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2009 ... That Was the Year That
Wasn’t
We all recognize and perhaps
feel the pain of this last year. It was a lousy year
indeed.
That goes for the Legislature as well. Our AB 1119 on
prompt pay was held in committee, SB 802 capping
retentions at 5% in public works was vetoed, and no
major advances came forward to help the construction
industry, particularly subcontractors. At least the CA
Air Resources Board just delayed the diesel regulations
due to the bad economy and the impossibility for many
companies to change out or modify their old engines.
So, it’s only going to get better in 2010. It’s the
second half of this legislative session and bills will
be introduced before February ends. I expect to see our
SB 629 which caps retention in all private works move
ahead, as well as our AB 1119. I also expect to see
bills which revamp all the mechanic lien laws, as well
as lis pendens actions, stop notice
procedures and challenges, and maybe a bill on ... well,
who knows... we call ‘em as we see ‘em introduced.
And, we know that WRAP insurance is in the legislative
crosshairs. We know that it’s inadequate in terms of
coverage and is not cost-effective. I think it’s a sham
that we’re ‘forced’ to carry. Kinda like the bank and
lenders’ scheme foisted on home buyers in the last 5
years. “Gotta have it! Just don’t read the fine print.”
So, we come to the government to help us... or bail us
out... uhhh, yeah well, we really do! In fact, during
Republican administrations more legislation along these
lines has been passed than during Democratic
administrations.
2010 is also an election year, so don’t expect miracles
since legislators don’t want to alienate major lobbying
groups. Plus, we now have a new Assembly Speaker which
means committee chairs may change; that effects what we
do and how we do it here in the capitol.
So, here’s an opening you can pass through to help out.
See your Assembly Member and Senator in his/her district
office. Let them see your pain. Tell them to represent
you in order to help rebuild California. Several of you
have already done so, using the hand outs we provided.
Contact Jordi for a packet: 888-310-2722 OR
asac@asacalif.com
On January 7 ASAC is convening another Construction
Industry Round Table where various industry lobbyists
and association leaders reveal and discuss what measures
they intend to pursue. It’s a proactive, professional
and informal gathering aimed at collaboration. I hope it
sets the tone for the year
Skip Daum
Legislative Advocate -- American Subcontractors
Association of California Sacramento, CA (916) 791- 6613
FAIRNESS TO SUBCONTRACTORS CONTRIBUTORS:
These
supporters already came through for ASAC! Thank you to:
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GOLD |
OTHERS |
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American Fence Association - California
Chapter |
Ahlborn Fence & Steel Inc. |
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Columbia Steel Inc. |
Collins Electrical Company |
| Drywall Information Trust
Fund |
Diversified Window Coverings Inc. |
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NCPFC/NCGMA |
Industrial Masonry Inc. |
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Pavement Recycling Systems Inc. |
Kamine Collings & Phelps |
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San Joaquin Steel Company Inc. |
Lawson Mechanical Contractors Inc. |
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Sierra Woodworking Inc. |
Performance Contracting Inc. |
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Strocal
Inc. & Long Properties |
R B Construction Inc. |
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BRONZE |
South Coast Industrial Door Inc. |
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American
Sheet Metal |
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Area West
Fence Company Inc. |
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Audio
Associates of San Diego |
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Case Pacific Company |
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Caston Plastering & Drywall Inc. |
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Montgomery Hardware |
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North Bay Drywall & Plastering Inc. |
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River City Glass Inc. |
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RPW/United Agencies |
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Sierra
Lathing Company Inc. |
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Washington Iron Works |
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As you can
imagine, running bills in the California Legislature and
defending your subcontractor rights is a costly
undertaking. ASAC asks that you contribute what you are
able to this effort. The 2009 legislative year has
begun. Our efforts have begun. Your support is needed
now. Please write your check today. For
more information and a
CONTRIBUTION FORM
Please Click on the link.
NEW
MECHANIC’S LIEN
FORM TO CHANGE EFFECTIVE JANUARY 2011
On
behalf of various subcontractor associations and groups,
the Law Offices of Abdulaziz, Grossbart & Rudman have
been participating in the law-making process, both
before the Legislature and the California Law Revision
Commission, concerning certain overhauls of the
mechanic’s liens laws. While the California Law Revision
Commission had been working on a global change to all of
the mechanic’s lien, stop notice, and payment bond
statutes, there have been some interim changes that have
been enacted into law.
To read the full article, GO
HERE!
By Bruce D. Rudman,
Abdulaziz, Grossbart & Rudman
Bruce D. Rudman can be reached at Abdulaziz, Grossbart &
Rudman, P.O. Box 15458, North Hollywood, CA 91615-5458;
(818) 760-2000, Facsimile (818) 760-3908; or by E-Mail
at info@agrlaw.net
On the Internet, visit our Website at
www.agrlaw.net
NEW
THE EPA’S NEW LEAD RENOVATION, REPAIR AND
PAINTING RULE By Santiago Concepcion National Econ
Corporation
On April 22, 2010, a new federal
regulation will be completely implemented. I’m talking
specifically about the U.S. Environmental Protection
Agency’s Lead Renovation, Repair & Painting rule (40 CFR
745). One shouldn’t be fooled by the “generic” title of
this regulation because it covers more than just
renovation, repair & painting. The new rule applies to
every trade where lead based paint is disturbed.
