SB 784: Home improvement loans: right to cancel contracts.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

(1)Existing law generally regulates various types of consumer credit contracts and transactions, including consumer loans, home solicitation contracts and offers, and home improvement businesses and contracts.

This bill would regulate home improvement loans. The bill would require a lender to take specified actions before a consumer executes a contract for a home improvement loan, including obtaining oral confirmation of key terms of the home improvement loan contract, as defined and specified. The bill would require a lender that offers or provides a home improvement loan to make certain information available to the consumer and would prescribe how a lender must respond to requests for information from a consumer. The bill would prohibit a consumer’s repayment obligations under a home improvement loan, as specified, until the lender has taken specified actions.

(2)Existing law authorizes a buyer to cancel certain 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 authorizes a buyer to cancel a home solicitation contract written for certain home improvement work until midnight of the 3rd business day after the buyer receives a signed and dated copy of the contract or offer to purchase that complies with specified requirements. Existing law requires contracts for a home solicitation contract or offer to include a notice of cancellation form with specified statements as to the buyer’s right to cancel. Existing law permits a buyer to provide a seller an express waiver to this right to cancel, if the contract meets other specified requirements.

Existing law requires specific provisions and requirements for home improvement contracts, as defined, that are not governed by the provisions described above. Existing law requires these contracts to include a notice regarding the buyer’s 3-day right to cancel.

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.

This bill would extend those 3-day and 5-day periods to 5-day and 7-day periods, respectively. The bill would also make conforming changes. The bill would apply these new extended periods to transactions on or after January 1, 2026.

Sponsors

Sponsors by party (alphabetical): Democratic 2

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. August 13, 2026August 13 hearing: Held in committee and under submission.
2. August 29, 2025August 29 hearing postponed by committee.
3. August 20, 2025August 20 set for first hearing. Placed on APPR. suspense file.
4. July 17, 2025Read second time and amended. Re-referred to Com. on APPR.
5. July 16, 2025From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 3.) (July 15).
6. July 8, 2025From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 1.) (July 7). Re-referred to Com. on JUD.
7. June 17, 2025June 23 hearing postponed by committee.
8. June 9, 2025Referred to Coms. on B. & F. and JUD.
9. June 3, 2025In Assembly. Read first time. Held at Desk.
10. June 2, 2025Read third time. Passed. (Ayes 27. Noes 2. Page 1379.) Ordered to the Assembly.
11. May 23, 2025From committee: Do pass. (Ayes 5. Noes 0. Page 1213.) (May 23).
12. May 23, 2025Read second time. Ordered to third reading.