AB1903 - Construction defects.

Amended IN Senate August 21, 2026 Amended IN Senate August 04, 2026 Amended IN Senate June 11, 2026 Amended IN Assembly May 18, 2026 Amended IN Assembly April 23, 2026 Amended IN Assembly March 19, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 1903 Introduced by Assembly Members Wicks and Wilson (Principal coauthor: Senator Becker) (Coauthors: Assembly Members Harabedian, Irwin, Schultz, and Ward) February 12, 2026 An act to amend Sections 895, 896, 897, 910, 930, and 942 of, to add Sections 898, 942.2, 945.1, and 945.2 and 945.6 to, to add Chapter 6 (commencing with Section 945.9) to Title 7 of Part 2 of Division 2 of, and to repeal and add Section 926 of, the Civil Code, relating to construction defects. LEGISLATIVE COUNSEL'S DIGEST AB 1903, as amended, Wicks. Construction defects. Existing law specifies the rights and requirements of a claimant or homeowner to bring a civil action for construction defects of a dwelling, including applicable standards for home construction, detailed prelitigation procedures, statute of limitations, burden of proof, and the damages recoverable. Existing law provides that, to the extent the function or component of a structure is not addressed by the applicable standards, a function or component of a structure shall be actionable, if it causes damage. Existing law specifies the rights and prohibitions for a builder to defend against a civil action for construction defects, including a prohibition against a builder obtaining a release or waiver in exchange for repair work mandated by law. Existing law defines various terms for these purposes. This bill would bill, among other things, would revise the applicable standards with respect to water issues, structural issues, soil issues, and fire protection issues, as prescribed. The bill would, instead, provide that, to the extent the function or component of a structure is not addressed by the applicable standards, a function or component of a structure shall be actionable, if it causes damage to another component part. The bill would specify circumstances that are not a violation of the applicable standards. The bill would modify specific rights, requirements, and prohibitions for the parties to a civil action for construction defects of a dwelling by revising, among other things, the requirements for a prelitigation notice from the claimant to the builder and the evidence a claimant is required to affirmatively demonstrate to make a claim. The bill would prohibit the recovery of investigative costs, except as specified. The Among other changes, the bill would repeal the prohibition on, and instead and, instead, authorize, a builder to obtain a release or waiver in exchange for certain repair work, as specified. The Commencing July 1, 2027, the bill would prohibit an insurer from asserting repairs as a voluntary payment or as a payment made without the insurer’s consent, or denying counting the costs associated with those repairs, against a deductible or self-insured retention. The bill would provide that its provisions apply to a structures subject to the provisions governing the rights of a claimant or homeowner to bring a civil action for construction defects of a dwelling, except as provided. The bill would further provide that its provisions are severable. The bill would additionally revise various definitions and define additional terms. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 895 of the Civil Code is amended to read: 895. (a) “Structure” means any residential dwelling, other building, or improvement located upon a lot or within a common area. (b) “Designed moisture barrier” means an installed moisture barrier specified in the plans and specifications, contract documents, or manufacturer’s recommendations. (c) “Actual moisture barrier” means any component or material, actually installed, that serves to any degree as a barrier against moisture, whether or not intended as a barrier against moisture. (b) “Moisture barrier” means a discrete building component or material whose primary purpose is preventing water intrusion into the building enclosure. The term does not include components whose primary function is structural, aesthetic, or incidental to moisture management, such as interior or exterior finishes, including but not limited to stucco, cladding, siding materials, roof tiles, roof shingles, or other exterior weather proofing finish elements. (d) (c) “Unintended water” means water that passes beyond, around, or through a component or the material the final moisture barrier that is designed to prevent that passage. (d) “Living space” means the interior of a residence intended for ordinary human occupancy, measured inward from the exposed interior surfaces of the finished walls, floors, and ceilings enclosing that space. Living space includes the airspace and ordinarily accessible interior surfaces of bedrooms, bathrooms, kitchens, living areas, hallways, closets, and