The HomeCon Act: Demand Statewide Consumer Protection Reforms to Safeguard Homeowners Against Contractors More Effectively

As we dive deeper into drafting the specific laws to propose under the HomeCon Act, this document serves as an overview of the key issues and changes we as current and future homeowners are advocating for. You can learn more by following our Facebook page or joining our Facebook Community.

Hi everyone, if you’re here, you might already have an idea why I created this Change.org page. For those who don’t, I encourage you to stick around—there’s a wealth of valuable information that every homeowner should know. Together, I hope we can work towards meaningful changes to protect homeowners in the state of California and hold contractors accountable. 

We propose statewide reforms to create a collaborative framework of accountability and transparency, ensuring homeowners are protected at every stage of their construction journey:

In 2023, the construction industry in Southern California was booming, with Los Angeles County and Orange County issuing a combined total of 30,595 building permits. Los Angeles County alone accounted for 24,286 permits, with an estimated valuation of $2 billion, while Orange County issued 6,309 permits, with a reported valuation of over $1.6 billion.

Over half of the permits in Los Angeles County were for residential projects, while an astounding 90% of permits in Orange County were residential. These figures highlight the significant level of construction activity in the region-yet they only represent permitted work and estimated numbers. This does not account for the countless unpermitted projects being carried out, which further underscores the need for stricter oversight.

With the state actively pushing for more contractors to become licensed and opening new licensing sites, the system is growing rapidly. But there’s a critical problem: the verification process for these licenses remains shockingly low, with a review rate of only 3% and currently over seeing apx. 240,000 licenses. This lack of oversight leaves homeowners vulnerable to fraud, negligence, and systemic failures.

Owning a home is likely the largest investment you'll ever make. Yet, the regulations and penalties governing licensed contractors often fall short of providing the protection homeowners need most. Many homeowners initially believe that hiring a licensed contractor ensures a sense of security and automatic protection—until something goes wrong.

When problems arise, homeowners quickly learn just how challenging it is to navigate the system for the first time, especially while dealing with the fallout of a contractor's mistakes. The situation becomes even more overwhelming when funds are depleted, leaving no money to hire another contractor, or when trust is eroded and reputable contractors refuse to fix someone else’s mess.

The construction and renovation process can turn into a life altering nightmare for those unprepared, as many rely on contractors to follow the law and provide expertise. Homeowners have the right to expect that individuals advertising themselves as experts in construction are both qualified and accountable. Instead, countless Californians face devastating financial losses and emotional distress due to fraudulent contractors, systemic failures, and inadequate oversight.

The Need for Reform: It’s time to demand comprehensive reforms at both the City and State levels.

These Reforms must Ensure that: The California State License Board (CSLB) enforces stricter regulations and penalties against fraudulent contractors.

Local Building and Safety Departments need to provide better training and oversight to catch issues early along with a whistleblower hotline.

The Consumer Protection Agency and District Attorneys do not deprioritize prosecuting contractor-related fraud cases turned over to them.

State and Federal Agencies need to work together to create a cohesive system that truly safeguards homeowners.

The HomeCon Act proposes stronger protections, better enforcement, and increased accountability to ensure homeowners are not left financially and emotionally devastated at $500 or $500,000. It’s time for California homeowners to demand the reforms they deserve and reclaim their right to trust in the system meant to protect them. 

The Need for Reform: Many contractors exploit what most homeowners don’t know, using this knowledge to their advantage. Fraudulent contractors take advantage of gaps in oversight, weak enforcement, and a lack of homeowner awareness. Employees at city Building and Safety Departments, who are the first line of defense against such contractors and could serve as critical gatekeepers, often lack the training to identify issues or understand CSLB laws, resulting in ineffective reporting. Meanwhile, the CSLB’s current system is ill-equipped to address widespread contractor fraud, leaving homeowners vulnerable and unprotected.

Key issues that leave homeowners vulnerable include: Undetected contractor fraud and negligence if the contractor is savvy or has a network that understands how to circumvent the system.

Lack of proactive reporting by Building and Safety employees to the CSLB and homeowners.

