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Updated:   2026-02-04

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Measure
Authors Durazo  
Coauthors: Allen  
Subject Home improvement loans: right to cancel contracts.
Relating To relating to consumer credit.
Title An act to amend Section 7159 of the Business and Professions Code, and to amend Sections 1689.6, 1689.7, and 1689.13 of, and to add Title 1.87 (commencing with Section 1799.220) to Part 4 of Division 3 of, the Civil Code, relating to consumer credit.
Last Action Dt 2025-07-17
State Amended Assembly
Status In Committee Process
Flags
Vote Req Approp Fiscal Cmte Local Prog Subs Chgs Urgency Tax Levy Active?
Majority No Yes No None No No Y
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Leginfo Link  
Bill Actions
2025-08-29     August 29 hearing postponed by committee.
2025-08-20     August 20 set for first hearing. Placed on APPR. suspense file.
2025-07-17     Read second time and amended. Re-referred to Com. on APPR.
2025-07-16     From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 3.) (July 15).
2025-07-08     From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 1.) (July 7). Re-referred to Com. on JUD.
2025-06-17     June 23 hearing postponed by committee.
2025-06-09     Referred to Coms. on B. & F. and JUD.
2025-06-03     In Assembly. Read first time. Held at Desk.
2025-06-02     Read third time. Passed. (Ayes 27. Noes 2. Page 1379.) Ordered to the Assembly.
2025-05-23     From committee: Do pass. (Ayes 5. Noes 0. Page 1213.) (May 23).
2025-05-23     Read second time. Ordered to third reading.
2025-05-16     Set for hearing May 23.
2025-05-12     May 12 hearing: Placed on APPR. suspense file.
2025-05-06     Set for hearing May 12.
2025-05-01     Read second time and amended. Re-referred to Com. on APPR.
2025-04-30     From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 10. Noes 0. Page 943.) (April 29).
2025-04-11     Set for hearing April 29.
2025-04-07     Read second time and amended. Re-referred to Com. on JUD.
2025-04-03     From committee: Do pass as amended and re-refer to Com. on JUD. (Ayes 5. Noes 0. Page 63.) (April 2).
2025-03-18     Set for hearing April 2.
2025-03-12     Referred to Coms. on B. & F.I. and JUD.
2025-02-24     From printer. May be acted upon on or after March 24.
2025-02-24     Read first time.
2025-02-21     Introduced. To Com. on RLS. for assignment. To print.
Versions
Amended Assembly     2025-07-17
Amended Senate     2025-05-01
Amended Senate     2025-04-07
Introduced     2025-02-21
Analyses TBD
Latest Text Bill Full Text
Latest Text Digest

(1) Existing law generally regulates various types of consumer credit contracts and transactions, including consumer loans, home solicitation contracts and offers, and home improvement businesses and contracts.

This bill would regulate home improvement loans. The bill would require a lender to take specified actions before a consumer executes a contract for a home improvement loan, including obtaining oral confirmation of key terms of the home improvement loan contract, as defined and specified. The bill would require a lender that offers or provides a home improvement loan to make certain information available to the consumer and would prescribe how a lender must respond to requests for information from a consumer. The bill would prohibit a consumer’s repayment obligations under a home improvement loan, as specified, until the lender has taken specified actions.

(2) Existing law authorizes a buyer to cancel certain home solicitation contracts or offers until midnight of the 3rd business day after the day on which the buyer signs an agreement or offer to purchase that complies with specified requirements. Existing law authorizes a buyer to cancel a home solicitation contract written for certain home improvement work until midnight of the 3rd business day after the buyer receives a signed and dated copy of the contract or offer to purchase that complies with specified requirements. Existing law requires contracts for a home solicitation contract or offer to include a notice of cancellation form with specified statements as to the buyer’s right to cancel. Existing law permits a buyer to provide a seller an express waiver to this right to cancel, if the contract meets other specified requirements.

Existing law requires specific provisions and requirements for home improvement contracts, as defined, that are not governed by the provisions described above. Existing law requires these contracts to include a notice regarding the buyer’s 3-day right to cancel.

Existing law provides an alternate 5-day period of time to cancel the contracts or offers described above if the buyer or property owner is a senior citizen, as defined, for contracts entered into, or offers to purchase conveyed, on or after January 1, 2021.

This bill would extend those 3-day and 5-day periods to 5-day and 7-day periods, respectively. The bill would also make conforming changes. The bill would apply these new extended periods to transactions on or after January 1, 2026.