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H.B. 260 Enrolled

             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 notice on a
             23      private project from claiming a mechanics' lien;
             24          .    requires a construction lender to file with the database a notice of construction loan and, if
             25      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, to
             35      technically merge substantive amendments.
             36          This bill coordinates with H.B. 115, Mechanics' Liens Amendments, by technically merging
             37      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 bond
             73      claim may be made under this chapter shall provide preliminary notice to the designated agent as
             74      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 ] 38-1-31.5
             77      for the project or improvement for which labor, service, equipment, or material is furnished.
             78          (2) Any person who fails to provide the preliminary notice required by Subsection (1) may
             79      not make a payment bond claim under this chapter.
             80          (3) The preliminary notice required by Subsection (1) shall be provided prior to


             81      commencement of any action on the payment bond.
             82          Section 2. Section 14-2-5 is amended to read:
             83           14-2-5. Preliminary notice requirement.
             84          (1) Any person furnishing labor, service, equipment, or material for which a payment bond
             85      claim may be made under this chapter shall provide preliminary notice to the designated agent as
             86      prescribed by Section 38-1-32 , except that this section does not apply[: (a)] to a person performing
             87      labor for wages[; or].
             88          [(b) if a notice of commencement is not filed as prescribed in Section 38-1-31 for the
             89      project or improvement for which labor, service, equipment, or material is furnished.]
             90          (2) Any person who fails to provide the preliminary notice required by Subsection (1) may
             91      not make a payment bond claim under this chapter.
             92          (3) The preliminary notice required by Subsection (1) shall be provided prior to
             93      commencement of any action on the payment bond.
             94          Section 3. Section 38-1-1 is amended to read:
             95           38-1-1. Public buildings not subject to act.
             96          [The provisions of this] Except as provided in Sections 38-1-27 , 38-1-30 through 38-1-37 ,
             97      and 38-1-40 relating to the State Construction Registry, this chapter [shall] does not apply to any
             98      public building, structure, or improvement.
             99          Section 4. Section 38-1-5 is amended to read:
             100           38-1-5. Relation back and priority of liens.
             101          [The liens herein provided for shall relate]
             102          (1) As used in this section:
             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 38-1-27 ;
             105          (ii) filed on or after August 1, 2011;
             106          (iii) not filed on a project that, according to the law in effect before August 1, 2011,


             107      commenced before August 1, 2011;
             108          (iv) not canceled under Subsection 38-1-32 (6); and
             109          (v) not withdrawn under Subsection 38-1-32 (8).
             110          (b) "Project property" means the real property on which a building or structure is being
             111      constructed or altered or on which an improvement is made.
             112          (2) A lien under this chapter relates back to, and [take] takes effect as of, the time of the
             113      [commencement to do work or furnish materials on the ground for the structure or improvement, and
             114      shall have] first preliminary notice filing.
             115          (3) (a) Subject to Subsection (3)(b), a lien under this chapter has priority over:
             116          (i) any lien, mortgage, or other encumbrance [which may have attached subsequently to the
             117      time when the building, improvement or structure was commenced, work begun, or first material
             118      furnished on the ground; also over] that attaches after the first preliminary notice filing; and
             119          (ii) any lien, mortgage, or other encumbrance of which the lien holder had no notice and
             120      which was unrecorded at the time [the building, structure or improvement was commenced, work
             121      begun, or first material furnished on the ground] of the first preliminary notice filing.
             122          (b) A recorded mortgage or trust deed of a construction lender, as defined in Section
             123      38-1-27 , has priority over each lien under this chapter of a claimant who files a preliminary notice in
             124      accordance with Section 38-1-32 before the mortgage or trust deed is recorded if the claimant:
             125          (i) accepts payment in full for labor, service, equipment, and material that the claimant
             126      furnishes to the project before the mortgage or trust deed is recorded; and
             127          (ii) withdraws the claimant's preliminary notice by filing a notice of withdrawal under
             128      Subsection 38-1-32 (8).
             129          Section 5. Section 38-1-27 is amended to read:
             130           38-1-27. State Construction Registry.
             131          (1) As used in this section, Sections 38-1-30 through 38-1-37 , and Section 38-1-40 :
             132          (a) "Alternate filing" means a legible and complete filing made in a manner established by the


             133      division under Subsection (2)(e) other than an electronic filing.
             134          (b) "Cancel" means to indicate that a filing is no longer given effect.
             135          (c) "Construction lender" means a lender who provides construction financing for a private
             136      project.
             137          [(c)] (d) "Construction project[,]" or "project[,]" [or "improvement"] means all labor, service,
             138      equipment, and materials provided[: (i)] under an original contract[; or].
             139          [(ii) by, or under contracts with, an owner-builder.]
             140          [(d)] (e) "Database" means the State Construction Registry created in this section.
             141          [(e)] (f) (i) "Designated agent" means the third party the [Division of Occupational and
             142      Professional Licensing] division contracts with to create and maintain the State Construction Registry.
             143          (ii) The designated agent is not an agency, instrumentality, or a political subdivision of the
             144      state.
             145          [(f)] (g) "Division" means the Division of Occupational and Professional Licensing.
             146          (h) "Entry number" means the reference number that:
             147          (i) the designated agent assigns to each notice or other document filed with the database; and
             148          (ii) is unique for each notice or other document.
             149          (i) "Government project" means a construction project undertaken by or for:
             150          (i) the state, including a department, division, or other agency of the state; or
             151          (ii) a county, city, town, school district, local district, special service district, community
             152      development and renewal agency, or other political subdivision of the state.
             153          (j) "Government project-identifying information" means:
             154          (i) the lot or parcel number of each lot included in the project property that has a lot or
             155      parcel number; and
             156          (ii) the unique project number assigned by the designated agent.
             157          [(g)] (k) "Interested person" means a person who may be affected by a construction project.
             158          (l) "Private project" means a construction project that is not a government project.


             159          [(h)] (m) "Program" means the State Construction Registry Program created in this section.
             160          (n) "Project property" means the real property on which a construction project occurs or will
             161      occur.
             162          (2) Subject to receiving adequate funding through a legislative appropriation and contracting
             163      with an approved third party vendor who meets the requirements of Sections 38-1-30 through
             164      38-1-37 , there is created the State Construction Registry Program that shall:
             165          (a) (i) assist in protecting public health, safety, and welfare; and
             166          (ii) promote a fair working environment;
             167          (b) be overseen by the division with the assistance of the designated agent;
             168          (c) provide a central repository for [notices of commencement, preliminary notices, and
             169      notices of completion filed in connection with all privately owned construction projects as well as all
             170      state and local government owned construction projects throughout Utah] all notices filed with the
             171      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 , or
             172      38-1-40 ;
             173          (d) [be] make accessible [for filing and review], by way of the program Internet website [of]:
             174          (i) the filing and reviewing of notices described in Subsection (2)(c); and
             175          [(i) notices of commencement;]
             176          [(ii) preliminary notices;]
             177          [(iii) a notice of intent to file notice of final completion;]
             178          [(iv) a notice for remaining amounts due to complete the contract; and]
             179          [(v) notices of completion;]
             180          (ii) the transmitting of building permit information under Subsection 38-1-31 (2)(a) and the
             181      reviewing of that information;
             182          (e) accommodate:
             183          (i) electronic filing of the notices described in Subsection (2)[(d)](c) and electronic
             184      transmitting of building permit information described in Subsection (2)(d)(ii); and


