Download Zipped Introduced WP 9 HB0078S3.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

Third Substitute H.B. 78

Representative Gordon E. Snow proposes the following substitute bill:


             1     
LIEN RECOVERY FUND - RATE OF

             2     
INTEREST

             3     
2003 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Gordon E. Snow

             6      This act modifies the lien recovery fund provisions of the Liens Code. The act changes
             7      the set interest rate to the current interest rate. The act also limits the amount of
             8      attorney's fees to 15% of the original judgement.
             9      This act affects sections of Utah Code Annotated 1953 as follows:
             10      AMENDS:
             11          38-11-203, as last amended by Chapter 198, Laws of Utah 2001
             12      Be it enacted by the Legislature of the state of Utah:
             13          Section 1. Section 38-11-203 is amended to read:
             14           38-11-203. Disbursements from the fund -- Limitations.
             15          (1) A payment of any claim upon the fund by a qualified beneficiary shall be made only
             16      upon an order issued by the director finding that:
             17          (a) the claimant was a qualified beneficiary during the construction on a residence;
             18          (b) the claimant complied with the requirements of Section 38-11-204 ; and
             19          (c) there is adequate money in the fund to pay the amount ordered.
             20          (2) A payment of a claim upon the fund by a laborer shall be made only upon an order
             21      issued by the director finding that:
             22          (a) the laborer complied with the requirements of Subsection 38-11-204 (6); and
             23          (b) there is adequate money in the fund to pay the amount ordered.
             24          (3) (a) An order under this section may be issued only after the division has complied
             25      with the procedures established by rule under Section 38-11-105 .


             26          (b) The director shall order payment of the qualified services as established by
             27      evidence, or if the claimant has obtained a judgment, then in the amount awarded for qualified
             28      services in the judgment to the extent the qualified services are attributable to the
             29      owner-occupied residence at issue in the claim.
             30          (c) The director shall order payment of interest on all amounts claimed for qualified
             31      services based on the current prime interest rate at the [rate of 12%, annual percentage rate,
             32      from the date] time payment was due to the date the claim is approved for payment except for
             33      delays attributable to the claimant.
             34          (d) The rate shall be the Prime Lending Rate as published in the Wall Street Journal on
             35      the first business day of each calendar year adjusted annually.
             36          [(d)] (e) The director shall order payment of costs in the amount stated in the judgment.
             37      If the judgment does not state a sum certain for costs, or if no judgment has been obtained, the
             38      director shall order payment of reasonable costs as supported by evidence. The claim
             39      application fee as established by the division pursuant to Subsection 38-11-204 (1)(b) is not a
             40      reimbursable cost.
             41          [(e) The director shall order payment of attorney's fees in the amount stated in a
             42      judgment.]
             43          (f) If a judgment has been obtained with attorneys' fees, notwithstanding the amount
             44      stated in a judgment, or if no judgment has been obtained but the contract provides for
             45      attorneys' fees, the director shall order payment of attorneys' fees not to exceed 15% of
             46      qualified services. If the judgment does not state a sum for attorneys' fees, no attorneys' will be
             47      paid by the director.
             48          (4) (a) Payments made from the fund may not exceed $75,000 per construction project
             49      to all qualified beneficiaries and laborers who have claim against the fund for that construction
             50      project.
             51          (b) If claims against the fund for a construction project exceed $75,000, the $75,000
             52      shall be awarded proportionately so that each qualified beneficiary and laborer awarded
             53      compensation from the fund for qualified services shall receive an identical percentage of the
             54      qualified beneficiary's or laborer's award.
             55          (5) Subject to the limitations of Subsection (4), if on the day the order is issued there
             56      are inadequate funds to pay the entire claim and the director determines that the claimant has


             57      otherwise met the requirements of Subsection (1) or (2), the director shall order additional
             58      payments once the fund meets the balance limitations of Section 38-11-206 .
             59          (6) The Executive Director of the Department of Commerce shall initiate a study to
             60      determine the viability of the Lien Recovery Fund.


[Bill Documents][Bills Directory]