BILL NUMBER: AB 1287	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Evans

                        FEBRUARY 22, 2005

   An act to amend Sections 3098.5 and 3252 of, and to add Section
3098.1 to, the Civil Code, relating to payment bonds.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1287, as introduced, Evans.   Payment bonds.
   Existing law defines a preliminary 20-day notice (public works) as
a written notice from a claimant that was given prior to the
assertion of a claim against a payment bond or the filing of a stop
work notice on public work, and is required to be given under
specified circumstances.
   This bill would revise the definition of a preliminary 20-day
notice (public work) to delete the requirement that the written
notice from a claimant be given prior to the assertion of a claim
against a payment bond, and would establish a separate provision
governing a preliminary 20-day bond notice, as specified.
   Existing law requires with regard to a contract entered into on or
after January 1, 1995, in order to enforce a claim upon any payment
bond given in connection with a public work, a claimant shall give
the 20-day public works preliminary bond notice as provided in the
definition of a preliminary 20-day notice public work. Existing law
also provides that if the 20-day public work preliminary bond notice
was not given pursuant to the conditions set forth under that
definition, a claimant may enforce a claim by giving written notice
to the surety and the bond principal, as specified, within 15 days
after recordation of a notice of completion. However, if no notice of
completion has been recorded, the time for giving written notice to
the surety and the bond principal is extended to 75 days after
completion of the work of improvement.
   This bill would delete the latter requirements with regard to a
failure to meet the conditions set forth under the definition of a
preliminary 20-day notice public work, and instead require a claimant
to give 20-day notice under the new definition of a preliminary
20-day bond notice (public work) in order to enforce a claim upon a
payment bond given in connection with a public work pursuant to a
contract entered into on or after January 1, 1995.
   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.  Section 3098 of the  Civil Code  is amended to read:
   3098.  "Preliminary 20-day notice (public work)" means a written
notice from a claimant that was given prior to the  assertion
of a claim against a payment bond, or the  filing of a stop
notice on public work, and is required to be given under the
following circumstances:(a) In any case in which the law of this
state affords a right to a person furnishing labor or materials for a
public work who has not been paid therefor to  assert a
claim against a payment bond, or to  file a stop notice with
the public agency concerned, and thereby cause the withholding of
payment from the contractor for the public work, any person that has
no direct contractual relationship with the contractor, other than a
person who performed actual labor for wages or an express trust fund
described in Section 3111, may file the preliminary notice, but no
payment shall be withheld from the contractor pursuant to that notice
unless the person has caused written notice to be given to the
contractor, and the public agency concerned, not later than 20 days
after the claimant has first furnished labor, services, equipment, or
materials to the jobsite, stating with substantial accuracy a
general description of labor, service, equipment, or materials
furnished or to be furnished, and the name of the party to whom the
same was furnished. This notice shall be served by mailing the same
by first-class mail, registered mail, or certified mail, postage
prepaid, in an envelope addressed to the contractor at any place the
contractor maintains an office or conducts business, or his or her
residence, or by personal service. In case of any public works
constructed by the Department of Public Works or the Department of
General Services of the state, such notice shall be served by mailing
in the same manner as above, addressed to the office of the
disbursing officer of the department constructing the work, or by
personal service upon the officer. When service is by registered or
certified mail, service is complete at the time of the deposit of the
registered or certified mail.
   (b) Where the contract price to be paid to any subcontractor on a
particular work of improvement exceeds four hundred dollars ($400),
the failure of that contractor, licensed under Chapter 9, (commencing
with Section 7000) of Division 3 of the Business and Professions
Code, to give the notice provided for in this section, constitutes
grounds for disciplinary action by the Registrar of Contractors.
   (c) The notice requirements of this section shall not apply to a
laborer described in Section 3089 or to an express trust fund
described in Section 3111.
