BILL NUMBER: AB 662 CHAPTERED 07/11/05 CHAPTER 40 FILED WITH SECRETARY OF STATE JULY 11, 2005 APPROVED BY GOVERNOR JULY 11, 2005 PASSED THE ASSEMBLY JUNE 27, 2005 PASSED THE SENATE JUNE 23, 2005 AMENDED IN SENATE JUNE 14, 2005 AMENDED IN ASSEMBLY APRIL 21, 2005 INTRODUCED BY Assembly Member La Suer FEBRUARY 17, 2005 An act to add and repeal Title 8 (commencing with Section 945.6) of Part 2 of Division 2 of the Civil Code, relating to construction defects, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 662, La Suer Construction defects: County of San Diego: fires. (1) Existing law specifies the rights and requirements of a homeowner of a new residential unit to bring an action for construction defects, including applicable standards for home construction, the statute of limitations, the burden of proof, the damages recoverable, a detailed prelitigation procedure, and the obligations of the homeowner. On or before January 1, 2008, this bill would authorize a homeowner and a contractor, as defined, to agree by contract to be governed by the above-described construction defect provisions with regard to the free rebuilding of residential homes destroyed in the Cedar Fire of October 2003, in the County of San Diego, and any construction defects therefor. (2) This bill would declare that it is to take effect immediately as an urgency statute. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) California has a statewide housing crisis. (b) Nationally, nine of the 10 least affordable housing markets are in California. (c) Evidence indicates that there is increasing difficulty to obtain adequate insurance for the construction of single-family homes, as well as for multiple-family housing units. (d) In October of 2003, Southern California experienced the most devastating wild land/urban interface fire disaster in history. (e) According to the California Department of Forestry and Fire Protection, 3,631 homes were destroyed and many of these were situated in the County of San Diego. (f) Many of these property owners who lost residential homes in the County of San Diego do not have, or are otherwise unable to obtain, adequate insurance to rebuild their lost homes. (g) This urgency legislation would provide a reasonable litigation procedure pertaining to construction defect litigation that would encourage insurers and licensed contractors to rebuild homes for the families victimized by the Cedar Fire of October of 2003. SEC. 2. Title 8 (commencing with Section 945.6) is added to Part 2 of Division 2 of the Civil Code, to read: TITLE 8. RECONSTRUCTION OF HOMES LOST IN CEDAR FIRE, OCTOBER 2003 945.6. (a) Nothing in Title 7 (commencing with Section 895) shall be construed to prohibit an individual from voluntarily agreeing with a contractor to incorporate the rights and remedies of Title 7 (commencing with Section 895), or any provision of Title 7 (commencing with Section 895), in a contract for reconstruction of a dwelling unit or common area of a residence lost during the October 2003, Cedar Fire in the County of San Diego. (b) For purposes of this title, "contractor" means any subcontractor, design professional, or general contractor who, after the effective date of this act and on or before January 1, 2008, provides his or her services without compensation. (c) This title shall remain in effect only until January 1, 2008, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2008, deletes or extends that date. SEC. 3. Due to the unique circumstances facing the County of San Diego relating to the destructive Cedar Fire of October 2003, the Legislature hereby finds and declares that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution. Therefore, the special legislation contained within Section 2 of this act is necessarily applicable only to the County of San Diego. SEC. 4. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: This urgency legislation would provide a reasonable litigation procedure pertaining to construction defect litigation that would encourage insurers and licensed contractors to rebuild homes for the families victimized by the Cedar Fire of October of 2003.