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CaliforniaSB 5172025-2026 Regular SessionSenateWALLET

Home improvement contract requirements: subcontractors.

Sponsored By: Roger Niello (Republican)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 4 benefits, 0 costs, 1 mixed.

Clear cancel rights for home repairs

You can cancel a home improvement contract within three business days after signing. Seniors (65+) have five business days for contracts signed on or after January 1, 2021. If an official emergency is declared and your home was damaged, you get seven business days. You must get a signed and dated copy of the contract before work starts, and that starts the cancellation clock. The first page must show where to send the Notice of Cancellation and a phone number, and the contract must include a detachable cancellation form in the same language used to sell the job. If the required cancellation notice is missing, you can file a complaint with the Contractors State License Board.

Payment caps and lien protections for homeowners

Home improvement contracts must be in writing and signed before work starts. The downpayment cannot be more than $1,000 or 10% of the contract price, whichever is less. Progress payments must match specific work, and it is illegal to collect for work not yet completed. When you pay for part of the work, the contractor must give you a full, unconditional lien release before asking for more. The contract must warn you about mechanics liens and tell you how to reduce risk. It must also tell you that you can require a performance and payment bond, and if joint control is used, the contractor cannot have any financial interest in it.

Written change orders and subcontractor transparency

Any extra work must be ordered in writing and signed by both sides before that work starts. The change must show the scope, dollar change, and any effect on payments or the completion date. If subcontractors will be used, the contract must say so and tell you that you can ask for a list with names, contact info, license numbers, and classifications. The same note must appear on any change order. The prime contractor is still responsible for finishing the job as the contract, plans, and specs require. A contractor can still seek fair payment in court for work actually done.

Insurance and license info in contracts

The contract must say if the contractor has commercial general liability insurance and name the insurer or show if there is none or self-insurance. It must also say whether the contractor has employees and carries workers’ compensation, or is exempt. The contract must include a notice about using licensed contractors and give CSLB contact info and website. Printed contracts must be easy to read, with at least 10‑point type and bold headings.

How this law works with AB 1327

Part of this law operates only if this bill and Assembly Bill 1327 are both enacted and effective by January 1, 2026, both amend the same code section, and this bill is enacted after AB 1327. If those conditions are met, a different section of this bill does not take effect.

Sponsors & Cosponsors

Sponsor

  • Roger Niello

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 217 • No: 0

Senate vote • 9/11/2025

Item 29 — Senate SFLOOR

Yes: 40 • No: 0

House vote • 9/8/2025

Item 82 — Assembly AFLOOR

Yes: 78 • No: 0

legislature vote • 7/16/2025

Vote in CX25

Yes: 13 • No: 0

legislature vote • 7/8/2025

Vote in CX13

Yes: 12 • No: 0

legislature vote • 6/24/2025

Vote in CX33

Yes: 16 • No: 0

Senate vote • 5/15/2025

Item 146 — Senate SFLOOR

Yes: 34 • No: 0

legislature vote • 4/29/2025

Vote in CS53

Yes: 13 • No: 0

legislature vote • 4/21/2025

Vote in CS42

Yes: 11 • No: 0

Actions Timeline

  1. Chaptered by Secretary of State. Chapter 585, Statutes of 2025.

    10/10/2025Senate

  2. Approved by the Governor.

    10/10/2025legislature

  3. Enrolled and presented to the Governor at 2 p.m.

    9/22/2025legislature

  4. Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2871.) Ordered to engrossing and enrolling.

    9/11/2025Senate

  5. In Senate. Concurrence in Assembly amendments pending.

    9/8/2025Senate

  6. Read third time. Passed. (Ayes 78. Noes 0. Page 2981.) Ordered to the Senate.

    9/8/2025House

  7. Ordered to third reading.

    9/3/2025House

  8. Read third time and amended.

    9/3/2025House

  9. Ordered to third reading.

    8/18/2025House

  10. From consent calendar on motion of Assembly Member Aguiar-Curry.

    8/18/2025House

  11. Read second time. Ordered to consent calendar.

    7/17/2025House

  12. From committee: Do pass. Ordered to consent calendar. (Ayes 13. Noes 0.) (July 16).

    7/16/2025House

  13. From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 12. Noes 0.) (July 8). Re-referred to Com. on APPR.

    7/9/2025House

  14. From committee: Do pass and re-refer to Com. on JUD. with recommendation: To consent calendar. (Ayes 16. Noes 0.) (June 24). Re-referred to Com. on JUD.

    6/24/2025House

  15. Referred to Coms. on B. & P. and JUD.

    5/29/2025House

  16. In Assembly. Read first time. Held at Desk.

    5/15/2025House

  17. Read third time. Passed. (Ayes 34. Noes 0. Page 1091.) Ordered to the Assembly.

    5/15/2025Senate

  18. Read second time. Ordered to consent calendar.

    5/13/2025Senate

  19. From committee: Be ordered to second reading pursuant to Senate Rule 28.8 and ordered to consent calendar.

    5/12/2025Senate

  20. Set for hearing May 12.

    5/6/2025Senate

  21. Read second time and amended. Re-referred to Com. on APPR.

    5/1/2025Senate

  22. From committee: Do pass as amended and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 13. Noes 0. Page 941.) (April 29).

    4/30/2025Senate

  23. From committee: Do pass and re-refer to Com. on JUD. (Ayes 11. Noes 0. Page 808.) (April 21). Re-referred to Com. on JUD.

    4/21/2025Senate

  24. Set for hearing April 29 in JUD. pending receipt.

    4/8/2025Senate

  25. Set for hearing April 21.

    3/18/2025Senate

Bill Text

  • Chaptered

    10/10/2025

    HTML

  • Enrolled

    9/16/2025

    HTML

  • Amended Assembly

    9/3/2025

    HTML

  • Amended Senate

    5/1/2025

    HTML

  • Introduced

    2/19/2025

    HTML

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