7150.  "Person" as used in this article is limited to natural
persons, notwithstanding the definition of person in Section 7025.



7150.1.  A home improvement contractor, including a swimming pool
contractor, is a contractor as defined and licensed under this
chapter who is engaged in the business of home improvement either
full time or part time.  A home improvement contractor shall satisfy
all requirements imposed by this article.



7150.2.  (a) On or before January 1, 1999, the board shall establish
a certification program for home improvement contractors.  The board
shall certify as home improvement contractors individuals,
partnerships, corporations, or other combinations or organizations
that perform or provide home improvement goods or services, as
defined in Section 7151, and that meet the requirements set forth in
Section 7150.3.
   (b) The board shall publish a booklet containing information
relative to the business of a home improvement contractor that shall
be distributed to contractors upon request.  At the board's
discretion, it may charge an amount not to exceed the cost of
publication.
   (c) On and after July 1, 2000, a contractor may not engage in the
business of home improvement or provide home improvement goods or
services, as defined in Section 7151, unless the contractor is
certified as a home improvement contractor.
   (d) This section shall remain in effect only until January 1,
2004, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2004, deletes or extends
that date.



7150.3.  (a) In order to qualify for certification as a home
improvement contractor, an applicant shall do all of the following:
   (1)  Apply to the board on a form prescribed by the registrar.
   (2)  Hold a current and valid contractor's license.
   (3)  Take and pass an open book examination on the business and
contracting skills and laws related to home improvement contracting.
In the case of a partnership, corporation, or other entity, in the
situation in which the contractor's license has been obtained by
appearance of a qualifying individual, that qualifying individual
shall take and pass the examination.
   (b) This section shall remain in effect only until January 1,
2004, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2004, deletes or extends
that date.



7151.  "Home improvement" means the repairing, remodeling, altering,
converting, or modernizing of, or adding to, residential property
and shall include, but not be limited to, the construction, erection,
replacement, or improvement of driveways, swimming pools, including
spas and hot tubs, terraces, patios, awnings, storm windows,
landscaping, fences, porches, garages, fallout shelters, basements,
and other improvements of the structures or land which is adjacent to
a dwelling house.  "Home improvement" shall also mean the
installation of home improvement goods or the furnishing of home
improvement services.
   For purposes of this chapter, "home improvement goods or services"
means goods and services, as defined in Section 1689.5 of the Civil
Code, which are bought in connection with the improvement of real
property.  Such home improvement goods and services include, but are
not limited to, carpeting, texture coating, fencing, air conditioning
or heating equipment, and termite extermination.  Home improvement
goods include goods which are to be so affixed to real property as to
become a part of real property whether or not severable therefrom.



7151.2.  "Home improvement contract" means an agreement, whether
oral or written, or contained in one or more documents, between a
contractor and an owner or between a contractor and a tenant,
regardless of the number of residence or dwelling units contained in
the building in which the tenant resides, if the work is to be
performed in, to, or upon the residence or dwelling unit of  the
tenant, for the performance of a home improvement as defined in
Section 7151, and includes all labor, services, and materials to be
furnished and performed thereunder.  "Home improvement contract" also
means an agreement, whether oral or written, or contained in one or
more documents, between a salesperson, whether or not he or she is a
home improvement salesperson, and (a) an owner or (b) a tenant,
regardless of the number of residence or dwelling units contained in
the building in which the tenant resides, which provides for the
sale, installation, or furnishing of home improvement goods or
services.



7152.  (a) "Home improvement salesperson" is a person employed by a
home improvement contractor licensed under this chapter to solicit,
sell, negotiate, or execute contracts for home improvements, for the
sale, installation or furnishing of home improvement goods or
services, or of swimming  pools, spas, or hot tubs.
   (b) The following shall not be required to be registered as home
improvement salespersons:
   (1) An officer of record of a corporation licensed pursuant to
this chapter.
   (2) A qualifying person, as defined in Section 7068.
   (3) A salesperson whose sales are all made pursuant to
negotiations between the parties if the negotiations are initiated by
the prospective buyer at or with a general merchandise retail
establishment that operates from a fixed location where goods or
services are offered for sale.
   (4) A person who contacts the prospective buyer for the exclusive
purpose of scheduling appointments for a registered home improvement
salesperson.
   (5) A bona fide service repairperson who is in the employ of a
licensed contractor and whose repair or service call is limited to
the service, repair, or emergency repair initially requested by the
buyer of the service.



