BILL NUMBER: AB 568 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 2, 2001
AMENDED IN ASSEMBLY MARCH 27, 2001
INTRODUCED BY Assembly Member Dutra
FEBRUARY 21, 2001
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. An act relating to mechanics' liens.
LEGISLATIVE COUNSEL'S DIGEST
AB 568, as amended, Dutra. Mechanics' liens : 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
procedures 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
Under these procedures, existing law requires that a person record a
preliminary 20-day notice, as specified, prior to the recording of a
mechanics' lien, prior to filing a stop notice, and prior to
asserting a claim against a payment bond, as specified .
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.
This bill would declare the intention of the Legislature to revise
and reorganize the laws relating to mechanics' liens and stop
notices for the purpose of modernization and simplification and
addressing problems, such as the potential for double payment by
homeowners.
Vote: majority. Appropriation: no. Fiscal committee:
yes no . State-mandated local program:
yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 10.5 (commencing with Section 7170) is
SECTION 1. It is the intent of the Legislature to revise and
reorganize the mechanics' lien and stop notice provisions in Title 15
(commencing with Section 3082) of Part 4 of Division 3 of the Civil
Code, and related provisions, with the purpose of modernizing and
simplifying the statutes and addressing problems, such as the
potential for double payment by homeowners.
_____________________________________ All matter omitted in this
version of the bill appears in the bill as amended in the
Assembly, March 27, 2001 (JR 11)
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