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House Bills 136, 105 and 160 establish new requirements and a new process for protecting lien rights. A critical component of this new process is the creation of a centralized, online State Construction Registry (SCR). It also requires that cities/counties submit building permit information into the SCR.
The objective of the State Construction Registry (SCR) is to provide a standardized, statewide, online system for filing notices of commencement, preliminary notices, and notices of completion. It will also serve as a database of all Utah construction projects.
The role of the city/county is critical in this process - the submitted building permit information will now serve as the Notice of Commencement of a construction project. This is a critical legal step for subcontractors and suppliers to protect their lien rights.
During the 2004 State legislative session, House Bill 136, ("Electronic Filing of Preliminary Lien Documents") was passed and put into law. In addition, in the 2005 session, House Bill 105 ("Substitute Construction Filing Amendments") passed with modifications to HB 136. The enrolled bills can be found at: HB 136 HB 105 HB 160
Excerpt from HB 136:
"For a construction project where a building permit is issued, within 15 days after the issuance of the building permit, the local government entity issuing that building permit shall input the data and transmit the building permit information to the database electronically via the Internet or computer modem or by any other means and such information shall form the basis of a notice of commencement."
If you are familiar with the current lien process, these House Bills modify the "Mechanics Lien Statute".