7153.  (a) It is a misdemeanor for any person to engage in the
occupation of salesperson for one or more home improvement
contractors within this state without having a registration issued by
the registrar for each of the home improvement contractors by whom
he or she is employed as a home improvement salesperson.  If, upon
investigation, the registrar has probable cause to believe that a
salesperson is in violation of this section, the registrar may issue
a citation pursuant to Section 7028.7.
   It is a misdemeanor for any person to engage in the occupation of
salesperson of home improvement goods or services within this state
without having a registration issued by the registrar.
   (b) Any security interest taken by a contractor, to secure any
payment for the performance of any act or conduct described in
Section 7151 that occurs on or after January 1, 1995, is
unenforceable if the person soliciting the act or contract was not a
duly registered salesperson or was not exempt from registration
pursuant to Section 7152 at the time the homeowner signs the home
improvement contract solicited by the salesperson.




7153.1.  The home improvement salesman shall submit to the registrar
an application in writing containing the statement that he desires
the issuance of a registration under the terms of this article.
   The application shall be made on a form prescribed by the
registrar and shall be accompanied by the fee fixed by this chapter.

   The registrar may refuse to register the applicant under the
grounds specified in Section 480.



7153.2.  All registrations issued under the provisions of this
article shall expire on a date established pursuant to Section 152.6.



7153.3.  (a) To renew a registration, the registrant shall before
the time at which the registration would otherwise expire, apply for
renewal on a form prescribed by the registrar and pay a renewal fee
prescribed by this chapter.
   (b) An application for renewal of registration is delinquent if
the application is not postmarked by the date on which the
registration would otherwise expire.  A registration may, however,
still be renewed at any time within three years after its expiration
upon the filing of an application for renewal on a form prescribed by
the registrar and the payment of the renewal fee prescribed by this
chapter and a delinquent renewal penalty in the amount of twenty-five
dollars ($25).  If a registration is not renewed within three years,
the person shall make application for registration pursuant to
Section 7153.1.
   (c) The registrar may refuse to renew a registration for failure
by the registrant to complete the application for renewal of
registration.  If a registrant fails to return the application
rejected for insufficiency or incompleteness within 90 days from the
original date of rejection, the application and fee shall be deemed
abandoned.  Any application abandoned may not be reinstated.
However, the person may file a new application for registration
pursuant to Section 7153.1.
   The registrar may review and accept the petition of a person who
disputes the abandonment of his or her renewal application upon a
showing of good cause.  This petition shall be received within 90
days of the date the application for renewal is deemed abandoned.




7154.  A home improvement contractor who employs a person to sell
home improvement contracts while such person is not registered by the
registrar as a home improvement salesman as provided in this
article, is subject to disciplinary action by the registrar.




7155.  Violation of any provision of this chapter by a home
improvement salesman constitutes cause for disciplinary action.  The
registrar may suspend or revoke the registration of the home
improvement salesman if he is found to be in violation.  The
disciplinary proceedings shall be conducted in accordance with the
provisions of Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code.



7155.5.  Violations of any provisions of this chapter by a home
improvement  salesperson, likewise constitutes a cause for
disciplinary action against the contractor, whether or not he or she
had knowledge of or participated in the act or omission constituting
violations of this chapter.



7156.  It shall be a misdemeanor and a cause for disciplinary action
to commit any of the following acts:
   (a) For any salesperson to fail to account for or to remit to his
or her employing contractor any payment received in connection with
any home improvement transaction or any other transaction involving a
work of improvement.
   (b) For any person to use a contract form in connection with any
home improvement transaction or any other transaction involving a
work of improvement if the form fails to disclose the name of the
contractor principal by whom he or she is employed.



7157.  (a) Except as otherwise provided in subdivision (b), as a
part of or in connection with the inducement to enter into any home
improvement contract or other contract, which may be performed by a
contractor, no person may promise or offer to pay, credit, or allow
to any owner, compensation or reward for the procurement or placing
of home improvement business with others.
   (b) A contractor or his or her agent or salesperson may give
tangible items to prospective customers for advertising or sales
promotion purposes where the gift is not conditioned upon obtaining a
contract for home improvement work if the gift does not exceed a
value of five dollars ($5) and only one such gift is given in
connection with any one transaction.
   (c) No salesperson or contractor's agent may accept any
compensation of any kind, for or on account of a home improvement
transaction, or any other transaction involving a work of
improvement, from any person other than the contractor whom he or she
represents with respect to the transaction, nor shall the
salesperson or agent make any payment to any person other than his or
her employer on account of the sales transaction.
   (d) No contractor shall pay, credit, or allow any consideration or
compensation of any kind to any other contractor or salesperson
other than a licensee for or on account of the performance of any
work of improvement or services, including, but not limited to, home
improvement work or services, except:  (1) where the person to or
from whom the consideration is to be paid is not subject to or is
exempted from the licensing requirements of this chapter, or (2)
where the transaction is not subject to the requirements of this
chapter.
   As used in this section "owners" shall also mean "tenant."
   Commission of any act prohibited by this section is a misdemeanor
and constitutes a cause for disciplinary action.



