AB 1920 Summary

• Allows unlicensed contractors to sue for compensation if they were previously licensed and the Contractors' State License Board retroactively reinstates their license from work start to completion date.

• Permits licensed contractors performing work outside their license classification to recover compensation for the properly licensed portion if unlicensed work does not exceed 20% of contract price.

• Prohibits clients from recovering payments to contractors who meet the retroactive reinstatement requirements, and limits recovery to unlicensed work value if it does not exceed 20% of contract price.

• Authorizes courts to find substantial compliance with licensing requirements if contractor was previously licensed and license loss did not result from disciplinary action, considering mitigating factors such as good faith efforts to maintain licensure and preventing unjust enrichment.

• Clarifies that provisions only affect contract dispute actions and do not limit administrative, civil, or criminal enforcement actions by the Contractors' State License Board or law enforcement.