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


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


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


             263      may not file a notice with the database.
             264          (b) A determination that a person is delinquent on the payment of a fee for filing established
             265      under Subsection (4) shall be made in accordance with Title 63G, Chapter 4, Administrative
             266      Procedures Act.
             267          (c) Any order issued in a proceeding described in Subsection (8)(b) may prescribe the
             268      method of that person's payment of fees for filing notices with the database after issuance of the
             269      order.
             270          (9) If a notice is filed by a third party on behalf of another, the notice is considered to be filed
             271      by the person on whose behalf the notice is filed.
             272          (10) A person filing a notice of commencement, preliminary notice, or notice of completion is
             273      responsible for verifying the accuracy of information entered into the database, whether the person
             274      files electronically or by alternate or third party filing.
             275          (11) Each notice or other document submitted for inclusion in the database and for which this
             276      chapter does not specify information required to be included in the notice or other document shall
             277      contain:
             278          (a) the name of the county in which the project property to which the notice or other
             279      document applies is located;
             280          (b) for a private project:
             281          (i) the tax parcel identification number of each parcel included in the project property; or
             282          (ii) the number of the building permit for the construction project on the project property;
             283      and
             284          (c) for a government project, the government project-identifying information.
             285          Section 6. Section 38-1-30 is amended to read:
             286           38-1-30. Third party contract -- Designated agent.
             287          (1) The division shall contract in accordance with Title 63G, Chapter 6, Utah Procurement
             288      Code, with a third party to establish and maintain the database for the purposes established under this


             289      section, Section 38-1-27 , and Sections 38-1-31 through 38-1-37 .
             290          (2) (a) The third party under contract under this section is the division's designated agent,
             291      and shall develop and maintain a database from the information provided by:
             292          (i) local government entities issuing building permits;
             293          (ii) original contractors;
             294          (iii) subcontractors; and
             295          (iv) other interested persons.
             296          (b) The database shall accommodate filings by third parties on behalf of clients.
             297          (c) The division and the designated agent shall design, develop, and test the database for full
             298      implementation on May 1, 2005.
             299          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             300      division shall make rules and develop procedures for:
             301          (a) the division to oversee and enforce this section, Section 38-1-27 , and Sections 38-1-31
             302      through 38-1-37 ;
             303          (b) the designated agent to administer this section, Section 38-1-27 , and Sections 38-1-31
             304      through 38-1-37 ; and
             305          (c) the form of submission of an alternate filing, which may include procedures for rejecting
             306      an illegible or incomplete filing.
             307          (4) (a) The designated agent shall archive computer data files at least semiannually for
             308      auditing purposes.
             309          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             310      division shall make rules to allow the designated agent to periodically archive projects from the
             311      database.
             312          (c) A project shall be archived no earlier than:
             313          (i) one year after the day on which a notice of completion is filed for a project;
             314          (ii) if no notice of completion is filed, two years after the last filing activity for a project; or


             315          (iii) one year after the day on which a filing is cancelled under Subsection 38-1-32 [(3)](6)(c)
             316      or 38-1-33 (2)(c).
             317          (d) The division may audit the designated agent's administration of the database as often as
             318      the division considers necessary.
             319          (5) The designated agent shall carry errors and omissions insurance in the amounts
             320      established by rule made by the division in accordance with Title 63G, Chapter 3, Utah
             321      Administrative Rulemaking Act.
             322          (6) (a) The designated agent shall make reasonable efforts to assure the accurate entry into
             323      the database of information provided in alternate filings.
             324          (b) The designated agent shall meet or exceed standards established by the division for the
             325      accuracy of data entry for alternate filings.
             326          (7) The designated agent is not liable for the correctness of the information contained in an
             327      alternate filing it enters into the database.
             328          Section 7. Section 38-1-30.5 is enacted to read:
             329          38-1-30.5. Notice of construction loan.
             330          (1) As used in this section, "construction loan" does not include a consumer loan secured by
             331      the equity in the consumer's home.
             332          (2) After recording a mortgage or trust deed securing a construction loan on a private
             333      project, the construction lender on the loan shall promptly, in conjunction with the closing of the
             334      construction loan, file with the database a notice of construction loan.
             335          (3) A notice under Subsection (2) shall accurately state:
             336          (a) the lender's name, address, and telephone number;
             337          (b) the name of the trustor on the trust deed securing the loan;
             338          (c) the tax parcel identification number of each parcel included or to be included in the
             339      construction project for which the loan was given;
             340          (d) the address of the project property; and


             341          (e) the name of the county in which the project property is located.
             342          (4) A construction lender that files a notice of construction loan containing incomplete or
             343      inaccurate information may not be held liable for damages suffered by any other person who relies on
             344      the inaccurate or incomplete information in filing a preliminary notice.
             345          Section 8. Section 38-1-31 is amended to read:
             346           38-1-31. Building permit -- Transmission to database -- Posting at project site.
             347          [(1) (a) (i) (A) For a construction project where a building permit is issued to an original
             348      contractor or owner-builder, no later than 15 days after the issuance of the building permit:]
             349          [(I) the local government entity issuing that]
             350          (1) (a) A county, city, or town issuing a building permit for a private project:
             351          (i) shall, no later than 15 days after issuing the permit, input the building permit application
             352      and transmit the building permit information to the database electronically by way of the Internet or
             353      computer modem or by any other means; [or] and
             354          (ii) may collect a building permit fee related to the issuance of the building permit, but may
             355      not spend or otherwise use the building permit fee until the county, city, or town complies with
             356      Subsection (1)(a)(i) with respect to the building permit for which the fee is charged.
             357          [(II) the original contractor, owner, or owner-builder may file a notice of commencement
             358      with the database whether or not a building permit is issued or a notice of commencement is filed
             359      under Subsection (1)(a)(i)(A)(I).]
             360          [(B) The information submitted under Subsection (1)(a)(i)(A) forms the basis of a notice of
             361      commencement.]
             362          [(ii)] (b) The person to whom a building permit, filed under Subsection (1)(a)[(i)], is issued is
             363      responsible for the accuracy of the information in the building permit.
             364          [(iii)] (c) For the purposes of classifying a record under Title 63G, Chapter 2, Government
             365      Records Access and Management Act, building permit information transmitted from a [local
             366      governmental entity] county, city, or town to the database shall be classified in the database by the


