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Third Substitute H.B. 260

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Thu, Mar 10, 2011 at 9:20 PM by rday. -->

Senator Scott K. Jenkins proposes the following substitute bill:


             1     
MECHANICS' LIENS REVISIONS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: David Clark

             5     
Senate Sponsor: John L. Valentine

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions relating to mechanics' liens.
             10      Highlighted Provisions:
             11          This bill:
             12          .    provides priority between construction loans and mechanics' liens;
             13          .    modifies provisions related to the State Construction Registry;
             14          .    modifies the information by which the State Construction Registry is to be indexed;
             15          .    requires each notice or document submitted for inclusion in the State Construction
             16      Registry to contain specified information;
             17          .    modifies provisions related to building permits and notices of commencement;
             18          .    modifies requirements related to the filing of a preliminary notice;
             19          .    eliminates the requirement to file a notice of commencement on a private project;
             20          .    requires the original contractor and each subcontractor on a private project to file a
             21      preliminary notice;
             22          .    prohibits an original contractor or subcontractor who fails to file a preliminary
             23      notice on a private project from claiming a mechanics' lien;
             24          .    requires a construction lender to file with the database a notice of construction loan
             25      and, if a default occurs, a notice of default relating to a construction loan;


             26          .    repeals obsolete language;
             27          .    modifies the requirements for a notice of completion;
             28          .    modifies the requirements related to a standardized building permit form; and
             29          .    makes technical changes.
             30      Money Appropriated in this Bill:
             31          None
             32      Other Special Clauses:
             33          This bill takes effect on August 1, 2011.
             34          This bill coordinates with H.B. 203, Codification of State Construction and Fire Codes,
             35      to technically merge substantive amendments.
             36          This bill coordinates with H.B. 115, Mechanics' Liens Amendments, by technically
             37      merging substantive amendments.
             38      Utah Code Sections Affected:
             39      AMENDS:
             40          14-1-20, as last amended by Laws of Utah 2010, Chapter 378
             41          14-2-5, as last amended by Laws of Utah 2010, Chapter 378
             42          38-1-1, Utah Code Annotated 1953
             43          38-1-5, Utah Code Annotated 1953
             44          38-1-27, as last amended by Laws of Utah 2009, Chapters 183 and 239
             45          38-1-30, as last amended by Laws of Utah 2008, Chapter 382
             46          38-1-31, as last amended by Laws of Utah 2009, Chapter 50
             47          38-1-32, as last amended by Laws of Utah 2009, Chapter 50
             48          38-1-33, as last amended by Laws of Utah 2010, Chapter 76
             49          58-56-20, as last amended by Laws of Utah 2010, Chapter 310
             50          63G-6-506, as renumbered and amended by Laws of Utah 2008, Chapter 382
             51      ENACTS:
             52          38-1-30.5, Utah Code Annotated 1953
             53          38-1-31.5, Utah Code Annotated 1953
             54          38-1-32.5, Utah Code Annotated 1953
             55          38-1-32.7, Utah Code Annotated 1953
             56      REPEALS:


             57          38-1-37, as last amended by Laws of Utah 2005, Chapter 64
             58      Utah Code Sections Affected by Coordination Clause:
             59          15A-1-209, Utah Code Annotated 1953
             60          30-1-30.5, Utah Code Annotated 1953
             61          38-1-2, as last amended by Laws of Utah 2006, Chapter 297
             62          38-1-5, Utah Code Annotated 1953
             63          38-1-19, Utah Code Annotated 1953
             64          38-1-27, as last amended by Laws of Utah 2009, Chapters 183 and 239
             65          38-1-32, as last amended by Laws of Utah 2009, Chapter 50
             66      Uncodified Material Affected:
             67      ENACTS UNCODIFIED MATERIAL
             68     
             69      Be it enacted by the Legislature of the state of Utah:
             70          Section 1. Section 14-1-20 is amended to read:
             71           14-1-20. Preliminary notice requirement.
             72          (1) Any person furnishing labor, service, equipment, or material for which a payment
             73      bond claim may be made under this chapter shall provide preliminary notice to the designated
             74      agent as prescribed by Section [ 38-1-32 ] 38-1-32.5 , except that this section does not apply:
             75          (a) to a person performing labor for wages; or
             76          (b) if a notice of commencement is not filed as prescribed in Section [ 38-1-31 ]
             77      38-1-31.5 for the project or improvement for which labor, service, equipment, or material is
             78      furnished.
             79          (2) Any person who fails to provide the preliminary notice required by Subsection (1)
             80      may not make a payment bond claim under this chapter.
             81          (3) The preliminary notice required by Subsection (1) shall be provided prior to
             82      commencement of any action on the payment bond.
             83          Section 2. Section 14-2-5 is amended to read:
             84           14-2-5. Preliminary notice requirement.
             85          (1) Any person furnishing labor, service, equipment, or material for which a payment
             86      bond claim may be made under this chapter shall provide preliminary notice to the designated
             87      agent as prescribed by Section 38-1-32 , except that this section does not apply[: (a)] to a person


             88      performing labor for wages[; or].
             89          [(b) if a notice of commencement is not filed as prescribed in Section 38-1-31 for the
             90      project or improvement for which labor, service, equipment, or material is furnished.]
             91          (2) Any person who fails to provide the preliminary notice required by Subsection (1)
             92      may not make a payment bond claim under this chapter.
             93          (3) The preliminary notice required by Subsection (1) shall be provided prior to
             94      commencement of any action on the payment bond.
             95          Section 3. Section 38-1-1 is amended to read:
             96           38-1-1. Public buildings not subject to act.
             97          [The provisions of this] Except as provided in Sections 38-1-27 , 38-1-30 through
             98      38-1-37 , and 38-1-40 relating to the State Construction Registry, this chapter [shall] does not
             99      apply to any public building, structure, or improvement.
             100          Section 4. Section 38-1-5 is amended to read:
             101           38-1-5. Priority -- Over other encumbrances.
             102          [The liens herein provided for shall relate]
             102a      S. (1) As used in this section: .S
             103          (a) "First preliminary notice filing" means the filing of a preliminary notice that is:
             104          (i) the earliest preliminary notice filed on a private project, as defined in Section
             105      38-1-27 ;
             106          (ii) filed on or after August 1, 2011;
             107          (iii) not filed on a project that, according to the law in effect before August 1, 2011,
             108      commenced before August 1, 2011;
             109          (iv) not canceled under Subsection 38-1-32 (6); and
             110          (v) not withdrawn under Subsection 38-1-32 (8).
             110a      S. (b) "Project property" means the real property on which a building or structure is being
             110b      constructed or altered or on which an improvement is made. .S
             111          (2) A lien under this chapter relates back to, and [take] takes effect as of, the time of
             112      the [commencement to do work or furnish materials on the ground for the structure or
             113      improvement, and shall have] first preliminary notice filing.
             114          (3) (a) Subject to Subsection (3)(b), a lien under this chapter has priority over:
             115          (i) any lien, mortgage, or other encumbrance [which may have attached subsequently to
             116      the time when the building, improvement or structure was commenced, work begun, or first
             117      material furnished on the ground; also over] that attaches after the first preliminary notice
             118      filing; and


             119          (ii) any lien, mortgage, or other encumbrance of which the lien holder had no notice
             120      and which was unrecorded at the time [the building, structure or improvement was
             121      commenced, work begun, or first material furnished on the ground] of the first preliminary
             122      notice filing.
             123          (b) A recorded mortgage or trust deed of a construction lender S. , as defined in Section
             123a      38-1-27, .S has priority over each
             124      lien under this chapter of a claimant who files a preliminary notice in accordance with Section
             125      38-1-32 before the mortgage or trust deed is recorded if the claimant:
             126          (i) accepts payment in full for labor, service, equipment, and material that the claimant
             127      furnishes to the project before the mortgage or trust deed is recorded; and
             128          (ii) withdraws the claimant's preliminary notice by filing a notice of withdrawal under
             129      Subsection 38-1-32 (8).
             130          Section 5. Section 38-1-27 is amended to read:
             131           38-1-27. State Construction Registry.
             132          (1) As used in this section, Sections 38-1-30 through 38-1-37 , and Section 38-1-40 :
             133          (a) "Alternate filing" means a legible and complete filing made in a manner established
             134      by the division under Subsection (2)(e) other than an electronic filing.
             135          (b) "Cancel" means to indicate that a filing is no longer given effect.
             136          (c) "Construction lender" means a lender who provides construction financing for a
             137      private project.
             138          [(c)] (d) "Construction project[,]" or "project[,]" [or "improvement"] means all labor,
             139      service, equipment, and materials provided[: (i)] under an original contract[; or].
             140          [(ii) by, or under contracts with, an owner-builder.]
             141          [(d)] (e) "Database" means the State Construction Registry created in this section.
             142          [(e)] (f) (i) "Designated agent" means the third party the [Division of Occupational and
             143      Professional Licensing] division contracts with to create and maintain the State Construction
             144      Registry.
             145          (ii) The designated agent is not an agency, instrumentality, or a political subdivision of
             146      the state.
             147          [(f)] (g) "Division" means the Division of Occupational and Professional Licensing.
             148          (h) "Entry number" means the reference number that:
             149          (i) the designated agent assigns to each notice or other document filed with the


