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LEGAL ALERT!!!
NEW LEGISLATION REGARDING
NOTICES OF COMPLETION
TO TAKE EFFECT JANUARY 1, 2004
On July 14, 2003, SB134 (Figueroa) was signed into law by the
Governor. This law was designated by ASA as California's Afair
Notice@ legislation. The new law requires private project owners to
give notice within 10 days of recording a Notice of Completion to
subcontractors and suppliers who had properly served 20-day
preliminary lien notices. If the owners fail to give the statutory
notice, the time period for pursuing lien rights will not be
shortened from 90 days after actual completion to 30 days after the
recording of the Notice of Completion.
The original bill was
written by our very own Bill Crawford, ASAC Legal Counsel. Assembly
Member Bob Margett (now Senator Margett), agreed to carry the bill
for ASAC, and it was introduced to the state legislature in January,
1999 as AB171. The bill evolved into its present form after several
years and a great deal of debate with other trade organizations. The
bill changed authors in 2003 to be carried by State Senator Liz
Figueora.
This announcement is not intended as legal advice. For questions or
concerns about the new legislation, please contact the attorneys of
Crawford & Bangs. We welcome the opportunity to discuss the effect
of the new legislation on your particular business.
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