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H.B. 126

             1     

STATE CONSTRUCTION REGISTRY

             2     
AMENDMENTS

             3     
2010 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: R. Curt Webb

             6     
Senate Sponsor: J. Stuart Adams

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies provisions relating to the state construction registry.
             11      Highlighted Provisions:
             12          This bill:
             13          .    eliminates the requirement to file a notice of commencement with respect to private
             14      construction projects;
             15          .    modifies who is required to file a preliminary notice;
             16          .    modifies provisions relating to the filing of a notice of commencement;
             17          .    requires documents transmitted to the state construction registry database to identify
             18      the county in which the project is located and the tax identification or parcel number
             19      of the property on which the project will occur;
             20          .    modifies requirements relating to the content of a building permit;
             21          .    repeals obsolete language; and
             22          .    makes technical changes.
             23      Monies Appropriated in this Bill:
             24          None
             25      Other Special Clauses:
             26          None
             27      Utah Code Sections Affected:


             28      AMENDS:
             29          38-1-27, as last amended by Laws of Utah 2009, Chapters 183 and 239
             30          38-1-30, as last amended by Laws of Utah 2008, Chapter 382
             31          38-1-31, as last amended by Laws of Utah 2009, Chapter 50
             32          38-1-32, as last amended by Laws of Utah 2009, Chapter 50
             33          38-1-33, as last amended by Laws of Utah 2009, Chapter 239
             34          38-1-37, as last amended by Laws of Utah 2005, Chapter 64
             35          58-56-20, as last amended by Laws of Utah 2009, Chapters 50 and 129
             36      REPEALS:
             37          38-1-36, as enacted by Laws of Utah 2004, Chapter 250
             38     
             39      Be it enacted by the Legislature of the state of Utah:
             40          Section 1. Section 38-1-27 is amended to read:
             41           38-1-27. State Construction Registry -- Form and contents of notice of
             42      commencement, preliminary notice, and notice of completion.
             43          (1) As used in this section, Sections 38-1-30 through 38-1-37 , and Section 38-1-40 :
             44          (a) "Alternate filing" means a legible and complete filing made in a manner established
             45      by the division under Subsection (2)(e) other than an electronic filing.
             46          (b) "Cancel" means to indicate that a filing is no longer given effect.
             47          (c) "Construction project," "project," or "improvement" means all labor, equipment,
             48      and materials provided:
             49          (i) under an original contract; or
             50          (ii) by, or under contracts with, an owner-builder.
             51          (d) "Database" means the State Construction Registry created in this section.
             52          (e) (i) "Designated agent" means the third party the Division of Occupational and
             53      Professional Licensing contracts with to create and maintain the State Construction Registry.
             54          (ii) The designated agent is not an agency, instrumentality, or a political subdivision of
             55      the state.
             56          (f) "Division" means the Division of Occupational and Professional Licensing.
             57          (g) "Government project" means a construction project undertaken by or for:
             58          (i) the state, including a department, division, or other agency of the state; or


             59          (ii) a county, city, town, school district, local district, special service district,
             60      community development and renewal agency, or other political subdivision of the state.
             61          [(g)] (h) "Interested person" means a person who may be affected by a construction
             62      project.
             63          (i) "Permitted project" means a private project for which a building permit is issued.
             64          (j) "Private project" means a construction project that is not a government project.
             65          [(h)] (k) "Program" means the State Construction Registry Program created in this
             66      section.
             67          (l) "Project-identifying information" means:
             68          (i) for a government project, the unique project number assigned by the designated
             69      agent;
             70          (ii) for a permitted project, the number of the building permit issued for the project;
             71      and
             72          (iii) for a private project that is not a permitted project:
             73          (A) the name of the county in which the property on which the project occurs or will
             74      occur is located; and
             75          (B) the tax identification or parcel number of that property.
             76          (2) Subject to receiving adequate funding through a legislative appropriation and
             77      contracting with an approved third party vendor who meets the requirements of Sections
             78      38-1-30 through 38-1-37 , there is created the State Construction Registry Program that shall:
             79          (a) (i) assist in protecting public health, safety, and welfare; and
             80          (ii) promote a fair working environment;
             81          (b) be overseen by the division with the assistance of the designated agent;
             82          (c) provide a central repository for notices of commencement, preliminary notices, and
             83      notices of completion filed in connection with all privately owned construction projects as well
             84      as all state and local government owned construction projects throughout [Utah] the state;
             85          (d) be accessible for filing and review by way of the program Internet website of:
             86          (i) notices of commencement;
             87          (ii) preliminary notices;
             88          (iii) a notice of intent to file notice of final completion;
             89          (iv) a notice for remaining amounts due to complete the contract; and