similar finished areas. It does not include any wall, floor, ceiling, roof, or foundation assembly; any cavity within such an assembly; or any attic, crawlspace, or other area not intended for ordinary human occupancy. (e) “Nonhabitable space” means every enclosed portion of a building that is not an interior living space, on the internal side of the final moisture barrier. Nonhabitable space includes walls, floors, ceilings, roof framing, foundations, and their assemblies and cavities; attics; crawlspaces; and other areas not intended for ordinary human occupancy. (f) “Actionable water intrusion” means either of the following: (1) Unintended water intrusion into a living space. (2) Unintended water intrusion beyond the final moisture barrier into a nonhabitable space that causes actual damage. Water that does not pass beyond the final moisture barrier is not actionable. (e) (g) “Close of escrow” means the date of the close of escrow between the builder and the original homeowner. With respect to claims by an association, as defined in Section 4080, “close of escrow” means the date of substantial completion, as defined in Section 337.15 of the Code of Civil Procedure, or the date the builder relinquishes control over the association’s ability to decide whether to initiate a claim under this title, whichever is later. (f) (h) “Claimant” or “homeowner” includes the individual owners of single-family homes, individual unit owners of attached dwellings and, in the case of a common interest development, any association as defined in Section 4080. SEC. 2. Section 896 of the Civil Code is amended to read: 896. In any action seeking recovery of damages arising out of, or related to deficiencies in, the residential construction, design, specifications, surveying, planning, supervision, testing, or observation of construction, a builder, and to the extent set forth in Chapter 4 (commencing with Section 910), a general contractor, subcontractor, material supplier, individual product manufacturer, or design professional, shall, except as specifically set forth in this title, be liable for, and the claimant’s claims or causes of action shall be limited to violation of, the following standards, except as specifically set forth in this title. This title applies to original construction intended to be sold as an individual dwelling unit. As to condominium conversions, this title does not apply to or does not supersede any other statutory or common law. (a) With respect to water issues: (1) A door shall not allow unintended water to pass beyond, around, or through the door or its designed or actual moisture barriers, if any. any, and cause actionable water intrusion. (2) Windows, patio doors, doors and deck doors, and their systems doors shall not allow unintended water to pass beyond, around, or through the window, patio door, or deck door or its designed or actual moisture barriers, including, without limitation, internal barriers within the systems themselves. For purposes of this paragraph, “systems” include, without limitation, windows, window assemblies, framing, substrate, flashings, and trim, if any. barriers, and cause actionable water intrusion. (3) Windows, patio doors, deck doors, and their systems moisture barriers shall not allow excessive condensation to enter the structure and cause damage to another component. For purposes of this paragraph, “systems” include, without limitation, windows, window assemblies, framing, substrate, flashings, and trim, if any. (4) Roofs, roofing systems, chimney caps, and ventilation components shall not allow unintended water to enter the structure or to pass beyond, around, or through the designed or actual moisture barriers, including, without limitation, internal barriers located within the systems themselves. For purposes of this paragraph, “systems” include, without limitation, framing, substrate, and sheathing, if any. and cause actionable water intrusion. (5) Decks, deck systems, balconies, balcony systems, exterior stairs, and stair systems shall not allow unintended water to pass into the adjacent structure. For purposes of this paragraph, “systems” include, without limitation, framing, substrate, flashing, and sheathing, if any. (6) Decks, deck systems, balconies, balcony systems, exterior stairs, and stair systems shall not allow unintended water to pass within the systems themselves and cause damage to the systems. For purposes of this paragraph, “systems” include, without limitation, framing, substrate, flashing, and sheathing, if any. (7) Foundation systems and slabs shall not allow water or vapor to enter into the structure so as to cause damage to another building component. (8) Foundation systems and slabs shall not allow water or vapor to enter into the structure so as to limit the installation of the type of flooring materials typically used for the particular application. (9) (8) Hardscape, including paths and patios, irrigation