MINUTES OF THE HOUSE BUSINESS AND LABOR

STANDING COMMITTEE

Room 445, State Capitol

February 24, 2015

Members Present:    Rep. Val Peterson, Chair

                                    Rep. John Knotwell, Vice Chair

                                    Rep. Jake Anderegg 

                                    Rep. Jon Cox

                                    Rep. Susan Duckworth 

                                    Rep. Gage Froerer 

                                    Rep. Brad King                                   

                                    Rep. Marc Roberts

                                    Rep. Mike Schultz

                                    Rep. Jon Stanard                                

                                    Rep. Brad Wilson

Members Absent:     Rep. Jim Dunnigan

Rep. Dixon Pitcher

                                    Rep. Curt Webb

Staff Present:            Ms. Megan Bolin, Policy Analyst 

                                    Ms. Rosemary Young, Committee Secretary

Note:                   List of visitors and a copy of handouts are filed with committee minutes.

Chair Peterson called the meeting to order at 4:11 p.m.

MOTION:     Rep. Anderegg moved to approve the minutes of the February 23, 2015 meeting. The motion passed unanimously with Rep. Froerer, Rep. Stanard, Rep. Wilson, and Rep. Knotwell absent for the vote.

2nd Sub. S.B. 93        Uniform Commercial Code Filing Amendments (Sen. L. Hillyard)

Sen. Hillyard explained the bill assisted by Kathy Berg, Director, Division of Corporations.

MOTION:     Rep. Anderegg moved to amend 2nd Sub. S.B. 93 as follows:

1.    Page 5, Lines 128 through 132:      

128information that the filing office considers appropriate. If the filing office concludes that the

129record was  not authorized and was  caused to be communicated with the intent to harass or defraud the affiant, the

130filing office shall promptly file a termination statement under Subsection (3) that will be

131effective immediately and send to the secured party of record the notice required by Subsection

132(5). The secured party may thereafter file an action for reinstatement under Subsection (6), and

2.    Page 6, Line 179 through Page 7, Line 182: 

179 (3) {  The  }  Except as provided in Section 70A-9a-513.5, the  filing office {  , as defined in Section 70A-9a-513.5,  } has no duty to form a belief

180as to whether a record was caused to be communicated with the intent to harass or defraud the

181person identified as debtor or for another unlawful purpose and has no duty to investigate or

182ascertain facts relevant to whether the intent or purpose was present.

The motion passed unanimously.

MOTION:     Rep. Knotwell moved to amend 2nd Sub. S.B. 93 as follows:

1.    Page 4, Lines 89 through 101: 

89   (ii) regardless of whether the affiant seeks a review under Subsection (6)(a)(i), file an

90action against the filing office seeking reinstatement of the financing statement to which the

91filed record relates.  

(b)  Within 10 days after being served with process in an action under this

92Subsection (6), the filing office shall file a notice indicating that the action has been

93commenced. The notice shall indicate the file number of the initial financing statement to

94which it relates.

95    {  (b)  }  (c)  If the affiant is not named as a defendant in the action described in Subsection

96(6)(a)(ii), the secured party shall send a copy of the complaint to the affiant at the address

97indicated in the affidavit. The exclusive venue for the action shall be in the Third District

98Court. A party may petition the court to consider the matter on an expedited basis.

99    {  (c)  }  (d)  An action under this Subsection (6) must be filed before the expiration of six

100months after the date on which the termination statement filed under Subsection (3) becomes

101effective.

The motion passed unanimously.

MOTION:     Rep. Stanard moved to pass out favorably 2nd Sub. H.B. 93. The motion passed unanimously.

MOTION:     Rep. Duckworth moved to place 2nd Sub. H.B. 93 on the Consent Calendar. The motion passed unanimously.

1st Sub. S.B. 118       Homeowner Association Bylaws (Sen. T. Weiler)

Sen. Weiler explained the bill assisted by John Morris, Utah Community Association Institute.

MOTION:     Rep. Schultz moved to replace 1st Sub. S.B. 118 with 2nd Sub. S.B. 118, "Homeowner and Condominium Association Modifications." The motion passed unanimously.

MOTION:     Rep. Froerer moved to pass out favorably 2nd Sub. S.B. 118. The motion passed unanimously.

1st Sub. S.B. 121       Procurement Code Revisions (Sen. K. Mayne)

Sen. Mayne explained the bill.

Spoke for the bill:       Dennis Lloyd              Workers Compensation Fund

MOTION:     Rep. Cox moved to pass out favorably 1st Sub. S.B. 121. The motion passed unanimously.

S.B. 120          Regulation of Reverse Mortgages (Sen. W. Harper)

Sen. Harper explained the bill.

MOTION:     Rep. Schultz moved to pass out favorably S.B. 120. The motion passed unanimously with Rep. Wilson absent for the vote.

MOTION:     Rep. Anderegg moved to adjourn. The motion passed unanimously with Rep. Wilson absent for the vote.

Chair Peterson adjourned the meeting at 4:55 p.m.

________________________________

Rep. Val Peterson, Chair