             150      database; and
             151          (ii) is unique for each notice or other document.
             152          (i) "Government project" means a construction project undertaken by or for:
             153          (i) the state, including a department, division, or other agency of the state; or
             154          (ii) a county, city, town, school district, local district, special service district,
             155      community development and renewal agency, or other political subdivision of the state.
             156          (j) "Government project-identifying information" means:
             157          (i) the lot or parcel number of each lot included in S. the .S project property that has a
             157a      lot or
             158      parcel number; and
             159          (ii) the unique project number assigned by the designated agent.
             160          [(g)] (k) "Interested person" means a person who may be affected by a construction
             161      project.
             162          (l) "Private project" means a construction project that is not a government project.
             163          [(h)] (m) "Program" means the State Construction Registry Program created in this
             164      section.
             165          (n) "Project property" means the real property on which a construction project occurs
             166      or will occur.
             167          (2) Subject to receiving adequate funding through a legislative appropriation and
             168      contracting with an approved third party vendor who meets the requirements of Sections
             169      38-1-30 through 38-1-37 , there is created the State Construction Registry Program that shall:
             170          (a) (i) assist in protecting public health, safety, and welfare; and
             171          (ii) promote a fair working environment;
             172          (b) be overseen by the division with the assistance of the designated agent;
             173          (c) provide a central repository for [notices of commencement, preliminary notices, and
             174      notices of completion filed in connection with all privately owned construction projects as well
             175      as all state and local government owned construction projects throughout Utah] all notices filed
             176      with the database under Section 38-1-30.5 , 38-1-31.5 , 38-1-32 , 38-1-32.5 , 38-1-32.7 , 38-1-33 ,
             177      or 38-1-40 ;
             178          (d) [be] make accessible [for filing and review], by way of the program Internet
             179      website [of]:
             180          (i) the filing and reviewing of notices described in Subsection (2)(c); and


             181          [(i) notices of commencement;]
             182          [(ii) preliminary notices;]
             183          [(iii) a notice of intent to file notice of final completion;]
             184          [(iv) a notice for remaining amounts due to complete the contract; and]
             185          [(v) notices of completion;]
             186          (ii) the transmitting of building permit information under Subsection 38-1-31 (2)(a) and
             187      the reviewing of that information;
             188          (e) accommodate:
             189          (i) electronic filing of the notices described in Subsection (2)[(d)](c) and electronic
             190      transmitting of building permit information described in Subsection (2)(d)(ii); and
             191          (ii) alternate filing of the notices described in Subsection (2)(d) by U.S. mail, telefax,
             192      or any other alternate method as provided by rule made by the division in accordance with Title
             193      63G, Chapter 3, Utah Administrative Rulemaking Act;
             194          (f) (i) provide electronic notification for up to three email addresses for each interested
             195      person or company who requests notice from the construction notice registry; and
             196          (ii) provide alternate means of notification for a person who makes an alternate filing,
             197      including U.S. mail, telefax, or any other method as prescribed by rule made by the division in
             198      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
             199          (g) provide hard-copy printing of electronic receipts for an individual filing evidencing
             200      the date and time of the individual filing and the content of the individual filing.
             201          (3) (a) The designated agent shall provide notice of all other filings for a project to any
             202      person who files a notice of commencement, preliminary notice, or notice of completion for
             203      that project, unless the person:
             204          (i) requests that the person not receive notice of other filings; or
             205          (ii) does not provide the designated agent with the person's contact information in a
             206      manner that adequately informs the designated agent.
             207          (b) An interested person may request notice of filings related to a project.
             208          (c) The database shall be indexed by:
             209          (i) the name of the property owner [name];
             210          (ii) the name of the original contractor [name];
             211          (iii) subdivision, development, or other project name, if any;


             212           S. [ (iv) project address;
             213          (v)
] (iv) .S
lot or parcel number;
             214          [(vi) unique project number assigned by the designated agent; and]
             215           S. [ (vi) ] (v) .S the address of the project property;
             216           S. [ (vii) ] (vi) .S entry number;
             217           S. [ (viii) ] (vii) .S the name of the county in which the project property is located;
             218           S. [ (ix) ] (viii) .S for private projects:
             219          (A) the tax parcel identification number of each parcel included in the project property;
             220      and
             221          (B) the building permit number;
             222           S. [ (x) ] (ix) .S for government projects, the government project-identifying information;
             222a      and
             223          [(vii)] S. [ (xi) ] (x) .S any other identifier that the division considers reasonably
             223a      appropriate in
             224      collaboration with the designated agent.
             225          (4) (a) In accordance with the process required by Section 63J-1-504 , the division shall
             226      establish the fees for:
             227          [(i) a notice of commencement;]
             228          [(ii) a preliminary notice;]
             229          [(iii) a notice of intent to file notice of final completion;]
             230          [(iv) a notice for remaining amounts due to complete the contract;]
             231          [(v) a notice of completion;]
             232          (i) notices described in Subsection (2)(c);
             233          [(vi)] (ii) a request for notice;
             234          [(vii)] (iii) providing a required notice by an alternate [method of delivery] filing;
             235          [(viii)] (iv) a duplicate receipt of a filing; and
             236          [(ix)] (v) account setup for a person who wishes to be billed periodically for filings
             237      with the database.
             238          (b) The fees allowed under Subsection (4)(a) may not exceed the amount reasonably
             239      necessary to create and maintain the database.
             240          (c) The fees established by the division may vary by method of filing if one form of
             241      filing is more costly to process than another form of filing.
             242          (d) The division may provide by contract that the designated agent may retain all fees


             243      collected by the designated agent except that the designated agent shall remit to the division the
             244      cost of the division's oversight under Subsection (2)(b).
             245          (5) (a) The database is classified as a public record under Title 63G, Chapter 2,
             246      Government Records Access and Management Act, unless otherwise classified by the division.
             247          (b) A request for information submitted to the designated agent is not subject to Title
             248      63G, Chapter 2, Government Records Access and Management Act.
             249          (c) Information contained in a public record contained in the database shall be
             250      requested from the designated agent.
             251          (d) The designated agent may charge a commercially reasonable fee allowed by the
             252      designated agent's contract with the division for providing information under Subsection (5)(c).
             253          (e) Notwithstanding Title 63G, Chapter 2, Government Records Access and
             254      Management Act, if information is available in a public record contained in the database, a
             255      person may not request the information from the division.
             256          (f) (i) A person may request information that is not a public record contained in the
             257      database from the division in accordance with Title 63G, Chapter 2, Government Records
             258      Access and Management Act.
             259          (ii) The division shall inform the designated agent of how to direct inquiries made to
             260      the designated agent for information that is not a public record contained in the database.
             261          (6) The following are not an adjudicative proceeding under Title 63G, Chapter 4,
             262      Administrative Procedures Act:
             263          (a) the filing of a notice permitted by this chapter;
             264          (b) the rejection of a filing permitted by this chapter; or
             265          (c) other action by the designated agent in connection with a filing of any notice
             266      permitted by this chapter.
             267          (7) The division and the designated agent need not determine the timeliness of any
             268      notice before filing the notice in the database.
             269          (8) (a) A person who is delinquent on the payment of a fee established under
             270      Subsection (4) may not file a notice with the database.
             271          (b) A determination that a person is delinquent on the payment of a fee for filing
             272      established under Subsection (4) shall be made in accordance with Title 63G, Chapter 4,
             273      Administrative Procedures Act.


