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Abdulaziz, Grossbart & Rudman Newsletter
06-12-2012 |
NEW LAWS GO INTO
EFFECT
JULY 1ST!!!!
You've known for a while that things were changing but are you prepared? SB 189 and SB 190 make numerous changes and although these changes are not very substantive they will need to be complied with. This is especially true since there is no grace period on compliance. This is meant to just be a very brief overview of the items that are changing effective July 1, 2012.
The biggest item is the statutory reference changes. The Civil Code sections that deal with Mechanic's Liens, Stop Notices and Payment Bonds have been completely renumbered. As an example, the information currently found in Civil Code section 3081.1 will be found in the new Civil Code sections 8014 and 8300 beginning July 1, 2012.
Some of the common terms that the industry is accustomed to dealing with have been redefined in the statutes. Effective July 1, 2012, "materialman" will be "material supplier"; "original contractor" will be "direct contractor"; "Stop Notice" will be "Stop Payment Notice". In addition, the definition of a contract has been broadened. If the contract is with the "direct contractor" it will be called a "direct contract". Lastly, the definition of a "design professional" will include a licensed landscape architect effective July 1, 2012.
The "Preliminary 20-Day Notice" will simply be referred to as a "Preliminary Notice". The private works Preliminary Notice will have new language for the Notice to Property Owner effective July 1, 2012. This language can be found in the new Civil Code section 8202 or on our website.
The waiver and lien releases have been completely re-written by the new legislation. The statute indicates that "the waiver and release shall be null, void, and unenforceable unless it is in substantially the following form:" and proceeds to have the suggested text for each waiver. We believe it is better to be safe rather than risk the waivers and releases being unenforceable and use the exact same language provided in the statutes. The Conditional Waiver and Release on Progress Payment, Conditional Waiver and Release on Final Payment; Unconditional Waiver and Release on Progress Payment and Unconditional Waiver and Release on Final Payment can be found in the new Civil Code section 8132, 8134, 8136 and 8138 or on our website.
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