BILL NUMBER: AB 568 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 27, 2001
INTRODUCED BY Assembly Member Dutra
FEBRUARY 21, 2001
An act to add Article 8 (commencing with Section 3155) to
Chapter 2 of Title 15 of Part 4 of Division 3 of the Civil Code,
relating to mechanics' liens, and making an appropriation therefor.
An act to add Article 10.5 (commencing with Section
7170) to Chapter 9 of Division 3 of the Business and Professions
Code, and to add Chapter 1.5 (commencing with Section 3107) to Title
15 of Part 4 of Division 3 of the Civil Code, relating to home
improvement contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 568, as amended, Dutra. Mechanics' liens: homeowners'
relief recovery home improvement contracts .
The California Constitution gives workmen the right to a mechanics'
lien for the value of labor and materials provided for the
improvement of real property.
Existing law sets forth the procedure for the enforcement of this
right, as specified. Existing law also establishes the Contractors'
State Licensing Board providing for the regulation of those who
contract for the improvement of real property, as specified.
This bill would establish the Homeowners' Protection Act of 2001,
which would prohibit a mechanics' lienholder, if a specified claim is
filed by the property owner, from maintaining an action to foreclose
a recorded lien against a single-family dwelling that is the
property owner's primary residence pursuant to any other provision of
law unless a hearing officer, in a specified hearing, determines
that the property owner has not paid the original contractor in full,
or the property owner has failed to hire only licensed contractors
pursuant to a written contract.
The bill would establish the Homeowners' Relief Recovery Fund in
the State Treasury, to be continuously appropriated for the purposes
of the act, and to be administered by the Contractors' State License
Board. The bill would establish the procedure for a lienholder to
file a claim against the fund, to be decided by a hearing officer, as
specified, and would require the board to adopt certain regulations.
The bill would provide that a finding by a hearing officer that
the original contractor was paid in full by the property owner and
failed to make timely payments to the mechanics' lienholders would
constitute grounds for immediate suspension of the original
contractor's license, except as specified.
The bill would make the presentation of false or fraudulent claims
for the payment of a loss from the fund a felony, punishable as
specified, and would thereby impose a state-mandated local program by
creating a new crime.
This bill would limit the right of subcontractors to enforce a
mechanics' lien for certain works of improvement on a single-family,
owner-occupied dwelling to those subcontractors who give the
homeowner a joint check notice, in a form specified by the
Contractors' State Licensing Board, as specified. The bill would
entitle the homeowner to require payments for home improvements to be
made by means of a joint check to be endorsed by both the prime
contractor and subcontractor, and would make related changes. These
provisions would apply only to works of improvement under contracts
executed on or after January 1, 2002.
Existing law requires specified attachments to accompany a home
improvement contract or an estimate for home improvement work.
The bill would set forth detailed requirements for the content of
home improvement contracts totaling more than $500, as specified,
including the attachments required under existing law, and would make
violations of these requirements a misdemeanor punishable by a fine
of not less than $100 nor more than $5,000, or imprisonment in a
county jail not exceeding one year, or both that fine and
imprisonment. In certain circumstances, the fine would not be less
than $500 nor more than $25,000, and would be required to be in
addition to full restitution. The bill would impose a state-mandated
local program by creating a new crime.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: 2/3 majority .
Appropriation: yes no . Fiscal
committee: yes. State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 8 (commencing with Section 3155) is
SECTION 1. Article 10.5 (commencing with Section 7170) is added to
Chapter 9 of Division 3 of the Business and Professions Code, to
read:
Article 10.5. Home Improvement Contracts
7170. (a) This article applies only to home improvement
contracts, as defined in Section 7151.2, between a contractor,
whether a general building contractor or a specialty contractor, who
is licensed or required to be licensed pursuant to this chapter with
regard to the transaction, and who contracts with an owner or tenant
for work upon a residential building or structure, or upon land
adjacent thereto, for proposed repairing, remodeling, altering,
converting, modernizing, or adding to, the residential building or
structure or land adjacent thereto, if the aggregate contract price
specified in one or more improvement contracts, including all labor,
services, and materials to be furnished by the contractor, exceeds
five hundred dollars ($500).