             274          (c) Any order issued in a proceeding described in Subsection (8)(b) may prescribe the
             275      method of that person's payment of fees for filing notices with the database after issuance of the
             276      order.
             277          (9) If a notice is filed by a third party on behalf of another, the notice is considered to
             278      be filed by the person on whose behalf the notice is filed.
             279          (10) A person filing a notice of commencement, preliminary notice, or notice of
             280      completion is responsible for verifying the accuracy of information entered into the database,
             281      whether the person files electronically or by alternate or third party filing.
             282          (11) Each notice or other document submitted for inclusion in the database and for
             283      which this chapter does not specify information required to be included in the notice or other
             284      document shall contain:
             285          (a) the name of the county in which the project property to which the notice or other
             286      document applies is located;
             287          (b) for a private project:
             288          (i) the tax parcel identification number of each parcel included in the project property;
             289      or
             290          (ii) the number of the building permit for the construction project on the project
             291      property; and
             292          (c) for a government project, the government project-identifying information.
             293          Section 6. Section 38-1-30 is amended to read:
             294           38-1-30. Third party contract -- Designated agent.
             295          (1) The division shall contract in accordance with Title 63G, Chapter 6, Utah
             296      Procurement Code, with a third party to establish and maintain the database for the purposes
             297      established under this section, Section 38-1-27 , and Sections 38-1-31 through 38-1-37 .
             298          (2) (a) The third party under contract under this section is the division's designated
             299      agent, and shall develop and maintain a database from the information provided by:
             300          (i) local government entities issuing building permits;
             301          (ii) original contractors;
             302          (iii) subcontractors; and
             303          (iv) other interested persons.
             304          (b) The database shall accommodate filings by third parties on behalf of clients.


             305          (c) The division and the designated agent shall design, develop, and test the database
             306      for full implementation on May 1, 2005.
             307          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             308      division shall make rules and develop procedures for:
             309          (a) the division to oversee and enforce this section, Section 38-1-27 , and Sections
             310      38-1-31 through 38-1-37 ;
             311          (b) the designated agent to administer this section, Section 38-1-27 , and Sections
             312      38-1-31 through 38-1-37 ; and
             313          (c) the form of submission of an alternate filing, which may include procedures for
             314      rejecting an illegible or incomplete filing.
             315          (4) (a) The designated agent shall archive computer data files at least semiannually for
             316      auditing purposes.
             317          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             318      division shall make rules to allow the designated agent to periodically archive projects from the
             319      database.
             320          (c) A project shall be archived no earlier than:
             321          (i) one year after the day on which a notice of completion is filed for a project;
             322          (ii) if no notice of completion is filed, two years after the last filing activity for a
             323      project; or
             324          (iii) one year after the day on which a filing is cancelled under Subsection
             325      38-1-32 [(3)](6)(c) or 38-1-33 (2)(c).
             326          (d) The division may audit the designated agent's administration of the database as
             327      often as the division considers necessary.
             328          (5) The designated agent shall carry errors and omissions insurance in the amounts
             329      established by rule made by the division in accordance with Title 63G, Chapter 3, Utah
             330      Administrative Rulemaking Act.
             331          (6) (a) The designated agent shall make reasonable efforts to assure the accurate entry
             332      into the database of information provided in alternate filings.
             333          (b) The designated agent shall meet or exceed standards established by the division for
             334      the accuracy of data entry for alternate filings.
             335          (7) The designated agent is not liable for the correctness of the information contained


             336      in an alternate filing it enters into the database.
             337          Section 7. Section 38-1-30.5 is enacted to read:
             338          38-1-30.5. Notice of construction loan.
             339          (1) As used in this section, "construction loan" does not include a consumer loan
             340      secured by the equity in the consumer's home.
             341          (2) S. [ Promptly after ] After .S recording a mortgage or trust deed securing a
             341a      construction loan on a
             342      private project, the construction lender on the loan shall S. promptly, in conjunction with the
             342a      closing of the construction loan, .S file with the database a notice of
             343      construction loan.
             344          (3) A notice under Subsection (2) shall accurately state:
             345          (a) the lender's name, address, and telephone number;
             346          (b) the name of the trustor on the trust deed securing the loan;
             347          (c) the tax parcel identification number of each parcel included or to be included in the
             348      construction project for which the loan was given;
             349          (d) the address of the project property; and
             350          (e) the name of the county in which the project property is located.
             351          (4) A construction lender that files a notice of construction loan containing incomplete
             352      or inaccurate information may not be held liable for damages suffered by any other person who
             353      relies on the inaccurate or incomplete information in filing a preliminary notice.
             354          Section 8. Section 38-1-31 is amended to read:
             355           38-1-31. Building permit -- Transmission to database -- Posting at project site.
             356          [(1) (a) (i) (A) For a construction project where a building permit is issued to an
             357      original contractor or owner-builder, no later than 15 days after the issuance of the building
             358      permit:]
             359          [(I) the local government entity issuing that]
             360          (1) (a) A county, city, or town issuing a building permit for a private project:
             361          (i) shall, no later than 15 days after issuing the permit, input the building permit
             362      application and transmit the building permit information to the database electronically by way
             363      of the Internet or computer modem or by any other means; [or] and
             364          (ii) may collect a building permit fee related to the issuance of the building permit, but
             365      may not spend or otherwise use the building permit fee until the county, city, or town complies
             366      with Subsection (1)(a)(i) with respect to the building permit for which the fee is charged.


             367          [(II) the original contractor, owner, or owner-builder may file a notice of
             368      commencement with the database whether or not a building permit is issued or a notice of
             369      commencement is filed under Subsection (1)(a)(i)(A)(I).]
             370          [(B) The information submitted under Subsection (1)(a)(i)(A) forms the basis of a
             371      notice of commencement.]
             372          [(ii)] (b) The person to whom a building permit, filed under Subsection (1)(a)[(i)], is
             373      issued is responsible for the accuracy of the information in the building permit.
             374          [(iii)] (c) For the purposes of classifying a record under Title 63G, Chapter 2,
             375      Government Records Access and Management Act, building permit information transmitted
             376      from a [local governmental entity] county, city, or town to the database shall be classified in
             377      the database by the division notwithstanding the [local governmental entity's] classification of
             378      the building permit information by the county, city, or town.
             379          [(b) No later than 15 days after commencement of physical construction work at the
             380      project site, the original contractor, owner, or owner-builder may file a notice of
             381      commencement with the database whether or not a building permit is issued or a notice of
             382      commencement is filed under Subsection (1)(a).]
             383          [(c) An original contractor, owner, or owner-builder may file a notice of
             384      commencement with the designated agent prior to the time frames established in Subsections
             385      (1)(a) and (b).]
             386          [(d) An owner of construction or an original contractor may file a notice of
             387      commencement with the designated agent within the time prescribed by Subsections (1)(a) and
             388      (b).]
             389          [(e) (i) If duplicate notices of commencement are filed, they shall be combined into one
             390      notice for each project and any notices filed relate back to the date of the earliest-filed notice of
             391      commencement for the project.]
             392          [(ii) A duplicate notice of commencement that is untimely filed relates back under
             393      Subsection (1)(e)(i) if the earlier filed notice of commencement is timely filed.]
             394          [(iii) Duplicate notices of commencement shall be automatically linked by the
             395      designated agent.]
             396          [(f) The designated agent shall assign each construction project a unique project
             397      number that:]


