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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Niello</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Niello</ns0:Name>
</ns0:Legislator>
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<ns0:Title> An act to amend Section 7159 of the Business and Professions Code, relating to professions and vocations. </ns0:Title>
<ns0:RelatingClause>professions and vocations</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Home improvement contract requirements: subcontractors.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>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.</html:p>
<html:p>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.</html:p>
<html:p>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.</html:p>
<html:p>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.</html:p>
<html:p>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.</html:p>
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<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_409D3A40-E3FB-4BE6-A695-3FEE368EA8BD">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 7159 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_0BBE70C1-1279-44E5-88DD-E11D2E162837">
<ns0:Num>7159.</ns0:Num>
<ns0:LawSectionVersion id="id_7EB140F7-E5C4-4CF8-ABBA-BC26D17D4E00">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
This section identifies the projects for which a home improvement contract is required, outlines the contract requirements, and lists the items that shall be included in the contract, or may be provided as an attachment.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
This section does not apply to service and repair contracts that are subject to Section 7159.10, if the contract for the applicable services complies with Sections 7159.10 to 7159.14, inclusive.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
This section does not apply to the sale, installation, and servicing of a fire alarm sold in conjunction with an alarm system, as defined in Section 7590.1, if all costs attributable to making
the fire alarm system operable, including sale and installation costs, do not exceed five hundred dollars ($500), and the licensee complies with the requirements set forth in Section 7159.9.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
This section does not apply to any costs associated with monitoring a burglar or fire alarm system.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Failure by the licensee, their agent or salesperson, or by a person subject to be licensed under this chapter, to provide the specified information, notices, and disclosures in the contract, or to otherwise fail to comply with any provision of this section, is cause for discipline.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For purposes of administrative discipline under this chapter, the prime or direct contractor is responsible for
completion of the project in accordance with the home improvement contract, plans, and specifications. This prime or direct contractor responsibility shall not preclude administrative discipline against any subcontractor or home improvement salesperson on a home improvement contract for violation of this chapter.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section, “home improvement contract” means an agreement, whether oral or written, or contained in one or more documents, between a contractor and an owner or between a contractor and a tenant, regardless of the number of residence or dwelling units contained in the building in which the tenant resides, if the work is to be performed in, to, or upon the residence or dwelling unit of the tenant, for the performance of a home improvement, as defined in Section 7151, and includes all labor, services, and
materials to be furnished and performed thereunder, if the aggregate contract price specified in one or more improvement contracts, including all labor, services, and materials to be furnished by the contractor, exceeds five hundred dollars ($500). “Home improvement contract” also means an agreement, whether oral or written, or contained in one or more documents, between a salesperson, whether or not they are a home improvement salesperson, and an owner or a tenant, regardless of the number of residence or dwelling units contained in the building in which the tenant resides, which provides for the sale, installation, or furnishing of home improvement goods or services.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
In addition to the specific requirements listed under this section, every home improvement contract and any person subject to licensure under this chapter or their agent or
salesperson shall comply with all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The writing shall be legible.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Any printed form shall be readable. Unless a larger typeface is specified in this article, text in any printed form shall be in at least 10-point typeface and the headings shall be in at least 10-point boldface type.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Before any work is started, the contractor shall give the buyer a copy of the contract that is signed and dated by both the contractor and the buyer. The buyer’s receipt of the copy of the contract initiates the buyer’s rights to cancel the contract pursuant to Sections 1689.5 to 1689.14, inclusive, of the Civil Code.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The
contract shall contain on the first page, in a typeface no smaller than that generally used in the body of the document, both of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The date the buyer signed the contract.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The name and address of the contractor to whom the applicable “Notice of Cancellation” is to be mailed, immediately preceded by a statement advising the buyer that the “Notice of Cancellation” may be sent to the contractor at the address noted on the contract.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The contract shall include a statement that, upon satisfactory payment being made for any portion of the work performed, the contractor, prior to any further payment being made, shall furnish to the person contracting for the home improvement or swimming pool work a
full and unconditional release from any potential lien claimant claim or mechanics lien authorized pursuant to Sections 8400 and 8404 of the Civil Code for that portion of the work for which payment has been made.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
A change-order form for changes or extra work shall be incorporated into the contract and shall become part of the contract only if it is in writing and signed by the parties prior to the commencement of any work covered by a change order.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
The contract shall contain, in close proximity to the signatures of the owner and contractor, a notice stating that the owner or tenant has the right to require the contractor to have a performance and payment bond.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The contract shall contain
a statement regarding whether or not a subcontractor will be used on the project, including a portion to be checked in response, as follows:
</html:p>
<html:p>[__] Yes</html:p>
<html:p>[__] No</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If checked “Yes,” indicating that a subcontractor will be used on the project, the contract shall contain a disclaimer that states the following:
</html:p>
<html:p>“One or more subcontractors will be used on this project, and the contractor is aware that a list of subcontractors is required to be provided, upon request, along with the names, contact information, license number, and classification of those subcontractors.”</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
If there is a change order during the project, the same disclaimer set forth
in subparagraph (B) shall be on each change order.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
If the contract provides for a contractor to furnish joint control, the contractor shall not have any financial or other interest in the joint control.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
The provisions of this section are not exclusive and do not relieve the contractor from compliance with any other applicable provision of law.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A home improvement contract and any changes to the contract shall be in writing and signed by the parties to the contract prior to the commencement of work covered by the contract or an applicable change order and, except as provided in paragraph (8) of subdivision (a) of Section 7159.5, shall include or comply with all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The name, business address, and license number of the contractor.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If applicable, the name and registration number of the home improvement salesperson that solicited or negotiated the contract.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The following heading on the contract form that identifies the type of contract in at least 10-point boldface type: “Home Improvement.”
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The following statement in at least 12-point boldface type: “You are entitled to a completely filled in copy of this agreement, signed by both you and the contractor, before any work may be started.”