             90          (v) notices of completion;
             91          (e) accommodate:
             92          (i) electronic filing of the notices described in Subsection (2)(d); and
             93          (ii) alternate filing of the notices described in Subsection (2)(d) by U.S. mail, telefax,
             94      or any other alternate method as provided by rule made by the division in accordance with Title
             95      63G, Chapter 3, Utah Administrative Rulemaking Act;
             96          (f) (i) provide electronic notification for up to three e-mail addresses for each interested
             97      person or company who requests notice from the construction notice registry; and
             98          (ii) provide alternate means of notification for a person who makes an alternate filing,
             99      including U.S. mail, telefax, or any other method as prescribed by rule made by the division in
             100      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
             101          (g) provide hard-copy printing of electronic receipts for an individual filing evidencing
             102      the date and time of the individual filing and the content of the individual filing.
             103          (3) (a) The designated agent shall provide notice of all other filings for a project to any
             104      person who files a notice of commencement, preliminary notice, or notice of completion for
             105      that project, unless the person:
             106          (i) requests that the person not receive notice of other filings; or
             107          (ii) does not provide the designated agent with the person's contact information in a
             108      manner that adequately informs the designated agent.
             109          (b) An interested person may request notice of filings related to a project.
             110          (c) The database shall be indexed by:
             111          (i) owner name;
             112          (ii) original contractor name;
             113          (iii) subdivision, development, or other project name, if any;
             114          (iv) project address;
             115          [(v) lot or parcel number;]
             116          [(vi) unique project number assigned by the designated agent; and]
             117          (v) the project-identifying information; and
             118          [(vii)] (vi) any other identifier that the division considers reasonably appropriate in
             119      collaboration with the designated agent.
             120          (4) (a) In accordance with the process required by Section 63J-1-504 , the division shall


             121      establish the fees for:
             122          (i) a notice of commencement;
             123          (ii) a preliminary notice;
             124          (iii) a notice of intent to file notice of final completion;
             125          (iv) a notice for remaining amounts due to complete the contract;
             126          (v) a notice of completion;
             127          (vi) a request for notice;
             128          (vii) providing a required notice by an alternate method of delivery;
             129          (viii) a duplicate receipt of a filing; and
             130          (ix) account setup for a person who wishes to be billed periodically for filings with the
             131      database.
             132          (b) The fees allowed under Subsection (4)(a) may not exceed the amount reasonably
             133      necessary to create and maintain the database.
             134          (c) The fees established by the division may vary by method of filing if one form of
             135      filing is more costly to process than another form of filing.
             136          (d) The division may provide by contract that the designated agent may retain all fees
             137      collected by the designated agent except that the designated agent shall remit to the division the
             138      cost of the division's oversight under Subsection (2)(b).
             139          (5) (a) The database is classified as a public record under Title 63G, Chapter 2,
             140      Government Records Access and Management Act, unless otherwise classified by the division.
             141          (b) A request for information submitted to the designated agent is not subject to Title
             142      63G, Chapter 2, Government Records Access and Management Act.
             143          (c) Information contained in a public record contained in the database shall be
             144      requested from the designated agent.
             145          (d) The designated agent may charge a commercially reasonable fee allowed by the
             146      designated agent's contract with the division for providing information under Subsection (5)(c).
             147          (e) Notwithstanding Title 63G, Chapter 2, Government Records Access and
             148      Management Act, if information is available in a public record contained in the database, a
             149      person may not request the information from the division.
             150          (f) (i) A person may request information that is not a public record contained in the
             151      database from the division in accordance with Title 63G, Chapter 2, Government Records


