Bill Text: CA AB1985 | 2023-2024 | Regular Session | Introduced

California Assembly Bill 1985

CA State Legislature page for AB1985

Introduced

Bill Title: Home solicitation contracts.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-02-12 - Referred to Com. on JUD. [AB1985 Detail]

Download: California-2023-AB1985-Introduced.html

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 1985

Introduced by Assembly Member Joe Patterson

January 30, 2024

An act to amend Section 1689.5 of the Civil Code, relating to contracts.

LEGISLATIVE COUNSEL'S DIGEST

AB 1985, as introduced, Joe Patterson. Home solicitation contracts.

Existing law provides that a contract is extinguished by its rescission and sets forth methods for the rescission of a contract, including the rescission of a home solicitation contract. Existing law defines “home solicitation contract” for this purpose.

This bill would exclude from the definition of “home solicitation contract” any contract for services where the buyer is an existing customer of the seller and the contract allows the buyer to cancel at any time with a pro rata refund of any services paid for but not received.

Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 1689.5 of the Civil Code is amended to read:

1689.5.

As used in Sections 1689.6 to 1689.11, inclusive, and in Section 1689.14, all of the following definitions apply:

(a) (1) “Home solicitation contract or offer” means any contract, whether single or multiple, or any offer which is subject to approval, for the sale, lease, or rental of goods or services or both, made at other than appropriate trade premises in an amount of twenty-five dollars ($25) or more, including any interest or service charges. ~~“Home~~

(2) “Home solicitation contract” does not include ~~any~~ the following:

(A) Any contract under which the buyer has the right to rescind pursuant to Title 1, Chapter 2, Section 125 of the Federal Consumer Credit Protection Act (P.L. 90-321) and the regulations promulgated pursuant thereto.

(B) Any contract for services where the buyer has previously entered into a contract with the seller and the contract allows the buyer to cancel at any time prior to the provision of all services under the contract with a pro rata refund for services paid for but not received.

(b) “Appropriate trade premises,” means premises where either the owner or seller normally carries on a business, or where goods are normally offered or exposed for sale in the course of a business carried on at those premises.

(c) “Goods” means tangible chattels bought for use primarily for personal, family, or household purposes, including certificates or coupons exchangeable for these goods, and including goods that, at the time of the sale or subsequently, are to be so affixed to real property as to become a part of the real property whether or not severable therefrom, but does not include any vehicle required to be registered under the Vehicle Code, nor any goods sold with this vehicle if sold under a contract governed by Section 2982, and does not include any mobilehome, as defined in Section 18008 of the Health and Safety Code, nor any goods sold with this mobilehome if either are sold under a contract subject to Section 18036.5 of the Health and Safety Code.

(d) “Services” means work, labor and services, including, but not limited to, services furnished in connection with the repair, restoration, alteration, or improvement of residential premises, or services furnished in connection with the sale or repair of goods as defined in Section 1802.1, and courses of instruction, regardless of the purpose for which they are taken, but does not include the services of attorneys, real estate brokers and salesmen, securities dealers or investment counselors, physicians, optometrists, or dentists, nor financial services offered by banks, savings institutions, credit unions, industrial loan companies, personal property brokers, consumer finance lenders, or commercial finance lenders, organized pursuant to state or federal law, that are not connected with the sale of goods or services, as defined herein, nor the sale of insurance that is not connected with the sale of goods or services as defined herein, nor services in connection with the sale or installation of mobilehomes or of goods sold with a mobilehome if either are sold or installed under a contract subject to Section 18036.5 of the Health and Safety Code, nor services for which the tariffs, rates, charges, costs, or expenses, including in each instance the time sale price, is required by law to be filed with and approved by the federal government or any official, department, division, commission, or agency of the United States or of the state.

(e) “Business day” means any calendar day except Sunday, or the following business holidays: New Year’s Day, Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans’ Day, Thanksgiving Day, and Christmas Day.

(f) “Senior citizen” means an individual who is 65 years of age or older.