California 2025-2026 Regular Session

California Assembly Bill AB1327

Introduced
2/21/25  
Refer
3/17/25  
Report Pass
4/2/25  
Refer
4/7/25  
Report Pass
4/22/25  
Refer
4/22/25  
Report Pass
4/30/25  
Engrossed
5/8/25  
Refer
5/8/25  
Refer
5/21/25  
Report Pass
6/19/25  
Refer
6/19/25  
Report Pass
7/2/25  

Caption

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

Impact

The implementation of AB 1327 is set to strengthen consumer rights under the existing California Contractors State License Law by allowing buyers to file complaints with the Contractors State License Board if a cancellation notice is not properly included in home improvement contracts. This adds a layer of accountability for contractors and ensures that consumers are adequately informed of their cancellation rights. The inclusion of electronic communication options is expected to modernize contract practices and encourage better compliance from sellers who may have previously relied solely on paper notifications.

Summary

Assembly Bill 1327, introduced by Assembly Member Aguiar-Curry, aims to enhance consumer protection in home improvement and home solicitation contracts by amending existing state regulations. The bill mandates that sellers provide a cancellation notice that can be delivered via email and requires the inclusion of a seller's email address and a support line in the contract. This change would simplify the process for consumers who wish to cancel their contracts, ensuring they have clear and accessible options to do so. The bill also emphasizes the importance of providing adequate notification to buyers about their rights to cancel, especially for vulnerable groups such as senior citizens.

Sentiment

The sentiment regarding AB 1327 appears generally positive among consumer advocacy groups, which have highlighted the importance of clearer contract terms and improved buyer rights. However, there may be concerns from contractors regarding the additional administrative burden and potential backlash from consumers unfamiliar with the new processes. Overall, the intention behind the legislation aligns with a consumer-friendly approach that seeks to protect buyers from predatory practices in home improvement dealings.

Contention

Notable points of contention during discussions about AB 1327 seem to revolve around the balance between effective consumer protection and the operational implications for contractors. Some industry representatives may argue that the increased requirements for cancellation notices could hinder their business operations or lead to increased costs of compliance. Nevertheless, proponents of the bill assert that these measures will ultimately benefit honest contractors and consumers by fostering a fairer marketplace.

Companion Bills

No companion bills found.

Previously Filed As

CA AB2993

Home improvement and home solicitation: right to cancel contracts: loan financing regulation.

CA SB601

Professions and vocations: contractors: home improvement contracts: prohibited business practices: limitation of actions.

CA AB1985

Home solicitation contracts.

CA SB1096

Mailed solicitations: disclosure statement.

CA AB1883

Insurance: home protection contracts.

CA SB1455

Contractors: licensing.

CA AB2528

Williamson Act contracts: cancellation: energy projects.

CA SB1295

Automobile insurance: notice of cancellation.

CA SB630

Contractors State License Board: regulation of contractors.

CA AB1849

Song-Beverly Consumer Warranty Act: services and repairs: travel trailers and motor homes.

Similar Bills

CA SB784

Home improvement loans: right to cancel contracts.

CA SB517

Home improvement contract requirements: subcontractors.

CA AB2993

Home improvement and home solicitation: right to cancel contracts: loan financing regulation.

CA AB2471

Senior citizens: rescission of contracts.

CA SB304

Contractors: exemptions.

CA SB904

Alarm companies: business conditions: limited liability companies.

CA SB1474

Business and professions.