BILL NUMBER: AB 568	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 8, 2002
	AMENDED IN ASSEMBLY  MAY 2, 2001
	AMENDED IN ASSEMBLY  MARCH 27, 2001

INTRODUCED BY   Assembly Member Dutra
    (Principal coauthor:  Assembly Member Vargas) 

                        FEBRUARY 21, 2001

   An act  to add Section 3113 to the Civil Code,  relating
to mechanics' liens.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 568, as amended, Dutra.  Mechanics' liens.
   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 procedures for the enforcement of this
right, 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  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   provide that if a home improvement
contract, as defined, is executed in an amount not exceeding $25,000,
the home owner may set off the amount of good-faith payments to the
original contractor against the aggregate amount of enforceable
mechanic's liens and stop notice claims, in an amount not exceeding
$25,000.
   The bill would also provide that a home owner's receipt of a
preliminary 20-day notice does not affect the good-faith nature of
payment by the owner  .
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  no.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  
  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.  
  SECTION 1.  Section 3113 is added to the Civil Code, to read:
   3113.  (a) Notwithstanding any other provision of this title, if a
home improvement contract is executed in an amount not exceeding
twenty-five thousand dollars ($25,000), the owner may set off the
amount of good-faith payments to the original contractor against the
aggregate amount of enforceable mechanic's liens and stop notice
claims, in an amount not exceeding twenty-five thousand dollars
($25,000).
   (b) An owner's receipt of a preliminary 20-day notice does not
affect the good-faith nature of a payment by the owner.
   (c) As used in this section, "home improvement contract" has the
meaning provided by Section 7151.2 of the Business and Professions
Code.