             152      Access and Management Act.
             153          (ii) The division shall inform the designated agent of how to direct inquiries made to
             154      the designated agent for information that is not a public record contained in the database.
             155          (6) The following are not an adjudicative proceeding under Title 63G, Chapter 4,
             156      Administrative Procedures Act:
             157          (a) the filing of a notice permitted by this chapter;
             158          (b) the rejection of a filing permitted by this chapter; or
             159          (c) other action by the designated agent in connection with a filing of any notice
             160      permitted by this chapter.
             161          (7) The division and the designated agent need not determine the timeliness of any
             162      notice before filing the notice in the database.
             163          (8) (a) A person who is delinquent on the payment of a fee established under
             164      Subsection (4) may not file a notice with the database.
             165          (b) A determination that a person is delinquent on the payment of a fee for filing
             166      established under Subsection (4) shall be made in accordance with Title 63G, Chapter 4,
             167      Administrative Procedures Act.
             168          (c) Any order issued in a proceeding described in Subsection (8)(b) may prescribe the
             169      method of that person's payment of fees for filing notices with the database after issuance of the
             170      order.
             171          (9) If a notice is filed by a third party on behalf of another, the notice is considered to
             172      be filed by the person on whose behalf the notice is filed.
             173          (10) A person filing a notice of commencement, preliminary notice, or notice of
             174      completion is responsible for verifying the accuracy of information entered into the database,
             175      whether the person files electronically or by alternate or third party filing.
             176          (11) Each notice or other document that relates to a private project and is submitted for
             177      inclusion in the database shall contain the project-identifying information for the construction
             178      project to which the notice or other document relates.
             179          Section 2. Section 38-1-30 is amended to read:
             180           38-1-30. Third-party contract -- Designated agent.
             181          (1) The division shall contract in accordance with Title 63G, Chapter 6, Utah
             182      Procurement Code, with a third party to establish and maintain the database for the purposes


             183      established under this section, Section 38-1-27 , and Sections 38-1-31 through 38-1-37 .
             184          (2) (a) The third party under contract under this section is the division's designated
             185      agent, and shall develop and maintain a database from the information provided by:
             186          (i) local government entities issuing building permits;
             187          (ii) original contractors;
             188          (iii) subcontractors; and
             189          (iv) other interested persons.
             190          (b) The database shall accommodate filings by third parties on behalf of clients.
             191          (c) The division and the designated agent shall design, develop, and test the database
             192      for full implementation on May 1, 2005.
             193          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             194      division shall make rules and develop procedures for:
             195          (a) the division to oversee and enforce this section, Section 38-1-27 , and Sections
             196      38-1-31 through 38-1-37 ;
             197          (b) the designated agent to administer this section, Section 38-1-27 , and Sections
             198      38-1-31 through 38-1-37 ; and
             199          (c) the form of submission of an alternate filing, which may include procedures for
             200      rejecting an illegible or incomplete filing.
             201          (4) (a) The designated agent shall archive computer data files at least semiannually for
             202      auditing purposes.
             203          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             204      division shall make rules to allow the designated agent to periodically archive projects from the
             205      database.
             206          (c) A project shall be archived no earlier than:
             207          (i) one year after the day on which a notice of completion is filed for a project;
             208          (ii) if no notice of completion is filed, two years after the last filing activity for a
             209      project; or
             210          (iii) one year after the day on which a filing is cancelled under Subsection
             211      38-1-32 [(3)](4)(c) or 38-1-33 (2)(c).
             212          (d) The division may audit the designated agent's administration of the database as
             213      often as the division considers necessary.


