BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2654|
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CONSENT
Bill No: AB 2654
Author: Morrell (R)
Amended: 8/7/12 in Senate
Vote: 27 - Urgency
SENATE JUDICIARY COMMITTEE : 4-0, 7/3/12
AYES: Evans, Blakeslee, Corbett, Leno
NO VOTE RECORDED: Harman
ASSEMBLY FLOOR : 75-0, 5/7/12 (Consent) - See last page for
vote
SUBJECT : Mining liens: definitions
SOURCE : Author
DIGEST : This bill revises the definition of a "mine" as
a mining claim or real property worked on as a mine,
including, but not limited to, any quarry or pit, from
which rock, gravel, sand, or other mineral-containing
property is extracted by any mining or surface mining
operation. This bill also states the legislative intent to
supercede the holding of a California Appellate Court
decision in Sukut Const. Inc. v. Rimrock CA, LLC (2011) 199
Cal.App.4th. 817.
ANALYSIS : Existing law provides that mechanics, persons
furnishing materials, artisans, and laborers of every class
shall have a lien upon the property upon which they
bestowed labor or furnished material for the value of such
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AB 2654
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labor done and material furnished. (California
Constitution, Art. 14, Sec. 3.)
Existing law sets forth obligations and rights of
contributors, owners, construction lenders, and persons
otherwise involved in an improvement to real property, in
what is informally known as the mechanics lien statute.
(Civil Code Secs. 3082 et seq., operative until July 1,
2012; 8160 et seq., operative July 1 2012.)
Existing law, operative as of July 1, 2012, provides that
any person who performs labor in a mine, either in the
development of it or in working on it by the subtractive
process, or furnishes materials to be used or consumed in
it, has a lien upon the mine and the works owned and used
by the owners for milling or reducing the ores from the
mine, for the value of the work or labor done or materials
furnished by each, as specified, and defines a "mine" as a
mining claim or real property worked on as a mine.
Existing law also provides such liens are enforceable in
the same manner as works of improvement, including
mechanics liens, as specified. (Civil Code Sec. 3060; a
prior version of this section, which was substantially
similar became inoperative as of July 1, 2012.)
This bill, until July 1, 2012, defines "mine" to mean a
mining claim or real property worked on as a mine,
including, but not limited to, any quarry or pit, from
which rock, gravel, sand, or any other mineral-containing
property is extracted by any mining, or surface mining,
operation. This bill provides that this section would be
repealed as of January 1, 2013, unless a later enacted
statute that becomes operative on or before July 1, 2013,
deletes or extends that date.
This bill, operative July 1, 2012, defines "mine" to mean a
mining claim or real property worked on as a mine,
including, but not limited to, any quarry or pit, from
which rock, gravel, sand, or any other mineral-containing
property is extracted by any mining, or surface mining,
operation.
This bill states legislative intent to supercede the 4th
District Court of Appeal's holding in Sukut Const., Inc. v.
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AB 2654
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Rimrock, CA LLC (2011) 199 Cal.App.4th 817.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 8/7/12)
Associated General Contractors
Southern California Contractors Association
ARGUMENTS IN SUPPORT : According to the author:
Article XIV, Section 3 of the California Constitution
guarantees lien rights for contractors. �That
section] reads, "�m]echanics, persons furnishing
materials, artisans, and laborers of every class,
shall have a lien upon the property upon which they
bestowed labor or furnished material for the value of
such labor done . . ."
Unfortunately, a recent State Appellate Court decision
(Sukut v. Rimrock (2011) 199 Cal.App.4th 817)
jeopardizes the lien rights of contractors that
perform work at mines or rock quarries. The court
determined that a rock quarry is not a mine. This
finding defies the actual meaning of a rock quarry and
makes Civil Code Section 3060 inapplicable to
contractors that work at rock quarries, denying the
constitutional guarantee of Article XIV, Section 3.
The lien is nothing more than collateral to ensure
payment. If a contractor or material supplier is not
paid for work performed, the statutes ultimately
authorize a contractor to foreclose on the property in
order to recover the amount owed. AB 2654 amends
Civil Code Section 3060, the mining lien law, to
define the term "mine" to include "a mining claim or
real property worked on as a mine, including any
quarry or pit, from which rock, gravel, sand, or any
other mineral-containing property is extracted by any
mining or surface mining, operation." ?
AB 2654 �also] declares the intent of the legislature
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to supersede �sic] the holding in Sukut Const., Inc.
v. Rimrock, CA LLC (2011) 199 Cal.App.4th 817.
ASSEMBLY FLOOR : 75-0, 5/7/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Buchanan, Butler, Charles Calderon, Campos, Carter,
Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fong, Fuentes, Beth Gaines,
Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman,
Halderman, Harkey, Hayashi, Roger Hern�ndez, Hill, Huber,
Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue,
Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan,
Perea, V. Manuel P�rez, Silva, Skinner, Smyth, Solorio,
Swanson, Torres, Valadao, Wagner, Wieckowski, Williams,
Yamada, John A. P�rez
NO VOTE RECORDED: Brownley, Fletcher, Furutani, Hall,
Portantino
RJG:nl 8/1/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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