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S.B. 288
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7 LONG TITLE
8 General Description:
9 This bill enacts provisions relating to a lien for disaster recovery services.
10 Highlighted Provisions:
11 This bill:
12 . provides a lien on behalf of a provider of a disaster recovery service on proceeds
13 payable from an insurance company that covers damages caused by a disaster;
14 . establishes requirements for a provider to claim a lien; and
15 . requires a provider to give notice of a lien to the insurance company.
16 Money Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 None
20 Utah Code Sections Affected:
21 ENACTS:
22 38-14-101, Utah Code Annotated 1953
23 38-14-102, Utah Code Annotated 1953
24 38-14-103, Utah Code Annotated 1953
25 38-14-104, Utah Code Annotated 1953
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27 Be it enacted by the Legislature of the state of Utah:
28 Section 1. Section 38-14-101 is enacted to read:
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30 38-14-101. Title.
31 This chapter is known as the "Disaster Recovery Service Lien Act."
32 Section 2. Section 38-14-102 is enacted to read:
33 38-14-102. Definitions.
34 As used in this chapter:
35 (1) "Damaged property" means real property that is damaged because of a disaster.
36 (2) "Disaster" means an event or force that causes damage to real property.
37 (3) "Disaster recovery service" means labor or material provided to rebuild, repair,
38 restore, or clean real property to remedy the effects of a disaster.
39 (4) "Disaster recovery service lien" means a lien, as provided in this chapter, on
40 insurance proceeds for the unpaid balance owing to a provider under a service agreement with
41 the owner of damaged property.
42 (5) "Insurance proceeds" means money payable by an insurer to an owner of real
43 property under an insurance policy that covers damage to the real property that is caused by a
44 disaster.
45 (6) "Insurer" means an insurance company that provides insurance coverage for
46 damage to real property caused by a disaster.
47 (7) "Provider" means a person who provides disaster recovery service under a service
48 agreement.
49 (8) "Service agreement" means a written agreement between an owner of damaged
50 property and a provider under which a provider is required to provide disaster recovery service
51 for the owner's damaged property.
52 Section 3. Section 38-14-103 is enacted to read:
53 38-14-103. Disaster recovery service lien -- Requirements.
54 (1) Subject to Subsection (2), a provider that has not been paid for a disaster recovery
55 service has a disaster recovery service lien on insurance proceeds as provided in this chapter.
56 (2) A provider may not claim a disaster recovery service lien under Subsection (1)
57 unless:
58 (a) the service agreement under which the provider provides disaster recovery service
59 requires the owner to pay at least $1,000 for the provider's disaster recovery service; and
60 (b) the provider gives notice to the insurer as required in Section 38-14-104 .
61 Section 4. Section 38-14-104 is enacted to read:
62 38-14-104. Notice of a disaster recovery service lien.
63 (1) A provider that desires to claim a disaster recovery service lien shall provide
64 written notice to the insurer as provided in this section.
65 (2) A notice under Subsection (1) shall:
66 (a) notify the insurer that the provider claims a disaster recovery service lien;
67 (b) state the name, address, and telephone number of the owner of the damaged
68 property;
69 (c) state the date of the service agreement and the amount that the agreement provides
70 for the owner to pay the provider for disaster recovery service;
71 (d) describe the disaster recovery service provided by the provider and the date when
72 the provider completed the disaster recovery service;
73 (e) state the unpaid balance owing to the provider under the service agreement; and
74 (f) be sent to the insurer by certified mail no later than 10 days after the provider
75 completes the disaster recovery service the provider agrees to provide under the service
76 agreement.
Legislative Review Note
as of 2-27-12 3:46 PM