California AB559 regulates home improvement contracts, setting financial limits and requiring disclosures.

California AB559 amends the Business and Professions Code to regulate home improvement contracts. It mandates that contracts must be in writing and include a detailed schedule of payments. Downpayments are capped at $1,000, and any payment exceeding $10,000 before work completion is prohibited unless a performance and payment bond is provided. Contractors must furnish unconditional releases from lien claimants upon payment. Violations resulting in consumer financial loss over 10% of the contract amount can lead to license revocation and civil penalties.

California AB559 regulates home improvement contracts, setting financial limits and requiring disclosures.

California AB559 amends the Business and Professions Code to regulate home improvement contracts. It mandates that contracts must be in writing and include a detailed schedule of payments. Downpayments are capped at $1,000, and any payment exceeding $10,000 before work completion is prohibited unless a performance and payment bond is provided. Contractors must furnish unconditional releases from lien claimants upon payment. Violations resulting in consumer financial loss over 10% of the contract amount can lead to license revocation and civil penalties.