Carpenters, plumbers, wall covering contractors,
electrical contractors, finish carpentry contractors,
insulation contractors, tile & terrazzo contractors,
glass and glazing contractors, handymen and many other
trades, must comply with these new requirements. As a
certified lead professional, I know that lead exposure
can be caused by almost any disturbance of lead based
paint, not just renovation, repair or painting. Even the
most basic, seemingly benign disturbances of lead
painted or glazed surfaces can
cause lead exposures if the conditions are right.
Click here to
read this article
NEW IMPROPER
POST-AWARD CONTRACT PRICE NEGOTIATIONS UNDER THREAT OF
“TERMINATION FOR CONVENIENCE” By Daniel F. McLennon
McLennon Law Corp.
(PART 1, PRIVATE WORKS)
In this tough economic climate, with contractors vying
for the little construction work available and driving
down construction costs, owners have been tempted to
threaten “termination for convenience” to force
contractors to “renegotiate” the contract price after
the contract has been entered, and even after
construction has started. Some owners have succumbed to
this temptation and extracted price concessions from
contractors. Is this practice legal in California, or
does it expose the owner (or general contractor who
obtains concessions from subcontractors) to liability
for damages?......Click
here to read more.
NEW
REFERRAL FEE$$$$$$$$$$ By Sam K. Abdulaziz,
Abdulaziz, Grossbart & Rudman
Harry Moos, Executive Vice President of Plumbing Heating
and Cooling Contractors of California, (PHCC) contacted
me concerning referral fees and the concerns of other
contractors. We are told that legitimate contractors are
being bombarded by others as a result of perceived
illegal actions.
Business and Professions Code Section 7157 deals with
compensation or reward for referral sales. It also sets
out some exceptions. The following is a shortened
statement of the law:
Except as otherwise provided in subdivision (b),
inducing something or someone to induce another to enter
into any home improvement contract, or other contract,
which may be performed by a contractor, no person may
promise or offer to pay, credit, or allow to any owner,
compensation or reward for the procurement or placing of
home improvement business with others.
A contractor or his or her agent or salesperson may give
tangible items to prospective customers for advertising
or sales promotion purposes where the gift is not
conditioned upon obtaining a contract for home
improvement work if the gift does not exceed a value of
five dollars ($5) and only one such gift is given in
connection with any one transaction.
No salesperson or contractor’s agent may accept any
compensation of any kind, for or on account of a home
improvement transaction, or any other transaction
involving a work of improvement, from any person other
than the contractor whom he or she represents with
respect to the transaction, nor shall the salesperson or
agent make any payment to any person other than his or
her employer on account of the sales transaction.
No contractor shall pay, credit, or allow any
consideration or compensation of any kind to any other
contractor or salesperson other than a licensee for or
on account of the performance of any work of improvement
or services, including, but not limited to, home
improvement work or services, except: (1) where the
person to or from whom the consideration is to be paid
is not subject to or is exempted from the licensing
requirements of this chapter, or (2) where
the transaction is not subject to the requirements of
the chapter.
Commission of any such act is a misdemeanor and
constitutes a cause for disciplinary action.
Attorney Sam Abdulaziz of
Abdulaziz, Grossbart & Rudman
can be reached at Abdulaziz, Grossbart &
Rudman, P.O. Box 15458, North Hollywood, CA 91615-5458;
(818) 760-2000, Facsimile (818) 760-3908; or by E-Mail
at info@agrlaw.net
On the Internet, visit our Website at
www.agrlaw.net
SAVE THE DATE:
ASA BUSINESS FORUM AND CONVENTION 2010 IN SAN DIEGO,
CALIFORNIA
The ASA Business Forum & Convention 2010 will take place
March 4-6, 2010, at the San Diego Marriott La Jolla in
San Diego, Calif. This annual event will offer dozens of
education sessions, multiple networking opportunities
and FASA’s annual golf outing. Register by Feb. 2 and
ASA will discount your registration fees to $775 for
members and $950 for non-members. ASA members will pay
$875 and non-members will pay $1,050 for registrations
received after Feb.
2. As an added bonus, receive a $75 discount for each
additional person who registers from your company. Space
is limited and will fill quickly. ASA convention
participants will also receive a special hotel rate of
$179 per night by making reservations before Feb. 2.
Call (888) 236-2427 and mention ASA to take advantage of
the reduced room block rate. To access a printable
registration form, click “Register for a Meeting” on the
ASA home page (www.asaonline.com), or call ASA at (703)
684-3450, Ext. 1304.
Attend
ASA California Meetings -- They're open to members.
Meetings for 2010 will be:
January 21, 2010 -- Sacramento California
9:30-3:30pm Governors Inn Hotel, Sacramento,
CA. |
March 18, 2010 – Sacramento California |
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Day at the Capitol – April 21, 2010 –
Sacramento California |
Call 888-310-2722 for Details.
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Notes on the ASAC Website Layout:
The American Subcontractors Association of California
(ASAC) website is divided into the sections covering
ASAC's strengths as an association. We have our
Legislative Advocacy
program tracking and developing the new construction
laws in Sacramento. The ASAC, also, is very fortunate to
have a Judicial Advocacy
program run by the finest construction attorneys up and
down California to follow and try the latest
construction cases in California's courts. And, lastly,
ASAC has an expanding Member
Benefits program from insurance offerings, to the
website which has been developed to help keep
subcontractors and suppliers informed of the latest
construction issues affecting their daily business. |
