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 “fair 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.