             367      division notwithstanding the [local governmental entity's] classification of the building permit
             368      information by the county, city, or town.
             369          [(b) No later than 15 days after commencement of physical construction work at the project
             370      site, the original contractor, owner, or owner-builder may file a notice of commencement with the
             371      database whether or not a building permit is issued or a notice of commencement is filed under
             372      Subsection (1)(a).]
             373          [(c) An original contractor, owner, or owner-builder may file a notice of commencement with
             374      the designated agent prior to the time frames established in Subsections (1)(a) and (b).]
             375          [(d) An owner of construction or an original contractor may file a notice of commencement
             376      with the designated agent within the time prescribed by Subsections (1)(a) and (b).]
             377          [(e) (i) If duplicate notices of commencement are filed, they shall be combined into one
             378      notice for each project and any notices filed relate back to the date of the earliest-filed notice of
             379      commencement for the project.]
             380          [(ii) A duplicate notice of commencement that is untimely filed relates back under Subsection
             381      (1)(e)(i) if the earlier filed notice of commencement is timely filed.]
             382          [(iii) Duplicate notices of commencement shall be automatically linked by the designated
             383      agent.]
             384          [(f) The designated agent shall assign each construction project a unique project number
             385      that:]
             386          [(i) identifies each construction project; and]
             387          [(ii) can be associated with all notices of commencement, preliminary notices, and notices of
             388      completion.]
             389          [(g) A notice of commencement is effective only as to any labor, service, equipment, and
             390      material furnished to the construction project that is furnished subsequent to the filing of the notice of
             391      commencement.]
             392          [(2) (a) A notice of commencement shall include the following:]


             393          [(i) the name and address of the owner of the project;]
             394          [(ii) the name and address of the:]
             395          [(A) original contractor; and]
             396          [(B) surety providing any payment bond for the project, or if none exists, a statement that a
             397      payment bond was not required for the work being performed; and]
             398          [(iii) (A) the project address if the project can be reasonably identified by an address; or]
             399          [(B) the name and general description of the location of the project if the project cannot be
             400      reasonably identified by an address.]
             401          [(b) A notice of commencement may include:]
             402          [(i) a general description of the project; or]
             403          [(ii) the lot or parcel number, and any subdivision, development, or other project name, of
             404      the real property upon which the project is to be constructed if the project is subject to mechanics'
             405      liens.]
             406          [(c) A notice of commencement need not include all of the items listed in Subsection (2)(a)
             407      if:]
             408          [(i) a building permit is issued for the project; and]
             409          [(ii) all items listed in Subsection (2)(a) that are available on the building permit are included
             410      in the notice of commencement.]
             411          [(3) If a notice of commencement for a construction project is not filed within the time set
             412      forth in Subsections(1)(a) and (b), the following do not apply:]
             413          [(a) Section 38-1-32 ; and]
             414          [(b) Section 38-1-33 .]
             415          [(4) (a) Unless a person indicates to the division or designated agent that the person does not
             416      wish to receive a notice under this section, electronic notice of the filing of a notice of commencement
             417      or alternate notice as prescribed in Subsection (1), shall be provided to:]
             418          [(i) all persons who have filed notices of commencement for the project; and]


             419          [(ii) all interested persons who have requested notices concerning the project.]
             420          [(b) (i) A person to whom notice is required under Subsection (4)(a) is responsible for:]
             421          [(A) providing an e-mail address, mailing address, or telefax number to which a notice
             422      required by Subsection (4)(a) is to be sent; and]
             423          [(B) the accuracy of any e-mail address, mailing address, or telefax number to which notice
             424      is to be sent.]
             425          [(ii) The designated agent fulfills the notice requirement of Subsection (4)(a) when it sends
             426      the notice to the e-mail address, mailing address, or telefax number provided to the designated agent
             427      whether or not the notice is actually received.]
             428          [(5) (a) The burden is upon any person seeking to enforce a notice of commencement to
             429      verify the accuracy of information in the notice of commencement and prove that the notice of
             430      commencement is filed timely and meets all of the requirements in this section.]
             431          [(b) A substantial inaccuracy in a notice of commencement renders the notice of
             432      commencement unenforceable.]
             433          [(c) A person filing a notice of commencement by alternate filing is responsible for verifying
             434      and changing any incorrect information in the notice of commencement before the expiration of the
             435      time period during which the notice is required to be filed.]
             436          [(6)] (2) At the time a building permit is obtained, each original contractor shall
             437      conspicuously post at the project site a copy of the building permit obtained for the project.
             438          Section 9. Section 38-1-31.5 is enacted to read:
             439          38-1-31.5. Notice of commencement for a government project.
             440          (1) No later than 15 days after commencement of physical construction work at a
             441      government project site, the original contractor, owner, or owner-builder shall file a notice of
             442      commencement with the database.
             443          (2) An original contractor, owner, or owner-builder on a government project may file a
             444      notice of commencement with the designated agent before the commencement of physical


             445      construction work on the project property.
             446          (3) (a) If duplicate notices of commencement are filed, they shall be combined into one
             447      notice for each government project, and any notices filed relate back to the date of the earliest-filed
             448      notice of commencement for the project.
             449          (b) A duplicate notice of commencement that is untimely filed relates back under Subsection
             450      (3)(a) if the earlier filed notice of commencement is timely filed.
             451          (c) Duplicate notices of commencement shall be automatically linked by the designated
             452      agent.
             453          (4) The designated agent shall assign each government project a unique project number that:
             454          (a) identifies the project; and
             455          (b) can be associated with all notices of commencement, preliminary notices, and notices of
             456      completion filed in connection with the project.
             457          (5) A notice of commencement is effective only as to any labor, service, equipment, and
             458      material that is furnished after the notice of commencement is filed.
             459          (6) (a) A notice of commencement shall include:
             460          (i) the name, address, and email address of the owner of the project;
             461          (ii) the name, address, and email address of the original contractor;
             462          (iii) the name, address, and email address of the surety providing any payment bond for the
             463      project or, if none exists, a statement that a payment bond was not required for the work being
             464      performed;
             465          (iv) (A) the project address if the project can be reasonably identified by an address; or
             466          (B) the name and general description of the location of the project, if the project cannot be
             467      reasonably identified by an address; and
             468          (v) the government project-identifying information.
             469          (b) A notice of commencement may include a general description of the project.
             470          (7) If a notice of commencement for a government project is not filed within the time set forth


             471      in Subsection (1), Sections 38-1-32.5 and 38-1-33 do not apply.
             472          (8) (a) Notwithstanding any other provision of this chapter, a notice of commencement need
             473      not be filed for a private project.
             474          (b) A provision of this chapter does not apply to a private project if the provision depends
             475      for its effectiveness upon the filing of a notice of commencement.
             476          (9) (a) Unless a person indicates to the division or designated agent that the person does not
             477      wish to receive a notice under this section, the designated agent shall provide electronic notice of the
             478      filing of a notice of commencement or alternate filing to:
             479          (i) all persons who have filed notices of commencement for the project; and
             480          (ii) all interested persons who have requested notices concerning the project.
             481          (b) A person to whom notice is required under Subsection (9)(a) is responsible for:
             482          (i) providing an email address, mailing address, or telefax number to which a notice required
             483      by Subsection (9)(a) is to be sent; and
             484          (ii) the accuracy of any email address, mailing address, or telefax number to which notice is
             485      to be sent.
             486          (c) The designated agent fulfills the notice requirement of Subsection (9)(a) by sending the
             487      notice to the email address, mailing address, or telefax number provided to the designated agent,
             488      whether or not the notice is actually received.
             489          (10) (a) The burden is upon any person seeking to enforce a notice of commencement to
             490      verify the accuracy of information in the notice of commencement and prove that the notice of
             491      commencement is filed timely and meets all of the requirements of this section.
             492          (b) A substantial inaccuracy in a notice of commencement renders the notice of
             493      commencement invalid.
             494          (c) A person filing a notice of commencement by alternate filing is responsible for verifying
             495      and changing any incorrect information in the notice of commencement before the expiration of the
             496      time period during which the notice is required to be filed.