             214          (5) The designated agent shall carry errors and omissions insurance in the amounts
             215      established by rule made by the division in accordance with Title 63G, Chapter 3, Utah
             216      Administrative Rulemaking Act.
             217          (6) (a) The designated agent shall make reasonable efforts to assure the accurate entry
             218      into the database of information provided in alternate filings.
             219          (b) The designated agent shall meet or exceed standards established by the division for
             220      the accuracy of data entry for alternate filings.
             221          (7) The designated agent is not liable for the correctness of the information contained
             222      in an alternate filing it enters into the database.
             223          Section 3. Section 38-1-31 is amended to read:
             224           38-1-31. Building permit -- Construction -- Notice registry -- Notice of
             225      commencement of work.
             226          (1) (a) (i) (A) For a construction project where a building permit is issued to an original
             227      contractor or owner-builder, no later than 15 days after the issuance of the building permit:
             228          (I) the local government entity issuing that building permit shall input the building
             229      permit application and transmit the building permit information to the database electronically
             230      by way of the Internet or computer modem or by any other means; or
             231          (II) the original contractor, owner, or owner-builder may file a notice of
             232      commencement with the database whether or not a building permit is issued or a notice of
             233      commencement is filed under Subsection (1)(a)(i)(A)(I).
             234          (B) The information submitted under Subsection (1)(a)(i)(A) forms the basis of a
             235      notice of commencement.
             236          (ii) The person to whom a building permit, filed under Subsection (1)(a)(i), is issued is
             237      responsible for the accuracy of the information in the building permit.
             238          (iii) For the purposes of classifying a record under Title 63G, Chapter 2, Government
             239      Records Access and Management Act, building permit information transmitted from a local
             240      governmental entity to the database shall be classified in the database by the division
             241      notwithstanding the local governmental entity's classification of the building permit
             242      information.
             243          (b) No later than 15 days after commencement of physical construction work at the
             244      project site, the original contractor, owner, or owner-builder may file a notice of


             245      commencement with the database whether or not a building permit is issued or a notice of
             246      commencement is filed under Subsection (1)(a).
             247          (c) An original contractor, owner, or owner-builder may file a notice of
             248      commencement with the designated agent [prior to] within either of the time frames
             249      established in Subsections (1)(a) and (b).
             250          (d) An owner of construction or an original contractor may file a notice of
             251      commencement with the designated agent within either of the time [prescribed by] frames
             252      established in Subsections (1)(a) and (b).
             253          (e) (i) If duplicate notices of commencement are filed, they shall be combined into one
             254      notice for each project and any notices filed relate back to the date of the earliest-filed notice of
             255      commencement for the project.
             256          (ii) A duplicate notice of commencement that is untimely filed relates back under
             257      Subsection (1)(e)(i) if the earlier filed notice of commencement is timely filed.
             258          (iii) Duplicate notices of commencement shall be automatically linked by the
             259      designated agent.
             260          (f) (i) The designated agent shall assign each [construction] government project a
             261      unique project number that:
             262          [(i)] (A) identifies each construction project; and
             263          [(ii)] (B) can be associated with all notices of commencement, preliminary notices, and
             264      notices of completion.
             265          (ii) The project-identifying information for a private project constitutes the unique
             266      project identifier that:
             267          (A) identifies the construction project; and
             268          (B) shall be associated with the preliminary notice and notice of completion.
             269          (g) A notice of commencement is effective only as to any labor, service, equipment,
             270      and material furnished to the construction project that is furnished subsequent to the filing of
             271      the notice of commencement.
             272          (2) (a) A notice of commencement shall include the following:
             273          (i) the name and address of the owner of the project;
             274          (ii) the name and address of the:
             275          (A) original contractor; and


             276          (B) surety providing any payment bond for the project, or if none exists, a statement
             277      that a payment bond was not required for the work being performed; and
             278          (iii) (A) the project address if the project can be reasonably identified by an address; or
             279          (B) the name and general description of the location of the project if the project cannot
             280      be reasonably identified by an address.
             281          (b) A notice of commencement may include:
             282          (i) a general description of the project; or
             283          (ii) the lot or parcel number, and any subdivision, development, or other project name,
             284      of the real property upon which the project is to be constructed if the project is subject to
             285      mechanics' liens.
             286          [(c) A notice of commencement need not include all of the items listed in Subsection
             287      (2)(a) if:]
             288          [(i) a building permit is issued for the project; and]
             289          [(ii) all items listed in Subsection (2)(a) that are available on the building permit are
             290      included in the notice of commencement.]
             291          (3) If a notice of commencement for a construction project is not filed within the time
             292      set forth in Subsections (1)(a) and (b), the following do not apply:
             293          (a) Section 38-1-32 ; and
             294          (b) Section 38-1-33 .
             295          (4) (a) Notwithstanding any other provision of this chapter, a notice of commencement
             296      need not be filed for a private project.
             297          (b) A provision of this chapter does not apply to a private project if the provision
             298      depends for its effectiveness upon the filing of a notice of commencement.
             299          [(4)] (5) (a) Unless a person indicates to the division or designated agent that the
             300      person does not wish to receive a notice under this section, electronic notice of the filing of a
             301      notice of commencement or alternate notice as prescribed in Subsection (1), shall be provided
             302      to:
             303          (i) all persons who have filed notices of commencement for the project; and
             304          (ii) all interested persons who have requested notices concerning the project.
             305          (b) (i) A person to whom notice is required under Subsection [(4)] (5)(a) is responsible
             306      for:


