Utah 2025 Regular Session

Utah House Bill HB0154 Compare Versions

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1-Enrolled Copy H.B. 154
1+02-27 17:06 1st Sub. (Buff) H.B. 154
2+Brady Brammer proposes the following substitute bill:
23 1
34 Punitive Damages Amendments
45 2025 GENERAL SESSION
56 STATE OF UTAH
67 Chief Sponsor: Andrew Stoddard
78 Senate Sponsor: Stephanie Pitcher
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910
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1112 LONG TITLE
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1314 General Description:
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1516 This bill modifies provisions related to punitive damages.
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1718 Highlighted Provisions:
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1920 This bill:
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2122 ▸ modifies provisions of the Victim Services Restricted Account; and
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23-▸ requires, after a set date, that the state's portion of punitive damage payments that is
24+▸ requires, after a set date, that the state's portion of punitive damage payments that are
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2526 received in certain driving under the influence cases are deposited into the Victims
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2728 Services Restricted Account.
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2930 Money Appropriated in this Bill:
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3132 None
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3334 Other Special Clauses:
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3536 None
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3738 Utah Code Sections Affected:
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3940 AMENDS:
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4142 63M-7-219, as enacted by Laws of Utah 2023, Chapter 150
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4344 78B-8-201, as last amended by Laws of Utah 2011, Chapter 79
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4546
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4748 Be it enacted by the Legislature of the state of Utah:
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4950 Section 1. Section 63M-7-219 is amended to read:
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5152 63M-7-219 . Victim Services Restricted Account -- Funding -- Uses.
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5354 (1) There is created in the General Fund a restricted account known as the "Victim Services
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5556 Restricted Account."
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5758 (2) The Victim Services Restricted Account is funded by:
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5960 (a) money appropriated to the account by the Legislature;
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61-(b) money deposited from a judgment in favor of the state pursuant to the requirements H.B. 154 Enrolled Copy
62+(b) money deposited from a judgment in favor of the state pursuant to the requirements
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6364 of Section 78B-8-201;
65+1st Sub. H.B. 154 1st Sub. (Buff) H.B. 154 02-27 17:06
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6567 [(b)] (c) gifts, donations, or grants from private entities or individuals; and
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6769 [(c)] (d) interest earned on money in the account.
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6971 (3) Subject to appropriation, the Legislature shall use the funds in the Victim Services
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7173 Restricted Account to fund services for victims, including using funds for:
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7375 (a) services provided by Children's Justice Centers;
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7577 (b) services for sexual assault and domestic violence victims;
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7779 (c) services recommended by the Utah Victim Services Commission under Section
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7981 63M-7-804; or
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8183 (d) any administrative costs associated with implementing victim services.
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8385 Section 2. Section 78B-8-201 is amended to read:
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8587 78B-8-201 . Basis for punitive damages awards -- Section inapplicable to DUI
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8789 cases or providing illegal controlled substances -- Division of award with state -- Deposit
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8991 of state judgment payments.
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9193 (1)(a) Except as otherwise provided by statute, punitive damages may be awarded only
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9395 if compensatory or general damages are awarded and it is established by clear and
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9597 convincing evidence that the acts or omissions of the tortfeasor are the result of
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9799 willful and malicious or intentionally fraudulent conduct, or conduct that manifests a
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99101 knowing and reckless indifference toward, and a disregard of, the rights of others.
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101103 (b) The limitations, standards of evidence, and standards of conduct of Subsection (1)(a)
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103105 do not apply to any claim for punitive damages arising out of the tortfeasor's:
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105107 (i) operation of a motor vehicle or motorboat while voluntarily intoxicated or under
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107109 the influence of any drug or combination of alcohol and drugs as prohibited by
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109111 Section 41-6a-502;
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111113 (ii) causing death of another person by providing or administering an illegal
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113115 controlled substance to the person under Section 78B-3-801; or
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115117 (iii) providing an illegal controlled substance to any person in the chain of transfer
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117119 that connects directly to a person who subsequently provided or administered the
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119121 substance to a person whose death was caused in whole or in part by the substance.
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121123 (c) The award of a penalty under Section 78B-3-108 regarding shoplifting is not subject
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123125 to the prior award of compensatory or general damages under Subsection (1)(a)
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125127 whether or not restitution has been paid to the merchant prior to or as a part of a civil
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127129 action under Section 78B-3-108.
