Contractors: law suits.

Existing law, the Contractors' State License Law, creates the Contractors' State License Board within the Department of Consumer Affairs and provides for the licensure and regulation of contractors. Existing law prohibits a person, acting as a contractor, from bringing an action to collect compensation for performance of any act or contract requiring a license without alleging that he or she was licensed at all times during the performance of the act or contract, except as specified. Existing law provides that the judicial doctrine of substantial compliance does not apply where a person who engaged in the business or acted in the capacity of a contractor has never been a duly licensed contractor in this state. This bill would specify circumstances under which a court may find that such a person has substantially complied with the licensing requirements under the law with respect to an act or contract, including that the person had a valid license prior to forming a business entity and that license number has been assigned and transferred to the business entity, the person had a valid license at the time the act or contract commenced but did not assign and transfer that contract to the new business entity, the person is the responsible managing officer of the business entity, the person or entity maintained a workers' compensation insurance policy pertaining to the act or contract, and the person had his or her license reinstated within 30 days following receipt of notice that the license was suspended.