(b) Every home improvement contract, including every contract that
meets the requirements of subdivision (a) the primary purpose of
which is the construction of a swimming pool, is subject to this
section. Every home improvement contract, and any changes in the
contract subject to this section, shall be evidenced by a writing and
shall be signed by all the parties to the contract. The writing
shall contain all of the items specified in the following sections.
7170.01. The contract shall include the name, address, and
license number of the contractor, and the name and registration
number of any salesperson who solicited or negotiated the contract.
7170.02. The contract shall include the approximate date when the
work will begin and the date on which all construction is to be
completed.
7170.03. The contract shall include a plan and scale drawing
showing the shape, size, dimensions, and construction and equipment
specifications for a swimming pool and for other home improvements, a
description of the work to be done, a description of the materials
to be used and the equipment to be used or installed, and the agreed
upon consideration for the work.
7170.04. If the payment schedule contained in the contract
provides for a downpayment to be paid to the contractor by the owner
or the tenant before the commencement of work, the downpayment may
not exceed two hundred dollars ($200) or 2 percent of the contract
price for swimming pools, or one thousand dollars ($1,000) or 10
percent of the contract price for other home improvements, excluding
finance charges, whichever is less.
7170.05. The contract shall include a schedule of payments
showing the amount of each payment as a sum in dollars and cents. In
no event may the payment schedule provide for the contractor to
receive, nor may the contractor actually receive, payments in excess
of 100 percent of the value of the work performed on the project at
any time, excluding finance charges, except that the contractor may
receive an initial downpayment authorized by Section 7170.04. With
respect to a swimming pool contract, the final payment may be made at
the completion of the final plastering phase of construction,
provided that any installation or construction of equipment, decking,
or fencing required by the contract is also completed. A failure by
the contractor without lawful excuse to substantially commence work
within 20 days of the approximate date specified in the contract when
work will begin shall postpone the next succeeding payment to the
contractor for that period of time equivalent to the time between
when substantial commencement was to have occurred and when it did
occur. The schedule of payments shall be stated in dollars and
cents, and shall be specifically referenced to the amount of work or
services to be performed and to any materials and equipment to be
supplied. With respect to a contract that provides for a schedule of
monthly payments to be made by the owner or tenant and for a schedule
of payments to be disbursed to the contractor by a person or entity
to whom the contractor intends to assign the right to receive the
owner's or tenant's monthly payments, the payments referred to in
this section mean the payments to be disbursed by the assignee and
not those payments to be made by the owner or tenant.
7170.06. The contract shall include a statement that, upon
satisfactory payment being made for any portion of the work
performed, the contractor shall, prior to any further payment being
made, furnish to the person contracting for the home improvement or
swimming pool a full and unconditional release from any claim or
mechanic's lien pursuant to Section 3114 of the Civil Code for that
portion of the work for which payment has been made.
7170.07. The requirements set forth in Sections 7170.04, 7170.05,
and 7170.06 shall not apply when the contract provides for the
contractor to furnish a performance and payment bond, lien and
completion bond, bond equivalent, or joint control approved by the
registrar covering full performance and completion of the contract
and the bonds or joint control are furnished by the contractor, or
when the parties agree for full payment to be made upon, or for a
schedule of payments to commence after, satisfactory completion of
the project. The contract shall contain, in close proximity to the
signatures of the owner or tenant and the contractor, a notice in at
least 10-point type stating that the owner or tenant has the right to
require the contractor to have a performance and payment bond.
7170.08. No extra or change-order work may be required to be
performed without prior written authorization of the person
contracting for the construction of the home improvement or swimming
pool. No change-order is enforceable against the person contracting
for home improvement work or swimming pool construction unless it
clearly sets forth the scope of work encompassed by the change-order
and the price to be charged for the changes. Any change-order forms
for changes or extra work shall be incorporated in, and become a part
of, the contract. Failure to comply with the requirements of this
section does not preclude the recovery of compensation for work
performed based upon quasi-contract, quantum meruit, restitution, or
other similar legal or equitable remedies designed to prevent unjust
enrichment.
7170.09. If the contract provides for a payment of a salesperson'
s commission out of the contract price, that payment shall be made on
a pro rata basis in proportion to the schedule of payments made to
the contractor by the disbursing party in accordance with Section
7170.05.
7170.10. The contract shall include, for owner-occupied,
single-family residences, the language of the notice required
pursuant to Section 3107.10 of the Civil Code, and for all other
property, the language required pursuant to Section 7018.5.
