SB 342: Contractors: unlicensed work.

Existing law, the Contractors State License Law, establishes the Contractors State License Board in the Department of Consumer Affairs to license and regulate contractors. Existing law prohibits a person engaging in the business or acting in the capacity of a contractor from recovering compensation for work performed that requires a contractors license unless the person was a duly licensed contractor at all times during the performance of the act or contract, except as specified.

This bill would further exempt from that prohibition an action for compensation arising from a contract for specified projects, including for a public work of improvement or a commercial or institutional construction project, and would, instead, authorize a person to maintain an action for compensation under one of those contracts if the person was a duly licensed contractor at the time the contract was executed and during the portion of the performance of the contract for which compensation is sought.

Existing law authorizes a person who uses the services of an unlicensed contractor to bring an action to recover all compensation paid to the unlicensed contractor for performance of any act or contract, except as provided.

This bill would additionally exempt from that authorization an action for compensation arising from a contract for specified projects, including for a public work of improvement or a commercial or institutional construction project, and would, instead, authorize a person to bring an action under one of those contracts to recover the portion of compensation paid to the unlicensed contractor for work performed during the time in which the contractor was unlicensed.