
number
of
the
person,
firm,
or
corporation
that
20
performed
the
labor
or
furnished
the
materials,
service,
21
or
transportation,
and
the
name
of
the
subcontractor
for
22
whom
the
labor
was
performed
or
the
materials,
service,
or
23
transportation
were
furnished,
within
thirty
days
of
first
24
performing
the
labor
or
furnishing
the
materials,
service,
or
25
transportation
for
which
a
claim
may
be
made.
Additional
labor
26
performed
or
materials,
service,
or
transportation
furnished
by
27
the
same
person,
firm,
or
corporation
to
the
same
subcontractor
28
for
use
in
the
same
construction
project
shall
be
covered
by
29
this
notice.
30
2.
Supports
the
claim
with
a
certified
statement
that
31
the
principal
contractor
received
the
notice
described
in
32
subsection
1.
33
Sec.
11.
Section
573.16,
unnumbered
paragraph
2,
Code
2017,
34
is
amended
to
read
as
follows:
35
-4-
LSB
1709YC
(2)
87
jh/rh
4/
12
H.F.
_____
Upon
written
demand
of
the
public
corporation,
principal
1
contractor
,
or
surety
on
any
bond
given
for
the
performance
2
of
the
contract
served,
in
the
manner
prescribed
for
original
3
notices,
on
the
person
filing
a
claim,
requiring
the
claimant
4
to
commence
action
in
court
to
enforce
the
claim,
an
action
5
shall
be
commenced
within
thirty
days,
otherwise
the
retained
6
and
unpaid
funds
due
the
principal
contractor
shall
be
7
released.
Unpaid
funds
shall
be
paid
to
the
principal
8
contractor
within
twenty
days
of
the
receipt
by
the
public
9
corporation
of
the
release
as
determined
pursuant
to
this
10
section
.
Failure
to
make
payment
by
that
date
shall
cause
11
interest
to
accrue
on
the
unpaid
amount.
Interest
shall
accrue
12
during
the
period
commencing
the
twenty-first
day
after
the
13
date
of
release
and
ending
on
the
date
of
the
payment.
The
14
rate
of
interest
shall
be
determined
pursuant
to
section
15
573.14
.
After
an
action
is
commenced,
upon
the
general
16
Upon
the
surety
on
any
bond
given
for
the
performance
of
17
the
contract
consenting,
in
writing,
to
the
release
of
the
18
principal
contractor
of
the
unpaid
funds,
or
upon
the
principal
19
contractor
filing
with
the
public
corporation
or
person
20
withholding
the
funds,
a
surety
bond
in
double
the
amount
of
21
the
claim
in
controversy,
conditioned
to
pay
upon
the
payment
22
of
any
final
judgment
rendered
for
the
claims
so
filed,
the
23
public
corporation
or
person
shall
pay
to
the
contractor
the
24
amount
of
funds
withheld.
25
Sec.
12.
Section
573.21,
Code
2017,
is
amended
to
read
as
26
follows:
27
573.21
Attorney
fees.
28
The
court
or
arbitrator
may
tax,
as
part
of
the
costs
in
the
29
case
,
a
reasonable
attorney
fee
fees
in
favor
of
the
prevailing
30
party
in
any
claimant
for
labor
or
materials
who
has,
in
whole
31
or
in
part,
established
court
or
arbitration
action
brought
to
32
enforce
a
claim
filed
pursuant
to
section
573.7
.
33
Sec.
13.
NEW
SECTION
.
573.28
Early
release
of
retained
34
funds.
35
-5-
LSB
1709YC
(2)
87
jh/rh
5/
12
H.F.
_____
1.
For
purposes
of
this
section:
1
a.
“Authorized
contract
representative”
means
the
person
2
chosen
by
the
governmental
entity
or
the
department
to
3
represent
its
interests
or
the
person
designated
in
the
4
contract
as
the
party
representing
the
governmental
entity’s
5
or
the
department’s
interest
regarding
administration
and
6
oversight
of
the
project.
7
b.
“Department”
means
the
state
department
of
8
transportation.
9
c.
“Governmental
entity”
means
the
state,
political
10
subdivisions
of
the
state,
public
school
corporations,
and
all
11
officers,
boards,
or
commissions
empowered
by
law
to
enter
12
into
contracts
for
the
construction
of
public
improvements,
13
excluding
the
state
board
of
regents
and
the
department.
14
d.
