BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                AB 456
                                                                Page  1

        CONCURRENCE IN SENATE AMENDMENTS
        AB 456 (Wagner)
        As Amended September 2, 2011
        Majority vote 
         
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        |ASSEMBLY:  |69-0 |(April 25,      |SENATE: |35-0 |(September 7,  |
        |           |     |2011)           |        |     |2011)          |
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        |COMMITTEE VOTE:  |9-0  |(September 9, 2011) |RECOMMENDATION: |Concur    |
        |                 |     |                    |                |          |
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        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
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        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 


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