             398          [(i) identifies each construction project; and]
             399          [(ii) can be associated with all notices of commencement, preliminary notices, and
             400      notices of completion.]
             401          [(g) A notice of commencement is effective only as to any labor, service, equipment,
             402      and material furnished to the construction project that is furnished subsequent to the filing of
             403      the notice of commencement.]
             404          [(2) (a) A notice of commencement shall include the following:]
             405          [(i) the name and address of the owner of the project;]
             406          [(ii) the name and address of the:]
             407          [(A) original contractor; and]
             408          [(B) surety providing any payment bond for the project, or if none exists, a statement
             409      that a payment bond was not required for the work being performed; and]
             410          [(iii) (A) the project address if the project can be reasonably identified by an address;
             411      or]
             412          [(B) the name and general description of the location of the project if the project cannot
             413      be reasonably identified by an address.]
             414          [(b) A notice of commencement may include:]
             415          [(i) a general description of the project; or]
             416          [(ii) the lot or parcel number, and any subdivision, development, or other project name,
             417      of the real property upon which the project is to be constructed if the project is subject to
             418      mechanics' liens.]
             419          [(c) A notice of commencement need not include all of the items listed in Subsection
             420      (2)(a) if:]
             421          [(i) a building permit is issued for the project; and]
             422          [(ii) all items listed in Subsection (2)(a) that are available on the building permit are
             423      included in the notice of commencement.]
             424          [(3) If a notice of commencement for a construction project is not filed within the time
             425      set forth in Subsections(1)(a) and (b), the following do not apply:]
             426          [(a) Section 38-1-32 ; and]
             427          [(b) Section 38-1-33 .]
             428          [(4) (a) Unless a person indicates to the division or designated agent that the person


             429      does not wish to receive a notice under this section, electronic notice of the filing of a notice of
             430      commencement or alternate notice as prescribed in Subsection (1), shall be provided to:]
             431          [(i) all persons who have filed notices of commencement for the project; and]
             432          [(ii) all interested persons who have requested notices concerning the project.]
             433          [(b) (i) A person to whom notice is required under Subsection (4)(a) is responsible for:]
             434          [(A) providing an e-mail address, mailing address, or telefax number to which a notice
             435      required by Subsection (4)(a) is to be sent; and]
             436          [(B) the accuracy of any e-mail address, mailing address, or telefax number to which
             437      notice is to be sent.]
             438          [(ii) The designated agent fulfills the notice requirement of Subsection (4)(a) when it
             439      sends the notice to the e-mail address, mailing address, or telefax number provided to the
             440      designated agent whether or not the notice is actually received.]
             441          [(5) (a) The burden is upon any person seeking to enforce a notice of commencement
             442      to verify the accuracy of information in the notice of commencement and prove that the notice
             443      of commencement is filed timely and meets all of the requirements in this section.]
             444          [(b) A substantial inaccuracy in a notice of commencement renders the notice of
             445      commencement unenforceable.]
             446          [(c) A person filing a notice of commencement by alternate filing is responsible for
             447      verifying and changing any incorrect information in the notice of commencement before the
             448      expiration of the time period during which the notice is required to be filed.]
             449          [(6)] (2) At the time a building permit is obtained, each original contractor shall
             450      conspicuously post at the project site a copy of the building permit obtained for the project.
             451          Section 9. Section 38-1-31.5 is enacted to read:
             452          38-1-31.5. Notice of commencement for a government project.
             453          (1) No later than 15 days after commencement of physical construction work at a
             454      government project site, the original contractor, owner, or owner-builder shall file a notice of
             455      commencement with the database.
             456          (2) An original contractor, owner, or owner-builder on a government project may file a
             457      notice of commencement with the designated agent before the commencement of physical
             458      construction work on the project property.
             459          (3) (a) If duplicate notices of commencement are filed, they shall be combined into one


             460      notice for each government project, and any notices filed relate back to the date of the
             461      earliest-filed notice of commencement for the project.
             462          (b) A duplicate notice of commencement that is untimely filed relates back under
             463      Subsection (3)(a) if the earlier filed notice of commencement is timely filed.
             464          (c) Duplicate notices of commencement shall be automatically linked by the designated
             465      agent.
             466          (4) The designated agent shall assign each government project a unique project number
             467      that:
             468          (a) identifies the project; and
             469          (b) can be associated with all notices of commencement, preliminary notices, and
             470      notices of completion filed in connection with the project.
             471          (5) A notice of commencement is effective only as to any labor, service, equipment,
             472      and material that is furnished after the notice of commencement is filed.
             473          (6) (a) A notice of commencement shall include:
             474          (i) the name, address, and email address of the owner of the project;
             475          (ii) the name, address, and email address of the original contractor;
             476          (iii) the name, address, and email address of the surety providing any payment bond for
             477      the project or, if none exists, a statement that a payment bond was not required for the work
             478      being performed;
             479          (iv) (A) the project address if the project can be reasonably identified by an address; or
             480          (B) the name and general description of the location of the project, if the project cannot
             481      be reasonably identified by an address; and
             482          (v) the government project identifying information.
             483          (b) A notice of commencement may include a general description of the project.
             484          (7) If a notice of commencement for a government project is not filed within the time
             485      set forth in Subsection (1), Sections 38-1-32 and 38-1-33 do not apply.
             486          (8) (a) Notwithstanding any other provision of this chapter, a notice of commencement
             487      need not be filed for a private project.
             488          (b) A provision of this chapter does not apply to a private project if the provision
             489      depends for its effectiveness upon the filing of a notice of commencement.
             490          (9) (a) Unless a person indicates to the division or designated agent that the person


             491      does not wish to receive a notice under this section, the designated agent shall provide
             492      electronic notice of the filing of a notice of commencement or alternate filing to:
             493          (i) all persons who have filed notices of commencement for the project; and
             494          (ii) all interested persons who have requested notices concerning the project.
             495          (b) A person to whom notice is required under Subsection (9)(a) is responsible for:
             496          (i) providing an email address, mailing address, or telefax number to which a notice
             497      required by Subsection (9)(a) is to be sent; and
             498          (ii) the accuracy of any email address, mailing address, or telefax number to which
             499      notice is to be sent.
             500          (c) The designated agent fulfills the notice requirement of Subsection (9)(a) by sending
             501      the notice to the email address, mailing address, or telefax number provided to the designated
             502      agent, whether or not the notice is actually received.
             503          (10) (a) The burden is upon any person seeking to enforce a notice of commencement
             504      to verify the accuracy of information in the notice of commencement and prove that the notice
             505      of commencement is filed timely and meets all of the requirements of this section.
             506          (b) A substantial inaccuracy in a notice of commencement renders the notice of
             507      commencement invalid.
             508          (c) A person filing a notice of commencement by alternate filing is responsible for
             509      verifying and changing any incorrect information in the notice of commencement before the
             510      expiration of the time period during which the notice is required to be filed.
             511          Section 10. Section 38-1-32 is amended to read:
             512           38-1-32. Preliminary notice for a private project.
             513          (1) As used in this section:
             514          (a) "Pre-lender claimant" means a person whose lien under this chapter is made subject
             515      to a construction lender's mortgage or trust deed, as provided in Subsection 38-1-5 (3)(b), by the
             516      person's acceptance of payment in full and the person's withdrawal of the person's preliminary
             517      notice.
             518          (b) "Refiled preliminary notice" means a preliminary notice that a pre-lender claimant
             519      files under Subsection (2)(a)(ii) with the database on a project after withdrawing a preliminary
             520      notice that the claimant previously filed for the same project.
             521          [(1)] (2) (a) (i) [Except for a person who has a contract with an owner or an


             522      owner-builder or a laborer compensated with wages, a subcontractor] A person who, under
             523      Section 38-1-3 , is entitled to a lien under this chapter with respect to a private project shall file
             524      a preliminary notice with the database [by the] no later [of: (A)] than 20 days after
             525      [commencement of its own work or the commencement of] the person commences furnishing
             526      labor, service, equipment, [and] or material to [a construction] the project[; or].
             527          (ii) A pre-lender claimant who, under Section 38-1-3 , is entitled to claim a lien under
             528      this chapter for labor, service, equipment, or material the claimant furnishes to a private project
             529      after the recording of a construction lender's mortgage or trust deed on the project property
             530      shall file a preliminary notice within 20 days after the recording of the mortgage or trust deed.
             531          [(B) 20 days after the filing of a notice of commencement if the subcontractor's work
             532      commences before the filing of the first notice of commencement.]
             533          [(ii)] (b) [A] Subject to Subsection (2)(c), a preliminary notice [filed within the period
             534      described in Subsection (1)(a)(i)] is effective as to all labor, service, equipment, and material
             535      [furnished] that the person filing the notice furnishes to the [construction] private project,
             536      including labor, service, equipment, and material [provided] that the person furnishes to more
             537      than one contractor or subcontractor on that same project.
             538          [(iii) (A) If more than one notice of commencement is filed for a project, a person may
             539      attach a preliminary notice to any notice of commencement filed for the project by a party
             540      authorized in Section 38-1-31 .]
             541          [(B) A preliminary notice attached to an untimely notice of commencement is valid if
             542      there is also a valid and timely notice of commencement for the project filed by a party
             543      authorized in Section 38-1-31 .]
             544          [(b)] (c) [If a person files a] A preliminary notice filed after the period [prescribed by]
             545      provided in Subsection [(1)] (2)(a)[, the preliminary notice]:
             546          (i) becomes effective five days after the day [on which] the preliminary notice is
             547      filed[.]; and
             548          (ii) is not effective for labor, service, equipment, or material that the person who files
             549      the preliminary notice furnishes to the construction project before five days after the
             550      preliminary notice is filed.
             551          [(c) Except as provided in Subsection (1)(e), failure to file a preliminary notice within
             552      the period required by Subsection (1)(a) precludes a person from maintaining any claim for


