Contractors: compensation.

Existing law, the Contractors' State License Law, provides for the licensing and regulation of contractors in the state by the Contractors' State License Board. Existing law prohibits a person acting in the capacity of a contractor from bringing an action to collect compensation for work performed as a contractor without alleging that he or she was a licensed contractor at the time the work was performed, except as specified. Existing law also authorizes a person who utilizes the services of an unlicensed contractor to bring an action in court to recover moneys paid to the unlicensed contractor for the performance of any act or contract. Existing law authorizes the court to determine whether a contractor has substantially complied with the contractor licensure requirement for purposes of these provisions, as specified. This bill would authorize a person acting in the capacity of a contractor without a license to bring or maintain an action for recovery of compensation for any act or contract if the person had previously been licensed as a contractor in this state and the board has retroactively reinstated the contractor's license from the date the work commenced through the date of completion. The bill would prohibit an action for recovery of compensation against a contractor that satisfies these conditions. The bill would authorize a licensed contractor who performs work outside the scope of his or her license to bring or maintain an action to recover compensation for the portion of the work that was performed within the scope of his or her license if the value of the unlicensed work does not exceed 20% of the contract price. The bill would limit the liability of a contractor performing work outside the scope of his or her license to the value of the unlicensed work if it does not exceed 20% of the contract price. The bill would authorize the court to consider specified mitigating and aggravating factors relative to the loss of a contractor's license in determining whether the contractor has substantially complied with the contractor licensure requirement for purposes of these provisions. The bill would also set forth the Legislature's intent regarding application of these provisions.