7170.11. The contract shall include a description of what
constitutes substantial commencement of work pursuant to the
contract.
7170.12. The contract shall include a notice that failure by the
contractor without lawful excuse to substantially commence work
within 20 days from the approximate date specified in the contract
when work will begin is a violation of the Contractors' State License
Law.
7170.13. If the contract provides for a contractor to furnish
joint control, the contractor shall not have any financial or other
interest in the joint control.
7170.14. A failure by the contractor without lawful excuse to
substantially commence work within 20 days from the approximate date
specified in the contract when work will begin is a violation of this
article. For purposes of this article, the board shall, by
regulation, determine what constitutes "without lawful excuse."
7170.15. This article does not prohibit the parties to a home
improvement contract from agreeing to a contract or account subject
to Chapter 1 (commencing with Section 1801) of Title 2 of Part 4 of
Division 3 of the Civil Code.
7170.16. The contract shall be accompanied by and include all of
the items specified in Section 7159.3.
7170.17. The contract may contain other matters agreed to by the
parties to the contract.
7170.18. The contract shall be legible and shall be in a form
that clearly describes any other document that is to be incorporated
into the contract. Before any work is done, the owner shall be
furnished a copy of the written agreement, signed by the contractor.
7170.19. The provisions of this article are not exclusive and do
not relieve the contractor or any contract subject to it from
compliance with all other applicable provisions of law.
7170.20 A violation of this article by a licensee, or a person
required to be licensed, under this chapter, or by his or her agent
or salesperson, is a misdemeanor punishable by a fine of not less
than one hundred dollars ($100) nor more than five thousand dollars
($5,000), or by imprisonment in a county jail not exceeding one year,
or by both that fine and imprisonment.
7170.21. Any person who violates this article as part of a plan
or scheme to defraud an owner of a residential or nonresidential
structure, including a mobilehome or manufactured home, in connection
with the offer or performance of repairs to the structure for damage
caused by a natural disaster, shall be ordered by the court to make
full restitution to the victim based on the person's ability to pay,
as defined in subdivision (e) of Section 1203.1b of the Penal Code.
In addition to full restitution, and imprisonment authorized by
Section 7170.20, the court may impose a fine of not less than five
hundred dollars ($500) nor more than twenty-five thousand dollars
($25,000), based upon the defendant's ability to pay. This section
applies to natural disasters for which a state of emergency is
proclaimed by the Governor pursuant to Section 8625 of the Government
Code or for which an emergency or major disaster is declared by the
President of the United States.
7170.22. (a) An indictment or information against a person who is
not licensed, but who is required to be licensed under this chapter,
shall be brought, or a criminal complaint filed, for a violation of
this article within four years from the date the buyer signs the
contract.
(b) An indictment or information against a person who is licensed
under this chapter shall be brought, or a criminal complaint filed,
for a violation of this article within one year from the date the
buyer signs the contract.
7170.23. The limitations on actions in this article shall not
apply to any administrative action filed against a licensed
contractor.
SEC. 2. Chapter 1.5 (commencing with Section 3107) is added to
Title 15 of Part 4 of Division 3 of the Civil Code, to read:
CHAPTER 1.5. LIEN RIGHTS IN WORKS OF IMPROVEMENT ON
SINGLE-FAMILY OWNER-OCCUPIED DWELLINGS
3107. This chapter shall be known and may be cited as the "Home
Improvement Lien Rights Act."
3107.1. This chapter applies only to works of improvement on
single-family, owner-occupied dwellings.
3107.2. (a) A person described in Section 3110 who furnishes
labor, services, equipment, or material in a work of improvement of a
single-family, owner-occupied dwelling may elect to use the
procedure under this chapter or may rely on the rights under his or
her contract with other persons. A person under direct contract with
the homeowner, one performing actual labor for wages as described in
subdivision (a) of Section 3089, or a person or entity to whom a
portion of a laborer's compensation is paid as described in
subdivision (b) of Section 3089, is not required to make this
election in order to maintain mechanics' lien rights.
(b) Notwithstanding Sections 3097 and 3114, a person described in
Section 3110, other than the prime contractor and one who is not
exempt under subdivision (a), is entitled to enforce a lien under
this title only if the person gives the homeowner a joint check
notice under this chapter.