             497          Section 10. Section 38-1-32 is amended to read:
             498           38-1-32. Preliminary notice for a private project.
             499          (1) As used in this section:
             500          (a) "Pre-lender claimant" means a person whose lien under this chapter is made subject to a
             501      construction lender's mortgage or trust deed, as provided in Subsection 38-1-5 (3)(b), by the
             502      person's acceptance of payment in full and the person's withdrawal of the person's preliminary notice.
             503          (b) "Refiled preliminary notice" means a preliminary notice that a pre-lender claimant files
             504      under Subsection (2)(a)(ii) with the database on a project after withdrawing a preliminary notice that
             505      the claimant previously filed for the same project.
             506          [(1)] (2) (a) (i) [Except for a person who has a contract with an owner or an owner-builder
             507      or a laborer compensated with wages, a subcontractor] A person who, under Section 38-1-3 , is
             508      entitled to a lien under this chapter with respect to a private project shall file a preliminary notice with
             509      the database [by the] no later [of: (A)] than 20 days after [commencement of its own work or the
             510      commencement of] the person commences furnishing labor, service, equipment, [and] or material to
             511      [a construction] the project[; or].
             512          (ii) A pre-lender claimant who, under Section 38-1-3 , is entitled to claim a lien under this
             513      chapter for labor, service, equipment, or material the claimant furnishes to a private project after the
             514      recording of a construction lender's mortgage or trust deed on the project property shall file a
             515      preliminary notice within 20 days after the recording of the mortgage or trust deed.
             516          [(B) 20 days after the filing of a notice of commencement if the subcontractor's work
             517      commences before the filing of the first notice of commencement.]
             518          [(ii)] (b) [A] Subject to Subsection (2)(c), a preliminary notice [filed within the period
             519      described in Subsection (1)(a)(i)] is effective as to all labor, service, equipment, and material
             520      [furnished] that the person filing the notice furnishes to the [construction] private project, including
             521      labor, service, equipment, and material [provided] that the person furnishes to more than one
             522      contractor or subcontractor on that same project.


             523          [(iii) (A) If more than one notice of commencement is filed for a project, a person may attach
             524      a preliminary notice to any notice of commencement filed for the project by a party authorized in
             525      Section 38-1-31 .]
             526          [(B) A preliminary notice attached to an untimely notice of commencement is valid if there is
             527      also a valid and timely notice of commencement for the project filed by a party authorized in Section
             528      38-1-31 .]
             529          [(b)] (c) [If a person files a] A preliminary notice filed after the period [prescribed by]
             530      provided in Subsection [(1)] (2)(a)[, the preliminary notice]:
             531          (i) becomes effective five days after the day [on which] the preliminary notice is filed[.]; and
             532          (ii) is not effective for labor, service, equipment, or material that the person who files the
             533      preliminary notice furnishes to the construction project before five days after the preliminary notice is
             534      filed.
             535          [(c) Except as provided in Subsection (1)(e), failure to file a preliminary notice within the
             536      period required by Subsection (1)(a) precludes a person from maintaining any claim for compensation
             537      earned for performance of labor or service or supply of materials or equipment furnished to the
             538      construction project before the expiration of five days after the late filing of a preliminary notice,
             539      except as against the person with whom the person contracted.]
             540          (d) (i) (A) [If a] A person who [is required to file a preliminary notice under this chapter] fails
             541      to file [the] a preliminary notice[, that person] as required in this section may not hold a valid lien
             542      under this chapter.
             543          (B) A person who files a preliminary notice after the period provided in Subsection (2)(a)
             544      may not hold a valid lien under this chapter for labor, service, equipment, or material the person
             545      furnishes to the construction project before five days after the preliminary notice is filed.
             546          [(B)] (ii) A county recorder need not verify that a valid preliminary notice is filed when a
             547      person files a notice to hold and claim a lien under Section 38-1-7 .
             548          [(ii) The content of a]


             549          (e) (i) Except as provided in Subsection (2)(e)(ii), a preliminary notice that is timely filed with
             550      the database with respect to a private project is considered to be filed at the time of the first
             551      preliminary notice filing, as defined in Section 38-1-5 .
             552          (ii) A timely filed preliminary notice that is a refiled preliminary notice is considered to be filed
             553      immediately after the recording of a mortgage or trust deed of the construction lender that paid the
             554      pre-lender claimant in full for labor, service, equipment, or material the claimant furnished before the
             555      recording of the mortgage or trust deed.
             556          (f) If a preliminary notice filed with the database includes the tax parcel identification number
             557      of a parcel not previously associated in the database with a private project, the designated agent shall
             558      promptly notify the person who filed the preliminary notice that:
             559          (i) the preliminary notice includes a tax parcel identification number of a parcel not previously
             560      associated in the database with a private project; and
             561          (ii) the likely explanation is that:
             562          (A) the preliminary notice is the first filing for the project; or
             563          (B) the tax parcel identification number is incorrectly stated in the preliminary notice.
             564          (g) A preliminary notice for a private project shall include:
             565          [(A) the building permit number for the project, or the number assigned to the project by the
             566      designated agent;]
             567          [(B)] (i) the name, address, [and] telephone number, and email address of the person
             568      furnishing the labor, service, equipment, or material for which the preliminary notice is filed;
             569          [(C)] (ii) the name and address of the person who contracted with the claimant for the
             570      furnishing of the labor, service, equipment, or material;
             571          [(D)] (iii) the name of the record or reputed owner of the project property;
             572          [(E)] (iv) the name of the original contractor under which the claimant is [performing]
             573      furnishing or will [perform its work; and] furnish labor, service, equipment, or material;
             574          [(F)] (v) the address of the project property or a description of the location of the project[.];