             553      compensation earned for performance of labor or service or supply of materials or equipment
             554      furnished to the construction project before the expiration of five days after the late filing of a
             555      preliminary notice, except as against the person with whom the person contracted.]
             556          (d) (i) (A) [If a] A person who [is required to file a preliminary notice under this
             557      chapter] fails to file [the] a preliminary notice[, that person] as required in this section may not
             558      hold a valid lien under this chapter.
             559          (B) A person who files a preliminary notice after the period provided in Subsection
             560      (2)(a) may not hold a valid lien under this chapter for labor, service, equipment, or material the
             561      person furnishes to the construction project before five days after the preliminary notice is
             562      filed.
             563          [(B)] (ii) A county recorder need not verify that a valid preliminary notice is filed when
             564      a person files a notice to hold and claim a lien under Section 38-1-7 .
             565          [(ii) The content of a]
             566          (e) (i) Except as provided in Subsection (2)(e)(ii), a preliminary notice that is timely
             567      filed with the database with respect to a private project is considered to be filed at the time of
             568      the first preliminary notice filing, as defined in Section 38-1-5 .
             569          (ii) A timely filed preliminary notice that is a refiled preliminary notice is considered to
             570      be filed immediately after the recording of a mortgage or trust deed of the construction lender
             571      that paid the pre-lender claimant in full for labor, service, equipment, or material the claimant
             572      furnished before the recording of the mortgage or trust deed.
             573          (f) If a preliminary notice filed with the database includes the tax parcel identification
             574      number of a parcel not previously associated in the database with a private project, the
             575      designated agent shall promptly notify the person who filed the preliminary notice that:
             576          (i) the preliminary notice includes a tax parcel identification number of a parcel not
             577      previously associated in the database with a private project; and
             578          (ii) the likely explanation is that:
             579          (A) the preliminary notice is the first filing for the project; or
             580          (B) the tax parcel identification number is incorrectly stated in the preliminary notice.
             581          (g) A preliminary notice for a private project shall include:
             582          [(A) the building permit number for the project, or the number assigned to the project
             583      by the designated agent;]


             584          [(B)] (i) the name, address, [and] telephone number, and email address of the person
             585      furnishing the labor, service, equipment, or material for which the preliminary notice is filed;
             586          [(C)] (ii) the name and address of the person who contracted with the claimant for the
             587      furnishing of the labor, service, equipment, or material;
             588          [(D)] (iii) the name of the record or reputed owner of the project property;
             589          [(E)] (iv) the name of the original contractor under which the claimant is [performing]
             590      furnishing or will [perform its work; and] furnish labor, service, equipment, or material;
             591          [(F)] (v) the address of the project property or a description of the location of the
             592      project[.];
             593          [(iii) Upon request by person identified in Subsection (1)(a)(i), an original contractor
             594      shall provide the person with the building permit number for the project, or the number
             595      assigned to the project by the designated agent.]
             596          [(e) If a person provides labor, service, equipment, or material before the filing of a
             597      notice of commencement and the notice of commencement is filed more than 15 days after the
             598      day on which the person providing labor, service, equipment, or material begins work on the
             599      project, the person providing labor, service, equipment, or material need not file a preliminary
             600      notice to maintain the person's right to hold a lien under this chapter or any other right,
             601      including a right referenced under Subsection (1)(c).]
             602          (vi) the name of the county in which the project property is located; and
             603          (vii) (A) the tax parcel identification number of each parcel included in the project
             604      property;
             605          (B) the entry number of a previously filed notice of construction loan under Section
             606      38-1-30.5 on the same project;
             607          (C) the entry number of a previously filed preliminary notice on the same project that
             608      includes the tax parcel identification number of each parcel included in the project property; or
             609          (D) the entry number of the building permit issued for the project.
             610          (h) A preliminary notice for a private project may include:
             611          (i) the subdivision, development, or other project name applicable to the construction
             612      project for which the preliminary notice is filed; and
             613          (ii) the lot or parcel number of each lot or parcel that is included in the project
             614      property.


             615          [(2)] (3) (a) [(i)] Unless a person indicates to the division or designated agent that the
             616      person does not wish to receive a notice under this section, electronic notification of the filing
             617      of a preliminary notice or alternate [notice as prescribed in Subsection (1),] filing shall be
             618      provided to:
             619          [(A)] (i) the person filing the preliminary notice; and
             620          [(B) each person that filed a notice of commencement for the project; and]
             621          [(C) all interested persons who have requested notices]
             622          (ii) each person who has requested a notice concerning the project.
             623          [(ii)] (b) A person to whom notice is required to be provided under Subsection
             624      (2)(a)[(i)] is responsible for:
             625          [(A)] (i) providing an email address, mailing address, or telefax number to which a
             626      notice required by Subsection (2)(a) is to be sent; and
             627          [(B)] (ii) the accuracy of any email address, mailing address, or telefax number to
             628      which notice is to be sent.
             629          [(iii)] (c) The designated agent fulfills the notice requirement of Subsection (2)(a)[(i)
             630      when it sends] by sending the notice to the email address, mailing address, or telefax number
             631      provided to the designated agent, whether or not the notice is actually received.
             632          [(b)] (4) (a) The burden is upon the person filing the preliminary notice to prove that
             633      the person has substantially complied with the requirements of this section.
             634          (b) Substantial compliance with the requirements of Subsection (2)(g) may be
             635      established by a person's reasonable reliance on information in the database provided by a
             636      previously filed:
             637          (i) notice of construction loan under Section 38-1-30.5 ;
             638          (ii) preliminary notice; or
             639          (iii) building permit.
             640          [(c)] (5) (a) Subject to Subsection [(2)(d)] (5)(b), a person required by this section to
             641      give preliminary notice is only required to give one notice for each project.
             642          [(d)] (b) If the labor, service, equipment, or material is furnished pursuant to contracts
             643      under more than one original contract, the notice requirements [must] shall be met with respect
             644      to the labor, service, equipment, or material furnished under each original contract.
             645          [(3)] (6) (a) [If a] A construction project owner, original contractor, subcontractor, or


             646      other interested person who believes that a preliminary notice has been filed erroneously[, that
             647      owner, original contractor, subcontractor, or other interested person can] may request from the
             648      person who filed the preliminary notice evidence establishing the validity of the preliminary
             649      notice.
             650          (b) Within 10 days after the request described in Subsection [(3)] (6)(a), the person or
             651      entity that filed the preliminary notice shall provide the requesting person or entity proof that
             652      the preliminary notice is valid.
             653          (c) If the person or entity that filed the preliminary notice does not provide proof of the
             654      validity of the preliminary notice, that person or entity shall immediately cancel the preliminary
             655      notice from the database in any manner prescribed by the division pursuant to rule.
             656          [(4)] (7) A person filing a preliminary notice by alternate filing is responsible for
             657      verifying and changing any incorrect information in the preliminary notice before the
             658      expiration of the time period during which the notice is required to be filed.
             659          [(5) Until June 1, 2008, nothing in this section affects a person's rights under Title 38,
             660      Chapter 11, Residence Lien Restriction and Lien Recovery Fund Act.]
             661          (8) (a) A person who files a preliminary notice before the recording of a construction
             662      lender's mortgage or trust deed may withdraw the preliminary notice by filing with the database
             663      a notice of withdrawal as provided in Subsection (8)(b).
             664          (b) A notice of withdrawal shall include:
             665          (i) the information required for a preliminary notice under Subsection (2)(g); and
             666          (ii) the entry number of the preliminary notice being withdrawn.
             667          (9) A person who files a preliminary notice that contains inaccurate or incomplete
             668      information may not be held liable for damages suffered by any other person who relies on the
             669      inaccurate or incomplete information in filing a preliminary notice.
             670          Section 11. Section 38-1-32.5 is enacted to read:
             671          38-1-32.5. Preliminary notice on government project.
             672          (1) Except for a person who has a contract with an owner or an owner-builder or a
             673      laborer compensated with wages, a subcontractor on a government project shall file a
             674      preliminary notice with the database by the later of:
             675          (a) 20 days after the subcontractor commences the subcontractor's own work or
             676      commences furnishing labor, service, equipment, or material to the construction project; and


