SB 342: Contractors: unlicensed work.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

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 contractor’s 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.

Sponsors

Sponsors by party (alphabetical): Democratic 2

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 30, 2026Chaptered by Secretary of State. Chapter 967, Statutes of 2026.
2. September 30, 2026Approved by the Governor.
3. September 8, 2026Enrolled and presented to the Governor at 4 p.m.
4. August 30, 2026Assembly amendments concurred in. (Ayes 38. Noes 0.) Ordered to engrossing and enrolling.
5. August 30, 2026In Senate. Concurrence in Assembly amendments pending.
6. August 30, 2026Read third time. Passed. (Ayes 75. Noes 0. Page 6856.) Ordered to the Senate.
7. August 27, 2026Read second time. Ordered to third reading.
8. August 26, 2026Read second time and amended. Ordered to second reading.
9. August 25, 2026From committee: Do pass as amended. (Ayes 19. Noes 0.) (August 25).
10. August 24, 2026Joint Rule 62(a) suspended.
11. August 20, 2026Re-referred to Com. on B. & P. pursuant to Assembly Rule 77.2.
12. August 19, 2026Ordered to third reading.