BILL ANALYSIS
AB 568
Page 1
ASSEMBLY THIRD READING
AB 568 (Dutra)
As Amended May 2, 2001
Majority vote
JUDICIARY 9-0
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|Ayes:|Steinberg, Robert | | |
| |Pacheco, Bates, Corbett, | | |
| |Harman, Jackson, | | |
| |Longville, Shelley, Wayne | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Sets forth legislative intent pertaining to the need
for revisions of the law governing mechanic's liens and related
provisions. Specifically, this bill states that "[i]t is the
intent of the Legislature to revise and reorganize the
mechanic's 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."
EXISTING LAW :
1)Provides that certain persons have a mechanic's lien upon
property upon which they have bestowed labor or furnished
materials in the amount of the value of labor done and
materials furnished. It also provides for the creation and
enforcement of mechanic's liens and generally governs payment
provisions contained in contracts for works of improvement.
2)Establishes the Contractors' State Licensing Board providing
for the regulation of those who contract for the improvement
of real property.
FISCAL EFFECT : None
COMMENTS : This bill sets forth a statement of legislative
intent regarding the need for revisions of the law governing
mechanic's liens and related provisions. As discussed below,
the author agreed to amend this bill into legislative intent
AB 568
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language in order to create a potential vehicle for related
recommendations that are expected to come later this session
from the California Law Revision Commission (CLRC).
The introduced version of this bill contained various provisions
designed to address problems with mechanic's liens in the home
improvement area, and included a homeowner's relief recovery
fund. On March 27, 2001, this bill was amended to delete those
provisions and replace them with a joint check approach to the
problem.
At the request of the Chair, the author agreed to delete the
current contents of this bill and replace them with the
legislative intent language set out above, in order to serve as
a vehicle for recommendations on the subject that are expected
to be issued later this year by CLRC. The author also agreed to
bring this bill back to the Judiciary Committee for further
hearing at such time that substantive provisions are added to
the measure.
On June 28, 1999, the then chair and vice-chair of the Judiciary
Committee sent a letter to CLRC requesting CLRC to undertake a
"comprehensive review of [the law in the area of mechanic's
liens and related provisions], including making suggestions for
possible areas of reform and aiding the review of such proposals
in future legislative sessions." CLRC is currently conducting
this study. While its initial focus has been mechanic's liens
in the home improvement area, given the particular interest in
this subject during the last legislative session, the study is
not limited to home improvement contracts. As CLRC has
indicated, the entire mechanic's lien statute is ripe for
revision and reorganization.
Analysis Prepared by : Drew Liebert / JUD. / (916) 319-2334
FN: 0000859