             575          [(iii) Upon request by person identified in Subsection (1)(a)(i), an original contractor shall
             576      provide the person with the building permit number for the project, or the number assigned to the
             577      project by the designated agent.]
             578          [(e) If a person provides labor, service, equipment, or material before the filing of a notice of
             579      commencement and the notice of commencement is filed more than 15 days after the day on which
             580      the person providing labor, service, equipment, or material begins work on the project, the person
             581      providing labor, service, equipment, or material need not file a preliminary notice to maintain the
             582      person's right to hold a lien under this chapter or any other right, including a right referenced under
             583      Subsection (1)(c).]
             584          (vi) the name of the county in which the project property is located; and
             585          (vii) (A) the tax parcel identification number of each parcel included in the project property;
             586          (B) the entry number of a previously filed notice of construction loan under Section
             587      38-1-30.5 on the same project;
             588          (C) the entry number of a previously filed preliminary notice on the same project that
             589      includes the tax parcel identification number of each parcel included in the project property; or
             590          (D) the entry number of the building permit issued for the project.
             591          (h) A preliminary notice for a private project may include:
             592          (i) the subdivision, development, or other project name applicable to the construction project
             593      for which the preliminary notice is filed; and
             594          (ii) the lot or parcel number of each lot or parcel that is included in the project property.
             595          [(2)] (3) (a) [(i)] Unless a person indicates to the division or designated agent that the person
             596      does not wish to receive a notice under this section, electronic notification of the filing of a preliminary
             597      notice or alternate [notice as prescribed in Subsection (1),] filing shall be provided to:
             598          [(A)] (i) the person filing the preliminary notice; and
             599          [(B) each person that filed a notice of commencement for the project; and]
             600          [(C) all interested persons who have requested notices]


             601          (ii) each person who has requested a notice concerning the project.
             602          [(ii)] (b) A person to whom notice is required to be provided under Subsection (2)(a)[(i)] is
             603      responsible for:
             604          [(A)] (i) providing an email address, mailing address, or telefax number to which a notice
             605      required by Subsection (2)(a) is to be sent; and
             606          [(B)] (ii) the accuracy of any email address, mailing address, or telefax number to which
             607      notice is to be sent.
             608          [(iii)] (c) The designated agent fulfills the notice requirement of Subsection (2)(a)[(i) when it
             609      sends] by sending the notice to the email address, mailing address, or telefax number provided to the
             610      designated agent, whether or not the notice is actually received.
             611          [(b)] (4) (a) The burden is upon the person filing the preliminary notice to prove that the
             612      person has substantially complied with the requirements of this section.
             613          (b) Substantial compliance with the requirements of Subsection (2)(g) may be established by
             614      a person's reasonable reliance on information in the database provided by a previously filed:
             615          (i) notice of construction loan under Section 38-1-30.5 ;
             616          (ii) preliminary notice; or
             617          (iii) building permit.
             618          [(c)] (5) (a) Subject to Subsection [(2)(d)] (5)(b), a person required by this section to give
             619      preliminary notice is only required to give one notice for each project.
             620          [(d)] (b) If the labor, service, equipment, or material is furnished pursuant to contracts under
             621      more than one original contract, the notice requirements [must] shall be met with respect to the labor,
             622      service, equipment, or material furnished under each original contract.
             623          [(3)] (6) (a) [If a] A construction project owner, original contractor, subcontractor, or other
             624      interested person who believes that a preliminary notice has been filed erroneously[, that owner,
             625      original contractor, subcontractor, or other interested person can] may request from the person who
             626      filed the preliminary notice evidence establishing the validity of the preliminary notice.


             627          (b) Within 10 days after the request described in Subsection [(3)] (6)(a), the person or entity
             628      that filed the preliminary notice shall provide the requesting person or entity proof that the preliminary
             629      notice is valid.
             630          (c) If the person or entity that filed the preliminary notice does not provide proof of the
             631      validity of the preliminary notice, that person or entity shall immediately cancel the preliminary notice
             632      from the database in any manner prescribed by the division pursuant to rule.
             633          [(4)] (7) A person filing a preliminary notice by alternate filing is responsible for verifying and
             634      changing any incorrect information in the preliminary notice before the expiration of the time period
             635      during which the notice is required to be filed.
             636          [(5) Until June 1, 2008, nothing in this section affects a person's rights under Title 38,
             637      Chapter 11, Residence Lien Restriction and Lien Recovery Fund Act.]
             638          (8) (a) A person who files a preliminary notice before the recording of a construction lender's
             639      mortgage or trust deed may withdraw the preliminary notice by filing with the database a notice of
             640      withdrawal as provided in Subsection (8)(b).
             641          (b) A notice of withdrawal shall include:
             642          (i) the information required for a preliminary notice under Subsection (2)(g); and
             643          (ii) the entry number of the preliminary notice being withdrawn.
             644          (9) A person who files a preliminary notice that contains inaccurate or incomplete information
             645      may not be held liable for damages suffered by any other person who relies on the inaccurate or
             646      incomplete information in filing a preliminary notice.
             647          Section 11. Section 38-1-32.5 is enacted to read:
             648          38-1-32.5. Preliminary notice on government project.
             649          (1) Except for a person who has a contract with an owner or an owner-builder or a laborer
             650      compensated with wages, a subcontractor on a government project shall file a preliminary notice with
             651      the database by the later of:
             652          (a) 20 days after the subcontractor commences the subcontractor's own work or


             653      commences furnishing labor, service, equipment, or material to the construction project; and
             654          (b) 20 days after the filing of a notice of commencement, if the subcontractor's work
             655      commences before the filing of the first notice of commencement.
             656          (2) A preliminary notice filed within the period described in Subsection (1) is effective as to
             657      all labor, service, equipment, and material that the subcontractor furnishes to the construction project,
             658      including labor, service, equipment, and material provided that the subcontractor furnishes to more
             659      than one contractor or subcontractor.
             660          (3) (a) If more than one notice of commencement is filed for a project, a person may attach a
             661      preliminary notice to any notice of commencement filed for the project.
             662          (b) A preliminary notice attached to an untimely notice of commencement is valid if there is
             663      also a valid and timely notice of commencement for the project.
             664          (4) If a person files a preliminary notice after the period prescribed by Subsection (1), the
             665      preliminary notice becomes effective five days after the day on which the preliminary notice is filed.
             666          (5) Except as provided in Subsection (8), failure to file a preliminary notice within the period
             667      required by Subsection (1) precludes a person from maintaining any claim for compensation earned
             668      for labor, service, material, or equipment furnished to the construction project before the expiration of
             669      five days after the late filing of a preliminary notice, except as against the person with whom the
             670      person contracted.
             671          (6) A preliminary notice on a government project shall include:
             672          (a) the government project-identifying information;
             673          (b) the name, address, and telephone number of the person furnishing the labor, service,
             674      equipment, or material;
             675          (c) the name and address of the person who contracted with the claimant for the furnishing of
             676      the labor, service, equipment, or material;
             677          (d) the name of the record or reputed owner of the project;
             678          (e) the name of the original contractor under which the claimant is performing or will perform