(c) The joint check notice may be given by any of the following
methods:
(1) Personal delivery.
(2) Leaving it at the dwelling address or place of business with a
person in charge.
(3) First-class registered or certified mail, postage prepaid,
addressed to the homeowner at his or her residence or place of
business address.
(d) A copy of the joint check notice shall also be given to the
prime contractor.
3107.3. (a) The joint check notice is effective only if the
homeowner receives it before making payment to the prime contractor
under the terms of the contract for the labor, services, equipment,
or material provided.
(b) For purposes of this chapter, "prime contractor" means a
contractor who contracts directly with a homeowner.
3107.4. The form of the joint check notice shall be prepared by
the Contractors' State License Board and shall include the following
information:
(a) The name and address of the person furnishing labor, services,
equipment, or materials, who is requesting a joint check.
(b) The name of the homeowner who contracted with the prime
contractor for the labor, services, equipment, or materials.
(c) The address of the single-family, owner-occupied dwelling.
(d) A brief description of the services or material provided, or
to be provided, and the amount the prime contractor agreed to pay for
these services and materials.
(e) A brief statement of the rights and duties under this chapter
in plain English, including the substance of the following:
"Joint Check Requirement
"Section 3107.3 of the California Civil Code
"To protect yourself from a lien, you must pay your contractor and
me by a check made out to both of us. Write a joint check only after
your contractor provides you with a request for payment that
includes payment for my services or for equipment or material I
supplied.
"If you pay the contractor without using a joint check, and the
contractor does not pay me, I have the right to place a mechanics'
lien on your home and enforce my claim against you.
"I have notified your contractor of this requirement."
3107.5. To enforce a lien under this chapter, the claimant shall
comply with Section 3116.
3107.6. The preliminary notice required by subdivision (h) of
Section 3097 is not required pursuant to this chapter.
3107.7. (a) If, after the person furnishing labor, services,
equipment, or materials provides a joint check notice to the
homeowner, the prime contractor orders extra labor, services,
equipment, or material that would increase the amount that can be
claimed in a lien, the person furnishing these items must notify the
homeowner of the increased amount.
(b) The notice of the increased lien claim amount is effective
only if the homeowner receives it before the homeowner makes payment
to the prime contractor under the terms of the contract for the
labor, services, equipment, or material provided.
3107.8. The form of the increased lien claim notice shall be
prepared by the Contractors' State License Board and shall include
the following information:
(a) The date of the original joint check notice.
(b) The name and address of the person furnishing labor, services,
equipment, or materials, who is requesting a joint check or direct
payment.
(c) The name of the homeowner who contracted for the labor,
services, equipment, or materials.
(d) The address of the single-family, owner-occupied dwelling.
(e) A brief description of the services or material to be
provided, or already provided, and the amount the prime contractor
agreed to pay for these services and materials.
3107.9. The right to elect joint checks under this chapter may
not be waived. A contractual provision or other agreement purporting
to waive the rights under this chapter is void.
3107.10. The Contractors' State License Board shall prepare a
notice entitled "Mechanics' Lien Warning" which includes a brief
description of mechanics' liens, ways to prevent them, the process
described in this chapter, and the rights of persons exempted from
participating in this procedure.
3107.11. This chapter applies only to works of improvement under
contracts executed on or after January 1, 2002.
SEC. 3. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
added to Chapter 2 of Title 15 of Part 4 of Division 3 of
the Civil Code, to read:
Article 8. Homeowners' Protection Act of 2001
3155. This article shall be known and may be cited as the
"Homeowners' Protection Act of 2001."
3155.1. For purposes of this article, the following definitions
shall apply:
(a) "Board" means the Contractors' State License Board.
(b) "Claimant" means an "owner," as defined in subdivision (f),
who has filed a claim with the Homeowners' Relief Recovery Fund
pursuant to this article and who has notice of a lien recorded
against his or her real property for the reasonable value of labor,
services, equipment, or material provided or supplied to the
property.
(c) "Full payment" and "paid in full" means that the person who
provided his or her labor, services, equipment, or material has
received compensation for that labor, service, equipment, or material
in an amount equal to the reasonable value of that labor, service,
equipment, or material. A person shall not be considered to have been
paid in full if 10 percent or more of any retention proceeds have
been withheld.
(d) "Fund" means the Homeowners' Relief Recovery Fund.
