FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

New California "Construction" Legislation

November 08, 2018 — Richard H. Glucksman, Esq. & Chelsea L. Zwart, Esq. - Chapman Glucksman Dean Roeb & Barger

Governor Jerry Brown signed two potentially impactful Senate Bills relating to the construction of apartment buildings late last month. These Bills, discussed further below, were introduced, in part, in response to the Berkeley balcony collapse in June 2015, which was determined by the California Contractors State License Board to be caused by the failure of severely rotted structural support joists the repair of which were deferred by the property manager, despite indications of water damage.

SENATE BILL 721 ESTABLISHES HEIGHTENED “LOAD-BEARING” INSPECTION REQUIREMENTS

On August 21, 2018, the California State Senate passed SB 721, one of two bills by Senator Jerry Hill introduced this year seeking to address the safety of multifamily rental residences. Now that the Governor has signed the Bill, a new section will be added to the California Health and Safety Code, requiring that every 6 years, destructive testing be performed on at least 15% of each type of load-bearing, wood framed exterior elevated element (such as balconies, walkways, and stair landings) in apartment buildings with 3 or more units. Interestingly, prior to being passed by the State Senate, SB 721 was revised in June 2018, such that the inspection requirements do not apply to common interest developments (i.e., condominiums).

As set forth in the new Health and Safety Code Section 17973:

"the purpose of the inspection is to determine that exterior elevated elements and their associated waterproofing elements are in a generally safe condition, adequate working order, and free from any hazardous condition caused by fungus, deterioration, decay, or improper alteration to the extent that the life, limb, health, property, safety, or welfare of the public or the occupants is not endangered."

The inspection must be paid for by the building owner and performed by a licensed contractor, architect, or civil or structural engineer, or a certified building inspector or building official from a recognized state, national, or international association. Emergency repairs identified by the inspector must be made immediately. For non-emergency repairs, a permit must be applied for within 120 days and the repair completed within 120 days of the permit’s issuance. If repairs are not completed within 180 days, civil penalties of $100-$500 per day may be imposed.

The required inspection must be completed by January 1, 2025 and every 6 years thereafter, unless an equivalent inspection was performed during the 3 years prior to January 1, 2019, the effective date of the new law. For a building converted to condominiums that will be sold after January 1, 2019, the inspection required by Health and Safety Code Section 17973, must be performed prior to the first close of escrow.

SENATE BILL 1465 SETS CONTRACTOR REPORTING REQUIREMENTS

The Governor also signed SB 1465, adding Sections 7071.20, 7071.21, and 7071.22 to the California Business and Professions Code. The new law requires that a contractor licensed with the Contractors’ State License Board "report to the registrar in writing within 90 days after the licensee has knowledge of any civil action resulting in a final judgment, executed settlement agreement, or final arbitration award in which the licensee is named as a defendant or crossdefendant, filed on or after January 1, 2019," that meets certain and specific criteria, including that it is over $1 million and arises out of an action for damages to a property or person allegedly caused by specified construction activities of the contractor on a multifamily rental residential structure.

Where more than one contractor was named as a defendant or cross-defendant, each of the contractors apportioned more than $15,000 in liability must report the action. Importantly, the new statute also imposes similar reporting requirements on insurers of contractors. SB 1465 also addresses an impacted party’s failure to comply with the reporting requirements.

COMMENT

Both SB 721 and SB 1465 are potentially significant and seek “legislative reform” to address construction issues by placing a greater burden on apartment owners as well as builders and subcontractors. How pragmatic and what impact they will have on the industry is obviously developing. If you are interested in receiving further detail concerning the Bills, please contact us. We are analyzing the new legislation and its intent and will be providing our ongoing comments.

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Reprinted courtesy of RICHARD H. GLUCKSMAN, ESQ. CHELSEA L. ZWART, ESQ., CGDRB
Chelsea L. Zwart may be contacted at czwart@cgdrblaw.com

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Arizona Supreme Court Upholds Constitutionality of Provision Relating to Statutory Authority for Constructing and Operating Sports and Tourism Complexes

June 18, 2019 — Amanda Z. Weaver - Snell & Wilmer
In an opinion published February 25, 2019, the Arizona Supreme Court held that Maricopa County’s surcharge on car rental agencies to fund a stadium and other sports- and tourism-related projects did not violate either the dormant Commerce Clause of the United States Constitution or the anti-diversion provision of the Arizona Constitution, art. 9, § 14. Saban Rent-a-Car LLC v. Ariz. Dep’t of Revenue. In 2000, the Arizona Legislature created the Arizona Tourism and Sports Authority (the Authority) to build and/or operate a variety of sports-related facilities, including Major League Baseball spring training facilities, and youth and amateur sports and recreation centers. Taxes and surcharges, approved by voters, are the sole funding for the Authority’s construction projects, including the challenged surcharge in Maricopa County. This surcharge is based on the income from car rental companies leasing vehicles to customers for less than one year, and is the greater of $2.50 per rental or 3.25% of the company’s gross proceeds or income. A.R.S. § 5-839. The state treasurer deposits $2.50 per rental transaction into the Maricopa County Stadium District, as it has since 1991, and the remaining amount of the difference between $2.50 per transaction and 3.25% of the company’s gross income or proceeds is distributed to the Authority. Rental car companies often pass this surcharge on to their customers. Read the court decision
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Reprinted courtesy of Amanda Z. Weaver, Snell & Wilmer
Ms. Weaver may be contacted at aweaver@swlaw.com

