BILL NUMBER: AB 2335	ENROLLED
	BILL TEXT

	PASSED THE SENATE  JUNE 19, 2008
	PASSED THE ASSEMBLY  JUNE 23, 2008
	AMENDED IN SENATE  JUNE 17, 2008
	AMENDED IN ASSEMBLY  APRIL 14, 2008

INTRODUCED BY   Assembly Member Nakanishi

                        FEBRUARY 21, 2008

   An act to repeal Sections 19830, 19831, and 19832 of, and to
repeal and add Section 19825 of, the Health and Safety Code, relating
to building permits.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2335, Nakanishi. Building permits.
   Existing law, in separate provisions, requires every city or
county that necessitates the issuance of a permit as a condition
precedent to the construction, alteration, improvement, demolition,
or repair of any building or structure, at a minimum, to have the
owner of the building or structure complete specific forms and
declarations that identify the property and any agents or contractors
performing the work, if applicable, and declaring the project
complies with various laws. Existing law also requires the city or
county to provide notice to the owner of the property of the legal
implications of construction on the property.
   This bill would repeal those separate provisions and create a
single provision that combines and modifies the existing forms,
declarations, and notice to the property owner and expands the
acknowledgments property owners are required to make.


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

  SECTION 1.  Section 19825 of the Health and Safety Code is
repealed.
  SEC. 2.  Section 19825 is added to the Health and Safety Code, to
read:
   19825.  (a) Every city, county, or city and county, whether
general law or chartered, that requires the issuance of a permit as a
condition precedent to the construction, alteration, improvement,
demolition, or repair of any building or structure, shall require the
execution of a permit application, in substantially the same form
set forth under this subdivision, and require any individual who
executes the Owner-Builder Declaration to present documentation
sufficient to identify the property owner and, as necessary, verify
the signature of the property owner. A city, county, or city and
county may require additional information on the permit application.
                        PERMIT
                     APPLICATION
           BUILDING PROJECT IDENTIFICATION
Applicant's Mailing Address   _____________________
                               _____________________
Property Location or Address  _____________________
                               _____________________
Property Owner's Name         _____________________
Property Owner's              _____________________
Telephone No.
Licensed Design Professional
(Architect or Engineer) in    _____________________
charge of the project
Mailing Address of Licensed   _____________________
Design Professional
                               _____________________
                               License No.__________
       LICENSED CONTRACTOR'S       DECLARATION
  I hereby affirm under penalty of perjury that I
am licensed under provisions of Chapter 9
(commencing with Section 7000) of Division 3 of
the Business and Professions Code, and my license
is in full force and effect.
License Class _______________ License No. _________
Date ________________________ Contractor Signature
                               _____________________
              OWNER-BUILDER DECLARATION
  I hereby affirm under penalty of perjury that I
am exempt from the Contractors' State License Law
for the reason(s) indicated below by the
checkmark(s) I have placed next to the applicable
item(s) (Section 7031.5, Business and Professions
Code: Any city or county that requires a permit to
construct, alter, improve, demolish, or repair any
structure, prior to its issuance, also requires
the applicant for the permit to file a signed
statement that he or she is licensed pursuant to
the provisions of the Contractors' State License
Law (Chapter 9 (commencing with Section 7000) of
Division 3 of the Business and Professions Code)
or that he or she is exempt from licensure and the
basis for the alleged exemption. Any violation of
Section 7031.5 by any applicant for a permit
subjects the applicant to a civil penalty of not
more than five hundred dollars ($500).):
  (_) I, as owner of the property, or my employees
with wages as their sole compensation, will do (_)
all of or (_) portions of the work, and the
structure is not intended or offered for sale
(Section 7044, Business and Professions Code: The
Contractors' State License Law does not apply to
an owner of property who, through employees' or
personal effort, builds or improves the property,
provided that the improvements are not intended or
offered for sale. If, however, the building or
improvement is sold within one year of completion,
the Owner-Builder will have the burden of proving
that it was not built or improved for the purpose
of sale.).


(_) I, as owner of the property, am exclusively
contracting with licensed Contractors to
construct the project (Section 7044, Business
and Professions Code: The Contractors' State
License Law does not apply to an owner of
property who builds or improves thereon, and who
contracts for the projects with a licensed
Contractor pursuant to the Contractors' State
License Law.).