(e) "Original contractor" is a person who has a direct contractual
relationship with the owner of an existing single-family,
owner-occupied dwelling to provide labor, services, equipment, or
material toward a work of improvement on that property.
(f) "Owner" is a person who is the record owner of a single-family
dwelling that is his or her primary residence.
(g) "Building" is any structure built for the support, shelter, or
enclosure of persons, animals, chattels, or property of any kind.
3155.2. (a) Within the 90-day period following the recording of
the lien, of if a claimant has filed a claim within that 90-day
period pursuant to Section 3155.9, a lienholder may not maintain an
action to foreclose a recorded mechanics lien against real property
containing a single-family owner-occupied dwelling which is the
primary residence of the owner pursuant to any other provision of law
unless a hearing officer determines that the claimant has not paid
the original contractor in full in a hearing held pursuant Section
3155.12 or that the claimant has not complied with subdivision (b).
(b) In order for a claimant to receive the protection of this
article against foreclosure on a lien, the claimant shall hire only
licensed contractors pursuant to a written contract.
3155.3. (a) There is hereby established within the State Treasury
the Homeowners' Relief Recovery Fund, which is hereby continuously
appropriated for the purpose of administering this article, including
the payment of the compensation of hearing officers appointed
pursuant to Section 3155.12, and the provision of monetary relief to
any lienholder who is not paid in full for labor, services,
equipment, or material.
(b) The state shall not be liable for any claims against the fund
except as provided in this article.
3155.4. In order to establish a claim against the Homeowners'
Relief Recovery Fund a claimant shall provide evidence that a
mechanics' lien has been recorded against their real property
pursuant to this chapter.
3155.5. (a) The Contractors' State License Board shall administer
the Homeowners' Relief Recovery Fund and shall develop rules and
regulations, which shall be as informal as possible to administer the
fund pursuant to this article.
(b) The board may file a civil action against any licensed
original contractor in order to obtain reimbursement to the fund for
any payments made to a lienholder upon a finding by a hearing officer
that the original contractor failed to pay the lienholder in full.
(c) The board shall establish a toll-free telephone number to
provide information to all parties involved concerning the Homeowners'
Relief Recovery Fund, the hearing process, and requirements under
this article.
3155.6. (a) Funding shall be in an amount determined by the
Contractors' State License Board to be sufficient to meet the
projected claims over the next year.
(b) The board shall annually determine whether the funding is
sufficient to meet the projected claims over the next year and
annually report to the Legislature on the need to increase or
decrease the funding accordingly. In making this determination, the
board shall not include in any fund balance moneys in the fund that
are encumbered by claims approved pursuant to this article.
(c) The board shall be responsible for an annual review or audit
of the fund.
3155.7. All funding provided pursuant to Section 3155.6 shall be
deposited in the State Treasury to the credit of the Homeowners'
Relief Recovery Fund, which is to be used exclusively for the
purposes of this article.
3155.8. Notwithstanding any other provision of law, the time for
a lienholder to bring an action to foreclose a lien on a
single-family, owner-occupied dwelling which is the primary residence
of the owner shall be extended by 90 days to provide for the claim
period under Section 3155.9, and shall be extended to, and include,
60 days following service of the decision by a hearing officer
regarding the claimant's claim against the Homeowners' Relief
Recovery Fund.
3155.9. Within 90 days after the lienholder has recorded a lien
on a single-family, owner-occupied dwelling which is the primary
residence of the owner, the owner may file a statement of claim with
the Contractors' State License Board. The statement of claim shall
include, but may not be limited to, the following:
(a) A copy of any preliminary notice given by the lienholder,
together with the proof of service accompanied thereby, if a
lienholder is otherwise required to serve a preliminary notice.
(b) A copy of the mechanics' lien recorded in the office of the
county recorder.
(c) A statement of account showing all charges, credits, and
balance due.
(d) Proof of payment, including, but not limited to, a receipt of
payment, credit card receipt, or statement or canceled check.
3155.10. Once the statement of claim described in Section 3155.9
has been filed with the Contractors' State License Board, the board
shall notify the original
contractor and the lienholder of the filing of the claim. The
original contractor and the lienholder shall file a response within
15 days after receipt of the notice. This response shall state in
detail the defense against the claim and include all documents which
the respondent claims support this defense. If the original
contractor contends that it has not been paid in full, the original
contractor shall provide a copy of all documents in support of this
contention. The lienholder, original contractor, and claimant may
submit any other information to assist the hearing officer to make
the determination required by this article.
