AB 851

Current law allows consumers to cancel certain contracts for repairs or

construction of one-family or two-family dwellings under specified circumstances.

If work under the contract is to be paid under a property insurance policy and the

insurer wholly or partially denies the consumer's claim, current law allows the

consumer to cancel the contract if he or she provides a cancellation notice to the

contractor before a specified deadline. Subject to an exception that applies if the

contractor has performed emergency services, current law requires the contractor to

return to the consumer any payments and other items within 10 days after receiving

the cancellation notice. However, current law also requires the contractor to provide

the consumer with a form before entering into the contract, and that form includes

a statement that the contractor must return payments within 10 business days,

rather than 10 days, after receiving a cancellation notice. This bill revises the form

so that it refers to 10 days instead of 10 business days.

For further information, see the

Note

provided by the Law Revision Committee

of the Joint Legislative Council.