BILL ANALYSIS �
AB 1892
Page 1
GOVERNOR'S VETO
AB 1892 (Halderman)
As Amended April 16, 2012
2/3 vote
BUSINESS & PROFESSIONS 9-0
APPROPRIATIONS 17-0
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|Ayes:|Hayashi, Bill Berryhill, |Ayes:|Fuentes, Harkey, |
| |Allen, Butler, Eng, | |Blumenfield, Bradford, |
| |Hagman, Hill, Ma, Smyth | |Charles Calderon, Campos, |
| | | |Davis, Donnelly, Gatto, |
| | | |Hall, Hill, Lara, |
| | | |Mitchell, Nielsen, Norby, |
| | | |Solorio, Wagner |
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|ASSEMBLY: |75-0 |(May 17, 2012) |SENATE: |37-0 |(August 23, |
| | | | | |2012) |
| | | | | | |
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Original Committee Reference: B.,P. & C.P.
SUMMARY : Requires the Department of Consumer Affairs (DCA) to
post the following notice on its Internet Web site: "If you
receive a construction defect solicitation, please check with
your builder in addition to taking any further action."
EXISTING LAW :
1)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.
2)Establishes, within the State and Consumer Services Agency,
AB 1892
Page 2
the DCA, which is comprised of a number of boards, bureaus,
and commissions for the purpose of ensuring that those private
businesses and professions deemed to engage in activities
which have potential impact upon the public health, safety,
and welfare are adequately regulated in order to protect the
people of California.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, minor and absorbable costs for DCA to post the
required advisory.
COMMENTS : SB 800 (Burton and Wesson), Chapter 722, Statutes of
2002, was considered landmark legislation in the area of
construction defect litigation. SB 800 enacted two significant
reforms. First, the bill established definitions of
construction defects for the first time, in order to provide a
measure of certainty and protection for homeowners, builders,
subcontractors, design professionals and insurers.
Second, the bill imposed a procedure that a homeowner must
follow before bringing suit against a builder. The homeowner
must send a written notice to the builder setting out the nature
of the claim. The builder must acknowledge the claim in
writing. The builder may then elect to conduct inspection and
testing of the alleged defect within a specified period, and
must provide certain documentation to the homeowner on request
regarding building plans and specifications.
The builder may then offer to repair the alleged violation
within a prescribed period. Such an offer to repair must also
compensate the homeowner for all applicable damages recoverable.
Upon receipt of the offer to repair, the homeowner has a
prescribed period in which to authorize the builder to proceed
with the repair. The offer to repair must also be accompanied
by an offer to mediate the dispute if the homeowner so chooses.
The homeowner is relieved from any further pre-litigation
process if the builder fails to acknowledge the claim within the
time specified, elects to not go through this statutory process,
fails to request an inspection within the time specified, fails
AB 1892
Page 3
to make the offer to repair or otherwise strictly comply with
the obligations of the statute within the times specified, or if
the contractor performing the repair does not complete the
repair in the time or manner specified.
The mission of DCA is to protect and serve California consumers
while ensuring a competent and fair marketplace. DCA helps
consumers learn how to protect themselves from unscrupulous and
unqualified individuals and protects professionals from unfair
competition by unlicensed practitioners.
GOVERNOR'S VETO MESSAGE :
"This bill would require the Department of Consumer Affairs to
place specific language on its website regarding construction
defects. This has already been done.
So in keeping with the author's oft-stated mantra that
government should not be wasteful or do unnecessary things, I am
returning Assembly Bill 1892 without my signature."
Analysis Prepared by : Angela Mapp / B.,P. & C.P. / (916)
319-3301
FN: 0005920