Sen. Nilo’s SB 517 requires home‑improvement contracts to state whether subcontractors will be used on a job and — if the homeowner requests it — to identify the subcontractor(s) and their license numbers for that specific contract.

The sponsor described cases in Sacramento and elsewhere where companies marketed themselves as full-service builders but subcontracted entire projects without homeowners’ knowledge; when projects soured, homeowners had difficulty finding a responsible party. "When things went wrong, there was no accountability," the senator said.

Supporters included the National Insurance Crime Bureau (NICB) and representatives from the remodeling industry. Marion Smith of NICB described investigations where contractors substantially marked up subcontractor bids and billed insurers for inflated costs, calling the disclosure requirement a tool to deter fraud. "Senate Bill 517 increases transparency in home improvement contracts... and would help combat unscrupulous contractors that have left customers with unfinished products, deficient work, or over‑inflated billing," Smith testified.

Steve Tankersley, a Sacramento remodeler and vice president of the National Association of the Remodeling Industry (NARI) Sacramento chapter, said a homeowner’s ability to request subcontractor names and license numbers is a balanced solution that would not unduly burden legitimate contractors. Tankersley described cases where an advertised contractor had subcontracted entire workstreams and then failed to manage the project, leaving homeowners with unfinished or unsafe work.

Committee members asked whether the bill would require public reporting to agencies in emergency or disaster zones; the sponsor said the bill’s disclosure requirement is contractual between contractor and homeowner and that public reporting to agencies was not included in this measure. Senator Grayson and others suggested license numbers should be disclosed so homeowners can verify licensing and insurance status; the sponsor agreed that license numbers are an important part of meaningful disclosure and said amendments could address that.

The committee moved SB 517 to the Senate Judiciary Committee. The sponsor and supporters said they plan to continue negotiations to refine the disclosure framework and to ensure it targets deceptive actors without penalizing legitimate contractors.