Existing law, the Contractors State License Law, defines and regulates the activities of contractors and provides for their licensure, regulation, and discipline by the Contractors State License Board within the Department of Consumer Affairs. Existing law requires specific provisions and requirements for home improvement contracts, as defined.

Existing law governing home improvement contracts specifies that the failure of a licensee, their agent or salesperson, or a person subject to the Contractors State License Law to provide certain information, notices, and disclosures in the contract, or to otherwise fail to comply with those provisions is cause for discipline.

This bill would also specify that, for purposes of administrative discipline under the Contractors State License Law, the prime or direct contractor is responsible for completion of the project in accordance with the home improvement contract, plans, and specifications. The bill would also provide that this prime or direct contractor responsibility does not preclude administrative discipline against any subcontractor or home improvement salesperson on a home improvement contract for a violation of that law.

The bill would further require a home improvement contract to contain a disclosure regarding whether or not a subcontractor will be used on the project, as specified.

This bill would incorporate additional changes to Section 7159 of the Business and Professions Code proposed by AB 1327 to be operative only if this bill and AB 1327 are enacted and this bill is enacted last.