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2018 Construction Law Round-Up

Dozens of new laws or amendments will effect the construction  industry in 2018. The following is a round-up of some of these new law.

 

Unsatisfied Judgment Prohibits Work

Assembly  Bill 1278 provides that when an unsatisfied judgment is issued against  a license the qualifying individual or personnel of record (who worked for  the license during the time the activities took place) are prohibited from  working in the same capacity for another license. In addition, any applicant  for a license, renewal, reinstatement, or to change officers or other  personnel of record must file or have on file with the board an additional  bond sufficient to guarantee payment of the unsatisfied judgment for a minimum  of one year.

 

No Discretionary Waiver of Liquidated Damages for Prevailing  Wage Violations

Senate Bill 96 permits public works  registrations for three year periods begining June 1, 2019; exempts  construction projects of $25,000 or less and maintenance projects of $15,000  or less from registration; provides penalties for failure to register a  public work; eliminates discretion of the Labor Commission to waive  liquidated damages for prevailing wage violations.

 

Increase in Journeymen Requirements

Senate Bill 418 provides that for work performed  after January 1, 2018, at least 40% of skilled journeypersons are graduates  of apprencticeship programs, with the exception of certain occupations. The  requirement increases to 50% for 2019 and then 60% for 2020.

 

No Lien on Common Interest Development

Assembly Bill 534 prohibits a mechanic's lien from  being recorded against another owner's property in a common interest  development on which work was performed unless consent was provided by that  owner or that owner requested the performance of labor or furnishing of  materials or services. However, consent shall be deemed given in the case of  emergency repairs.

 

$4.5 Billion Housing Bond

Senate Bill 3, in response to the housing and  homeless crisis, if adopted by the voters in November 2018, this bill would  authorize $4.5 billion in bonds for veterans and affordable housing.

 

CSLB Letter of Admonishment

Senate Bill 486 permits the Contractor's License  Board to issue a letter of admonishment to registrants as an intermediate  form of discipline between an advisory notice and a citation.