             679      its work; and
             680          (f) the address of the project or a description of the location of the project.
             681          (7) Upon request, an original contractor shall provide a subcontractor with the number
             682      assigned to the project by the designated agent.
             683          (8) A person who provides labor, service, equipment, or material before the filing of a notice
             684      of commencement need not file a preliminary notice to maintain any right the person would otherwise
             685      have, if the notice of commencement is filed more than 15 days after the day on which the person
             686      begins work on the project.
             687          (9) Subsections 38-1-32 (2), (3), (4), (5), and (6) apply to a preliminary notice on a
             688      government project under this section to the same extent that those subsections apply to a preliminary
             689      notice on a private project under Section 38-1-32 .
             690          Section 12. Section 38-1-32.7 is enacted to read:
             691          38-1-32.7. Notice concerning construction loan default.
             692          (1) Within five business days after a notice of default is filed for recording under Section
             693      57-1-24 with respect to a trust deed on the project property securing a construction loan, the
             694      construction lender under the loan shall file a notice with the database.
             695          (2) A notice under Subsection (1) shall:
             696          (a) include:
             697          (i) the information required to be included in a notice of construction loan under Subsections
             698      38-1-30.5 (3)(a), (b), (c), (d), and (e); and
             699          (ii) the entry number of the notice of construction loan;
             700          (b) state that a notice of default with respect to the construction loan has been recorded; and
             701          (c) state the date that the notice of default was recorded.
             702          Section 13. Section 38-1-33 is amended to read:
             703           38-1-33. Notice of completion.
             704          (1) (a) Upon final completion of a construction project, and in accordance with Section


             705      38-1-40 , the following with a construction project registered with the database may file a notice of
             706      completion with the database:
             707          (i) an owner of the construction project;
             708          (ii) an original contractor of the construction project;
             709          (iii) a lender that has provided financing for the construction project;
             710          (iv) a surety that has provided bonding for the construction project; or
             711          (v) a title company issuing a title insurance policy on the construction project.
             712          (b) Notwithstanding Section 38-1-2 , if a subcontractor performs substantial work after the
             713      applicable dates established by Subsection (1)(a), that subcontractor's subcontract is considered an
             714      original contract for the sole purpose of determining:
             715          (i) the subcontractor's time frame to file a notice to hold and claim a lien under Subsection
             716      38-1-7 (1); and
             717          (ii) the original contractor's time frame to file a notice to hold and claim a lien under
             718      Subsection 38-1-7 (1) for that subcontractor's work.
             719          (c) A notice of completion shall include:
             720          [(i) the building permit number for the project, or the number assigned to the project by the
             721      designated agent;]
             722          [(ii)] (i) the name, address, [and] telephone number, and email address of the person filing
             723      the notice of completion;
             724          [(iii) the name of the original contractor for the project;]
             725          [(iv) the address of the project or a description of the location of the project;]
             726          (ii) the name of the county in which the project property is located;
             727          (iii) for a private project:
             728          (A) the tax parcel identification number of each parcel included in the project property;
             729          (B) the entry number of a preliminary notice on the same project that includes the tax parcel
             730      identification number of each parcel included in the project property; or


             731          (C) the entry number of the building permit issued for the project;
             732          (iv) for a government project, the government project-identifying information;
             733          (v) the date on which final completion is alleged to have occurred; and
             734          (vi) the method used to determine final completion.
             735          (d) For purposes of this section, final completion of the original contract does not occur if
             736      work remains to be completed for which the owner is holding payment to ensure completion of the
             737      work.
             738          (e) (i) Unless a person indicates to the division or designated agent that the person does not
             739      wish to receive a notice under this section, electronic notification of the filing of a notice of completion
             740      or alternate [notice as prescribed in Subsection (1)(a),] filing shall be provided to:
             741          (A) each person that filed a notice of commencement for the project;
             742          (B) each person that filed preliminary notice for the project; and
             743          (C) all interested persons who have requested notices concerning the project.
             744          (ii) A person to whom notice is required under this Subsection (1)(e) is responsible for:
             745          (A) providing an email address, mailing address, or telefax number to which a notice
             746      required by this Subsection (1)(e) is to be sent; and
             747          (B) the accuracy of any email address, mailing address, or telefax number to which notice is
             748      to be sent.
             749          (iii) The designated agent fulfills the notice requirement of Subsection (1)(e)(i) when it sends
             750      the notice to the email address, mailing address, or telefax number provided to the designated agent,
             751      whether or not the notice is actually received.
             752          (iv) Upon the filing of a notice of completion, the time periods for filing a preliminary [notices]
             753      notice stated in Section [ 38-1-27 ] 38-1-32 or 38-1-32.5 are modified such that all preliminary
             754      notices shall be filed subsequent to the notice of completion and within 10 days from the day on
             755      which the notice of completion is filed.
             756          (f) A subcontract that is considered an original contract for purposes of this section does not


             757      create a requirement for an additional preliminary notice if a preliminary notice has already been given
             758      for the labor, service, equipment, and material furnished to the subcontractor who performs
             759      substantial work.
             760          (2) (a) If a construction project owner, original contractor, subcontractor, or other interested
             761      person believes that a notice of completion has been filed erroneously, that owner, original contractor,
             762      subcontractor, or other interested person can request from the person who filed the notice of
             763      completion evidence establishing the validity of the notice of completion.
             764          (b) Within 10 days after the request described in Subsection (2)(a), the person who filed the
             765      notice of completion shall provide the requesting person proof that the notice of completion is valid.
             766          (c) If the person that filed the notice of completion does not provide proof of the validity of
             767      the notice of completion, that person shall immediately cancel the notice of completion from the
             768      database in any manner prescribed by the division pursuant to rule.
             769          (3) A person filing a notice of completion by alternate filing is responsible for verifying and
             770      changing any incorrect information in the notice of completion before the expiration of the time period
             771      during which the notice is required to be filed.
             772          Section 14. Section 58-56-20 is amended to read:
             773           58-56-20. Standardized building permit content.
             774          (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             775      division shall adopt a standardized building permit form by rule.
             776          (2) (a) The standardized building permit form created under Subsection (1) shall include
             777      fields for indicating the following information:
             778          (i) the name and address of the owner of [or contractor for the] each parcel of property on
             779      which the project will occur;
             780          (ii) the name and address of the contractor for the project;
             781          [(ii)] (iii) (A) the address of the project; or
             782          (B) a general description of the project; [and]


             783          (iv) the county in which the property on which the project will occur is located;
             784          (v) the tax parcel identification number of each parcel of the property; and
             785          [(iii)] (vi) whether the permit applicant is an original contractor or owner-builder.
             786          (b) The standardized building permit form created under Subsection (1) may include any
             787      other information the division considers useful.
             788          (3) (a) A compliance agency shall issue a permit for construction only on a standardized
             789      building permit form approved by the division.
             790          (b) A permit for construction issued by a compliance agency under Subsection (3)(a) shall
             791      print the standardized building permit number assigned under Section 58-56-19 in the upper
             792      right-hand corner of the building permit form in at least 12-point type.
             793          (c) (i) Except as provided in Subsection (3)(c)(ii), a compliance agency may not issue a
             794      permit for construction if the information required by Subsection (2)(a) is not completed on the
             795      building permit form.
             796          (ii) If a compliance agency does not issue a separate permit for different aspects of the same
             797      project, the compliance agency may issue a permit for construction without the information required
             798      by Subsection (2)(a)[(iii)](vi).
             799          (d) A compliance agency may require additional information for the issuance of a permit for
             800      construction.
             801          (4) A local regulator issuing a single-family residential building permit application shall include
             802      in the application or attach to the building permit the following notice prominently placed in at least 14
             803      point font: "Decisions relative to this application are subject to review by the chief executive officer of
             804      the municipal or county entity issuing the single-family residential building permit and appeal under the
             805      International Residential Code as adopted by the Legislature."
             806          Section 15. Section 63G-6-506 is amended to read:
             807           63G-6-506. Preliminary notice requirement.
             808          (1) Any person furnishing labor, service, equipment, or material for which a payment bond


