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House approves mechanics-lien reform, creates contractor-funded recovery fund
Summary
The Utah House passed substitute Senate Bill 87 after floor amendments, establishing a recovery fund to reimburse subcontractors and limit homeowners’ exposure to duplicate mechanics liens; the bill funds the program by assessing fees on licensed contractors.
The Utah House on the floor passed substitute Senate Bill 87, a measure to limit homeowner exposure to duplicate mechanics liens and create a contractor-funded recovery fund for unpaid subcontractors.
The bill’s sponsor told members the measure is “a consumer bill that is designed to protect homeowners from mechanics lien being filed against their homes where the homeowner has already paid for the work.” The proposal creates a lien-recovery fund, financed by fees assessed to licensed contractors in Utah; the sponsor estimated the average fee would be…
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