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The heading: “Contract Price,” followed by the amount of
the contract in dollars and cents.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
If a finance charge will be charged, the heading: “Finance Charge,” followed by the amount in dollars and cents. The finance charge is to be set out separately from the contract amount.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
The heading: “Description of the Project and Description of the Significant Materials to be Used and Equipment to be Installed,” followed by a description of the project and a description of the significant materials to be used and equipment to be installed. For swimming pools, the project description required under this paragraph also shall include a plan and scale drawing showing the shape, size, dimensions, and the construction and equipment specifications.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
If a downpayment will be
charged, the details of the downpayment shall be expressed in substantially the following form, and shall include the text of the notice as specified in subparagraph (C):
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The heading: “Downpayment.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A space where the actual downpayment appears.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The following statement in at least 12-point boldface type:
</html:p>
<html:br/>
<html:p>“THE DOWNPAYMENT MAY NOT EXCEED $1,000 OR 10 PERCENT OF THE CONTRACT PRICE, WHICHEVER IS LESS.”</html:p>
<html:br/>
<html:p>
(9)
<html:span class="EnSpace"/>
If payments, other than the downpayment, are to be made before the project is completed, the details of these payments, known
as progress payments, shall be expressed in substantially the following form, and shall include the text of the statement as specified in subparagraph (C):
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A schedule of progress payments shall be preceded by the
heading: “Schedule of Progress Payments.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Each progress payment shall be stated in dollars and cents and specifically reference the amount of work or services to be performed and materials and equipment to be supplied.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The section of the contract reserved for the progress payments shall include the following statement in at least 12-point boldface type:
</html:p>
<html:br/>
<html:p>“The schedule of progress payments must specifically describe each phase of work, including the type and amount of work or services scheduled to be supplied in each phase, along with the amount of each proposed progress payment. IT IS AGAINST THE LAW FOR A CONTRACTOR TO COLLECT PAYMENT FOR WORK NOT YET COMPLETED, OR FOR
MATERIALS NOT YET DELIVERED. HOWEVER, A CONTRACTOR MAY REQUIRE A DOWNPAYMENT.”</html:p>
<html:br/>
<html:p>
(10)
<html:span class="EnSpace"/>
The contract shall address the commencement of work to be performed in substantially the following form:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A statement that describes what constitutes substantial commencement of work under the contract.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The heading: “Approximate Start Date.”
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The approximate date on which work will be commenced.
</html:p>
<html:p>
(11)
<html:span class="EnSpace"/>
The estimated completion date of the work shall be referenced in the contract in substantially the following form:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The
heading: “Approximate Completion Date.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The approximate date of completion.
</html:p>
<html:p>
(12)
<html:span class="EnSpace"/>
If applicable, the heading: “List of Documents to be Incorporated into the Contract,” followed by the list of documents incorporated into the contract.
</html:p>
<html:p>
(13)
<html:span class="EnSpace"/>
The heading: “Note About Extra Work and Change Orders,” followed by the following statement:
</html:p>
<html:br/>
<html:p>“Extra Work and Change Orders become part of the contract once the order is prepared in writing and signed by the parties prior to the commencement of work covered by the new change order. The order must describe the scope of the extra work or change, the cost to be added or subtracted from the contract, and the effect the
order will have on the schedule of progress payments.”</html:p>
<html:br/>
<html:p>
(e)
<html:span class="EnSpace"/>
Except as provided in paragraph (8) of subdivision (a) of Section 7159.5, all of the following notices shall be provided to the owner as part of the contract form as specified or, if otherwise authorized under this subdivision, may be provided as an attachment to the contract:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A notice concerning commercial general liability insurance. This notice may be provided as an attachment to the contract if the contract includes the following statement: “A notice concerning commercial general liability insurance is attached to this contract.”
The notice shall include the heading “Commercial General Liability Insurance (CGL),” followed by whichever of the following statements is both relevant and correct:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
“(The name on the license or ‛This contractor’) does not carry commercial general liability insurance.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
“(The name on the license or ‛This contractor’) carries commercial general liability insurance written by (the insurance company). You may call (the insurance company) at __________ to check the contractor’s insurance coverage.”
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
“(The name on the license or ‛This contractor’) is self-insured.”
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
“(The name on the license or ‘This contractor’) is a limited liability company that carries
liability insurance or maintains other security as required by law. You may call (the insurance company or trust company or bank) at ____ to check on the contractor’s insurance coverage or security.”
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A notice concerning workers’ compensation insurance. This notice may be provided as an attachment to the contract if the contract includes the statement: “A notice concerning workers’ compensation insurance is attached to this contract.” The notice shall include the heading “Workers’ Compensation Insurance” followed by whichever of the following statements is correct:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
“(The name on the license or ‛This contractor’) has no employees and is exempt from workers’ compensation requirements.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
“(The name on the
license or ‛This contractor’) carries workers’ compensation insurance for all employees.”
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A notice that provides the buyer with the following information about the performance of extra or change-order work:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A statement that the buyer may not require a contractor to perform extra or change-order work without providing written authorization prior to the commencement of work covered by the new change order.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A statement informing the buyer that extra work or a change order is not enforceable against a buyer unless the change order also identifies all of the following in writing prior to the commencement of work covered by the new change order:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The
scope of work encompassed by the order.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The amount to be added or subtracted from the contract.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The effect the order will make in the progress payments or the completion date.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A statement informing the buyer that the contractor’s failure to comply with the requirements of this paragraph does not preclude the recovery of compensation for work performed based upon legal or equitable remedies designed to prevent unjust enrichment.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A notice with the heading “Mechanics Lien Warning” written as follows:
<html:br/>
</html:p>
<html:br/>
<html:p>“MECHANICS LIEN WARNING:</html:p>
<html:br/>
<html:p>Anyone who helps improve your property, but who is not paid, may record what is called a mechanics lien on your property. A mechanics lien is a claim, like a mortgage or home equity loan, made against your property and recorded with the county recorder.</html:p>
<html:p>Even if you pay your contractor in full, unpaid subcontractors, suppliers, and laborers who helped to improve your property may record mechanics liens and sue you in court to foreclose the lien. If a court finds the lien is valid, you could be forced to pay twice or have a court officer sell your home to pay the lien. Liens can also affect your credit.</html:p>
<html:p>To preserve their right to record a lien, each subcontractor and material supplier must provide you with a document called a ‘Preliminary
Notice.’ This notice is not a lien. The purpose of the notice is to let you know that the person who sends you the notice has the right to record a lien on your property if they are not paid.</html:p>
<html:p>
BE CAREFUL.
