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S.B. 192

             1     

REPEAL OF RESIDENCE LIEN RECOVERY

             2     
FUND

             3     
2001 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Parley Hellewell

             6      This act modifies the Residence Lien Restriction and Lien Recovery Fund Act and related
             7      provisions of the Mechanics' Liens Act and the Utah Construction Trades Licensing Act.
             8      The act repeals the Residence Lien Restriction and Lien Recovery Fund Act and provides
             9      for the disbursement of moneys currently in the Residence Lien Recovery Fund. The act
             10      provides for transition provisions relating to the fund. This act provides an effective date.
             11      This act affects sections of Utah Code Annotated 1953 as follows:
             12      AMENDS:
             13          14-2-1, as last amended by Chapter 308, Laws of Utah 1994
             14          38-1-3, as last amended by Chapter 308, Laws of Utah 1994
             15          38-1-7, as last amended by Chapter 223, Laws of Utah 1999
             16          38-1-11, as last amended by Chapter 172, Laws of Utah 1995
             17          38-1-17, as last amended by Chapter 79, Laws of Utah 1996
             18          38-1-18, as last amended by Chapter 172, Laws of Utah 1995
             19          38-12-102 (Effective 07/01/01), as last amended by Chapter 252, Laws of Utah 2000
             20          58-55-401, as renumbered and amended by Chapters 181 and 308, Laws of Utah 1994
             21          58-55-501, as last amended by Chapters 233 and 317, Laws of Utah 2000
             22          58-55-502, as last amended by Chapter 317, Laws of Utah 2000
             23          63-38-3.2, as last amended by Chapter 13, Laws of Utah 1998
             24      REPEALS:
             25          38-11-101, as enacted by Chapter 308, Laws of Utah 1994
             26          38-11-102, as last amended by Chapter 193, Laws of Utah 1999
             27          38-11-103, as last amended by Chapter 172, Laws of Utah 1995


             28          38-11-104, as last amended by Chapter 172, Laws of Utah 1995
             29          38-11-105, as enacted by Chapter 308, Laws of Utah 1994
             30          38-11-106, as enacted by Chapter 308, Laws of Utah 1994
             31          38-11-107, as last amended by Chapter 49, Laws of Utah 1998
             32          38-11-108, as last amended by Chapter 79, Laws of Utah 1996
             33          38-11-109, as enacted by Chapter 193, Laws of Utah 1999
             34          38-11-201, as last amended by Chapter 172, Laws of Utah 1995
             35          38-11-202, as last amended by Chapter 193, Laws of Utah 1999
             36          38-11-203, as last amended by Chapter 193, Laws of Utah 1999
             37          38-11-204, as last amended by Chapter 193, Laws of Utah 1999
             38          38-11-205, as last amended by Chapter 193, Laws of Utah 1999
             39          38-11-206, as last amended by Chapters 28 and 172, Laws of Utah 1995
             40          38-11-207, as enacted by Chapter 308, Laws of Utah 1994
             41          38-11-301, as last amended by Chapter 146, Laws of Utah 1996
             42          38-11-302, as last amended by Chapters 20 and 172, Laws of Utah 1995
             43      This act enacts uncodified material.
             44      Be it enacted by the Legislature of the state of Utah:
             45          Section 1. Section 14-2-1 is amended to read:
             46           14-2-1. Definitions -- Payment bond required -- Right of action -- Notice -- Attorneys'
             47      fees.
             48          (1) For purposes of this chapter:
             49          (a) "Contractor" means any person who is or may be awarded a contract for the
             50      construction, alteration, or repair of any building, structure, or improvement upon land.
             51          (b) "Owner" means any person contracting for construction, alteration, or repair of any
             52      building, structure, or improvement upon land.
             53          (2) [(a) Except as provided in Subsection (2)(b), before] Before any contract exceeding
             54      $2,000 in amount for the construction, alteration, or repair of any building, structure, or
             55      improvement upon land is awarded to any contractor, the owner shall obtain from the contractor
             56      a payment bond complying with Subsection (3). The bond shall become binding upon the award
             57      of the contract to the contractor.
             58          [(b) An owner is exempted from the requirements of this section if a person otherwise