             307          (A) providing an e-mail address, mailing address, or telefax number to which a notice
             308      required by Subsection [(4)] (5)(a) is to be sent; and
             309          (B) the accuracy of any e-mail address, mailing address, or telefax number to which
             310      notice is to be sent.
             311          (ii) The designated agent fulfills the notice requirement of Subsection [(4)] (5)(a) when
             312      it sends the notice to the e-mail address, mailing address, or telefax number provided to the
             313      designated agent whether or not the notice is actually received.
             314          [(5)] (6) (a) The burden is upon any person seeking to enforce a notice of
             315      commencement to verify the accuracy of information in the notice of commencement and
             316      prove that the notice of commencement is filed timely and meets all of the requirements in this
             317      section.
             318          (b) A substantial inaccuracy in a notice of commencement renders the notice of
             319      commencement unenforceable.
             320          (c) A person filing a notice of commencement by alternate filing is responsible for
             321      verifying and changing any incorrect information in the notice of commencement before the
             322      expiration of the time period during which the notice is required to be filed.
             323          [(6)] (7) At the time a building permit is obtained, each original contractor shall
             324      conspicuously post at the project site a copy of the building permit obtained for the project.
             325          Section 4. Section 38-1-32 is amended to read:
             326           38-1-32. Preliminary notice by subcontractor.
             327          (1) As used in this section, "subcontractor":
             328          (a) for a private project, means a person who:
             329          (i) furnishes labor, service, equipment, or material to a private project; and
             330          (ii) is not:
             331          (A) the person identified on the building permit as the contractor for the project;
             332          (B) an owner-builder; or
             333          (C) a laborer compensated with wages; and
             334          (b) for a government project:
             335          (i) has the same meaning as provided in Section 38-1-2 ; and
             336          (ii) does not include:
             337          (A) a person who has a contract with an owner;


             338          (B) an owner-builder; or
             339          (C) a laborer compensated with wages.
             340          [(1) (a) (i) Except for a person who has a contract with an owner or an owner-builder
             341      or a laborer compensated with wages, a]
             342          (2) (a) (i) A subcontractor shall file a preliminary notice with the database:
             343          (A) for a private project, no later than 20 days after commencement of the
             344      subcontractor's work or the commencement of furnishing labor, service, equipment, or material
             345      to the private project; or
             346          (B) for a government project, by the later of:
             347          [(A)] (I) 20 days after commencement of [its own] the subcontractor's work or the
             348      commencement of furnishing labor, service, equipment, [and] or material to a construction
             349      project; or
             350          [(B)] (II) subject to Subsection (2)(e), 20 days after the filing of a notice of
             351      commencement if the subcontractor's work commences before the filing of the first notice of
             352      commencement.
             353          (ii) A preliminary notice filed within the period described in Subsection [(1)](2)(a)(i) is
             354      effective as to all labor, service, equipment, and material furnished to the construction project,
             355      including labor, service, equipment, and material provided to more than one contractor or
             356      subcontractor.
             357          (iii) (A) If more than one notice of commencement is filed for a government project, a
             358      person may attach a preliminary notice to any notice of commencement filed for the project by
             359      a party authorized in Section 38-1-31 .
             360          (B) A preliminary notice attached to an untimely notice of commencement is valid if
             361      there is also a valid and timely notice of commencement for the government project filed by a
             362      party authorized in Section 38-1-31 .
             363          (b) If a person files a preliminary notice after the period prescribed by Subsection
             364      [(1)(a)] (2)(a)(i), the preliminary notice becomes effective five days after the day on which the
             365      preliminary notice is filed.
             366          (c) Except as provided in Subsection [(1)] (2)(e), failure to file a preliminary notice
             367      within the period required by Subsection [(1)] (2)(a)(i) precludes a person from maintaining
             368      any claim for compensation earned for performance of labor or service or supply of materials