<html:span class="EnSpace"/>
The Preliminary Notice can be sent up to 20 days after the subcontractor starts work or the supplier provides material. This can be a big problem if you pay your contractor before you have received the Preliminary Notices.
</html:p>
<html:p>You will not get Preliminary Notices from your prime contractor or from laborers who work on your project. The law assumes that you already know they are improving your property.</html:p>
<html:p>
PROTECT YOURSELF FROM LIENS.
<html:span class="EnSpace"/>
You can protect yourself from liens by getting a list from your contractor of all the subcontractors and material
suppliers that work on your project. Find out from your contractor when these subcontractors started work and when these suppliers delivered goods or materials. Then wait 20 days, paying attention to the Preliminary Notices you receive.
</html:p>
<html:p>
PAY WITH JOINT CHECKS.
<html:span class="EnSpace"/>
One way to protect yourself is to pay with a joint check. When your contractor tells you it is time to pay for the work of a subcontractor or supplier who has provided you with a Preliminary Notice, write a joint check payable to both the contractor and the subcontractor or material supplier.
</html:p>
<html:p>For other ways to prevent liens, visit CSLB’s internet website at www.cslb.ca.gov or call CSLB at 800-321-CSLB (2752).</html:p>
<html:p>REMEMBER, IF YOU DO NOTHING, YOU RISK HAVING A LIEN PLACED ON YOUR HOME. This can mean that
you may have to pay twice, or face the forced sale of your home to pay what you owe.”</html:p>
<html:br/>
<html:p>
(5)
<html:span class="EnSpace"/>
The following notice shall be provided in at least 12-point typeface:
</html:p>
<html:br/>
<html:p>“Information about the Contractors State License Board (CSLB): CSLB is the state consumer protection agency that licenses and regulates construction contractors.</html:p>
<html:p>Contact CSLB for information about the licensed contractor you are considering, including information about disclosable complaints, disciplinary actions, and civil judgments that are reported to CSLB.</html:p>
<html:p>Use only licensed contractors. If you file a complaint against a licensed contractor within the legal deadline
(usually four years), CSLB has authority to investigate the complaint. If you use an unlicensed contractor, CSLB may not be able to help you resolve your complaint. Your only remedy may be in civil court, and you may be liable for damages arising out of any injuries to the unlicensed contractor or the unlicensed contractor’s employees.</html:p>
<html:p>For more information:</html:p>
<html:p>Visit CSLB’s internet website at www.cslb.ca.gov</html:p>
<html:p>Call CSLB at 800-321-CSLB (2752)</html:p>
<html:p>Write CSLB at P.O. Box 26000, Sacramento, CA 95826.”</html:p>
<html:br/>
<html:p>
(6)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The notice set forth in subparagraph (B) and entitled “Three-Day Right to Cancel,” or entitled “Five-Day Right to Cancel” for
contracts with a senior citizen, shall be provided to the buyer unless the contract is:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Negotiated at the contractor’s place of business.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Subject to the “Seven-Day Right to Cancel,” as set forth in paragraph (7).
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Subject to licensure under the Alarm Company Act (Chapter 11.6 (commencing with Section 7590)), provided the alarm company licensee complies with Sections 1689.5, 1689.6, and 1689.7 of the Civil Code, as applicable.
</html:p>
<html:br/>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
“Three-Day Right to Cancel
</html:p>
<html:p>You, the buyer, have the right to cancel this contract within three business days. You
may cancel by emailing, mailing, faxing, or delivering a written notice to the contractor at the contractor’s place of business by midnight of the third business day after you received a signed and dated copy of the contract that includes this notice. Include your name, your address, and the date you received the signed copy of the contract and this notice.</html:p>
<html:p>If you cancel, the contractor must return to you anything you paid within 10 days of receiving the notice of cancellation. For your part, you must make available to the contractor at your residence, in substantially as good condition as you received them, goods delivered to you under this contract or sale. Or, you may, if you wish, comply with the contractor’s instructions on how to return the goods at the contractor’s expense and risk. If you do make the goods available to the contractor and the contractor
does not pick them up within 20 days of the date of your notice of cancellation, you may keep them without any further obligation. If you fail to make the goods available to the contractor, or if you agree to return the goods to the contractor and fail to do so, then you remain liable for performance of all obligations under the contract.”</html:p>
<html:br/>
<html:p>
(ii)
<html:span class="EnSpace"/>
References to “three” and “third” in the notice set forth in clause (i) shall be changed to “five” and “fifth,” respectively, for a buyer who is a senior citizen.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The notice required by this paragraph shall comply with all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The text of the notice is at least 12-point boldface type.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The notice is in immediate proximity to a space reserved for the owner’s signature.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The owner acknowledges receipt of the notice by signing and dating the notice form in the signature space.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The notice is written in the same language, e.g., Spanish, as that principally used in any oral sales presentation.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
The notice may be attached to the contract if the contract includes, in at least 12-point boldface type, a checkbox with one of the following statements, as applicable:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
For a contract with a senior citizen: “The law requires that the contractor give you a notice explaining your
right to cancel. Initial the checkbox if the contractor has given you a ‛Notice of the Five-Day Right to Cancel.’
<html:span class="ThinSpace"/>
”
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
For all other contracts: “The law requires that the contractor give you a notice explaining your right to cancel. Initial the checkbox if the contractor has given you a ‛Notice of the Three-Day Right to Cancel.’”