Insufficient verification processes for contractors and RMOs (Responsible Managing Officers) or RMEs (Responsible Managing Employees) at the city and state levels.

Weak consequences for repeat offender contractors.

Homeowners unaware of their rights or what should be included in a construction contract.

Limited auditing of CSLB practices and oversight failures.

The ease of filing a construction lien.

The Solution: We propose statewide reforms to create a collaborative framework of accountability and transparency, ensuring homeowners are protected at every stage of their construction journey.

Mandatory CSLB Training for Building and Safety Officials: All Building and Safety employees must complete CSLB-specific training before assuming their roles.

Annual refresher courses must be required to stay updated on construction laws, contractor regulations, and homeowner rights.

Training should emphasize early detection of fraud and proper reporting to the CSLB and homeowners.

Stricter Oversight and Reporting Requirements: Building and Safety officials must report any irregularities, delays, or potential contractor fraud to the CSLB and the homeowner immediately. Homeowners should receive prompt notifications to take the necessary steps before issues escalate.

Enhanced Contractor Verification Processes: (City and State) The CSLB must strengthen verification processes for all qualifiers, particularly Responsible Managing Officers (RMOs), given the prevalence of an underground industry where RMOs are rented out by other contractors. This practice undermines accountability and oversight. 

Additionally, the CSLB should lower the limits on the number of companies or licenses an individual can be associated with to prevent abuse and ensure better regulation.

Increase the current 3% application check rate by the CSLB to provide greater scrutiny and prevent more fraud.

Stronger Consequences for Contractor Violations: Contractors found guilty of breaking certain laws should be permanently banned from filing new companies in the state or holding a contractor license.

Any contractor referred to the District Attorney’s office more than once must be prosecuted.

Violations, big or small, must be publicly listed on the CSLB website and noted on all associated licenses.

A Standardized in depth Homeowner Construction Checklist: Homeowners should receive a clear checklist of essential contract elements, including contractor licensing, project timelines, payment schedules, and dispute resolution clauses. Currently, some of this is on the CSLB’s website, except many homeowners don’t check it.

The checklist should be made available through city departments, real estate transactions, or as a downloadable resource.

Tailored Contractor Bonds Based on License Scope: The contractor’s bond should reflect the scope of work their license covers. For instance, a bond for an electrician would be less than for a contractor handling renovations or new construction, providing a larger safety net if the contractor fails their duties to the homeowner.

Stricter Insurance Requirements for Contractors: For projects exceeding a certain cost threshold, contractors must add the homeowner as an additional insured party on their insurance policy to provide greater access to protection.

Mandatory Background Checklists at the City Level: Cities must implement a master checklist for verifying contractor credentials, licenses, and any previous violations as part of every application review process.

Cities should cross verify all information against the CSLB's system when a permit is applied for.

Immediate Consumer Protection Audits: The California Consumer Protection Agency must audit the CSLB regularly to ensure that enforcement measures are being implemented effectively and efficiently.

Creation of a State Fund for Financially Harmed Homeowners: Establish a state-backed fund to assist homeowners who experience financial hardship due to contractor fraud or negligence.

Improved Accountability Across Agencies: The CSLB must be audited to ensure systemic issues are addressed.

Consumer Protection Agencies must work alongside the CSLB to enforce stricter penalties and provide more robust protections for homeowners.

Why This Matters: Fraudulent contractors continue to operate with impunity, exploiting systemic weaknesses and leaving families devastated. The CSLB, Consumer Protection Agency, Building and Safety Departments, and law enforcement must align their efforts to:

Protect families from financial and emotional harm.
Improve the quality and integrity of construction projects across California.
Hold bad actors accountable while restoring trust in licensed contractors.

Call to Action: Join us in demanding these critical reforms and sign our petition to implement mandatory CSLB training and enhanced oversight at all levels. 

Share your story if you or someone you know has been impacted by contractor fraud or systemic failures.

Contact your state representatives to support comprehensive homeowner protection reforms.

Together, we can build a safer, more transparent construction process for all Californians.

These are just a few of the key reforms we want to see. More details on additional proposals and actionable steps will follow soon.