             677          (b) 20 days after the filing of a notice of commencement, if the subcontractor's work
             678      commences before the filing of the first notice of commencement.
             679          (2) A preliminary notice filed within the period described in Subsection (1) is effective
             680      as to all labor, service, equipment, and material that the subcontractor furnishes to the
             681      construction project, including labor, service, equipment, and material provided that the
             682      subcontractor furnishes to more than one contractor or subcontractor.
             683          (3) (a) If more than one notice of commencement is filed for a project, a person may
             684      attach a preliminary notice to any notice of commencement filed for the project.
             685          (b) A preliminary notice attached to an untimely notice of commencement is valid if
             686      there is also a valid and timely notice of commencement for the project.
             687          (4) If a person files a preliminary notice after the period prescribed by Subsection (1),
             688      the preliminary notice becomes effective five days after the day on which the preliminary
             689      notice is filed.
             690          (5) Except as provided in Subsection (8), failure to file a preliminary notice within the
             691      period required by Subsection (1) precludes a person from maintaining any claim for
             692      compensation earned for labor, service, material, or equipment furnished to the construction
             693      project before the expiration of five days after the late filing of a preliminary notice, except as
             694      against the person with whom the person contracted.
             695          (6) A preliminary notice on a government project shall include:
             696          (a) the government project-identifying information;
             697          (b) the name, address, and telephone number of the person furnishing the labor,
             698      service, equipment, or material;
             699          (c) the name and address of the person who contracted with the claimant for the
             700      furnishing of the labor, service, equipment, or material;
             701          (d) the name of the record or reputed owner of the project;
             702          (e) the name of the original contractor under which the claimant is performing or will
             703      perform its work; and
             704          (f) the address of the project or a description of the location of the project.
             705          (7) Upon request, an original contractor shall provide a subcontractor with the number
             706      assigned to the project by the designated agent.
             707          (8) A person who provides labor, service, equipment, or material before the filing of a


             708      notice of commencement need not file a preliminary notice to maintain any right the person
             709      would otherwise have, if the notice of commencement is filed more than 15 days after the day
             710      on which the person begins work on the project.
             711          (9) Subsections 38-1-32 (2), (3), (4), (5), and (6) apply to a preliminary notice on a
             712      government project under this section to the same extent that those subsections apply to a
             713      preliminary notice on a private project under Section 38-1-32 .
             714          Section 12. Section 38-1-32.7 is enacted to read:
             715          38-1-32.7. Notice concerning construction loan default.
             716          (1) Within five business days after a notice of default is filed for recording under
             717      Section 57-1-24 with respect to a trust deed on the project property securing a construction
             718      loan, the construction lender under the loan shall file a notice with the database.
             719          (2) A notice under Subsection (1) shall:
             720          (a) include:
             721          (i) the information required to be included in a notice of construction loan under
             722      Subsections 38-1-30.5 (3)(a), (b), (c), (d), and (e); and
             723          (ii) the entry number of the notice of construction loan;
             724          (b) state that a notice of default with respect to the construction loan has been recorded;
             725      and
             726          (c) state the date that the notice of default was recorded.
             727          Section 13. Section 38-1-33 is amended to read:
             728           38-1-33. Notice of completion.
             729          (1) (a) Upon final completion of a construction project, and in accordance with Section
             730      38-1-40 , the following with a construction project registered with the database may file a notice
             731      of completion with the database:
             732          (i) an owner of the construction project;
             733          (ii) an original contractor of the construction project;
             734          (iii) a lender that has provided financing for the construction project;
             735          (iv) a surety that has provided bonding for the construction project; or
             736          (v) a title company issuing a title insurance policy on the construction project.
             737          (b) Notwithstanding Section 38-1-2 , if a subcontractor performs substantial work after
             738      the applicable dates established by Subsection (1)(a), that subcontractor's subcontract is


             739      considered an original contract for the sole purpose of determining:
             740          (i) the subcontractor's time frame to file a notice to hold and claim a lien under
             741      Subsection 38-1-7 (1); and
             742          (ii) the original contractor's time frame to file a notice to hold and claim a lien under
             743      Subsection 38-1-7 (1) for that subcontractor's work.
             744          (c) A notice of completion shall include:
             745          [(i) the building permit number for the project, or the number assigned to the project by
             746      the designated agent;]
             747          [(ii)] (i) the name, address, [and] telephone number, and email address of the person
             748      filing the notice of completion;
             749          [(iii) the name of the original contractor for the project;]
             750          [(iv) the address of the project or a description of the location of the project;]
             751          (ii) the name of the county in which the project property is located;
             752          (iii) for a private project:
             753          (A) the tax parcel identification number of each parcel included in the project property;
             754          (B) the entry number of a preliminary notice on the same project that includes the tax
             755      parcel identification number of each parcel included in the project property; or
             756          (C) the entry number of the building permit issued for the project;
             757          (iv) for a government project, the government project-identifying information;
             758          (v) the date on which final completion is alleged to have occurred; and
             759          (vi) the method used to determine final completion.
             760          (d) For purposes of this section, final completion of the original contract does not occur
             761      if work remains to be completed for which the owner is holding payment to ensure completion
             762      of the work.
             763          (e) (i) Unless a person indicates to the division or designated agent that the person does
             764      not wish to receive a notice under this section, electronic notification of the filing of a notice of
             765      completion or alternate [notice as prescribed in Subsection (1)(a),] filing shall be provided to:
             766          (A) each person that filed a notice of commencement for the project;
             767          (B) each person that filed preliminary notice for the project; and
             768          (C) all interested persons who have requested notices concerning the project.
             769          (ii) A person to whom notice is required under this Subsection (1)(e) is responsible for:


             770          (A) providing an email address, mailing address, or telefax number to which a notice
             771      required by this Subsection (1)(e) is to be sent; and
             772          (B) the accuracy of any email address, mailing address, or telefax number to which
             773      notice is to be sent.
             774          (iii) The designated agent fulfills the notice requirement of Subsection (1)(e)(i) when it
             775      sends the notice to the email address, mailing address, or telefax number provided to the
             776      designated agent, whether or not the notice is actually received.
             777          (iv) Upon the filing of a notice of completion, the time periods for filing a preliminary
             778      [notices] notice stated in Section [ 38-1-27 ] 38-1-32 or 38-1-32.5 are modified such that all
             779      preliminary notices shall be filed subsequent to the notice of completion and within 10 days
             780      from the day on which the notice of completion is filed.
             781          (f) A subcontract that is considered an original contract for purposes of this section
             782      does not create a requirement for an additional preliminary notice if a preliminary notice has
             783      already been given for the labor, service, equipment, and material furnished to the
             784      subcontractor who performs substantial work.
             785          (2) (a) If a construction project owner, original contractor, subcontractor, or other
             786      interested person believes that a notice of completion has been filed erroneously, that owner,
             787      original contractor, subcontractor, or other interested person can request from the person who
             788      filed the notice of completion evidence establishing the validity of the notice of completion.
             789          (b) Within 10 days after the request described in Subsection (2)(a), the person who
             790      filed the notice of completion shall provide the requesting person proof that the notice of
             791      completion is valid.
             792          (c) If the person that filed the notice of completion does not provide proof of the
             793      validity of the notice of completion, that person shall immediately cancel the notice of
             794      completion from the database in any manner prescribed by the division pursuant to rule.
             795          (3) A person filing a notice of completion by alternate filing is responsible for verifying
             796      and changing any incorrect information in the notice of completion before the expiration of the
             797      time period during which the notice is required to be filed.
             798          Section 14. Section 58-56-20 is amended to read:
             799           58-56-20. Standardized building permit content.
             800          (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the


