Construction Forms
New Lien Law Changes Effective July 1, 2012
Brief History:
For nearly a decade, the California Law Revision Commission attempted to revise the statutes governing preliminary notices, waivers and releases upon payment, mechanic’s liens, stop notices, and related procedures and remedies used by owners, contractors, subcontractors, and material and equipment suppliers.
The first legislative attempt at this revision was SB 1691 which was passed by the Legislature but vetoed in 2008 by Governor Schwarzenegger.
The bill was reintroduced in the 2009-2010 session as SB 189. This bill drew enormous and immediate reaction from the contractor, trade contractor and material supplier communities. A broad coalition was formed by the stakeholders to ensure preservation of rights held contractors and suppliers in private and public works.
For years, including during the debate on SB 189, the idea of curtailing and limiting lien rights in California was floated at the Capitol. The coalition firmly and uniformly conveyed to legislators that any proposed restriction on these rights would be met with fierce opposition by the construction industry. General contractors, subcontractors and suppliers extend credit to others and the remedies provided by the Lien Law Statutes are often the only leverage they have to receive payment for the labor, services and materials they affix to real property.
I was proud to being part of a coalition of bright and energetic attorneys who worked with Senator Lowenthal, his staff and equally dedicated members of the LRC. As a result of this cooperative effort, we attained the goal of reorganizing the Lien Law Statutes while preserving rights for an industry that is struggling to create jobs and build the infrastructure California needs. Senator Lowenthal and the commission were receptive to the concerns of the construction industry and should be commended for their thoughtfulness, responsiveness and patience during this large endeavor, including delaying the effective date to provide more time for the industry to acclimate to the revisions.
[The information required in the Mechanic’s Lien form was previously changed in 2010 by AB 457 (Monning) and effective January 1, 2011.]
Please Note:
Most of the information required in the various lien forms has not substantially changed. However, there are some changes in the forms from the ones you may have used previously.
As of July 1st you must use the revised forms which reflect the statutory changes or you may lose your lien rights.