systems, landscaping systems, and drainage systems, that are installed as part of the original construction, shall not be installed in such a way as to cause water or soil erosion to enter into or come in contact with the structure so as to cause damage to another building component. (10) (9) Stucco, exterior siding, exterior walls, including, without limitation, exterior framing, and other exterior wall finishes and fixtures and the systems of those components and fixtures, including, but not limited to, pot shelves, horizontal surfaces, columns, and plant-ons, shall be installed in such a way so as not to allow unintended water to pass through moisture barriers into the structure or to pass beyond, around, or through the designed or actual moisture barriers of the system, including any internal barriers located within the system itself. For purposes of this paragraph, “systems” include, without limitation, framing, substrate, flashings, trim, wall assemblies, and internal wall cavities, if any. and cause actionable water intrusion. (11) (10) Stucco, exterior siding, and exterior walls shall not allow excessive condensation to enter the structure and cause damage to another component. For purposes of this paragraph, “systems” include, without limitation, framing, substrate, flashings, trim, wall assemblies, and internal wall cavities, if any. (12) (11) Retaining and site walls and their associated drainage systems shall not allow unintended water to pass beyond, around, or through its designed or actual moisture barriers including, without limitation, any internal moisture barriers, so as to cause damage. damage to another component. This standard does not apply to those portions of any wall or drainage system that are designed intended to have water flow beyond, around, or through them. (13) Retaining walls and site walls, and their associated drainage systems, shall only allow water to flow beyond, around, or through the areas designated by design. (14) (12) The lines and components of the plumbing system, sewer system, and utility systems shall not leak. leak so as to cause actionable water intrusion. (15) (13) Plumbing lines, sewer lines, and utility lines shall not corrode so as to impede the useful life of the systems. cause actionable water intrusion. (16) (14) Sewer systems shall be installed in such a way as to allow the designated amount of sewage to flow through the system. (17) (15) Showers, baths, and related waterproofing systems shall not leak so as to allow unintended water into the interior of walls, flooring systems, or the interior of other components. components and cause actionable water intrusion. (18) (16) The waterproofing system behind or under ceramic tile and tile countertops shall not allow water into the interior of walls, flooring systems, or other components so as to cause damage. damage to another component. Ceramic tile systems shall be designed and installed so as to deflect intended water to the waterproofing system. system and shall not cause damage to another component. (b) With respect to structural issues: (1) Foundations, load bearing components, and slabs, shall not contain significant cracks or significant vertical displacement. displacement so as to cause damage to another building component. (2) Foundations, load bearing components, and slabs shall not cause the structure, in whole or in part, to be structurally unsafe. (3) Foundations, load bearing components, and slabs, and underlying soils shall be constructed so as to materially comply with the design criteria set by applicable government building codes, regulations, and ordinances for chemical deterioration or corrosion resistance in effect at the time of original construction. (4) A structure shall be constructed so as to materially comply with the design criteria for earthquake and wind load resistance, as set forth in the applicable government building codes, regulations, and ordinances in effect at the time of original construction. (c) With respect to soil issues: (1) Soils and engineered retaining walls shall not cause, in whole or in part, damage to the structure built upon the soil or engineered retaining wall. (2) Soils and engineered retaining walls shall not cause, in whole or in part, the structure to be structurally unsafe. (3) Soils shall not cause, in whole or in part, the land upon which no structure is built to become unusable for the purpose represented at the time of original sale by the builder or for the purpose for which that land is commonly used. builder. (d) With respect to fire protection issues: (1) A structure shall be constructed so as to materially comply with the design criteria of the applicable government building codes, regulations, and ordinances for fire protection of the occupants in effect at the time of the original construction. The overall construction of the building’s fire protection assem [Text truncated for display. Full text available on Congress.gov.]