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House passes HB 310 to end assessments to contractor lien‑recovery fund, cap admin costs
Summary
The House approved a substituted version of HB 310 that stops new assessments into Utah’s contractor lien‑recovery fund, preserves existing funds to pay claims, and limits administrative costs; sponsor said the measure reduces license fees and addresses high admin costs versus claim payments.
Representative Schultz, sponsor of HB 310, told the House that the bill ends future assessments into the lien‑recovery fund that contractors currently pay when obtaining a license, leaving existing balances in the fund to pay claims and capping long‑term administrative costs at $300,000. "In 2017 there were 8 claims paid out of this fund. Those claims totaled a hundred and $16,000. However, the administration costs in 2017 were $216,000," Schultz said, arguing the fund’s ongoing fee burden outweighed recent claim payments.
Schultz described the bill as trimming an ongoing contractor fee (an approximately $200 assessment tied to licensing) and said the state construction registry has reduced claims compared with earlier years. He acknowledged the need for protections for property owners who face improper liens but said the substitute preserves the money already in the fund to satisfy outstanding claims while ending future levies.
Representative Webb and other members moved and debated multiple substitutes. Lawmakers discussed limits on administrative spending and whether the fund should continue to pay existing obligations; one floor explanation noted the substitute "limits administrative costs in this bill to a total of $300,000 regardless of how long the fund lasts." Representative Schultz said he supported the fourth substitute and urged passage.
The House voted to adopt the substitute and to pass HB 310 as substituted. Clerk announced the vote as 69 yes, 0 no; the bill will be transmitted to the Senate for consideration.
What happens next: The House transmitted the substituted bill to the Senate; the substitute preserves existing fund balances while stopping new license assessments and places a statutory cap on future administrative spending.
Notes on sources and scope: Quotes and descriptions are drawn from floor remarks by Representative Schultz and others during the Feb. 28 House floor session. The transcript includes numerical figures for claims and administrative costs provided by the sponsor; the bill text itself, fiscal notes, and future Senate action are not contained in the transcript and are therefore "not specified" here.
