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AB-919 Construction defects: actions: statute of limitations.(2021-2022)

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Date Published: 04/13/2021 09:00 PM
AB919:v98#DOCUMENT

Amended  IN  Assembly  April 13, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 919


Introduced by Assembly Member Grayson

February 17, 2021


An act to amend Section 941 of the Civil Code, relating to construction defects.


LEGISLATIVE COUNSEL'S DIGEST


AB 919, as amended, Grayson. Construction defects: actions: statute of limitations.
Existing law specifies the requirements for actions for construction defects. Existing law includes a statute of limitations that, except as specified, prohibits an action from being brought to recover under these provisions more than 10 years after substantial completion of the improvement but no later than the date the notice of completion is recorded.
This bill, notwithstanding that 10-year limitation period, would shorten the timeframe in which an action specified actions against a nonprofit housing corporation, as defined, may be brought, brought for underlying construction projects projects, as defined, using a certified skilled and trained workforce, as defined, to no more than 5 years after substantial completion of the improvement but no later than the date the notice of completion is recorded.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 941 of the Civil Code is amended to read:

941.
 (a) (1) Except as specifically set forth in this title, no action may shall be brought to recover under this title more than 10 years after substantial completion of the improvement but not later than the date of recordation of a valid notice of completion.
(2) (A) Notwithstanding the 10-year limitation in paragraph (1), and subject to subparagraphs (B) and (C), if the underlying construction project on which the action is based used a “skilled certified skilled and trained workforce”, workforce, then the action to recover under this title may shall be brought no more than five years after substantial completion of the improvement but not later than the date of recordation of a valid notice of completion.
(B) A skilled and trained workforce is certified for purposes of subparagraph (A) if all of the following apply:
(i) If either of the following conditions were satisfied:
(I) All contractors and subcontractors performing work on the underlying construction project were subject to a project labor agreement that required compliance with the skilled and trained workforce requirement and provided for enforcement of that obligation through an arbitration procedure.
(II) The developer provided, on a monthly basis while the underlying construction project or contract for the underlying construction project was being performed, a report demonstrating compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code to the public entity, or other body awarding work on the project, that ensured the developer’s compliance with the skilled and trained workforce requirements.
(ii) The developer for the underlying construction project required in all contracts for the performance of work on the underlying construction project that every contractor and subcontractor at every tier will individually use a skilled and trained workforce to construct the underlying construction project.
(iii) Every contractor and subcontractor on the underlying construction project actually used a skilled and trained workforce to construct the underlying construction project.
(C) This paragraph shall only apply to actions that meet both of the following conditions:
(i) The action is not for the recovery of damages related to major structural or systemic defects.
(ii) The action is against a nonprofit housing corporation.
(D) For purposes of this paragraph, the following definitions apply:
(i) “Nonprofit housing corporation” means a nonprofit housing corporation organized pursuant to Section 501(c)(3) of the Internal Revenue Code.
(ii) “Project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.

(B)

(iii) As used in this paragraph, “skilled “Skilled and trained workforce” has the same meaning as set forth in Section 2601 provided in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.
(iv) “Underlying construction project” refers to a project for the construction of or on an attached, single-family dwelling, such as a townhome or a condominium.
(b) As used in this section, “action” includes an action for indemnity brought against a person arising out of that person’s performance or furnishing of services or materials referred to in this title, except that a cross-complaint for indemnity may be filed pursuant to subdivision (b) of Section 428.10 of the Code of Civil Procedure in an action which has been brought within the time period set forth in subdivision (a).
(c) The limitation prescribed by this section may not be asserted by way of defense by any person in actual possession or the control, as owner, tenant or otherwise, of such an improvement, at the time any deficiency in the improvement constitutes the proximate cause for which it is proposed to make a claim or bring an action.
(d) Sections 337.15 and 337.1 of the Code of Civil Procedure do not apply to actions under this title.
(e) Existing statutory and decisional law regarding tolling of the statute of limitations shall apply to the time periods for filing an action or making a claim under this title, except that repairs made pursuant to Chapter 4 (commencing with Section 910), with the exception of the tolling provision contained in Section 927, do not extend the period for filing an action, or restart the time limitations contained in subdivision (a) or (b) of Section 7091 of the Business and Professions Code. If a builder arranges for a contractor to perform a repair pursuant to Chapter 4 (commencing with Section 910), as to the builder the time period for calculating the statute of limitation in subdivision (a) or (b) of Section 7091 of the Business and Professions Code shall pertain to the substantial completion of the original construction and not to the date of repairs under this title. The time limitations established by this title do not apply to any action by a claimant for a contract or express contractual provision. Causes of action and damages to which this chapter does not apply are not limited by this section.