3155.11. If the original contractor fails to respond to the claim
filed by the claimant, it shall be presumed that the claimant paid
the contractor in full and the hearing officer shall then determine
the value of the claim based upon the documentation provided.
3155.12. The board shall set a hearing date within 60 days of
receipt of the statement of claim at the office of the Contractors'
State License Board nearest to the site of the work of improvement,
before a hearing officer appointed by the board to hear the
presentation of the lienholder, the original contractor, and the
claimant. To the extent possible, all claims submitted on the same
project shall be consolidated and heard in the same hearing. The
Contractors' State License Board shall provide notice to the original
contractor, the claimant, and the lienholder of the date, time, and
location of this hearing.
3155.13. At the hearing, the hearing officer shall first
determine whether the claimant has made a full payment to the
original contractor. If the hearing officer determines that the
claimant has not paid the contractor in full, the hearing officer
shall dismiss the claim and issue a finding that the lienholder may
pursue foreclosure of its mechanics' lien in the appropriate court.
If the hearing officer determines that the claimant has paid the
original contractor in full, the hearing officer shall determine the
validity and reasonable value of the claim and, if determined to be
valid, enter an order addressed to the Contractors' State License
Board directing it to pay the lienholder the reasonable amount of the
claim, subject to subdivision (a) of Section 3155.3.
3155.14. (a) The hearing shall be conducted in accordance with
Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of
Title 2 of the Government Code.
(b) The hearing officers appointed by the Contractors' State
License Board shall be attorneys licensed to practice in this state
with at least five years of experience in mechanics' lien law.
3155.15. (a) The findings of the hearing officer shall be final,
but shall impose obligations upon the claimant, original contractor,
and lienholder only to the extent that the claimant, original
contractor, or lienholder agree to be bound by those obligations.
However, the remedies available to a party pursuant to this article,
including the right to receive payment from the fund, shall not be
available to a party that does not agree to the obligations. A
lienholder shall be deemed to agree to the obligations only by
recording a release of the lien in the county recorder's office where
the real property is located. The findings of the hearing officer
may be entered into evidence in any subsequent civil action or
proceedings. The findings of the hearing officer shall be served on
the lienholder, original contractor, the claimant, and the board no
more than 10 days after the hearing.
(b) The Contractors' State License Board shall pay to the
lienholder, upon receipt of an order pursuant to Section 3155.13 the
amount of the claim, subject to subdivision (a) of Section 3155.3
within 10 days of receiving evidence that the lienholder has recorded
a release of its lien in the county recorder's office where the real
property is located. The evidence shall be submitted within 15 days
after the findings of the hearing officer are served.
3155.16. A finding by the hearing officer that the original
contractor was paid in full by the claimant and failed to make timely
payments to any lienholder on the work of improvement, except a
finding made pursuant to Section 3155.11, shall be grounds for
immediate suspension of the original contractor's license. The
original contractor shall be given notice of a hearing to challenge
the findings, which shall be conducted within 60 days of the date of
the suspension pursuant to the procedures of the Contractors' State
License Board. If the finding is sustained, the contractor's license
shall be immediately revoked and shall not be reinstated until the
original contractor provides to the Contractors' State License Board
a contractor's license bond as provided in Section 7071.8 of the
Business and Professions Code in the sum of fifty thousand dollars
($50,000).
3155.17. (a) The Contractors' State License Board shall adopt and
make available forms for the notice regarding the claimant's rights
under this article.
(b) The county recorder's office shall provide information
pursuant to subdivision (c) of Section 3155.5 at the same time that
notice is sent to an owner of property upon which a lien is recorded.
3155.18. Any firm, corporation, partnership, or association, or
any person acting in his or her individual capacity, who aids, abets,
solicits, or conspires with any person to knowingly present or cause
to be presented any false or fraudulent claim for the payment of a
loss from the fund under this article is guilty of a felony
punishable by imprisonment in the state prison for two, three, or
five years, and by a fine not exceeding fifty thousand dollars
($50,000), unless the amount of the false or fraudulent claim exceeds
fifty thousand dollars ($50,000), in which event the fine may not
exceed double the amount of the false or fraudulent claim.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.