(_) I am exempt from licensure under the
Contractors' State License Law for the following
reason:
__________________________________________________
By my signature below I acknowledge that, except
for my personal residence in which I must have
resided for at least one year prior to completion
of the improvements covered by this permit, I
cannot legally       sell a structure that I have
built as an owner-builder if it has not been
constructed in its entirety by licensed
contractors. I understand that a copy of the
applicable law, Section 7044 of the Business and
Professions Code, is available upon request when
this application is submitted or at the following
Web site: http://www.leginfo.ca.gov/calaw.html.
Date _____________________
Signature of Property Owner or Authorized
Agent
__________________________________________________


          WORKERS' COMPENSATION DECLARATION
WARNING: FAILURE TO SECURE WORKERS' COMPENSATION
COVERAGE IS       UNLAWFUL, AND SHALL SUBJECT AN
EMPLOYER TO CRIMINAL PENALTIES AND CIVIL FINES UP
TO ONE HUNDRED THOUSAND DOLLARS ($100,000), IN
ADDITION TO THE COST OF COMPENSATION, DAMAGES AS
PROVIDED FOR IN SECTION 3706 OF THE LABOR CODE,
INTEREST, AND ATTORNEY'S FEES.
I hereby affirm under penalty of perjury one of
the following declarations:
____ I have and will maintain a certificate of
consent to self-insure for workers' compensation,
issued by the Director of Industrial Relations as
provided for by Section 3700 of the Labor Code,
for the performance of the work for which this
permit is issued.
Policy No. ____________________
____ I have and will maintain workers'
compensation insurance, as required by Section
3700 of the Labor Code,       for the performance
of the work for which this permit is issued. My
workers' compensation insurance carrier and
policy number are:
Carrier____________Policy Number  Expiration Date
Name of Agent _________________ Phone # __________


____ I certify that, in the performance of the
work for which this permit is issued, I shall not
employ any person in any manner so as to become
subject to the workers' compensation laws of
California,       and agree that, if I should
become subject to the workers' compensation
provisions of Section 3700 of the Labor Code, I
shall forthwith comply with those provisions.
____________
Signature of                      ______
__________                                   Date
Applicant
  DECLARATION REGARDING CONSTRUCTION LENDING AGENCY
I hereby affirm under penalty of perjury that
there is a construction lending agency for the
performance of the work for which this permit is
issued (Section 3097, Civil Code).
   Lender's Name __________________________________
   Lender's Address _______________________________
By my signature below, I certify to each of the
following:
I am the property owner or authorized to act on
the property owner's behalf.
I have read this application and the information
I have provided is correct.
I agree to comply with all applicable city and
county ordinances and state laws relating to
building construction.
I authorize representatives of this city or
county to enter the above-identified property for
inspection purposes.
Signature of Property Owner or Authorized Agent __
Date ____________________________


   (b) When the Permit Application and the Owner-Builder Declaration
have been executed by a person other than the property owner, prior
to issuing the permit, the following shall be completed by the
property owner and returned to the agency responsible for issuing the
permit:
     AUTHORIZATION OF AGENT TO ACT ON PROPERTY
                   OWNER'S BEHALF
Excluding the Notice to Property Owner, the
execution of which I understand is my personal
responsibility, I hereby authorize the following
person(s) to act as my agent(s) to apply for,
sign, and file the documents necessary to obtain
an Owner-Builder Permit for my project.
Scope of Construction Project (or Description of
Work):
_________________________________________________
Project Location or Address: ____________________
Name of Authorized
Agent: __________________________________________
Address of Authorized
Agent: __________________________________________
Phone Number of Authorized
Agent: __________________________________________


I declare under penalty of perjury that I am the
property owner for the address listed above and I
personally filled out the above information and
certify its accuracy.
Property Owner's Signature:_________________Date:
Note: A copy of the owner's driver's license, form
notarization, or other verification acceptable to
the agency is required to be presented when the
permit is issued to verify the property owner's
signature.


