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October 04th, 2016/By Admin/In Blog, Real Estate and Construction Law

In June of 2015, six students died and seven others were seriously injured when a balcony collapsed during a birthday party in Berkeley, California.   Following the accident, investigators determined that the balcony had extensive dry rot damage caused by trapped water intrusion, and that the developer of the complex had a history of construction defect pay-outs.

On September 15, 2016, Governor Jerry Brown signed SB 465 into law which provides the public with additional construction defect protection.  This new law which takes effect on January 1, 2017 contains several important provisions:

  • The California Department of Industrial Relations and the Division of Occupational Safety and Health is required to provide the Contractors State License Board (“CSLB”) with information about any action taken against California licensed contractors.
  • California licensed contractors must report to the CSLB any felony conviction or other crime substantially related to their qualifications, functions, and duties within 90 days.
  • The CSLB is authorized to enter into agreements with other state and local agencies to receive information about actions taken by those agencies against California licensed contractors.
  • By January 1, 2018, the CSLB will provide the California Legislature with the results of a study of judgments, arbitration awards and settlements of construction defect claims at rental residential units which outlines whether requiring licensees to report such matters will also provide better public protection.
  • By January 1, 2018, the California Building Standards Commission will provide the California Legislature with the results of a study on recent failures of elevated elements on building exteriors to determine whether changes to the California Building Standards Code is necessary.

This Legislative Update has been brought to you by Firm Partner Robert M. Freedman, Chair of Tharpe & Howell’s Real Estate and Construction Law Practice Group.  Should you have any questions or comments about the information presented, please feel free to contact Mr. Freedman direct at telephone number (818) 205-9955; or via email to rmfreedman@tharpe-howell.com.  [This Legislative Update is for informational purposes only and does not constitute legal advice. Do not act or rely upon any of the resources and information contained herein without seeking appropriate professional assistance.]

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