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SB-517 • 2026

Home improvement contract requirements: subcontractors.

Home improvement contract requirements: subcontractors.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Niello
Last action
2025-10-10
Official status
Chaptered by Secretary of State. Chapter 585, Statutes of 2025.
Effective date
Not listed

Plain English Breakdown

It's unclear when exactly the bill becomes effective as no specific date is mentioned in the official source material.

Home Improvement Contract Rules for Subcontractors

This law makes changes to home improvement contracts, especially regarding subcontractors.

What This Bill Does

  • Makes the main contractor responsible for completing a project according to the contract and plans.
  • Requires home improvement contracts to tell customers if subcontractors will be used on their projects.

Who It Names or Affects

  • Homeowners who get home improvements done.
  • Contractors and subcontractors working on home improvement projects.

Terms To Know

Prime or direct contractor
The main company that a homeowner hires to do work on their house.
Subcontractor
A smaller company hired by the main contractor to help with specific parts of a project.

Limits and Unknowns

  • This law only applies if it and another bill, AB 1327, are both passed.
  • The exact date this law will start is not clear from the information provided.

Bill History

  1. 2025-10-10 California Legislative Information

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

  2. 2025-10-10 California Legislative Information

    Approved by the Governor.

  3. 2025-09-22 California Legislative Information

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

  4. 2025-09-11 California Legislative Information

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

  5. 2025-09-08 California Legislative Information

    In Senate. Concurrence in Assembly amendments pending.

  6. 2025-09-08 California Legislative Information

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

  7. 2025-09-03 California Legislative Information

    Ordered to third reading.

  8. 2025-09-03 California Legislative Information

    Read third time and amended.

  9. 2025-08-18 California Legislative Information

    Ordered to third reading.

  10. 2025-08-18 California Legislative Information

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

  11. 2025-07-17 California Legislative Information

    Read second time. Ordered to consent calendar.

  12. 2025-07-16 California Legislative Information

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

  13. 2025-07-09 California Legislative Information

    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.

  14. 2025-06-24 California Legislative Information

    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.

  15. 2025-05-29 California Legislative Information

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

  16. 2025-05-15 California Legislative Information

    In Assembly. Read first time. Held at Desk.

  17. 2025-05-15 California Legislative Information

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

  18. 2025-05-13 California Legislative Information

    Read second time. Ordered to consent calendar.

  19. 2025-05-12 California Legislative Information

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

  20. 2025-05-06 California Legislative Information

    Set for hearing May 12.

  21. 2025-05-01 California Legislative Information

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

  22. 2025-04-30 California Legislative Information

    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).

  23. 2025-04-21 California Legislative Information

    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.

  24. 2025-04-08 California Legislative Information

    Set for hearing April 29 in JUD. pending receipt.

  25. 2025-03-18 California Legislative Information

    Set for hearing April 21.

  26. 2025-02-26 California Legislative Information

    Referred to Coms. on B. P. & E.D. and JUD.

  27. 2025-02-20 California Legislative Information

    From printer. May be acted upon on or after March 22.

  28. 2025-02-19 California Legislative Information

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 517, Niello.
Home improvement contract requirements: subcontractors.
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 requires specific provisions and requirements for home improvement contracts, as defined.
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 also specify that, for purposes of administrative discipline under the Contractors State License Law, the prime or
direct contractor is responsible for completion of the project in accordance with the home improvement contract, plans, and specifications. The bill would also provide that this prime or direct contractor responsibility does not preclude administrative discipline against any subcontractor or home improvement salesperson on a home improvement contract for a violation of that law.
The bill would further require a home improvement contract to contain a disclosure regarding whether or not a subcontractor will be used on the project, as specified.
This bill would incorporate additional changes to Section 7159 of the Business and Professions Code proposed by AB 1327 to be operative only if this bill and AB 1327 are enacted and this bill is enacted last.

Current Bill Text

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