The Advocacy Update: August 27, 2025
August 27th, 2025
Stay informed without the overwhelm. The Advocacy Update delivers clear, curated legislative updates restoration contractors can trust, highlighting the bills, policies, and issues that matter most to your business. Each week, get a quick, actionable overview to keep you prepared and ahead in a rapidly changing landscape.
Key Takeaways:
- All five bills this week are from California, with the legislative session currently set to adjourn on September 12th. In response to the Los Angeles and broader California wildfires, legislation continues to target increasing public safety, consumer protections, and rapid disaster response.
- Disaster Response: Two bills saw movement this week, SB 499 and SB 641, with the latter directly impacting licensing for restoration contractors.
- Restoration Insurance: Two bills progressed this week, both seeking to improve consumer safety and protections. Both SB 784 and SB 429 are predicted to pass the Assembly.
- Restorers' Rights: AB 559, which has already passed the state Assembly and PolicyNote predicts has a 91% chance of passing the Senate, was referred to the suspense file by the Senate Appropriations Committee. Suspense files are a procedure in California through which a closed, vote-only hearing is held to hear and either report bills to the Senate floor, or continue to hold the bill in committee.
Disaster Response
CA SB 641, which has already passed the Senate, seeks to eliminate barriers for contractors involved in disaster response and debris removal. Notably, this bill removes duplicative licensing fees, examination fees, and continuing education requirements. However, the bill specifies that contractors engaged in debris removal must meet certain requirements, including holding one California contractor license (either A, B, or C-12 and C-21), having passed an approved hazardous substance certification examination, and complying with certain occupational safety and health requirements. Further, this bill classifies unsolicited offers to purchase property below fair market value in declared disaster areas as misdemeanors, and enables the Department of Consumer Affairs to revoke the license of any contractor who makes such an offer.
If enacted, SB 641 would take immediate effect and would provide greater clarity to restoration contracting in California, especially when responding to natural disasters. The bill would also protect consumers from bad business practices by increasing the penalty for below-market offers. PolicyNote predicts that this bill is very likely to reach a floor vote in the Assembly, but only has a 45% chance of passing the chamber. However, the bill saw no opposition in the House Committees on Business and Professions or Appropriations.
CA SB 499 was amended and ordered to a third reading this past week. Under the new amendment, local agencies may charge fees on residential developments for public improvements or facilities related to local hazard mitigation plans at any time, as opposed to upon the date of the first certificate of occupancy. Additionally, the bill authorizes local agencies to collect utility service charges related to connections at the time an application is received, regardless of whether those fees exceed the costs incurred by the utility provider, with reasonable cost exemptions given to water and sewer charges. If passed, SB 499 would potentially impose additional front-end costs on residential construction projects.
This bill has passed the Senate, and PolicyNote predicts that it has a high likelihood of passing the Assembly. However, due to the Assembly's amendments, the bill would need to return to the Senate before reaching the Governor’s desk. Senator Stern, the bill's author, emphasized the critical functions that parks serve beyond recreation. He highlights that “parks are more than green space; they are life-saving infrastructure in a climate emergency, so we must be financially creative to keep these spaces prepped and ready to go.” The bill has received support throughout the legislative process from the California Association of Recreation and Park Districts.
Restoration Insurance
CA SB 784 requires lenders to obtain oral confirmation of key loan terms and disclose dealer fees, delays repayment obligations until home improvements are approved, and extends cancellation rights for home solicitation contracts from three to five business days (or five to seven for senior citizens). It also mandates that contracts include detailed information and prohibits contractors from collecting payments for uncompleted work or undelivered materials.
SB 784 enhances consumer protection, with the extended cancellation periods and enhanced disclosure requirements are legislative responses to past issues where consumers may have felt pressured or lacked sufficient time and information to make informed decisions regarding home repairs and loans. This bill was most recently referred to the suspense file, and PolicyNote predicts that this bill is likely to pass the Assembly. The bill allows buyers to waive their right to cancel home solicitation contracts if they are in an emergency situation. The legislation specifies that if a buyer waives their right to cancel, they must be informed of the implications of this waiver, including the fact that they will not have the usual cancellation period to reconsider their decision.
CA SB 429 establishes the Wildfire Safety and Risk Mitigation Program to develop and deploy a public wildfire catastrophe model and provide grants to universities that contribute to wildfire mitigation and safety. The developed plan and data related to it are mandated to be posted publicly on the Program’s website. The bill has already passed the Senate and has been referred to the suspense file by the Assembly Appropriations Committee; PolicyNote predicts the bill has a 77% chance to pass the Assembly.
Restorers Rights
CA AB 559 clarifies contracting language by defining “home improvement” as all construction, erection, installation, replacement, or improvement of accessory dwelling units on residentially zoned property. This means that "replacement" refers to the act of substituting or renewing existing structures or components within the context of home improvement projects. Under current state law, all home improvement cases are prohibited from downpayments exceeding the lesser of $1,000 or 10% of the contract value; contractors are further prohibited from requesting or accepting payment that exceeds the value of work performed or material delivered. While failure to comply with these downpayment and payment prohibitions is a misdemeanor punishable by a fine of between $100-$5,000 or one year of imprisonment, this bill would increase the punishment for violations to revocation of licensure and a civil penalty of at least $10,000, or if the person is unlicensed, a citation and a civil penalty of at least $10,000.
This bill has passed the Assembly, and PolicyNote predicts it has a high chance of passing the Senate. If enacted, this bill would clarify home improvement contract language and increase penalties against violators of state downpayment and payment prohibitions. Most recently, the hearing on this bill was postponed by the Appropriations Committee. This bill could impact RIA by increasing the legal burden on its contractors and establishing new rules around home improvement contracting.
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These weekly updates are part of RIA’s mission to educate, advocate, and elevate the restoration industry—empowering contractors to navigate legislative challenges and shape a stronger future for all.