             809      claim may be made under this chapter shall provide preliminary notice to the designated agent as
             810      prescribed by Section [ 38-1-32 ] 38-1-32.5 , except that this section does not apply:
             811          (a) to a person performing labor for wages; or
             812          (b) if a notice of commencement is not filed as prescribed in Section [ 38-1-31 ] 38-1-31.5
             813      for the project or improvement for which labor, service, equipment, or material is furnished.
             814          (2) Any person who fails to provide the preliminary notice required by Subsection (1) may
             815      not make a payment bond claim under this chapter.
             816          (3) The preliminary notice required by Subsection (1) must be provided [prior to] before
             817      commencement of any action on the payment bond.
             818          Section 16. Repealer.
             819          This bill repeals:
             820          Section 38-1-37, Application of Section 38-1-27 and Sections 38-1-30 through 38-1-36.
             821          Section 17. Legislative intent.
             822          It is the intent of the Legislature that:
             823          (1) the changes to the law made by this bill apply only to construction projects that
             824      commence on or after August 1, 2011; and
             825          (2) during the 2012 and 2013 interim periods, before the November interim committee
             826      meeting each year, the Business and Labor Interim Committee review and evaluate the
             827      implementation of this bill, determine whether the provisions of this bill should be modified or
             828      repealed, and make a recommendation accordingly to the Legislative Management Committee.
             829          Section 18. Effective date.
             830          This bill takes effect on August 1, 2011.
             831          Section 19. Coordinating H.B. 260 with H.B. 203 -- Technically merging substantive
             832      amendments.
             833          If this H.B. 260 and H.B. 203, Codification of State Construction and Fire Codes, both pass,
             834      it is the intent of the Legislature that:


             835          (1) the coordination clause in this H.B. 260 supersedes the coordination clause contained in
             836      H.B. 203; and
             837          (2) the Office of Legislative Research and General Counsel, in preparing the Utah Code
             838      database for publication:
             839          (a) modify Subsection 15A-1-209 (3)(b), as enacted in H.B. 203, to read:
             840          "(b) The standardized building permit form created under this Subsection (3) shall include
             841      fields for indicating the following information:
             842          (i) the name and address of the owner of each parcel of property on which the project will
             843      occur;
             844          (ii) the name and address of the contractor for the project;
             845          (iii) (A) the address of the project; or
             846          (B) a general description of the project;
             847          (iv) the county in which the property on which the project will occur is located;
             848          (v) the tax parcel identification number of each parcel of the property; and
             849          (vi) whether the permit applicant is an original contractor or owner-builder."; and
             850          (b) change the citation in Subsection 15A-1-209 (3)(f)(ii), as enacted in H.B. 203, from
             851      "Subsection (3)(b)(iii)" to "Subsection (3)(b)(vi)."
             852          Section 20. Coordinating H.B. 260 with H.B. 115 -- Technically merging substantive
             853      amendments.
             854          If this H.B. 260 and H.B. 115, Mechanics' Lien Amendments, both pass, it is the intent of the
             855      Legislature that:
             856          (1) the Office of Legislative Research and General Counsel, in preparing the Utah Code
             857      database for publication:
             858          (a) modify Subsection 38-1-2 (6) to read:
             859          "(6) "Construction service":
             860          (a) means to furnish labor, service, material, or equipment for the purpose and during the


             861      process of constructing, altering, or repairing an improvement; and
             862          (b) includes the scheduling, estimating, staking, supervising, managing, materials testing,
             863      inspection, observation, and quality control or assurance involved in constructing, altering, or repairing
             864      an improvement.";
             865          (b) modify Section 38-1-5 to read:
             866          " 38-1-5. Relation back and priority of liens.
             867          [The liens herein provided for shall relate]
             868          (1) As used in this section:
             869          (a) "First preliminary notice filing" means the filing of a preliminary notice that is:
             870          (i) the earliest preliminary notice filed on a private project, as defined in Section 38-1-27 ;
             871          (ii) filed on or after August 1, 2011;
             872          (iii) not filed on a project that, according to the law in effect before August 1, 2011,
             873      commenced before August 1, 2011;
             874          (iv) not canceled under Subsection 38-1-32 (6); and
             875          (v) not withdrawn under Subsection 38-1-32 (8).
             876          (b) "Project property" means the real property on which an improvement is being
             877      constructed or made.
             878          (2) A construction service lien relates back to, and [take] takes effect as of, the time of the
             879      [commencement to do work or furnish materials on the ground for the structure or improvement, and
             880      shall have] first preliminary notice filing.
             881          (3) (a) Subject to Subsection (3)(b), a construction service lien has priority over:
             882          (i) any lien, mortgage, or other encumbrance [which may have attached subsequently to the
             883      time when the building, improvement or structure was commenced, work begun, or first material
             884      furnished on the ground; also over] that attaches after the first preliminary notice filing; and
             885          (ii) any lien, mortgage, or other encumbrance of which the lien holder had no notice and
             886      which was unrecorded at the time [the building, structure or improvement was commenced, work


             887      begun, or first material furnished on the ground] of the first preliminary notice filing.
             888          (b) A recorded mortgage or trust deed of a construction lender has priority over each
             889      construction service lien of a claimant who files a preliminary notice in accordance with Section
             890      38-1-32 before the mortgage or trust deed is recorded if the claimant:
             891          (i) accepts payment in full for construction service that the claimant furnishes to the project
             892      before the mortgage or trust deed is recorded; and
             893          (ii) withdraws the claimant's preliminary notice by filing a notice of withdrawal under
             894      Subsection 38-1-32 (8).";
             895          (c) modify Subsection 38-1-19 (1) to read:
             896          "[When any] (1) If a subcontractor [shall have] has actually begun to [furnish labor or
             897      materials] perform preconstruction service or furnish construction service for which [he] the
             898      subcontractor is entitled to a lien [no], a payment to the original contractor [shall] may not impair or
             899      defeat [such] the lien[; and no].";
             900          (d) modify Subsection 38-1-27 (2)(c) to read:
             901          "(c) provide a central repository for [notices of commencement, preliminary notices, and
             902      notices of completion filed in connection with all privately owned construction projects as well as all
             903      state and local government owned construction projects throughout Utah] all notices filed with the
             904      database under Section 38-1-30.5 , 38-1-30.7 , 38-1-31.5 , 38-1-32 , 38-1-32.5 , 38-1-32.7 ,
             905      38-1-33 , or 38-1-40 ;";
             906          (e) modify Subsection 38-1-32 (2) to read:
             907          "[(1)] (2) (a) (i) [Except for a person who has a contract with an owner or an owner-builder
             908      or a laborer compensated with wages, a subcontractor] A person who, under Section 38-1-3 , is
             909      entitled to a construction service lien with respect to a private project shall file a preliminary notice
             910      with the database [by the] no later [of: (A)] than 20 days after [commencement of its own work or
             911      the commencement of] the person commences furnishing [labor, service, equipment, and material]
             912      construction service to [a construction] the project[; or].


