The Advocacy Update: September 10, 2025
September 10, 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:
- With the legislative session in California set to adjourn this Friday, legislators are rushing to see the bills covered this week passed in time.
- Restorers' Rights: AB 559, which has already passed the state Assembly and PolicyNote predicts has a 91% chance of passing the Senate, was moved to the inactive file by its co-sponsor. AB 1327, however, was ordered to a third reading.
- According to the California glossary of legislative terms, the inactive file is the portion of the Daily File containing legislation that is ready for floor consideration, but, for a variety of reasons, is dormant. An author may move a bill to the inactive file and move it off the inactive file at a later date. During the final weeks of the legislative session, measures may be moved there by the leadership as a method of encouraging authors to take up their bills promptly.
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 during declared states of emergency. The bill would require the Department of Consumer Affairs to be notified in writing of any waiver approved, and would prohibit the waiver from taking effect for a period of 5 business days after the director receives the notification from the board. 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), passing an approved hazardous substance certification examination, and complying with specific occupational safety and health requirements.
If enacted, SB 641 would take immediate effect and would provide greater clarity to restoration contracting in California, improving access to consumer-protecting restoration contracting in the event of natural disasters. However, the five-day waiting period still slows immediate response by restoration contractors. 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, in both of which it passed unanimously. Most recently, the bill has been amended on the floor and ordered to a third reading, but due to the amendments, it will need to return to the Senate for concurrence.
Restoration Insurance
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 most recently been ordered to a third reading on the Assembly floor; PolicyNote predicts the bill has a 60% chance of passing the Assembly, but the bill has not seen movement since September 3rd and would need to return to the Senate due to amendments.
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. Under current state law, all home improvement cases are prohibited from down payments 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. However, while this bill was ordered to a third reading, one of the co-sponsors, Senator Roger Niello (R-6), requested that the bill be moved to the inactive file, pausing progress on the bill. If enacted, this bill would clarify home improvement contract language and increase penalties against violators of state downpayment and payment prohibitions. This bill could impact RIA by increasing the legal burden on its contractors and establishing new rules around home improvement contracting.
AB 1327 continues to progress in the Senate as it progresses to a second floor reading. This bill provides additional cancellation rights for consumers, requiring that notices of cancellation, in addition to being included in home improvement or home solicitation contracts or offers, also be delivered via email and that the consumer be provided with a phone number to contact for assistance in locating and filling out notices of cancellation. Additionally, this bill enables consumers to file a complaint with the Contractors State Licensing Board (CSLB) if a notice of cancellation is not included in a home improvement contract. This bill has passed the Assembly, and PolicyNote predicts it will pass the Senate as well; most recently, the bill was ordered to a third reading. If enacted, this bill would require contractors, including restoration contractors, to be more forthcoming with contract cancellation options and resources. Furthermore, this bill would increase consumer protections in the event of natural disasters, making it easier for them to cancel contracts.
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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.