BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1892
                                                                  Page  1

          Date of Hearing:   May 9, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  AB 1892 (Halderman) - As Amended:  April 16, 2012 

          Policy Committee:                              Business and 
          Professions  Vote:                            9 - 0 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill requires the Department of Consumer Affairs (DCA) to 
          post a notice on its Internet Web site advising consumers who 
          receive a construction defect solicitation to check with their 
          builder in addition to taking any further action. 

          FISCAL EFFECT  

          Minor and absorbable costs for DCA to post the required 
          advisory. 

           COMMENTS  

           1)Purpose  . Current law provides construction defect liability 
            standards for newly constructed housing and a process for the 
            resolution of construction defect disputes, including a 
            pre-litigation process that allows builders to repair defects 
            before a homeowner can file suit. 

            According to the author, homeowners are generally not 
            knowledgeable about the intricacies of construction defect 
            law, and what their rights are. Homeowners need to be able to 
            educate themselves on construction defect law, and what their 
            pre-litigation options are, in order to make an informed 
            decision about whether or not to pursue litigation. The author 
            argues, "Currently there are no impartial parties 
            disseminating this information in language and terms that the 
            average homeowner can understand." 

            As currently drafted, however, this bill is a one sentence 
            bill that simply requires DCA to post the following statement 








                                                                  AB 1892
                                                                  Page  2

            on its website:

            "If you receive a construction defect solicitation, please 
            check with your builder in addition to taking any further 
            action."



           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081