UPDATE - August 29, 2014
Our BOMA California partners have been working diligently the last few days to defeat this bill and you can still help. Indeed, your help is essential to stopping this measure from passing. If you would reach out to your local elected officials in the California State Legislature and those listed below, it would be appreciated.
Recent amendments to AB 2416 have not been shared with the business community and do not address BOMA's main issue with the bill: the measure would continue to provide for pre-judgment liens, meaning that liens can still be erroneously recorded on properties belonging to homeowners or non-culpable third-parties. Erroneous or fraudulent liens can impact credit reports and property transactions.
This request is time critical. Ask them to VOTE NO on AB 2416.
California State Senators to call after you reach out to your local elected Senator:
Jim Beall - (916) 651-4015
Marty Block - (916) 651-4039
Kathleen Galgiani - (916) 651-4005
Ted Lieu - (916) 651-4028
Carol Liu - (916) 651-4025
Alex Padilla - (916) 651-4020
Fran Pavley - (916) 651-4027
Richard Roth - (916) 651-4031
Norma Torres - (916) 651-4032
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BOMA San Francisco Members:
If you've had a moment to contact your local legislators to voice opposition to AB 2416, thank you. Your efforts have been effective, i.e., slowing the progress of the measure in Sacramento and forcing it to be amended two times since our last communication. Even with your earnest feedback to your California State Legislators, the amendments do not address the concerns as detailed in our July 29, 2014 post, below.
As such, please reach out again to your local elected officials in the California State Legislature to let them know that the recent changes to the bill do not go far enough.
AMENDMENTS: The bill was amended recently to remove property services from the third party liability section. However, this amendment is immaterial as (1) Section 3010 (a)(2) of the bill covers any services performed by an employee for the property owner. While the last sentence of this section states that it does not apply to services performed for a household or residence, it will cover property services performed on a commercial or industrial building. Additionally, as with the other third party carve outs there is no way the county recorder’s office is going to be able to make the determination as to whether the services performed were for a household or residence when the employee files the notice.
To reiterate, this bill still allows innocent property owners to get dragged into wage disputes they have nothing to do with.
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There are currently two bills in the California State Legislature that could pull your business into disputes that do not have any association with the commercial real estate industry. BOMA California, of which BOMA San Francisco is a member, is asking that BOMA members focus on the first of two bills, below, AB 2416, and contact California State Legislators from your area to help deter the measure's passage.
BOMA California is also providing information on a related bill, AB 1897, also below, as a corollary; it may come up in your conversations with legislators' office staff members.
AB 2416 (Stone; D-Scotts Valley) Unproven Wage Liens. This bill creates a precarious and unbalanced precedent in the wage and hour debate by allowing employees to file liens on an employer’s real or personal property, or property where work was performed, based upon alleged yet unproven wage claims.
AB 1897 (Hernandez; D-West Covina) Labor Contracting; Client Liability. This measure would oblige one company to essentially insure the wage and hour obligations, workers’ compensation coverage, and occupational health and safety duties of a separate employer’s employees, which will discourage the use of contractors and their employees.
Both bills will be considered when the California State Legislature returns from their recess on August 4th. First in the California State Senate and, if both bills pass, then in the California State Assembly for concurrence.
BOMA California opposes both bills and is strongly urging all BOMA members statewide to get engaged locally on these measures.
To help you communicate with legislators, please find the following:
- A summary of AB 2416;
- An example letter;
- Lien comparison chart.
- Proponents of this bill want to argue that this lien is just like the Mechanics Lien. It is not. This chart helps you know the differences, and explains why the pre-judgmental lien in the bill is bad for your property.
The first priority is to contact your State Senators and ask that they oppose AB 2416 on the Senate Floor. The second priority is to contact your State Assemblymembers and ask that they oppose AB 2416 if it moves back over to the State Assembly for concurrence.
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