7158.  (a) Any person who shall accept or receive a completion
certificate or other evidence that performance of a contract for a
work of improvement, including but not limited to a home improvement,
is complete or satisfactorily concluded, with knowledge that the
document is false and that the performance is not substantially
completed, and who shall utter, offer, or use the document in
connection with the making or accepting of any assignment or
negotiation of the right to receive any payment from the owner, under
or in connection with a contract, or for the purpose of obtaining or
granting any credit or loan on the security of the right to receive
any payment shall be guilty of a misdemeanor and subject to a fine of
not less than five hundred dollars ($500) nor more than five
thousand dollars ($5,000), or to imprisonment in the county jail for
a term of not less than one month nor more than one year, or both.
   (b) Any person who violates this section as part of a plan or
scheme to defraud an owner of a residential or nonresidential
structure, including a mobilehome or manufactured home, in connection
with the offer or performance of repairs to the structure for damage
caused by a natural disaster, shall be ordered by the court to make
full restitution to the victim based on the person's ability to pay,
as defined in subdivision (e) of Section 1203.1b of the Penal Code.
In addition to full restitution, and imprisonment authorized by
subdivision (a), the court may impose a fine of not less than five
hundred dollars ($500) nor more than twenty-five thousand dollars
($25,000), based upon the defendant's ability to pay.  This
subdivision applies to natural disasters for which a state of
emergency is proclaimed by the Governor pursuant to Section 8625 of
the Government Code or for which an emergency or major disaster is
declared by the President of the United States.