             59      eligible to file a lien under Title 38, Chapter 1, Mechanics' Liens, is barred from filing a mechanics'
             60      lien under Section 38-11-107 .]
             61          (3) The payment bond shall be with a surety or sureties satisfactory to the owner for the
             62      protection of all persons supplying labor, services, equipment, or material in the prosecution of the
             63      work provided for in the contract in a sum equal to the contract price.
             64          (4) A person shall have a right of action on a payment bond under this chapter for any
             65      unpaid amount due him if:
             66          (a) he has furnished labor, services, equipment, or material in the prosecution of the work
             67      provided for in the contract for which the payment bond is furnished under this chapter; and
             68          (b) he has not been paid in full within 90 days after the last day on which he performed the
             69      labor or service or supplied the equipment or material for which the claim is made.
             70          (5) An action under this section shall be brought in a court of competent jurisdiction in the
             71      county where the contract was to be performed and not elsewhere. The action is barred if not
             72      commenced within one year after the last day on which the claimant performed the labor or service
             73      or supplied the equipment or material on which the claim is based. The obligee named in the bond
             74      need not be joined as a party to the action. In any action upon a bond, the court may award
             75      reasonable attorneys' fees to the prevailing party, which fees shall be taxed as costs in the action.
             76          (6) The payment bond shall be exhibited to any interested person upon request.
             77          (7) In any suit upon a payment bond under this chapter, the court shall award reasonable
             78      attorneys' fees to the prevailing party.
             79          Section 2. Section 38-1-3 is amended to read:
             80           38-1-3. Those entitled to lien -- What may be attached.
             81          Contractors, subcontractors, and all persons performing any services or furnishing or
             82      renting any materials or equipment used in the construction, alteration, or improvement of any
             83      building or structure or improvement to any premises in any manner and licensed architects and
             84      engineers and artisans who have furnished designs, plats, plans, maps, specifications, drawings,
             85      estimates of cost, surveys or superintendence, or who have rendered other like professional service,
             86      or bestowed labor, shall have a lien upon the property upon or concerning which they have
             87      rendered service, performed labor, or furnished or rented materials or equipment for the value of
             88      the service rendered, labor performed, or materials or equipment furnished or rented by each
             89      respectively, whether at the instance of the owner or of any other person acting by his authority as


             90      agent, contractor, or otherwise [except as the lien is barred under Section 38-11-107 of the
             91      Residence Lien Restriction and Lien Recovery Fund Act]. This lien shall attach only to such
             92      interest as the owner may have in the property.
             93          Section 3. Section 38-1-7 is amended to read:
             94           38-1-7. Notice of claim -- Contents -- Recording -- Service on owner of property.
             95          (1) A person claiming benefits under this chapter shall file for record with the county
             96      recorder of the county in which the property, or some part of the property, is situated, a written
             97      notice to hold and claim a lien within 90 days from the date:
             98          (a) the person last performed labor or service or last furnished equipment or material on
             99      a project or improvement for a residence [as defined in Section 38-11-102 ]; or
             100          (b) of final completion of an original contract not involving a residence [as defined in
             101      Section 38-11-102 ].
             102          (2) The notice required by Subsection (1) shall contain a statement setting forth:
             103          (a) the name of the reputed owner if known or, if not known, the name of the record
             104      owner;
             105          (b) the name of the person by whom the lien claimant was employed or to whom the lien
             106      claimant furnished the equipment or material;
             107          (c) the time when the first and last labor or service was performed or the first and last
             108      equipment or material was furnished;
             109          (d) a description of the property, sufficient for identification;
             110          (e) the name, current address, and current phone number of the lien claimant;
             111          (f) the signature of the lien claimant or the lien claimant's authorized agent; and
             112          (g) an acknowledgment or certificate as required under Title 57, Chapter 3, Recording of
             113      Documents[; and].
             114          [(h) if the lien is on an owner-occupied residence, as defined in Section 38-11-102 , a
             115      statement describing what steps an owner, as defined in Section 38-11-102 , may take to require
             116      a lien claimant to remove the lien in accordance with Section 38-11-107 .]
             117          (3) Notwithstanding Subsection (2), an acknowledgment or certificate is not required for
             118      any notice filed after April 29, 1985, and before April 24, 1989.
             119          (4) (a) Within 30 days after filing the notice of lien, the lien claimant shall deliver or mail
             120      by certified mail a copy of the notice of lien to:


