HF 2233 — A bill for an act relating to mechanics’ liens, public construction liens, and the early release of retained funds. (Formerly HSB 524.) Effective 7-1-18.

House File 2233 - ReprintedEnrolled HOUSEHouse FILEFile 2233 BYAN COMMITTEEACT ONRELATING JUDICIARY (SUCCESSOR TO HSBMECHANICS’ 524)LIENS, (AsPUBLIC AmendedCONSTRUCTION andLIENS, PassedAND byTHE theEARLY HouseRELEASE FebruaryOF 27,RETAINED 2018)FUNDS. A BILL FOR An Act relating to mechanics’ liens, public construction liens, and the early release of retained funds.

HFSection 22331. (2) 87 asf/jh/md H.F.

2233 Section 1.

Notwithstanding any other provision of law to the contrary, a public improvement that involves the construction, reconstruction,House orFile improvement2233, ofp. a highway, bridge, or culvert and that has a cost in excess of the applicable threshold in section 73A.18, 262.34, 297.7, 309.40, 310.14, or 313.10, as modified by the bid threshold subcommittee pursuant to section 314.1B, shall be advertised and let for bid, except such public improvements that involve emergency work pursuant to section 309.40A, 313.10, or 384.103, subsection 2.

2 reconstruction, or improvement of a highway, bridge, or culvert and that has a cost in excess of the applicable threshold in section 73A.18, 262.34, 297.7, 309.40, 310.14, or 313.10, as modified by the bid threshold subcommittee pursuant to section 314.1B, shall be advertised and let for bid, except such public improvements that involve emergency work pursuant to section 309.40A, 313.10, or 384.103, subsection 2.

An action to enforce a mechanic’s lien shall be by HFequitable 2233proceedings, (2)and 87no -1-other asf/jh/mdcause 1/6of H.F.action shall be joined therewith.

2233 equitable proceedings, and no other cause of action shall be joined therewith.

Any lien statement may be amended by leave of court in furtherance of justice, except as to the amount demanded Except as provided in paragraph “b”, a claimant may only amend a lien statement by leave of court in furtherance of justicejustice. .

A claimant shall not amend a lien statement to increase theHouse amountFile demanded.2233, p.

3 the amount demanded.

A person, firm, or corporation that has performed labor for or furnished materials, service, or transportation to a subcontractor shall not be entitled to a claim against the retainage or bond under this chapter unless the person, firm, or corporation that performed the labor or furnished the materials, service, or transportation does all of the following:

A person, firm, or corporation that has performed labor for or furnished materials, service, or transportation to a subcontractor shall not be entitled to a claim against the retainage or bond under this chapter unless the person, firm, or corporation that performed the labor or furnished the materials, service, or transportation does all of the following:

a.

Additional labor performed or materials, service, or transportation furnished by the same person, firm, or corporation to the same subcontractor for use in the same construction project shall be covered by HFthis 2233notice. (2) 87 -2- asf/jh/md 2/6 H.F.

2233b. this notice.

Supports the claim with a certified statement that the principal contractor received the notice described in paragraph “a”.

SupportsThis thesection claimshall withnot aapply certifiedto statementhighway, thatbridge, theor principalculvert contractorprojects receivedas thereferred noticeto described in subsectionsection 1.573.28.

“Department” means the state department of transportation.House File 2233, p.

4 transportation.

“Repair or maintenance work” means the preservation of a building, storm sewer, sanitary sewer, or other public facility HFor 2233structure (2)so 87that -3-it asf/jh/mdremains 3/6in H.F.sound or proper condition, including minor replacements and additions as necessary to restore the public facility or structure to its original condition with the same design.

2233 or structure so that it remains in sound or proper condition, including minor replacements and additions as necessary to restore the public facility or structure to its original condition with the same design.

(3)House TheFile public2233, improvementp. project or the highway, bridge, or culvert project is certified as having been substantially completed by either of the following:

5 (3) The public improvement project or the highway, bridge, or culvert project is certified as having been substantially completed by either of the following:

At any time after all or any part of the work on the public improvement or highway, bridge, or culvert project is HFsubstantially 2233completed, (2)the 87contractor -4-may asf/jh/mdrequest 4/6the H.F.release of all or part of the retained funds owed.

2233 substantially completed, the contractor may request the release of all or part of the retained funds owed.

If labor and materials are yet to be provided at the time the request for the release of the retained funds is made, an amount equal to two hundred percent of the value of the laborHouse orFile materials2233, yetp. to be provided, as determined by the governmental entity’s or the department’s authorized contract representative, may be withheld until such labor or materials are provided.

6 labor or materials yet to be provided, as determined by the governmental entity’s or the department’s authorized contract representative, may be withheld until such labor or materials are provided.

Each subcontractor shall pass through to HFeach 2233lower-tier (2)subcontractor 87all -5-retained asf/jh/mdfund 5/6payments H.F.from the contractor.

2233 each lower-tier subcontractor all retained fund payments from the contractor.

Sec.House File 2233, p.

7 Sec.

HF______________________________ 2233______________________________ (2)LINDA 87UPMEYER -6-CHARLES asf/jh/mdSCHNEIDER 6/6Speaker of the House President of the Senate I hereby certify that this bill originated in the House andis known as House File 2233, Eighty-seventh General Assembly.

______________________________ CARMINE BOAL Chief Clerk of the House Approved _______________, 2018 ______________________________ KIM REYNOLDS Governor