“Public
improvement”
means
a
building
or
construction
15
work
which
is
constructed
under
the
control
of
a
governmental
16
entity
and
is
paid
for
in
whole
or
in
part
with
funds
of
the
17
governmental
entity,
including
a
building
or
improvement
18
constructed
or
operated
jointly
with
any
other
public
or
19
private
agency,
but
excluding
urban
renewal
demolition
and
20
low-rent
housing
projects,
industrial
aid
projects
authorized
21
under
chapter
419,
emergency
work
or
repair
or
maintenance
22
work
performed
by
employees
of
a
governmental
entity,
and
23
excluding
a
highway,
bridge,
or
culvert
project,
and
excluding
24
construction
or
repair
or
maintenance
work
performed
for
a
city
25
utility
under
chapter
388
by
its
employees
or
performed
for
a
26
rural
water
district
under
chapter
357A
by
its
employees.
27
e.
“Repair
or
maintenance
work”
means
the
preservation
of
a
28
building,
storm
sewer,
sanitary
sewer,
or
other
public
facility
29
or
structure
so
that
it
remains
in
sound
or
proper
condition,
30
including
minor
replacements
and
additions
as
necessary
to
31
restore
the
public
facility
or
structure
to
its
original
32
condition
with
the
same
design.
33
f.
“Substantially
completed”
means
the
first
date
on
which
34
any
of
the
following
occurs:
35
-6-
LSB
1709YC
(2)
87
jh/rh
6/
12
H.F.
_____
(1)
Completion
of
the
public
improvement
project
or
the
1
highway,
bridge,
or
culvert
project
or
when
the
work
on
the
2
public
improvement
or
the
highway,
bridge,
or
culvert
project
3
has
been
substantially
completed
in
general
accordance
with
the
4
terms
and
provisions
of
the
contract.
5
(2)
The
work
on
the
public
improvement
or
on
the
designated
6
portion
is
substantially
completed
in
general
accordance
with
7
the
terms
of
the
contract
so
that
the
governmental
entity
or
8
the
department
can
occupy
or
utilize
the
public
improvement
or
9
designated
portion
of
the
public
improvement
for
its
intended
10
purpose.
This
subparagraph
shall
not
apply
to
highway,
bridge,
11
or
culvert
projects.
12
(3)
The
public
improvement
project
or
the
highway,
bridge,
13
or
culvert
project
is
certified
as
having
been
substantially
14
completed
by
either
of
the
following:
15
(a)
The
architect
or
engineer
authorized
to
make
such
16
certification.
17
(b)
The
authorized
contract
representative.
18
(4)
The
governmental
entity
or
the
department
is
occupying
19
or
utilizing
the
public
improvement
for
its
intended
purpose.
20
This
subparagraph
shall
not
apply
to
highway,
bridge,
or
21
culvert
projects.
22
2.
Payments
made
by
a
governmental
entity
or
the
department
23
for
the
construction
of
public
improvements
and
highway,
24
bridge,
or
culvert
projects
shall
be
made
in
accordance
with
25
the
provisions
of
this
chapter,
except
as
provided
in
this
26
section:
27
a.
At
any
time
after
all
or
any
part
of
the
work
on
the
28
public
improvement
or
highway,
bridge,
or
culvert
project
is
29
substantially
completed,
the
contractor
may
request
the
release
30
of
all
or
part
of
the
retained
funds
owed.
The
request
shall
be
31
accompanied
by
a
sworn
statement
of
the
contractor
that,
ten
32
calendar
days
prior
to
filing
the
request,
notice
was
given
as
33
required
by
paragraphs
“f”
and
“g”
to
all
known
subcontractors,
34
sub-subcontractors,
and
suppliers.
35
-7-
LSB
1709YC
(2)
87
jh/rh
7/
12
H.F.
_____
b.
Except
as
provided
under
paragraph
“c”
,
upon
receipt
of
1
the
request,
the
governmental
entity
or
the
department
shall
2
release
all
or
part
of
the
retained
funds.
Retained
funds
that
3
are
approved
as
payable
shall
be
paid
at
the
time
of
the
next
4
monthly
payment
or
within
thirty
days,
whichever
is
sooner.
If
5
partial
retained
funds
are
released
pursuant
to
a
contractor’s
6
request,
no
retained
funds
shall
be
subsequently
held
based
7
on
that
portion
of
the
work.
If
within
thirty
days
of
when
8
payment
becomes
due
the
governmental
entity
or
the
department
9
does
not
release
the
retained
funds
due,
interest
shall
accrue
10
on
the
amount
of
retained
funds
at
the
rate
of
interest
that
is
11
calculated
as
the
prime
rate
plus
one
percent
per
year
as
of
12
the
day
interest
begins
to
accrue
until
the
amount
is
paid.
13
c.
If
labor
and
materials
are
yet
to
be
provided
at
the
14
time
the
request
for
the
release
of
the
retained
funds
is
made,
15
an
amount
equal
to
two
hundred
percent
of
the
value
of
the
16
labor
or
materials
yet
to
be
provided,
as
determined
by
the
17
governmental
entity’s
or
the
department’s
authorized
contract
18
representative,
may
be
withheld
until
such
labor
or
materials
19
are
provided.
