Amended IN Senate March 17, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 342Introduced by Senator UmbergFebruary 12, 2025An act relating to secondary education. to amend Section 7031 of the Business and Professions Code, relating to professions and vocations.LEGISLATIVE COUNSEL'S DIGESTSB 342, as amended, Umberg. Secondary education. 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, for construction work other than private construction work for residential real property of 25 units or less, would instead prohibit the collection of compensation for the period of time where the person was unlicensed. If the persons license was suspended only because of an administrative purpose, including failing to renew their license on time, the bill would limit the amount the person is ineligible to recover to actual damages or $10,000 per day, whichever is greater.Existing law makes a security interest taken to secure a payment for the performance of an act or contract that requires a contractors license unenforceable if the person performing the act or contract was not a duly licensed contractor at all times during the performance of the act or contract.This bill, for construction work other than private construction work for residential real property of 25 units or less, would limit the unenforceability of the security interest to any period of time when the person performing the act or contract is not licensed.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.This bill would limit the application of that authorization to private construction work for residential real property of 25 units or less.Existing law establishes a system of public elementary and secondary education in this state.This bill would state the intent of the Legislature to enact subsequent legislation relating to secondary education.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 7031 of the Business and Professions Code is amended to read:7031. (a) Except This subdivision applies to private construction work for residential real property of 25 units or less.(1) Except as provided in subdivision (e), (c), no person engaged in the business or acting in the capacity of a contractor, may bring or maintain any action, or recover in law or equity in any action, in any court of this state for the collection of compensation for the performance of any act or contract where a license is required by this chapter without alleging that they were a duly licensed contractor at all times during the performance of that act or contract regardless of the merits of the cause of action brought by the person, except that this person. This prohibition shall not apply to contractors who are each individually licensed under this chapter but who fail to comply with Section 7029.(b)(2) Except as provided in subdivision (e), (c), a person who utilizes the services of an unlicensed contractor may bring an action in any court of competent jurisdiction in this state to recover all compensation paid to the unlicensed contractor for performance of any act or contract.(c)(3) A security interest taken to secure any payment for the performance of any act or contract for which a license is required by this chapter is unenforceable if the person performing the act or contract was not a duly licensed contractor at all times during the performance of the act or contract.(d)(4) If licensure or proper licensure is controverted, then proof of licensure pursuant to this section shall be made by production of a verified certificate of licensure from the Contractors State License Board which board that establishes that the individual or entity bringing the action was duly licensed in the proper classification of contractors at all times during the performance of any act or contract covered by the action. Nothing in this subdivision paragraph shall require any person or entity controverting licensure or proper licensure to produce a verified certificate. When licensure or proper licensure is controverted, the burden of proof to establish licensure or proper licensure shall be on the licensee.(b) This subdivision applies to all construction work not specified in subdivision (a), including public works construction, commercial projects, and private residential projects exceeding 25 residential units.(1) Except as provided in subdivision (c), no person engaged in the business or acting in the capacity of a contractor may recover in law or equity in an action in a court of this state for the collection of compensation for any period of time during the performance of an act or contract when the person was unlicensed but was required to be licensed by this chapter. A court of competent jurisdiction or arbitrator shall prohibit the collection of compensation for the period of time that the person was unlicensed. If the persons license was suspended only because they failed to renew their license on time, failed to pay a license renewal fee on time, or for another administrative purpose, the amount that the person is ineligible to recover shall not exceed the amount of actual damages or ten thousand dollars ($10,000) per day, whichever is greater.(2) A security interest taken to secure payment for the performance of any act or contract for which a license is required by this chapter is unenforceable during any period of time when the person performing the act or contract is not licensed.(3) If licensure or proper licensure is controverted, then proof of licensure pursuant to this section shall be made by production of a verified certificate of licensure from the board that establishes that the individual or entity bringing the action was duly licensed in the proper classification of contractors during the performance of any act or contract covered by the action. Nothing in this paragraph shall require any person or entity controverting licensure or proper licensure to produce a verified certificate. When licensure or proper licensure is controverted, the burden of proof to establish licensure or proper licensure shall be on the licensee. (e)(c) The judicial doctrine of substantial compliance shall not apply under this section where the person who engaged in the business or acted in the capacity of a contractor has never been a duly licensed contractor in this state. However, notwithstanding subdivision (b) of Section 143, the court may determine that there has been substantial compliance with licensure requirements under this section if it is shown at an evidentiary hearing that the person who engaged in the business or acted in the capacity of a contractor (1) had been duly licensed as a contractor in this state prior to the performance of the act or contract, (2) acted reasonably and in good faith to maintain proper licensure, and (3) acted promptly and in good faith to remedy the failure to comply with the licensure requirements upon learning of the failure.(f)(d) The exceptions to the prohibition against the application of the judicial doctrine of substantial compliance found in subdivision (e) (c) shall apply to all contracts entered into on or after January 1, 1992, and to all actions or arbitrations arising therefrom, except that the amendments to subdivisions (e) and (f) enacted during the 1994 portion of the 199394 Regular Session of the Legislature shall not apply to either of the following: 1995.(1)Any legal action or arbitration commenced prior to January 1, 1995, regardless of the date on which the parties entered into the contract.(2)Any legal action or arbitration commenced on or after January 1, 1995, if the legal action or arbitration was commenced prior to January 1, 1995, and was subsequently dismissed.SECTION 1.It is the intent of the Legislature to enact subsequent legislation relating to secondary education.