   (d) If labor, service, equipment, or materials have been furnished
to a jobsite by a claimant who did not give a preliminary notice
pursuant to subdivision (a), that claimant shall not be precluded
from giving a preliminary notice at any time thereafter. The claimant
shall, however, be entitled to  assert a claim against a
payment bond and  file a stop notice only for labor,
service, equipment, or material furnished within 20 days prior to the
service of the preliminary notice, and at any time thereafter.
   (e) The failure to provide, pursuant to Chapter 974 of the
Statutes of 1994, a written preliminary notice to a subcontractor
with whom the claimant has contracted shall not affect the validity
of any preliminary notice provided pursuant to this section.
  SEC. 2.  Section 3098.5 is added to the  Civil Code , to read:
   3098.5.  "Preliminary 20-day bond notice (public work)" means a
written notice from a claimant that was given prior to the assertion
of a claim against a payment bond on public work, and is required to
be given under the following circumstances:(a) In any case in which
the law of this state affords a right to a person furnishing labor or
materials for a public work who has not been paid therefor to assert
a claim against a payment bond with the public agency and thereby
cause the withholding of payment from the contractor for the public
work, any person that has no direct contractual relationship with the
contractor, other than a person who performed actual labor for wages
or an express trust fund described in Section 3111, may file the
preliminary notice, but no payment shall be withheld from the
contractor pursuant to that notice unless the person has caused
written notice to be given to the contractor, and to the public
agency concerned, not later than 20 days after the claimant has first
furnished labor, services, equipment, or materials to the jobsite,
stating with substantial accuracy a general description of labor,
service, equipment, or materials furnished or to be furnished, and
the name of the party to whom the same was furnished. This notice
shall be served by mailing the same by first-class mail, registered
mail, or certified mail, postage prepaid, in an envelope addressed to
the contractor at any place the contractor maintains an office or
conducts business, or his or her residence, or by personal service.
In case of any public works constructed by the Department of Public
Works or the Department of General Services of the state, such notice
shall be served by mailing in the same manner as above, addressed to
the office of the disbursing officer of the department constructing
the work, or by personal service upon the officer. When service is by
registered or certified mail, service is complete at the time of the
deposit of the registered or certified mail.
   (b) If the contract price to be paid to any subcontractor on a
particular work of improvement exceeds four hundred dollars ($400),
the failure of that contractor, licensed under Chapter 9 (commencing
with Section 7000) of Division 3 of the Business and Professions
Code, to give the notice provided for in this section, constitutes
grounds for disciplinary action by the Registrar of Contractors.
   (c) The notice requirements of this section shall not apply to a
laborer described in Section 3089 or to an express trust fund
described in Section 3111.
   (d) If labor, service, equipment, or materials have been furnished
to a jobsite by a claimant who did not give a preliminary notice
pursuant to subdivision (a), that claimant shall not be precluded
from giving a preliminary notice at any time thereafter. The claimant
shall, however, be entitled to assert a claim against a payment bond
only for labor, service, equipment, or material furnished within 20
days prior to the service of the preliminary notice, and at any time
thereafter.
   (e) The failure to provide, pursuant to Chapter 974 of the
Statutes of 1994, a written preliminary notice to a subcontractor
with whom the claimant has contracted shall not affect the validity
of any preliminary notice provided pursuant to this section.
  SEC. 3.  Section 3252 of the  Civil Code  is amended to read:
   3252.   (a)    With regard to a
contract entered into on or after January 1, 1995, in order to
enforce a claim upon any payment bond given in connection with a
public work, a claimant shall give the 20-day public works
preliminary bond notice as provided in Section  3098
  3098.5  .   (b) If the 20-day public work
preliminary bond notice was not given as provided in Section 3098, a
claimant may enforce a claim by giving written notice to the surety
and the bond principal as provided in Section 3227 within 15 days
after recordation of a notice of completion. If no notice of
completion has been recorded, the time for giving written notice to
the surety and the bond principal is extended to 75 days after
completion of the work of improvement.