             121          (i) the reputed owner of the real property; or
             122          (ii) the record owner of the real property.
             123          (b) If the record owner's current address is not readily available to the lien claimant, the
             124      copy of the claim may be mailed to the last-known address of the record owner, using the names
             125      and addresses appearing on the last completed real property assessment rolls of the county where
             126      the affected property is located.
             127          (c) Failure to deliver or mail the notice of lien to the reputed owner or record owner
             128      precludes the lien claimant from an award of costs and attorneys' fees against the reputed owner
             129      or record owner in an action to enforce the lien.
             130          [(5) The Division of Occupational and Professional Licensing shall make rules governing
             131      the form of the statement required under Subsection (2)(h).]
             132          Section 4. Section 38-1-11 is amended to read:
             133           38-1-11. Enforcement -- Time for -- Lis pendens -- Action for debt not affected.
             134          (1) A lien claimant shall file an action to enforce the lien filed under this chapter within:
             135          (a) twelve months from the date of final completion of the original contract not involving
             136      a residence [as defined in Section 38-11-102 ]; or
             137          (b) 180 days from the date the lien claimant last performed labor and services or last
             138      furnished equipment or material for a residence[, as defined in Section 38-11-102 ].
             139          (2) (a) Within the time period provided for filing in Subsection (1) the lien claimant shall
             140      file for record with the county recorder of each county in which the lien is recorded a notice of the
             141      pendency of the action, in the manner provided in actions affecting the title or right to possession
             142      of real property, or the lien shall be void, except as to persons who have been made parties to the
             143      action and persons having actual knowledge of the commencement of the action.
             144          (b) The burden of proof shall be upon the lien claimant and those claiming under him to
             145      show actual knowledge.
             146          (3) This section may not be interpreted to impair or affect the right of any person to whom
             147      a debt may be due for any work done or materials furnished to maintain a personal action to
             148      recover the same.
             149          Section 5. Section 38-1-17 is amended to read:
             150           38-1-17. Costs -- Apportionment -- Costs and attorneys' fee to subcontractor.
             151          [Except as provided in Section 38-11-107 , as] As between the owner and the contractor the


             152      court shall apportion the costs according to the right of the case, but in all cases each subcontractor
             153      exhibiting a lien shall have his costs awarded to him, including the costs of preparing and
             154      recording the notice of claim of lien and such reasonable attorneys' fee as may be incurred in
             155      preparing and recording said notice of claim of lien.
             156          Section 6. Section 38-1-18 is amended to read:
             157           38-1-18. Attorneys' fees.
             158          [Except as provided in Section 38-11-107 , in] In any action brought to enforce any lien
             159      under this chapter the successful party shall be entitled to recover a reasonable attorneys' fee, to
             160      be fixed by the court, which shall be taxed as costs in the action.
             161          Section 7. Section 38-12-102 (Effective 07/01/01) is amended to read:
             162           38-12-102 (Effective 07/01/01). Notice requirements for lien filings -- Exceptions.
             163          (1) No later than 30 days after the day on which a lien claimant or the lien claimant's
             164      authorized agent files for recordation a notice of lien meeting the requirements of Subsection (2)
             165      with a county recorder, county clerk, or clerk of the court, a lien claimant or the lien claimant's
             166      agent shall send by certified mail a written copy of the notice of lien to the last-known address of
             167      the person against whom the notice of lien is filed.
             168          (2) The notice of lien shall contain the following information:
             169          (a) the name and address of the person against whom the lien is filed;
             170          (b) (i) a statement that certain property owned by the person against whom the lien is filed
             171      is subject to a lien;
             172          (ii) the amount of the judgment, settlement, or compromise if the lien is based on a charge
             173      against or interest in a judgment, settlement, or compromise; or
             174          (iii) the amount of state taxes owed;
             175          (c) the article number contained on the certified mail receipt;
             176          (d) the date the notice of lien was filed; and
             177          (e) the name and address of the lien claimant.
             178          (3) The notice requirements of Subsections (1) and (2) do not apply to a:
             179          (a) mechanics' lien as provided in Title 38, Chapter 1, Mechanics' Liens;
             180          (b) lessors' lien as provided in Title 38, Chapter 3, Lessors' Liens;
             181          (c) federal tax lien as provided in Title 38, Chapter 6, Federal Tax Liens;
             182          (d) hospital lien as provided in Title 38, Chapter 7, Hospital Lien Law;


