BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 456
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 456 (Wagner)
          As Amended September 2, 2011
          Majority vote 
           
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          |ASSEMBLY:  |69-0 |(April 25,      |SENATE: |35-0 |(September 7,  |
          |           |     |2011)           |        |     |2011)          |
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          Original Committee Reference:    JUD.  

           SUMMARY  :  Clarifies the procedure for mechanics liens claims.  
          Specifically,  this bill  clarifies that mechanics' lien claimants 
          in construction disputes shall specify in the required affidavit 
          indicating service of the notice of mechanics lien that the 
          notice was served on the owner or reputed owner of the property.

           The Senate amendments  delete the Assembly version of this bill 
          and instead amend the bill to substitute the above provisions.
           
          AS PASSED BY THE ASSEMBLY  , this bill addressed motions to stay 
          litigation pending arbitration of mechanics lien claims by 
          specifying that a party may seek a stay of litigation pending 
          the outcome of arbitration to which the parties agree, without 
          any necessity to move for an order to compel arbitration, 
          provided that if any party opposes the motion to stay the action 
          on the ground that the party objects to arbitration of the 
          dispute, the court shall determine whether the claim of lien or 
          any relevant issue, question or dispute is subject to 
          arbitration before staying the action.
           
          FISCAL EFFECT  :  None

           COMMENTS  :  According to the author, existing law requires that a 
          mechanics lien and the accompanying Proof of Service Affidavit 
          be served on an owner or reputed owner by registered mail, 
          certified mail, or first-class mail, evidenced by a certificate 
          of mailing, postage prepaid, addressed to the owner or reputed 
          owner at the owner's or reputed owner's residence or place of 
          business address or at the address shown by the building permit 
          on file.  The author argues that this bill would provide 
          clarification and consistency to ensure that, if the owner or 
          reputed owner is listed in the Proof of Service Affidavit, there 
          would not be the opportunity to invalidate the lien based on a 








                                                                  AB 456
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          minor error in the name, part of the name or title.

          Supporters argue that this bill makes an important clarifying 
          change to existing law that, if left unchanged, could result in 
          mechanics liens being invalidated due to very minor errors.  


           Analysis Prepared by  :    Kevin G. Baker / JUD. / (916) 319-2334 



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