             913          (ii) A pre-lender claimant who, under Section 38-1-3 , is entitled to claim a construction
             914      service lien for construction service the claimant furnishes to a private project after the recording of a
             915      construction lender's mortgage or trust deed on the project property shall file a preliminary notice
             916      within 20 days after the recording of the mortgage or trust deed.
             917          [(B) 20 days after the filing of a notice of commencement if the subcontractor's work
             918      commences before the filing of the first notice of commencement.]
             919          [(ii)] (b) [A] Subject to Subsection (2)(c), a preliminary notice [filed within the period
             920      described in Subsection (1)(a)(i)] is effective as to all [labor, service, equipment, and material
             921      furnished] construction service that the person filing the notice furnishes to the [construction] private
             922      project, including [labor, service, equipment, and material provided] construction service that the
             923      person furnishes to more than one contractor or subcontractor on that same project.
             924          [(iii) (A) If more than one notice of commencement is filed for a project, a person may attach
             925      a preliminary notice to any notice of commencement filed for the project by a party authorized in
             926      Section 38-1-31 .]
             927          [(B) A preliminary notice attached to an untimely notice of commencement is valid if there is
             928      also a valid and timely notice of commencement for the project filed by a party authorized in Section
             929      38-1-31 .]
             930          [(b)] (c) [If a person files a] A preliminary notice filed after the period [prescribed by]
             931      provided in Subsection [(1)] (2)(a)[, the preliminary notice]:
             932          (i) becomes effective five days after the day [on which] the preliminary notice is filed[.]; and
             933          (ii) is not effective for construction service that the person who files the preliminary notice
             934      furnishes to the construction project before five days after the preliminary notice is filed.
             935          [(c) Except as provided in Subsection (1)(e), failure to file a preliminary notice within the
             936      period required by Subsection (1)(a) precludes a person from maintaining any claim for compensation
             937      earned for performance of labor or service or supply of materials or equipment furnished to the
             938      construction project before the expiration of five days after the late filing of a preliminary notice,


             939      except as against the person with whom the person contracted.]
             940          (d) (i) (A) [If a] A person who [is required to file a preliminary notice under this chapter] fails
             941      to file [the] a preliminary notice[, that person] as required in this section may not hold a valid
             942      construction service lien under this chapter.
             943          (B) A person who files a preliminary notice after the period provided in Subsection (2)(a)
             944      may not hold a valid construction service lien for construction service the person furnishes to the
             945      construction project before five days after the preliminary notice is filed.
             946          [(B)] (ii) A county recorder need not verify that a valid preliminary notice is filed when a
             947      person files a notice to hold and claim a lien under Section 38-1-7 .
             948          [(ii) The content of a]
             949          (e) (i) Except as provided in Subsection (2)(e)(ii), a preliminary notice that is timely filed with
             950      the database with respect to a private project is considered to be filed at the time of the first
             951      preliminary notice filing, as defined in Section 38-1-5 .
             952          (ii) A timely filed preliminary notice that is a refiled preliminary notice is considered to be filed
             953      immediately after the recording of a mortgage or trust deed of the construction lender that paid the
             954      pre-lender claimant in full for construction service the claimant furnished before the recording of the
             955      mortgage or trust deed.
             956          (f) If a preliminary notice filed with the database includes the tax parcel identification number
             957      of a parcel not previously associated in the database with a private project, the designated agent shall
             958      promptly notify the person who filed the preliminary notice that:
             959          (i) the preliminary notice includes a tax parcel identification number of a parcel not previously
             960      associated in the database with a private project; and
             961          (ii) the likely explanation is that:
             962          (A) the preliminary notice is the first filing for the project; or
             963          (B) the tax parcel identification number is incorrectly stated in the preliminary notice.
             964          (g) A preliminary notice for a private project shall include:


             965          [(A) the building permit number for the project, or the number assigned to the project by the
             966      designated agent;]
             967          [(B)] (i) the name, address, [and] telephone number, and email address of the person
             968      furnishing the [labor, service, equipment, or material] construction service for which the preliminary
             969      notice is filed;
             970          [(C)] (ii) the name and address of the person who contracted with the claimant for the
             971      furnishing of the [labor, service, equipment, or material] construction service;
             972          [(D)] (iii) the name of the record or reputed owner of the project property;
             973          [(E)] (iv) the name of the original contractor for construction service under which the
             974      claimant is [performing] furnishing or will [perform its work; and] furnish construction service;
             975          [(F)] (v) the address of the project property or a description of the location of the project[.];
             976          [(iii) Upon request by person identified in Subsection (1)(a)(i), an original contractor shall
             977      provide the person with the building permit number for the project, or the number assigned to the
             978      project by the designated agent.]
             979          [(e) If a person provides labor, service, equipment, or material before the filing of a notice of
             980      commencement and the notice of commencement is filed more than 15 days after the day on which
             981      the person providing labor, service, equipment, or material begins work on the project, the person
             982      providing labor, service, equipment, or material need not file a preliminary notice to maintain the
             983      person's right to hold a lien under this chapter or any other right, including a right referenced under
             984      Subsection (1)(c).]
             985          (vi) the name of the county in which the project property is located; and
             986          (vii) (A) the tax parcel identification number of each parcel included in the project property;
             987          (B) the entry number of a previously filed notice of construction loan under Section
             988      38-1-30.7 on the same project;
             989          (C) the entry number of a previously filed preliminary notice on the same project that
             990      includes the tax parcel identification number of each parcel included in the project property; or


             991          (D) the entry number of the building permit issued for the project.
             992          (h) A preliminary notice for a private project may include:
             993          (i) the subdivision, development, or other project name applicable to the construction project
             994      for which the preliminary notice is filed; and
             995          (ii) the lot or parcel number of each lot or parcel that is included in the project property.";
             996      and
             997          (f) modify Subsection 38-1-32 (5) to read:
             998          "[(c)] (5) (a) Subject to Subsection [(2)(d)] (5)(b), a person required by this section to give
             999      preliminary notice is only required to give one notice for each project.
             1000          [(d)] (b) If the [labor, service, equipment, or material] construction service is furnished
             1001      pursuant to contracts under more than one original contract for construction service, the notice
             1002      requirements [must] shall be met with respect to the [labor, service, equipment, or material]
             1003      construction service furnished under each original contract.";
             1004          (2) the amendments to Subsection 38-1-27 (2)(d) in this H.B. 260 supersede the
             1005      amendments to Subsection 38-1-27 (2)(d) in H.B. 115;
             1006          (3) the amendments to Subsection 38-1-27 (4)(a) in this H.B. 260 supersede the
             1007      amendments to Subsection 38-1-27 (4)(a) in H.B. 115; and
             1008          (4) (a) Section 30-1-30.5 , as enacted in this H.B. 260, be renumbered to Section
             1009      30-1-30.7 ; and
             1010          (b) all references in this H.B. 260 to Section 30-1-30.5 be changed to Section 30-1-30.7 .


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