7159.  This section applies only to home improvement contracts, as
defined in Section 7151.2, between a contractor, whether a general
contractor or a specialty contractor, who is licensed or subject to
be licensed pursuant to this chapter with regard to the transaction
and who contracts with an owner or tenant for work upon a residential
building or structure, or upon land adjacent thereto, for proposed
repairing, remodeling, altering, converting, modernizing, or adding
to the residential building or structure or land adjacent thereto,
and where the aggregate contract price specified in one or more
improvement contracts, including all labor, services, and materials
to be furnished by the contractor, exceeds five hundred dollars
($500).
   Every home improvement contract and every contract, the primary
purpose of which is the construction of a swimming pool, is subject
to this section.  Every contract and any changes in the contract
subject to this section shall be evidenced by a writing and shall be
signed by all the parties to the contract.  The writing shall contain
all of the following:
   (a) The name, address, and license number of the contractor, and
the name and registration number of any salesperson who solicited or
negotiated the contract.
   (b) The approximate dates when the work will begin and on which
all construction is to be completed.
   (c) A plan and scale drawing showing the shape, size, dimensions,
and construction and equipment specifications for a swimming pool and
for other home improvements, a description of the work to be done
and description of the materials to be used and the equipment to be
used or installed, and the agreed consideration for the work.
   (d) If the payment schedule contained in the contract provides for
a downpayment to be paid to the contractor by the owner or the
tenant before the commencement of work, the downpayment may not
exceed two hundred dollars ($200) or 2 percent of the contract price
for swimming pools, or one thousand dollars ($1,000) or 10 percent of
the contract price for other home improvements, excluding finance
charges, whichever is less.
   (e) A schedule of payments showing the amount of each payment as a
sum in dollars and cents.  In no event may the payment schedule
provide for the contractor to receive, nor may the contractor
actually receive, payments in excess of 100 percent of the value of
the work performed on the project at any time, excluding finance
charges, except that the contractor may receive an initial
downpayment authorized by subdivision (d).  With respect to a
swimming pool contract, the final payment may be made at the
completion of the final plastering phase of construction, provided
that any installation or construction of equipment, decking, or
fencing required by the contract is also completed.  A failure by the
contractor without lawful excuse to substantially commence work
within 20 days of the approximate date specified in the contract when
work will begin shall postpone the next succeeding payment to the
contractor for that period of time equivalent to the time between
when substantial commencement was to have occurred and when it did
occur.  The schedule of payments shall be stated in dollars and
cents, and shall be specifically referenced to the amount of work or
services to be performed and to any materials and equipment to be
supplied.  With respect to a contract that provides for a schedule of
monthly payments to be made by the owner or tenant and for a
schedule of payments to be disbursed to the contractor by a person or
entity to whom the contractor intends to assign the right to receive
the owner's or tenant's monthly payments, the payments referred to
in this subdivision mean the payments to be disbursed by the assignee
and not those payments to be made by the owner or tenant.
   (f) A statement that, upon satisfactory payment being made for any
portion of the work performed, the contractor shall, prior to any
further payment being made, furnish to the person contracting for the
home improvement or swimming pool a full and unconditional release
from any claim or mechanic's lien pursuant to Section 3114 of the
Civil Code for that portion of the work for which payment has been
made.
   (g) The requirements set forth in subdivisions (d), (e), and (f)
do not apply when the contract provides for the contractor to furnish
a performance and payment bond, lien and completion bond, bond
equivalent, or joint control approved by the registrar covering full
performance and completion of the contract and the bonds or joint
control is or are furnished by the contractor, or when the parties
agree for full payment to be made upon or for a schedule of payments
to commence after satisfactory completion of the project.  The
contract shall contain, in close proximity to the signatures of the
owner and contractor, a notice in at least 10-point type stating that
the owner or tenant has the right to require the contractor to have
a performance and payment bond.
   (h) No extra or change-order work may be required to be performed
without prior written authorization of the person contracting for the
construction of the home improvement or swimming pool.  No
change-order is enforceable against the person contracting for home
improvement work or swimming pool construction unless it clearly sets
forth the scope of work encompassed by the change-order and the
price to be charged for the changes.  Any change-order forms for
changes or extra work shall be incorporated in, and become a part of,
the contract.  Failure to comply with the requirements of this
subdivision does not preclude the recovery of compensation for work
performed based upon quasi-contract, quantum meruit, restitution, or
other similar legal or equitable remedies designed to prevent unjust
enrichment.
   (i) If the contract provides for a payment of a salesperson's
commission out of the contract price, that payment shall be made on a
pro rata basis in proportion to the schedule of payments made to the
contractor by the disbursing party in accordance with subdivision
(e).
   (j) The language of the notice required pursuant to Section
7018.5.
   (k) What constitutes substantial commencement of work pursuant to
the contract.
   (l) A notice that failure by the contractor without lawful excuse
to substantially commence work within 20 days from the approximate
date specified in the contract when work will begin is a violation of
the Contractors' State License Law.
   (m) If the contract provides for a contractor to furnish joint
control, the contractor shall not have any financial or other
interest in the joint control.
   A failure by the contractor without lawful excuse to substantially
commence work within 20 days from the approximate date specified in
the contract when work will begin is a violation of this section.
   This section does not prohibit the parties to a home improvement
contract from agreeing to a contract or account subject to Chapter 1
(commencing with Section 1801) of Title 2 of Part 4 of Division 3 of
the Civil Code.
   The writing may also contain other matters agreed to by the
parties to the contract.
   The writing shall be legible and shall be in a form that clearly
describes any other document that is to be incorporated into the
contract.  Before any work is done, the owner shall be furnished a
copy of the written agreement, signed by the contractor.
   For purposes of this section, the board shall, by regulation,
determine what constitutes "without lawful excuse."
   The provisions of this section are not exclusive and do not
relieve the contractor or any contract subject to it from compliance
with all other applicable provisions of law.
   A violation of this section by a licensee, or a person subject to
be licensed, under this chapter, or by his or her agent or
salesperson, is a misdemeanor punishable by a fine of not less than
one hundred dollars ($100) nor more than five thousand dollars
($5,000), or by imprisonment in the county jail not exceeding one
year, or by both that fine and imprisonment.
   (n) Any person who violates this section as part of a plan or
scheme to defraud an owner of a residential or nonresidential
structure, including a mobilehome or manufactured home, in connection
with the offer or performance of repairs to the structure for damage
caused by a natural disaster, shall be ordered by the court to make
full restitution to the victim based on the person's ability to pay,
as defined in subdivision (e) of Section 1203.1b of the Penal Code.
In addition to full restitution, and imprisonment authorized by this
section, the court may impose a fine of not less than five hundred
dollars ($500) nor more than twenty-five thousand dollars ($25,000),
based upon the defendant's ability to pay.  This subdivision applies
to natural disasters for which a state of emergency is proclaimed by
the Governor pursuant to Section 8625 of the Government Code or for
which an emergency or major disaster is declared by the President of
the United States.
   (o) (1) An indictment or information against a person who is not
licensed, but who is required to be licensed under this chapter,
shall be brought, or a criminal complaint filed, for a violation of
this section within four years from the date the buyer signs the
contract.
   (2) An indictment or information against a person who is licensed
under this chapter shall be brought, or a criminal complaint filed,
for a violation of this section within one year from the date the
buyer signs the contract.
   (3) The limitations on actions in this subdivision shall not apply
to any administrative action filed against a licensed contractor.