Amended IN Senate March 17, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 342Introduced by Senator UmbergFebruary 12, 2025An act relating to secondary education. to amend Section 7031 of the Business and Professions Code, relating to professions and vocations.LEGISLATIVE COUNSEL'S DIGESTSB 342, as amended, Umberg. Secondary education. 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, for construction work other than private construction work for residential real property of 25 units or less, would instead prohibit the collection of compensation for the period of time where the person was unlicensed. If the persons license was suspended only because of an administrative purpose, including failing to renew their license on time, the bill would limit the amount the person is ineligible to recover to actual damages or $10,000 per day, whichever is greater.Existing law makes a security interest taken to secure a payment for the performance of an act or contract that requires a contractors license unenforceable if the person performing the act or contract was not a duly licensed contractor at all times during the performance of the act or contract.This bill, for construction work other than private construction work for residential real property of 25 units or less, would limit the unenforceability of the security interest to any period of time when the person performing the act or contract is not licensed.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.This bill would limit the application of that authorization to private construction work for residential real property of 25 units or less.Existing law establishes a system of public elementary and secondary education in this state.This bill would state the intent of the Legislature to enact subsequent legislation relating to secondary education.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO
Amended IN Senate March 17, 2025
Amended IN Senate March 17, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 342
Introduced by Senator UmbergFebruary 12, 2025
Introduced by Senator Umberg
February 12, 2025
An act relating to secondary education. to amend Section 7031 of the Business and Professions Code, relating to professions and vocations.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 342, as amended, Umberg. Secondary education. 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, for construction work other than private construction work for residential real property of 25 units or less, would instead prohibit the collection of compensation for the period of time where the person was unlicensed. If the persons license was suspended only because of an administrative purpose, including failing to renew their license on time, the bill would limit the amount the person is ineligible to recover to actual damages or $10,000 per day, whichever is greater.Existing law makes a security interest taken to secure a payment for the performance of an act or contract that requires a contractors license unenforceable if the person performing the act or contract was not a duly licensed contractor at all times during the performance of the act or contract.This bill, for construction work other than private construction work for residential real property of 25 units or less, would limit the unenforceability of the security interest to any period of time when the person performing the act or contract is not licensed.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.This bill would limit the application of that authorization to private construction work for residential real property of 25 units or less.Existing law establishes a system of public elementary and secondary education in this state.This bill would state the intent of the Legislature to enact subsequent legislation relating to secondary education.
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, for construction work other than private construction work for residential real property of 25 units or less, would instead prohibit the collection of compensation for the period of time where the person was unlicensed. If the persons license was suspended only because of an administrative purpose, including failing to renew their license on time, the bill would limit the amount the person is ineligible to recover to actual damages or $10,000 per day, whichever is greater.
Existing law makes a security interest taken to secure a payment for the performance of an act or contract that requires a contractors license unenforceable if the person performing the act or contract was not a duly licensed contractor at all times during the performance of the act or contract.
This bill, for construction work other than private construction work for residential real property of 25 units or less, would limit the unenforceability of the security interest to any period of time when the person performing the act or contract is not licensed.
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.
This bill would limit the application of that authorization to private construction work for residential real property of 25 units or less.
Existing law establishes a system of public elementary and secondary education in this state.
This bill would state the intent of the Legislature to enact subsequent legislation relating to secondary education.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 7031 of the Business and Professions Code is amended to read:7031. (a) Except This subdivision applies to private construction work for residential real property of 25 units or less.(1) Except as provided in subdivision (e), (c), no person engaged in the business or acting in the capacity of a contractor, may bring or maintain any action, or recover in law or equity in any action, in any court of this state for the collection of compensation for the performance of any act or contract where a license is required by this chapter without alleging that they were a duly licensed contractor at all times during the performance of that act or contract regardless of the merits of the cause of action brought by the person, except that this person. This prohibition shall not apply to contractors who are each individually licensed under this chapter but who fail to comply with Section 7029.(b)(2) Except as provided in subdivision (e), (c), a person who utilizes the services of an unlicensed contractor may bring an action in any court of competent jurisdiction in this state to recover all compensation paid to the unlicensed contractor for performance of any act or contract.(c)(3) A security interest taken to secure any payment for the performance of any act or contract for which a license is required by this chapter is unenforceable if the person performing the act or contract was not a duly licensed contractor at all times during the performance of the act or contract.(d)(4) If licensure or proper licensure is controverted, then proof of licensure pursuant to this section shall be made by production of a verified certificate of licensure from the Contractors State License Board which board that establishes that the individual or entity bringing the action was duly licensed in the proper classification of contractors at all times during the performance of any act or contract covered by the action. Nothing in this subdivision paragraph shall require any person or entity controverting licensure or proper licensure to produce a verified certificate. When licensure or proper licensure is controverted, the burden of proof to establish licensure or proper licensure shall be on the licensee.(b) This subdivision applies to all construction work not specified in subdivision (a), including public works construction, commercial projects, and private residential projects exceeding 25 residential units.(1) Except as provided in subdivision (c), no person engaged in the business or acting in the capacity of a contractor may recover in law or equity in an action in a court of this state for the collection of compensation for any period of time during the performance of an act or contract when the person was unlicensed but was required to be licensed by this chapter. A court of competent jurisdiction or arbitrator shall prohibit the collection of compensation for the period of time that the person was unlicensed. If the persons license was suspended only because they failed to renew their license on time, failed to pay a license renewal fee on time, or for another administrative purpose, the amount that the person is ineligible to recover shall not exceed the amount of actual damages or ten thousand dollars ($10,000) per day, whichever is greater.(2) A security interest taken to secure payment for the performance of any act or contract for which a license is required by this chapter is unenforceable during any period of time when the person performing the act or contract is not licensed.(3) If licensure or proper licensure is controverted, then proof of licensure pursuant to this section shall be made by production of a verified certificate of licensure from the board that establishes that the individual or entity bringing the action was duly licensed in the proper classification of contractors during the performance of any act or contract covered by the action. Nothing in this paragraph shall require any person or entity controverting licensure or proper licensure to produce a verified certificate. When licensure or proper licensure is controverted, the burden of proof to establish licensure or proper licensure shall be on the licensee. (e)(c) The judicial doctrine of substantial compliance shall not apply under this section where the person who engaged in the business or acted in the capacity of a contractor has never been a duly licensed contractor in this state. However, notwithstanding subdivision (b) of Section 143, the court may determine that there has been substantial compliance with licensure requirements under this section if it is shown at an evidentiary hearing that the person who engaged in the business or acted in the capacity of a contractor (1) had been duly licensed as a contractor in this state prior to the performance of the act or contract, (2) acted reasonably and in good faith to maintain proper licensure, and (3) acted promptly and in good faith to remedy the failure to comply with the licensure requirements upon learning of the failure.(f)(d) The exceptions to the prohibition against the application of the judicial doctrine of substantial compliance found in subdivision (e) (c) shall apply to all contracts entered into on or after January 1, 1992, and to all actions or arbitrations arising therefrom, except that the amendments to subdivisions (e) and (f) enacted during the 1994 portion of the 199394 Regular Session of the Legislature shall not apply to either of the following: 1995.(1)Any legal action or arbitration commenced prior to January 1, 1995, regardless of the date on which the parties entered into the contract.(2)Any legal action or arbitration commenced on or after January 1, 1995, if the legal action or arbitration was commenced prior to January 1, 1995, and was subsequently dismissed.SECTION 1.It is the intent of the Legislature to enact subsequent legislation relating to secondary education.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 7031 of the Business and Professions Code is amended to read:7031. (a) Except This subdivision applies to private construction work for residential real property of 25 units or less.(1) Except as provided in subdivision (e), (c), no person engaged in the business or acting in the capacity of a contractor, may bring or maintain any action, or recover in law or equity in any action, in any court of this state for the collection of compensation for the performance of any act or contract where a license is required by this chapter without alleging that they were a duly licensed contractor at all times during the performance of that act or contract regardless of the merits of the cause of action brought by the person, except that this person. This prohibition shall not apply to contractors who are each individually licensed under this chapter but who fail to comply with Section 7029.(b)(2) Except as provided in subdivision (e), (c), a person who utilizes the services of an unlicensed contractor may bring an action in any court of competent jurisdiction in this state to recover all compensation paid to the unlicensed contractor for performance of any act or contract.(c)(3) A security interest taken to secure any payment for the performance of any act or contract for which a license is required by this chapter is unenforceable if the person performing the act or contract was not a duly licensed contractor at all times during the performance of the act or contract.(d)(4) If licensure or proper licensure is controverted, then proof of licensure pursuant to this section shall be made by production of a verified certificate of licensure from the Contractors State License Board which board that establishes that the individual or entity bringing the action was duly licensed in the proper classification of contractors at all times during the performance of any act or contract covered by the action. Nothing in this subdivision paragraph shall require any person or entity controverting licensure or proper licensure to produce a verified certificate. When licensure or proper licensure is controverted, the burden of proof to establish licensure or proper licensure shall be on the licensee.(b) This subdivision applies to all construction work not specified in subdivision (a), including public works construction, commercial projects, and private residential projects exceeding 25 residential units.(1) Except as provided in subdivision (c), no person engaged in the business or acting in the capacity of a contractor may recover in law or equity in an action in a court of this state for the collection of compensation for any period of time during the performance of an act or contract when the person was unlicensed but was required to be licensed by this chapter. A court of competent jurisdiction or arbitrator shall prohibit the collection of compensation for the period of time that the person was unlicensed. If the persons license was suspended only because they failed to renew their license on time, failed to pay a license renewal fee on time, or for another administrative purpose, the amount that the person is ineligible to recover shall not exceed the amount of actual damages or ten thousand dollars ($10,000) per day, whichever is greater.(2) A security interest taken to secure payment for the performance of any act or contract for which a license is required by this chapter is unenforceable during any period of time when the person performing the act or contract is not licensed.(3) If licensure or proper licensure is controverted, then proof of licensure pursuant to this section shall be made by production of a verified certificate of licensure from the board that establishes that the individual or entity bringing the action was duly licensed in the proper classification of contractors during the performance of any act or contract covered by the action. Nothing in this paragraph shall require any person or entity controverting licensure or proper licensure to produce a verified certificate. When licensure or proper licensure is controverted, the burden of proof to establish licensure or proper licensure shall be on the licensee. (e)(c) The judicial doctrine of substantial compliance shall not apply under this section where the person who engaged in the business or acted in the capacity of a contractor has never been a duly licensed contractor in this state. However, notwithstanding subdivision (b) of Section 143, the court may determine that there has been substantial compliance with licensure requirements under this section if it is shown at an evidentiary hearing that the person who engaged in the business or acted in the capacity of a contractor (1) had been duly licensed as a contractor in this state prior to the performance of the act or contract, (2) acted reasonably and in good faith to maintain proper licensure, and (3) acted promptly and in good faith to remedy the failure to comply with the licensure requirements upon learning of the failure.(f)(d) The exceptions to the prohibition against the application of the judicial doctrine of substantial compliance found in subdivision (e) (c) shall apply to all contracts entered into on or after January 1, 1992, and to all actions or arbitrations arising therefrom, except that the amendments to subdivisions (e) and (f) enacted during the 1994 portion of the 199394 Regular Session of the Legislature shall not apply to either of the following: 1995.(1)Any legal action or arbitration commenced prior to January 1, 1995, regardless of the date on which the parties entered into the contract.(2)Any legal action or arbitration commenced on or after January 1, 1995, if the legal action or arbitration was commenced prior to January 1, 1995, and was subsequently dismissed.
SECTION 1. Section 7031 of the Business and Professions Code is amended to read:
### SECTION 1.
7031. (a) Except This subdivision applies to private construction work for residential real property of 25 units or less.(1) Except as provided in subdivision (e), (c), no person engaged in the business or acting in the capacity of a contractor, may bring or maintain any action, or recover in law or equity in any action, in any court of this state for the collection of compensation for the performance of any act or contract where a license is required by this chapter without alleging that they were a duly licensed contractor at all times during the performance of that act or contract regardless of the merits of the cause of action brought by the person, except that this person. This prohibition shall not apply to contractors who are each individually licensed under this chapter but who fail to comply with Section 7029.(b)(2) Except as provided in subdivision (e), (c), a person who utilizes the services of an unlicensed contractor may bring an action in any court of competent jurisdiction in this state to recover all compensation paid to the unlicensed contractor for performance of any act or contract.(c)(3) A security interest taken to secure any payment for the performance of any act or contract for which a license is required by this chapter is unenforceable if the person performing the act or contract was not a duly licensed contractor at all times during the performance of the act or contract.(d)(4) If licensure or proper licensure is controverted, then proof of licensure pursuant to this section shall be made by production of a verified certificate of licensure from the Contractors State License Board which board that establishes that the individual or entity bringing the action was duly licensed in the proper classification of contractors at all times during the performance of any act or contract covered by the action. Nothing in this subdivision paragraph shall require any person or entity controverting licensure or proper licensure to produce a verified certificate. When licensure or proper licensure is controverted, the burden of proof to establish licensure or proper licensure shall be on the licensee.(b) This subdivision applies to all construction work not specified in subdivision (a), including public works construction, commercial projects, and private residential projects exceeding 25 residential units.(1) Except as provided in subdivision (c), no person engaged in the business or acting in the capacity of a contractor may recover in law or equity in an action in a court of this state for the collection of compensation for any period of time during the performance of an act or contract when the person was unlicensed but was required to be licensed by this chapter. A court of competent jurisdiction or arbitrator shall prohibit the collection of compensation for the period of time that the person was unlicensed. If the persons license was suspended only because they failed to renew their license on time, failed to pay a license renewal fee on time, or for another administrative purpose, the amount that the person is ineligible to recover shall not exceed the amount of actual damages or ten thousand dollars ($10,000) per day, whichever is greater.(2) A security interest taken to secure payment for the performance of any act or contract for which a license is required by this chapter is unenforceable during any period of time when the person performing the act or contract is not licensed.(3) If licensure or proper licensure is controverted, then proof of licensure pursuant to this section shall be made by production of a verified certificate of licensure from the board that establishes that the individual or entity bringing the action was duly licensed in the proper classification of contractors during the performance of any act or contract covered by the action. Nothing in this paragraph shall require any person or entity controverting licensure or proper licensure to produce a verified certificate. When licensure or proper licensure is controverted, the burden of proof to establish licensure or proper licensure shall be on the licensee. (e)(c) The judicial doctrine of substantial compliance shall not apply under this section where the person who engaged in the business or acted in the capacity of a contractor has never been a duly licensed contractor in this state. However, notwithstanding subdivision (b) of Section 143, the court may determine that there has been substantial compliance with licensure requirements under this section if it is shown at an evidentiary hearing that the person who engaged in the business or acted in the capacity of a contractor (1) had been duly licensed as a contractor in this state prior to the performance of the act or contract, (2) acted reasonably and in good faith to maintain proper licensure, and (3) acted promptly and in good faith to remedy the failure to comply with the licensure requirements upon learning of the failure.(f)(d) The exceptions to the prohibition against the application of the judicial doctrine of substantial compliance found in subdivision (e) (c) shall apply to all contracts entered into on or after January 1, 1992, and to all actions or arbitrations arising therefrom, except that the amendments to subdivisions (e) and (f) enacted during the 1994 portion of the 199394 Regular Session of the Legislature shall not apply to either of the following: 1995.(1)Any legal action or arbitration commenced prior to January 1, 1995, regardless of the date on which the parties entered into the contract.(2)Any legal action or arbitration commenced on or after January 1, 1995, if the legal action or arbitration was commenced prior to January 1, 1995, and was subsequently dismissed.
7031. (a) Except This subdivision applies to private construction work for residential real property of 25 units or less.(1) Except as provided in subdivision (e), (c), no person engaged in the business or acting in the capacity of a contractor, may bring or maintain any action, or recover in law or equity in any action, in any court of this state for the collection of compensation for the performance of any act or contract where a license is required by this chapter without alleging that they were a duly licensed contractor at all times during the performance of that act or contract regardless of the merits of the cause of action brought by the person, except that this person. This prohibition shall not apply to contractors who are each individually licensed under this chapter but who fail to comply with Section 7029.(b)(2) Except as provided in subdivision (e), (c), a person who utilizes the services of an unlicensed contractor may bring an action in any court of competent jurisdiction in this state to recover all compensation paid to the unlicensed contractor for performance of any act or contract.(c)(3) A security interest taken to secure any payment for the performance of any act or contract for which a license is required by this chapter is unenforceable if the person performing the act or contract was not a duly licensed contractor at all times during the performance of the act or contract.(d)(4) If licensure or proper licensure is controverted, then proof of licensure pursuant to this section shall be made by production of a verified certificate of licensure from the Contractors State License Board which board that establishes that the individual or entity bringing the action was duly licensed in the proper classification of contractors at all times during the performance of any act or contract covered by the action. Nothing in this subdivision paragraph shall require any person or entity controverting licensure or proper licensure to produce a verified certificate. When licensure or proper licensure is controverted, the burden of proof to establish licensure or proper licensure shall be on the licensee.(b) This subdivision applies to all construction work not specified in subdivision (a), including public works construction, commercial projects, and private residential projects exceeding 25 residential units.(1) Except as provided in subdivision (c), no person engaged in the business or acting in the capacity of a contractor may recover in law or equity in an action in a court of this state for the collection of compensation for any period of time during the performance of an act or contract when the person was unlicensed but was required to be licensed by this chapter. A court of competent jurisdiction or arbitrator shall prohibit the collection of compensation for the period of time that the person was unlicensed. If the persons license was suspended only because they failed to renew their license on time, failed to pay a license renewal fee on time, or for another administrative purpose, the amount that the person is ineligible to recover shall not exceed the amount of actual damages or ten thousand dollars ($10,000) per day, whichever is greater.(2) A security interest taken to secure payment for the performance of any act or contract for which a license is required by this chapter is unenforceable during any period of time when the person performing the act or contract is not licensed.(3) If licensure or proper licensure is controverted, then proof of licensure pursuant to this section shall be made by production of a verified certificate of licensure from the board that establishes that the individual or entity bringing the action was duly licensed in the proper classification of contractors during the performance of any act or contract covered by the action. Nothing in this paragraph shall require any person or entity controverting licensure or proper licensure to produce a verified certificate. When licensure or proper licensure is controverted, the burden of proof to establish licensure or proper licensure shall be on the licensee. (e)(c) The judicial doctrine of substantial compliance shall not apply under this section where the person who engaged in the business or acted in the capacity of a contractor has never been a duly licensed contractor in this state. However, notwithstanding subdivision (b) of Section 143, the court may determine that there has been substantial compliance with licensure requirements under this section if it is shown at an evidentiary hearing that the person who engaged in the business or acted in the capacity of a contractor (1) had been duly licensed as a contractor in this state prior to the performance of the act or contract, (2) acted reasonably and in good faith to maintain proper licensure, and (3) acted promptly and in good faith to remedy the failure to comply with the licensure requirements upon learning of the failure.(f)(d) The exceptions to the prohibition against the application of the judicial doctrine of substantial compliance found in subdivision (e) (c) shall apply to all contracts entered into on or after January 1, 1992, and to all actions or arbitrations arising therefrom, except that the amendments to subdivisions (e) and (f) enacted during the 1994 portion of the 199394 Regular Session of the Legislature shall not apply to either of the following: 1995.(1)Any legal action or arbitration commenced prior to January 1, 1995, regardless of the date on which the parties entered into the contract.(2)Any legal action or arbitration commenced on or after January 1, 1995, if the legal action or arbitration was commenced prior to January 1, 1995, and was subsequently dismissed.
7031. (a) Except This subdivision applies to private construction work for residential real property of 25 units or less.(1) Except as provided in subdivision (e), (c), no person engaged in the business or acting in the capacity of a contractor, may bring or maintain any action, or recover in law or equity in any action, in any court of this state for the collection of compensation for the performance of any act or contract where a license is required by this chapter without alleging that they were a duly licensed contractor at all times during the performance of that act or contract regardless of the merits of the cause of action brought by the person, except that this person. This prohibition shall not apply to contractors who are each individually licensed under this chapter but who fail to comply with Section 7029.(b)(2) Except as provided in subdivision (e), (c), a person who utilizes the services of an unlicensed contractor may bring an action in any court of competent jurisdiction in this state to recover all compensation paid to the unlicensed contractor for performance of any act or contract.(c)(3) A security interest taken to secure any payment for the performance of any act or contract for which a license is required by this chapter is unenforceable if the person performing the act or contract was not a duly licensed contractor at all times during the performance of the act or contract.(d)(4) If licensure or proper licensure is controverted, then proof of licensure pursuant to this section shall be made by production of a verified certificate of licensure from the Contractors State License Board which board that establishes that the individual or entity bringing the action was duly licensed in the proper classification of contractors at all times during the performance of any act or contract covered by the action. Nothing in this subdivision paragraph shall require any person or entity controverting licensure or proper licensure to produce a verified certificate. When licensure or proper licensure is controverted, the burden of proof to establish licensure or proper licensure shall be on the licensee.(b) This subdivision applies to all construction work not specified in subdivision (a), including public works construction, commercial projects, and private residential projects exceeding 25 residential units.(1) Except as provided in subdivision (c), no person engaged in the business or acting in the capacity of a contractor may recover in law or equity in an action in a court of this state for the collection of compensation for any period of time during the performance of an act or contract when the person was unlicensed but was required to be licensed by this chapter. A court of competent jurisdiction or arbitrator shall prohibit the collection of compensation for the period of time that the person was unlicensed. If the persons license was suspended only because they failed to renew their license on time, failed to pay a license renewal fee on time, or for another administrative purpose, the amount that the person is ineligible to recover shall not exceed the amount of actual damages or ten thousand dollars ($10,000) per day, whichever is greater.(2) A security interest taken to secure payment for the performance of any act or contract for which a license is required by this chapter is unenforceable during any period of time when the person performing the act or contract is not licensed.(3) If licensure or proper licensure is controverted, then proof of licensure pursuant to this section shall be made by production of a verified certificate of licensure from the board that establishes that the individual or entity bringing the action was duly licensed in the proper classification of contractors during the performance of any act or contract covered by the action. Nothing in this paragraph shall require any person or entity controverting licensure or proper licensure to produce a verified certificate. When licensure or proper licensure is controverted, the burden of proof to establish licensure or proper licensure shall be on the licensee. (e)(c) The judicial doctrine of substantial compliance shall not apply under this section where the person who engaged in the business or acted in the capacity of a contractor has never been a duly licensed contractor in this state. However, notwithstanding subdivision (b) of Section 143, the court may determine that there has been substantial compliance with licensure requirements under this section if it is shown at an evidentiary hearing that the person who engaged in the business or acted in the capacity of a contractor (1) had been duly licensed as a contractor in this state prior to the performance of the act or contract, (2) acted reasonably and in good faith to maintain proper licensure, and (3) acted promptly and in good faith to remedy the failure to comply with the licensure requirements upon learning of the failure.(f)(d) The exceptions to the prohibition against the application of the judicial doctrine of substantial compliance found in subdivision (e) (c) shall apply to all contracts entered into on or after January 1, 1992, and to all actions or arbitrations arising therefrom, except that the amendments to subdivisions (e) and (f) enacted during the 1994 portion of the 199394 Regular Session of the Legislature shall not apply to either of the following: 1995.(1)Any legal action or arbitration commenced prior to January 1, 1995, regardless of the date on which the parties entered into the contract.(2)Any legal action or arbitration commenced on or after January 1, 1995, if the legal action or arbitration was commenced prior to January 1, 1995, and was subsequently dismissed.