</html:p>
<html:p>
(vi)
<html:span class="EnSpace"/>
(I)
<html:span class="EnSpace"/>
The notice shall be accompanied by a completed form in duplicate, captioned “Notice of Cancellation,” which also shall be attached to the agreement or offer to purchase and be easily detachable, and which shall contain the following statement written in the same language, e.g., Spanish, as used in the contract:
</html:p>
<html:table id="id_42A0B64F-433A-46A6-A8D4-ACD5F9D0162D">
<html:colgroup>
<html:col width="207.0"/>
<html:col width="207.0"/>
</html:colgroup>
<html:tbody>
<html:tr>
<html:td colspan="2">
<html:p class="Center10Point" style="font-size:10pt; text-align:center; text-indent:0pt;">
“Notice of Cancellation”
<html:br/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">/enter date of transaction/</html:p>
</html:th>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:th>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">(Date)</html:p>
</html:th>
</html:tr>
</html:tbody>
</html:table>
<html:p>“You may cancel this transaction, without any penalty or obligation, within three business days from the above
date.</html:p>
<html:p>If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within 10 days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.</html:p>
<html:p>If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller’s expense and risk.</html:p>
<html:p>If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your notice of cancellation, you may
retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.”</html:p>
<html:table id="id_744567EF-F960-41E8-B46C-2FAFA91340B2">
<html:tbody>
<html:tr>
<html:td>
<html:p>To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
to
<html:span class="UnderlinedLeaders"/>
,
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td align="center">
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
/name of seller/
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
at
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
/address of seller’s place of business/
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
not later than midnight of
<html:span class="UnderlinedLeaders"/>
.
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
(Date)
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
I hereby cancel this transaction.
<html:span class="EmSpace"/>
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
(Date)
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
(Buyer’s signature)
</html:p>
</html:td>
</html:tr>
</html:tbody>
</html:table>
<html:p>
(II)
<html:span class="EnSpace"/>
The reference to “three” in the statement set forth in subclause (I) shall be changed to “five” for a buyer who is a senior citizen.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The following notice entitled “Seven-Day Right to Cancel” shall be provided to the buyer for any contract that is written for the repair or restoration of residential premises damaged by any sudden or catastrophic event for which a state of emergency has been declared by the President of the United States or the Governor, or for which a local emergency has been declared by the executive officer or governing body of any city, county, or city and county:
</html:p>
<html:br/>
<html:p>“Seven-Day Right to Cancel</html:p>
<html:p>You, the buyer, have the right to cancel this contract within seven business days. You may cancel by emailing, mailing, faxing, or delivering a written notice to the contractor at the contractor’s place of business by midnight of the seventh business day after you received a signed and dated copy of the contract that includes this notice. Include your name, your address, and the date you received the signed copy of the contract and this notice.</html:p>
<html:p>If you cancel, the contractor must return to you anything you paid within 10 days of receiving the notice of cancellation. For your part, you must make available to the contractor at your residence, in substantially as good condition as you received them, goods delivered to you under this contract or sale. Or, you
may, if you wish, comply with the contractor’s instructions on how to return the goods at the contractor’s expense and risk. If you do make the goods available to the contractor and the contractor does not pick them up within 20 days of the date of your notice of cancellation, you may keep them without any further obligation. If you fail to make the goods available to the contractor, or if you agree to return the goods to the contractor and fail to do so, then you remain liable for performance of all obligations under the contract.”</html:p>
<html:br/>
<html:p>
(B)
<html:span class="EnSpace"/>
The “Seven-Day Right to Cancel” notice required by this subdivision shall comply with all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The text of the notice is at least 12-point boldface type.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The notice is in immediate proximity to a space reserved for the owner’s signature.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The owner acknowledges receipt of the notice by signing and dating the notice form in the signature space.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The notice is written in the same language, e.g., Spanish, as that principally used in any oral sales presentation.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
The notice may be attached to the contract if the contract includes, in at least 12-point boldface type, a checkbox with the following statement: “The law requires that the contractor give you a notice explaining your right to cancel. Initial the checkbox if the contractor has given you a ‛Notice of the Seven-Day Right to Cancel.’
<html:span class="ThinSpace"/>
”
</html:p>
<html:p>
(vi)
<html:span class="EnSpace"/>
The notice shall be accompanied by a completed form in duplicate, captioned “Notice of Cancellation,” which shall also be attached to the agreement or offer to purchase and be easily detachable, and which shall contain the following statement written in the same language, e.g., Spanish, as used in the contract:
</html:p>
<html:table id="id_C716C96A-E1BF-4871-A1A9-2A6FFF7D3E5D">
<html:colgroup>
<html:col width="207.0"/>
<html:col width="207.0"/>
</html:colgroup>
<html:tbody>
<html:tr>
<html:td colspan="2">
<html:p class="Center10Point" style="font-size:10pt; text-align:center; text-indent:0pt;">
“Notice of Cancellation”
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:br/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">/enter date of transaction/</html:p>
</html:th>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:th>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">(Date)</html:p>
</html:th>
</html:tr>
</html:tbody>
</html:table>
<html:p>“You may cancel this transaction, without any penalty or obligation, within seven business days from the above date.</html:p>
<html:p>If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within 10 days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.</html:p>
<html:p>If you cancel, you must make available to the seller at your residence,
in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller’s expense and risk.</html:p>
<html:p>If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.”</html:p>
<html:table id="id_3E59EFDB-AA88-46B8-8753-39E4F1D6C59F">
<html:tbody>
<html:tr>
<html:td>
<html:p>To cancel this transaction, mail or deliver a signed and dated copy of this cancellation
notice, or any other written notice, or send a telegram</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
to
<html:span class="UnderlinedLeaders"/>
,
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
<html:span class="EmSpace"/>
/name of seller/
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
at
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
/address of seller’s place of business/
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
not
later than midnight of
<html:span class="UnderlinedLeaders"/>
.
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
(Date)
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
I hereby cancel this transaction.