7159.1.  In any contract for the sale of home improvement goods or
services offered by door-to-door sale that contains or is secured by
a lien on real property, the contract shall be accompanied by the
following notice in 18-point boldfaced type:
   "WARNING TO BUYER:  IF YOU SIGN THE CONTRACT WHICH ACCOMPANIES
THIS NOTICE, YOU WILL BE PUTTING UP YOUR HOME AS SECURITY.  THIS
MEANS THAT YOUR HOME COULD BE SOLD WITHOUT YOUR PERMISSION AND
WITHOUT ANY COURT ACTION IF YOU MISS ANY PAYMENT REQUIRED BY THIS
CONTRACT."
   This notice shall be written in the same language as the rest of
the contract.  It shall be on a separate piece of paper from the rest
of the contract and shall be signed and dated by the buyer.  The
home improvement contractor or home improvement salesperson shall
deliver to the buyer at the time of the buyer's signing and dating of
the notice a legible copy of the signed and dated notice.  A
security interest created in any contract described in this section
that does not provide the notice as required by this section shall be
void and unenforceable.
   This section shall not apply to any of the following:
   (a) Any contract that is subject to Chapter 1 (commencing with
Section 1801) of Title 2 of Part 4 of Division 3 of the Civil Code.
   (b) A mechanic's lien established pursuant to Chapter 2
(commencing with Section 3109) of Title 15 of Part 4 of Division 3 of
the Civil Code.
   (c) Any contract that is subject to subdivision (a) of Section
7159.2.


7159.2.  (a) No home improvement goods or services contract of a
value of five thousand dollars ($5,000) or less shall provide for a
security interest in real property, except for a mechanic's lien or
other interest in property that arises by operation of law.  Any lien
in violation of this subdivision is void and unenforceable.
   (b) When the proceeds of a loan secured by a mortgage on real
property are used to fund goods or services pursuant to a home
improvement goods or services contract of more than five thousand
dollars ($5,000), the person or entity making the loan shall only pay
a contractor under the home improvement goods or services contract
from the proceeds of the loan by either of the following methods:
   (1) By an instrument payable to the borrower or jointly to the
borrower and the contractor.
   (2) At the election of the borrower, through a third-party escrow
agent pursuant to the terms of a written agreement signed by the
borrower, the person or entity making the loan, and the contractor
prior to the disbursement.
   (c) Any person or entity who violates any provision of this
section shall be liable for actual damages suffered by the borrower
for damages that proximately result from the violation.
   (d) Any person or entity who intentionally or as a pattern or
practice violates any provision of this section shall be additionally
liable for three times the contract price for the home improvement.

   (e) Any person who is a senior citizen or disabled person, as
defined in subdivisions (f) and (g) of Section 1761 of the Civil
Code, as part of any action for a violation of this section, may seek
and be awarded, in addition to the remedies provided in this
section, up to five thousand dollars ($5,000) as provided in
subdivision (b) of Section 1780 of the Civil Code.
   (f) The court shall award court costs and attorney's fees to a
prevailing plaintiff in an action brought pursuant to this section.
Reasonable attorney's fees may be awarded to a prevailing defendant
upon a finding by the court that the plaintiff's prosecution of the
action was not in good faith.



7159.3.  (a) A home improvement contract and an estimate for home
improvement work shall be accompanied by and include all of the
following:
   (1) A statement prepared by the board through regulation that
emphasizes the value of commercial general liability insurance and
encourages the owner or tenant to verify the contractor's insurance
coverage and status.
   (2) A check box indicating whether or not the contractor carries
commercial general liability insurance, and if that is the case, the
name and the telephone number of the insurer.
   (3) A checklist prepared by the board through regulation setting
forth the items that an owner contracting for home improvement should
consider when reviewing a proposed home improvement contract.
   (b) This section shall become operative three months after the
board adopts the regulations referenced in paragraph (1) of
subdivision (a).