7031. (a) Except This subdivision applies to private construction work for residential real property of 25 units or less.
(1) Except as provided in subdivision (e), (c), no person engaged in the business or acting in the capacity of a contractor, may bring or maintain any action, or recover in law or equity in any action, in any court of this state for the collection of compensation for the performance of any act or contract where a license is required by this chapter without alleging that they were a duly licensed contractor at all times during the performance of that act or contract regardless of the merits of the cause of action brought by the person, except that this person. This prohibition shall not apply to contractors who are each individually licensed under this chapter but who fail to comply with Section 7029.
(b)
(2) Except as provided in subdivision (e), (c), a person who utilizes the services of an unlicensed contractor may bring an action in any court of competent jurisdiction in this state to recover all compensation paid to the unlicensed contractor for performance of any act or contract.
(c)
(3) A security interest taken to secure any payment for the performance of any act or contract for which a license is required by this chapter is unenforceable if the person performing the act or contract was not a duly licensed contractor at all times during the performance of the act or contract.
(d)
(4) If licensure or proper licensure is controverted, then proof of licensure pursuant to this section shall be made by production of a verified certificate of licensure from the Contractors State License Board which board that establishes that the individual or entity bringing the action was duly licensed in the proper classification of contractors at all times during the performance of any act or contract covered by the action. Nothing in this subdivision paragraph shall require any person or entity controverting licensure or proper licensure to produce a verified certificate. When licensure or proper licensure is controverted, the burden of proof to establish licensure or proper licensure shall be on the licensee.
(b) This subdivision applies to all construction work not specified in subdivision (a), including public works construction, commercial projects, and private residential projects exceeding 25 residential units.
(1) Except as provided in subdivision (c), no person engaged in the business or acting in the capacity of a contractor may recover in law or equity in an action in a court of this state for the collection of compensation for any period of time during the performance of an act or contract when the person was unlicensed but was required to be licensed by this chapter. A court of competent jurisdiction or arbitrator shall prohibit the collection of compensation for the period of time that the person was unlicensed. If the persons license was suspended only because they failed to renew their license on time, failed to pay a license renewal fee on time, or for another administrative purpose, the amount that the person is ineligible to recover shall not exceed the amount of actual damages or ten thousand dollars ($10,000) per day, whichever is greater.
(2) A security interest taken to secure payment for the performance of any act or contract for which a license is required by this chapter is unenforceable during any period of time when the person performing the act or contract is not licensed.
(3) If licensure or proper licensure is controverted, then proof of licensure pursuant to this section shall be made by production of a verified certificate of licensure from the board that establishes that the individual or entity bringing the action was duly licensed in the proper classification of contractors during the performance of any act or contract covered by the action. Nothing in this paragraph shall require any person or entity controverting licensure or proper licensure to produce a verified certificate. When licensure or proper licensure is controverted, the burden of proof to establish licensure or proper licensure shall be on the licensee.
(e)
(c) The judicial doctrine of substantial compliance shall not apply under this section where the person who engaged in the business or acted in the capacity of a contractor has never been a duly licensed contractor in this state. However, notwithstanding subdivision (b) of Section 143, the court may determine that there has been substantial compliance with licensure requirements under this section if it is shown at an evidentiary hearing that the person who engaged in the business or acted in the capacity of a contractor (1) had been duly licensed as a contractor in this state prior to the performance of the act or contract, (2) acted reasonably and in good faith to maintain proper licensure, and (3) acted promptly and in good faith to remedy the failure to comply with the licensure requirements upon learning of the failure.
(f)
(d) The exceptions to the prohibition against the application of the judicial doctrine of substantial compliance found in subdivision (e) (c) shall apply to all contracts entered into on or after January 1, 1992, and to all actions or arbitrations arising therefrom, except that the amendments to subdivisions (e) and (f) enacted during the 1994 portion of the 199394 Regular Session of the Legislature shall not apply to either of the following: 1995.
(1)Any legal action or arbitration commenced prior to January 1, 1995, regardless of the date on which the parties entered into the contract.
(2)Any legal action or arbitration commenced on or after January 1, 1995, if the legal action or arbitration was commenced prior to January 1, 1995, and was subsequently dismissed.
It is the intent of the Legislature to enact subsequent legislation relating to secondary education.