Senate Bill 7 seeks to close the loophole which has allowed California's 121 charter cities to remain exempt from California's prevailing wage regulations.  The bill, largely viewed as a win for local contractors and the local labor force, has found opposition with municipalities' political representatives, who view the Bill as a further increase of the state's hold over the local government.  

_____________________________________________________________________________

Arbitration awards under Bus. & Prof. Code section 7031 are subject to a de novo review by a trial court.  

The Rice Solar Energy Project located in Blythe in eastern Riverside County, is the first large-scale solar project in California to include energy storage capabilities.  The Project represents $750 million in direct investment into the state and the generation of 5,300 jobs over the course of the Project's 24-month California construction.  

The California Contractor State Licensing Board (CSLB) formed the Joint Enforcement Strike Force's (JESF) Construction Enforcement Project (CEP) to capitalize on multi-agency partnerships in a coordinated effort to enforce wage and licensure laws for contractors.  The results have been staggering so far: 411 audit referrals for an estimated $48,553,626 in unreported wages; $25,832,017 in EDD and Franchise Tax Board outstanding tax and civil liability suspension amounts with $10,815,762 in penalties recovered; $17, 705, 752 in EDD tax and civil liability suspensions with $6,626, 208 in recovered tax liability; and additional license liability suspensions by the Department of Industrial Relations totaling $1,972,328 with $1,835,869 in penalties recovered. 

In Tri-State, Inc. v. Long Beach Community College District, the California Court of Appeals held that Civil Code section 3186 does not authorize an attorneys fees award in favor of a public entity against a stop notice claimant.  

A new California labor code provision subjects California employers and those who provide advise to the employer to Labor Code penalties if employees are misclassified as independent contractors.  

Guest post by Danielle Rodabaugh, a writer at suretybonds.com

Even though contractors know they need to file surety bonds before they can begin work on many projects, they might still be confused about the potential legal implications that can be involved with the process.

The 90-day period for foreclosing on a mechanics lien under Civil Code § 3144 is tolled during the pendency of bankruptcy proceedings, pursuant to 11 U.S.C. § 108(c). 

In Pioneer Construction, Inc. v. Global Investment, Inc. et al. (December 21, 2011) Ca. 2nd. Dist. Ct. App. B225685, a construction company filed for foreclosure of mechanic's liens against defendants' property subsequent to defendants' purchase of the property at a trustee's sale during the prior owner's bankruptcy proceedings.  

There is a legal distinction between the contractual duty to defend and the duty to indemnify in a construction services contract between a developer and a contractor.  

LLCs will finally have the ability to become licensed contractors in the state of California in 2012.  

Prior to 2012, LLCs were not permitted to hold California contractor's licenses.  However, beginning on January 1, 2012, that is about to change.  Beginning earlier this year, the Contractors State License Board (CSLB).  began processing license applications from LLCs for contractor's licenses.  Although the CSLB is not currently issuing LLC contractor licenses, it is expected to do so in 2012, as SB 392 becomes law and LLCs are lawfully permitted to hold California contractor licenses.