AB 1327: Home improvement and home solicitation: right to cancel contracts: notice.

Existing law generally regulates various types of consumer transactions, including home improvement and home solicitation contracts and offers. Existing law authorizes a buyer to cancel certain home improvement and 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 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. Existing law also provides a 7-day period of time to cancel the contracts or offers described above if the contract is for the repair or restoration of residential premises damaged by any sudden or catastrophic event for which a state of emergency or local emergency has been declared. Existing law requires a home improvement or home solicitation contract or offer to include a notice of cancellation form with specified statements as to the buyers right to cancel, including how a notice of cancellation may be delivered to the seller.

This bill would require that notice of cancellation to also be delivered by email and require the seller to include in the contract an email address to which the notice of cancellation is to be sent and a telephone number to assist the buyer with locating and filling out the notice of cancellation, and would make conforming changes.

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

This bill would authorize a buyer to file a complaint with the Contractors State License Board if a notice of cancellation is not included in or attached to a home improvement contract, as provided.

This bill would incorporate additional changes to Section 7159 of the Business and Professions Code proposed by SB 517 to be operative only if this bill and SB 517 are enacted and this bill is enacted last.