             801      division shall adopt a standardized building permit form by rule.
             802          (2) (a) The standardized building permit form created under Subsection (1) shall
             803      include fields for indicating the following information:
             804          (i) the name and address of the owner of [or contractor for the] each parcel of property
             805      on which the project will occur;
             806          (ii) the name and address of the contractor for the project;
             807          [(ii)] (iii) (A) the address of the project; or
             808          (B) a general description of the project; [and]
             809          (iv) the county in which the property on which the project will occur is located;
             810          (v) the tax parcel identification number of each parcel of the property; and
             811          [(iii)] (vi) whether the permit applicant is an original contractor or owner-builder.
             812          (b) The standardized building permit form created under Subsection (1) may include
             813      any other information the division considers useful.
             814          (3) (a) A compliance agency shall issue a permit for construction only on a
             815      standardized building permit form approved by the division.
             816          (b) A permit for construction issued by a compliance agency under Subsection (3)(a)
             817      shall print the standardized building permit number assigned under Section 58-56-19 in the
             818      upper right-hand corner of the building permit form in at least 12-point type.
             819          (c) (i) Except as provided in Subsection (3)(c)(ii), a compliance agency may not issue a
             820      permit for construction if the information required by Subsection (2)(a) is not completed on the
             821      building permit form.
             822          (ii) If a compliance agency does not issue a separate permit for different aspects of the
             823      same project, the compliance agency may issue a permit for construction without the
             824      information required by Subsection (2)(a)[(iii)](vi).
             825          (d) A compliance agency may require additional information for the issuance of a
             826      permit for construction.
             827          (4) A local regulator issuing a single-family residential building permit application
             828      shall include in the application or attach to the building permit the following notice
             829      prominently placed in at least 14 point font: "Decisions relative to this application are subject
             830      to review by the chief executive officer of the municipal or county entity issuing the
             831      single-family residential building permit and appeal under the International Residential Code as


             832      adopted by the Legislature."
             833          Section 15. Section 63G-6-506 is amended to read:
             834           63G-6-506. Preliminary notice requirement.
             835          (1) Any person furnishing labor, service, equipment, or material for which a payment
             836      bond claim may be made under this chapter shall provide preliminary notice to the designated
             837      agent as prescribed by Section [ 38-1-32 ] 38-1-32.5 , except that this section does not apply:
             838          (a) to a person performing labor for wages; or
             839          (b) if a notice of commencement is not filed as prescribed in Section [ 38-1-31 ]
             840      38-1-31.5 for the project or improvement for which labor, service, equipment, or material is
             841      furnished.
             842          (2) Any person who fails to provide the preliminary notice required by Subsection (1)
             843      may not make a payment bond claim under this chapter.
             844          (3) The preliminary notice required by Subsection (1) must be provided [prior to]
             845      before commencement of any action on the payment bond.
             846          Section 16. Repealer.
             847          This bill repeals:
             848          Section 38-1-37, Application of Section 38-1-27 and Sections 38-1-30 through
             849      38-1-36.
             850          Section 17. Legislative intent.
             851          It is the intent of the Legislature that:
             852          (1) the changes to the law made by this bill apply only to construction projects that
             853      commence on or after August 1, 2011; and
             854          (2) during the 2012 and 2013 interim periods, before the November interim committee
             855      meeting each year, the Business and Labor Interim Committee review and evaluate the
             856      implementation of this bill, determine whether the provisions of this bill should be modified or
             857      repealed, and make a recommendation accordingly to the Legislative Management Committee.
             858          Section 18. Effective date.
             859          This bill takes effect on August 1, 2011.
             860          Section 19. Coordinating H.B. 260 with H.B. 203 -- Technically merging
             861      substantive amendments.
             862          If this H.B. 260 and H.B. 203, Codification of State Construction and Fire Codes, both


             863      pass, it is the intent of the Legislature that:
             864          (1) the coordination clause in this H.B. 260 supersedes the coordination clause
             865      contained in H.B. 203; and
             866          (2) the Office of Legislative Research and General Counsel, in preparing the Utah
             867      Code database for publication:
             868          (a) modify Subsection 15A-1-209 (3)(b), as enacted in H.B. 203, to read:
             869          "(b) The standardized building permit form created under this Subsection (3) shall
             870      include fields for indicating the following information:
             871          (i) the name and address of the owner of each parcel of property on which the project
             872      will occur;
             873          (ii) the name and address of the contractor for the project;
             874          (iii) (A) the address of the project; or
             875          (B) a general description of the project;
             876          (iv) the county in which the property on which the project will occur is located;
             877          (v) the tax parcel identification number of each parcel of the property; and
             878          (vi) whether the permit applicant is an original contractor or owner-builder."; and
             879          (b) change the citation in Subsection 15A-1-209 (3)(f)(ii), as enacted in H.B. 203, from
             880      "Subsection (3)(b)(iii)" to "Subsection (3)(b)(vi)."
             881          Section 20. Coordinating H.B. 260 with H.B. 115 -- Technically merging
             882      substantive amendments.
             883          If this H.B. 260 and H.B. 115, Mechanics' Lien Amendments, both pass, it is the intent
             884      of the Legislature that:
             885          (1) the Office of Legislative Research and General Counsel, in preparing the Utah
             886      Code database for publication:
             887          (a) modify Subsection 38-1-2 (6) to read:
             888          "(6) "Construction service":
             889          (a) means to furnish labor, service, material, or equipment for the purpose and during
             890      the process of constructing, altering, or repairing an improvement; and
             891          (b) includes the scheduling, estimating, staking, supervising, managing, materials
             892      testing, inspection, observation, and quality control or assurance involved in constructing,
             893      altering, or repairing an improvement.";


             894          (b) modify Section 38-1-5 to read:
             895          " 38-1-5. Priority -- Over other encumbrances.
             896          [The liens herein provided for shall relate]
             897          (1) As used in this section:
             898          (a) "First preliminary notice filing" means the filing of a preliminary notice that is:
             899          (i) the earliest preliminary notice filed on a private project, as defined in Section
             900      38-1-27 ;
             901          (ii) filed on or after August 1, 2011;
             902          (iii) not filed on a project that, according to the law in effect before August 1, 2011,
             903      commenced before August 1, 2011;
             904          (iv) not canceled under Subsection 38-1-32 (6); and
             905          (v) not withdrawn under Subsection 38-1-32 (8).
             905a      S. (b) "Project property" means the real property on which an improvement is being
             905b      constructed or made. .S
             906          (2) A construction service lien relates back to, and [take] takes effect as of, the time of
             907      the [commencement to do work or furnish materials on the ground for the structure or
             908      improvement, and shall have] first preliminary notice filing.
             909          (3) (a) Subject to Subsection (3)(b), a construction service lien has priority over:
             910          (i) any lien, mortgage, or other encumbrance [which may have attached subsequently to
             911      the time when the building, improvement or structure was commenced, work begun, or first
             912      material furnished on the ground; also over] that attaches after the first preliminary notice
             913      filing; and
             914          (ii) any lien, mortgage, or other encumbrance of which the lien holder had no notice
             915      and which was unrecorded at the time [the building, structure or improvement was
             916      commenced, work begun, or first material furnished on the ground] of the first preliminary
             917      notice filing.
             918          (b) A recorded mortgage or trust deed of a construction lender has priority over each
             919      construction service lien of a claimant who files a preliminary notice in accordance with
             920      Section 38-1-32 before the mortgage or trust deed is recorded if the claimant:
             921          (i) accepts payment in full for construction service that the claimant furnishes to the
             922      project before the mortgage or trust deed is recorded; and
             923          (ii) withdraws the claimant's preliminary notice by filing a notice of withdrawal under
             924      Subsection 38-1-32 (8)." S. ; .S