   (c) When the Owner-Builder Declaration required under subdivision
(a) is executed, a Notice to Property Owner also shall be executed by
the property owner in substantially the same form set forth under
this section. The Notice to Property Owner shall appear on the
official letterhead of the issuer and shall be provided to the
applicant by one of the following methods chosen by the permitting
authority: regular mail, electronic format, or given directly to the
applicant at the time the application for the permit is made. Except
as otherwise provided, the Notice to Property Owner pursuant to this
section shall be completed and signed by the property owner and
returned prior to issuance of the permit. An agent of the owner shall
not execute this notice unless the property owner obtains the prior
approval of the permitting authority. A permit shall not be issued
unless the property owner complies with this section.
NOTICE TO PROPERTY OWNER
Dear Property Owner:
  An application for a       building permit has
been submitted in your name listing yourself as
the builder of the property improvements specified
at _______________.
  We are providing you with an Owner-Builder
Acknowledgment and Information Verification Form
to make you aware of your responsibilities and
possible risk you may incur by having this permit
issued in your name as the Owner-Builder.
  We will not issue a building permit until you
have read, initialed your understanding of each
provision, signed, and returned this form to us at
our official address indicated. An agent of the
owner cannot execute this notice unless you, the
property owner, obtain the prior approval of the
permitting
authority.
OWNER'S ACKNOWLEDGMENT AND VERIFICATION OF
INFORMATION
DIRECTIONS: Read and initial each statement below
to signify you understand or verify this
information.
____1. I understand a frequent practice of
unlicensed persons is to have the property owner
obtain an ""Owner-Builder'' building permit that
erroneously implies that the property owner is
providing his or her own labor and material
personally. I, as an Owner-Builder, may be held
liable and subject to serious financial risk for
any injuries sustained by an unlicensed person and
his or her employees while working on my property.
My homeowner's insurance may not provide
coverage for those injuries. I am willfully acting
as an Owner-Builder and am aware of the limits of
my insurance coverage for injuries to workers on
my property.
____2. I understand building permits are not
required to be signed by property owners unless
they are responsible for the construction and are
not hiring a licensed Contractor to assume this
responsibility.
____3. I understand as an ""Owner-Builder'' I am
the responsible party of record       on the
permit. I understand that I may protect myself
from potential financial risk by hiring a licensed
Contractor and having the permit filed in his or
her name instead of my own.
____4. I understand Contractors are required by
law to be licensed and bonded in California and to
list their license numbers on permits and
contracts.
____5. I understand if I employ or otherwise
engage any persons, other than California licensed
Contractors, and the total value of my
construction is at least five hundred dollars
($500), including labor and materials, I may be
considered an ""employer'' under state and federal
law.
____6. I       understand if I am considered an
""employer'' under state and federal law, I must
register with the state and federal government,
withhold payroll taxes, provide workers'
compensation disability insurance, and contribute
to unemployment compensation for each
""employee.'' I also understand my failure to
abide by these laws may subject me to serious
financial risk.
____7. I understand under California Contractors'
State License Law, an Owner-Builder who builds
single-family residential structures cannot
legally build them with the intent to offer them
for sale, unless all work is performed by licensed
subcontractors and the number of structures does
not exceed four within any calendar year, or all
of the work is performed under contract with a
licensed general building Contractor.
____8. I understand as an Owner-Builder if I sell
the property for which this permit is issued, I
may be held liable for any financial or personal
injuries sustained by any subsequent owner(s) that
result from any latent construction defects in the
workmanship or materials.
____9. I understand I may obtain more information
regarding my obligations as an ""employer'' from
the Internal Revenue Service, the United States
Small Business Administration, the California
Department of Benefit Payments, and the California
Division of Industrial Accidents. I also
understand I may contact the California
Contractors' State License Board (CSLB) at 1-800-
321-CSLB (2752) or www.cslb.ca.gov for more
information about licensed contractors.
____10. I am aware of and consent       to an
Owner-Builder building permit applied for in my
name, and understand that I am the party legally
and financially responsible for proposed
construction activity at the following address:
___________________________________________________
____11. I agree that, as the party legally and
financially responsible for this proposed
construction activity, I will abide by all
applicable laws and requirements that govern Owner-
Builders as well as employers.
____ 12. I agree to notify the issuer of this form
immediately of any additions, deletions, or
changes to any of the information I have provided
on this form.
Licensed contractors are regulated by laws
designed to protect the public. If you contract
with someone who does not have a license, the
Contractors' State License Board may be unable to
assist you with any financial loss you may sustain
as a result of a complaint. Your only remedy
against unlicensed Contractors may be in civil
court. It is also important for you to understand
that if an unlicensed Contractor or employee of
that individual or firm is injured while working
on your property, you may be       held liable for
damages. If you obtain a permit as Owner-Builder
and wish to hire Contractors, you will be
responsible for verifying whether or not those
Contractors are properly licensed and the status
of their workers' compensation insurance coverage.
Before a building permit can be issued, this form
must be completed and signed by the property owner
and returned to the agency responsible for issuing
the permit.
Note: A copy of the property owner's driver's
license, form notarization, or other verification
acceptable to the agency is required to be
presented when the permit is issued to verify the
property owner's signature.
Signature of property owner ______ Date: __________


  SEC. 3.  Section 19830 of the Health and Safety Code is repealed.
  SEC. 4.  Section 19831 of the Health and Safety Code is repealed.
  SEC. 5.  Section 19832 of the Health and Safety Code is repealed.