             369      or equipment furnished to the construction project before the expiration of five days after the
             370      late filing of a preliminary notice, except as against the person with whom the person
             371      contracted.
             372          (d) (i) (A) [If a person who is required to file a preliminary notice under this chapter] A
             373      subcontractor on a private project who fails to file [the] a preliminary notice[, that person] may
             374      not hold a valid lien under this chapter.
             375          (B) A county recorder need not verify that a valid preliminary notice is filed when a
             376      person files a notice to hold and claim a lien under Section 38-1-7 .
             377          (ii) [The content of a] A preliminary notice shall include:
             378          [(A) the building permit number for the project, or the number assigned to the project
             379      by the designated agent;]
             380          (A) the project-identifying information;
             381          (B) the name, address, and telephone number of the person furnishing the labor,
             382      service, equipment, or material; and
             383          (C) the name and address of the person who contracted with the claimant for the
             384      furnishing of the labor, service, equipment, or material[;].
             385          [(D) the name of the record or reputed owner of the project;]
             386          [(E) the name of the original contractor under which the claimant is performing or will
             387      perform its work; and]
             388          [(F) the address of the project or a description of the location of the project.]
             389          (iii) Upon request by person identified in Subsection [(1)] (2)(a)(i), an original
             390      contractor shall provide the person with the building permit number for the project, or the
             391      number assigned to the project by the designated agent.
             392          (e) [If a person provides labor, service, equipment, or material before the filing of a
             393      notice of commencement and the notice of commencement is filed more than 15 days after the
             394      day on which the person providing labor, service, equipment, or material begins work on the
             395      project, the person] A subcontractor providing labor, service, equipment, or material for a
             396      government project need not file a preliminary notice to maintain [the person's right to hold a
             397      lien under this chapter or] any [other] right, including a right referenced under Subsection [(1)]
             398      (2)(c), if:
             399          (i) the subcontractor provides labor, service, equipment, or material before the filing of


             400      a notice of commencement; and
             401          (ii) the notice of commencement is filed more than 15 days after the day on which the
             402      subcontractor providing labor, service, equipment, or material begins work on the project.
             403          [(2)] (3) (a) (i) Unless a person indicates to the division or designated agent that the
             404      person does not wish to receive a notice under this section, electronic notification of the filing
             405      of a preliminary notice or alternate notice as prescribed in Subsection [(1)] (2), shall be
             406      provided to:
             407          (A) the person filing the preliminary notice;
             408          (B) each person that filed a notice of commencement for the project; and
             409          (C) all interested persons who have requested notices concerning the project.
             410          (ii) A person to whom notice is required under Subsection [(2)] (3)(a)(i) is responsible
             411      for:
             412          (A) providing an e-mail address, mailing address, or telefax number to which a notice
             413      required by Subsection [(2)] (3)(a) is to be sent; and
             414          (B) the accuracy of any e-mail address, mailing address, or telefax number to which
             415      notice is to be sent.
             416          (iii) The designated agent fulfills the notice requirement of Subsection [(2)] (3)(a)(i)
             417      when it sends the notice to the e-mail address, mailing address, or telefax number provided to
             418      the designated agent whether or not the notice is actually received.
             419          (b) The burden is upon the person filing the preliminary notice to prove that the person
             420      has substantially complied with the requirements of this section.
             421          (c) Subject to Subsection [(2)] (3)(d), a person required by this section to give
             422      preliminary notice is only required to give one notice for each project.
             423          (d) If the labor, service, equipment, or material is furnished pursuant to contracts under
             424      more than one original contract, the notice requirements must be met with respect to the labor,
             425      service, equipment, or material furnished under each original contract.
             426          [(3)] (4) (a) If a construction project owner, original contractor, subcontractor, or other
             427      interested person believes that a preliminary notice has been filed erroneously, that owner,
             428      original contractor, subcontractor, or other interested person can request from the person who
             429      filed the preliminary notice evidence establishing the validity of the preliminary notice.
             430          (b) Within 10 days after the request described in Subsection [(3)] (4)(a), the person or


