BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 927
                                                                  Page 1

          Date of Hearing:  April 14, 2009

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                 AB 927 (Calderon) - As Introduced: February 26, 2009

                    PROPOSED CONSENT (As Proposed to be Amended)
                                           
          SUBJECT  :  COMMON INTEREST DEVELOPMENTS: CONSTRUCTION DEFECTS

           KEY ISSUE  :  SHOULD CURRENT PRE-LITIGATION PROCEDURES BE  
          EXTENDED?

           FISCAL EFFECT  :  As currently in print this bill is keyed  
          non-fiscal.

                                      SYNOPSIS
          
          This non-controversial measure extends for seven years the  
          existing sunset on the special pre-litigation procedures  
          applicable to construction defect disputes regarding common  
          interest developments.  By all accounts, existing law appears to  
          be working adequately. 

           SUMMARY  :  Retains existing law regarding construction defect  
          dispute resolution.  Specifically,  this bill  extends the  
          existing sunset in Civil Code section 1375 for seven years.

           EXISTING LAW  requires until July 1, 2010 with respect to certain  
          common interest developments (CIDs) that specified requirements  
          be satisfied before an association files a complaint for damages  
          against the builder and others based upon a claim for defects in  
          the design or construction of the development.  (Civil Code  
          section 1375.)

           COMMENTS  :  Before a CID association files suit for construction  
          defects, certain actions are required, including filing a notice  
          regarding the commencement of legal proceedings, participating  
          in a dispute resolution process, and preparing a case management  
          statement.  This provision sunsets July 1, 2010.  This bill  
          would extend the period for another seven years.  

          Author's Amendment:   In order to maintain the status quo, the  
          author appropriately proposes to amend the bill to extend the  
          existing sunset by seven years, rather than delete it entirely.








                                                                  AB 927
                                                                  Page 2


           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Building Industry Association
          Civil Justice Association of California

           Opposition 
           
          None on file
           
          Analysis Prepared by  :  Kevin G. Baker / JUD. / (916) 319-2334