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Preliminary Notices: Common Avoidable But Fatal Mistakes

August 26, 2019 — William L. Porter - Porter Law Group
In the California building and construction industry, service of a “Preliminary Notice” is a prerequisite for Subcontractor and Supplier claims for payment through the Mechanics Lien, Stop Payment Notice and Payment Bond Claim process. Without proper drafting and service of a Preliminary Notice, these extremely valuable claims cannot be protected. Unfortunately, despite the vital importance of the Preliminary Notice, Subcontractors and Suppliers often make common self-defeating mistakes that make their Preliminary Notice efforts completely ineffective, resulting in loss of their claims rights. The purpose of this article is to list some of these common mistakes in the hope that the reader will avoid such mistakes, preserve the integrity of the Preliminary Notice, and protect the claims rights it makes available: Not Sending out the Preliminary Notice Within 20 Days After Supplying Labor or Materials: The protection of a Preliminary Notice begins 20 days before it sent out. This means that if a Subcontractor or Supplier claimant delivered $100,000 in materials on February 1, that same claimant must serve the Preliminary Notice on or before February 21 (the sooner the better), or the claimant will not be able to pursue an enforceable Mechanics Lien, Stop Payment Notice or Payment Bond claim for that $100,000. There are very few exceptions. Best practice: A Subcontractor or Supplier must send out the Preliminary Notice as soon as an agreement to provide work or materials to a California construction project is in place (See California Civil Code 8204). Read the court decision
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Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

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Home Prices in 20 U.S. Cities Increased 5% in Year to June

August 26, 2015 — Michelle Jamrisko – Bloomberg
Home prices in 20 U.S. cities climbed 5 percent in June from the same month a year earlier, a sign of more progress in the housing market. The increase in the S&P/Case-Shiller index of property values matched the year-over-year gains in the prior three months, the group said Tuesday in New York. The median estimate of economists surveyed by Bloomberg called for a 5.1 percent year-over-year advance. Nationally, prices rose 4.5 percent. Read the court decision
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Reprinted courtesy of Michelle Jamrisko, Bloomberg

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BWB&O ranks as a 2025 Best Law Firm by Best Lawyers®

December 10, 2024 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Bremer Whyte Brown & O’Meara, LLP is honored to announce the firm has been recognized for its fifth consecutive year in the 2025 edition of Best Law Firms® and is ranked by Best Lawyers® regionally in three practice areas. To read the publication, please click here. Metropolitan Tier 1 Las Vegas: Litigation – Construction Orange County: Litigation – Construction Metropolitan Tier 2 Orange County: Family Law San Diego: Litigation – Real Estate Read the court decision
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Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

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After Fatal House Explosion, Colorado Seeks New Pipeline Regulations

May 10, 2017 — Mark Shaw - Engineering News-Record
Colorado Gov. John Hickenlooper (D) has ordered comprehensive inspections, along with new monitoring and testing procedures, for all oil and gas pipelines located near houses and other buildings across the state. The action follows an April gas explosion in a northern Colorado home that killed two people. Read the court decision
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Reprinted courtesy of Mark Shaw, ENR
Mr. Shaw may be contacted at shawm@enr.com

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Repairs to Water Infrastructure Underway After Hurricane Helene

October 07, 2024 — Derek Lacey - Engineering News-Record
As transportation officials in Tennessee and North Carolina brace for long rebuilds of heavily damaged interstates in remote and rugged areas of the Appalachian Mountains, local agencies are also at work restoring water and sewer services to residents nearly one week after Hurricane Helene made landfall. Reprinted courtesy of Derek Lacey, Engineering News-Record Mr. Lacey may be contacted at laceyd@enr.com Read the full story... Read the court decision
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California Supreme Court Protects California Policyholders for Intentional Acts of Employees

July 02, 2018 — William S. Bennett – Saxe Doernberger & Vita P.C.
Recently, the California Supreme Court ruled that liability insurers are obligated to cover negligent supervision, hiring, and retention claims against employers resulting from the intentional acts of their employees. The case, Liberty Surplus Insurance v. Ledesma & Meyer Construction, case no. S236765 (2018), involved an insurance coverage dispute between a construction company, Ledesma & Meyer Construction (“L&M”), and its insurers, Liberty Insurance Underwriters, Inc. (“Liberty”) and Liberty Surplus Insurance Corp (“Liberty Surplus”). Liberty was L&M’s primary insurer, while Liberty Surplus had the excess policy. L&M had contracted with the San Bernardino Unified School District to renovate a school building while the school was still in session. In a separate action, another court found that an L&M employee sexually assaulted a 13-year-old student while working at the project. Read the court decision
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Reprinted courtesy of William S. Bennett, Saxe Doernberger & Vita P.C.
Mr. Bennett may be contacted at wsb@sdvlaw.com

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