<html:span class="EmSpace"/>
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
(Date)
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
<html:span class="EmSpace"/>
(Buyer’s signature)
</html:p>
</html:td>
</html:tr>
</html:tbody>
</html:table>
<html:p>
(f)
<html:span class="EnSpace"/>
The five-day right to cancel added by the act that amended paragraph (6) of subdivision (e) shall apply to contracts entered into on or after January 1, 2021.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_95828253-23D8-435F-83F9-3C4CD4E77285">
<ns0:Num>SEC. 1.5.</ns0:Num>
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Section 7159 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_B519691E-13A0-43E5-BCD6-AB65F3640F3C">
<ns0:Num>7159.</ns0:Num>
<ns0:LawSectionVersion id="id_7420CED8-3856-473F-9F89-C49C2291F8E2">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
This section identifies the projects for which a home improvement contract is required, outlines the contract requirements, and lists the items that shall be included in the contract, or may be provided as an attachment.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
This section does not apply to service and repair contracts that are subject to Section 7159.10, if the contract for the applicable services complies with Sections 7159.10 to 7159.14, inclusive.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
This section does not apply to the sale, installation, and servicing of a fire alarm sold in conjunction with an alarm system, as defined in Section 7590.1, if all costs attributable to making the fire alarm system operable, including sale and
installation costs, do not exceed five hundred dollars ($500), and the licensee complies with the requirements set forth in Section 7159.9.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
This section does not apply to any costs associated with monitoring a burglar or fire alarm system.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Failure by the licensee, their agent or salesperson, or by a person subject to be licensed under this chapter, to provide the specified information, notices, and disclosures in the contract, or to otherwise fail to comply with any provision of this section, is cause for discipline.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For purposes of administrative discipline under this chapter, the prime or direct contractor is responsible for completion of the project in accordance with the home improvement contract, plans, and specifications. This prime or direct contractor responsibility shall not preclude administrative discipline against any subcontractor or home improvement salesperson on a home improvement contract for violation of this chapter.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
If the applicable “Notice of Cancellation” is not included in or attached to the contract as required by this section, the buyer may file a complaint with the Contractors State License Board.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section, “home improvement contract” means an
agreement, whether oral or written, or contained in one or more documents, between a contractor and an owner or between a contractor and a tenant, regardless of the number of residence or dwelling units contained in the building in which the tenant resides, if the work is to be performed in, to, or upon the residence or dwelling unit of the tenant, for the performance of a home improvement, as defined in Section 7151, and includes all labor, services, and materials to be furnished and performed thereunder, if the aggregate contract price specified in one or more improvement contracts, including all labor, services, and materials to be furnished by the contractor, exceeds five hundred dollars ($500). “Home improvement contract” also means an agreement, whether oral or written, or contained in one or more documents, between a salesperson, whether or not they are a home improvement salesperson, and an owner or a tenant, regardless of the number of residence or dwelling units contained in the building in which
the tenant resides, which provides for the sale, installation, or furnishing of home improvement goods or services.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
In addition to the specific requirements listed under this section, every home improvement contract and any person subject to licensure under this chapter or their agent or salesperson shall comply with all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The writing shall be legible.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Any printed form shall be readable. Unless a larger typeface is specified in this article, text in any printed form shall be in at least 10-point typeface and the headings shall be in at least 10-point boldface type.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Before any work is started, the contractor shall give the buyer a copy of the contract
that is signed and dated by both the contractor and the buyer. The buyer’s receipt of the copy of the contract initiates the buyer’s rights to cancel the contract pursuant to Sections 1689.5 to 1689.14, inclusive, of the Civil Code.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The contract shall contain on the first page, in a typeface no smaller than that generally used in the body of the document, both of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The date the buyer signed the contract.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The
name, address, and email address of the contractor to whom the applicable “Notice of Cancellation” is to be sent, immediately preceded by a statement advising the buyer that the “Notice of Cancellation” may be sent to the contractor at the address or email address noted on the contract.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The telephone number of the
contractor, or the contractor’s representative, to assist the buyer with locating and filling out the “Notice of Cancellation.”
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The contract shall include a statement that, upon satisfactory payment being made for any portion of the work performed, the contractor, prior to any further payment being made, shall furnish to the person contracting for the home improvement or swimming pool work a full and unconditional release from any potential lien claimant claim or mechanics lien authorized pursuant to Sections 8400 and 8404 of the Civil Code for that portion of the work for which payment has been made.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
A change-order form for changes or extra work shall be incorporated into the contract and shall become part of the contract only if it is in writing and signed by the parties prior to the commencement of any work covered by a change order.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
The contract shall contain, in close proximity to the signatures of the owner and contractor, a notice stating that the owner or tenant has the right to require the contractor to have a performance and payment bond.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The contract shall contain a statement regarding whether or not a subcontractor will be used on the project, including a portion to be checked in response, as follows:
</html:p>
<html:p>[__] Yes</html:p>
<html:p>[__] No</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If checked “Yes,” indicating that a subcontractor will be used on the project, the contract shall contain a disclaimer that states the following:
</html:p>
<html:p>“One or more subcontractors will
be used on this project, and the contractor is aware that a list of subcontractors is required to be provided, upon request, along with the names, contact information, license number, and classification of those subcontractors.”</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
If there is a change order during the project, the same disclaimer set forth in subparagraph (B) shall be on each change order.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
If the contract provides for a contractor to furnish joint control, the contractor shall not have any financial or other interest in the joint control.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
The provisions of this section are not exclusive and do not relieve the contractor from compliance with any other applicable provision of law.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A home improvement contract and any changes to the contract shall be in writing and signed by the parties to the contract prior to the commencement of work covered by the contract or an applicable change order and, except as provided in paragraph (8) of subdivision (a) of Section 7159.5, shall include or comply with all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The name, business address, and license number of the contractor.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If applicable, the name and registration number of the home improvement salesperson that
solicited or negotiated the contract.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The following heading on the contract form that identifies the type of contract in at least 10-point boldface type: “Home Improvement.”
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The following statement in at least 12-point boldface type: “You are entitled to a completely filled in copy of this agreement, signed by both you and the contractor, before any work may be started.”