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129131 (2) Evidence of a party's wealth or financial condition shall be admissible only after a
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132133 finding of liability for punitive damages has been made.
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134136 (a) Discovery concerning a party's wealth or financial condition may only be allowed
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136138 after the party seeking punitive damages has established a prima facie case on the
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138140 record that an award of punitive damages is reasonably likely against the party about
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140142 whom discovery is sought and, if disputed, the court is satisfied that the discovery is
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142144 not sought for the purpose of harassment.
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144146 (b) Subsection (2)(a) does not apply to any claim for punitive damages arising out of the
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146148 tortfeasor's:
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148150 (i) operation of a motor vehicle or motorboat while voluntarily intoxicated or under
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150152 the influence of any drug or combination of alcohol and drugs as prohibited by
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152154 Section 41-6a-502;
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154156 (ii) causing death of another person or causing a person to be addicted by providing
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156158 or administering an illegal controlled substance to the person under Section
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158160 78B-3-801; or
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160162 (iii) providing an illegal controlled substance to any person in the chain of transfer
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162164 that connects directly to a person who subsequently provided or administered the
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164166 substance to a person whose death was caused in whole or in part by the substance.
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166168 (3)(a) In any case where punitive damages are awarded, the court shall enter judgment as
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168170 follows:
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170172 (i) for the first $50,000, judgment shall be in favor of the injured party; and
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172174 (ii) any amount in excess of $50,000 shall be divided equally between the state and
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174176 the injured party, and judgment to each entered accordingly.
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176178 (b)(i) The actual and bona fide attorney fees and costs incurred in obtaining and
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178180 collecting the judgment for punitive damages shall be considered to have been
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180182 incurred by the state and the injured party in proportion to the judgment entered in
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182184 each party's behalf.
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184186 (A) The state and injured party shall be responsible for each one's proportionate
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186188 share only.
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188190 (B) The state is liable to pay its proportionate share only to the extent it receives
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190192 payment toward its judgment.
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192194 (ii) If the court awards attorney fees and costs to the injured party as a direct result of
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194196 the punitive damage award, the state shall have a corresponding credit in a
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196198 proportionate amount based on the amounts of the party's respective punitive
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198200 damage judgments. This credit may be applied as an offset against the amount of
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201202 attorney fees and costs charged to the state for obtaining the punitive damage
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203205 judgment.
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205207 (c) The state shall have all rights due a judgment creditor to collect the full amounts of
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207209 both punitive damage judgments until the judgments are fully satisfied.
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209211 (i) Neither party is required to pursue collection.
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211213 (ii) In pursuing collection, the state may exercise any of its collection rights under
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213215 Section 63A-3-301 et seq., Section 63A-3-502 et seq., and any other statutory
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215217 provisions. Any amounts collected on these judgments by either party shall be
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217219 held in trust and distributed as set forth in Subsection (3)(e).
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219221 (d) Unless all affected parties, including the state, expressly agree otherwise, collection
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221223 on the punitive damages judgment shall be deferred until all other judgments have
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223225 been fully paid. Any payment by or on behalf of any judgment debtor, whether
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225227 voluntary, by execution, or otherwise, shall be distributed and applied in the
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227229 following order:
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229231 (i) to the judgment for compensatory damage and any applicable judgment for
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231233 attorney fees and costs;
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233235 (ii) to the initial $50,000 of the punitive damage judgment;
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235237 (iii) to any judgment for attorney fees and costs awarded as a direct result of the
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237239 punitive damages; and
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239241 (iv) to the remaining judgments for punitive damages.
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241243 (e) Any partial payments shall be distributed equally between the state and injured party.
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243245 (f) After the payment of attorney fees and costs, all amounts paid on the state's judgment
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245247 shall be remitted:
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247249 (i) for an amount received on or before May 11, 2025, to the state treasurer to be
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249251 deposited into the General Fund[.] ; and
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251253 (ii) for an amount received after May 11, 2025, to the state treasurer to be deposited
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253255 into the Victims Services Restricted Fund established in Section 63M-7-219.
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255257 Section 3. Effective Date.
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257259 This bill takes effect on May 7, 2025.
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