Bill > AB559

This bill amends California's contractor licensing laws to expand protections for consumers in home improvement contracts. Specifically, the bill broadens the definition of "home improvement" to include construction of accessory dwelling units on residentially zoned property. It establishes stricter penalties for contractors who request or accept payments for work not performed or materials not supplied that result in financial losses to consumers exceeding 10% of the contract price. For licensed contractors, such violations can now lead to license revocation and a civil penalty of at least $10,000. For unlicensed individuals performing similar prohibited practices, the bill allows the Contractors State License Board to issue citations and impose civil penalties of at least $10,000. The legislation maintains existing requirements that home improvement contracts be in writing, limit downpayments to $1,000 or 10% of the contract amount, and prohibit contractors from requesting payments that exceed the value of work completed or materials delivered. Additionally, the bill strengthens criminal penalties for contractors who engage in fraudulent practices, particularly in areas affected by natural disasters, by allowing courts to impose maximum fines and require full restitution to victims.

Budget and Finance, Business and Industry, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB559