What AB 1931 does
An act to add Chapter 4 (commencing with Section 12766) to Part 7 of Division 2 of the Insurance Code, relating to insurance.
Existing law regulates home protection companies, which issue contracts for the repair or replacement of a component, system, or appliance of a home. Existing law prohibits a person from issuing home protection contracts in this state unless they hold a home protection company license issued by the Department of Insurance, except as specified. Existing law requires a home protection contract, as defined, to specify certain information in clear and conspicuous terms, including, but not limited to, every appliance, system, or component covered by the contract and all exclusions and limitations respecting the extent of the contract.
This bill would, beginning on July 1, 2027, establish a license for a home protection contract limited lines agent, as defined, for an organization authorized to transact home protection contracts on behalf of a home protection company and in connection with a home protection contract vendor, as defined. The bill would additionally authorize a utility to solicit home protection contracts and transmit protection contract fees if it is a vendor acting on behalf of specified entities, including a licensed home protection contract limited lines agent. The bill would require an applicant for a license to submit specified items to the commissioner, including an application and a certificate stating the named applicant is trustworthy. The bill would authorize an agent to authorize a home protection contract vendor, as defined, to solicit contracts and collect protection contract fees on its behalf subject to specified conditions, and would authorize a purchaser to return the contract within 30 days of purchase if no claim has been made.
The bill would allow a vendor to collect fees on behalf of an agent through the utility bill if the bill makes it clear that the home protection contract is issued by a third party and not the utility, lists the protection contract fees separately from the utility charges, and the bill includes a telephone number for customers to inquire about their contract. The bill would also require the contract to include specified disclosures. The bill would prohibit an unlicensed employee of a vendor from participating in the transaction of home protection contracts other than clerical or billing services, and would require the home protection contract limited lines agent or property and casualty insurance agent to ensure the home protection contract vendor informs its employees about the restrictions. The bill would authorize the commissioner to implement specified penalties if a vendor violates these provisions. The bill would also require a home protection company to maintain a single insurance policy covering 100% of the company’s contractual obligation associated with the home protection contracts, among other specified requirements.
The bill would prohibit a property and casualty insurance agent from acting as an agent of a home protection company in connection with a utility unless the company has filed a notice of appointment with the commissioner. The bill would require the notice of appointment to continue until specified documents are filed.
Summary from the Legislative Counsel's Digest of the enrolled text, August 30, 2026. Read the full text on leginfo.
How it got here
Assemblymember Papan introduced AB 1931 on February 13, 2026. The text was amended 5 times, 2 in the Assembly and 3 in the Senate, and heard in 6 committee hearings before its final floor votes.
- Assembly Floor, May 21, 2026: 72 ayes, 0 noes.
- Senate Floor, August 26, 2026: 40 ayes, 0 noes.
- Assembly Floor, August 26, 2026: 78 ayes, 0 noes.
Committee votes along the way:
- Assembly Insurance, April 22, 2026: Do pass and be re-referred to the Committee on [Appropriations], 16-0.
- Assembly Appropriations, May 14, 2026: Do pass., 14-0.
- Senate Insurance, June 24, 2026: Do pass, but first be re-referred to the Committee on [Appropriations], 6-0.
- Senate Appropriations, August 3, 2026: Placed on suspense file, 7-0.
- Senate Appropriations, August 13, 2026: Do pass as amended, 7-0.
Who supports and opposes AB 1931
The Senate Floor Analyses analysis dated August 24, 2026 lists 23 organizations in support and 0 in opposition. When Assembly Insurance first listed positions on April 21, 2026, the count was 20 in support and 0 opposed. By the Senate Floor Analyses analysis of August 24, 2026 it was 23 to 0.
In support: Homeserve USA Corp (sponsor); American Property Casualty Insurance Association; Amtrust Financial Services, INC; Bee Thumb Electric; Brea/Orange County Plumbing, Heating & Air Conditioning, INC; California Water Association; California Water Service Company; County Plumbing Restoration & Rooter; and 15 more.
Read the Senate Floor Analyses analysis.
What happens next
It reached the Governor's desk on September 3, 2026. Bills presented after the Legislature adjourned on August 31 must be signed or vetoed within thirty days.
The Governor can sign the bill, veto it, or let it become law without a signature. Until the decision, sign and veto request letters are the remaining channel, and the Department of Finance's enrolled bill report carries weight on anything with a fiscal effect. If signed, most provisions take effect January 1, and implementation moves to the agencies named in the bill.
What it means for financial services organizations
Two decisions follow from a bill at this stage. The first is whether to weigh in with the Governor's office before the thirty-day window closes. The second is how to prepare for implementation if it becomes law: which agency writes the rules, when the comment period opens, and which obligations begin January 1.
The financial services group at Capitol Axis handles that for financial services clients.
Questions about AB 1931
What does AB 1931 do?
This bill would, beginning on July 1, 2027, establish a license for a home protection contract limited lines agent, as defined, for an organization authorized to transact home protection contracts on behalf of a home protection company and in connection with a home protection contract vendor, as defined. The bill would additionally authorize a utility to solicit home protection contracts and transmit protection contract fees if it is a vendor acting on behalf of specified entities, including a licensed home protection contract limited lines agent. The bill would require an applicant for a lice
Has AB 1931 passed the California Legislature?
It reached the Governor's desk on September 3, 2026. Bills presented after the Legislature adjourned on August 31 must be signed or vetoed within thirty days.
Who supports and opposes AB 1931?
The Senate Floor Analyses analysis dated August 24, 2026 lists 23 organizations in support and 0 in opposition. Supporters include Homeserve USA Corp (sponsor); American Property Casualty Insurance Association; Amtrust Financial Services, INC.
What happens next with AB 1931?
The Governor can sign it, veto it, or let it become law without a signature. Until then, sign and veto request letters are the remaining channel, and the Department of Finance's enrolled bill report carries weight on anything with a fiscal effect.