Current Status: Pending

FindHOALaw Quick Summary:

Existing law requires the board of directors of a nonprofit corporation or unincorporated association created for the purpose of managing a common interest development to, on a monthly basis, review specified documents, including account statements, reconciliations, and ledgers, unless the association’s governing documents impose more stringent standards. Existing law authorizes those review requirements to be met when every individual member of the board, or a subcommittee of the board consisting of the treasurer and at least one other board member, reviews the documents and statements independent of a board meeting, so long as the review is ratified at the board meeting subsequent to the review and that ratification is reflected in the minutes of that meeting.

This bill would repeal the provisions of Civil Code Section 5501 authorizing the review requirements to be met when individual members or a subcommittee of the board review the documents and statements independent of a board meeting as described above.

Current Status: Pending

FindHOALaw Quick Summary:

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.

This bill would amend Business & Professions Code Section 7159 to require a home improvement contract with a subcontractor performing more than 50% of the total estimated project cost to contain the name and contact information of the subcontractor.

**SB-517 was amended on May 1, 2025, to require that the prime or direct contractor is responsible for completion of the project in accordance with the contract, plans, and specifications. However, this responsibility does not preclude administrative discipline from the Contractor’s State License Board against any subcontractor for a violation of that law. The bill would further require a home improvement contract to contain a disclosure regarding whether a subcontractor will be used on the project:

(B) For purposes of administrative discipline under this chapter, the prime or direct contractor is responsible for completion of the project in accordance with the home improvement contract, plans, and specifications. This prime or direct contractor responsibility shall not preclude administrative discipline against any subcontractor or home improvement salesperson on a home improvement contract for violation of this chapter.

(7)If the contractor has a subcontractor performing more than 50 percent of the total estimated project cost, the contract shall contain the name and contact information of the subcontractor.

(7) (A) The contract shall contain a statement regarding whether or not a subcontractor will be used on the project, including a portion to be checked in response, as follows:
[__] Yes
[__] No
(B) If checked “Yes,” indicating that a subcontractor will be used on the project, the contract shall contain a disclaimer that states the following:
“One or more subcontractors will be used on this project, and the contractor is aware that a list of subcontractors is required to be provided, upon request, along with the names, contact information, license number, and classification of those subcontractors.”
(C) If there is a change order during the project, the same disclaimer set forth in subparagraph (B) shall be on each change order.