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MINUTES OF THE

HOUSE JUDICIARY STANDING COMMITTEE MEETING

Room 223 - State Capitol Building

February 3, 2004


MEMBERS PRESENT:    Rep. Ben C. Ferry, Chair
        Rep. J. Stuart Adams, Vice Chair    
        Rep. Chad E. Bennion
        Rep. Katherine M. Bryson
        Rep. Scott Daniels
        Rep. Neal B. Hendrickson
        Rep. Eric K. Hutchings
        Rep. M. Susan Lawrence
        Rep. Dana C. Love
        Rep. Rosalind J. McGee
        Rep. J. Morgan Philpot
        Rep. Mike Thompson        
        
MEMBERS ABSENT:    Rep. Greg J. Curtis

STAFF:    Jerry D. Howe, Policy Analyst
        Cherri White, Committee Secretary            

NOTE:    A list of visitors and handouts are filed with the committee minutes.

    Representative Love called the meeting to order at 8:17 a.m.


S.B. 84    Party to Felony Offense Enhancement (Sen. M. Waddoups)

    The sponsor introduced the bill and explained its intent. (See handouts on file)

    Patrick Nolan, Utah Attorney General's Office assisted in the presentation.

MOTION:    Representative Hutchings moved to pass the bill out favorably. The motion passed unanimously with Representatives Bennion, Bryson, Curtis, Hendrickson, Thompson, and Adams absent for the vote.

H.B. 234    Sunset Extension on Unauthorized Practice of Law (Rep. S. Urquhart)

    The sponsor introduced the bill and explained its intent.

    Speaking in favor of the bill:
        John T. Nielsen, Utah State Bar Association
        Rick Schwermer, Administrative Office of the Courts

MOTION:    Representative Bryson moved to pass the bill out favorably. The motion passed

unanimously with Representatives Curtis and Thompson absent for the vote.

    Representative Love turned the chair back to Chairman Ferry at 8:45 a.m.

H.B. 42    Interest Rates on Judgments (Rep. J. Dunnigan)

    The sponsor indicated that a substitute H.B. 42 had been prepared and he wished the committee's consideration and adoption. (See handouts on file)

MOTION:    Representative Bennion moved to delete H.B. 42 and replace it with 1st Substitute H.B. 42. The motion passed unanimously with Representatives Curtis and Thompson absent for the vote.
    The following members of the public spoke to 1st Substitute H.B. 42:
        Rick Schwermer, Administrative Office of the Courts
        Jody Hoffman, Utah League of Cities and Towns
        Gary Thorup, National Association of Independent Insurers
    Speaking in favor of 1st Substitute H.B. 42:
        Jim Olsen, Utah Retail Merchants Association
        Robin Riggs, Utah Chamber of Commerce
        Roger Hoole, Private Attorney
        Harold Peterson, Farmers Insurance
    Speaking in favor of amending 1st Substitute H.B. 42:
        Doug Mortensen, Utah Trial Lawyers Association

    Representative Daniels declared a conflict of interest.

MOTION:    Representative Daniels moved to amend:

1.     Page 1, Line 20:    After line 20, insert " 15-1-1, as last amended by Chapter 79, Laws of Utah 1989"

2.    Page 1, Line 22:    After line 22, insert:
        "Section 1. Section 15-1-1 is amended to read:
         15-1-1.   Interest rates -- Contracted rate -- Legal rate.
        (1) The parties to a lawful contract may agree upon any rate of interest for the loan or forbearance of any money, goods, or chose in action that is the subject of their contract.
        (2) Unless parties to a lawful contract specify a different rate of interest, the legal rate of interest for the loan or forbearance of any money, goods, or chose in action shall be [10% per annum] at the interest rate established for the federal court system under 28 U.S.C. Sec. 1961, as of January 1 of each year, plus 4%.

        (3) Nothing in this section may be construed in any way to affect any penalty or interest charge that by law applies to delinquent or other taxes or to any contract or obligations made before May [14, 1981] 3, 2004."

3.     Page 1, Line 23:    After "Section" delete "1" and insert "2"

SUBSTITUTE
MOTION:    Representative Love moved to pass 1st Substitute H.B. 42 out favorably. The substitute motion passed 9-2-2, with Representatives Bennion and Daniels voting against the motion, and Representatives Curtis and Thompson absent for the vote.

H.B. 96    Statute of Repose (Rep. J. S. Adams)

MOTION:    Representative Adams moved to amend:

1.    Page 1, line 8:    After "twelve to" delete "six" and insert "eight"

2.    Page 1, line 12:    After "property to" delete "six" and insert "eight"

3.    Page 3, line 68:    After [12] delete "six" and insert "eight"

4.    Page 3, line 70:    After [12] delete "six" and insert "eight"

    The motion passed unanimously with Representatives Bryson, Curtis, Lawrence and Thompson absent for the vote.

    Brian King, Utah Trial Lawyers Association, spoke to the bill.
    Terry Buckner, Construction Liability Insurance Providers, spoke in favor of the bill.

MOTION:    Representative Bennion moved to pass the bill out favorably as amended. The motion passed unanimously with Representatives Bryson, Curtis, and Thompson absent for the vote.

MOTION:    Representative Love moved to adjourn. The motion passed unanimously with Representatives Bryson, Curtis, and Thompson absent for the vote. The meeting adjourned at 10:03 a.m.




                ___________________________________
Rep. Ben C. Ferry, Chair