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The heading: “Contract Price,” followed by the amount of the contract in dollars and cents.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
If a finance charge will be charged, the heading: “Finance Charge,” followed by the amount in dollars and cents. The finance charge is to be set out separately from the contract amount.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
The heading: “Description
of the Project and Description of the Significant Materials to be Used and Equipment to be Installed,” followed by a description of the project and a description of the significant materials to be used and equipment to be installed. For swimming pools, the project description required under this paragraph also shall include a plan and scale drawing showing the shape, size, dimensions, and the construction and equipment specifications.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
If a downpayment will be charged, the details of the downpayment shall be expressed in substantially the following form, and shall include the text of the notice as specified in subparagraph (C):
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The heading: “Downpayment.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A space where the actual downpayment appears.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The following statement in at least
12-point boldface type:
</html:p>
<html:br/>
<html:p>“THE DOWNPAYMENT MAY NOT EXCEED $1,000 OR 10 PERCENT OF THE CONTRACT PRICE, WHICHEVER IS LESS.”</html:p>
<html:br/>
<html:p>
(9)
<html:span class="EnSpace"/>
If payments, other than the downpayment, are to be made before the project is completed, the details of these payments, known as progress payments, shall be expressed in substantially the following form, and shall include the text of the statement as specified in subparagraph (C):
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A schedule of progress payments shall be preceded by the heading: “Schedule of Progress Payments.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Each progress payment shall be stated in dollars and cents and specifically reference the amount of work or services to be performed and materials and equipment to be supplied.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The section of the contract reserved for the progress payments shall include the following statement in at least 12-point boldface type:
</html:p>
<html:br/>
<html:p>“The schedule of progress payments must specifically describe each phase of work, including the type and amount of work or services scheduled to be supplied in each phase, along with the amount of each proposed progress payment. IT IS AGAINST THE LAW FOR A CONTRACTOR TO COLLECT PAYMENT FOR WORK NOT YET COMPLETED, OR FOR MATERIALS NOT YET DELIVERED. HOWEVER, A CONTRACTOR MAY REQUIRE A DOWNPAYMENT.”</html:p>
<html:br/>
<html:p>
(10)
<html:span class="EnSpace"/>
The contract shall address the commencement of work to be performed in substantially the following form:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A statement that describes what constitutes
substantial commencement of work under the contract.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The heading: “Approximate Start Date.”
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The approximate date on which work will be commenced.
</html:p>
<html:p>
(11)
<html:span class="EnSpace"/>
The estimated completion date of the work shall be referenced in the contract in substantially the following form:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The heading: “Approximate Completion Date.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The approximate date of completion.
</html:p>
<html:p>
(12)
<html:span class="EnSpace"/>
If applicable, the heading: “List of Documents to be Incorporated into the Contract,” followed by the list of documents incorporated into the contract.
</html:p>
<html:p>
(13)
<html:span class="EnSpace"/>
The heading: “Note About Extra Work and
Change Orders,” followed by the following statement:
</html:p>
<html:br/>
<html:p>“Extra Work and Change Orders become part of the contract once the order is prepared in writing and signed by the parties prior to the commencement of work covered by the new change order. The order must describe the scope of the extra work or change, the cost to be added or subtracted from the contract, and the effect the order will have on the schedule of progress payments.”</html:p>
<html:br/>
<html:p>
(e)
<html:span class="EnSpace"/>
Except as provided in paragraph (8) of subdivision (a) of Section 7159.5, all of the following notices shall be provided to the owner as part of the contract form as specified or, if otherwise authorized under this subdivision, may be provided as an attachment to the contract:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A notice concerning commercial general
liability insurance. This notice may be provided as an attachment to the contract if the contract includes the following statement: “A notice concerning commercial general liability insurance is attached to this contract.” The notice shall include the heading “Commercial General Liability Insurance (CGL),” followed by whichever of the following statements is both relevant and correct:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
“(The name on the license or ‛This contractor’) does not carry commercial general liability insurance.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
“(The name on the license or ‛This contractor’) carries commercial general liability insurance written by (the insurance company). You may call (the insurance company) at __________ to check the contractor’s insurance coverage.”
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
“(The name on the license or ‛This contractor’) is self-insured.”
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
“(The name on the license or ‘This contractor’) is a limited liability company that carries liability insurance or maintains other security as required by law. You may call (the insurance company or trust company or bank) at ____ to check on the contractor’s insurance coverage or security.”
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A notice concerning workers’ compensation insurance. This notice may be provided as an attachment to the contract if the contract includes the statement: “A notice concerning workers’ compensation insurance is attached to this contract.” The notice shall include the heading “Workers’ Compensation Insurance” followed by whichever of the following statements is correct:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
“(The name on the license or ‛This contractor’) has no employees and is exempt from workers’ compensation requirements.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
“(The name on the license or ‛This contractor’) carries workers’ compensation insurance for all employees.”
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A notice that provides the buyer with the following information about the performance of extra or change-order work:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A statement that the buyer may not require a contractor to perform extra or change-order work without providing written authorization prior to the commencement of work covered by the new change order.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A statement informing the buyer that extra work or a change order is not enforceable against a buyer unless the change order also identifies all of the following in writing prior to the commencement of work covered by the new change order:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The scope of
work encompassed by the order.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The amount to be added or subtracted from the contract.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The effect the order will make in the progress payments or the completion date.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A statement informing the buyer that the contractor’s failure to comply with the requirements of this paragraph does not preclude the recovery of compensation for work performed based upon legal or equitable remedies designed to prevent unjust enrichment.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A notice with the heading “Mechanics Lien Warning” written as follows:
<html:br/>
</html:p>
<html:br/>
<html:p>“MECHANICS LIEN WARNING:</html:p>
<html:br/>
<html:p>Anyone who helps improve your property, but who is
not paid, may record what is called a mechanics lien on your property. A mechanics lien is a claim, like a mortgage or home equity loan, made against your property and recorded with the county recorder.</html:p>
<html:p>Even if you pay your contractor in full, unpaid subcontractors, suppliers, and laborers who helped to improve your property may record mechanics liens and sue you in court to foreclose the lien. If a court finds the lien is valid, you could be forced to pay twice or have a court officer sell your home to pay the lien. Liens can also affect your credit.</html:p>
<html:p>To preserve their right to record a lien, each subcontractor and material supplier must provide you with a document called a ‘Preliminary Notice.’ This notice is not a lien. The purpose of the notice is to let you know that the person who sends you the notice has the right to record a lien on your property if they are not paid.</html:p>
<html:p>
BE
CAREFUL.
