BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 190|
|Office of Senate Floor Analyses | |
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CONSENT
Bill No: SB 190
Author: Lowenthal (D)
Amended: 3/16/11
Vote: 21
SENATE JUDICIARY COMMITTEE : 4-0, 3/29/11
AYES: Evans, Harman, Blakeslee, Leno
NO VOTE RECORDED: Corbett
SUBJECT : Mechanics liens
SOURCE : California Law Revision Commission
DIGEST : This bill updates several cross-references and
makes technical corrections to various new mechanics liens
provisions enacted in last year's SB 189 (Lowenthal),
Chapter 697, Statutes of 2010, which overhauled the
mechanics lien law. This bill clarifies circumstances
under which a mechanic's lien could be invalidated, and
contains a delayed operative date of July 1, 2012,
consistent with the provisions of SB 189.
ANALYSIS : Existing law regulates home improvement
project contracts. (Business and Professions Code ÝBPC]
Section 7150 et seq.)
Existing law identifies projects for which a home
improvement contract is required, outlines the contract
requirements, and lists the items that shall be included in
the contracts. (BPC Section 7159)
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Existing law provides that home improvement project
contracts, as specified, must include a statement whereby
the home improvement contractor will provide to the person
contracting for home improvement after payment a full and
unconditional release from any potential mechanics liens
made pursuant to Civil Code Section 3110. (BPC Section
7159(c)(4))
Existing law provides regulations regarding home
improvement projects between an owner or tenant and a
contractor who is licensed or subject to licensing. (BPC
Section 7159.5)
Existing law provides that a contractor who is licensed or
subject to licensing and involved with a home improvement
project is subject to discipline if the contractor fails
upon request to furnish the paying party with a full and
unconditional release from any potential mechanics lien
pursuant to Civil Code Section 8410. (BPC Section
7159.5(a)(6))
Existing law regulates service and repair contracts between
a homeowner or tenant and a contractor who is licensed or
subject to licensing. (BPC Section 7159.14) Existing law
provides that a service or repair contractor that is
licensed or subject to licensing who fails, upon request
and payment by the buyer, to provide to the buyer a full
and unconditional release from any potential mechanics lien
authorized pursuant to Section 8410 is subject to
disciplinary action. (BPC Section 7159.14(11))
Existing law regulates structural pest control operators.
(BPC Section 8500 et seq.) Existing law provides that a
company performing structural pest control services for
which company registration is required must provide the
owner of the premises for which services are being rendered
with a full and unconditional release from any mechanics
liens prior to payment by the owner. (BPC Section 8513(d))
Existing law regulates bond securities provided in
connection with subdivision improvements. (Government
Code ÝGOV] Section 66499 et seq.) Existing law provides
that the security provided by a subdivider to secure
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payments to contractors, subcontractors, laborers, and
materials or equipment suppliers, after the expiration of
lien recordation and acceptance of the work, be reduced to
an amount equal to the total claimed by all recorded and
noticed lien claimants, and if no claims have been
recorded, the security shall be released in full. (GOV
Section 66499.7)
This bill corrects the cross-references to the Civil Code
to conform to the new mechanics lien provisions enacted
under SB 189 and corrects various technical errors.
Existing law regulates the conditions under which a
mechanics lien may be enforced. (Civil Code Section 8410
et seq.)
Existing law provides that erroneous information include in
a lien claim relating to the claimant's demand, credits and
offsets deducted, work provided, or description of the site
does not invalidate a claim of lien unless (1) the claim
of lien was made with the intent to slander title or
defraud; or (2) a bona fide owner came into possession of
the property after recordation of the lien claim and the
lien claim was so deficient that it failed to put the bona
fide owner on notice of the lien claim. (Civil Code
Section 8422)
This bill clarifies that slander of title is not a
circumstance under which a lien claim can be invalidated,
but any person who willfully includes in a lien claim
labor, services, equipment, or materials not furnished for
the property described in the claim will forfeit the lien.
Existing law, as enacted by SB 189, becomes operative on
July 1, 2012. (Civil Code Section 8000 et seq.)
This bill also becomes operative on July 1, 2012.
Prior Legislation . SB 189 (Lowenthal), Chapter 697,
Statutes of 2010, passed the Senate Floor (35-0) on August
25, 2010.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
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SUPPORT : (Verified 3/30/11)
California Law Revision Commission (source)
American Society of Landscape Architects
Building Industry Credit Association
ARGUMENTS IN SUPPORT : According to the author's office,
this bill makes conforming revisions to two code sections
to update cross-references to sections that were repealed
by last year's enactment of SB 189, and makes similar
non-substantive revisions to cross-references in three
other code sections necessitated by the enactment of SB
189. This bill also makes a minor revision to a recodified
section of the mechanics lien statute enacted by SB 189, to
make its intended meaning clearer.
RJG:mw 3/31/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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