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First Substitute H.B. 182

This document includes House Floor Amendments incorporated into the bill on Fri, Feb 6, 2004 at 11:25 AM by kholt. --> This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Mon, Mar 1, 2004 at 11:56 AM by rday. -->

Representative Stephen D. Clark proposes the following substitute bill:


             1     
CONSTRUCTION LIEN AMENDMENTS

             2     
2004 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Stephen D. Clark

             5     
             6      LONG TITLE
             7      General Description:
             8          This bill modifies the Liens Code.
             9      Highlighted Provisions:
             10          This bill:
             11          .    requires a 15 day advance written notice to the person or entity the claimant
             12      supplied labor, materials, equipment, or services stating the amount of any claim
             13      and from whom it is due; and
             14          .    applies to liens filed on or after July 1, 2004.
             15      Monies Appropriated in this Bill:
             16          None
             17      Other Special Clauses:
             18          None
             19      Utah Code Sections Affected:
             20      AMENDS:
             21          38-1-11, as last amended by Chapter 198, Laws of Utah 2001
             22      ENACTS:
             23          38-1-30, Utah Code Annotated 1953
             24     
             25      Be it enacted by the Legislature of the state of Utah:


             26          Section 1. Section 38-1-11 is amended to read:
             27           38-1-11. Enforcement -- Time for -- Lis pendens -- Action for debt not affected --
             28      Instructions and form affidavit and motion.
             29          (1) S [ [ ] A [ ] ] [ After a lien claimant provides a written notice pursuant to Section 38-1-30 , a ] s
             30      lien claimant shall file an action to enforce the lien filed under this chapter within:
             31          (a) 12 months from the date of final completion of the original contract not involving a
             32      residence as defined in Section 38-11-102 ; or
             33          (b) 180 days from the date the lien claimant last performed labor and services or last
             34      furnished equipment or material for a residence, as defined in Section 38-11-102 .
             35          (2) (a) Within the time period provided for filing in Subsection (1) the lien claimant
             36      shall file for record with the county recorder of each county in which the lien is recorded a
             37      notice of the pendency of the action, in the manner provided in actions affecting the title or
             38      right to possession of real property, or the lien shall be void, except as to persons who have
             39      been made parties to the action and persons having actual knowledge of the commencement of
             40      the action.
             41          (b) The burden of proof shall be upon the lien claimant and those claiming under him
             42      to show actual knowledge.
             43          (3) This section may not be interpreted to impair or affect the right of any person to
             44      whom a debt may be due for any work done or materials furnished to maintain a personal
             45      action to recover the same.
             46          (4) (a) If a lien claimant files an action to enforce a lien filed under this chapter
             47      involving a residence, as defined in Section 38-11-102 , the lien claimant shall include with the
             48      service of the complaint on the owner of the residence:
             49          (i) instructions to the owner of the residence relating to the owner's rights under Title
             50      38, Chapter 11, Residence Lien Restriction and Lien Recovery Fund Act; and
             51          (ii) a form affidavit and motion for summary judgment to enable the owner of the
             52      residence to specify the grounds upon which the owner may exercise available rights under
             53      Title 38, Chapter 11, Residence Lien Restriction and Lien Recovery Fund Act.
             54          (b) The lien claimant may file a notice to submit for decision on the motion for
             55      summary judgment. The motion may be ruled upon after the service of the summons and
             56      complaint upon the nonpaying party, as defined in Section 38-11-102 , and the time for the


             57      nonpaying party to respond, as provided in the Utah Rules of Civil Procedure, has elapsed.
             58          (c) The instructions and form affidavit and motion required by Subsection (4)(a) shall
             59      meet the requirements established by rule by the Division of Occupational and Professional
             60      Licensing in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
             61          (d) If the nonpaying party, as defined by Section 38-11-102 , files for bankruptcy
             62      protection and there is a bankruptcy stay in effect, the motion for summary judgment and the
             63      action to enforce the lien shall be stayed until resolution of the related claim under Title 38,
             64      Chapter 11, Residence Lien Restriction and Lien Recovery Fund Act.
             65          (e) If a lien claimant fails to provide to the owner of the residence the instructions and
             66      form affidavit required by Subsection (4)(a), the lien claimant shall be barred from maintaining
             67      or enforcing the lien upon the residence.
             68          (5) The written notice requirement applies to liens filed on or after July 1, 2004.
             69          Section 2. Section 38-1-30 is enacted to read:
             70          38-1-30. Lien notification.
             71          (1) Before filing a mechanics lien pursuant to Section S [ 38-1-11 ] 38-1-7 s , the person or
             71a      entity
             72      claiming a lien shall give h NOT LESS THAN h 15 business days written notice by signature
             72a      confirmation mail to the
             73      person or entity to whom the lien claimant supplied labor, materials, equipment, or services for
             74      the improvement of real property, stating the amount of any claim and from whom it is due.
             74a           H (2) FAILURE TO GIVE NOTICE AS PROVIDED IN THIS SECTION DOES NOT IMPAIR THE
             74b      RIGHT OF THE LIEN CLAIMANT TO FILE A LIEN. h
             75           H [ (2) ] (3) h This section applies to liens filed on or after July 1, 2004.


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