It shall be a misdemeanor and a cause for disciplinary action to commit any of the following acts:

(a) For any home improvement salesperson to fail to account for or to remit to their employing contractor any payment received in connection with any home improvement transaction or any other transaction involving a work of improvement.

Terms Used In California Business and Professions Code 7156

  • board: means any entity listed in Section 101, the entities referred to in Sections 1000 and 3600, the State Bar, the Department of Real Estate, and any other state agency that issues a license, certificate, or registration authorizing a person to engage in a business or profession. See California Business and Professions Code 31
  • Contract: A legal written agreement that becomes binding when signed.
  • Person: as used in this article is limited to natural persons, notwithstanding the definition of person in Section 7025. See California Business and Professions Code 7150
  • Subdivision: means a subdivision of the section in which that term occurs, unless some other section is expressly mentioned. See California Business and Professions Code 15

(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 the person is employed.

(c) For any home improvement salesperson to assist, recommend, select, or otherwise guide an owner or tenant in the selection of a contractor for the performance or sale of home improvement goods or services if notification of employment by the home improvement contractor, as required by subdivision (a) of Section 7154, has not been received by the Board.

(Amended by Stats. 2021, Ch. 249, Sec. 3. (SB 757) Effective January 1, 2022.)