             183          (e) self-service storage facilities lien as provided in Title 38, Chapter 8, Self-Service
             184      Storage Facilities;
             185          (f) oil, gas, or mining lien as provided in Title 38, Chapter 10, Oil, Gas, and Mining Liens;
             186          [(g) claim against the Residence Lien Recovery Fund as provided in Title 38, Chapter 11,
             187      Residence Lien Restriction and Lien Recovery Fund Act;]
             188          [(h)] (g) trust deed;
             189          [(i)] (h) mortgage;
             190          [(j)] (i) interests subject to a security agreement as defined in Section 70A-9a-102 ; or
             191          [(k)] (j) other liens subject to the same or stricter notice requirements than those imposed
             192      by Subsections (1) and (2).
             193          Section 8. Section 58-55-401 is amended to read:
             194           58-55-401. Grounds for denial of license and disciplinary proceedings.
             195          The division may refuse to issue a license to an applicant; refuse to renew the license of
             196      a licensee; [revoke the right of a licensee to recover from the Residence Lien Recovery Fund
             197      created by Section 38-11-201 ;] revoke, suspend, restrict, or place on probation the license of a
             198      licensee; issue a public or private reprimand to a licensee; and issue a cease and desist orders order,
             199      in accordance with Section 58-1-401 .
             200          Section 9. Section 58-55-501 is amended to read:
             201           58-55-501. Unlawful conduct.
             202          Unlawful conduct includes:
             203          (1) engaging in a construction trade, acting as a contractor, an alarm business or company,
             204      or an alarm company agent, or representing oneself to be engaged in a construction trade or to be
             205      acting as a contractor in a construction trade requiring licensure, unless the person doing any of
             206      these is appropriately licensed or exempted from licensure under this chapter;
             207          (2) acting in a construction trade, as an alarm business or company, or as an alarm
             208      company agent beyond the scope of the license held;
             209          (3) hiring or employing in any manner an unlicensed person, other than an employee for
             210      wages who is not required to be licensed under this chapter, to engage in a construction trade for
             211      which licensure is required or to act as a contractor or subcontractor in a construction trade
             212      requiring licensure;
             213          (4) applying for or obtaining a building permit either for oneself or another when not