             925          (c) modify Subsection 38-1-19 (1) to read:
             926          "[When any] (1) If a subcontractor [shall have] has actually begun to [furnish labor or
             927      materials] perform preconstruction service or furnish construction service for which [he] the
             928      subcontractor is entitled to a lien [no], a payment to the original contractor [shall] may not
             929      impair or defeat [such] the lien[; and no].";
             930          (d) modify Subsection 38-1-27 (2)(c) to read:
             931          "(c) provide a central repository for [notices of commencement, preliminary notices,
             932      and notices of completion filed in connection with all privately owned construction projects as
             933      well as all state and local government owned construction projects throughout Utah] all notices
             934      filed with the database under Section 38-1-30.5 , 38-1-30.7 , 38-1-31.5 , 38-1-32 , 38-1-32.5 ,
             935      38-1-32.7 , 38-1-33 , or 38-1-40 ;" S. ; .S
             936          (e) modify Subsection 38-1-32 (2) to read:
             937          "[(1)] (2) (a) (i) [Except for a person who has a contract with an owner or an
             938      owner-builder or a laborer compensated with wages, a subcontractor] A person who, under
             939      Section 38-1-3 , is entitled to a construction service lien with respect to a private project shall
             940      file a preliminary notice with the database [by the] no later [of: (A)] than 20 days after
             941      [commencement of its own work or the commencement of] the person commences furnishing
             942      [labor, service, equipment, and material] construction service to [a construction] the project[;
             943      or].
             944          (ii) A pre-lender claimant who, under Section 38-1-3 , is entitled to claim a construction
             945      service lien for construction service the claimant furnishes to a private project after the
             946      recording of a construction lender's mortgage or trust deed on the project property shall file a
             947      preliminary notice within 20 days after the recording of the mortgage or trust deed.
             948          [(B) 20 days after the filing of a notice of commencement if the subcontractor's work
             949      commences before the filing of the first notice of commencement.]
             950          [(ii)] (b) [A] Subject to Subsection (2)(c), a preliminary notice [filed within the period
             951      described in Subsection (1)(a)(i)] is effective as to all [labor, service, equipment, and material
             952      furnished] construction service that the person filing the notice furnishes to the [construction]
             953      private project, including [labor, service, equipment, and material provided] construction
             954      service that the person furnishes to more than one contractor or subcontractor on that same
             955      project.


             956          [(iii) (A) If more than one notice of commencement is filed for a project, a person may
             957      attach a preliminary notice to any notice of commencement filed for the project by a party
             958      authorized in Section 38-1-31 .]
             959          [(B) A preliminary notice attached to an untimely notice of commencement is valid if
             960      there is also a valid and timely notice of commencement for the project filed by a party
             961      authorized in Section 38-1-31 .]
             962          [(b)] (c) [If a person files a] A preliminary notice filed after the period [prescribed by]
             963      provided in Subsection [(1)] (2)(a)[, the preliminary notice]:
             964          (i) becomes effective five days after the day [on which] the preliminary notice is
             965      filed[.]; and
             966          (ii) is not effective for construction service that the person who files the preliminary
             967      notice furnishes to the construction project before five days after the preliminary notice is filed.
             968          [(c) Except as provided in Subsection (1)(e), failure to file a preliminary notice within
             969      the period required by Subsection (1)(a) precludes a person from maintaining any claim for
             970      compensation earned for performance of labor or service or supply of materials or equipment
             971      furnished to the construction project before the expiration of five days after the late filing of a
             972      preliminary notice, except as against the person with whom the person contracted.]
             973          (d) (i) (A) [If a] A person who [is required to file a preliminary notice under this
             974      chapter] fails to file [the] a preliminary notice[, that person] as required in this section may not
             975      hold a valid construction service lien under this chapter.
             976          (B) A person who files a preliminary notice after the period provided in Subsection
             977      (2)(a) may not hold a valid construction service lien for construction service the person
             978      furnishes to the construction project before five days after the preliminary notice is filed.
             979          [(B)] (ii) A county recorder need not verify that a valid preliminary notice is filed when
             980      a person files a notice to hold and claim a lien under Section 38-1-7 .
             981          [(ii) The content of a]
             982          (e) (i) Except as provided in Subsection S. [ (3) ] (2) .S (e)(ii), a preliminary notice that is
             982a      timely
             983      filed with the database with respect to a private project is considered to be filed at the time of
             984      the first preliminary notice filing, as defined in Section 38-1-5 .
             985          (ii) A timely filed preliminary notice that is a refiled preliminary notice is considered to
             986      be filed immediately after the recording of a mortgage or trust deed of the construction lender


             987      that paid the pre-lender claimant in full for construction service the claimant furnished before
             988      the recording of the mortgage or trust deed.
             989          (f) If a preliminary notice filed with the database includes the tax parcel identification
             990      number of a parcel not previously associated in the database with a private project, the
             991      designated agent shall promptly notify the person who filed the preliminary notice that:
             992          (i) the preliminary notice includes a tax parcel identification number of a parcel not
             993      previously associated in the database with a private project; and
             994          (ii) the likely explanation is that:
             995          (A) the preliminary notice is the first filing for the project; or
             996          (B) the tax parcel identification number is incorrectly stated in the preliminary notice.
             997          (g) A preliminary notice for a private project shall include:
             998          [(A) the building permit number for the project, or the number assigned to the project
             999      by the designated agent;]
             1000          [(B)] (i) the name, address, [and] telephone number, and email address of the person
             1001      furnishing the [labor, service, equipment, or material] construction service for which the
             1002      preliminary notice is filed;
             1003          [(C)] (ii) the name and address of the person who contracted with the claimant for the
             1004      furnishing of the [labor, service, equipment, or material] construction service;
             1005          [(D)] (iii) the name of the record or reputed owner of the project property;
             1006          [(E)] (iv) the name of the original contractor for construction service under which the
             1007      claimant is [performing] furnishing or will [perform its work; and] furnish construction
             1008      service;
             1009          [(F)] (v) the address of the project property or a description of the location of the
             1010      project[.];
             1011          [(iii) Upon request by person identified in Subsection (1)(a)(i), an original contractor
             1012      shall provide the person with the building permit number for the project, or the number
             1013      assigned to the project by the designated agent.]
             1014          [(e) If a person provides labor, service, equipment, or material before the filing of a
             1015      notice of commencement and the notice of commencement is filed more than 15 days after the
             1016      day on which the person providing labor, service, equipment, or material begins work on the
             1017      project, the person providing labor, service, equipment, or material need not file a preliminary


             1018      notice to maintain the person's right to hold a lien under this chapter or any other right,
             1019      including a right referenced under Subsection (1)(c).]
             1020          (vi) the name of the county in which the project property is located; and
             1021          (vii) (A) the tax parcel identification number of each parcel included in the project
             1022      property;
             1023          (B) the entry number of a previously filed notice of construction loan under Section
             1024      38-1-30.7 on the same project;
             1025          (C) the entry number of a previously filed preliminary notice on the same project that
             1026      includes the tax parcel identification number of each parcel included in the project property; or
             1027          (D) the entry number of the building permit issued for the project.
             1028          (h) A preliminary notice for a private project may include:
             1029          (i) the subdivision, development, or other project name applicable to the construction
             1030      project for which the preliminary notice is filed; and
             1031          (ii) the lot or parcel number of each lot or parcel that is included in the project
             1032      property."; and
             1033          (f) modify Subsection 38-1-32 (5) to read:
             1034          "[(c)] (5) (a) Subject to Subsection [(2)(d)] (5)(b), a person required by this section to
             1035      give preliminary notice is only required to give one notice for each project.
             1036          [(d)] (b) If the [labor, service, equipment, or material] construction service is furnished
             1037      pursuant to contracts under more than one original contract for construction service, the notice
             1038      requirements [must] shall be met with respect to the [labor, service, equipment, or material]
             1039      construction service furnished under each original contract.";
             1040          (2) the amendments to Subsection 38-1-27 (2)(d) in this H.B. 260 supersede the
             1041      amendments to Subsection 38-1-27 (2)(d) in H.B. 115;
             1042          (3) the amendments to Subsection 38-1-27 (4)(a) in this H.B. 260 supersede the
             1043      amendments to Subsection 38-1-27 (4)(a) in H.B. 115; and
             1044          (4) (a) Section 30-1-30.5 , as enacted in this H.B. 260, be renumbered to Section
             1045      30-1-30.7 ; and
             1046          (b) all references in this H.B. 260 to Section 30-1-30.5 be changed to Section
             1047      30-1-30.7 .


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