             431      entity that filed the preliminary notice shall provide the requesting person or entity proof that
             432      the preliminary notice is valid.
             433          (c) If the person or entity that filed the preliminary notice does not provide proof of the
             434      validity of the preliminary notice, that person or entity shall immediately cancel the preliminary
             435      notice from the database in any manner prescribed by the division pursuant to rule.
             436          [(4)] (5) A person filing a preliminary notice by alternate filing is responsible for
             437      verifying and changing any incorrect information in the preliminary notice before the
             438      expiration of the time period during which the notice is required to be filed.
             439          [(5) Until June 1, 2008, nothing in this section affects a person's rights under Title 38,
             440      Chapter 11, Residence Lien Restriction and Lien Recovery Fund Act.]
             441          Section 5. Section 38-1-33 is amended to read:
             442           38-1-33. Notice of completion.
             443          (1) (a) Upon final completion of a construction project, and in accordance with Section
             444      38-1-40 , the following with a construction project registered with the database may file a notice
             445      of completion with the database:
             446          (i) an owner of the construction project;
             447          (ii) an original contractor of the construction project;
             448          (iii) a lender that has provided financing for the construction project;
             449          (iv) a surety that has provided bonding for the construction project; or
             450          (v) a title company issuing a title insurance policy on the construction project[;].
             451          [(vi) a lender that has provided financing for the construction project;]
             452          [(vii) a surety that has provided bonding for the construction project; or]
             453          [(viii) a title company issuing a title insurance policy on the construction project.]
             454          (b) Notwithstanding Section 38-1-2 , if a subcontractor performs substantial work after
             455      the applicable dates established by Subsection (1)(a), that subcontractor's subcontract is
             456      considered an original contract for the sole purpose of determining:
             457          (i) the subcontractor's time frame to file a notice to hold and claim a lien under
             458      Subsection 38-1-7 (1); and
             459          (ii) the original contractor's time frame to file a notice to hold and claim a lien under
             460      Subsection 38-1-7 (1) for that subcontractor's work.
             461          (c) A notice of completion shall include:


             462          [(i) the building permit number for the project, or the number assigned to the project by
             463      the designated agent;]
             464          (i) the project-identifying information;
             465          (ii) the name, address, and telephone number of the person filing the notice of
             466      completion;
             467          [(iii) the name of the original contractor for the project;]
             468          [(iv) the address of the project or a description of the location of the project;]
             469          [(v)] (iii) the date on which final completion is alleged to have occurred; and
             470          [(vi)] (iv) the method used to determine final completion.
             471          (d) For purposes of this section, final completion of the original contract does not occur
             472      if work remains to be completed for which the owner is holding payment to ensure completion
             473      of the work.
             474          (e) (i) Unless a person indicates to the division or designated agent that the person does
             475      not wish to receive a notice under this section, electronic notification of the filing of a notice of
             476      completion or alternate notice as prescribed in Subsection (1)(a), shall be provided to:
             477          (A) each person that filed a notice of commencement for the project;
             478          (B) each person that filed preliminary notice for the project; and
             479          (C) all interested persons who have requested notices concerning the project.
             480          (ii) A person to whom notice is required under this Subsection (1)(e) is responsible for:
             481          (A) providing an e-mail address, mailing address, or telefax number to which a notice
             482      required by this Subsection (1)(e) is to be sent; and
             483          (B) the accuracy of any e-mail address, mailing address, or telefax number to which
             484      notice is to be sent.
             485          (iii) The designated agent fulfills the notice requirement of Subsection (1)(e)(i) when it
             486      sends the notice to the e-mail address, mailing address, or telefax number provided to the
             487      designated agent, whether or not the notice is actually received.
             488          (iv) Upon the filing of a notice of completion, the time periods for filing preliminary
             489      notices stated in Section 38-1-27 are modified such that all preliminary notices shall be filed
             490      subsequent to the notice of completion and within 10 days from the day on which the notice of
             491      completion is filed.
             492          (f) A subcontract that is considered an original contract for purposes of this section