7160.  Any person who is induced to contract for a work of
improvement, including but not limited to a home improvement, in
reliance on false or fraudulent representations or false statements
knowingly made, may sue and recover from such contractor or solicitor
a penalty of five hundred dollars ($500), plus reasonable attorney's
fees, in addition to any damages sustained by him by reason of such
statements or representations made by the contractor or solicitor.



7161.  It is a misdemeanor for any person to engage in any of the
following acts, the commission of which shall be cause for
disciplinary action against any licensee or applicant:
   (a) Using false, misleading, or deceptive advertising as an
inducement to enter into any contract for a work of improvement,
including, but not limited to, any home improvement contract, whereby
any member of the public may be misled or injured.
   (b) Making any substantial misrepresentation in the procurement of
a contract for a home improvement or other work of improvement or
making any false promise of character likely to influence, persuade
or, induce any person to enter into such a contract.
   (c) Any fraud in the execution of, or in the material alteration
of any contract, trust deed, mortgage, promissory note, or other
document incident to a home improvement transaction or other
transaction involving a work of improvement.
   (d) Preparing or accepting any trust deed, mortgage, promissory
note, or other evidence of indebtedness upon the obligations of a
home improvement transaction or other transaction for a work of
improvement with knowledge that it specifies a greater monetary
obligation than the consideration for the improvement work, which
consideration may be a time sale price.
   (e) Directly or indirectly publishing any advertisement relating
to home improvements or other works of improvement which contains an
assertion, representation or statement of fact which is false,
deceptive, or misleading, or by any means advertising or purporting
to offer to the general public any such improvement work with the
intent not to accept contracts for the particular work or at the
price which is advertised or offered to the public, except that any
advertisement which is subject to and complies with the existing
rules, regulations or guides of the Federal Trade Commission shall
not be deemed false, deceptive or misleading.
   (f) Any person who violates subdivision (b), (c), (d), or (e) as
part of a plan or scheme to defraud an owner of a residential or
nonresidential structure, including a mobilehome or manufactured
home, in connection with the offer or performance of repairs to the
structure for damage caused by a natural disaster, shall be ordered
by the court to make full restitution to the victim based on the
person's ability to pay, as defined in subdivision (e) of Section
1203.1b of the Penal Code.  In addition to full restitution, and
imprisonment as authorized by this section, the court may impose a
fine of not less than five hundred dollars ($500) nor more than
twenty-five thousand dollars ($25,000), based upon the defendant's
ability to pay.  This subdivision applies to natural disasters for
which a state of emergency is proclaimed by the Governor pursuant to
Section 8625 of the Government Code or for which an emergency or
major disaster is declared by the President of the United States.



7162.  (a) Notwithstanding any other provision of law, any
representation by a person licensed pursuant to this chapter with
respect to a trademark or brand name, quality, or size of any goods
or materials, in reference to bathroom fixtures, a sink, stove,
refrigerator, lighting, carpeting and other floor surfaces, burglar
and smoke alarms, paints, textured coatings, siding and other wall
surfaces, insulation, roofing, air conditioning and heating systems,
and appliances, to be provided by the person pursuant to a home
improvement contract, as defined in Section 7151.2, shall set forth,
in writing, in the contract or specifications and shall include a
description of the goods or materials, including any brand name,
model number, or similar designation.
   (b) Failure to install the specific goods or materials as
represented as required by this section constitutes a cause for
disciplinary action under this chapter.



