California SB342 amends the Business and Professions Code to restrict unlicensed contractors from collecting compensation for work performed.

California SB342 amends Section 7031 of the Business and Professions Code to prohibit unlicensed contractors from bringing or maintaining actions to collect compensation for work performed. The bill also makes security interests taken to secure payments for unlicensed work unenforceable. Exceptions apply to public works of improvement, commercial and institutional construction projects, and multifamily residential projects where tenants or residents are not parties to the contract.

California SB342 amends the Business and Professions Code to restrict unlicensed contractors from collecting compensation for work performed.

California SB342 amends Section 7031 of the Business and Professions Code to prohibit unlicensed contractors from bringing or maintaining actions to collect compensation for work performed. The bill also makes security interests taken to secure payments for unlicensed work unenforceable. Exceptions apply to public works of improvement, commercial and institutional construction projects, and multifamily residential projects where tenants or residents are not parties to the contract.