BILL ANALYSIS �
AB 456
Page 1
Date of Hearing: September 9, 2011
ASSEMBLY COMMITTEE ON JUDICIARY
Mike Feuer, Chair
AB 456 (Wagner) - As Amended: September 2, 2011
FOR CONCURRENCE
SUBJECT : MECHANICS LIENS
KEY ISSUE : SHOULD THE AFFIDAVIT FOR SERVICE OF A MECHANICS LIEN
BE CLARIFIED TO MORE CLOSELY REFLECT THE MANNER OF SERVICE?
SYNOPSIS
Mechanics lien claims are required to be served upon the owner
or reputed owner of the property, and the statute specifies the
manner of service when the owner or reputed owner resides within
or outside the state. If the owner or reputed owner cannot be
served by that method, the statute allows notice to be given as
prescribed to the construction lender or to the
original contractor. In either event, an affidavit of service
must be executed in order for the claim to be enforceable. This
bill clarifies the language of the statute regarding this
affidavit so that it better conforms to the statute regarding
the method of service and to avoid confusion and inadvertent
error. There is no known opposition.
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,
consistently with existing obligations regarding service of
these claims.
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
AB 456
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on file. The author notes 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
minor error in the name, part of the name or title.
According to supporters:
Passage of this measure is critical, because it makes an
important clarifying change to existing law that, if left
unchanged, could result in mechanics liens being
invalidated due to very minor errors. . . . Throughout the
Civil Code Sections 3084 and �8]146, and in the mechanic's
(sic) lien itself, it requires the name of the owner or
reputed owner while in the Proof of Service Affidavit it
requires the name and title of the person served. In a
day-to-day application of this new law those who are
preparing the mechanic's lien, and the Proof of Service
Affidavit that is now required, often do not know or have
access to accurate information regarding the specific name
and title of a person to be listed on the Proof of Service
Affidavit, which is now part of the mechanic's lien. This
is true particularly when the property is owned by a
business organization. This creates a large problem
because the new statu�t]e states that: "Failure to serve
the mechanic's lien, including the notice of mechanic's
lien, as prescribed by this section, shall cause the
mechanic's lien to be unenforceable as a matter of law."
AB 456 is a simple amendment to the new statute to insert
"owner or reputed owner" where the current statute
specifies "person or persons�,"] and in doing so, provides
clarification and consistency in the code to ensure that,
if the owner or reputed owner is listed in the Proof of
Service Affidavit, then there �would not] be the
opportunity to invalidate the lien based on a minor error
in name, part of the name, or title.
Thus, supporters argue, 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.
REGISTERED SUPPORT / OPPOSITION :
Support
AB 456
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Air Conditioning and Refrigeration Contractors Association
Air Conditioning and Sheet Metal Association
Building Industry Credit Association
California Chapter of the American Fence Association
California Chapters of the National Electrical Contractors
Association
California Fence Contractors' Association
California Landscape and Irrigation Council
California Legislative Conference of the Plumbing, Heating, and
Piping Industry
Construction Industry Force Account Council
Engineering Contractors' Association
Flasher Barricade Association
Marin Builders' Association
Opposition
None on file
Analysis Prepared by : Kevin G. Baker / JUD. / (916) 319-2334