7163.  (a) No contract for home improvement shall be enforceable
against the buyer if the obtaining of a loan for all or a portion of
the contract price is a condition precedent to the contract or if the
contractor provides financing, or in any manner assists the buyer to
obtain a loan or refers the buyer to any person who may loan or
arrange a loan for all or a portion of the contract price unless all
of the following requirements are satisfied:
   (1) The third party, if any, agrees to make the loan.
   (2) The buyer agrees to accept the loan or financing.
   (3) The buyer does not rescind the loan or financing transaction,
within the period prescribed for rescission, pursuant to the federal
Truth in Lending Act (15 U.S.C. Sec. 1601 et seq.) or Regulation Z,
if applicable.
   (b) Until the requirements of paragraphs (1), (2), and (3) of
subdivision (a) are satisfied, it shall be unlawful for the
contractor to do any of the following:
   (1) Deliver any property or perform any services other than
obtaining building permits or other similar services preliminary to
the commencement of the home improvement for which no mechanic's lien
can be claimed.
   (2) Represent in any manner that the contract is enforceable or
that the buyer has any obligation thereunder.
   Any violation of this subdivision shall render the contract
unenforceable.
   (c) If the contract is unenforceable pursuant to subdivision (a)
or subdivision (b), the contractor shall immediately and without
condition return all money, property, and other consideration given
by the buyer.  If the buyer gave any property as consideration and
the contractor does not or cannot return it for whatever reason, the
contractor shall immediately return the fair market value of the
property or its value as designated in the contract, whichever is
greater.  Nothing herein shall prohibit a contractor from receiving a
downpayment otherwise permitted by law provided the contractor
returns the downpayment as herein required if the contract is
unenforceable pursuant to subdivision (a) or (b).
   (d) (1) Except as provided in paragraph (2), the buyer may retain
without obligation in law or equity any services or property provided
pursuant to a contract that is unenforceable pursuant to subdivision
(a) or subdivision (b).
   (2) If the contractor has delivered any property to the buyer
pursuant to a contract which is unenforceable pursuant to subdivision
(a) or subdivision (b), the buyer shall make the property available
to the contractor for return provided that all of the following
requirements are satisfied:
   (A) The property can be practically returned to the contractor
without causing any damage to the buyer.
   (B) The contractor, at the contractor's expense, first returns to
the buyer any money, property, and other consideration taken by the
contractor provided that the property is returned in the condition
that it was in immediately prior to its taking.  If applicable, the
contractor shall also, at its expense, reinstall any property taken
in the manner in which the property had been installed prior to its
taking.
   (C) The contractor, at the contractor's expense, picks up the
property within 60 days  of the execution of the contract.
   (e) For the purpose of this section, "home improvement" means
"home improvement" as defined in Section 7151.  Goods are included
within the definition notwithstanding whether they are to be attached
to real property or to be so affixed to real property as to become a
part thereof whether or not severable therefrom.
   (f) The rights and remedies provided the buyer under this section
are nonexclusive and cumulative to all other rights and remedies
under other laws.
   (g) Any waiver of this section shall be deemed contrary to public
policy and shall be void and unenforceable.  However, the buyer may
waive subdivisions (a) and (b) to the extent that the contract is
executed in connection with the making of emergency repairs or
services that are necessary for the immediate protection of persons
or real or personal property.  The buyer's waiver for emergency
repairs or services shall be in a dated written statement that
describes the emergency, states that the contractor has informed the
buyer of subdivisions (a) and (b) and that the buyer waives those
provisions, and is signed by each owner of the property.  Waivers
made on printed forms are void and unenforceable.



7164.  (a) Notwithstanding Section 7044, every contract and any
changes in a contract, between an owner and a contractor, for the
construction of a single-family dwelling to be retained by the owner
for at least one year shall be evidenced in writing signed by both
parties.
   (b) The writing shall contain the following:
   (1) The name, address, and license number of the contractor.
   (2) The approximate dates when the work will begin and be
substantially completed.
   (3) A legal description of the location where the work will be
done.
   (4) The language of the notice required pursuant to Section
7018.5.
   (5) (A) A statement prepared by the board through regulation that
emphasizes the value of commercial general liability insurance and
encourages the owner to verify the contractor's insurance coverage
and status.
   (B) A check box indicating whether or not the contractor carries
commercial general liability insurance, and if that is the case, the
name and the telephone number of the insurer.
   (c) The writing may also contain other matters agreed to by the
parties to the contract.  The writing shall be legible and shall
clearly describe any other document which is to be incorporated into
the contract.  Prior to commencement of any work, the owner shall be
furnished a copy of the written agreement, signed by the contractor.
The provisions of this section are not exclusive and do not relieve
the contractor from compliance with all other applicable provisions
of law.
   (d) Every contract subject to the provisions of this section shall
contain, in close proximity to the signatures of the owner and
contractor, a notice in at least 10-point bold type or in all capital
letters, stating that the owner has the right to require the
contractor to have a performance and payment bond and that the
expense of the bond may be borne by the owner.
   (e) The requirements in paragraphs (5) of subdivision (b) shall
become operative three months after the board adopts the regulations
referenced in subparagrah (A) of paragraph (5) of subdivision (b).




