Bill Text: CA AB1207 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Civil actions: limitations: real property development.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-02-01 - Died pursuant to Art. IV, Sec. 10(c) of the Constitution. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1207 Detail]

Download: California-2011-AB1207-Amended.html

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BILL NUMBER: AB 1207	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 25, 2011
	AMENDED IN ASSEMBLY  MARCH 15, 2011

INTRODUCED BY   Assembly Member Furutani

                        FEBRUARY 18, 2011

    An act to amend Section 14010 of the Corporations Code,
relating to small businesses.   An act to amend Section
337.15 of the Code of Civil Procedure, relating to civil actions.




	LEGISLATIVE COUNSEL'S DIGEST

F   AB 1207, as amended, Furutani.  Small business. 
 Civil actions: limitations: real property development. 

   Existing law prohibits bringing an action for damages from any
person who develops real property or performs or furnishes the
design, specifications, surveying, planning, supervision, testing, or
observation of construction or construction of an improvement to
real property more than 10 years after the substantial completion of
the development or improvement, as specified.  
   This bill would provide that this limitation does not apply to an
action in tort to recover damages for damage to real or personal
property, or for personal injury or wrongful death from exposure to
hazardous or toxic materials, pollution, hazardous waste, or
associated environmental remediation activities.  
   Existing law, the California Small Business Financial Development
Corporation Law, provides for a program to provide loans and loan
guarantees to small businesses, as specified, and defines certain
terms for its purposes.  
   This bill would define "microenterprise" as an entity that has 5
or fewer employees and lacks sufficient access to conventional loans,
Fequity, or other banking services.    Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
F   SECTION 1.    Section 337.15 of the   Code
of Civil Procedure   is amended to read: 
   337.15.  (a) No action may be brought to recover damages from any
person, or the surety of a person, who develops real property or
performs or furnishes the design, specifications, surveying,
planning, supervision, testing, or observation of construction or
construction of an improvement to real property more than 10 years
after the substantial completion of the development or improvement
for any of the following:
   (1) Any latent deficiency in the design, specification, surveying,
planning, supervision, or observation of construction or
construction of an improvement to, or survey of, real property.
   (2) Injury to property, real or personal, arising out of any such
latent deficiency.
   (b) As used in this section, "latent deficiency" means a
deficiency which is not apparent by reasonable inspection.
   (c) As used in this section, "action" includes an action for
indemnity brought against a person arising out of that person's
performance or furnishing of services or materials referred to in
this section, except that a cross-complaint for indemnity may be
filed pursuant to subdivision (b) of Section 428.10 in an action
which has been brought within the time period set forth in
subdivision (a) of this section.
   (d) Nothing in this section shall be construed as extending the
period prescribed by the laws of this state for bringing any action.
   (e) The limitation prescribed by this section shall not be
asserted by way of defense by any person in actual possession or the
control, as owner, tenant or otherwise, of such an improvement, at
the time any deficiency in the improvement constitutes the proximate
cause for which it is proposed to bring an action.
   (f) This section shall not apply to actions based on willful
misconduct or fraudulent concealment. 
   (g) The limitation prescribed by this section does not apply to an
action in tort to recover damages for damage to real or personal
property, or for personal injury or wrongful death from exposure to
hazardous or toxic materials, pollution, hazardous waste, or
associated environmental remediation activities.  
   (g) 
    (h)     (1)    The 10-year
period specified in subdivision (a) shall commence upon substantial
completion of the improvement, but not later than the date of one of
the following, whichever first occurs: 
   (1) 
    (A)  The date of final inspection by the applicable
public agency. 
   (2) 
    (B)  The date of recordation of a valid notice of
completion. 
   (3) 
    (C)  The date of use or occupation of the improvement.

   (4) 
    (D)  One year after termination or cessation of work on
the improvement. 
    The 
    (2)     The  date of substantial
completion shall relate specifically to the performance or furnishing
design, specifications, surveying, planning, supervision, testing,
observation of construction or construction services by each
profession or trade rendering services to the improvement. 
  SECTION 1.    Section 14010 of the Corporations
Code is amended to read:
   14010.  Unless the context otherwise requires, the definitions in
this section govern the construction of this part.
   (a) "Corporation" or "the corporation" means any nonprofit
California small business financial development corporation created
pursuant to this part.
   (b) "Financial institution" means banking organizations including
national banks and trust companies authorized to conduct business in
California and state-chartered commercial banks, trust companies, and
Fsavings and loan associations.   (c) "Financial company" means banking organizations including
national banks and trust companies, savings and loan associations,
state insurance companies, mutual insurance companies, and other
banking, lending, retirement, and insurance organizations.
   (d) "Expansion Fund" means the California Small Business Expansion
FFund.   (e) Unless otherwise defined by the director by regulation, "small
business loan" means a loan to a business defined as an eligible
small business as set forth in Section 121.3-10 of Part 121 of
Chapter 1 of Title 13 of the Code of Federal Regulations, including
those businesses organized for agricultural purposes that create or
retain employment as a result of the loan. From time to time, the
director shall provide guidelines as to the preferred ratio of jobs
created or retained to total funds borrowed for guidance to the
corporations.
   (f) "Employment incentive loan" means a loan to a qualified
business, as defined in subdivision (h) of Section 7082 of the
Government Code, or to a business located within an enterprise zone,
as defined in subdivision (b) of Section 7072 of the Government Code.
F   (g) "Loan committee" means a committee appointed by the board of
directors of a corporation to determine the course of action on a
loan application pursuant to Section 14060.
   (h) "Board of directors" means the board of directors of the
corporation.
   (i) "Board" means the California Small Business Board.
   (j) "Agency" means the Business, Transportation and Housing
Agency.
   (k) "Director" means the person designated to this title by the
secretary.
   (l) "Secretary" means the Secretary of Business, Transportation
and Housing Agency.
   (m) "Trust fund" means the money from the expansion fund that is
held in trust by a financial institution or a financial company. A
trust fund is not a deposit of state funds and is not subject to the
requirements of Section 16506 of the Government Code.
   (n) "Trust fund account" means an account within the trust fund
that is allocated to a particular small business financial
development corporation for the purpose of paying loan defaults and
claims on bond guarantees for a specific small business financial
development corporation.
   (o) "Trustee" is the lending institution or financial company
selected by the office to hold and invest the trust fund. The
agreement between the agency and the trustee shall not be construed
to be a deposit of state funds.
   (p) "Microenterprise" means a sole proprietorship, partnership,
limited liability company, or corporation that meets all of the
following requirements:
   (1) Has five or fewer employees, including the owner.
   (2) Generally lacks sufficient access to conventional loans,
equity, or other banking services.