BILL ANALYSIS Ó AB 456 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 456 (Wagner) As Amended September 2, 2011 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |69-0 |(April 25, |SENATE: |35-0 |(September 7, | | | |2011) | | |2011) | ----------------------------------------------------------------- ------------------------------------------------------------------------ |COMMITTEE VOTE: |9-0 |(September 9, 2011) |RECOMMENDATION: |Concur | | | | | | | ------------------------------------------------------------------------ Original Committee Reference: JUD. SUMMARY : Clarifies the procedure for mechanics liens claims. Specifically, this bill clarifies that mechanics' lien claimants in construction disputes shall specify in the required affidavit indicating service of the notice of mechanics lien that the notice was served on the owner or reputed owner of the property, consistently with existing obligations regarding service of these claims. The Senate amendments delete the Assembly version of this bill and instead amend the bill to substitute the above provisions. AS PASSED BY THE ASSEMBLY , this bill addressed motions to stay litigation pending arbitration of mechanics lien claims by specifying that a party may seek a stay of litigation pending the outcome of arbitration to which the parties agree, without any necessity to move for an order to compel arbitration, provided that if any party opposes the motion to stay the action on the ground that the party objects to arbitration of the dispute, the court shall determine whether the claim of lien or any relevant issue, question or dispute is subject to arbitration before staying the action. FISCAL EFFECT : None COMMENTS : According to the author, existing law requires that a mechanics lien and the accompanying Proof of Service Affidavit be served on an owner or reputed owner by registered mail, certified AB 456 Page 2 mail, or first-class mail, evidenced by a certificate of mailing, postage prepaid, addressed to the owner or reputed owner at the owner's or reputed owner's residence or place of business address or at the address shown by the building permit on file. The author argues that this bill would provide clarification and consistency to ensure that, if the owner or reputed owner is listed in the Proof of Service Affidavit, there would not be the opportunity to invalidate the lien based on a minor error in the name, part of the name or title. Supporters argue that this bill makes an important clarifying change to existing law that, if left unchanged, could result in mechanics liens being invalidated due to very minor errors. Analysis Prepared by : Kevin G. Baker / JUD. / (916) 319-2334 FN: 0002881