             214      licensed or exempted from licensure as a contractor under this chapter;
             215          (5) issuing a building permit to any person for whom there is no evidence of a current
             216      license or exemption from licensure as a contractor under this chapter;
             217          (6) applying for or obtaining a building permit for the benefit of or on behalf of any other
             218      person who is required to be licensed under this chapter but who is not licensed or is otherwise not
             219      entitled to obtain or receive the benefit of the building permit;
             220          (7) failing to obtain a building permit when required by law or rule;
             221          (8) submitting a bid for any work for which a license is required under this chapter by a
             222      person not licensed or exempted from licensure as a contractor under this chapter;
             223          (9) willfully or deliberately misrepresenting or omitting a material fact in connection with
             224      an application to obtain or renew a license under this chapter;
             225          (10) allowing one's license to be used by another except as provided by statute or rule;
             226          (11) doing business under a name other than the name appearing on the license, except as
             227      permitted by statute or rule;
             228          (12) if licensed as a specialty contractor in the electrical trade or plumbing trade,
             229      journeyman plumber, residential journeyman plumber, journeyman electrician, master electrician,
             230      or residential electrician, failing to directly supervise an apprentice under one's supervision or
             231      exceeding the number of apprentices one is allowed to have under his supervision;
             232          (13) if licensed as a contractor or representing oneself to be a contractor, receiving any
             233      funds in payment for a specific project from an owner or any other person, which funds are to pay
             234      for work performed or materials and services furnished for that specific project, and after receiving
             235      the funds to exercise unauthorized control over the funds by failing to pay the full amounts due and
             236      payable to persons who performed work or furnished materials or services within a reasonable
             237      period of time;
             238          (14) employing as an alarm company an unlicensed individual as an alarm company agent,
             239      except as permitted under the exemption from licensure provisions under Section 58-1-307 ;
             240          (15) if licensed as an alarm company or alarm company agent, filing with the division
             241      fingerprint cards for an applicant which are not those of the applicant, or are in any other way false
             242      or fraudulent and intended to mislead the division in its consideration of the applicant for
             243      licensure;
             244          (16) if licensed under this chapter, willfully or deliberately disregarding or violating:


             245          (a) the building or construction laws of this state or any political subdivision;
             246          (b) the safety and labor laws applicable to a project;
             247          (c) any provision of the health laws applicable to a project;
             248          (d) the workers' compensation insurance laws of the state applicable to a project;
             249          (e) the laws governing withholdings for employee state and federal income taxes,
             250      unemployment taxes, FICA, or other required withholdings; or
             251          (f) reporting, notification, and filing laws of this state or the federal government; or
             252          (17) aiding or abetting any person in evading the provisions of this chapter or rules
             253      established under the authority of the division to govern this chapter[; or].
             254          [(18) engaging in the construction trade or as a contractor for the construction of
             255      residences of up to two units when not currently registered or exempt from registration as a
             256      qualified beneficiary under Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery
             257      Fund Act.]
             258          Section 10. Section 58-55-502 is amended to read:
             259           58-55-502. Unprofessional conduct.
             260          Unprofessional conduct includes:
             261          (1) failing to establish, maintain, or demonstrate financial responsibility while licensed as
             262      a contractor under this chapter;
             263          (2) disregarding or violating through gross negligence or a pattern of negligence:
             264          (a) the building or construction laws of this state or any political subdivision;
             265          (b) the safety and labor laws applicable to a project;
             266          (c) any provision of the health laws applicable to a project;
             267          (d) the workers' compensation insurance laws of this state applicable to a project;
             268          (e) the laws governing withholdings for employee state and federal income taxes,
             269      unemployment taxes, FICA, or other required withholdings; or
             270          (f) any reporting, notification, and filing laws of this state or the federal government;
             271          (3) any willful, fraudulent, or deceitful act by a licensee, caused by a licensee, or at a
             272      licensee's direction which causes material injury to another;
             273          (4) contract violations that pose a threat or potential threat to the public health, safety, and
             274      welfare including:
             275          (a) willful, deliberate, or grossly negligent departure from or disregard for plans or