20
d.
An
itemization
of
the
labor
or
materials
yet
to
be
21
provided,
or
the
reason
that
the
request
for
release
of
22
retained
funds
is
denied,
shall
be
provided
to
the
contractor
23
in
writing
within
thirty
calendar
days
of
the
receipt
of
the
24
request
for
release
of
retained
funds.
25
e.
The
contractor
shall
release
retained
funds
to
the
26
subcontractor
or
subcontractors
in
the
same
manner
as
retained
27
funds
are
released
to
the
contractor
by
the
governmental
entity
28
or
the
department.
Each
subcontractor
shall
pass
through
to
29
each
lower-tier
subcontractor
all
retained
fund
payments
from
30
the
contractor.
31
f.
Prior
to
applying
for
release
of
retained
funds,
the
32
contractor
shall
send
a
notice
to
all
known
subcontractors,
33
sub-subcontractors,
and
suppliers
that
provided
labor
or
34
materials
for
the
public
improvement
project
or
the
highway,
35
-8-
LSB
1709YC
(2)
87
jh/rh
8/
12
H.F.
_____
bridge,
or
culvert
project.
1
g.
The
notice
shall
be
substantially
similar
to
the
2
following:
3
NOTICE
OF
CONTRACTOR’S
REQUEST
4
FOR
EARLY
RELEASE
OF
RETAINED
FUNDS
5
You
are
hereby
notified
that
[name
of
contractor]
will
be
6
requesting
an
early
release
of
funds
on
a
public
improvement
7
project
or
a
highway,
bridge,
or
culvert
project
designated
as
8
[name
of
project]
for
which
you
have
or
may
have
provided
labor
9
or
materials.
The
request
will
be
made
pursuant
to
Iowa
Code
10
section
573.28.
The
request
may
be
filed
with
the
[name
of
11
governmental
entity
or
department]
after
ten
calendar
days
from
12
the
date
of
this
notice.
The
purpose
of
the
request
is
to
have
13
[name
of
governmental
entity
or
department]
release
and
pay
14
funds
for
all
work
that
has
been
performed
and
charged
to
[name
15
of
governmental
entity
or
department]
as
of
the
date
of
this
16
notice.
This
notice
is
provided
in
accordance
with
Iowa
Code
17
section
573.28.
18
Sec.
14.
REPEAL.
Section
26.13,
Code
2017,
is
repealed.
19
EXPLANATION
20
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
21
the
explanation’s
substance
by
the
members
of
the
general
assembly.
22
This
bill
relates
to
mechanics’
liens
and
public
23
construction
liens.
24
MECHANIC’S
LIENS.
Under
current
law,
when
a
mechanic’s
25
lien
is
for
material
furnished
or
labor
performed
in
the
26
construction,
repair,
or
equipment
of
any
railroad,
canal,
27
viaduct,
or
other
similar
improvement,
the
lien
does
not
attach
28
to
an
easement
or
right-of-way.
The
bill
provides
that
such
a
29
mechanic’s
lien
does
attach
to
an
easement
or
right-of-way.
30
Under
Code
section
572.8,
a
person
shall
perfect
a
31
mechanic’s
lien
by
posting
to
the
mechanics’
notice
and
lien
32
registry
internet
site
a
verified
statement
of
account
of
33
the
demand
due
the
person
setting
forth
certain
specified
34
information.
Currently,
if
a
general
contractor
or
a
35
-9-
LSB
1709YC
(2)
87
jh/rh
9/
12
H.F.
_____
subcontractor
has
not
posted
the
mechanic’s
lien
to
the
1
registry
within
90
days
after
the
date
on
which
the
last
2
of
the
material
was
furnished
or
the
last
of
the
labor
was
3
performed,
the
general
contractor
or
subcontractor
must
post
4
the
mechanic’s
lien
on
the
registry
and
serve
the
owner
with
5
notice
of
the
posting
to
perfect
the
lien.
The
bill
provides
6
that
only
a
subcontractor
must
post
the
mechanic’s
lien
and
7
serve
the
owner
to
perfect
the
mechanic’s
lien.
8
Under
current
law,
a
court
action
to
enforce
a
mechanic’s
9
lien
must
be
brought
in
the
county
in
which
the
property
to
be
10
affected
is
situated.
The
bill
provides
that
same
rule
applies
11
to
arbitration
actions.
12
Under
current
law,
a
lien
statement
may
only
be
amended
by
13
leave
of
court
in
furtherance
of
justice
or
as
to
the
amount
14
demanded.
The
bill
provides
that
a
lien
statement
may
only
be
15
amended
by
leave
of
court
in
further
of
justice
or
to
decrease
16
the
amount
demanded.
An
amendment
to
decrease
the
amount
17
demanded
must
be
accomplished
through
the
mechanics’
notice
18
and
lien
registry.
