SACRAMENTO, Calif. - A bill that would increase consumer protection against unlicensed contractors by increasing the penalties was approved by the Senate Business and Professions Committee today on a 7-0 vote. 

Assembly Bill 370 by Assemblymember Mike Eng (D-Monterey Park) would address an on-going problem in the home improvement and construction industry with unlicensed contractors taking money for work they never perform. In addition, the bill would create grounds for consumers to

gain restitution for home and property damages as result of the unlicensed contractor's illegal actions. "As the economy slowly recovers, predatory unlicensed contractors will become more rampant then ever," Assemblymember Eng stated before the senate policy committee. "It is vital that we continue working to bring justice for those who have been wronged by unlicensed contractors as well as to protect licensed contractors that follow the law."

With the passage of President Barack Obama's stimulus package earlier this year, California is scheduled to receive billions in federal monies to help homeowners with improvements such as weatherization to energy efficiency. As a result, AB 370 will better protect consumers against fraud and deception.

"AB 370 is important not only for consumers, but also for the thousands of law-abiding contractors who are struggling every single day to stay afloat during these difficult economic times," Assemblymember Eng said.

"As Californians take advantage of these stimulus dollars, this bill ensures that consumers and licensed contactors will benefit from the economic recovery."

AB 370 will now move to the Senate Committee on Public Safety.