California Assembly Bill AB3275

California 2019-2020 Regular Session

• Introduced: 2/21/20
• Refer: 4/24/20
• Report Pass: 5/4/20
• Refer: 5/5/20

Caption

Contractors: unlicensed work.

Impact

The bill's modifications are expected to streamline the legal processes for contractors and those hiring contractors, especially regarding disputes where licensure is in question. By allowing limited partnerships a pathway to pursue compensation despite technical licensing non-compliance, it may also encourage more complex business arrangements in the contracting industry. However, it maintains rigorous safeguards against unlicensed contracting practices, which have long been a concern for consumer protection and business standards in California.

Summary

Assembly Bill 3275, introduced by Assembly Member Chen, proposes amendments to Section 7031 of the Business and Professions Code concerning contractors and unlicensed work. The bill aims to refine existing regulations by explicitly stating that a prohibition against recovering compensation for work performed as an unlicensed contractor does not apply to a limited partnership where the license is held by the general partner. This adjustment clarifies legal frameworks surrounding contractor licensing and enforcement, providing additional clarity for judicial proceedings when licensing status is contested.

Sentiment

The general sentiment surrounding AB3275 appears to lean towards supporting the business interests of licensed contractors and partnerships. Proponents of the bill argue that it provides necessary flexibilities that can stimulate growth and innovation in the contracting sector while still upholding critical legislative standards. However, there may be apprehension from consumer advocacy groups who worry that these changes could incentivize less regulation on unlicensed contractors and potentially expose consumers to legal and financial risks.

Contention

Notable points of contention include the potential for abuse of the newly defined provisions by unlicensed businesses operating under a limited partnership. Critics might argue that this amendment could weaken the enforcement of licensing laws overall, leading to an increase in unqualified contractors. The debate balances the state’s interest in fostering economic growth within the contracting sector against the imperative of protecting consumers from subpar or dangerous work practices.