Contractors: unlicensed work.
The bill's proposed changes may have significant implications for both consumers and unlicensed contractors. On one side, it provides unlicensed individuals the opportunity to engage in more explicit advertising of their services, potentially increasing competition within the market for small jobs. This change might encourage consumers who would not typically engage unlicensed individuals to consider them for inexpensive home improvement projects. However, it also raises concerns regarding consumer protection—individuals hiring unlicensed workers may be at risk if not enough safeguards are in place to ensure the quality and reliability of work being performed.
Assembly Bill No. 1874, introduced by Assembly Member Smith, seeks to amend Section 7027.2 of the Business and Professions Code, focusing on the regulations governing unlicensed contractors. The existing law permits individuals without a contractor's license to advertise construction work only if the combined contract price, including labor and materials, does not exceed $500. Under the proposed amendments, the bill allows individuals to advertise for construction work as long as the contract price for labor alone remains under the $500 threshold, while still requiring the advertisement to declare that the individual is unlicensed. This change aims to provide clarity and fairness within the advertising provisions for unlicensed contractors.
Critics of AB 1874 may argue that loosening advertising restrictions for unlicensed contractors could lead to an increase in unqualified individuals performing work without the necessary oversight or standards that licensed contractors must adhere to. This could result in subpar work, disputes over job quality, and safety issues. Additionally, there may be opposition from licensed contractors who feel that the bill undermines their professional standards and market conditions, potentially leading to a devaluation of licensed contractor work.