Bill Text: CA AB457 | 2009-2010 | Regular Session | Amended

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

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Bill Title: Liens.

Spectrum: Bipartisan Bill

Status: (Passed) 2009-08-06 - Chaptered by Secretary of State - Chapter 109, Statutes of 2009. [AB457 Detail]

Download: California-2009-AB457-Amended.html

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BILL NUMBER: AB 457	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 11, 2009
	AMENDED IN ASSEMBLY  MARCH 25, 2009

INTRODUCED BY   Assembly Member Monning
   (Coauthor: Assembly Member Emmerson)

                        FEBRUARY 24, 2009

   An act to amend Sections 3084 and 3146 of the Civil Code, relating
to liens.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 457, as amended, Monning. Liens.
   The California Constitution gives workers the right to a mechanic'
s lien for the value of labor and materials provided for the
improvement of real property, and authorizes the Legislature to
provide for the speedy and efficient enforcement of these liens.
Existing law defines claim of lien in this regard, requiring it to
contain specified information. Existing law provides that a lien
claimant, after filing of the complaint to enforce the lien in the
proper court, may record in the office of the county recorder where
the property is located a notice of pending proceedings, and from the
time of the recording a purchaser or encumbrancer of the property is
deemed to have constructive notice of the pendency of the action.
   This bill would provide that the definition of "claim of lien" is
also the definition of "mechanic's lien" and would include within
this definition a Notice of Mechanic's Lien, which would contain
specified information regarding the legal effect of the lien. The
bill would require the mechanic's lien and the Notice of Mechanic's
Lien to be served, as specified, on the owner or reputed owner of the
property, or on the construction lender or the original contractor
if those parties cannot be served. The bill would require a proof of
service affidavit to be completed in a specified form and signed by
the person serving the Notice of Mechanic's Lien, and this form would
be included as part of the mechanic's lien or claim of lien. 
The form would be signed under penalty of perjury. By applying the
crime of perjury to this form, the bill would create a state-mandated
local program.  The bill would provide that a failure to serve
the mechanic's lien, including the Notice of Mechanic's Lien, as
required, would cause the mechanic's lien to be unenforceable as a
matter of law.
    The bill would also revise the permissive provisions regarding
the recording of the complaint to enforce the lien, as described
above, to make them mandatory. The bill would  make 
also make correctional, style, and conforming changes. 
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program:  no
  yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 3084 of the Civil Code is amended to read:
   3084.  (a) "Claim of lien" or "mechanic's lien" means a written
statement, signed and verified by the claimant or by the claimant's
agent, containing all of the following:
   (1) A statement of the claimant's demand after deducting all just
credits and offsets.
   (2) The name of the owner or reputed owner, if known.
   (3) A general statement of the kind of labor, services, equipment,
or materials furnished by the claimant.
   (4) The name of the person by whom the claimant was employed or to
whom the claimant furnished the labor, services, equipment, or
materials.
   (5) A description of the site sufficient for identification.
   (6) An affidavit completed and signed by the person serving the
Notice of Mechanic's Lien pursuant to paragraph (7) in the following
form:

   PROOF OF SERVICE AFFIDAVIT  
   I, (insert name of person making service), declare that I served a
copy of the mechanic's lien by registered mail, certified mail, or
first-class mail, evidenced by a certificate of mailing, postage
prepaid, addressed to the following owner or reputed owner of the
property (insert name and title of person served) at the following
address______________________________________________, on this
date:____________.  
   Signed at___________________________, on this date___________.
 
    _(Signature of person making service) 

             PROOF OF SERVICE AFFIDAVIT 
   I, (insert name of person making service), 
declare that I served a copy of the mechanic's 
 lien by registered mail, certified mail, or 
 first-class mail, evidenced by a certificate of 
 mailing, postage prepaid, addressed to the 
 following owner or reputed owner of the 
 property (insert name and title of person 
 served) at the following address 
 ______________________________________________, 
 on this date: _____________. 
   I declare under penalty of perjury under the 
 laws of the State of California that the 
 foregoing is true and correct. 
   Signed at__________, on this date ____________. 
   ____________________________________ 
   (Signature of person making service) 


   (7) The following statement, printed in at least 10-point boldface
type. The letters of the last sentence shall be printed in uppercase
type, excepting the Internet Web site address of the Contractors'
State License Board, which shall be printed in lowercase type:

   NOTICE OF MECHANIC'S LIEN  
   ATTENTION! 
 NOTICE OF MECHANIC'S LIEN 
 ATTENTION! 


   Upon the recording of the enclosed MECHANIC'S LIEN with the county
recorder's office of the county where the property is located, your
property is subject to the filing of a legal action seeking a
court-ordered foreclosure sale of the real property on which the lien
has been recorded. That legal action must be filed with the court no
later than 90 days after the date the mechanic's lien is recorded.
   The party identified in the mechanic's lien may have provided
labor or materials for improvements to your property and may not have
been paid for these items. You are receiving this notice because it
is a required step in filing a mechanic's lien foreclosure action
against your property. The foreclosure action will seek a sale of
your property in order to pay for unpaid labor, materials, or
improvements provided to your property. This may affect your ability
to borrow against, refinance, or sell the property until the mechanic'
s lien is released.
   BECAUSE THE LIEN AFFECTS YOUR PROPERTY, YOU MAY WISH TO  SPEAK
WITH YOUR CONTRACTOR IMMEDIATELY, OR  CONTACT AN ATTORNEY
 IMMEDIATELY  , OR FOR MORE INFORMATION ON MECHANIC'
S LIENS GO TO THE CONTRACTORS' STATE LICENSE BOARD WEB SITE AT
www.cslb.ca.gov.

   (b) A mechanic's lien or claim of lien in otherwise proper form,
verified and containing the information required by this section
shall be accepted by the recorder for recording and shall be deemed
duly recorded without acknowledgment.
   (c) (1) The mechanic's lien and the Notice of Mechanic's Lien
described in this section shall be served as follows:
   (A) For an owner or reputed owner to be notified who resides in or
outside this state, 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 on file with the authority
issuing a building permit for the work, or as otherwise provided in
subdivision (j) of Section 3097.
   (B) If the owner or reputed owner cannot be served by this method,
then the notice may be given by registered mail, certified mail, or
first-class mail, evidenced by a certificate of mailing, postage
prepaid, addressed to the construction lender or to the original
contractor.
   (2) Service by registered mail, certified mail, or first-class
mail, evidenced by a certificate of mailing, postage prepaid, is
complete at the time of the deposit of that first-class certified or
registered mail.
   (d) 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.
  SEC. 2.  Section 3146 of the Civil Code is amended to read:
   3146.  After the filing of the complaint in the proper court to
foreclose on the mechanic's lien, the plaintiff shall record in the
office of the county recorder of the county, or of the several
counties in which the property is situated, a notice of the pendency
of the proceedings, as provided in Title 4.5 (commencing with Section
405) of Part 2 of the Code of Civil Procedure on or before 20 days
after the filing of the mechanic's lien foreclosure action. Only from
the time of recording that notice shall a purchaser or encumbrancer
of the property affected thereby be deemed to have constructive
notice of the pendency of the action, and in that event only of its
pendency against parties designated by their real names.
  SEC. 3.  The amendments proposed by this act shall be operative on
January 1, 2011. 
  SEC. 4.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.