7165.  The requirements of this section may be substituted for the
requirements of paragraphs (1), (2), and (3) of subdivision (a) of
Section 7163 if a swimming pool contract is to be financed by a
third-party lender and if all the following conditions are met:
   (a) The lender has agreed, in writing, to provide financing to the
buyer for the maximum estimated construction cost of the swimming
pool.
   (b) The lender has provided the buyer a written copy of the terms
and conditions of the loan for the maximum estimated construction
cost of the swimming pool, including the following terms disclosed in
the manner required by the federal Truth in Lending Act and
Regulation Z:  the annual percentage rate, the finance charge, the
amount financed, the total number of payments, the payment schedule,
and a description of the security interest to be taken by the lender.

   (c) The lender has agreed in writing to the following:
   (1) To offer to loan the maximum estimated construction cost on
the terms and conditions disclosed pursuant to subdivision (b).
   (2) If the construction cost of the swimming pool is determined
after the completion of excavation to be less than the maximum
estimated construction cost, to offer to loan the lesser amount
needed to complete the construction of the swimming pool on the same
security as, and at an annual percentage rate and monthly payment
amount not to exceed, that disclosed in subdivision (b).
   The lender's written agreement shall state the duration of the
offer, which shall not be less than 15 days following the completion
of the excavation of the swimming pool.
   (d) The buyer acknowledges receipt of the writings required by
subdivisions (a), (b), and (c) and, no sooner than three business
days after receiving all of these writings, requests on the form
prescribed in subdivision (e) that the contractor begin performance
of the swimming pool contract prior to the expiration of any
rescission period applicable to the loan.
   (e) The request of a buyer, described in subdivision (d), shall be
set forth on a document separate and apart from the swimming pool
contract and shall contain the following notice in at least 10-point
type unless otherwise stated:

      "NOTICE

   Under the law, this contract is not enforceable until:
   (1) A third party agrees to make a loan to finance the
construction cost of the swimming pool;
   (2) You agree to accept the loan; and
   (3) You do not cancel the loan within the period prescribed for
cancellation under the federal Truth in Lending Act or Regulation Z
(usually three business days after the loan is consummated).
   Until the cancellation period is over, the contractor cannot
deliver any materials or perform any services except preliminary
services for which no mechanic's lien can be claimed.
   However, as an alternative to the above, you can ask the
contractor to start work and deliver materials before the
cancellation period on the loan is over if all of the following have
occurred:
   (1) The lender has agreed, in writing, to provide you with
financing for up to the maximum estimated construction cost of the
swimming pool.
   (2) The lender has provided you with a written copy of the terms
and conditions of a loan for the maximum estimated cost, including
the annual percentage rate, the finance charge, the amount financed,
the total of payments, the payment schedule, and a description of the
security interest to be taken by the lender.
   (3) The lender has agreed in writing to offer these terms and
conditions for a period not less than 15 days following completion of
the excavation of the swimming pool.
   (4) Three business days have passed since you received the writing
mentioned in paragraphs (1), (2), and (3), and you then sign a copy
of this form to request that the contractor begin construction of the
swimming pool before the cancellation period on your loan is over.
   The first day you can sign the request for the contractor to begin
construction of the swimming pool is  .(contractor to insert third
business day after buyer receives writings described in subdivisions
(a), (b), and (c))
   If you sign this request, the contractor will be permitted to
immediately begin performance of the contract, and if the contractor
is not paid in accordance with the terms of the contract, he or she
may file a lien against your property for the value of the labor and
materials provided.  (This paragraph shall be printed in 12-point
type.)

      REQUEST

   I/we request that the contractor immediately start construction of
the swimming pool.  ________Date     ______________ Buyer(s)"
   (f) The contractor shall provide the buyer a copy of the buyer's
signed request at the time of signature.
   (g) This section applies to each buyer who signs the swimming pool
contract or the promissory note, other evidence of indebtedness, or
security instrument incident to the loan for swimming pool
construction.
   (h) For the purpose of this section, "business day" has the
meaning provided in Section 9 of the Civil Code.




7166.  The provisions of  Article 10 shall not apply to contracts
for the construction of swimming pools to be built for the use and
enjoyment of other than a single-family unit upon or contiguous to
premises occupied only by a single-family unit, nor shall they apply
to the construction of swimming pools built as part of an original
building plan by the same contractor who builds a single-family
dwelling unit on the premises.



7167.  Any contract the primary purpose of which is the construction
of a swimming pool which does not substantially comply with the
applicable provisions of subdivisions (b), (c), (d), (e), (f), and
(h) of Section  7159, shall be void and unenforceable by the
contractor as contrary to public policy.



7168.  In any action between a person contracting for construction
of a swimming pool and a swimming pool contractor arising out of a
contract for swimming pool construction, the court shall award
reasonable attorney's fees to the prevailing party.