             276      specifications, or abandonment or failure to complete a project without the consent of the owner
             277      or his duly authorized representative or the consent of any other person entitled to have the
             278      particular project completed in accordance with the plans, specifications, and contract terms;
             279          (b) failure to deposit funds to the benefit of an employee as required under any written
             280      contractual obligation the licensee has to the employee; and
             281          (c) failure to maintain in full force and effect any health insurance benefit to an employee
             282      that was extended as a part of any written contractual obligation or representation by the licensee,
             283      unless the employee is given written notice of the licensee's intent to cancel or reduce the insurance
             284      benefit at least 45 days before the effective date of the cancellation or reduction;
             285          [(d) failure to reimburse the Residence Lien Recovery Fund within 90 days after any
             286      disbursement from the fund resulting from the licensee's failure to pay qualified beneficiaries as
             287      provided in Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery Fund Act;]
             288          [(e) failure to provide, when applicable, the information required by Section 38-11-108 ;]
             289          [(f) willfully or deliberately misrepresenting or omitting a material fact in connection with
             290      an application to claim recovery from the Residence Lien Recovery Fund under Section
             291      38-11-204 ;]
             292          (5) failing as an alarm company to notify the division of the cessation of performance of
             293      its qualifying agent, or failing to replace its qualifying agent as required under Section 58-55-304 ;
             294          (6) failing as an alarm company agent to carry or display a copy of the licensee's license
             295      as required under Section 58-55-311 ; or
             296          (7) failing to comply with operating standards established by rule in accordance with
             297      Section 58-55-308 .
             298          Section 11. Section 63-38-3.2 is amended to read:
             299           63-38-3.2. Fees -- Adoption, procedure, and approval -- Establishing and assessing
             300      fees without legislative approval.
             301          (1) As used in this section:
             302          (a) (i) "Agency" means each department, commission, board, council, agency, institution,
             303      officer, corporation, fund, division, office, committee, authority, laboratory, library, unit, bureau,
             304      panel, or other administrative unit of the state.
             305          (ii) "Agency" does not mean the Legislature or its committees.
             306          (b) "Fee agency" means any agency that is authorized to establish regulatory fees.


             307          (c) "Fee schedule" means the complete list of regulatory fees charged by a fee agency and
             308      the amount of those fees.
             309          (d) "Regulatory fees" means fees established for licensure, registration, or certification.
             310          (2) Each fee agency shall:
             311          (a) adopt a schedule of fees assessed for services provided by the fee agency that are:
             312          (i) reasonable, fair, and reflect the cost of services provided; and
             313          (ii) established according to a cost formula determined by the director of the Office of
             314      Planning and Budget and the director of the Division of Finance in conjunction with the agency
             315      seeking to establish the regulatory fee;
             316          (b) conduct a public hearing on any proposed regulatory fee and increase or decrease the
             317      proposed regulatory fee based upon the results of the public hearing;
             318          (c) except as provided in Subsection (6), submit the fee schedule to the Legislature as part
             319      of the agency's annual appropriations request;
             320          (d) where necessary, modify the fee schedule to implement the Legislature's actions; and
             321          (e) deposit all regulatory fees collected under the fee schedule into the General Fund.
             322          (3) A fee agency may not:
             323          (a) set regulatory fees by rule; or
             324          (b) charge or collect any regulatory fee without approval by the Legislature unless the fee
             325      agency has complied with the procedures and requirements of Subsection (5).
             326          (4) The Legislature may approve, increase or decrease and approve, or reject any
             327      regulatory fee submitted to it by a fee agency.
             328          (5) (a) After the public hearing required by this section, a fee agency may establish and
             329      assess regulatory fees without legislative approval if:
             330          (i) the Legislature creates a new program that is to be funded by regulatory fees to be set
             331      by the Legislature; and
             332          (ii) the new program's effective date is before the Legislature's next annual general
             333      session[; or].
             334          [(iii) the Division of Occupational and Professional licensing makes a special assessment
             335      against qualified beneficiaries under the Residence Lien Restriction and Lien Recovery Fund Act
             336      as provided in Subsection 38-11-206 (1).]
             337          (b) Each fee agency shall submit its fee schedule or special assessment amount to the