             493      does not create a requirement for an additional preliminary notice if a preliminary notice has
             494      already been given for the labor, service, equipment, and material furnished to the
             495      subcontractor who performs substantial work.
             496          (2) (a) If a construction project owner, original contractor, subcontractor, or other
             497      interested person believes that a notice of completion has been filed erroneously, that owner,
             498      original contractor, subcontractor, or other interested person can request from the person who
             499      filed the notice of completion evidence establishing the validity of the notice of completion.
             500          (b) Within 10 days after the request described in Subsection (2)(a), the person who
             501      filed the notice of completion shall provide the requesting person proof that the notice of
             502      completion is valid.
             503          (c) If the person that filed the notice of completion does not provide proof of the
             504      validity of the notice of completion, that person shall immediately cancel the notice of
             505      completion from the database in any manner prescribed by the division pursuant to rule.
             506          (3) A person filing a notice of completion by alternate filing is responsible for verifying
             507      and changing any incorrect information in the notice of completion before the expiration of the
             508      time period during which the notice is required to be filed.
             509          Section 6. Section 38-1-37 is amended to read:
             510           38-1-37. Application of Section 38-1-27 and Sections 38-1-30 through 38-1-35.
             511          (1) Except as provided in Subsection (3), Section 38-1-27 and Sections 38-1-30
             512      through [ 38-1-36 ] 38-1-35 in effect as of May 1, 2005 [shall] apply to construction projects for
             513      which a notice of commencement is filed on or after May 1, 2005.
             514          (2) A construction project for which a notice of commencement is filed before May 1,
             515      2005 is subject to the provisions of this chapter in effect prior to May 1, 2005.
             516          (3) (a) Section 38-1-27 and Sections 38-1-30 through [ 38-1-36 ] 38-1-35 in effect as of
             517      May 1, 2005, [shall] apply to a construction project for which a notice of commencement is
             518      filed on or after November 1, 2005 involving a residence, as defined in Subsection
             519      38-11-102 (22).
             520          (b) For a construction project for which a notice of commencement is filed before
             521      November 1, 2005 involving a residence, as defined in Subsection 38-11-102 (22), the law in
             522      effect on April 30, 2005 [shall govern] governs.
             523          Section 7. Section 58-56-20 is amended to read:


             524           58-56-20. Standardized building permit content.
             525          (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             526      division shall adopt a standardized building permit form by rule.
             527          (2) (a) The standardized building permit form created under Subsection (1) shall
             528      include fields for indicating the following information:
             529          (i) the name and address of:
             530          (A) the owner of [or] the project; and
             531          (B) the contractor for the project;
             532          (ii) (A) the address of the project; or
             533          (B) a general description of the project; [and]
             534          (iii) the county in which the project is located;
             535          (iv) the tax identification or parcel number of the property on which the project will
             536      occur; and
             537          [(iii)] (v) whether the permit applicant is an original contractor or owner-builder.
             538          (b) The standardized building permit form created under Subsection (1) may include
             539      any other information the division considers useful.
             540          (3) (a) A compliance agency shall issue a permit for construction only on a
             541      standardized building permit form approved by the division.
             542          (b) A permit for construction issued by a compliance agency under Subsection (3)(a)
             543      shall print the standardized building permit number assigned under Section 58-56-19 in the
             544      upper right-hand corner of the building permit form in at least 12-point type.
             545          (c) (i) Except as provided in Subsection (3)(c)(ii), a compliance agency may not issue a
             546      permit for construction if the information required by Subsection (2)(a) is not completed on the
             547      building permit form.
             548          (ii) If a compliance agency does not issue a separate permit for different aspects of the
             549      same project, the compliance agency may issue a permit for construction without the
             550      information required by Subsection (2)(a)[(iii)](v).
             551          (d) A compliance agency may require additional information for the issuance of a
             552      permit for construction.
             553          (4) A local regulator issuing a single-family residential building permit application
             554      shall include in the application or attach to the building permit the following notice


             555      prominently placed in at least 14-point font: "Decisions relative to this application are subject
             556      to review by the chief executive officer of the municipal or county entity issuing the
             557      single-family residential building permit and appeal under the International Residential Code."
             558          Section 8. Repealer.
             559          This bill repeals:
             560          Section 38-1-36, Construction notice does not impart notice.




Legislative Review Note
    as of 1-29-10 11:54 AM


Office of Legislative Research and General Counsel


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