The
bill
provides
that
amending
a
lien
19
statement
by
leave
of
court
in
furtherance
of
justice
or
to
20
decrease
the
amount
demanded
does
not
affect
the
priority
of
21
the
lien
statement.
22
Under
current
law,
the
owner
of
property
subject
to
a
23
mechanic’s
lien
may
serve
written
demand
on
the
claimant
24
requiring
the
claimant
to
commence
action
to
enforce
the
lien
25
within
30
days
of
the
notice.
If
the
claimant
fails
to
do
so,
26
the
lien
and
all
benefits
derived
therefrom
are
forfeited.
27
The
bill
provides
that,
in
addition
to
an
owner,
a
general
28
contractor
may
make
such
a
demand.
29
Under
current
law,
in
a
court
action
to
enforce
a
mechanic’s
30
lien,
the
court
may
award
a
prevailing
plaintiff
reasonable
31
attorney
fees.
The
bill
provides
that
the
court
may
award
32
attorney
fees
to
any
prevailing
party
in
an
action
to
enforce
33
a
mechanic’s
lien.
34
Under
current
law,
in
a
court
action
to
challenge
a
35
-10-
LSB
1709YC
(2)
87
jh/rh
10/
12
H.F.
_____
mechanic’s
lien
posted
on
a
residential
construction
property,
1
the
court
may
award
reasonable
attorney
fees
and
actual
damages
2
to
the
person
challenging
the
lien
if
such
person
prevails.
3
The
bill
provides
that
the
court
may
award
reasonable
attorney
4
fees
to
the
prevailing
party
in
an
action
to
challenge
a
5
mechanic’s
lien
posted
on
a
residential
construction
property.
6
PUBLIC
CONSTRUCTION
LIENS.
Under
Code
chapter
573
(labor
7
and
material
on
public
improvements),
and
subject
to
certain
8
exceptions,
contracts
for
construction
of
public
improvements
9
must
be
accompanied
by
a
bond
if
the
contract
price
equals
10
or
exceeds
$25,000.
The
bill
provides
that
if
the
public
11
corporation
fails
to
procure
a
bond,
the
public
corporation
is
12
liable
to
claimants
for
the
contractor’s
nonpayment.
13
Current
Code
section
573.15
provides
an
exception
to
the
14
requirement
that
a
public
corporation
retain
a
portion
of
funds
15
due
a
contractor
on
a
public
improvement
project
in
a
fund
16
for
the
payment
of
claims
for
materials
furnished
and
labor
17
performed.
The
exception
provides
that
a
public
corporation
18
need
only
retain
funds
due
a
supplier
of
material
to
a
general
19
contractor
if
the
supplier
provides
the
general
contractor
20
with
one
of
two
permitted
types
of
notice
after
the
materials
21
are
supplied.
The
bill
provides
that,
in
addition
to
claims
22
for
materials,
the
exception
shall
apply
to
claims
for
labor,
23
service,
or
transportation.
The
bill
also
amends
the
notice
24
requirement
to
provide
that
a
supplier
of
labor,
materials,
25
service,
or
transportation
to
a
general
contractor
must
give
26
only
one
type
of
notice,
along
with
a
certified
statement
that
27
such
notice
was
given.
28
Current
Code
section
573.16
provides
that
even
if
a
claimant
29
has
commenced
an
action
for
payment
of
funds,
the
public
30
corporation
shall
release
the
unpaid
funds
to
the
contractor
if
31
the
contractor
files
a
surety
bond
in
double
the
amount
of
the
32
claim
in
controversy,
conditioned
upon
the
payment
of
any
final
33
judgment
rendered
for
the
claims.
The
bill
provides
that
the
34
unpaid
funds
shall
also
be
released
to
the
contractor
if
the
35
-11-
LSB
1709YC
(2)
87
jh/rh
11/
12
H.F.
_____
surety
on
any
bond
given
for
the
performance
of
the
contract
1
gives
written
consent
to
the
release
of
the
unpaid
funds.
2
Current
Code
section
573.21
provides
that
if
a
claimant
3
establishes
a
claim
for
labor
or
materials
under
Code
chapter
4
573,
the
court
may
tax
reasonable
attorney
fees
in
favor
of
the
5
claimant.
The
bill
provides
that
a
court
or
arbitrator
may
tax
6
reasonable
attorney
fees
in
favor
of
any
prevailing
party
in
7
a
court
or
arbitrarian
action
brought
for
labor
or
materials
8
under
Code
chapter
573.
9
The
bill
repeals
Code
section
26.13
(public
construction
10
bidding
——
early
release
of
retained
funds)
and
creates
new
11
Code
section
573.28
with
the
same
language
except
for
corrected
12
internal
references.
13
-12-
LSB
1709YC
(2)
87
jh/rh
12/
12