<html:span class="EnSpace"/>
The Preliminary Notice can be sent up to 20 days after the subcontractor starts work or the supplier provides material. This can be a big problem if you pay your contractor before you have received the Preliminary Notices.
</html:p>
<html:p>You will not get Preliminary Notices from your prime contractor or from laborers who work on your project. The law assumes that you already know they are improving your property.</html:p>
<html:p>
PROTECT YOURSELF FROM LIENS.
<html:span class="EnSpace"/>
You can protect yourself from liens by getting a list from your contractor of all the subcontractors and material suppliers that work on your project. Find out from your contractor when these subcontractors started work and when these suppliers delivered goods or materials. Then wait 20 days, paying attention to the Preliminary Notices you receive.
</html:p>
<html:p>
PAY WITH JOINT CHECKS.
<html:span class="EnSpace"/>
One way to
protect yourself is to pay with a joint check. When your contractor tells you it is time to pay for the work of a subcontractor or supplier who has provided you with a Preliminary Notice, write a joint check payable to both the contractor and the subcontractor or material supplier.
</html:p>
<html:p>For other ways to prevent liens, visit CSLB’s internet website at www.cslb.ca.gov or call CSLB at 800-321-CSLB (2752).</html:p>
<html:p>REMEMBER, IF YOU DO NOTHING, YOU RISK HAVING A LIEN PLACED ON YOUR HOME. This can mean that you may have to pay twice, or face the forced sale of your home to pay what you owe.”</html:p>
<html:br/>
<html:p>
(5)
<html:span class="EnSpace"/>
The following notice shall be provided in at least 12-point typeface:
</html:p>
<html:br/>
<html:p>“Information about the Contractors State License Board (CSLB): CSLB is the state consumer
protection agency that licenses and regulates construction contractors.</html:p>
<html:p>Contact CSLB for information about the licensed contractor you are considering, including information about disclosable complaints, disciplinary actions, and civil judgments that are reported to CSLB.</html:p>
<html:p>Use only licensed contractors. If you file a complaint against a licensed contractor within the legal deadline (usually four years), CSLB has authority to investigate the complaint. If you use an unlicensed contractor, CSLB may not be able to help you resolve your complaint. Your only remedy may be in civil court, and you may be liable for damages arising out of any injuries to the unlicensed contractor or the unlicensed contractor’s employees.</html:p>
<html:p>For more information:</html:p>
<html:p>Visit CSLB’s internet website at www.cslb.ca.gov</html:p>
<html:p>Call CSLB at
800-321-CSLB (2752)</html:p>
<html:p>Write CSLB at P.O. Box 26000, Sacramento, CA 95826.”</html:p>
<html:br/>
<html:p>
(6)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The notice set forth in subparagraph (B) and entitled “Three-Day Right to Cancel,” or entitled “Five-Day Right to Cancel” for contracts with a senior citizen, shall be provided to the buyer unless the contract is:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Negotiated at the contractor’s place of business.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Subject to the “Seven-Day Right to Cancel,” as set forth in paragraph (7).
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Subject to licensure under the Alarm Company Act (Chapter 11.6 (commencing with Section 7590)), provided the alarm company licensee complies with Sections 1689.5, 1689.6, and 1689.7 of the Civil Code, as
applicable.
</html:p>
<html:br/>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
“Three-Day Right to Cancel
</html:p>
<html:p>You, the buyer, have the right to cancel this contract within three business days. You may cancel by emailing, mailing, faxing, or delivering a written notice to the contractor at the contractor’s place of business by midnight of the third business day after you received a signed and dated copy of the contract that includes this notice. Include your name, your address, and the date you received the signed copy of the contract and this notice.</html:p>
<html:p>If you cancel, the contractor must return to you anything you paid within 10 days of receiving the notice of cancellation. For your part, you must make available to the contractor at your residence, in substantially as good condition as you received them, goods delivered to you under this contract or sale. Or,
you may, if you wish, comply with the contractor’s instructions on how to return the goods at the contractor’s expense and risk. If you do make the goods available to the contractor and the contractor does not pick them up within 20 days of the date of your notice of cancellation, you may keep them without any further obligation. If you fail to make the goods available to the contractor, or if you agree to return the goods to the contractor and fail to do so, then you remain liable for performance of all obligations under the contract.”</html:p>
<html:br/>
<html:p>
(ii)
<html:span class="EnSpace"/>
References to “three” and “third” in the notice set forth in clause (i) shall be changed to “five” and “fifth,” respectively, for a buyer who is a senior citizen.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The notice required by this paragraph shall comply with all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The text of the notice is at least 12-point boldface type.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The notice is in immediate proximity to a space reserved for the owner’s signature.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The owner acknowledges receipt of the notice by signing and dating the notice form in the signature space.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The notice is written in the same language, e.g., Spanish, as that principally used in any oral sales presentation.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
The notice may be attached to the contract if the contract includes, in at least 12-point boldface type, a checkbox with one of the following statements, as applicable:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
For a contract with a senior citizen: “The law requires that the contractor give you a notice explaining your right to
cancel. Initial the checkbox if the contractor has given you a ‛Notice of the Five-Day Right to Cancel.’
<html:span class="ThinSpace"/>
”
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
For all other contracts: “The law requires that the contractor give you a notice explaining your right to cancel. Initial the checkbox if the contractor has given you a ‛Notice of the Three-Day Right to Cancel.’”
