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Senate alters lien‑recovery rules, caps payouts in bid to stabilize fund
Summary
After a contentious floor debate, the Senate amended and passed changes to the lien recovery fund that lower the fund’s interest exposure and cap attorney‑fee payments, a move backers said is needed to prevent the fund’s near‑term exhaustion.
The Utah Senate amended and passed a measure changing how the state’s lien recovery fund pays claimants and attorney fees, after an extended and sometimes heated floor debate.
Supporters said the fund has been strained by high interest and large attorney fee awards and argued that reducing interest paid to claimants and capping fund-paid attorney fees is necessary to preserve the fund. Senator Evans said the fund had paid “$1,160 in attorney fees to collect $308.72,” using that example to illustrate perceived abuses. Sponsors proposed replacing the flat 12% payout with a prime‑linked rate and adopted a floor amendment capping payouts at no more than 10% annually for the fund’s payment to claimants.
Opponents warned that lowering fund payouts and limiting attorney fee reimbursements could make small‑claim recoveries uneconomical and reduce the fund’s accessibility, and argued the fund’s administrator already has waiver authority and a sliding scale. Senators discussed administrative limits, waiver authority and the tradeoffs between preserving the fund and ensuring access to restitution for small claimants. The Senate passed the amended bill by roll call (18 aye, 8 no, 3 absent) and referred the measure back to the House for its further action.
What happens next: the amended bill returns to the House under the conference or concurrence process; if the House accepts the Senate amendments the changes will be enrolled and the governor will be notified.