             338      Legislature for its approval at a special session, if allowed in the governor's call, or at the next
             339      annual general session of the Legislature, whichever is sooner.
             340          (c) Unless the fee schedule is approved by the Legislature, the fee agency may not collect
             341      a regulatory fee set according to this Subsection (5) after the adjournment of the annual general
             342      session following the session that established the new program.
             343          (6) (a) Each fee agency that wishes to increase any regulatory fee by 5% or more shall
             344      obtain legislative approval for the fee increase as provided in this Subsection (6) before assessing
             345      the new regulatory fee.
             346          (b) Each fee agency that wishes to increase any regulatory fee by 5% or more shall submit
             347      to the governor as part of the agency's annual appropriation request a list that identifies:
             348          (i) the title or purpose of the regulatory fee;
             349          (ii) the present amount of the regulatory fee;
             350          (iii) the proposed new amount of the regulatory fee;
             351          (iv) the percent that the regulatory fee will have increased if the Legislature approves the
             352      higher fee; and
             353          (v) the reason for the increase in the regulatory fee.
             354          (c) (i) The governor may review and approve, modify and approve, or reject the regulatory
             355      fee increases.
             356          (ii) The governor shall transmit the list required by Subsection (6)(b), with any
             357      modifications, to the Legislative Fiscal Analyst with the governor's budget recommendations.
             358          (d) Bills approving any regulatory fee increases of 5% or more shall be filed before the
             359      beginning of the Legislature's annual general session, if possible.
             360          Section 12. Transition provisions.
             361          (1) Any claim against the Residence Lien Recovery Fund received by the Division of
             362      Occupational and Professional Licensing on or before June 30, 2001, shall be processed by the
             363      division in the manner provided by Title 38, Chapter 11, Residence Lien Restriction and Lien
             364      Recovery Fund Act, as it existed prior to July 1, 2001. If the division determines that the claimant
             365      is entitled to payment from the fund, and if there are sufficient moneys in the fund, the division
             366      shall pay the amount from the fund to which the claimant is entitled.
             367          (2) After all of the meritorious claims filed under Subsection (1) are paid, the division may
             368      use any moneys remaining in the fund for the following purposes:


             369          (a) education and training of licensees under Title 58, Chapter 55, Utah Construction
             370      Trades Licensing;
             371          (b) education and training of the public or other interested persons in matters concerning
             372      construction, construction trades, and the laws and rules governing the construction trades; and
             373          (c) enforcement of Title 58, Chapter 55, Utah Construction Trades Licensing Act by:
             374          (i) investigating unprofessional or unlawful conduct; and
             375          (ii) providing legal representation to the division when the division takes legal action
             376      against a person engaging in unprofessional or unlawful conduct.
             377          (3) Reporting requirements concerning the fund which existed prior to July 1, 2001, shall
             378      continue to be met until all moneys in the fund have been exhausted.
             379          Section 13. Repealer.
             380          This act repeals:
             381          Section 38-11-101, Title.
             382          Section 38-11-102, Definitions.
             383          Section 38-11-103, Administration.
             384          Section 38-11-104, Board.
             385          Section 38-11-105, Procedures established by rule.
             386          Section 38-11-106, State not liable.
             387          Section 38-11-107, Restrictions upon maintaining a lien against residence or owner's
             388      interest in the residence.
             389          Section 38-11-108, Notification of rights under chapter.
             390          Section 38-11-109, Severability clause.
             391          Section 38-11-201, Residence Lien Recovery Fund.
             392          Section 38-11-202, Payments to the fund.
             393          Section 38-11-203, Disbursements from the fund -- Limitations.
             394          Section 38-11-204, Claims against the fund -- Requirement to make a claim --
             395      Qualifications to receive compensation.
             396          Section 38-11-205, Subrogation.
             397          Section 38-11-206, Limitations on fund balance -- Payment of special assessments.
             398          Section 38-11-207, Reimbursement to the fund.
             399          Section 38-11-301, Registration as a qualified beneficiary -- Initial regular assessment


             400      -- Affidavit.
             401          Section 38-11-302, Effective date and term of registration -- Penalty for failure to pay
             402      assessments -- Reinstatement.
             403          Section 14. Effective date.
             404          This act takes effect on July 1, 2001.




Legislative Review Note
    as of 2-1-01 7:43 AM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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