</html:p>
<html:p>
(vi)
<html:span class="EnSpace"/>
(I)
<html:span class="EnSpace"/>
The notice shall be accompanied by a completed form in duplicate, captioned “Notice of Cancellation,” which also shall be attached to the agreement or offer to purchase and be easily detachable, and which shall contain the following statement written in the same language, e.g., Spanish, as used in the contract:
</html:p>
<html:table id="id_75B5C362-9EBD-469E-BF90-67E5DDDC4EEE">
<html:colgroup>
<html:col width="207.0"/>
<html:col width="207.0"/>
</html:colgroup>
<html:tbody>
<html:tr>
<html:td colspan="2">
<html:p class="Center10Point" style="font-size:10pt; text-align:center; text-indent:0pt;">
“Notice of Cancellation”
<html:br/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">/enter date of transaction/</html:p>
</html:th>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:th>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">(Date)</html:p>
</html:th>
</html:tr>
</html:tbody>
</html:table>
<html:p>“You may cancel this transaction, without any penalty or obligation, within three business days from the above date.</html:p>
<html:p>If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within 10 days following
receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.</html:p>
<html:p>If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller’s expense and risk.</html:p>
<html:p>If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.”</html:p>
<html:table id="id_BDD72AFD-9A98-4B45-A470-DD5FE71ADA39">
<html:tbody>
<html:tr>
<html:td>
<html:p>To cancel this transaction, email, mail, or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
to
<html:span class="UnderlinedLeaders"/>
,
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td align="center">
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
/name of seller/
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
at
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
/address of seller’s place of business/
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
not later than midnight of
<html:span class="UnderlinedLeaders"/>
.
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
(Date)
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
I hereby cancel this transaction.
<html:span class="EmSpace"/>
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
(Date)
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
(Buyer’s signature)
</html:p>
</html:td>
</html:tr>
</html:tbody>
</html:table>
<html:p>
(II)
<html:span class="EnSpace"/>
The reference to “three” in the statement set
forth in subclause (I) shall be changed to “five” for a buyer who is a senior citizen.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The following notice entitled “Seven-Day Right to Cancel” shall be provided to the buyer for any contract that is written for the repair or restoration of residential premises damaged by any sudden or catastrophic event for which a state of emergency has been declared by the President of the United States or the Governor, or for which a local emergency has been declared by the executive officer or governing body of any city, county, or city and county:
</html:p>
<html:br/>
<html:p>“Seven-Day Right to Cancel</html:p>
<html:p>You, the buyer, have the right to cancel this contract within seven business days. You may cancel by emailing, mailing, faxing, or delivering a written notice to the contractor at the contractor’s place of business by midnight of
the seventh business day after you received a signed and dated copy of the contract that includes this notice. Include your name, your address, and the date you received the signed copy of the contract and this notice.</html:p>
<html:p>If you cancel, the contractor must return to you anything you paid within 10 days of receiving the notice of cancellation. For your part, you must make available to the contractor at your residence, in substantially as good condition as you received them, goods delivered to you under this contract or sale. Or, you may, if you wish, comply with the contractor’s instructions on how to return the goods at the contractor’s expense and risk. If you do make the goods available to the contractor and the contractor does not pick them up within 20 days of the date of your notice of cancellation, you may keep them without any further obligation. If you fail to make the goods available to the contractor, or if you agree to return the goods to the contractor and
fail to do so, then you remain liable for performance of all obligations under the contract.”</html:p>
<html:br/>
<html:p>
(B)
<html:span class="EnSpace"/>
The “Seven-Day Right to Cancel” notice required by this subdivision shall comply with all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The text of the notice is at least 12-point boldface type.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The notice is in immediate proximity to a space reserved for the owner’s signature.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The owner acknowledges receipt of the notice by signing and dating the notice form in the signature space.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The notice is written in the same language, e.g., Spanish, as that principally used in any oral sales presentation.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
The notice may be attached to the contract if the contract includes, in at least 12-point boldface type, a checkbox with the following statement: “The law requires that the contractor give you a notice explaining your right to cancel. Initial the checkbox if the contractor has given you a ‛Notice of the Seven-Day Right to Cancel.’
<html:span class="ThinSpace"/>
”
</html:p>
<html:p>
(vi)
<html:span class="EnSpace"/>
The notice shall be accompanied by a completed form in duplicate, captioned “Notice of Cancellation,” which shall also be attached to the agreement or offer to purchase and be easily detachable, and which shall contain the following statement written in the same language, e.g., Spanish, as used in the contract:
</html:p>
<html:table id="id_6D92CE0F-B10D-4C4C-A904-C6DBB67FD39E">
<html:colgroup>
<html:col width="207.0"/>
<html:col width="207.0"/>
</html:colgroup>
<html:tbody>
<html:tr>
<html:td colspan="2">
<html:p class="Center10Point" style="font-size:10pt; text-align:center; text-indent:0pt;">
“Notice of Cancellation”
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:br/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">/enter date of transaction/</html:p>
</html:th>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:th>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">(Date)</html:p>
</html:th>
</html:tr>
</html:tbody>
</html:table>
<html:p>“You may cancel this transaction, without any penalty or obligation, within seven business days from the above date.</html:p>
<html:p>If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within
10 days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.</html:p>
<html:p>If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller’s expense and risk.</html:p>
<html:p>If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.”</html:p>
<html:table id="id_776E83F8-C59F-4B73-8D4B-5EDC603CA034">
<html:tbody>
<html:tr>
<html:td>
<html:p>To cancel this transaction, email, mail, or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
to
<html:span class="UnderlinedLeaders"/>
,
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
<html:span class="EmSpace"/>
/name of seller/
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
at
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
/address of seller’s place of business/
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
not later than midnight of
<html:span class="UnderlinedLeaders"/>
.
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
(Date)
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
I hereby cancel this transaction.
<html:span class="EmSpace"/>
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
(Date)
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
<html:span class="EmSpace"/>
(Buyer’s signature)
</html:p>
</html:td>
</html:tr>
</html:tbody>
</html:table>
<html:p>
(f)
<html:span class="EnSpace"/>
The five-day right to
cancel added by the act that amended paragraph (6) of subdivision (e) shall apply to contracts entered into on or after January 1, 2021.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_A145BCFD-D725-4F63-B19F-9CF1A6A1E1EF">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:Content>
<html:p>Section 1.5 of this bill incorporates amendments to Section 7159 of the Business and Professions Code proposed by both this bill and Assembly Bill 1327. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2026, (2) each bill amends Section 7159 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 1327, in which case Section 1 of this bill shall not become operative.</html:p>
</ns0:Content>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>
|