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Senate approves lien-timing and subcontractor rule changes

Utah State Senate · February 6, 2004
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Summary

The Senate amended and passed House Bill 32 to shorten the deadline for filing actions related to construction liens, tighten definitions of residential construction and make late subcontractors subject to lien rules for certain purposes.

The Senate amended and passed House Bill 32 on Feb. 5, a measure that revises lien procedures in residential construction.

Sponsor Senator Jenkins described the floor amendment as closing a loophole that allowed late subcontractors — for example landscapers or sprinkler installers — to avoid lien responsibilities after substantial completion. Under the amendment, those subcontractors performing substantial work after the filing deadline will be treated as original contractors for limited lien-determination purposes. The bill also shortens the timing for filing an action from one year (12 months) to 180 days and clarifies the residential-construction definition for preliminary notices.

Senator Jenkins said the changes were requested by industry stakeholders and represented a consensus. The Senate adopted amendments that the sponsor handed out and the bill passed by roll call (chair announced 20 ayes, no nays, 9 absent).

What’s next: The bill will be referred back to the House for further consideration.

(Reporting based on sponsor remarks and the roll-call announcement.)